Showing posts tagged gold

Warning signs of a coming currency crisis

Greg Hunter of USAWatchDog, a former mainstream media correspondent for CNN, ABC, etc., gathers some disturbing trends regarding a potential currency crisis:

Gold hit an all-time high this week—again.  The yellow metal briefly topped $1,500 an ounce before falling back down a few dollars.  The world has become increasingly nervous about the size of the growing U.S. debt.  Just this week, America’s debt topped $14.3 trillion (also an all-time high) which is close to the limit Congress can legally borrow. A recent report shows why the $38 billion, that was just cut, is a drop in the budgetary bucket. 

The report said,“Friday’s $34.54-billion jump in the national debt almost equaled the $38.5 billion the Republican House leadership said would be cut from spending for the remainder of this fiscal year by the continuing resolution that the Congress passed on Thursday and President Obama signed Friday.  The federal government is now perilously close to hitting its legal limit on debt.”  

Odds are the debt ceiling will be raised by more than $1 trillion.  Meanwhile, the Fed is printing more than $75 billion a month to finance 70% of the U.S. budget.  The math of this screams currency crisis 2011!

The warning signs over the past few weeks are monumental. The world’s largest bond fund, PIMCO, recently sold ALL of its U.S. Treasury bills.

Read the full story.  Very informative. 


Gold Replacing Dollar as World’s Reserve Currency?

$105 per barrel oil. Cotton prices at record levels. Food prices at 2008 highs. Typically, such commodity price increases would send central banks running to the U.S. Dollar to secure the value of their savings. After all, the dollar has been the reserve currency since World War I.

But not this time. 

Central banks are shedding dollars, reducing their holdings by about $9 billion in previous quarter, according to Nomura Securities’ Jens Nordvig, global head of G10 FX Strategy.

What are they buying instead? Gold 

The yellow metal hit a fresh record high this morning, while the dollar index dropped to a 15-month low. The news had Fast Money’s Brian Kelly looking to add more gold and silver longs to his portfolio Thursday morning.

“What is working is gold, silver  and oil ” said Kanundrum Capital’s Kelly. “I wish I had more.”

Gold and silver have become the inflation hedges of choice for some investors. Gold hit an intra day high today of $1,448 per ounce. Silver is trading at 31-year highs, hitting an intra day high of $38 per ounce.



Utah House passes bill to recognize market value of gold & silver tender

I’m not a gold & silver hoarder, but a LOT of survivalist types are. I don’t think precious metals (PM) are the answer, but they should be a part of your portfolio if you’re into the market.

Here’s the deal, simply put, the silver and gold in your coins are worth more than the face value of the coin. But, the PM’s are only valued relative to the amount of dollars they can be traded for. If the dollar isn’t worth much, that means you still get less for your PM.

Some survivalists keep large supplies of gold and silver because they believe that when the dollar collapses, or if the Shit Ever Really Does Hit The Fan, PM’s will be the only thing you can use as money (besides food, water, and bullets).

You’ll have to figure out where you stand on all this on your own, but Utah is obviously working from this same mindset with their new bill. They even mention “preparedness”. :D

It may not fold as conveniently as dollar bills, but the Utah House took a first step Friday to recognize gold and silver as legal tender.

It voted 47-26 to pass HB317 by Rep. Brad Galvez, R-West Haven, and sent it to the Senate. The measure would recognize as legal tender gold and silver coins issued by the federal government — not just their face value, but also their value in gold and silver or to a collector.

It also would order the state to study whether Utah should establish an alternative form of legal tender, such as one backed by silver and gold.

“This is a step in preparedness, a step in security,” Galvez said, “that allows us to be able to help hold up our economy as the dollar continues to shrink.”