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The Dollar Bubble

MUST SEE
The Dollar Bubble

http://www.youtube.com/watch?v=eZA0qNsf4m0

 



Barrick Confirms We Reached Peak Gold

Barrick Confirms We Reached Peak Gold
Global gold production is in terminal decline despite record prices and Herculean efforts by mining companies to discover fresh sources of ore in remote spots, according to the world’s top producer Barrick Gold.

London Telegraph
November 11, 2009

Aaron Regent, president of the Canadian gold giant, said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run.

“There is a strong case to be made that we are already at ‘peak gold’,” he told The Daily Telegraph at the RBC’s annual gold conference in London.

“Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore,” he said.

The supply crunch has helped push gold to an all-time high, reaching $1,118 an ounce at one stage yesterday. The key driver over recent days has been the move by India’s central bank to soak up half of the gold being sold by the International Monetary Fund. It is the latest sign that the rising powers of Asia and the commodity bloc are growing wary of Western paper money and debt.

China has quietly doubled holdings to 1,054 tonnes and is thought to be adding gradually on price dips, creating a market floor. Gold remains a tiny fraction of its $2.3 trillion in foreign reserves.

Gold exchange-traded funds (ETFs) – dubbed the “People’s Central Bank” – have accumulated 1,778 tonnes, making them the fifth biggest holder after the US, Germany, France, and Italy.

Read Full Article Here

India buys 200 tons of gold from IMF

Schiff: Gold could reach $5,000 before dollar death

Rich Dad Poor Dad: Silver Best Hedge Against Inflation

 



Schiff: Gold could reach $5,000 before dollar death

GOLD UPDATE – (11/11/2009)
As the market opened today Gold hit an all-time high of $1,117.80-$1,115 per troy ounce, that is nearly a $10 dollar difference from just a few days ago.

The steep rise in gold has many factors but mainly because China, India and Russia are moving towards gold and silver as a storage of wealth, and also the other factor of course is the dollar is in the dumps. Is this a sign of hyper-inflation at our doorstep?

Schiff: Gold could reach $5,000 before dollar death

http://www.youtube.com/watch?v=b62kR8t7Axs

 

What silver and gold should you buy?

http://www.youtube.com/watch?v=fFyFvPSiqgk

http://www.youtube.com/watch?v=D6jsZibXfbw

 



Sam Donaldson: End The Fed Before They Do Further Damage

Sam Donaldson: End The Fed Before They Do Further Damage

http://www.youtube.com/watch?v=n21OTy-Klk0

 



Robert Kiyosaki: Silver Best Hedge Against Inflation

Robert Kiyosaki: Silver Best Hedge Against Inflation

http://www.youtube.com/watch?v=s7fb8jWImGM

Robert Kiyosaki is a motivational speaker, businessman, investor and author of the Rich Dad, Poor Dad series. In the following interview with Newsmax.tv Kiyosaki explains the reasons why Americans should be investing in silver.

Kiyosaki says silver is the best hedge against inflation and that in many ways the precious metal is a better investment than gold. He is a very strong buyer of silver and has been investing heavily in for over 10 years.

Why Silver Cannot Lose

Robert Kiyosaki
August 20, 2007

I believe the biggest opportunity today is in silver. I think this precious metal is about to become the most spectacular investment in recent history — bigger than oil, even bigger than Google.

Let me give you some reasons why:

Silver is a consumable industrial commodity.

It’s used in computers, cells phones, and electrical relays. This means that as countries like China, India, and Vietnam, and regions like Eastern Europe, become more modernized, the demand for silver will increase.

Silver is also applied in medicine. One little-known use is as a bactericide, a role silver has filled throughout history. Today, medical devices such as catheters and stethoscopes use silver, and every hospital in the western world uses silver sulfadiazine to prevent infections.

Silver is scarcer than gold.

Gold is hoarded. It’s estimated that 95 percent of all gold ever mined is still around. The exact opposite is true of silver: An estimated 95 percent of all silver ever mined has been consumed.

Forty-five percent of all silver mined is burned up in industrial uses. Jewelry accounts for 28 percent, and 20 percent has been consumed in photography. Only 5 percent is in coins.

Silver supplies are down.

In 1900, it was estimated that the world had 12 billion ounces of silver. By 1990 it had dropped to 2.2 billion ounces. By 2007, the supply was down to 300 million ounces.

Some of the more pessimistic forecasts estimate that the world will be out of silver in about 10 years. This could be catastrophic to the world economy. In 10 years, silver might have as much of an impact on the world economy as $200-a-barrel oil.

Jim Rogers: I would buy silver over gold right now

 



Physical Gold Remains Over +1,000 an Ounce

Physical Gold Remains Over +1,000 an Ounce
Gold buffalo 1oz coins are trading between 300 to 400 over spot price on ebay.

Market Oracle
October 24, 2008

It appears that there is a common refrain going around the investment community. It goes something like this:

“Gold should be doing better, and, since it isn’t, I am not going to buy it”

Investors who believe this are making the mistake of thinking COMEX gold is the same as real physical gold. It is not.

COMEX gold is a form of debt. It involves one party promising to produce gold (money) to another at a future date. Like all forms of debt, a COMEX futures contract is only as good as the counterparty behind the contract. Right now, because of low margin requirements, sellers of gold futures only have enough gold to cover 10% of outstanding contracts stored in COMEX warehouses. Considering that the biggest sellers of gold futures contract are insolvent financial institutions, it is obvious that COMEX gold has enormous counterparty risks . If even a quarter of outstanding contracts asked for physical delivery, it would be enough to guarantee a default. Since a financial collapse would actually creates the risk total default (insolvent banks can’t produce the gold or cash), COMEX gold fails miserably as a safe haven . This is why COMEX gold prices are falling, while physical gold is disappearing from the market place

Because of scarcity, physical gold is selling at an enormous premium to gold spot price (which is set by COMEX). How big a premium? Well, on eBay 2008 gold buffalo are trading between 300 to 400 over spot price. That is a 50% premium. The enormous premiums being paid in the physical market means that a large number of December gold contract holders are likely to request delivery. A volume, whether it causes defaults or not, is likely to change the marketplace perception of gold and cause a rush of into a physical gold plagued by shortages. Gold will skyrocket over 2000 in a matter of days.

I am not the only person who believes COMEX gold futures are on the verge of collapse. I urge you to watch this video (skip to 11 minute mark) and read the extract below to see what others are saying about paper gold:

http://www.youtube.com/watch?v=1e9y7ci80D0

Why Gold Is Down When It Should Be Up
http://noworldsystem.com/2008/10/26..-is-down-when-it-should-be-up/

Demand For Gold Soars
http://www.telegraph.co.uk/financ..-gold-soars-has-price-tumbles.html

Fitch says gold price will hold up reasonably well over 12-18 months
http://www.mineweb.net/mineweb/vie..=Detail

 



Why Gold Is Down When It Should Be Up

Why Gold Is Down When It Should Be Up

Alex_Wallenwein
The Market Oracle
October 13, 2008

Why is gold dropping right now when anyone in their sane mind would expect it to rise? The simple answer to this question is, “because Comex-gold isn’t gold” – and because it deceptively pretends to be ‘the’ price-setter for real gold.

Gold is gold, paper is paper, and “Comex gold” is nothing but paper masquerading as gold while simultaneously pretending to be the price-setting medium for actual gold in the world. Now, finally, Comex-gold is in the process of being unmasked.

The real supply and demand determinants for Comex gold are not actual gold investors but fund managers . Fund managers are inextricably intertwined with the world of contract-based credit instruments. They use bet on Comex gold contracts to hedge their other (currently horrendously losing) bets with something they all, in their in-bred belief in paper markets, believe will ‘go up’ in value while everything else is going down.

However, these very same fund managers and their paper-bound investment psychology are the exclusive reason why Comex gold is dropping in these times when everyone (including fund managers) expects gold to rise. As already stated, though, and as they now finally realize to their own dismay, Comex-gold just isn’t gold – and that causes even further selling.
Two Losing Bets, Compounded

Fund managers’ other bets are losing money fast, now, so they need to raise cash to keep up the overall value of their respective funds, so they can earn their management bonuses and avoid getting booted for lack of relative performance. Guess what they cash in on? The very same Comex paper-gold they mistakenly bought as a ‘hedge’, of course.

Meanwhile, real investors in real gold are enjoying their shopping spree – except that the spree turned into a treasure hunt as the shelves and display cases of gold dealers look more and more like the supermarket shelves in the old Soviet Union – bare.

This is the only ‘bare-market’ in real gold the world will see for a long, long time to come.

With this split, this disconnect, between Comex illusion and gold reality, one thing or the other will have to give, and it won’t be physical gold that gives.

The system built up around the reputation of Comex-gold as being a price-setting mechanism for real gold plays right into the hands of the financial establishment. The establishment depends for its (now increasingly meager) existence on the illusion that gold “isn’t living up to its promise” as a real inflation and disaster hedge. The implication, of course, is that investors might as well stay in the computer blip and paper world.

As the Comex gold price illusion drops, many retail investors are still persuaded to keep their money circulating in the paper world, and that ultimately feeds the system. Of course, by now that ‘feeding’ mechanism looks more like life-support, but try and unhook someone who is on life-support. The results are dramatic, inevitable, immediate – and final.

Yet, even on life-support, the system is deteriorating at a catastrophic pace. It would be hilarious to watch if it wasn’t for the fact that we are all depending on this phony system for our real-life support. Without credit freely circulating through the commercial paper universe, for example, grocery stores won’t have food on their shelves, there won’t be gas a the gas station, and your bank will be shut. Cash doesn’t transfer very well without the bank settlement process.

That’s the problem.

Read Full Article Here

 

COMEX Gold Drops $681 on October 24, 2008