Uploaded by CaseyResearchFAN on Mar 4, 2011
Saturday, March 5, 2011
Friday, March 4, 2011
Why the Dollar's Reign Is Near an End
MARCH 2, 2011 The WALL STREET JOURNAL
For decades the dollar has served as the world's main reserve currency,
but, argues Barry Eichengreen, it will soon have to share that role.
Here's why- and what it will mean for the international markets
and companies.
By BARRY EICHENGREEN
The single most astonishing fact about foreign exchange is not the high volume of transactions, as incredible as that growth has been. Nor is it the volatility of currency rates, as wild as the markets are these days.
Instead, it's the extent to which the market remains dollar-centric. Consider this: When a South Korean wine wholesaler wants to import Chilean cabernet, the Korean importer buys U.S. dollars, not pesos, with which to pay the Chilean exporter. Indeed, the dollar is virtually the exclusive vehicle for foreign-exchange transactions between Chile and Korea, despite the fact that less than 20% of the merchandise trade of both countries is with the U.S.
Chile and Korea are hardly an anomaly: Fully 85% of foreign-exchange transactions world-wide are trades of other currencies for dollars. What's more, what is true of foreign-exchange transactions is true of other international business. The Organization of Petroleum Exporting Countries sets the price of oil in dollars. The dollar is the currency of denomination of half of all international debt securities. More than 60% of the foreign reserves of central banks and governments are in dollars.
The greenback, in other words, is not just America's currency. It's the world's. But as astonishing as that is, what may be even more astonishing is this: The dollar's reign is coming to an end.
John Hathaway - $50 to $60 Silver, US Dollar in Danger
March 3, 2011 kingworldnews.com
With gold and silver consolidating recent gains, today King World News interviewed John Hathaway, Senior Managing Director of the Tocqueville Gold Fund. There is a great deal of talk emerging about the strength in the silver market and the weakness of the US dollar. Regarding silver Hathaway commented, “Well it’s on fire obviously. Usually when silver does well you have a set of inflationary expectations.”
With gold and silver consolidating recent gains, today King World News interviewed John Hathaway, Senior Managing Director of the Tocqueville Gold Fund. There is a great deal of talk emerging about the strength in the silver market and the weakness of the US dollar. Regarding silver Hathaway commented, “Well it’s on fire obviously. Usually when silver does well you have a set of inflationary expectations.”
Hathaway then shocked KWN with this statement, “If we have a continuation of QE2 past June 30th, I wouldn’t be surprised to see silver in the $50, $60 an ounce territory.”
When asked would there be a waterfall decline if the US dollar were to move down and take out the 71-72 area Hathaway responded, “Yeah, I think that would be a real sign that people had given up on the dollar. The market would basically be telling you that the verdict is in and the dollar is in effect beyond redemption in terms of any sort of respectability and I think you’d see a huge move into gold at that stage.”
See interview @ ORIGINAL SOURCE
Thursday, March 3, 2011
Why Silver is Headed to $500/oz - plus, Backwardation Explained by Jason Hommel
Mar 2, 2011
Jason Hommel, the owner of the JH MINT, and the author of the articles the Silver Stock Report.
Silver Outweighs Gold
By: Peter Schiff, CEO of Euro Pacific Precious Metals as seen on silverseek.com
-- Posted 2 March, 2011
-- Posted 2 March, 2011
In the world of precious metals, silver spends a lot of time in the shadow of its big brother gold.
Gold, with its high price-to-weight and distinctive yellow tint, has always occupied a special place in the human psyche. To many people across many ages, gold is simply the ultimate form of money - and, as a long-term, stable store of value for one's personal wealth, I agree it's hard to beat.
However, rare circumstances are aligning today that I believe will make silver the true champion of this bull run.
WHAT'S DRIVING PRECIOUS METALS?
Gold and silver are both benefitting from a perfect storm in the sector.
Dollar devaluation means that much of the 'gains' we see are really just losses by people holding dollars. In other words, if your dollars lose 50% of their value, it's going to take twice as many of them to buy the same ounce of gold.
But the rally is based on more than simple inflation. Precious metals are regaining their role as the ultimate reserve asset. That means many, many more people are buying and holding these metals than at any time in the last thirty years.
Another factor is the rise of emerging markets and decline of developed markets. As billions of poor Asians, Africans, and South Americans lift themselves out of poverty by embracing the free market, the US is plunging itself into poverty by rejecting it. This means there are a mind-boggling number of new customers for jewelry, savings, and industrial products that require precious metals - and that we are becoming less and less able to outbid them for these resources with our dollars.
Read more @ ORIGINAL SOURCE
Thinking on targets...[Franklin Sanders, The Moneychanger]
Tuesday, March 01, 2011
The GOLD/SILVER RATIO might give us some guidance. A 40:1 ratio and a 3950c silver high takes gold to $1,580 -- plausible. Gold at $1,500 with a 40:1 ratio yields silver at 3750c, and yes, there is also an ancient jiggle peak there, too. (By "jiggle" I mean a short interruption of an otherwise vertical rise.)
....Over the course of this bull market silver has usually topped in February, March, or May. If this rally runs into May, well, I have no idea what it might reach. I warn y'all, however, to view this soberly. Everybody loves a Fun Run, but nobody likes the clean-up, and when this rally ends there will be one huge mess to clean up. Silver will take a big hit, and so will gold, and the market will be slow and disappointing for months afterward.
Are Gold and Silver Still Shining Investments?
| Are Gold and Silver Still Shining Investments? | FOXBusiness.com | Mar 2 2011 6:19PM |
Wednesday, March 2, 2011
Precious Metals are true currencies: Marc Faber
Published on: March 02 2011 12:15 GMT
LONDON (Commodity Online): Global investment analyst Marc Faber says the best and true currencies available in the world today are not US dollar or Pound, but precious metals such as gold, silver, platinum and palladium.
Faber, who is famous for his prediction of the US stock market crash in 1987, said that commodities, especially gold and silver will be the wise investment options for people in the wake of rising inflation and troubled economies around the world.
Faber, who is the publisher and editor of Gloom, Boom & Doom Report, said that if there is a war, gold and silver would be desirable investments to hold.
Faber recommends investors to accumulate gold in response to money supply inflation policies of the U.S. Federal Reserve—policies that have contributed to rapidly escalating commodities prices since the introduction of these unprecedented monetary measures in March 2009.
In his discussion with Prison Planet radio host Alex Jones, Faber said he anticipates the Fed to announce further “quantitative easing” initiatives before the expiration of the Fed’s latest “QE” initiative, QE2, which expires in June.
Faber argues that the gold price is signaling to the market that the U.S. dollar is “no longer a credible unit of account” due to the Fed’s QE plan of purchasing mortgage-backed securities and surplus U.S. government debt not absorbed by the market.
Read more @ ORIGINAL SOURCE
LONDON (Commodity Online): Global investment analyst Marc Faber says the best and true currencies available in the world today are not US dollar or Pound, but precious metals such as gold, silver, platinum and palladium.
Faber, who is famous for his prediction of the US stock market crash in 1987, said that commodities, especially gold and silver will be the wise investment options for people in the wake of rising inflation and troubled economies around the world.
Faber, who is the publisher and editor of Gloom, Boom & Doom Report, said that if there is a war, gold and silver would be desirable investments to hold.
Faber recommends investors to accumulate gold in response to money supply inflation policies of the U.S. Federal Reserve—policies that have contributed to rapidly escalating commodities prices since the introduction of these unprecedented monetary measures in March 2009.
In his discussion with Prison Planet radio host Alex Jones, Faber said he anticipates the Fed to announce further “quantitative easing” initiatives before the expiration of the Fed’s latest “QE” initiative, QE2, which expires in June.
Faber argues that the gold price is signaling to the market that the U.S. dollar is “no longer a credible unit of account” due to the Fed’s QE plan of purchasing mortgage-backed securities and surplus U.S. government debt not absorbed by the market.
Read more @ ORIGINAL SOURCE
Tuesday, March 1, 2011
Monday, February 28, 2011
Silver Market Update by Clive Maund
originally published February 27th, 2011. www.clivemaund.com
After last week's update called for a near-term top in silver we got one more up day, thanks to the antics of the Libyan "fruitcake" digging his heels in and resisting being swept away. After that silver did indeed start to correct back although it ended the week with an up day.
On its 8-month chart we can see that silver backed off after hitting an adjusted "bullhorn" target - in last week's update we had targetted it at a trendline drawn across the early and late December peaks, but it exceeded that, so we then found that it had actually stopped at the trendline drawn from the November high. Now it is very overbought, as is evident from the intermediate MACD indicator at the bottom of the chart, so if the situation in the Mid East starts to cool, we could very easily see a substantial reaction shortly. However, we should remain aware that this situation is very fluid and if the problems in the Mid East intensify, leading to gold breaking out to new highs, then silver could break above the restraining trendline shown which would be expected to lead to a very steep ascent, but as set out in the Gold Market update, price and volume action in stocks is portending a correction that could be severe.
After last week's update called for a near-term top in silver we got one more up day, thanks to the antics of the Libyan "fruitcake" digging his heels in and resisting being swept away. After that silver did indeed start to correct back although it ended the week with an up day.
On its 8-month chart we can see that silver backed off after hitting an adjusted "bullhorn" target - in last week's update we had targetted it at a trendline drawn across the early and late December peaks, but it exceeded that, so we then found that it had actually stopped at the trendline drawn from the November high. Now it is very overbought, as is evident from the intermediate MACD indicator at the bottom of the chart, so if the situation in the Mid East starts to cool, we could very easily see a substantial reaction shortly. However, we should remain aware that this situation is very fluid and if the problems in the Mid East intensify, leading to gold breaking out to new highs, then silver could break above the restraining trendline shown which would be expected to lead to a very steep ascent, but as set out in the Gold Market update, price and volume action in stocks is portending a correction that could be severe.
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