Thursday, December 11, 2014

Are We About To See A Historic Melt-Up In Gold & Silver?

Are We About To See A Historic Melt-Up In Gold & Silver?

Today one of the wealthiest people in the financial world stunned King World News when he said we may be nearing a point where we see a historic melt-up in gold, silver, and the mining shares. 


 Rick Rule, who is business partners with billionaire Eric Sprott, also discussed exactly how this historic advance will unfold and why the up-moves will be so incredibly violent

Eric King: “Rick, are we finally seeing the more than 3-year bear market in gold and silver coming to an end?”

Rule: “You and I both believe in higher precious metals prices, Eric, so it’s tempting to say yes. Bear markets end with capitulation selloffs. I think we were on the verge of a capitulation selloff six weeks ago but we didn’t get one. The questions is, do we have to see a capitulation selloff this time? The answer is, of course not

“I said to my Chinese friends that ‘The U.S. dollar is in one way shape or form a lie.’ And they said, ‘Yes, but it’s the most liquid lie on the planet, and from that point of view we are attracted to it.’

When the confidence in the U.S. dollar begins to wane, and I say when, not if, then precious metals will shine. We may be seeing a preview of that today. But if you had bought precious metals in rubles, Eric, or yen, or the Brazilian real, you would be very happy today. 

 For many people who bought them in dollars this has created frustration because of the strength of the dollar vs other fiat currencies. Gold doesn’t have to win the war against the dollar, it just needs to lose it less badly for KWN readers not to be just happy, but ecstatic.”

Eric King: “In this secular bull market, if we are seeing an end to the cyclical bear market in gold, silver, and the shares, how do you see the advance unfolding off the lows? Will it give people time to get in?”

Rule: “I definitely believe it will. I believe that without a capitulation selloff, the bottom that we see will resemble the market that we saw from July 2013 - February 2014. That is a gradual saucer-shaped recovery, with higher highs and higher lows but plenty of volatility to scare people and also delay investment in the sector. And it may be that we are back into that phase after having been scared to death recently.

Certainly without the capitulation selloff what you will see is a long consolidation period that’s extremely choppy and volatile. And that has been, in my experience in the last three cycles, eventually greeted with a melt-up. 

That’s the only way I can describe it if you remember 2002, Eric. This is where, finally, all of the sellers get used up and the metal gaps higher and the shares gap higher. I’m not saying that past has to be prologue but that’s what has happened the last few times we have been in a similar position.”

Eric King: “You are talking about some pretty violent upward moves.”

Rule: “Yes. It’s funny that we have been, in effect, punished in this market since 2012 and subjected to several violent down-moves, so we forget that the thing which attracted us to this sector originally was the fact that in recovery this market exhibits very violent up-moves.

Remember, people’s expectations of the future are set by their experience in the immediate past. And everybody’s experience in the immediate past going back to the tail end of 2011 has been negative. What that means is that our expectations are all negative. 

 What moves a market is a market that exceeds expectations, and expectations for the mining industry are pathetically low, which means we will exceed those expectations.

And when we exceed those expectations the market will move significantly higher and perhaps very violently to the upside. If you remember back to the 1993 melt-up, or the 2002 melt-up, or going back even further to the melt-up of the late 1970s, which was the most violent melt-up I’ve ever experienced in my life, these are truly spectacular events. If past is prologue, and it normally is, this will happen again.”



Wednesday, December 10, 2014

Swiss Franc No Longer a Safe Haven and a Possible Bottom for Gold

Peter Schiff responds to the results of the "Save Our Swiss Gold" initiative this past weekend. He explains why he thinks it is bullish for gold and might have even marked gold's bottom.










0:17 – “Save Our Swiss Franc” would have been a more accurate description of the Swiss gold initiative.



0:59 – Switzerland used to have more than 40% of its reserves in gold and was very prosperous.



1:47 – The Swiss gold initiative was a threat to the powers-that-be, because it limited the ability of the Swiss National Bank (SNB) to create inflation



2:35 – If the initiative had passed, Switzerland would have been an example of a strong economy in a sea of European inflation.



3:34 – How is it crazy to have only 20% of your assets in gold, but sensible to have 100% of your assets in fiat currencies?



4:30 – The Swiss originally didn’t want to adopt the euro, but now they’ve embraced a de facto euro standard.



5:30 – Gold and silver dropped dramatically after the vote, which was surprising since no one had really expected the initiative to pass.



6:23 – Gold and silver recovered their losses quickly once the United States started trading.



7:10 – Peter believes the “no” vote is more bullish for the long-term price of gold.



7:43 – If the Swiss had adopted the referendum, it would have slowed down Swiss money printing and Swiss inflation.



8:28 – When the world realizes the United States is going to return to quantitative easing, the Swiss franc will no longer be a safe-haven option. This would mean greater demand for gold.



9:36 – If the SNB won’t be buying gold on behalf of its people, the Swiss will buy gold individually to protect their purchasing power.



10:49 – Looking at historical actions of central banks, there’s a chance that gold’s low price on Sunday could end up being gold’s bottom.

Saturday, August 30, 2014

2015 Chinese Panda Silver and Gold Coins No Longer Display Weight



Commencing from 2015, according to the People’s Republic of China national’s “Measurement Law” and the People’s Bank of China’s requirement, the gold and silver coins will be issued under the legal measurement of Metric System, i.e. grams, Kilogram and etc. 

The issuance of the gold and silver coins under the measurement of the Imperial System “Ounce” will be discontinued. Furthermore, from 2015 onward, the weight of the Chinese Panda Gold coins will no longer be stated on the coins. 

This has made the 2014 Chinese Panda Gold Coins with “Ounce” to be even more significant for collection.

Since Bank of China (Malaysia) Berhad’s announcement for the pre-booking on 21 May 2014, the Chinese Panda Gold Coins was overwhelmed by the market, registration has been increased rapidly. 

In order to fulfill customers’ needs, Bank of China (Malaysia) Berhad has made a soft launching on 6 June 2014 for the registered customers. And now, the Bank is proud to announce the official launch for the 2014 Chinese Panda Gold Coins to the public. 

 

The Chinese Panda Gold Coin is a legal tender Coin issued by the People’s Bank of China for 33 years continuously. It has the investment and memorable value, and potentially high collectible value. 

Being very unique in the coins mintage world, it has been awarded both locally and overseas recurrently and appreciated by the collectors from all the countries. The theme of the Chinese Panda Gold Coins is the national treasure of the People’s Republic of China, setting the bamboo as the background well demonstrated the harmonious and happy life.

2015 Panda Changes - Summary:

2015 Gold / Silver Pandas will no longer have the weight stamped on the reverse. It will be Panda motive as it is currently but without stating its weight.

The China Mint will be marketing the Panda Bullion Coins in grams and kilos (Kilograms) instead of ounces. 

At this stage it is unknown if they will introduce new sizes such as 25/50/100/1000 gram or stay with the current 3.1, 31.1g, 155.5g, 311g 

In order to better reveal the lively and playful character and the black and white colour of the panda, designers using the white and black effects that generated from the glossy and dark appearance of the gold refraction and reflection to invent the intaglio refraction method, at the same time using the drum opposite sandblasting technology to make the black and white colour of the panda become more three-dimensional.

Welcome all to visit any of Bank of China (Malaysia) Berhad branches to place your order.