Tuesday, April 30, 2013

Gold and Silver Mania Building as Global Currency Debasement Accelerates

Stocks were down heavy early in the session, but, thanks uncle uncle Bennie and his magic bucks created out of thin air, traders bought the dip and sent the major indices higher throughout the day.

In a few words, this is the most inane, superfluous rally ever seen in the history of mankind. It's based on nothing more than cheap money and ignorant of fundamentals. Eventually, there will be a spectacular crash.

Those who see straight through the global currency debasement regime are content to ride it out on the sidelines in cash or stable assets such as real estate, gold, silver or productive small enterprises and emergent technology, where the underground economy is flourishing.

Theft via either inflation or taxation is theft no matter what, and between the central bank - the US Federal Reserve, a private corporation, mind you - and the various levels of government, incomes are being reduced and savings eviscerated on a regular basis. Those being hurt the most are wage-earners, who have no option out of the payroll tax system, which rips away one's earnings before they even reach the hands of the workers. As the United States slides inexorably into socialism, fascism and an overt police state, those individuals wise enough to resist are turning to alternative means of subsistence via home-based businesses, backyard gardens, online sales and other avenues which supplants the tax system by keeping more money in the hands of its rightful owners: those who have earned it.

As for inflation, there are only a few protections against that ravaging discounter of money's marginal value, though as the system becomes evermore a game played by the rich and connected, average Joes and Janes are beginning to awaken and seek refuge, especially in the precious metals, which are at the nascent phase of a boom that will overthrow the fiat money systems and turn the world upside-down.

Despite the lame attempt by central banks (likely the Federal Reserve with assistance through their usual commanders in the field, the largest banks and insurance companies) to take down the price of gold and spread propaganda through their controlled media outlets that the 13-year gold bull run is over, the gold bullion market, in particular, is red-hot, and large enough ($14-16 trillion globally) to impact all markets and commerce in dramatic fashion.

It is estimated that less than two percent of people in the world own or control some quantity of gold or silver, a number which the world's central banks alternately sneer at or shiver over. An increase in the collective consciousness which levers up gold and silver holdings to a mere five percent of the global populace could easily upset the fiat currency regime, already well on its way to self-inflicted destruction.

Despite the paper (spot) prices of gold ($1470) and silver ($24), these commodities are not out of the reach of average citizens as a store of wealth and a hedge against currency debasement or default due to the wide array of products offered.

Depending on how much you are purchasing, gold on eBay (the new, de facto real market for PMs) is selling for anywhere between $1550 and $2000, per ounce, the higher number being the price paid for fractions of ounces or even fractions of grams (1/10 grams are ridiculously priced, well over $2k/oz.).

The high end on the scale - for the smallest amounts - seems to indicate that a mania is gradually forming. Small-timers with limited resources are thinking, "I MUST have some gold, no matter the cost." Many 1/10 oz. gold coins are selling for well over $200.

If the trend accelerates and gold and silver become recognized as worthwhile investments or hedges - no matter how small the amount - by just 2% of the population in the US, expect gold at $2k to be the norm, rather than the exception per small denominations.

I'm seeing plenty of 1 oz. gold bars and coins going for upwards of $1550, most at $1600 and higher. Ever-popular Krugerrands are holding pretty steady for 1 oz coins at $1525-1560, with a rare one going for right at $1500, but not often.

Since ebay is charging 10% fees to sellers, the sellers are getting premiums insufficient to compensate for said fees, making it a real buyers' market. Demand is through the roof. Any properly-priced auction sells, usually with multiple bidders. Silver is still getting roughly $28-31 per ounce over all varieties of coins, bars and denominations, at a high premium to spot or "paper" price.

It would do everyone good to at least take a small amount of time to investigate and understand the value of investing in gold and silver. Most people invest in paper products like stocks or bonds, and many also aspire to owning a home or farm or valuable real estate, yet they have no interest in owning gold or silver, the two precious metals which have been employed as currencies for thousands of years.

Those who have been invested in precious metals over the last 10 to 12 years have experienced outsize gains against all other currencies and have outpaced stocks and bonds by a country mile. Often termed dull, unexciting and relics of the past, there doesn't have to be anything exciting about safety in investments. The thrills and stresses of the stock market are easily laid to rest by the relative peace and prosperity of owning currencies which have stood the test of time and will again rise to prominence as the fiat regime grinds inexorably to its end.

Dow 14,839.80, +21.05 (0.14%)
Nasdaq 3,328.79, +21.77 (0.66%)
S&P 500 1,597.57, +3.96 (0.25%)
NYSE Composite 9,276.88, +31.66(0.34%)
NYSE Volume 3,980,642,750
Nasdaq Volume 1,943,042,875
Combined NYSE & NASDAQ Advance - Decline: 4131-2284
Combined NYSE & NASDAQ New highs - New lows: 445-36
WTI crude oil: 93.02, -1.24
Gold: 1,476.10, +8.70
Silver: 24.20, +0.078

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