Over the past year, I’ve suggested that housing prices would continue to decline, that gold would be a safe haven, that the stock market has not been and will not be a sound investment in the short term, and that the recession would continue without real recovery.
Since the dates of the individual posts linked above:
Interesting that you note, “in dollar terms.” When you mention that gold will be making new highs in dollar terms, I will complete it with saying that gold will be making highs against all western currencies. If one looks at the price of gold against “competing currencies,” you will find gold has made highs in:
The Dollar, The Swiss Franc, The Pound, The Australian Dollar, The Canadian Dollar, The Euro, and many more.
With the introduction of the PAGE (Pan Asian Gold Exchange) coming full throttle by the end of 2011, a new dynamic for gold-spot price mechanism will be achieved. The people’s bank of china are unfolding a large step in their carefully crafted 12 year economic plan, in that they are backing this new exchange with their currency. This exchange will offer 1 for 1 allocation of gold oz per contract, and when a person trades their gold, they trade their lease alongside it. Currently we have a completely distorted pricing mechanism with futures and a couple of corrupt clearing houses (the LBMA and the COMEX).
An aside, concerning one of the corrupt clearing houses and silver.
Did you know that one contract of silver on the COMEX futures exchange is 5000oz, and there is an average of 70,000-120,000 contracts traded on this exchange (only open from 10:15-1:30 PM), representing 350,000,000-600,000,000 oz of silver traded in a day. Just to let one know, there is only 800million oz of silver mined in one year, and this clearing house only holds roughly 30,000,000 oz of silver in their vaults. What happens when the bank run inevitably happens? Yikes!
Long story short, gold and silver (physical) are the only safehaven. Investors in GLD/SLV will find themselves holding the bag.
Gold and Silver going up in value REALLY represents a DEVALUATION of the currency of choice. Pick what you want, they are all in a race to the bottom.
The end of the Dollar Reserve Standard is very near. Stop by http://www.tfmetalsreport.com/ if you wish to understand more.
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Keep up the good work Craig. More people need to be involved on the local level, including me. Way to stick your head out there, I will be trying to follow your blog more often, as I just ran over it in my long list of favorites.