Gold and Silver Update - 06 Sep 12

I was 90%, but now I'm 99% certain that this is the start of the biggest silver rally there ever will be and this bull run will last at the very least 5-10 years. My bullion buying customers are going to be some very wealthy people.

But back to the update, a while ago I mentioned that once we close above $30 we would never see sub $30 again. Well in the last few days Silver has smashed through the $32 level and is  now about to test $33. This is a purely physical bullion driven market and the market manipulation we've seen over the years is now looking as though it's being over powered by the sheer demand of people buying REAL physical silver. The fundamentals behind silver are beyond belief and the Silver rally is going to be like a thief in the night and shock the world. That's a good thing if you own silver, not so good if you don't. We're now waving goodbye to dirt cheap silver. Having said that, this is still very cheap considering that we'll be looking at $500 Silver within 3-5 years...

A good article from Wealth Wire

“I do not know if they [the Fed] will announce it… I know they are going to print more money. They already are.  If you look at their balance sheets, you will see that something is happening, assets are building on their balance sheets and they are not coming from the tooth fairy.”

  

Jim Rogers - Billionaire/Commodity Guru

Rogers recently made this statement to India’s Economic Times. He continued by asserting his belief that the Fed is “a little embarrassed” to officially confirm their engagement in QE3 after QE1 and QE2 failed.

Furthermore, Rogers says he is confident that they are all going to print money even though it is the wrong thing to do. Unfortunately, it is “all they know how to do,” according to Rogers.

Last week, Bernanke gave no direct indication of a coming QE3 at the Jackson Hole speech, but no one was surprised. Instead, Bernanke used his energy and speaking time attempting to explain the ways in which QE1 and QE2 were effective.

We’re not sure who’s buying those lines, but we know Mr. Rogers isn’t one of those suckers.

Presumably, America’s central banks are secretly printing money already to avoid “getting egg on their face again.”

Meanwhile, the eurozone crisis and our own debt dilemmas remain stagnant. It’s truly mind-boggling that the Federal Reserve is still attempting to solve the debt problem by instigating more debt by giving consumers a false sense of confidence by printing more ‘Monopoly Money.’

Investors finding trouble with the Western stock markets – the Euro Stoxx 50 index is down 3.1pc from its year-high in March after falling 18.8pc – are turning towards other emerging markets for solace, especially Asia.

Still, India and China both have some serious risk-factors associated with them…Rogers is short on India and says China is headed towards a “hard landing.”

Once again, investors are seeing why gold and other precious metals are the only real safe havens in these unfavorable present-day market conditions. Gold is hovering around the $1,689 range and is likely to crawl up again once governments across the globe reinstate stimulus measures.

But don’t look to the central banks to help out with the mess the global community is in. They will just print more money as gold prices rise in response.

Oil prices are predicted to rise based on supply limitations as well. If our nation does end up going to war with Iran, expect oil prices to surge to unprecedented levels.

Keep your eyes on commodities and precious metals, not the Fed. You already know what they’re doing – we’ve all already seen it twice before. 

Black Gold. The drug of choice for the human race...

Ever wondered how far we're willing to go to extract the tiniest quantities of oil? Well this picture explains it perfectly. We are very close to peak oil production and so the next decade is going to be very interesting! But from an investor view point, oil prices are only going in one direction! And it's not sideways! 

Also, to put it into perspective of how desperate we are. Remember that BP  oil spill not so long ago in the Atlantic? Well that oil well they found there was one of the biggest discoveries in recent history. That may sound impressive, but if they didn't screw up and they actually managed to extract every single drop of oil from that well...it would only have supplied just 24 hours of the world's total oil consumption! 24 hours! And that's being conservative. As I've said many a time now, my personal 5 years outlook on the markets is Euro down, Dollar up till the Euro dies, then down, Oil up, Gold and Silver on a rocket, commodities up, Rare Earth Minerals up, Uranium up and Stock Markets down....it's probably better to go to the casino than buy into the Stock Markets at the moment!

Gold and Silver Update - 03 Sep 12

If you cast your eyes back to a few updates ago, I mentioned that Gold and Silver had broken out of it's long term range and that from now on, all we will be seeing is rising prices...but only after a slight retrace. Well it did exactly that. This was also helped by the Ben Bernanke Jackon Hole speech where he indicated again that QE3 is on the cards. But as we all know by now, QE3 has always been on the cards. It's simply a loaded gun and the trigger will be pulled the moment they smell deflation. To us public folk, what we'll probably see is a quick stock market crash, QE3 being injected and the aftermath of it will be a few months of rallying in the capital markets followed by an almighty crash. I exited from the stock market about 6 months ago and will certainly not be re-entering it for a long time. The pic below is what happened with the metals. The left side is my previous update and the right side is what happened. Long story short, I'm expecting another tiny retrace, but the next target for silver is $35 and we'll be seeing that in a matter of weeks, if not days....