Paper Gold vs. Physical Gold

     From time to time I've encountered people who tell me they have been buying gold stocks (paper gold) for a number of years and see no reason to join me in purchasing physical gold since they are the same thing.  They couldn't be more wrong.

     Paper gold to date has sold 300 ounces for each ounce of physical gold in existence.  The derivative bubble created by paper gold is 1.5 quatrillion. So when those people were to decide to cash out their certificates, they will discover they hold a lot of scrap paper. 

     Paper gold is about as valuable as paper currency. As cycle analyst Bo Polny says, currency requires faith and confidence. Take away the faith and confidence and you're left with so much paper. Physical gold requires no faith and confidence to maintain the value it has had for over 6,000 years. 

     Funny thing about derivative bubbles, when they burst they leave only paper debris behind.

     Think it's time to consider changing you paper for physical gold? It's up to you.

     Read. Learn. Take defensive action.

        

  The Path To Gold Security

     

The Race For Gold Ain't The Olympics

     Countries have competed for gold since the modern Olympic games began in Athens during the Summer of 1896. The race for gold became so intense the governing committee allowed professional athletes into the competition in 1986.

Chariots of Fire Theme

     Today's race for physical gold has China in the lead. According to Frank Holmes, the CEO of US Global Investments, due to the shaky Chinese stock market, the Chinese people have consumed 90% of the total annual global output of gold. 180 tonnes from imported from Switzerland marks an 86% increase since December 2014. India, the Middle East, and other Asian markets have upped their gold by 21%. 

     Now with Deutsche Bank set to make what happened in 2008 to Lehman Brothers look like child's play, expect the Germans to step up their game for gold. Even without German participation forecasters agree this level of demand could drive the price of gold to $1400 an ounce. Gold now sits at $1200.

     Race ya to some gold. What do you say?

Your Starting Line

It's Been Little Brother All Along

     Big Brother is watching --we hear it daily. The usual protest against having to register something like guns, refugees, sex offenders or Wall Street deals made with politicians or the Fed in private.

     Privacy? Like a private teenager telephone conversation with a boyfriend or girlfriend or secret conversations during a sleepover about a party where there will be booze and sex and out of nowhere a voice exclaims, I'm gonna tell Mom! 

     Think of the Internet as the new mom. Everywhere the invisible and ignored take in whatever is being discussed and tells Mom through social media.

     I didn't know is no longer an acceptable excuse. Pay attention to all the little brothers and sisters. They know things and they tell.

     Read. Learn. Take action. It's up to you.

Read This; I Have Nothing To Add

http://www.telegraph.co.uk/finance/economics/12141369/Dollar-tumbles-as-Fed-rescues-China-in-the-nick-of-time.html

Your Wealth Is Not A Matter Of Faith

     'Keep the faith.' 

     'It all works out in the end. If it hasn't worked out it isn't the end.'

     

     Politico-finance-speak sounds like a montage of greeting cards. Pablum to distract us from what we really need to know; from what we really need to do.

     As I said in the beginning of this blog, my mission is to inform and encourage action. When I read this article from CNN MONEY I knew this was news you need. It's about world markets down again. It's about world markets down again because the price of oil is down again. The US Dollar is backed by oil. Other countries' currencies are based on the US Dollar. See what's happening?

     Your wealth is not a matter of faith. Your wealth is a matter of action inspired by awareness. 

     Your wealth is up to you.

     Read the article from CNN, then watch the video THIS MAY BE OF INTEREST. The next step is to use the third link to begin protecting your savings with gold. 

     Three things that will change your life, or not. It's up to you.

http://money.cnn.com/2016/01/19/investing/world-markets-oil/index.html?iid=ob_quote_footer&iid=obnetwork

THIS MIGHT BE OF INTEREST

Sign Up Here To Begin Saving

The Rein-In Spain

     Every tragedy brings with it a lesson to prevent another tragedy from occurring. Case in point: Spain's banks. In 2011 seven of Spain's banks sinking under the weight of bad debt merged to form Bankia Caja Madrid. Two years later BCM was taken over by the Bank of Spain after posting further losses of 3.3 billion euros.

     Sound familiar? Yesterday I told you about the Italian plan to take similar action to create a so-called bad bank to take on all of the bad debt. It didn't work in Spain. It certainly didn't work in the US, in fact such moves brought about the bursting of the housing bubble we're still living with, and I don't give it much of a chance of working in Italy. Keep in mind the Italian plan comes after depositors with accounts of 100,000 euros or more lost everything. The confiscation wasn't enough.

     Someone once told me the definition of insanity is to persist in repeating an action with the expectation of a different result. Could this be a possible example of that phenomena?

     The Spaniards came up with a different idea. Their idea comes under my heading everything old is new again. The Spanish savings banks are returning to their roots, by growing their pawnshop business according to Santiago Gil, the director of Caja Madrid's pawnshop The Monte de Piedad de Madrid. A recent auction brought in 909,000 euros.

     What are they selling? GOLD. The savings banks of Spain are buying and selling gold. Jewelry, coins; it's all gold.

     Tell me again why you don't think gold can enhance your wealth? 

     

     Read about world financial events.
     Learn how gold can protect your hard earned savings.
     Take action to convert your paper into gold.

     Your future security begins here:
     http://www.thismightbeofinterest.com/

     After you watch the journey continues here:
     Become A Karatbars Affiliate

     It's up to you.
   
   
   
     

     

'Stuck In The Middle With You'

     I know it's a cliche to say the more things change, the more they stay the same. Another one along the same line says everything old is new again. The 1972 Stealers Wheel song 'Stuck In The Middle With You' comes to mind with the news of banks resorting to negative interest rates and bail-ins. People we don't know continue to make business decisions people like us are forced to pay for. The media would like people to believe bank and stock market failures are new, but such events span decades.
     The succession of costly bailouts across Europe resulted in the establishment of the EEC and the euro, a fiat currency backed by nothing but debt. This limited partnership of governments was designed to lower the risk and cost of economic failures by spreading such costs across most of the world economies. The alliance also allowed countries like Cypress and Greece to live beyond their means. The citizenry of these two countries are still living with the painful effects caused when these governments went into default.
     More recently, there was news of the four largest and oldest banks of Italy experiencing difficulty to the point of taking control of depositors' money in an attempt to bail-in salvation. Yet, last week, Italian Prime Minister Matteo Rinzi travelled to Berlin to visit with Ms. Merkel.
   

Update On Italian Banks In Crisis

     Part of Italy's new plan is to create bad banks into which all the bad debt will be transferred, bundled, and resold. In the US we know this as The Big Short. Not so new; not so viable. But certainly this is different, right?

Il Grande Breve

   
      Last week also saw Japanese banks turn to negative interest rates. Business leaders are said to disagree with aspects of this old as new recovery plan as it trims their profits. So much for Japanese Zen Banking.

The Japanese Backstory

     Just for the record, I didn't coin the phrase Japanese Zen Banking. That honor goes to the New York Times from 1998. Even the news of Japanese negative interest rates turns out to be something old made new again.

Negative Zen Japanese Banking

     As the Stealers Wheel song says:

 Clowns to the left of me,

        Jokers to the right, here I am,

       Stuck in the middle with you.

Catchy name for a band or a bank, don't you think? Stealers.