Posts Tagged ‘Central Bank’

The question begs to be answered, don’t you think?….

Helicopter Ben's Car Crash Helicopter Ben’s Car Crash


2014 is a year that will be a year of DRAMATIC change – for pretty much everyone, I believe. Please allow me to expand on this – just a little….or if you prefer, let’s just say that I’m happy to stick my neck out a little…or a lot if the situation at hand necessitates it.

VANUATU has a very good chance of putting down strong roots in 2014, roots that would propel it onto a path of greater self-determination. This can/should come from a number of areas such as the Vanuatu Government doing everything in its power, as a currently forgotten and/or to-date ignored Member of the WTO, to revive the kava export industry (Australia would be an appropriate start, methinks), continuation of the progress being made with regard to the legitimization of land ownership claims, planning and implementation of Vanuatu’s attractiveness as an IT-savvy and IT-friendly place within which to conduct an IT-related business, for instance – call centres for major off-shore corporations and financial institutions and the like.

Spot Gold Price 10 Years to 2/1/2014GOLD has been an absolute boon for Gold INVESTORS (Note the emphasis on “Investors”?). Its spot price has steadily deteriorated over the past two years or so thereby giving “dollar-cost-averaging” Investors (there’s THAT word again) the opportunity to make a mid-to-long-term killing.

Locally (Vanuatu and Australia), there’s a lot that can be said about the good, the bad and the ugly side of politics and bureaucracy. Some of it is refreshing, some disgusting, some appalling and some – just plain bloody unbelievable in its apparent untouchable temerity!

And finally, there’s the insane, the crazy, the weirdness or purely absurd and/or funny as hell.

So stay tuned for a mix of all of this in the year ahead – 2014 – the year of change! For better or worse? Well, to a very large degree, it’s all going to come down to what YOU do…or NOT do.

 A lot, I think…..

Gold Bull


“You have to be a buyer when people are non-believers. You have to believe in something based on data that says you’re right when the world will tell you you’re wrong because when the world says you’re wrong and you’re right, you know that the return will be outsized because no-one is there. It’s like buying gold stocks in 2000 which I did to a very large extent. The HUI index was at 35 and it went to over 600. It went up 1700% in eight years. And that’s because everyone was against it. It was like a killing field for an investor to go in and buy things cheap and I really believe it’s kind of a similar opportunity again today.

Personally, I think he’s “Sprott on”…….Read more here

belly laugh

Interesting commentary/update on Gold prices.

Why do so many people have it wrong?  It’s time to set the record straight.

vcm_s_kf_repr_259x194First, I am unashamedly – a “Gold Bug”.

“What’s that?” you ask.

“A person who believes that GOLD is a “safe haven” and a “store of wealth” no matter what its price is”.

Sound crazy to you? Perhaps this small selection of charts will help “show you the way” – if needed, that is, as I know some readers are “gold bugs” also.

Indices Charts to April 2013

The First Chart shows what happened in various markets in the 6 months leading up to the Lehman Brothers-led GFC (19th September, 2008). Where would you have prefer to have had your money invested?

The Second Chart shows the state of the same market prices 6 months after the start of the GFC. Where would you have prefer to have had your money invested?

The Third Chart  (going clock-wise) shows the markets’ performances since GFC dayWhere would you have prefer to have had your money invested?

Finally, the Fourth Chart shows how these markets have fared over the past 5 years. Where would you have prefer to have had your money invested?

I have already admitted being a gold bug. Still, I also believe that there’s a place for investing in high-quality, well-diversified dividend-paying stocks in one’s portfolio but they need to be companies that generate significant cash-flow regardless of the state of the economy.

Right now, we have a gold and silver “bust” taking place…..or so it may seem.

Goldman Sachs, a HUGE /investment bank/financial institution, said “Sell” gold and….that’s exactly what the “mug punters” have done. Gone out and swapped their gold for paper money, money that’s being being printed “faster than a speeding bullet” by Japan, America and Europe…..and China. Go figure.

Meanwhile, Goldman Sachs and other firms like it make a killing from their short positions on the gold price while providing opportunities for Central Banks (mainly) and their “mates” to buy up gold at “cheap” prices.

All the signs are pointing to a near-future GFD (Global Financial Disaster) just as the signs were there for the GFC (Global Financial Crisis).

So what’s the difference between a “Crisis” (Sept. ’08) and a “Disaster”? 

Well, a crisis you can liken to a small isolated town in the middle of a gigantic flood. The people of the town are fortunate in that they have a strong levee surrounding the town to protect them. However, these floods have now brought the flood waters level to the very lip of the levee. That is a “Crisis”. A “Disaster” is when the heavens open up with a further record deluge of rain and the levee gives way, flooding the town.

Right now, the financial floodwaters are lapping at the lip of the levee. Where would you prefer to have your money invested?