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A Run On Gold And Silver Is Starting

Scorpio

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#1
A Run On Gold And Silver Is Starting
Dave Kranzler




The run has started early in Germany: “Gold and silver in the form of coins and bars are experiencing an enormous surge in demand at German precious metals dealers” (link). This is to be expected but the Germans, more-so than any other EU country (Switzerland is not a formal member of the EU), understand the wealth preservation/currency devaluation attributes of gold and silver.


But don’t mistake buying GLD and SLV for buying and self-safekeeping physical gold and silver. The integrity of GLD and SLV is highly questionable. I wrote this in a 2009 research report on GLD:


“A close reading and analysis of the GLD Prospectus, however, reveals that investing in GLD is drastically different from owning gold…Ultimately, the value of the GLD Trust the potential to experience a substantial loss in value. Under certain circumstances GLD could be worthless. As an investment advisor, I do not recommend that anyone use GLD instead of buying physical gold because it is not an investment in gold and the legal structure of GLD is such that unsuspecting investors could end up losing all of their money.”


In this week’s episode, Chris (Arcadia Economics) and I discuss why the prices of gold and silver are imminently heading much higher and why you should avoid paper investments in GLD and invest in physical gold and silver that you safe-keep yourself.


Buying physical gold and silver – not GLD or SLV – should be your first priority in seeking shelter from the eventual fate of the dollar. But mining stocks offer the potential wealth enhancement as well “optionality” upside to the prices of gold and silver. If you would like some ideas for investing in mining stocks, take a look at my Mining Stock Journal.





Dave Kranzler spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, he traded junk bonds for Bankers Trust. He earned a master’s degree in business administration from the University of Chicago, with a concentration in accounting and finance. Currently he co-manages Golden Returns Capital, a precious metals and mining stock investment fund based in Denver. He writes a blog and offers in-depth, unique research reports to help people understand and analyze what is really going on in our financial system and economy:​








http://www.silverbearcafe.com/private/12.20/run.html
 

Goldhedge

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#3
But don’t mistake buying GLD and SLV for buying and self-safekeeping physical gold and silver. The integrity of GLD and SLV is highly questionable. I wrote this in a 2009 research report on GLD:

“A close reading and analysis of the GLD Prospectus, however, reveals that investing in GLD is drastically different from owning gold…Ultimately, the value of the GLD Trust the potential to experience a substantial loss in value. Under certain circumstances GLD could be worthless. As an investment advisor, I do not recommend that anyone use GLD instead of buying physical gold because it is not an investment in gold and the legal structure of GLD is such that unsuspecting investors could end up losing all of their money.”
People read the prospectus like they read software terms of service agreements
 

Buck

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#5
This is to be expected but the Germans, more-so than any other EU country (Switzerland is not a formal member of the EU), understand the wealth preservation/currency devaluation attributes of gold and silver.
LOL

yeah yeah yeah...the Germans now suddenly 'know so much about gold', LOL

if i had a dime for every country that, for the sake of a storyline, suddenly become 'experts in the world of metals, especially gold'


yeah right

drama built into every sentence...that's our journalism these days
 

Cigarlover

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#6
People keep expecting inflation and hyper inflation. That day isn't today though. Theres a few reasons why.
The US economy is fragile at best. GDP should be in serious contraction. 20 million about to be evicted or lose their homes. Seems deflationary. 2k per person may land them on their feet in a new rent or job but not going to provide any inflationary pressure.

A billion dollar stimulus package is about 1/3rd for the US and 2/3rds for the rest of the world. They have to dump dollars around the world to promote the one world currency.

To me there seems to be 2 main sectors in the US. The MIC and welfare. Welfare provides basic needs to lots of people. Certainly not inflationary and the MIC provides weapons that are used overseas. Congress has decided to back the MIC for the purpose of jobs at home. It's become such a large portion of GDP that to undo it would be hard. I don't agree with it an I think they could back other sectors like infrastructure, science and space and still create high quality jobs but thats the road they have decided to go down. If we spent 800 billion last year and only 700 billion this year, that seems deflationary to me.
 

Uglytruth

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A billion dollar stimulus package is about 1/3rd for the US and 2/3rds for the rest of the world. They have to dump dollars around the world to promote the one world currency.
Well said.
 

Uglytruth

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#9