How the Gold/Silver Ratio Can Greatly Increase Your Physical Holdings

Gold Silver Ration Jul 14The magic of compound interest is well known.   What is lesser known is the magic of the gold/silver ratio, not as a measure as it is mostly viewed, but as an application for increasing one’s holdings substantially, over time. 
What is so great here is that no magic is involved, rather simply utilizing the market to more than double your holdings.
So-called “Gold Bugs” are considered ardent supporters of the PM [Precious Metal]. 
Silver stackers are just as avid.   Then there are those willing to buy either or both.
The chart below is the gold/silver ratio going back 15 years, and this is a hindsight analysis brought forth to the present tense for future consideration that can greatly increase net holdings at almost no cost, those being transaction costs from a dealer.

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Three Signals For A Huge Silver Spike In 2014 (Has JPM Gone Massively Long Silver?)

While the average price of silver remains at a multi-year low, there are several indicators pointing toward a much higher price by the end of the year.
If we look at all three INDICATORS-SIGNALS together, we can see SOMETHING BIG is getting ready to occur in the precious metals market.

The first involves what appears to be evidence that JPMorgan has gone MASSIVELY LONG silver:

 

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Gold: Let The Good Times Roll? – Stewart Thomson

summerLet the Good Times Roll!
During the first six months of 2014, there have been quite a number of events that are positive for the gold market, and there was a big one yesterday.
Gold staged a nice breakout from a small bullish wedge pattern last night, and the entire chart has a very bullish look.

Why is that?   Well, the month of August can see Indian citizens buy enormous amounts of gold, as they begin preparations for the wedding season and Diwali.   Expectations of those liquidity flows into gold are likely why the gold chart looks so bullish now. [Read more...]

It looks like Hong Kong may soon end its link with the US dollar. It’s about time.

It was a different world in 1983.
Michael Jackson invented the Moonwalk. Return of the Jedi opened in theaters across the world. IBM released its most advanced personal computer yet– the XT, with a standard 10 megabyte hard drive.
And after nearly a decade of eratic swings and collapses, the Hong Kong government pegged its currency (the Hong Kong dollar) to the US dollar at a rate of 7.80 HKD per USD.
This was a big move for Hong Kong. The Hong Kong dollar had originally been backed by silver until 1935 when, facing a shortage of precious metals, they pegged it to the British pound.
This made sense in 1935 as the British pound sterling was still (barely) the world’s top reserve currency.
But things changed.

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Do Central Banks Really Hate Gold?

Bernanke-Dimon-Fed-TunnelOne of the keys we watch here along with the US dollar is the price and movement of gold.
If you do any research on gold at all, you will quickly discover that there is a commonly held view that Central Banks hate gold and think of it as a useless asset that does not earn interest.
As usual, if you dig a little deeper and do more research you discover a different story.  [Read more...]

How the NSA is Actively Helping Saudi Arabia to Crackdown on Dissent

It is not an exaggeration to say Saudi Arabia is one of the most oppressive, authoritarian regimes on the planet.   Despite having been the main foreign instigator pushing for conflict in Syria, as well as its increasingly disturbing ties to the attacks on 9/11, it remains one of the U.S. government’s closest allies.
I’ve covered some of the human rights abuses of the Saudi regime on several occasions due to the fact that it so clearly exposes the total hypocrisy of U.S. foreign policy.  The most recent example was the recent sentencing of human rights lawyer and activist Waleed Abu Alkhair to 15 years in prison for “inciting public opinion,” i.e., effectively utilizing free speech.  I covered this in detail in the post: Saudi Human Rights Lawyer and Activist Jailed for 15 Years for Free Speech Under New “Anti-Terror” Law.
Thanks to revelations from Edward Snowden, we now know that our taxpayer money is directly funding the ability of this autocratic regime to brutalize its citizenry.

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The “Insider Threat Program” and the Government’s War on Whistleblowers

The Obama Administration’s Orwellian government employee snitch network, dubbed the “Insider Threat Program,” first made headlines about a year ago.
Fast forward a year, and it appears that several members of Congress are also becoming increasingly concerned.
What is clear since the Edward Snowden revelations is that the government has zero interest in reining in these programs.  It merely wants to make sure the public can never learn about government criminality in the future. Hence the aggressive “war on whistleblowers.”

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Central Banks and The Dollar Hitting the BRICS

Putin ammo shortageWe are pleased to announce the signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US $100 billion.  This arrangement will have a positive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements…. The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
Parallel phenomena are trickling their way up from the darkness in monetary sentiment. It may be symbolic for now, but the politics in the U.S. with the symbolic and the organizing structure of alternative reserve currencies represent yet another shift toward a phase transition in dollar confidence.

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Are Gold & Silver Investors Ready for the 2015 Derivatives Melt-down?

collapseManipulation is KING in the future’s casinos and only those who understand how they do what they do will profit right along with them…
Will there be a rebound from the recent manipulative take-down?

Quite possibly, but it is only going to be a short term rebound as the Precious Metals DEPRESSION IS the goal of the bullion banks and their minions heading into 2015 so all precious metals investors everywhere will lose their confidence in the metals and other hard assets, invest in paper stocks, and then be raped when the world wide economic collapse that I believe is coming takes place in the Fall of 2015.
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Asset Forfeiture – How Cops Continue to Steal Americans’ Hard Earned Cash with Zero Repercussions

In a nutshell, civil forfeiture is the practice of confiscating items from people, ranging from cash, cars, even homes based on no criminal conviction or charges, merely suspicion.   As is often the case, what starts out reasonable becomes a gigantic organized crime ring of criminality, particularly in a society where the rule of law no longer exists for the “elite,” yet anything goes when it comes to pillaging the average citizen.

While the epidemic of law enforcement theft is problematic throughout the country (see these egregious examples from Tennessee and Michigan), it appears Texas has a particularly keen love affair with the practice. Not only did last year’s story take place in Texas, today’s highlighted episode also takes place in the Lone Star State.  This time in a town of 150 people called Estelline, which earns more than 89% of its gross revenues from traffic fines and forfeitures.   
In other words, from theft. 
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INDIAN SILVER IMPORTS: Near Record At A Quarter Of Global Mine Supply

Indian Silver Imports vs Global Mine SupplyIt looks like at least one country is still taking advantage of the extremely low paper price of silver.
From information just released, India continues to import a near record amount of silver in 2014.
Even though silver imports slumped in June compared to last year, demand is still extremely strong.
Do you really believe top silver producing countries like Mexico and Peru as well as many other South American countries will continue to give away their silver for a mere pittance when the Dollar finally loses its World Reserve status?
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1st Half Gold Exports from Switzerland to Asia: 600 Tonnes

Gold as a weapon in a global currency warAccording to the latest figures by the Swiss Customs Administration, the country has exported a total of more than 600 tonnes of gold to Asia in the first half of this year.
The graph below clearly shows the flow of physical gold to Asia: [Read more...]

Gold’s Strong Season Begins

gold bullGold’s strong season is just getting underway, with this metal’s summer-doldrums seasonal low in place.  The past couple months’ stiff headwinds are starting to shift to fierce tailwinds, thanks to Asian demand ramping up heading into autumn.
Gold’s pronounced seasonality is very important for all investors and speculators to understand, as today’s inflection point is a very bullish omen for this still-unloved asset.
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Deutsche Bank & HSBC Accused of Silver Fix Manipulation

Jamie DimonPerhaps this is why Deutsche Bank could not find a single buyer for its seat on the London Fix: the bank, along with HSBC have been officially accused on manipulating the silver fix in a new suit filed in federal court in Manhattan over the weekend.  [Read more...]

Clear and Present Danger Zone

dangerDing, Ding, Ding!
The bell tolls, not for the 1%, but for the remaining 99% in Europe, the UK, Japan, and the US.
What Danger Zone?  The powers-that-be must find a way to keep the masses under control, raise taxes, enrich themselves and monetize the debt.
The result will be currency devaluations, blood, inflation, distractions (such as downed airliners and new wars), banker bonuses, continued payoffs to politicians, and so much more. [Read more...]