This Month in Gold – September 2011
JPM Eyes Gold at $2,500 by December
Financial Post – Prior to Standard & Poor’s downgrade of US sovereign debt, JP Morgan analysts expected gold to stay at or below the $1,800 an ounce level in 2011. Post-bombshell, however, that projection has been revised upward to $2,500. Analysts Colin Fenton and Jonah Waxman are encouraging their clients to buy commodities with an Asia, production, and inflation bias, and are counseling them to eschew those with a strong US or consumption link. Despite near-term headwinds for commodities as a consequence of global growth scares, the analysts foresee emerging market demand coming out of the dip with noticeably greater vigor.
Read Full Article>>
Chavez Recalls Venezuela’s Gold
Bloomberg – Venezuelan President Hugo Chavez, ever the contrarian, is moving sooner rather than later. Predicting (and surely hoping to expedite) the demise of the US dollar system, President Chavez this month issued orders to his government to repatriate the country’s $11 billion in gold reserves sitting abroad. He also said he will nationalize the country’s gold industry to “halt illegal mining and bolster reserves.” What to do with the bullion once it’s back home? Why, invest in emerging markets, of course. President Chavez is urging the Venezuelan central bank to diversify its international reserves – of which gold comprises approximately 60 percent – away from US institutions.
Read Full Article>>
The Nixon Shock
Bloomberg Businessweek – The year is 1971, and rather than disappoint the electorate with a recession and risk losing re-election, President Richard Nixon delinks the US dollar from gold, encourages money printing to paper over his problems, and thereby introduces the complex, volatile financial era of the present. In an informative, five-page investigative piece, Roger Lowenstein chronicles the issues and personalities surrounding the closing of the Federal Reserve’s gold window. “[Bankers] have become ever more apt to please politicians, deferring recessions at the risk of inflating asset bubbles… We see it now in the troubles of nations from Greece to Ireland to the U.S…This is Ben Bernanke’s unfortunate inheritance.”
Read Full Article>>
Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!
Related Posts
Made in America: The Dark Forces Promoting American Manufacturing
Whenever an election year rolls around, domestic manufacturing becomes a more central theme of discussion. Candidates from both sides, who seem to disagree on almost everything else, never waver in their commitment to auto manufacturers in Detroit and the steel industry. Republicans and Democrats never forget to remind the American public that they will try […]If 10-Year Yields Surpass 5%, Say Hello to QE (and Massive Inflation)
The wizards at the Fed and US Treasury have been forced to acknowledge that their “transitory,” inflation is, in fact, quite “sticky.” And with the inflation elephant now acknowledged by the circus of high finance, Treasury yields keep inching up, recently reaching 4.7% — the highest since November. The Fed is stuck: It needs to raise interest rates to tame inflation and […]California’s New Minimum Wage: A Cure that Exacerbates the Sickness
The solution to a problem shouldn’t make the problem worse. But apparently, California’s policy makers missed that memo. On April 1st, the state instituted a $20 minimum wage for fast food workers, the highest in the US. With California’s absurdly high cost of living, the policy appeared to make life more manageable for low-income residents. Unfortunately, as the adage goes, “If it sounds too […]$5 Wrench Attack: Bitcoin vs Gold in a Real Collapse
The monetary battle of the 20th century was gold vs. fiat. But the monetary battle of the 21st century will be gold vs. bitcoin. With Wall Street jumping into the game with bitcoin ETFs, a bitcoin halving recently splitting the block reward for miners in half, and both gold and bitcoin hovering near their all-time highs, it’s a great time for […]How Nvidia Uses Gold
What is Nvidia? If you’re a committed gamer the question may sound like nonsense. Nvidia, which was founded in 1993, is a tech company that makes GPUs and other products. It originally specialized in making products for the video game industry, that assisted in 3D rendering. If you were a committed gamer, you probably owned their products. If you weren’t, you might not have heard of them.
Leave a Reply