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Gold is UP with a 37% gain this year, reaching a peak of $725 on May 12, On November 1st gold jumped to a new
seven-week high of $616 an ounce. What.
.....is really happening and that is is the devaluation of the dollar, continues. Russians and the Chinese, among others, are divesting dollars, The average price of gold has not changed significantly in terms of the pound or the euro for the past 2 years. One is able to price gold in terms of the euro, or the pound, and then price the dollar against gold to see the dollar devaluation against all three. So the dollar, this month, slid to one-month lows against the euro and yen. The U.S. economy is slowing at a faster pace than markets had been expecting. Starting to wake up from a generation-long slumber. Many traders and analysts are looking for gold to push towards price levels unseen in just under 13 years. But Currently The fundamentals have not changed, Only trader sentiments. Nervous investors eyeing the weaker dollar and the deteriorating state of the U.S. economy. Gold has risen or fallen with oil prices and worries about rising price pressures. But gold's relationship with oil has recently weakened. The stronger driver for the gold price is the strength of the dollar. the dollar is likely to fall further over coming months. The weak dollar and low interest rates would encourage gold buying, as would the upsurge in interest in commodities from funds and private investors. The recent improvement in the Dollar is merely a correction. One must look at a bigger and longer range scenario than the one being concocted by the United States Federal Reserve Board Chairman. I must inform you! Gold peaked at around $425 an ounce in early 1990 and has not visited levels above there in some 16 years. The next technical target beyond $620 is the September high of $640.25. The dollar is actually following golds direction. Gold demand in India and China, is far greater than what is reported, they know what is in store for the price of gold. Tragically, President Bush's administration does not appear willing to initiate the arduous structural changes that our economy must undertake if we are to adapt and accommodate the euro as the second World reserve currency. This administration has not communicated to the People the urgent need for energy reform. Instead, they intend to enforce global dollar monopoly for oil transactions via the application of superior U.S. military force. STUPID POWER not super power. To the illogical tune of BANKRUPTCY, and socialist / communist policies aimed at the war on Fathers and Fatherless Children Families Neoconservative Geostrategy is based upon the idea of a US "Global Empire" the history of Empires is quite unambiguous. They always end with military overextension and subsequent economic decline. Precious metal stocks, made impressive gains. Gold stocks have held up because the current price is very profitable and producers have begun to lock in that price by selling forward. Ultimately, gold stocks will follow bullion prices. Do Your Homework, and clean up! Only invest in them to the level of being completely comfortable with a 50% or even 90% loss. They will soon be back 
Look Again, Look Now, Below $400? $350? not until the US Fed create's money to buy even gold stocks. The gold fundamentals are a 10+ / Gold is EXPLOSIVE. One would agree that Ben S. Bernanke (sworn in 6th February 2006) or Allen Greenspan (1987-2005) or Paul A. Volcker (1979-1987) ALL current and former, US Federal Reserve Board Chairmen) HAVE NOT AND WILL NEVER utter the words that the dollar needs to fall by 20%.! Besides the $300 gold price floor was established and even a $500 gold price floor has been established now. Do I hear $700? Why, YES I do! As a matter of fact How desperate is the US Fed? ready to cut overnight lending rates to zero if the economy needs an extra jolt. 
Universal Currency Convert, NOW! The US refuses to admit failed polices and some truth and justice for the American way. If the US can change current economic policy, these changes will hurt. Getting rid of the Gold standard encouraged the dominance of one currency and greed. We have maintained all along A rising US dollar has impoverished the rest of the world and it is time is ending.That this activity is failing the fight is to keep people from understanding that these policies should no longer be condoned. Just The FACTS Ma'm: According to a note published by HSBC, the push behind the gold price, lies in the massive corporate largesse in the US over the last decade and the ripple effect of mountains of debt which threaten to swamp the dollar. With gold entrenching its position as a rival currency to the dollar, the bad news for the US currency is that the cat is out of the bag, the US economy is strongly linked to debt, The major bankruptcies or forced debt reductions have not helped at all because costs remain exceptionally high all around. It takes a large amount of company earnings. One can case study the telecommunications sector alone, It is facing a debt burden of $2 trillion. Therefore there is a phase that has yet to come in that retained profits across the market are too low to fund fixed investment or employment expansion. Operations are most difficult According to HSBC, Radical monetary meddling aside, the current macro-picture for the US economy is dire. Low cash into mutual funds by the general public spells poor local demand for equities and the situation is compounded by overall poor corporate performance, which remains unattractive for foreign investors in the US stock market. The inability of Wall Street to attract decent cash inflows will place still more pressure on the ability to finance a soaring current account deficit, which is threatening to crush the dollar. The Dow ratio, which is simply the Dow Jones Industrial Average, divided by the price of gold, simplified to around $per/oz, . This Dow gold ratio was around 30 times. At three times in the last 100 years, that ratio has been 1:1 Expect single digit territory within the next five to ten years, Gold continues to Outshines all other investements, It has beaten cash, bonds, commodities, equities. It is the world's best currency, now more than ever and because of the internet. It is drubbing the dollar, the euro, and the yen. There are many explanations for the reason the price of gold (POG) has risen. What is yours? Mine is the following Video Please Highlight copy and paste into your address bar to view: http://video.google.com/videoplay?docid=1616088001333580937 Look How Precious Metal Equities have performed this and last year! The price of gold has reached to its highest level in almost seven years. The last time gold prices and mining stocks hit a two year high level quickly was in late 1999 and early 2000 when concerns about overheated stock markets and European central bank reserves saw the metal price quickly above US$315 an ounce. Volatile days of trading is sending investors searching for protection against another slide in stocks and the economy. What has also contributed was the net decline in producer hedging. Producer hedging declined for a second consecutive year. Other important factor's continue foward and include, the swing to reinvestment among gold investors. Total world reinvestment by gold investors was 235 tonnes in 2001 compared to disinvestment of 26 tonnes in 2000 (and a positive 558 tonnes in 1999). Mine production, jewellery demand recovery, a further decline in producer hedging, the return of North American, Asian, and Islamic investors, and global and economic insecurity. Thank You for viewing this page, But how has this page been doing with its stocks picks. Half way through we do fair de well. See Below for Half Year Percentage Change they were all gains. Could Gold go down in price? The gold price has moved steadily higher. The original reason was a reduction in hedge books by major producers. The industry is currently short about 97 million ounces of gold from forward sales and option writing. This is resulting in substantial losses for more than three months. The dollar has weakened against the euro and other major currencies as a consequence of the dollar being overvalued. The US trade deficit is still exerting downward pressure on the USD. But also because of investor pessimism in the US. But most of all, the difference this time is the USD is no longer a safehaven for foreign investors. Gold is. Most central banks have excessive reserves, which they use to meet extra demand. An example being the Bank of England gold auction on 11-29-01. Selling 20 tones (643,200 ounces) of bullion at US$273.15 an ounce, slightly below the US$273.85 spot price prevailing ahead of the auction, to raise US$175.9 million. That the auction was covered only a disappointing 2.6 times. The last auction, held on September 12, 2001 sold at US$280 an ounce and was 4.3 times covered. The current engineered model is the Swiss Bank, it has contributed to the drop in the price of gold by selling their reserves in the LBMA to cover a HUGE short position in a major investment bank. Also the Bank of Canada sold 95,000 ounces of gold, which dampered a past bull rally Have Gold-mining stocks continually offered a better way? Gold stocks Historically lead gold bullion higher and rise faster in price. I have predicted since 1998 on this very page, The stock market's best performers have been gold stocks. This page is for Investors to learn about better gold-company stocks. Because, betting on a gold rally, stocks get a bigger lift when the price of gold rises. If you want to take a position in the metal itself, than gold may be a good investment and e-gold™ is a fantastic means to make this investment. or gold coin bullion with a low numismatic premium. A two fold approach, Wisdom has always held or, it has always been maintained the portfolio diversification is key strategy. 10-30% should be in non-performing precious metals. The lease rate is a charge for lending gold to producers, who sell gold to lock in prices for future production, and to investors, who sell gold to go short, hoping to make a profit if the price falls. The lease rate is normally very low because the world's central banks are manipulating the price. Gold producers and short-sellers take advantage of low lease rates. The borrowed gold is sold to hedge or to bet against gold, lending adds to downward pressure on gold prices. So a high lease rate shifts market dynamics. A higher cost stops short sellers from betting against gold. Many will buy gold to lengthen short positions and, then, push gold prices higher, which in turn also deters producers from hedging. The issue remains that any jump in lease rates attracts other lenders that push the rates back down, as mentioned below. Therefore while the price of gold rises with increases in lease rates, it has also fallen quickly as lease rates declined. Brief history of lease rate pricing As an example a big lease rate surge took place in the summer and fall of 1999, after gold hit what was then 20-year low of $253.70 an ounce. By September, the one-month lease rate was more than 4 percent at an annual rate. when, on Sept. 26, European central banks announced that they would limit their annual gold sales in the next five years to 400 tons and restrict the amount of gold that they would lend to then-current levels. As reported here, that sent the lease rate to 9.9 percent. From Sept. 20 to Oct. 6,1999 the gold price jumped almost 30 percent, to $326 an ounce. But by November, the lease rate was back below 1 percent and the price was less than $300. There has always been a continual manipulation of the gold market. The Fed's real purpose the hidden agenda is to facilitate government spending through inflation. To avoid imposing politically intolerable levels of taxation to pay for the spending that returns them to office each election, politicians rely on the Fed to confiscate wealth from the public through inflation. Inflation's a hidden tax, and lessens the cost of borrowing by enabling the government to pay its debts in depreciated currency. During times of market volatility when stock prices are plunging, the Fed is always worried that large banks may be vulnerable if investors to whom they have lent money are unable to come up with more collateral for those loans as stock prices plummet. For this system to work, implementation of its inflationary policy must be unpredictable. This is accepted wisdom on Wall Street because of forecasting and discounting. If the market can forecast what the Fed intends, then it can preempt, Fed actions. For instance if the market knows the Fed will increase the supply of money a month from now, producers then start raising prices of goods and services in anticipation of the increases in their suppliers' prices, and in consumers' incomes, that will follow growth of the money supply. The Fed, however, wants any price increases to come well after the increased supply of money. The ability of its inflationary policy to stimulate the economy depends on a lag, or what I call a float. Therefore, when the market forecasts and discounts the Fed's actions, they lose their effectiveness. When the Fed deceives the market, the Fed achieve's its desires. This is why the Fed asserts political independence from Congress and the Treasury, why it refuses to operate according to fixed rules, and why it makes its decisions in secret- because the Federal Reserve's ability to deceive depends on its power, and its power depends on its ability to deceive. At the same time, the demand for physical gold is skyrocketing around the world. If you check the pricing/market of gold on a daily basis in the commodities markets, you'll note that as each time gold begins to make a breakout, there is extremely heavy selling in the last half hour of the markets. Goldman Sacks and similar banking institutions are the sellers, desperate to keep the price down. If it skyrockets and they are forced to make good on their gold loans, they MUST repay those loans with the same physical gold they borrowed/leased in the first place. Question What will happen to gold prices then, TECHNICALLY NO ONE CARES, just like those who have not taken the time for household fire prevention and family fire drills, It will be to late. Why lease rates tend to be temporary? Two reasons emerge, one having to do with fundamentals, the other with perception. Concerns that there is too much supply in the gold market has hamstrung prices. Meanwhile, psychologically, investors just have been manipulated into other places to put their money, shying away from gold as a haven. Since the summer of 2000, when prices surged from 20-year lows caused by over–supply worries, especially the Bank of England's plan to dump a large amount of gold on the market, the metal has been boosted several times by one time events. But invariably gold has then given back most of the gains. As proven by the previously mentioned lawsuit, the gold market conspiracy, especially of price manipulation by governments and gold borrowers, explains the moribund gold price. An extreme "false top" occurred last September 2000, when 15 European government banks announced they would cap their gold sales. The metal leapt $42.25 or 15 percent, climbing to $324.50 in those next few weeks. What it's going to take to really bring up gold is time and a fundamental perception change among investors. Traders and analysts mostly shrugged off hedging cutoffs as a industry-specific phenomenon, and rather believe in the dollar's strength overseas and the Federal Reserve's recent interest-rate decreases as ample protection against inflation. The conspiracy theorists are seizing on the time of gold's plateaus as evidence of foul play in the market. Such theorists are given a bit of credence in the gold market, which is less transparent than the stock market. Any time gold is trading at a price less than 12–to–1 to the price of oil, it's a bargain,nothing is ever said about this phenomenon. Gold's very identity is undergoing a seismic shift perhaps not seen since the 1970s when the United States stopped pegging the dollar to gold and began allowing private ownership of it. The metal's value now is more affected by speculative trading, increasingly complex hedging programs, and foreign- exchange rates in the global, electronic economy. CLICK HERE FOR 1999 The Year in Review The lending of gold by central banks has increased the supply of gold to the market by encouraging forward selling as a defense against weak prices. This continues to depress prices further and encouraged investors to sell short in the belief the price would go yet lower But this is as you know only Paper Gold. A rush to fill contracts could never be fulfilled. The United States Founders asserted, in the Coinage Act of 1792, that any official of the government found guilty of debasing the currency should suffer death. Today, our currency has been depreciated by 1000 percent. The people have been robbed. With creation of the Federal Reserve System in 1913, and destruction of the constitutional monetary system based on silver and gold in the 1930s, Congress surrendered tremendous discretionary power over America's economy to a few men and women in the highest echelons of the nation's central bank:
Power that America's Founding Fathers withheld even from the
government, because they understood - and feared - its potential for abuse.
Moreover The Public is indifferent to this fleecing Ignorance based on misinformation. The Bretton Woods Accord, occurred toward the end of World War II. The United States, Great Britain and France met at the United Nations' Monetary and Financial Conference in Bretton Woods, New Hampshire to design a new economic order. This location in the U.S. was chosen because, at the time, was the only country unscathed by war. Most of the European countries were in shambles. Up until WWII, Great Britain and the British Pound had been the major currencies by which most currencies were compared. This changed when the Nazi campaign against Britain included a major counterfeiting effort against its currency. In fact, WWII vaulted the US dollar from a has been currency after the stock market crash of 1929 to the benchmark by which most currencies were compared. The Bretton Woods Accord was established to create a stable environment by which global economies could re-establish themselves. The Bretton Woods Accord established the pegging of currencies and the International Monetary Fund ("IMF") in hopes of stabilizing the global economic situation. DECEPTION PLAY: inflation is higher prices caused by full employment and a strong economy; therefore, letting the steam out of the economy and slowing growth (and thereby employment) is "good". This talk is PURE EVIL. Alan Greenspan. chairman of the Fed Res "worried about inflation", is pretending to control inflation by increasing interest rates that merely devastated the bond market, clobbered the stock market, and helped only the bankers. Thus the Insiders are perfectly protected and the scam rolls on. Do not live in the United States? Have you ever heard of the IMF? same game only bigger, better,! It is of paramount importance and critical the need to keep gold ever cheaper, so as to destroy the public's confidence in it, should result in the appearance of this gold-selling ploy. The fact that gold is a useful metal entirely apart from any monetary role might be the pin that pricks the bubble of our allegedly burgeoning economy. Prior to all atrocity I maintained that The Muslim world is most irked about this kind of monetary policy system. A Case study was the Indonesian monetary crisis of 2001, I think a result, is that as of the first of July 2003 Malaysia has declared that she will replace foreign currency reserves with gold over the next two years and take the Malaysian Ringgit out of the international fiat trading system to be the World's first fully gold backed currency once the framework is completed. Malaysia furthermore intends to renegotiate all bilaterial treaties and trade agreements to allow for the fact that future settlements will be conducted in gold. Finally, with establishment of the Bank of International Gold Settlements in Kuala Lumpur next year Malaysia strongly urges her trading partners to follow the examples. Such as, the Koran has always indicated gold and silver for true circulation and not worthless paper money as introduced by Europe. The ISLAMIC DINAR is now being privately minted and used in more than 22 countries and is currently being minted in four countries. Eventually, the list of countries where it is traded is likely to grow larger because of the some 51 Islamic Countries already members in the Islamic Development Bank like Malaysia. At this time, the western world does not believe in gold. Because it has convinced itself that man can control his own destiny. Since the atrocity, such delusional thinking has been somewhat lessened, but in time, as some Muslims anticipate, the atrocity last September will fade away to some holiday. Case study Rhode Island, Victory in Japan Day is still a holiday there and no where else. Federal citizens become convinced once more that there is nothing, including matters of money that we cannot fix. This of course has been proven as pure malarkey, especially when you consider that the depression in Asia was created by excessive international liquidity made possible by the post-Bretton Woods floating rate exchange system. The EUROs are in lock step with the US Dollar. find answers to questions along with all the information you will need about the biggest and latest monetary changeover in history, Here. When the euro was launched on January 4, 1999, it traded at a healthy 1.18 to the U.S. dollar. Some thought that the euro would replace the dollar as the world's medium of exchange and international financiers liked the notion of an dollar alternative. But the euro had steadily declined, losing more than 25 percent of its value, dropping to only 85 cents in September 2000. It has gone as low as 83 cents. On September 22, 2000 the United States Federal Reserve joined European central banks to stop further decline by buying euros. As of December 30, 2003 the euro was worth 25% more than the dollar Click to Analyze the recent performance of the European Euro vis-à-vis other currencies. Over the last quater, if gold is up US$3.50 (roughly one percent), Then a penny change can be expected in the euro/dollar and it has proven true. Other factors over time come into play, but since the first week of December '02 it is lockstep. Anyway It is not revealed how much money was poured into this intervention, but estimates are $10 billion. American Federal Citizens as well as members of the US Congress were not permitted to vote on using Federal money to stop the hemorrhaging in the euro's value, any more than U.S. Federal Citizens were permitted to have any say about any other series of costly Third World bailouts. A global or even a regional currency, controlled by unaccountable bureaucrats in a foreign country, severely diminishes democratic self government. It disfranchises voters from control not only over their currency but also over all related economic policies so that important decisions can be made outside of national elections. A major legacy of the United States, former Clinton Administration, working in tandem with the multinationals, is the ceding of bits and pieces of control over our economy to bureaucracies in Brussels, Geneva, the Hague, Mexico City and Beijing. The worst is yet to come, Under the rule of NAFTA, GATT, WTO and PNTR (Permanent Normal Trade Relations with China), American democracy is diminished. However the legacy of Bush II in both the pre and post 9/11 has been, the `America first' policies The Bush administrations, unwillingness to honor International Treaties, along with their aggressive militarisation of foreign policy has significantly damaged The US reputation abroad. Created global tensions and is now viewed as a belligerent superpower willing to apply unilateral military force without U.N. approval. Completely unreported in the US media, are significant monetary shifts in the reserve funds of foreign governments away from the dollar with movements towards the euro. Could Economic retribution of an uncontrollable and dangerous superpower take place? Despite the absence of media coverage, the plausibility of slowly abandoning the dollar standard for the euro has never been more real! |
