Archive for February, 2010
It's been about eight days since we did a video on gold, and given the market action today I thought I would look at what is causing the downward pressure in this market.
For more trading ideas visit: http://tinyurl.com/VIDNET
If you did not watch my last video on gold, I strongly recommend you click here to watch the video titled "Five Reasons Why Gold Will Not Make a New High This Time" as it will give you a bigger picture of how we see this market playing out in the next 12 months.
In today's short video we look at an indicator that we have not talked about before in any of our videos. The indicator, which is an overlay on top of the chart, is called the Donchian Channel Indicator.
Richard Donchian, who has since passed away, came up with this indicator in the late '40s. The reason why I like this indicator is the fact that it has successfully stood the test of time. I think you'll really enjoy seeing how it can help you make money in the gold market.
Also in this video, I point out one very …
Duration : 4 min 30 sec
Gold is the premier monetary and chaos hedging asset of the world. During times of geopolitical tension, times of war, financial turmoil and global uncertainty it has a direct response. In the future gold will go much higher because globally and within the US there is too much spending, the Federal Reserve and the banks are printing too much money. Rising global inflation, a weak US Dollar, international tension like whats going on in the Middle East and India’s and China’s explosive economies are other factors that have a direct effect.
If you watch the markets then you will see that gold, silver, oil, commodities and other tangible assets tend to rise together, they’re contra-cyclical to paper financial assets for 2/3 of a cycle. When stocks are doing well, then gold prices don’t move and when stocks are flat to negative on their rate of return in other asset classes, gold performs very well. People tend to step back from other financial assets and say, until the risk reward relationship is fair and even, I’d rather protect than speculate. That’s why, for 2/3 of the business cycle it is contra-cyclical.
Gold rose roughly 158% in the last six years, silver went up about 246% and while the Dollar fell 32%, up went gold stock by 300%. Compair the the Dollar today to the Dollar in 1870 and it is only worth 1cent and compaired to the Dollar in 1919 it is only worth 2cent and the largest drop in the Dollar, since it has been unhinged from gold, has been since the 1970’s. There has been a long term decline of the Dollar since the birth of the Federal Reserve in 1913, ending over 100 years of Dollar price stability. The US is now running a total annual budget and trade deficits exceeding $1.5trillion Dollars and the Federal Reserve is creating annually $1-2 trillion Dollar liquidity out of nothing which has a massive effect on things like the DOW JONES INDUSTRIAL AVERAGE, the DOWN JONES TRANSPORTATION AVERAGE and the DOW JONES UTILITY AVERAGE which have all been moving well since 2001 -2002 however, when you divide their price performance by the gold price, which I beieve is real money, you have downward trends in all three averages of the DOW JONES.
So here we have it, US debt has grown 5.5 times, roughly, since 1980 from $8 trillion to $44 trillion which is the biggest debt explosion in world history.
How do we deal with this massive debt? One way to pay it off is to raise taxes. WE have seen that before and we will see it in the years to come. They can print money as in Weimar Republic Germany after World War II. They could sell off by privatizing National assets such as telecommunications, transport, water systems or real estate. Just as Russia rejected $110 billion, so could they reject the debt. Finally, they could simply resort to plunder by launching wars to acquire wealth such as the Roman Empire did, the Spanish Empire did, the Nazis did and the Japanese.
Large Dollar holders are now beginning to exit the Dollar since the latest decline. The Dollar became the world’s reserve currency in 1944, everything had to be related to Dollars, most international transactions were denominated by the US Dollar for the next 62 years giving America huge financial power economically and politically. The United Arab Emirates announced that it would cut its Dollar holding in half in October 2006 and Japanese life insurers with $1.6 trillion in managed assets announced they were to diversify out of their Dollar holdings. Central banks all across Asia (South Korea, China, Japan, Taiwan and Hong Kong) have all started to diversify out of Dollars. China with $1trillion in foreign currency reserves has begun to diversify out of its $700billion and to cut back on its purchases of U.S. Treasuries. Russia too has cut its Dollar holdings from 70% to 40%; Sweden cut its Dollor reserves from 37% to 20% and Italy cut theirs by 21%. China is pushing the world to rely less upon the Dollar for world trade.
If foreign banks holding roughly $2.94trillion of U.S. Dollars were to diversify even 10% of their assets, you’d see $294 billion dumped into the market. 20% diversification would make $588 billion thrown out there which has a very negative effect on the Dollars value and of course interest rates would rise.
Foreign commercial institutions like insurance companies, banks, hedge and pension funds hold between $7-8 trillion in U.S. Dollars. Again any diversification away from the Dollar will have the same effect of rising interest rates and inflation through the roof. The Euro is now taking the place of the Dollar, many of the world’s oil transactions have begun to be made in Euros. In mid 2006, the IMF director for the Middle East and Central Asia urged Persian Gulf countries to peg their currencies to the Euro instead of the Dollar. Worldwide the Euro is in greater circulation than the Dollar and so it is large enough to enable it to become the reserve currency of the world. Foreign Dollar holders are now switching to Euros, British pounds, Swiss Francs and other strong currencies, into gold and other commodities such as oil and minerals.
So as the Dollar collapses, gold has risen. They tend to move in the opposite direction if they aren’t attached. Over the last 36years, the US Dollar has declined 80%, while gold has risen 1900%. Today it takes five times more of the Dollar to buy the same amount of goods or services than in 1971.
In the end we can see that against a depreciating Dollar, gold is the perfect hedge.
Gavin Conway
HoneyShed segment featuring the Cash Symbol Gold Money Clip.
Duration : 1 min 37 sec
“Make money online.” These words have the mysterious power to unleash your dreams and hopes! Making money online is a fascinating idea very similar in spirit to the Gold Rush 150 years ago. Both share the dream of changing your life by becoming rich quickly. Instant wealth is here for the taking! All you need to succeed is an entrepreneurial approach and the courage to think out of the box.
This idea is fascinating because it carries a wind of freedom. It opens new opportunities for people like you and me. Its essential message is: “You don’t need to be born rich to be rich! You too have a chance to make big money, or at least to achieve financial autonomy and be your own boss”. The beauty of the Internet is its democratic spirit that offers a renewal of chances for all. On the Web, success isn’t only the lot of an elite blessed by birth but an opportunity for “ordinary people” to achieving extraordinary results in their life and with very limited financial resources.
I caught the Internet bug several years ago. I was almost hypnotized by the idea of making an income online and changing my lifestyle so that I can do what I want, when I want, and where I want without having to worry about money. During that time, I spent hours, weeks and months scrutinizing web opportunities and trying to answer this question: How is it possible to make money online?
I was frustrated with not knowing how to answer this question for the longest time. The Internet was like a maze and I was erring in its endless corridors without finding the exit. Today I know that the challenge for anyone trying to make money online is figuring out what opportunity can make a difference for him. It’s a tough one! How not to be confused with so many opportunities claiming to hold the keys to online success and promising amazing shortcuts to wealth?! Which ones to believe? Is it really so easy? Are you really the only one who is left out when everyone else is enjoying the online money making party?
To help you take a jump-start, I present here a model which you can use to map out opportunities you encounter on the Web and to screen them before you give them a chance.
First let me ask you a few questions. Do you think it is easy to make lots of money on the Internet? Do you believe you can easily earn several thousand dollars a week with a secret formula developed by an Internet guru who reveals the most guarded secret in the world to you
Consider these ads:
- “Get Paid on Autopilot!!”
- “Get rich online: Make millions on the web with no effort!”
- “$100,000/month guaranteed! Start earning within 15 minutes!”
Cool, isn’t it? It seems you too can make a blast and it doesn’t require any real effort on your part… What are you waiting for? You should already be rushing to your Internet gold mine!
Such offers are seductive because their melody plays on the strings of laziness (we are all lazy to some extent) and wishful thinking (what if these promises are true?).
If you are inclined to believe such statements, you may learn the hard way that “all that glitters isn’t gold!”
Sorry to rain on your parade but the first thing you need to know if you really want to make money online is that you will need to roll up your sleeves! I know it’s disappointing. I would also prefer to make millions in my sleep but it doesn’t work that way. Making money online requires some time and effort, even for the easiest and best opportunity.
To succeed you need an attitude involving curiosity, courage, and the readiness to learn and work. The first step in this journey is to put aside “get rich quick” dreams and to skip programs that come with such a claim. To spot the real opportunities, free yourself of such illusions, use your common sense and develop a proactive approach involving knowledge acquisition, skill development, and work.
Step 1 is cleaning the ground you walk on and getting rid of seductive promises that will reveal themselves as deceptive scams.
Step 2 is focusing on real opportunities that can fit your goals.
Sam Parker
http://www.articlesbase.com/online-business-articles/make-money-online-a-roadmap-752113.html
James Turk presidente de GoldMoney, explica por qué comprar oro y metales preciosos para proteger el poder adquisitivo de la inflación.
Duration : 2 min 12 sec
http://www.goldbuffalocoins.org
This is a cool video about Gold Buffalo Coins, it also has some pretty cool pics
Duration : 37 sec
Famous Quotes on Money
“It is a cruel thought, that, when we feel ourselves standing on the firmest ground in every respect, the cursed arts of our secret enemies, combining with other causes, should effect, by depreciating our money, what the open arms of a powerful enemy could not.” –Thomas Jefferson to Richard Henry Lee, 1779. ME 4:298, Papers 2:298
“Historically, the United States has been a hard money country. Only [since 1913] has the United States operated on a fiat money system. During this period, paper money has depreciated over 87%. During the preceding 140 year period, the hard currency of the United States had actually maintained its value. Wholesale prices in 1913 … were the same as in 1787.” – Kenneth Gerbino, former chairman of the American Economic Council
“We make money the old fashioned way. We print it.” — Art Rolnick, former Chief Economist, Minneapolis Federal Reserve Bank
“Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.” – George Washington, in a letter to J. Bowen, Rhode Island, Jan. 9, 1787
“Of all contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money.” — Daniel Webster”
“I see in the near future a crisis approaching. It unnerves me and causes me to tremble for the safety of my country … the Money Power of the country will endeavor to prolong its reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands and the Republic is destroyed.” – Abraham Lincoln, just after the passage of the National Banking Act of 1863
“All the perplexities, confusion and distress in America rise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation.” – John Adams, in a letter to Thomas Jefferson in 1787
“Paper money eventually returns to its intrinsic value - zero.” – Voltaire (1694-1778)
“If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered.” – Thomas Jefferson in 1802 in a letter to then Secretary of the Treasury, Albert Gallatin
The value of paper money is precisely the value of a politician’s promise, as high or low as you put that; the value of gold is protected by the inability of politicians to manufacture it. – Sir William Rees-Mogg
The monetary managers are fond of telling us that they have substituted ‘responsible money management’ for the gold standard. But there is no historic record of responsible paper money management … The record taken, as a whole is one of hyperinflation, devaluation and monetary chaos. – Henry Hazlitt
“The creation of money exclusively as debt is the critical, destabilizing flaw in the American Economy”. – Author Theodore R. Thoren explains The Truth In Money Book.
“The decrease in purchasing power incurred by holders of money due to inflation imparts gains to the issuers of money … .” – St. Louis Federal Reserve Bank in “Review”, Nov. 1975
“You have to choose [as a voter] between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold.” — George Bernard Shaw
“Without the confidence factor, many believe a paper money system is liable to collapse eventually.” — Federal Reserve Bank of Philadelphia in “Gold”
“Whoever controls the volume of money in any country is absolute master of all industry and commerce.” — President James A. Garfield
“Those who create and issue money and credit direct the policies of government and hold in the hollow of their hands the destiny of the people.” – Rt. Hon. Reginald McKenna, former Chancellor of Exchequer, England
“If Congress has the right under the Constitution to issue paper money, it was given to be used by themselves, not to be delegated to individuals or corporations.” — Andrew Jackson
“The budget should be balanced, the treasury should be refilled and the pubic debt should be reduced. The arrogance of public officialdom should be tempered and controlled. And the assistance to foreign lands should be curtailed, lest we become bankrupt.” — Cicero, 63 B.C.
“Inflation has now been institutionalized at a fairly constant 5% per year. This has been scientifically determined to be the optimum level for generating the most revenue without causing public alarm. A 5% devaluation applies, not only to the money earned this year, but also to all that is left over from previous years. At the end of the first year, a dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced again by 5%, leaving its worth at 90 cents, and so on. By the time a person has worked 20 years, the government will have confiscated 64% of every dollar he saved over those years. By the time he has worked 45 years, the hidden tax will be 90%. The government will take virtually everything a person saves over a lifetime.” – G. Edward Griffin, historian and author of “The Creature From Jekyll Island“
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose … If, however, a government refrains from regulations and allows matters to take their course, essential commodities soon attain a level of price out of the reach of all but the rich, the worthlessness of the money becomes apparent, and the fraud upon the public can be concealed no longer.” — John Maynard Keynes, economist and author of “The Economic
Consequences Of The Peace” (1920)
“About all a Federal Reserve note can legally do is wipe out one debt and replace it with itself, another debt, a note that promises nothing. If anything’s been paid, the payment occurs only in the minds of the parties ….” — Tupper Saucy, author of “The Miracle On Main Street”
“… the gold standard is incompatible with chronic deficit spending (the hallmark of the welfare state).” – Greenspan, Alan; “Gold and Economic Freedom”, Rand, Ayn; Capitalism: the Unknown Ideal; Signet Books, 1967; pp96-101. See full text in FAME’s FedWatch section http://www.fame.org/.
Regis Sauger
http://www.articlesbase.com/history-articles/famous-quotes-on-money-701200.html
http://GotForeclosure.com/rgm
Find Bank Owned foreclosures in seconds, evaluate the deal and make offers in a fraction of the usual time. Locate properties at discounted prices. Reo homes, hud foreclosures, banks need to sell.
REO Gold Miner is a foreclosure search engine for bank owned foreclosure properties. Review and best bonus for REO Gold Miner is here!
http://GotForeclosure.com/rgm
REO Gold, REO Gold Miner, review, bonus, launch, how to buy bank owned, foreclosure, hud homes
Duration : 3 min 57 sec
"WoW Gold Guide: http://snurl.com/warcraftgold
This is the original best-selling guide for WoW that has been in publication for over 3 years with THOUSANDS of copies in the hands of gamers just like you! I hold absolutely nothing back! These are the same secret tactics that have made me thousands of gold with ease and make me the number one target of the gold sellers hatred for releasing them.
No Fluff - No Filler - 100% Legal
If you're like me, you've probably seen other guides for sale for World of Warcraft. Sad to say, I've purchased most of them and they are nothing but filler with only a few good tips in between."
Duration : 2 min 12 sec