Friday, February 18, 2011

Cocoa reaches peak on Ivorian turmoil

by Reuters

Cocoa futures climbed to their highest in more than a year on Friday after Ivory Coast's incumbent leader decreed major banks suspending business in the top cocoa grower would be nationalised. 

Arabica coffee was largely flat, just below the nearly 14-year peak touched earlier, with prices underpinned by further roaster buying, while raw sugar dipped ahead of Brazil's harvest but remained in a tight range.

Ivorian incumbent Laurent Gbagbo said the state would take control of all banks that had suspended operations in the West African state earlier this week, a move that turned the nation's post-election crisis into financial meltdown.

“If people can't withdraw money or pay money, it's going to have an effect on the cocoa farmers,” a broker in London said. 

“It's a mess, and until they figure out who's in charge and it gets sorted, the market is going to stay steady.”
ICE benchmark May cocoa futures climbed $12 or 0.4 percent to $3,450 a tonne at 14:21 SA time in thin volume after earlier reaching $3,470, its highest since Jan. 21, 2010. 

Liffe May cocoa was down 2 pounds or 0.1 percent at 2,230 pounds a tonne, below its six-month peak of 2,269, pressured by a 2-week high in the pound. 

“Volumes are poor in both markets because people are too scared to do anything,” the dealer said. 

Cocoa prices on ICE have rallied more than 20 percent since international sanctions and a cocoa export ban have tried to squeeze Gbagbo of funds and force him to stand down after a November 28 election the U.N. said he lost. 

Some dealers said cocoa prices were overbought, as the sanctions and export ban caught only the tail end of the bumper harvest in Ivory Coast, which grows a third of the world's crop. 

However, if Gbagbo remains in power and the cocoa export ban is extended past Feb. 23, hitting the mid-crop, more cocoa will be stranded in the country and start to rot at warehouses, analysts said, hurting the projected supply surplus. 

“The stand-off ... has not much affected exports of the Ivory Coast's main crop, but the forthcoming mid crop could be a different matter,” ABN AMRO/VM Group said in a report on Friday. 


Arabica coffee prices inched up to their highest in almost 14 years, and robusta coffee hit a fresh 2-1/2-year peak, as limited supplies of quality beans since at least June 2010 have forced roasters to buy despite the high prices, dealers said. 

“There's good buying coming in terms of what roasters are doing, and there's some hedging getting lifted,” a London-based trader said. “And with robusta so much cheaper (than arabicas), people want to extend their cover there.” 

ICE May arabicas fell 0.35 cent or 0.2 percent at $2.6850 per lb at 14:24 SA time, after touching $2.70 a lb, their highest since May 1997. 

Liffe May robusta coffee was up $29 or 1.3 percent at $2,334 per tonne after earlier rising to $2,358 a tonne, its highest since July 2008. 

Arabica prices have been boosted by a third straight year of below-average harvests in Colombia, top producer of high-quality washed arabica beans, with robusta prices also lifted as some roasters substitute the cheaper bean into their blends. 

Raw sugar futures fell further from the 30-year high hit earlier this month, trading in a tight range, as prices moves remained choppy and markets were pressured ahead of next month's harvest in top grower Brazil.
ICE March raw sugar was down 0.24 cent or 0.8 percent at 31.02 cents a lb at 14:24 SA time, below its 30-year high of 36.08 cents a lb from Feb. 2, while London May white sugar was down $6.60 at $720.10 per tonne. 

“We failed again to break 32 cents yesterday and it seems the chart technicians' indicators are causing concern for the bulls,” Sucden Financial said in a market note on Friday. 

New York commodity markets will be closed on Monday in observance of the U.S. President's holiday. - Reuters

Corn rally may crack livestock farmers first - CF


Livestock farmers may be the first to crack from high corn prices, CF Industries said, as it added its voice to observers predicting US corn sowings of 92m acres this year.
The fertilizer group forecast that a three-year run of rising US corn consumption would end in 2011-12 at a little over 13bn bushels, constrained by high prices, supported by tight supplies.
The stocks-to-use ratio of 5% for corn at the end of 2010-11 was "incredibly low, and an uncomfortable level for US agriculture and food supplies", Steve Wilson, the CF chairman and chief executive, told investors.
The stocks-to-use ratio is a key measure of the readiness of a crop's supply, and therefore of the price it is likely to command.
Historical precedent
The last time crop prices spiked, in 2007-08, the livestock sector "was the first area where some stress showed up", Mr Wilson said.
CF Industries crop forecasts, 2011-12 and (preliminary USDA estimate)
Corn sowings: 92m acres, (92.0m acres)
Total area under primary crops: + about 10m acres, (+10.0m acres)
Corn stocks-to-use ratio, end 2011-12: 7%, (8.4%)
Data for US crops only
Information he had seen suggested that livestock producers were already "not consuming as much feed as they were six months or a year ago".
Further insight into the sector will be gained later when the USDA unveils monthly data for feedlot dynamics, with analysts expecting a small increase, of 3.6%, in cattle placed on feed.
Mr Wilson added that corn ethanol output was also an area to "keep an eye on", with producers bouncing between being "modestly cash positive and modestly cash negative".
US corn exports looked set for a marginal increase in 2011-12, a CF presentation showed.
'Stars and planets aligned' 
The forecasts echo to some extent preliminary data for 2011-12 released by the US Department of Agriculture earlier this week, showing a drop in feed use, and small rises in both ethanol and exports, although factoring in updated official estimates for this season for comparison gives a less clear picture.
CF, like the USDA and Deere & Co, said that American growers would raise corn sowings by 3.8m acres to a four-year high of 92m acres.
Indeed, on CF calculations, returns over variable costs from growing corn were $200 an acre higher than those of soybeans.
And with fertilizer costs expected this year at 14% of expected corn revenues, compared with a 10-year average of 19%.
"Fertilizer is eminently affordable. In fact, it is highly desirable for the farmer to maximise his yield. We think, frankly, all the stars and planets are aligned to support corn planting," Mr Wilson said.
Corn, as a fertilizer hungry crop, is an especially important indicator of the outlook for nutrient groups.
Market outlook 
Mr Wilson added that, with a scramble by farmers to raise production, it was "a great time to be a nitrogen and phosphate producer".
CF forecast that fertilizer markets would "remain strong through the spring season, with high crop prices continuing to set the tone".
CF late on Thursday unveiled earnings of $200.3m for the October-to-December quarter, equivalent to $2.78 per share, compared with $51.4m in 2009, with profits lifted by contributions from Terra Industries, the nitrogen group acquired last year, and revived market conditions.
CF shares stood 1.9% lower at $144.97 in morning trade in New York.
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Global Investing Strategies 2011, U.S. Stocks, Dollar, Inflation and China

Keith Fitz-Gerald writes: If you're a regular Money Morning reader, then you know that, d uring my appearances on national television or when I'm doing media interviews around the world, I frequently participate in something called a "lightning round " - a rapid-fire interview technique in which the announcer (and sometimes even audience members) run through a list of questions in rapid-fire order.

It's a technique that really puts you on the proverbial "hot seat." But I actually enjoy it: It forces you to think on your feet - which appeals to the former trader in me - and allows you to run through a bunch of topics in a very short stretch. In one way or another, each of these topics deals with global investing strategies.

I thought you might enjoy - and perhaps even find useful - a "highlight reel" of some of the best lightning-round questions that I've received in recent weeks, both in front of the camera and during the informal discussions that follow the presentations and broadcasts. 

And we'll start with the topic that seems to be one of the most popular global investing strategies topics right now - gold.

Areas to Watch
Gold: I'm still looking for gold to reach $2,500 an ounce - but after a brief pullback. Not only are many people beginning to seriously accumulate the "yellow metal," but so are many countries, as one of the truly viable alternatives to traditional currencies and a means of diversifying their sovereign debt risk.

Silver: The "other" precious metal had been undervalued relative to gold, so it's been on the move in order to catch up. The relationship between gold and silver is more balanced now, so I'm expecting a shorter-term pullback here now, too. Some people are accumulating silver with the expectation that it will act like gold. But I think the real story that many investors are missing is that silver is used much differently than gold. And that means there's simply more demand for silver-intensive processes.

Natural Gas: We've got a lot of it here in the U.S. market. But the challenge we face, like many other nations, is being able to move it around ... to where it's needed. So even though I believe usage is going up and prices remain low, there's nothing there to immediately move markets. I'd rather concentrate on pipelines and LNG carriers: They get paid to transport gas - even if prices don't take off.

U.S. Stocks: If you're reading this, congratulations are in order: You've just witnessed history being made. At this point we've seen the fastest doubling in the Standard & Poor's 500 Index since Standard & Poor's (NYSE: MHP) began publishing the S&P 500 back in 1957 - a blisteringly quick 23 months off the March 6, 2009 bear-market bottom. The median rally in stocks since the early 1920s coming out of a recession is about 100%. However, the average rally over the same time period (depending upon which research you look at) is about 123%. 

But here's a key consideration: That increase of 100% to 123% generally unfolds over a much longer timeframe than the rebound that we've just witnessed.

So what made the difference this time around?

It was the U.S. Federal Reserve and - to a lesser extent - the world's other central bankers, who have combined to inject massive (read that to mean "record") amounts of liquidity into the global financial markets.

It's as if the central bankers are saying that they're happy to have stock prices zoom higher - which is great, except that it creates a whole new set of problems ... like new speculative financial bubbles.

I have to say here that the only market rallies that come anywhere close to the current one in terms of speed, magnitude and intensity are those of 1932 and 1935, which followed the "Great Crash" of 1929 and which were the result of efforts to shake off the after-effects of the Great Depression.

Both of those two gave back nearly all of their gains.

In terms of the U.S. market, the key takeaways are:

•The easy money has already been made.
•And you've got to use very tight "protective stops" at these levels to protect your gains.

The Fed is trying to keep the bear at bay ... but there are bear tracks everywhere. When the austerity debate really gets rolling, you'll really want to be careful - the bears can be very sneaky especially when they're behind you. 

Investors and interviewers alike have asked me : "Should we take a lot of our money and put it into faster-growing overseas markets because they are growing and seem less risky?

Two terms in that question - "a lot" and "less risky" -- really concern me. You should never, ever concentrate your assets to the point you lose sleep over them. What constitutes "a lot" and what determines different levels of risk varies by a big margin from one person to the next. The global financial markets will create more than $300 trillion of new wealth in the next 10 years, and about 60% of that will come from outside such established economies as the United States, the Eurozone and Japan. I think it's only logical to have exposure to those markets as part of a carefully balanced global approach that's based on discipline, high income and a "safety-first" mindset - and not on "timing."

Overseas Markets: These are now "must-have" holdings. And if you're like many U.S. investors, who are just easing their way in, the best place to get started is with companies that I like to refer to as the "glocals." That's not a typo. That's the term that I use to describe large, U.S.-based multinational corporations whose global operations include a local presence - especially in the crucial markets of China and Greater Asia. 

Most of these companies are publicly traded, and have their shares listed on the S&P 500 today. Also, people forget that 40% of the S&P's earnings already come from overseas. And that percentage is growing every day.

If you are more aggressive, and already have a solid portfolio in place, it may be appropriate to more-directly invest in those local markets, using some combination of local companies, mutual funds or exchange-traded funds (ETFs). Fast- growers such as Vietnam, much of South America, the Asian Rim and, of course, China come to mind.

Key Issues
The China "Bubble:" I get this question over and over: "Is China a bubble?"

And here's how I answer.

China isn't a "bubble economy." But it is an economy prone to bubbles. At first blush, it may seem like I'm splitting hairs . But there's actually a vast distinction between a "bubble economy" and "an economy prone to bubbles." 

If you are formulating your own global investing strategies right now, this is a topic that's crucial to come to grips with. 

Right now, China is where America was back at the dawn of the Industrial Revolution, and into the 1800s. Development is highly concentrated in the coastal regions, the financial system is maturing and the country's economy is characterized by rapid growth across the board. And everything - from intellectual property to real estate values - is under tremendous pressure ... to grow. So there are some real parallels. China is not going to stop growing anytime soon nor is it going to fail. But it is likely to have some hiccups...again, just as we did with two world wars, the Great Depression, 20 or so recessions and all manner of boom-and-bust cycles. Some of those hiccups will be quite wrenching in nature. 

The key will be to "follow the money" into the best profit opportunities. And no matter what happens, there will always be opportunities - if you know what to look for.

I am convinced that China will affect every asset class on the planet - even if only indirectly - for the rest of our lives. I am also convinced that it represents the single-greatest-wealth-creation opportunity of our time, which is why I have spent a good portion of my life and career in the Pacific Rim - studying, participating and actively investing in related markets.

The Greenback: When I'm talking about the U.S. dollar, many words come to mind. "Junk" is too strong a term here, but we're darned close by many standards that have been applied to other countries - notably many in South America - in decades past. The only question is this: W ho is going to look in the mirror and be the first to announce that "the emperor has no clothes."

No country has ever bailed itself out by taking the path that we're following right now - not ever. But that doesn't mean our leaders won't try and that we won't have short-term success. But what will be the cost? Longer-term, the sloshing sound you hear "Inside the Beltway" is our wealth flowing out to sea, being carried away by the tides of financial history.

Inflation: It's already here - and with a vengeance. The government statistics are pure poppycock, which is why I feel like I'm getting mugged every time I go to the grocery store. You probably do, too. For example, in January 2009, the average price of a gallon of gas was $1.83 per gallon. Today it's $3.13, an increase of 71.09%. Sugar cane has risen from $13.37 to $35.39 per pound, a staggering 164.7% surge. Medicine, services...they've all gone up.

This is not good considering real median household income has dropped from $50,112 in 2008 to $49,777 in 2009, and may drop further when 2010 data is released. Long-term unemployed figures reflect a 146.2% increase. 

Are these things bad?

Depends on your perspective. As I tell investors repeatedly, chaos is merely opportunity in disguise. You can duck your head in the sand and pretend it isn't happening - as many investors are doing right now - and I'd be hard-pressed to blame you. Or, you can do what my subscribers and I are doing, which is to actively build our wealth. We're enjoying a lot of success. This is just what the Rothschilds did, when they built their legendary wealth out of the European chaos of centuries past.

Put it this way...just because people are frozen by government incompetence, rising inflation, higher taxes, chronic high unemployment and a real estate market that won't bounce back for decades, your money doesn't have to be.

Continue reading this article >>

Copper Pushing Against Long Term Channel Resistance

New uptrend highs in Copper have been seen in 2011 and the next interesting long term resistance has now been reached. We await reaction around here, looking for bull fatigue clues on the Daily chart.

The uptrend is currently pushing against resistance from the bull channel top projection around 4.6500.
We stay on the lookout for resistance here, but a successful break through would turn attention to higher targets such as the 5.0930/5.1070 area, a Fibo projection and equality target (2009/2010 upmove extended from the 2.7250 Jun-10 low).

The bull channel top at 4.8500 offers current resistance as initial speculation creeps in that the current chart structure could be hinting at possible bull fatigue.
In this regard note a negative divergence beginning to appear on the daily RSI momentum indicator.
That said a break below the channel base at 4.3400 is needed to provide an early bear sign, with a break/close below the 4.2080 25-Jan low to back this up. A better pullback phase may well get underway 

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Our Ninja System Take Good Profit On eMini Russell

Dopo qualche piccola perdita, il nostro Ninja System ha preso profitto su un buon trade a rialzo su eMini Russell, chiudendo la posizione sugli attuali massimi di giornata. Ninja System sta guadagnando molto bene anche sugli altri trades attualmente aperti a rialzo su eMini S&P, Gold e Crude Oil. I risultati storici di Ninja e di alcuni altri nostri trading systems sono a disposizione al seguente link:

After some small loss our Ninja Systems has taken a good profit on buy trade on eMini Russell, closing position on the current high of the day. Ninja System is gaining very well also on other long trades that are currently open on eMini S&P, Gold and Crude Oil. Historical results of Ninja and our some other trading systemsare available at the following link:

Material in this post does not constitute investment advice or a recommendation and do not constitute solicitation to public savings. Operate with any financial instrument is safe, even higher if working on derivatives. Be sure to operate only with capital that you can lose. Past performance of the methods described on this blog do not constitute any guarantee for future earnings. The reader should be held responsible for the risks of their investments and for making use of the information contained in the pages of this blog. Trading Weeks should not be considered in any way responsible for any financial losses suffered by the user of the information contained on this blog.

Survivor Trading System Results - Trades of 17 February

I trades di Survivor System del 17 Febrraio. I risultati storici di Survivor e di alcuni altri nostri trading systems sono disponibili al seguente link:

Trades of Survivor System on 17 February. Historical results of Survivor and our some other trading systems are available at the following link:

Material in this post does not constitute investment advice or a recommendation and do not constitute solicitation to public savings. Operate with any financial instrument is safe, even higher if working on derivatives. Be sure to operate only with capital that you can lose. Past performance of the methods described on this blog do not constitute any guarantee for future earnings. The reader should be held responsible for the risks of their investments and for making use of the information contained in the pages of this blog. Trading Weeks should not be considered in any way responsible for any financial losses suffered by the user of the information contained on this blog.

High Heating Oil Prices Continue to Drain Wallets in the Northeast


Bitter cold and repeated heavy snowstorms helped make winter in the Northeastern U.S. particularly brutal this year. Adding to the chills were soaring prices for heating oil that are likely to be the highest on record.

By the time the six-month-long winter heating season is over, the average homeowner in the Northeast will have laid out $2,431 for fuel to fire boilers and furnaces, Reuters reported, citing data from the U.S. Energy Information Administration, which provides forecasts of energy costs. The amount is about $200 more than the Energy Department predicted in October -- and almost $500 more than the average just a year ago.

Temperatures were indeed colder than average in December and January, but that's not the source of the high price for heating oil. "[R]ising oil prices, not colder weather, have been the primary cause of the increase in forecasts of average winter season heating expenditures for households heating with oil," the EIA said in its statement.

The price of heating oil rose to $90 a barrel this month, up from $78 in October, Reuters noted. That rise pushed the average retail price for residential heating oil to $3.59 a gallon this week, up 73 cents from a year earlier, the EIA said.

Demand Is Down, But Not Prices

The increase in the cost of heating oil as crude prices have steadied or fallen in recent days is a conundrum, says Josh Garrett, managing editor of , a Manhattan-based information service for both dealers and consumers.

With healthy supplies of heating oil and rising temperatures in the Northeast, prices have little reason to remain at such high levels, Garrett says. Mild weather in recent days has lowered demand 20% from levels typical for this time of year.

Garrett offers no predictions about where heating oil prices will go as the Northeast heads into the final six weeks of the heating season. "I'm at a loss," he says. Prices should slide lower because supplies remain high. But, he adds, that's been true the entire season, and plentiful stores of heating oil haven't had much effect on lowering prices.

Budget Cuts Target Home Heating Assistance Program

Sustained high prices for home heating oil raise the specter of fewer people being able to afford to keep their homes warm come next heating season. That will be especially true if cuts to the federal Low Income Home Energy Assistance Program are implemented.

As part of his draft budget released last week, President Obama targeted $2.5 billion in cuts to the $5.1 billion program that helps low-income households with energy costs. Obama justified the cuts by noting that the price of natural gas, a dominant heating source nationwide, has fallen steadily in the last two years.

But that's not true for heating oil, says Garrett, in a blog post at After hitting their highest levels ever in the summer of 2008, crude oil prices crashed along with the economy in late 2008 and early 2009, making heating oil "quite affordable." Since then, however, prices have risen sharply, doubling during the slightly more than two years since Obama took office and rising 38% in the last year alone.

Garrett doubts that the proposed 50% cut in LIHEAP funding will make it into the final budget, noting that strong negative reactions from constituents and lawmakers "will translate into a much less severe cut." Legislators from Maine to Maryland, regardless of party, will work together during budget negotiations to ensure that the cuts to the program aren't made, he says.

"They realize this is a huge issue for their constituents," says Garrett, "and they're definitely not going to stand idly by and let the program get gutted."

Continue reading this article >>

Why Hasn't the VIX Broken to New Lows?

by Bespoke Investment Group

Much has been made recently about the big drop in market volatility, but while the VIX is no doubt at low levels, it has failed to break to new lows for a couple of months now.  Typically the VIX falls when the market rises and rises when the market falls.  As shown below, however, the VIX has been moving sideways around the 16 level as the market has been rallying since December.  During the last bull market, the VIX moved into the single digits, so it's not like 16 is some kind of floor. 

What does this failure of the VIX to move lower mean for the market?  We're unsure, but basic technical analysis of the VIX chart would suggest that it's headed higher, which historically has coincided with stocks heading lower.    

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Greenland: Final Frontier for Rare Earth Elements, Uranium, And Much More

by Joseph L. Shaefer

Greenland may have been barren and cold in the 1800s, when this shanty became popular. But it wasn’t always so and, in the natural rhythms of Mother Earth’s warming and cooling, may not be so cold and barren in the near future. I haven't been to Greenland, but I have flown over it numerous times. I can assure you there is much green and brown as well as white and ice blue on that great island.

The name Greenland probably comes from the Norwegian Erik the Red, who sometime around 982 was exiled from Iceland for several murders, the circumstances of which were rather murky, with the victims being members of a powerful local family who had murdered members of Erik’s family. Nonetheless, he was exiled from Iceland for three years and henceforth set out with his extended family to find someplace where the reception would be warmer, if not the climate.
He may or may not have been the first Norseman to see Greenland (most accounts credit earlier visits of 50 and even 100 years) but it was Erik the Red who put it on the map (and his son, Leif Ericson, who later put the continent of North America on the map.) Erik allegedly called the place upon which he alighted Grœnland, or Greenland, in hopes of attracting other settlers to join him. (A technique that has been used by numerous real estate developers ever since, naming their tumbleweed-strewn
desert lots Shady Acres, Mountain Shadows, Montreux Estates, and so on.)

It's important to note that about this same time what we call the “Thule peoples” began migrating from Alaska and by 1300 had settled in Greenland, displacing many of the then-native peoples as they brought such innovations as whaling harpoons and dog sleds with them. The Norsemen who came with Eric the Red, as well as those who followed after him, both taught and learned much from the native peoples and, later, the Thules they encountered. And, in the tradition of humans everywhere, they also fought with and killed each other from time to time.

These were not people huddling in caves, however, seeking haven from the ravages of continual winter. Ice core samples and clamshell-dated artifacts both clearly show that during this time frame, from roughly 900 to at least the 1300s, herbaceous trees and plants grew in Greenland, wine vines were planted, livestock were introduced, and plants such as barley -- essential for beer, whiskey and other necessities of life -- were grown. Given the natural ebb and flow of climate change on earth over the millennia, it may be that Greenland will once more be truly green.

In fact, scientists recently probed 1.2 miles through a glacier in Greenland to recover the oldest plant DNA on record -- finding the DNA of trees, plants, butterflies and spiders from some 450,000 to 900,000 years ago – providing yet more evidence of natural global warming long before man appeared on the scene. With all this in mind, I invite you to take a close look at the map below (click to enlarge):

Before you write Greenland off as some Arctic Circle wasteland, please note that the southern tip of that great island lies just below the 60th latitude north. Note as well that sunny-in-the-summer Norway and Sweden lie mostly north of that same latitude (with major cities Oslo, Stockholm, Helsinki, and St. Petersburg, Russia, lying almost exactly along the parallel), with Finland and almost all of Alaska entirely north of it – just like Greenland -- though I hasten to note that Norway in particular, and Scandinavia in general, also benefit from the warm Gulf Stream currents...

Now consider where the massive discoveries of natural resources have taken place in recent years: oil and gas from the North Slope of Alaska, the north of Canada, the North Sea between Norway and Scotland, and the Russian north. Coal, iron, nickel, tungsten, gold, silver and rare earth elements (first discovered near the town of Ytterby, Sweden, to the northeast of Stockholm just below – you guessed it – latitude 60) are but a few of the other treasures the north has offered up.

Now if you look at the world from the view point of the map above, it simply makes sense that Greenland might also have been dusted with or surfeited with some of the same minerals and resources that its geologically-similar cousins in Russia, Canada, the US (Alaska) and the Nordic nations have. The Nordic nations are comprised of Iceland, Norway, Sweden, Finland, and Denmark, all of which have the bulk of their land mass north of Latitude 60 except for Denmark – but, then, since Greenland is currently “affiliated” with Denmark, we can’t exclude Denmark from this analysis.

(It’s a long story but the short version is: the Norwegians took responsibility for Greenland in the 1300s. Later, after combining with each other, rebelling from each other, etc., Norway and Denmark split for good in 1814. Denmark got Greenland. Greenland became an official and integral part of their kingdom in 1953. It was granted home rule by the Danish Parliament in 1979. In 2009, Greenland assumed self-determination with responsibility for self-government of judicial affairs, policing, and natural resources. Denmark maintains control of foreign affairs and defense. As part of the realm of the Kingdom of Denmark, Greenlanders elect two representatives who sit in Denmark’s Parliament. Ultimately the split will be final and Greenland will stand on its own.)

With the abundance of riches clearly discovered north of Latitude 60 by other nations, why do we hear nothing of such discoveries in Greenland or in the fecund waters surrounding Greenland? The answer lies in the political, cultural and ecological realms, not in the geologic or geographic. Denmark has done an admirable job of protecting the Inuit culture from outside influences. (88% of the some 58,000 Greenlanders are Inuit or mixed Danish and Inuit. The remaining 12% are mostly Danish. Almost all Greenlanders reside along the fjords in the south-west of the main island.) So currently fishing and ice fishing are the dominant means by which Greenlanders provide themselves with sustenance, just as they always have. In seasons with good catches, they depend upon fish and arctic shrimp for critical export products to trade for goods from elsewhere.

But that political and cultural decision to continue a certain way of life may or may not reflect the desires of native Greenlanders as they take their place among the nations of the world. Certainly they have shown a clear interest in the past in improving their standard of living by allowing other forms of exploration for valuable minerals and other natural resources.

Cryolite was discovered in Greenland in 1799 and has been used over the years to make caustic soda, as an insecticide and a pesticide, and, most significantly, in the production of aluminum. More recently, their state oil company, Nunaoil conducted a good deal of seismic research in Greenland’s coastal waters – enough so that third-party seismic data providers have found it profitable enough to take that task on themselves.

The state company Nunamineral has been seeking capital to increase the production of gold, which began in 2007. In that same year, their mining of ruby deposits also began. There is even a public company which became involved in ruby mining in 2004, which I’ll discuss below. And there are numerous other minerals projects just getting launched seeking likely deposits of uranium, aluminum, nickel, platinum, tungsten, titanium, lead, zinc and copper.

So – is Greenland the Final Frontier? With apologies to fellow Star Trek fans, it is certainly the largest land mass and continental shelf area that remains relatively unexplored on this planet, anyway. I say yes – Greenland is a place for brave investors to begin learning more about!

Among the ways I see as possible to participate would be the likelihood of responsible drilling for oil and gas offshore. Greenlanders cannot endanger their prolific fishing grounds, so they will most likely select shallower areas initially or the most experienced deeper-area operators with the most sterling safety records. I have crossed the North Atlantic twice via ship and seen its icebergs and gales firsthand. Make no mistake, these are treacherous waters. Two of our favored companies, both in our model portfolios, excel in this area. Both – no surprise – are Norwegian. No one has greater experience and a better safety record drilling in extreme environments than the Norwegians. I’ve also crossed the Skagerrak (the straits between Norway and Denmark) in 40-foot seas. My hat is off to anybody who can safely drill in those waters!
The first of these companies is Statoil (STO), partially owned by the Norwegian government, but which trades on the NYSE for the rest of us, and is quite liquid. Since I’ve written about it recently, let me suggest you take a look at that discussion rather than re-hash it here.

The second, which I’ve also suggested for your due diligence in an SA article here is Norway’s SeaDrill (SDRL), the world’s most successful deepwater driller and the one with the newest fleet of deepwater rigs. (In addition I mentioned both firms, among others, while advocating a safer approach to emerging markets, less than a month ago here.)

You may have other mineral, oil and gas, or other resource firms your due diligence has led you to. I suggest that if they are truly global thinkers and planners they, too, are quietly taking a look at Greenland as a not-too-distant future possibility.

There are a few “penny dreadfuls” which have already established a beachhead in Greenland and have contracts or actual ongoing operations there. I use the term penny dreadfuls not to be derisive – every firm has to start somewhere and some of these may go on to become giants – but because these firms are typically characterized by a large number of shares outstanding, as well as warrants and options granted to management and anyone providing them with capital. They are also characterized by a continuing need for capital since they usually have as yet no positive cash flow from their current operations. Since few bankers are willing to lend to them (Assets? What assets?) they must keep diluting current shareholders’ positions by issuing new stock.

With that (very large) caveat in mind, let’s take a quick look at a couple of these. I mentioned a ruby miner above. Their home page tells me “WE’VE DISCOVERED a new source of rubies that rivals those found in Burma,” and “YOU’VE DISCOVERED the opportunity to make a solid investment.” I was a defense attaché in Burma and I’m just not certain anyone can claim, at this early stage, that these rubies are their equivalent.

But, more, I dislike companies whose primary pitch, right on the home page, is to “investors” to pump up the stock price and not to vendors, buyers of their gems, and other stakeholders. Still, if that’s your thing, True North Gems (TNGMF.PK), at 12 ½ cents, down from a previous speculative blowoff in 2003 of 95 cents, but up from 8 cents in September, may just be your “buy ‘em when they’re cheap” kind of a gamble. They’ve been working each summer since 2004 to define their prospects and take some samples. The company has sapphire, emerald and nickel prospects in Canada, as well.

Greenland Minerals (GDLNF.PK) may not excite some as much as TNGMF, but it’s more my cup of tea. From a low of 10 cents at the bottom of the market in March 2009, it is now $1.38. I still like this Australia-based miner’s prospects, even at this price. In December, GDLNF received approval from the government of Greenland to fully evaluate the Kvanefjeld multi-element project, including radioactive elements like uranium. Why is this a huge deal? The Danes have a very “conservative” policy about anything nuclear. Despite their neighbor once-removed, France, deriving 75% of their electrical energy from safe, quiet, non-polluting nuclear, the Danes are dead-set against the stuff. They have never allowed so much as an analysis of just how much uranium might reside in Greenland.

Yet Kvanefjeld is a large mineralization deposit near the southern tip of Greenland that is rich in rare earth elements (REEs), uranium, and zinc. It is suspected to contain one of the world’s largest resources of REEs. The only question is whether the Greenland government will allow them to extract those REEs, knowing that some uranium may be moved or, with permission, extracted in the process. I'm guessing they will allow both. As the company says, "The Kvanefjeld Project is recognised as the world’s largest undeveloped JORC-compliant resource of rare earth oxides (REO), in a multi-element deposit that is also enriched in uranium and zinc." (The JORC Code comes from the Australasian Joint Ore Reserves Committee and is designed to assure minimum standards for public reporting to ensure that investors and their advisers have all the information they would reasonably require for forming a reliable opinion on the results and estimates being reported.)

In addition, the company has delineated yet another large mineralization complex, Ilimaussaq, with the potential to produce both light and heavy rare earth products, more uranium and zinc concentrates, fluoride compounds and zirconium. I believe Greenland Mineral's go-slow approach and respectful partnership with the government and people of Greenland gives them the inside track for further successes. Further information is available on their excellent website, including pdf’s of all the maps, geologic charts, and photos you could possibly want to see.

There are a number of other small companies exploring for REEs and metals in Greenland but I think we’ll save them for a later time. This is enough to digest in one sitting!

The golden parabola

By Goldrunner

Gold is in an historic Bull Market because most nations are printing their paper currencies like they are going out of style (and maybe they are) as each nation tries to battle off the massive deflationary backdrop of debt that has permeated most of the world. This surge of debt monetization – this devaluing of the U.S. Dollar for one – has set the scene for a parabolic rise in $Gold to $1860, or higher, over the coming months before an intermediate-term correction takes place. Let me explain.

Just today, I read that the Fed has announced that they will buy back $97 Billion of Treasury debt next month which will be an increase in U.S. Dollar (Dollar) inflation next month akin to 25% of the $397 Billion the Fed has already done over the last 7 months since August. This is what the Fed calls QE II, pure debt monetization where new Dollars are printed up and used to buy back our Nation’s debt. This is pure Dollar inflation that devalues the Dollar by aggressively increasing the Dollar supply.

This surge of debt monetization by the Fed comes with $Gold having suffered a rather mild correction up at all-time highs. Overall, the Parabolic rise in $Gold appears to be accelerating on the chart as the corrections appear to be getting shorter in time and more shallow in terms of price. This is how a parabolic rise takes place. This also shows how the psychology of investors is changing toward $Gold. The price of Gold slurs and chops higher on the chart as investors’ fear of the supply of Dollars being printed keeps on rising. U.S. investors are increasingly becoming concerned about how the increasing supply of Dollars is devaluing the Dollar affecting everything in their lives – the buying power of their income, the stability of their jobs, the worth of their possessions, and of the value of their savings.

The US Dollar Index does not accurately track the devaluation of the Dollar
I find it fascinating to watch the Dollar Devaluation and the Gold Parabola play out. It is a continuing sketch of denial turning into reality. The Gold Bull is climbing very similarly to how it climbed in the late 70’s. Investors seem to primarily be watching the Dollar Index in an attempt to track the devaluation of the Dollar. Unfortunately, that simply will not work in an environment where most nations are aggressively printing their paper currencies. It did not work in the late 70’s, either.

When most countries are aggressively printing their paper currencies, a period of Global Competitive Currency Devaluations, the Dollar is being measured in the Dollar Index against a basket of other currencies that are also constantly falling in value. You cannot use a reference point that is constantly falling to determine the Dollar’s value because it negates the reason for a reference point in the first place. Thus, the Dollar Index is simply a “pricing mechanism” measuring the Dollar against other paper currencies that are falling in value. The Dollar “pricing index” becomes worthless as a gauge of U.S. “Dollar Value” in these times, just like it did back in the late 70’s.

The $Gold Chart is the only true comparison of Dollar value
The only true reference point of value for the Dollar at this time is a comparison to Gold. Thus, the $Gold chart is that only true comparison of Dollar Value as it is viewed in a ratio to relative constant value Gold once Global Competitive Currency Devaluations are ongoing. Smart money knows this so to a large extent the rise in the parabolic Gold Bull feeds on itself. Yet, the psychology that drives Gold higher is constantly fed by the fundamental facts of Dollar supply expansion such as the Fed’s recent announcement that debt monetization will be ratcheted up next month.

At a very similar point to today in the 70’s Gold Bull chart, Gold accelerated to the upside very sharply out of a similar bottom. The 1970’s move rose up to a point about 30% higher than the “last high.” If we see the same rise over the coming months a 30% rise would take $Gold up to around $1,860. Yet, there are different ways of arriving at a potential target, and some of them suggest a potential for Gold to rise over the coming months to an even higher target before an intermediate-term correction takes place.

A look at the weekly arithmetic chart of $Gold
The recent correction in gold fell a bit lower than I had expected. Although the chart of Gold has been playing out very similarly to the late 70’s Gold parabola, many of the corrections have been a bit deeper in the current period than those similar points in the 70’s Bull. I think that is to be expected. Investors have been constantly hampered by the confusion a deflationary backdrop provides versus the inflationary backdrop of the late 70’s.

Yet, it is not the backdrop that is driving the price of $Gold ever-higher. What is driving the price of $Gold ever-higher is the Dollar Inflation in response to the massive deflationary backdrop and deteriorating economy. The worse the debt levels and the worse the economy deteriorates; the more Dollar inflation is applied, fueling the $Gold Bull in its parabolic climb.

The $Gold has risen up out of the top of what I call “The Wave III Channel”, much like it did back in 2006 out of the “Wave I Channel.” Also, like in 2006, $Gold has corrected back to, and a bit below, the corresponding channel top. $Gold found a bottom at the red uptrend line off of the late 2008 Deflation Scare bottom. At the present time Gold has found a bit of resistance back up at the green line representing the “Wave III Channel Top.” If $Gold breaks through that green line as new Dollar Inflation accelerates into next month, I would expect the price of $Gold to resolve sharply to the upside similarly to the sharp move higher back in the late 70’s as described, above.

Note in the chart the sharp expansion in channel width between the “Wave I Channel” and “The Wave III Channel.” I would expect the price rise into the future to see a similar expansion of “The Wave V” channel defined by the red lines. This is how a parabola grows on an arithmetic chart. Also note how $Gold appears to have bottomed while the RSI reached the 50 line, and the Stochastic indicator turned up.

A look at the weekly log chart of $Gold
In the weekly log chart of $Gold showing the potential bottom in place we can see that for the last year, or so, $Gold has tended to bottom with the price dropping below the Bollinger Band mid-line down to touch the 34 week exponential moving average. Then, $Gold rises back up to and above the Bollinger Band mid-line. At each former bottom marked by green arrows on the chart, we can see that the RSI bottomed around the 50 mark while the Stochastic indicator turned up below the 50 line. This is classic bull market behavior at bottoms. We can also see that the MACD histogram has now bottomed- a precursor to the MACD turning up.

The ongoing Dollar devaluation Is driving the $Gold Price
If the late 70’s continues to be a good template for the current Golden Parabola that is unfolding, we have a lot higher for $Gold to rise. To be in the Precious Metals sector at this time I think it is imperative to seek out the correct Dollar valuation metrics since it is the ongoing Dollar Devaluation that is driving the $Gold price. Other issues like the massive deflationary backdrop and the deteriorating economy are the reason the massive Dollar Inflation program is being provided. False “pricing mechanisms” like the Dollar Index can be useful at times, but cannot be depended upon if one is seeking the true Dollar Devaluation that is occurring. For instance, from this current juncture in the late 70′s the Dollar was devalued a further 60% or so against Gold while the Dollar index fell only a fraction of that amount.

Diminishing effects of QE II by June will result in an intermediate-term gold correction
I believe the Fed has already given us the basic timing for this run in $Gold to meet an intermediate-term correction. When the Fed announced QE II they said that it would run into early June of this year. Since it is Dollar inflation/ Dollar Devaluation in the form of QE II that is now driving the $Gold parabola, it certainly makes sense that the end of QE II would invite an intermediate-term correction in $Gold. That being said, what we do not know for sure is just how much monetization the Fed will actually provide into June. Look at the Fed providing “guidance” as to how much debt they will monetize next month. They are practically begging the markets, including the PM sector, to rise by providing such guidance.

The Fed desperately needs Dollar Inflation to lead to price inflation to counteract the massive deflationary backdrop that exists. Debt monetization as a form of Dollar Inflation is mostly directed at devaluing the Dollar since very little of this form of Dollar Inflation actually enters the economy. Thus, we can count on further economic deterioration to lead to more Dollar Devaluation into the future.

The prospects for $Silver and the HUI
The prospects for $Silver going forward look to be just as promising, or even more promising, than our expectations for $Gold. Gold in Rand is now hitting the top of its ascending triangle for the 4th time, and the chart of $Gold suggests that Gold in Rand will likely be successful in terms of a break-out to the upside very soon. I will try to return shortly to show our expectations for $Silver, Gold in Rand, and for the PM Stock Indices.

Continue reading this article >>

Where Is Gold Headed?

By Brad Zigler
For some investors, the headline question is a forgone conclusion. For others, gold's price destination isn't so certain. Answering the question in great part depends upon one's time horizon.

Traders tend to have short - or shorter - investment horizons. That's not to say that they may not hold gold core positions for the long term. Many do, while they trade in and out of gold to capture intermediate- or short-term price trends.

Traders also have a choice of currency in which to trade. Bullion's gains and losses can be levered by trading in sterling, Swiss francs, euro or yen instead of U.S. dollars.

Gold's longer-term price track has been upward in all the reserve currencies since the launch of the euro in 1999, although the average rate of appreciation varies. You would, for instance, have earned the best average return if you'd bought your gold in sterling; less if your original purchase was in Swiss francs.
Gold Price (Jan. 1, 1999 to Feb. 16, 2011)
Average Annual
There were plenty of peaks and valleys, however, that one could have traded as gold worked its way higher (or, from another viewpoint, as currencies worked lower). For example, gold appreciated at a higher rate against the euro early in the currency's career. Then, as its appreciation against the euro dipped, gold began trading higher against the greenback and the pound:
Gold Price Since 1999
Gold Price Since 1999
Over the past couple of years, there's been a lot of volatility in bullion's price across the forex market. Notice, in particular, the reversal of the euro's fortunes compared to the Swissie and yen.
Recent Gold Price Trend
Viewed from a peculiar perspective, the U.S. dollar seems almost stable. Or at least its rate of degradation against gold has been more consistent.

And now? How has gold fared against the major currencies in 2011?

Gold lost ground against all the reserves early on, but by varying degrees. Generally, 2010's year-end downtrend carried over through January. But now we're seeing the signs of a rebound.

Gold has bounced the most in Japanese yen, now trading above - albeit by just 0.5% - its New Year's Day price. Meanwhile, it has been weakest against the euro, down 6.5% since the top of the year. Still, that's an improvement from its 9.5% dip earlier this month.

Gold's track record in dollars has been, for lack of a better word, middling. It didn't fall as much as some other currencies, but it didn't - or hasn't yet - rebounded as much as others, either. In dollar terms, bullion remains 2.6% underwater for the year:
Gold Price In 2011
Gold Price In 2011
We're now at a point where gold prices are likely to stage a sustainable rally; that is, if certain resistance points are taken out. The most critical point, in dollars, is $1,393/oz. Decisive closes above this mid-January high in spot prices could set the stage for bullion to take out its former highs.

So, just how high is high? Well, if the stars align rightly - or more appropriately, if the fear index continues to be cranked up by doings in the Mideast - that could mean $1,478/oz.

It's likely to be a short throw, too. If we get a breakout move immediately, it might take just a month or so.

(For GLD investors, the breakout level would be $135.70 with an objective of $143.50.)

The more interesting question is where gold goes from there. Will this be just another stair-step to yet higher prices, or will this be the final thrust that finishes the gold bull off? A bit of fog still remains in our crystal ball, but we'll be sure to let you know when it starts to clear.

We'll look at the implications for other currency/gold cross rates in the coming week.

Continue reading this article >>

Fed QE2 Inflation Fuels Global Fury and Rage

The Federal Reserve has been busy the last three months pumping up the money supply by $300 billion dollars, with much more promised in the months ahead. Some of the results have been painfully predictable, others less so.

Fed chairman Ben Bernanke said he did this to stimulate housing and employment. The unemployment rate has fallen in recent months, but most market analysts are skeptical that the statistical improvement is real or lasting.

The headline numbers on housing also appear good, with building permits increasing 16.7 percent in December. However, units actually "currently under construction" came down by the same amount, 16.7 percent. Housing starts decreased in December by 4 percent and starts of single-family homes were down by 9 percent.

Even the improvement in building permits indicates continuing trouble. The increase in permits occurred mostly in the Northeast and West, and the bulk of the increase was for multiunit structures (i.e., apartments and duplexes). This makes sense, given that people are losing their homes or downsizing into apartments due to budget constraints.

Also, the number of permits issued in December 2010 was 7 percent less than in December of 2009. Likewise, housing starts were 8 percent lower this December than in the previous year.

One factor weighing on the housing market was interest rates. Mortgage rates have started to increase along with bond yields. Presumably, Mr. Bernanke thought QE2 would have reduced mortgage rates, but he recently testified to Congress that the new higher rates are actually a sign of "green shoots" in the economy. Higher rates could be a sign of economic confidence, but other signs indicate lenders are concerned about inflation and are raising rates to account for the falling value of the dollar.

The price of everything seems to have skyrocketed. Only housing, the dollar, and inflation-adjusted income are negative. World food and commodity prices are up 28 percent over the last 6 months. The MIT "Billion Prices Project" confirms that prices have been surging higher than indicated by the consumer price index. Entrepreneurs tell me that big price increases are already planned for everything from vegetables to blue jeans.

Higher food prices set off the revolutions in Tunisia and Egypt and the mass protests in countries like Algeria, Jordan, Yemen, Bahrain, and Iran. People in these countries buy more unprocessed foods and spend a much higher percentage of their income on food, so they have been severely impoverished by Bernanke's QE2.

Bernanke claims that monetary policy cannot change the quantity of wheat by one bushel and that higher food prices are the result of bad weather conditions in Russia and Australia. However, bad weather does not explain why the prices of virtually all food and nonfood commodities have increased substantially in recent recessionary times. This is clearly a case of too much money chasing too few goods.

Of course, it would be incorrect to credit Bernanke for freeing the Egyptian people, because food prices were only the trigger, not the true cause of all this social unrest.

However, it is surely correct to credit Bernanke and his fellow central bankers for worldwide commodity inflation.

Gold and Silver Bullion Bottleneck or Supply Deficit?

Jeff Clark, BIG GOLD writes: There have been numerous reports of bullion shortages in many parts around the world, along with rising premiums. And the two explanations - we're running out of gold! and, it's just a manufacturing bottleneck - are at odds with one another. So, who's right?

First, the data. The following has been reported since New Year's eve horn-blowers were put away:
  1. Report from China: "...premiums for gold bars jumped to their highest level in two years."
  2. A director at Cheong Gold Dealers in Hong Kong: "I don't have any gold. Premiums are very high. Some say they have no stocks on hand."
  3. A dealer in Singapore: "There's a sudden surge in demand. Demand from China is very strong and they are paying very high premiums. Refiners can't meet the demand."
  4. World Gold Council report: " imports by India likely reached a record last year due to increased investment demand. Imports will probably be the highest for India in its history."
  5. Nigel Moffatt, treasurer of the Perth Mint: "...demand for gold bullion has been unrelenting since gold dropped below $1,400 an ounce. At the moment demand is such that we cannot meet all the enquiries we are getting. Demand for our coins and medallions is strong, but the biggest demand is coming from banks and traders looking for kilo bars."
  6. Eric Sprott, chief investment officer of Sprott Asset Management, after having difficulty locating enough bullion for their new silver fund: "Frankly, we are concerned about the illiquidity in the physical silver market. We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver."
  7. 2010 gold Buffalo coins are largely unavailable from dealers.
  8. Sales of silver Eagles set a new record in January - by the 19th of the month. Already, 4.6 million coins have been sold, an all-time monthly high since the coin's release in 1986.
Based on this data alone, you might come to the conclusion that yes, we're running low on bullion supply. But most industry execs I spoke to insist this is a "bottleneck" issue: current demand is greater than current stock on hand, or is coming in faster than mints can produce. In other words, it's a fabrication issue, not a supply deficit. A Treasury rep said as much.
You'll recall from 2008 how supply was difficult to come by and premiums were roughly double what they are now. Some think it will be "lesson learned" this time around; mints now know how to prepare for another spike in demand. Many have added workers, shifts, and facilities. The U.S. Mint stopped producing the less popular coins and now focuses on those that are most in demand.
To a large extent, I believe the bottleneck argument is exactly what's happening. It's no different than the store that sells old-fashioned wooden rocking chairs suddenly getting swamped with customers when an antique dealer declares they'll be valuable collectibles in the future. Collectors rush to buy, and the store doesn't have enough rocking chairs in its warehouse. But they're not running out of wood. And they'll likely be better prepared when they hear the dealer is coming out with a book.
It's true there's only so much gold coming to market every year (total 2010 supply is estimated to have been about 115 million ounces), but in the big picture, there's been enough. It's also true that orders from the 2008 rush were eventually filled. However, I think the "bottleneck" and "we're running out" arguments miss the point, because they both focus on supply.
Demand is what I'm concerned about. Now try this data:
  1. According to International Strategy and Investment Group, gold ownership currently represents 0.6% of total financial assets. If it rose to just 1.2% - still less than half its 1980 level - it would require an additional 917.1 million ounces, or 16% of aggregate gold worldwide. This amount is equal to about 10 years of current global production.
  2. Investment demand represented 53% of all gold demand in 1979; today, it represents just 32%. Coin demand represented 37% of all demand in 1979; today it's less than 14%.
  3. Gold and gold mining stocks represented 26% of all global assets in 1981 (high inflation), and 20% in 1932 (high deflation). Today, gold and gold mining shares represent about 1% of global assets.
  4. The market cap of the entire gold industry is about the size of Microsoft, is less than Exxon Mobil, and is 10 times smaller than the banking industry. The whole of the silver industry is smaller than Starbucks.
  5. Silver mine production is insufficient to meet current demand. The only way silver needs are fulfilled is from scrap coming to market. Miners don't produce enough on their own.
  6. There are approximately 40% more earthlings right now than there are ounces of gold that have ever been mined. That includes every ounce used in jewelry, electronics, and dental. Further, if every ounce of supply last year were made into coins and bars for investment purchase, it would amount to less than two one-hundredths of an ounce, or about half a gram, for every man, woman, and child on earth. This means 0.018% of the global population - about one in every 55 people - could buy a one-ounce gold coin this year.
Yes, there is a bottleneck. But with this recent spike in demand, it appears some mints still aren't equipped to keep up. Are we nearing a tipping point where in spite of the increased efficiency and preparedness, requests from buyers will outweigh available supply? Imagine demand continuing to accelerate, and you can see where this might be headed. I think this is the side of the equation to watch.
Andy Schectman of bullion dealer Miles Franklin told me last summer that, "Based on what I know, it's my opinion that if 5% of this country put 5% of their money into gold, there would be nothing left tomorrow morning." In other words, even if supply is sufficient at present, what happens if demand, say, doubles, as the above data show is possible?
Right now in North America you can still get bullion, but we're clearly on a path where demand could overwhelm the system, making purchases very difficult. When that point arrives, many investors will wish they hadn't worried so much about price.
Imagine Doug Casey is right about the future value of the dollar: zero. Imagine how high inflation would rocket in such a scenario.
Bottleneck, meet desperation.
The Chinese and other governments are gobbling up gold as fast as they can, adding vast amounts to their already large holdings. Because they know something many mainstream investors don’t: the U.S. dollar is on its last leg. To find out how to protect yourself – and to profit – watch this free video.

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