What's wrong with QE? Everything...

Very quick market update: 16 Sep 12

Let's look at Silver from an engineer's view...

A good outline of the Silver market

This is a promotional video of Endeavour Silver. I'm not promoting them in anyway. In fact it's counter-intuitive as I sell bullion myself, but the video is good at explaining in very simple terms what's developing...

If there is one audio clip you listen to today...it should be this one...

Wise, wise words...

Ignore the annoying voice at the beginning.

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/9/2_Egon_von_Greyerz.html

Gold and Silver Update - 13 Sep 12

I've been talking about the psychological $35 level for a few months now and that we would be achieving this very soon. Well these updates haven't been wrong yet, so my previous assessment of reaching $35 soon and $50 within months still stands. If you haven't got physical gold and silver, now is the time to get it. We will never see sub $30 silver again or sub $1700 gold. Stay tuned for this weekend for a full market video update...

Silver Update 11 Sep 12

Just a really quick update due to lack of time this morning but long story short, things are looking great for silver at the moment. Enjoy...

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....

Chuck Norris....you have now been replaced....

This has nothing to do with investing, but I just wanted to include it on here. This guy was on his own and got ambushed by 30 Taliban. He single handedly neutralized the threat and even used a sandbag and a tripod. Amazing courage! We need to look after our Gurkha a lot better, it's disgraceful how we treat them.

Gold and Silver Update - 29 Aug 12

Small picture Gold and Silver morning analysis - 28 Aug 12

Urgent Silver update - 22 Aug 12

Things are heating up. My view is that gold and silver prices have started their bull run. I said that we wouldn't have these cheap prices for long and I was hoping they'd last till October, but hey...this is where the fun starts...

A little bit of controversy a day keeps the banks at bay...

Came across an interesting video a while ago. It's definitely thought provoking!

Maths has never been so straight forward...

So folks:
- John Paulson has just bought $18 Billion worth of Gold.
- George Soros has sold ALL of his financial stocks for $50 Million and bought $100 Million worth of Gold.
- The Central banks have gone from biggest sellers of Gold to biggest buyers.
- China has bought over $2 Trillion of Gold and Silver in the last 24 months.

- The Rothschilds and Rockefellers have joined forces for the first time since 1928 (a year before the Great Depression).
- Eric Sprott and Jim Rogers (billionaires) have most of their net worth in Gold and Silver.

So surely if the world's smartest billionaires are fleeing to Gold and Silver for financial safety...surely that's a sign that the rest of us should be doing so as well?

I'm no mathematician, but this algebraic equation makes perfect crystal sense to me...:

Brutal austerity + toxic politcal/financial corruption + rising bond yields + a lack of confidence in the financial system + banks that are massively overleveraged + a massive credit crunch + ERISA + global silver shortage + Rothschilds betting against the Euro + China owning more Dollars than the US + US debt increasing by $4 BILLION per day + Iran/Syria = A financial implosion of historic proportions + Gold & Silver prices to the moon + JP Morgan becoming insolvent + hyperinflationary depression.

Call a me a doom gloomer, but what's the worst that could happen by buying a lot of Gold and Silver? Please email me, because I see no reason not to...

History Doesn't Repeat Itself, It Just Rhymes Really Well!

On my DVD (www.HedgingAgainstUncertainty.com), I mentioned that in the world of finance and investing, history nearly always repeats itself. I then go on to say that because of this clockwork predictability, investing can be very easy if you know what you're looking for. Well...not long ago I was having a rather in depth conversation/debate with an acquaintance over the world crisis and he was adamant that history certainly does not repeat itself and that anyone who invests and hopes that history will pop up and say hello again is a fool. Although I disagreed and attempted to prove him wrong with some facts and graphs, the debate continued. However his argument did spawn 2 thoughts:

 i.) Hope is probably one of the worst things to have when you trade or invest. It's almost as bad as revenge or greed, so if you ever find yourself making a trade and 'hoping' it goes in your favour...you're in for a surprise! You really need to 100% know why you're making that trade based on facts. NOT what your gut is telling you. The market can't hear your gut.

 ii.) The history thing. It bugged me. So I recently re-watched the DVD again and studied a lot of my past work and research into the market data I've amassed over the years. As a result, I'd now like to make a retraction. :-S Although history doesn't repeat itself, it does rhyme really really well and most of the time, when it does rhyme, it tends to be sung in a sinister tone. It seems as though the God of Economics has a cheeky sense of humour. This 'God' seems to enjoy watching us humans fall into the same problems and make the same stupid jerk reactions time and time again. Except that every time things repeat, just for giggles, this 'God' changes events ever so slightly, sits back with his popcorn and watches our own undoing. Pick any economic disaster over the last 300 years and I can find you multiple events in history which albeit may not match it exactly, is merely a different octave.

So why is this? Why are we continually doomed for failure? Well, in a nutshell, it's simply due to human nature. As a race, we simply cannot master self-control. Especially when our green horns protrude in the presence of money and power. The great Baron Nathan Mayer Rothschild even said, "I care not what puppet is placed on the throne of England to rule the Empire. The man that controls Britain's money supply controls the British Empire, and I control the money supply." Do you really think President Obama controls the US? It's quickly becoming common knowledge that Goldman Sachs controls America, but who controls Goldman Sachs? You guessed it...the Rothchilds. While they may not own it completely, they have a large stake. There are even several unconfirmed sources that say the Rothchilds are worth over $100 trillion, however it could just be hearsay. But I digress.

Back to human nature. So we may start out with good intentions like the Americans did 200 years ago with the Constitution. However the powers that be saw gaping holes of opportunity over the decades and pounced on them without us noticing. Like completely ignoring the Constitution by unpegging the Dollar from Gold. Or the introduction of the Federal Reserve. Please watch my video about the money supply and the Fed here, but ever since its inception, the Dollar has been devalued every single day. To the point where right now, the US Debt increases by $4 Billion per DAY and the US currency supply has quadrupled in the last 3 years! Power is gained through enslavement via taxes and the the Fed steals money from the public in the form of inflation. Commonly known as the stealth tax. The world's currency supply is well into exponential growth and every single dollar the Fed creates out of thin air, immediately devalues every other Dollar in existence. Thus, devaluing the Dollars and buying power in your pocket. The Dollar has lost more than 97% in value since the Fed reared its octopus grip on America/world. But don't for one minute think you're safe in the UK. Our debt increases by £450 Million per day and our currency supply is also in exponential growth. The Bank of England is just as bad and is simply the Federal Reserve's ugly younger sister.

Our own undoing 9 times out of 10 normally starts from the birth of a fiat currency. Again, this video explains it all, but every major civilisation from the Romans to the Greeks all died due to war and fiat currencies. War is simply the cigarette but fiat currencies are the cancer and right now, our cancer is terminal. Fiat currencies have a 100% failure rate over the last 3000 years and if you think we've finally figured out how to cure this cancer, please carry on watching the news and burying your head in the sand.

Now some of you may be wondering how we can counteract this ominous currency devaluing. The simple answer and the same answer which has stood for over 3000 years are Gold and Silver. Put it this way, in 2006, 1 ounce of Silver cost about £6 and this ounce would buy you 6 litres of petrol. Right now in 2012, this same ounce of silver will buy you 16 litres of petrol even though we now have crazy oil prices and inflation. You can barely buy a kebab for £6 these days!

So there you go. The definition of insanity is doing the same things over and over again expecting different results. Well call me facetious, but I think the world’s economists and bankers are insane to the membrane! I believe history is repeating itself again as we speak and what will play out in around 2016/17 will make the 1929 Great Depression look like a night out in Blackpool. The US and the Dollar is the modern day Rome and the gates are burning. The Economic God has got his karaoke out and is starting to rap!

Economic Collapse Chain Reaction

This is how things may possibly play out. Order of countries may change. It's also highly probable Germany may even be one of the first to leave. But one thing I do know is that this will happen...

Quantitative Easing in a nut shell...

This video may be mocking the financial system but it's 100% correct. Except these days they don't use the printing presses like we're familiar with, all they do these days is type a '1 followed by the required amount of zeros' into a computer and pOOf! Fake currency springs into existence and hits the banks books! Fact.