Category Archives: Gold & Silver

The Secret World of Gold

Great documentary going through gold’s influence on world economies and in wartime.

The war games continue today. What’s happened to the gold reserves in Greece, Libya, Ukraine and other countries going through crisis in recent years… ? Follow the gold.

Must Watch: Michael Maloney’s Hidden Secrets of Money

Compulsary viewing for anyone interested in where the global debt crisis is likely to head next and why researching more about gold and silver is vitally important. This is what your financial advisor and Superannuation Fund managers probably don’t want you to know about…

Highly recommend checking Mike’s best selling book on gold and silver and subscribing to his Youtube channel. The first 4 episodes of Hidden Secrets of Money have been released.

~ Scott

The new frontier – extracting gold and silver from the sea floor

We often hear of gold and silver being mined from open pits and underground mines… but more recently there has been some bold entrepreneurs that are going to extra lengths to get gold and silver form the sea floor.

Here’s a few cool TV series on mining/exploring for gold and silver… if you can get hands on a copy.

Silver Rush

A three-part series narrated by Mike Rowe, tells the story of one of the greatest deep-sea treasure quests of all time. The series will take viewers on board Odyssey’s flagship, the Odyssey Explorer, as it launches its most audacious operation ever — locate and excavate three shipwrecks worth as much as a billion dollars all in one season. But will they be able to complete the entire recovery effort in just 90 days before punishing storms roll in?


silver bullion brought up from one of the shipwrecks (4kms under the surface):
Silver Rush

For more info visit Odyssey Marine Exploration

Bering Sea Gold

In Nome, Alaska, the gold rush is on. Meet the dredgers, driven by gold fever and sometimes desperate need, who pilot their ragtag dredges and dive with hoses to suck up gold from the bottom of the frigid, unpredictable Bering Sea.

Bering Sea Gold (Under the Ice)

The summer season over, 3 teams of miners dive under the ice to dredge gold on the floor of the Bering Sea. Two dredge teams struggle to winterize their operations, train their crews, and get the gold. But one new, scrappy crew of friends hits pay dirt.

more on these vids at: GMC

In the not too distant future, mining gold and silver from the seafloor with heavy machinery? It’s not far away..

Nautilus Minerals

is the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits. Nautilus was granted the first mining lease for such deposits at the prospect known as Solwara 1, in the territorial waters of Papua New Guinea, where it is aiming to produce copper, gold and silver.

Nautilus Minerals
For more info visit Nautilus Minerals

As Ron Paul puts it… If you had two ships sink to the bottom of the Ocean A) one with gold and silver on it B) the other with US dollars. Which would the diver go back for? One is real money with intrinsic value, the other can be printed in unlimited quantities.

Cheers
Scott

GoldMarketsCentral.com

gmc_banner

A new site has been launched called www.goldmarketscentral.com.

It’s a new online investment/sharemarket forum. The forum is FREE to register and use.

“GMC” is focused primarily on gold and silver investing, and seeks to connect interested investors from across the world.

The forum is divided into a few parts such as:
• Stock discussion (ASX, TSX, NYSE etc) – over 350 ASX share threads & over 250 international gold company threads
• ways to invest in precious metals;
• latest precious metals news;
• investor education;
• cool stats such as bubble comparison charts etc.

The forum uses the latest vBulletin version and has many community interactions apps added:

• Thumbs up – thank other members if you like their post;
• vB Experience – achievement rewards based on forum activity and interaction
• Invite friends (and receive referral prizes (*see below))
• Featured posts can be sticked to front CMS page, so members can find informative posts quickly
• Member blogs + more

There are over 600 individual gold stocks already listed to get discussion rolling.

If you have a genuine interest in investing in gold/silver stocks, investing in bullion, checking cool stats out, finding the latest news in precious metals trends, then Gold Markets Central .com is the place to be.

(click on images to expand)
world_gold_production_bubbles_scott_reeve
NCM_bubble_charttop12_scottreeve.com_2011_gold_database

RBA admits our 80 tonnes of gold isn’t stored in Australia

Australia has one of the most respected bullion mints in the world in Perth, secure vaults in many of our cities, yet leaves our gold in London (if it hasn’t been lent out already!, does it exist?)

I came across this correspondance on Casey Reserach:

Dear Brian,

Thank you for your email. The Reserve Bank has confirmed the following:

As at end-June 2011 the Reserve Bank of Australia held 80 tonnes of gold in London Good Delivery bars. The Reserve Bank holds 99.9 per cent of its gold reserves in the United Kingdom at the Bank of England. The remaining 0.1 per cent is held at the Reserve Bank’s Head Office in Sydney.

London is a major global gold trading market and the Bank of England provides a secure and cost-effective storage location for central banks and market participants. The Reserve Bank has processes in place to ensure that the gold reserves are maintained appropriately. It is not considered necessary from management, security or operational perspectives to relocate the gold bars to a facility in Australia.

The Reserve Bank has reviewed its approach to releasing details about its management of the physical reserves of gold and decided to release the above information.

Regards,

Manager | Media & Public Relations Office RESERVE BANK OF AUSTRALIA | 65 Martin Place, Sydney NSW 2000

James Turk’s Outlook for Gold for 2013 to 2015

A good, well explained video by James Turk on the gold market and gold’s role in preserving purchasing power.

James Turk’s Outlook for Gold for 2013 to 2015

In this latest video James provides an update to a longstanding forecast that he made back in 2003 in Barron’s. This interview was widely talked about because whilst the gold price was USD350 at the time, James stated that he envisioned the gold price to be around USD8,000 sometime between 2013-2015.

Now 9 years later, James looks back on this forecast and explains how this original price target was determined. As this timeframe is approaching, James goes on to update this forecast considering the current economic climate.

James argues that the reasons laid out in 2003, that would impact negatively the purchasing power of the dollar, thereby positively impacting the price of gold, are in fact worse than anticipated.

Gold’s 2012 Performance vs 158 Currencies

[B]Gold’s 2012 Performance vs 158 Currencies[/B]

==========================
Who are we?

I come in different names, shapes and colours.

People use me as a medium of exchange.

Each year I seem to buy less and less things.

You may recognise some of my names: dollar, pounds, kroner, peso, yen, euro.

Last year for the 12th consecutive year, nearly all of us lost purchasing power to a former acquaintance, gold.

We are:

Fiat currencies
==========================

– All but a few of the 158 currencies listed below lost value to gold in 2012



It is clear from these numbers that governments worldwide continue to use inflation (money expansion) as a means to destroy your every day purchasing power.

“Inflation and credit expansion, the preferred methods of present day government openhandedness, do not add anything to the amount of resources available. They make some people more prosperous, but only to the extent that they make others poorer.” – Ludwig von Mises –

Cheers
Scott

Good Bubbles Video

Bubbles have always interested me. I wrote about measuring them in fiat currency terms vs tangible terms back in [URL=”http://scottreeve.blogspot.com.au/2009/02/market-bubbles.html”]2009[/URL].

This recent video though is a good watch:

Gold price indicates possible trend change

While these charts indicate that the gold PRICE direction may be changing in several currencies… the price weakness does not show the physical bullion DEMAND picture which has been gathering considerable momentum in recent years. Central banks, individuals, and other entities continue to buy gold and silver regardless of whether the price is rising or falling.

Sanctions dodge: India to pay gold for Iran oil, China may follow

Very significant news on the monetary front…

Sanctions dodge: India to pay gold for Iran oil, China may follow

India has reportedly agreed to pay Tehran in gold for the oil it buys, in a move aimed at protecting Delhi from US-sanctions targeting countries who trade with Iran. China, another buyer of Iranian oil, may follow Delhi’s lead.

The report, by the Israeli-based news website DEBKAfile, states that Iran and India are negotiating backup alternatives with China and Russia, should the US and EU find a way to block the gold payment mechanism.

Delhi’s move is seen as surprising, as earlier India and Iran said they would switch to yen and rupees. China, another major importer of Iranian oil, may follow Delhi’s lead, the report adds.

India and China need to switch from the dollar in bilateral trade, since the US and EU have issued unilateral sanctions against the Iranian oil industry and financial institutions. The sanctions would ban any bank involved in oil trade with Iran from dealing with American and European counterparts.

Both India and China, two major buyers of Iranian oil accounting for 22 and 13 percent of its total export respectively, have refused to join such sanctions. This means they have to establish a reliable way of paying for crude, independently of the parts of the global financial system controlled by New York and London.

Delhi’s current plan is to effect payments through two state-owned banks, India’s UCO Bank and Turkey’s Halk Bankasi, Turkey being another country refusing to join the sanction spree.

Reasons why this is significant:

1. Countries are now openly fleeing from conducting world trade in US dollars (see this timeline posted previously)

2. Momentum is building in the gold market with central banks accumulating a net 430 tonnes of gold purchases in 2011.

3. The precendant is being set, for countries to once again use a gold for international transactions. Other countries, which are reaccumulating gold holdings may quickly follow. Gold’s value drastically increases in purchasing power when it becomes re-monetized.

4. The geopolitical antagonism of the US to stage a conflict with Iran is backfiring. China and India want oil to fuel their expanding economies.

Cheers
Scott

Gold’s 2011 performance vs 75 currencies

gold_bars_image

The Race to Debase 2011

==========================
Who are we?

I come in different names, shapes and colours.

People use me as a medium of exchange.

Each year I seem to buy less and less things.

You may recognise some of my names: dollar, pounds, kroner, peso, yen, euro.

Last year for the 11th consecutive year, we all lost purchasing power to a former acquaintance, gold.

We are:

Fiat currencies
==========================

– The 75 currencies listed all lost value to gold in 2011, just as they did in 2010 (click below to enlarge):


Gold in US Dollars (reserve currency) up 10.00%
Gold in Euros up 13.60%
Gold in Australia Dollars up 10.20%

In other words if you had invested US$10,000 in gold one year ago you could buy 7.0 ounces. A year later you can buy 6.4 ounces. In July 1999, US$10,000 could buy 39.5 ounces of gold.

While the evening news will talk about gold prices, its clear that when you measure gold against other goods, whether it be the sharemarket, real estate or cars – gold continues to increase its purchasing power, year in year out. Physical gold continues to easily outpace yearly compulsory Superannuation returns and interest paid for cash in the bank. Who would turn down a 10% annual gain?

Again, it is clear from these numbers that governments worldwide continue to use inflation (money expansion) as a means to destroy your every day purchasing power.

It’s time to question the role of central banking and the debt-based, global, monetary system… or we can just accept the same ol’ Government spin – “trust us we will look after you”.

Cheers
Scott

Russian Central Bank Aims To Buy 100 Tons Of Gold In 2011

Not since the fiat US dollar reserve system was implemented in 1971 has central banks worldwide become net buyers of gold. The gold rush in the 1970s (peaking in 1982) was a period driven by Western world investors. 2010-2011 marks a very significant change in gold market dynamics. We now have central banks as net buyers of gold, plus billions of potential new investors in China and India participating in this gold boom. Then there is the issue of global debt implosion, with central banks and Governments willing to monetise the debt through inflation (printing press).

Russian Central Bank Aims To Buy 100 Tons Of Gold In 2011

MOSCOW -(Dow Jones)- The Central Bank of Russia has purchased 90 metric tons of gold to date in 2011 and is on course to buy 100 tons before the end of the year, deputy head of the bank Sergey Shevtsov said as quoted by the bank’s press service.

The bank said earlier it would aim at buying 100 tons of gold every year and increase the proportion of gold in the country’s reserves as a safeguard against volatility on the international financial markets.

To put that into perspective, Australia’s largest listed gold producer, Newcrest Mining (also the world’s 4th largest producer) produced 83 tonnes of gold in FY2011. Clearly there is some major buyer momentum building in the gold market now!

Central Banks now net buyers of gold

Russian Central Bank gold reserves since 1993

and…

Emerging markets lead biggest central bank gold rush in 40 years

Central banks made their largest purchases of gold in four decades in the third quarter after a sharp drop in prices in September spurred buying to diversify reserves.

The scale of the purchases, at 148.4 tonnes on a net basis, was far bigger than previously disclosed and puts central banks on track to buy more gold than at any time since the collapse of the Bretton Woods system 40 years ago, when the value of the dollar was last linked to gold.

Analysts said the buying, led by emerging market central banks intent on diversifying their foreign exchange reserves, helped explain the rebound in gold’s price from a low of $1,534 a troy ounce in September. “Central bank buying tends to follow a different heartbeat than pure investment purchases of gold,” said Marcus Grubb, head of investment at the World Gold Council. “It’s often based on targets set earlier in the year on gold as a proportion of foreign exchange reserves.”

The WGC, which published the data, declined to identify the banks behind the buying, saying only that “a slew of new entrants emerged wishing to bolster gold holdings”.

Countries that have disclosed purchases include Thailand, Russia and Bolivia.

Central banks are one of the most important drivers of the gold market. They became net buyers of gold last year after two decades of heavy selling – a reversal that has helped propel the price of bullion to a high of $1,920.30 a troy ounce, up 600 per cent in a decade. The last time central banks were net buyers of gold was in 1988.

Mr Grubb said most of the buying was after prices fell sharply to $1,534. He predicted that central bank gold buying for the full year could reach 450 tonnes, implying purchases of a further 90 tonnes in the fourth quarter.