Blood in the Streets

As I've said since April, gold and silver have been the most hated asset classes, reaching all-time lows in sentiment indicators. Yet, since the June 27 intraday low of $18.20, silver is up over 18%. The mining shares have done even better. This is contrarian investing at work--buy when there's blood in the streets.

Remember:  Wall Street and the media told all of us that gold's bull market is over, advised us to sell and get out of precious metals.  I said to do the opposite.  The "pundits" missed the 12-year bull market in gold, and then all of a sudden (on price weakness) declared they were experts on gold being in a bubble.

In other words, they had no idea why precious metals prices appreciated for 12 consecutive years, and now we're expected to listen to them on why prices are declining.  I'm not saying they're all crooks--most mainstream financial advisers are well-intentioned.  They just don't get it, because economics textbooks preach that the USDollar is king, and precious metals--if mentioned at all, are barbarous relics.

As for the financial authorities in the media--they are crooks because they will do everything in their power to dissuade you from owning the very assets which protect you from currency debasement.   That's just financial reality, and the sooner you accept that, the better your investment returns.

To prove it to you--and older folks will relate to this better, but tuition, room and board at Yale University is $70,000 a year now.  A Physics textbook costs $350 today.  When I was in college 30 years ago, a bonehead Physics textbook probably cost $30.

My message to all of you:  buy more physical bullion if you have less than 5% of your savings in precious metals, or at least stay the course.  Buy methodically and layer in purchases by dollar-cost averaging--or buy the dips, because frankly, nobody knows what prices will do tomorrow.  But longer-term, as long as sovereign debt levels continue to rise, and as long as central banks continue to debase their currencies, by no means should you sell your physical holdings in a panic because the "experts" tell you to.

They will always be wrong in that aspect, because the government is mandated is to protect the reserve currency status of the USDollar at all costs.  Meanwhile, the rest of the world, including China, Russia and their trading partners, are trying to diversify away from the dollar.  Your mission is to do the same, and protect your savings with physical precious metals.

Good luck to us and happy hoarding!

Our Path To Collapse Will Impact Everyone Around The World

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/15_Our_Path_To_Collapse_Will_Impact_Everyone_Around_The_World.html

From Currency Debasement To Social Collapse: 4 Case Studies

http://www.zerohedge.com/news/2012-10-02/currency-debasement-social-collapse-4-case-studies

Norcini - If History is Any Guide, This is Going to End Badly

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/23_Norcini_-_If_History_is_Any_Guide%2C_This_is_Going_to_End_Badly.html

Zoellick throws support behind Brics bank

This is a sure sign emerging economics don't want to be burdened by a decrepit USDollar any longer.  They understand a debased currency when they see one--in fact, all they need to do is look into their own countries' respective histories of currency debauchery.  It's also why the US can't wait for outgoing World Bank President Robert Zoellick to exit already.  The truth is a bitch.

http://www.ft.com/intl/cms/s/0/961513b6-7bc7-11e1-9100-00144feab49a.html#axzz1qncOrXOu

In a rare moment of central bank candor, Zoellick two years ago suggested the world should re-examine a return to a form of the gold standard (click here).  Blasphemy, I tell you!

James Turk - Silver Formation Projects Spike to $60 - $75 Level

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/31_James_Turk_-_Silver_Formation_Projects_Spike_to_%2460_-_%2475_Level.html

“Central banks everywhere are trying to debase their currencies and Japan is just the latest episode.  A few weeks ago it was the Swiss National Bank and we’ve seen continuous debasement by the Federal Reserve with it’s dollar money printing and artificially low interest rates.  This is exactly what happened in the Great Depression.  Back then they called it ‘Beggar thy neighbor.’

Each country was trying to seek a short-term solution to fundamental ills by manipulating their respective currencies.  Manipulation doesn’t solve underlying problems.  It doesn’t even offer a band-aid because it disrupts the market process.  The net result of this turmoil is hot money, which is constantly looking for a safe home.  The underlying chaos detracts from businessmen making sound investment decisions in plant and equipment which creates long-term growth, employment and wealth.

When all countries are aiming to debase their currency, the conclusion is quite obvious.  First, you will see money rushing from one currency to another, depending on what central banks are doing at that moment.  Second, and more importantly, all currencies are being debased against gold, so its price will rise.  The value of gold comes from the market and not from central banks.  Central banks can debase currencies, but they cannot debase gold.”

A Thousand Pictures Is Worth One Word

http://www.caseyresearch.com/editorial.php?page=articles/thousand-pictures-worth-one-word&ppref=ZHB207ED0711A

Gold - sound, honest, "real" money

We don't do complicated analysis on gold. We don't need to. We know gold is rising because people and their elected representatives have racked up massive government obligations that can't possibly be paid back with sound, honest money. The only way out of these obligations is to pay them back with debased paper currency. The winner in the whole wretched system is "real money," gold. - Brian Hunt

Race to Debase

http://goldsilver.com/article/race-to-debase-2010-q4/

China Is `Scared' of U.S. Monetary Policy, Rogoff, Rickards Say

http://www.bloomberg.com/news/2010-12-02/china-is-scared-u-s-policy-is-debasing-currency-rogoff-rickards-say.html

Philip Manduca: America giving away wealth and power

For years, financial and mainstream media have been demonizing gold. Ten years later, after appreciating over five-fold, CNBC is just now acknowledging the legitimacy of gold and gold-related assets. At some point in the future, they'll be claiming they were gold bulls all along. Bull manure.

The world monetary earthquake, the dash from cash

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/9/28_Ben_Davies_-_The_World_Monetary_Earthquake.html

Within a single week 25 nations have deliberately slashed the values of their currencies. Nothing quite comparable with this has ever happened before in the history of the world. This world monetary earthquake will carry many lessons.

Gold is the final refuge against universal currency debasement

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8026324/Gold-is-the-final-refuge-against-universal-currency-debasement.html