If Bernanke was a Helicopter, Yellen is the Concorde

Bernake’s loose monetary policy that seemed to drop money from the sky earned Bernanke the nickname “Helicopter Ben.” If that makes investors worry about the stability of the dollar and increases volatility buckle your seat belt and get ready for Janet Yellen. David Morgan says you haven’t seen anything yet and says that if Bernanke was “Helicopter Ben” than Janet Yellen as a Concorde. Make sure you visit David Morgan’s Resource page here at www.preciousmetalsinvesting.com for more information and resources from David Morgan.

This interview of David Morgan took place at the 11th Annual Silver Summit in Spokane, Washington. David talks about the movement of physical gold and silver frm the west to the east where demand for buying physical precious metals like gold and silver is still very strong. David feels the opportunity is especially great in the mining stocks. When asked exactly when the change in investor sentiment for the precious metals would take place he said he didn’t know exactly would be the spark ignited the stampede to the precious metals or exactly when it would occur. However David maintains there are signs that it is beginning to occur such as the seeming loss in confidence in fiat currencies around the globe.

Insider Selling – What It Means For You

Record levels of sales by corporate insiders have been reported recently. What does this mean for you? Today at www.preciousmetalsinvesting.com we discuss what it means for your and what actions you should be taking. Ted Sudol interviews Paul Mladjenovic, author of Stock Investing for Dummies.

Precious Metals and the Dollar – What Is Real Money?

When the German Government asks for the gold it left with the US FED and was told by the FED it would take seven years to get their gold back should you be concerned? When Germany only gets a small part of the fraction of the gold they were promised should you be concerned? When the gold they get back is not the gold they left there for safe keeping but newly melted bars – should you be concerned? We here at www.preciousmetalsinvesting.com think you should be concerned. It seems apparent that the stories we have been told about the amount of gold stored in the Fed, Fort Knox and banks around the globe may not be true.

What is money after all? For thousands of years money meant a stable source of value. To facilitate a medium of exchange money took the form of gold and silver that made trade, barter, and commerce possible. Dollars were merely claim checks giving the bearer the right to exchange their dollars for gold or silver that had a relatively stable value.

However since the dollar was taken off the gold standard it is only backed by the full faith in the US government that it can be used to settle debts. But what value does the dollar hold? Has that value been stable over time? Data shows that the dollar is worth only 2% of the value that it had in the 1900’s.

In this video they question of “What is Real Money” Is examined. Watch it and let me know what you think.

Yellen, inflation and the Middle Class

My sister corrected me the other day when I said there were two classes in America the haves and the have nots. She said today there are actually three – the haves, the have nots and the usta’ haves. Inflation and low interest rates have been constantly chipping away at the middle class and converting a lot of middle class people into usta’ haves.

Most of the audience here at www.preciousmetalsinvesting.com I believe are in the middle class, upper middle class or saving to be in the middle class. We look at gold as a source of wealth that will not diminish in time as opposed to the value of the dollar that has fallen to just 2% of the buying power it had in the 1900’s.

If you have been shopping for food, paying for gas, heating your house, paying for electricity to light your home anytime in the past four years you know that prices have been rising almost continuously. You also know that the government’s official reported rate of has nothing to do with reality or your life and the things you need to buy every day to live. Inflation is vitally important to you because you know that inflation is constantly eating away at what your money can purchase and constantly reducing the amount of money that you can use to protect yourself and your future by purchasing precious metals. If you have saved for your retirement you see the artificially low interest rates have severely reduced the amount of money your thought you would have at retirement.

So let’s just see what the new Fed chief, Janet Yellen, has said about inflation and you decide how her actions might affect you. As president of the San Francisco Federal Reserve Bank four years ago, she said, “Accommodative policy is appropriate, in my view, because the economy is operating well below its potential and inflation is undesirably low. If it were possible to take interest rates into negative territory, I would be voting for that.”

For the average American purchasing the goods and he needs to cover daily living and support his family what the heck is a “undesirably low” rate of inflation? What does that mean for you and your future.

For that matter what does an “undesirably low” rate of inflation mean for corporations and job formation. If a company knows that inflation is low it knows that the prices of the raw materials that it uses to produce its products will be relatively stable and it can plan for the future. Corporations that are able to plan for the future look to grow. Corporate growth generally means job creation. Corporations love stability.

I have read that Janet Yellen is very smart. However watching her on television my initial impression was that she specializes in using the largest amount of words to convey the smallest amount of information. The Fed just made their latest pronouncement. As the new head of the Fed here’s her latest pearls of wisdom as quoted in the New York Times after she had just said that she was planning to keep short-term rates near zero “for a considerable time.” When Yellen was asked to define “a considerable time,” Ms. Yellen responded, “This is the kind of term that’s hard to define, but it probably means something on the order of around six months or that kind of thing.”

We know what interest rates near zero mean for the people trying to save for their future. We know what interest rates near zero have meant for retirees whose money is invested in bank accounts and cds.

I think most people will agree that very little of the stimulus has trickled down to the average person. It’s mostly gone to Wall Street, Financial Institutions, and the Banks that caused the problem. And the ironic thing is that its the “average” person who has been footing all of the bills through their taxes. It’s the average person whose hard earned cash is being spent and whose future is being mortgaged to bail out the institutions that caused the problem in the first place.

Mike Maloney End of the Dollar

Gold and Silver Expert Mike Maloney of goldsilver.com reiterates the fact that governments are trading directly in currencies other than the dollar. Although he doesn’t call it currency wars as we did the bottom line is that governments around the world are becoming uneasy. Governments are becoming uneasy about the level of US debt and monetary policies like quantitative easing that devalue the dollar by increasing the money supply by printing up tremendous quantities of new dollars.

In this wide ranging interview Mike talks about his company’s new series, The Hidden Secrets of Money. He also thinks Bernake, Yellen and Sommers are just noise to take our attention away from the ball and the fact that the government created these problems through it flawed monetary policies and inflating the currency supplies. Mike says most wars are just attempts by governments to blame the other guy or the other country for the problems the government itself created.

Mike says the single line accounting in which banks have been listing gold they have leased out, which is really a receivable and not an asset, is illegal accounting and morally corrupt. But the good news for precious metals investors is that when the banks are forced to buy back the gold they have leased out the prices are sure to rise and that rise will probably be pretty dramatic.

Ukraine Crisis and The Precious Metals Investor

The crisis in the Ukraine will have both short term and long term effects that you as a precious metals investor as well as stock investors should be aware of. It’s important that you protect your investments so you are not buffeted about by these global winds that are blowing all around us. We are all going to be exposed to these global forces but it is the prudent person who knows how to position himself to take advantage when possible and protect his investments when necessary.

In this video from Ted Sudol of www.preciousmetalsinvesting.com and Paul Mladjenovice, Author of Precious Metals Investing for Dummies we discuss what you should be aware of.

Be sure to visit www.preciousmetalsinvesting.com for more free tip, videos and techniques from experts in the field of precious metals investing. Join our free mailing list and you’ll get the latest information to help you make informed decisions. You’ll also get our FREE Guide to Precious Metals.

JPMorgan and Market Manipulation

For several years evidence has been gathering about the suppression of precious metal prices in the face of skyrocketing demand for the physical precious metals in places like India and China. They have recently been buying up a major chunk of what is reportedly a year’s worth of production. Evidence has been accumulating that banks and government entities that claim to have large stores of the physical precious metals may only have a tiny fraction of what they claim.

The precious metals investment community was certainly shaken when the Fed told Germany, when they asked for their gold back, that they needed to wait 7 years to get it back. (Remember it’s all supposedly tucked away safely in Fed vaults)

What’s that? Say that again! It will take the Fed 7 years to return another government’s property they stored with them for safekeeping? This is 2014 – planes cross the ocean in hours, ships take several days, FedEx has next day delivery. I’m sure if the Fed told Germany they could get their gold tomorrow Germany could arrange transportation the day after. They only reason I can think of that it would take seven years is because the Fed doesn’t have it. If they have another explanation I’m willing to hear it along with insistence for the first independent audit of Fort Knox and the Fed vaults in a long time.

One of the leading investigators into the manipulation of the precious metals market is Ted Butler.

In his post 2013 – The Year of JPMorgan Ted details some of the suspicious moves by JPMorgan that just appear to be much more than mere coincidence. Everyone who is interested in the precious metals and investing should read this article and go to Ted’s site SilverSeek

According to Ted Butler the price moves in the market took place over such a short time span, about five trading days, and the movements don’t seem like they were driven normal market forces.

With Ted’s calculation that JPMorgan stood to profit by 3 Billion Dollars their motivation is not hard to figure out.

One puzzling aspect is how come JPMorgan has been given a free pass to flout the COMEX regulations that are supposed to limit the amount of contracts any one can take and hold in any one month. That regulation is designed to limit the power any one entity has to warp the market. But JPMorgan has been able to flout the regulations without the Comex objecting. Why? Could it be that they both profit while the average silver investor gets savaged and more wealth gets transferred to the super rich (and super connected). If you would like to read more about this fatal trap of Wall Street Lobbists, high priced lawyers and outgunned regulatory agencies that are supposed to protect us read “Angry Bart Takes his Parting Shot” This article, which appeared on bloomburg.com is about Bart Chilton, a member of the Commodity Futures Trading Commission, one of the financial industry’s most important regulators. After 6.5 years on the commission and 30 years in Washington politics he is leaving. As an insider on the commission he had a front row seat and his message for the future is bleak

But Ted tells this sordid tale better than I. He’s been following this much longer than I have and has uncovered the research to back up his claims. I would urge you all to go to 2013 – The Year of JPMorgan and read the full article.

What’s in store for the precious metals for 2014. Well having profited from driving the precious metals down in price JPMorgan has now switched tactics and is furiously buying up physical precious metals on the cheap. It’s a perfect game as long as you are the one who is rigging it.

The chances of getting any of our politicians to take action is slim to none. Now that corporations have been declared “persons” by the conservative court and tons of money are to be had for the politician listening to Wall Street Lobbyists maybe even the dream of democracy is slipping away under the corporatization of the government.

So the best course of action I can see if you believe this chain of events, in light of JPMorgan’s decision to start buying is to follow their example. Follow the example of India and start buying. Follow the example of China and start buying.

There are some pundits that have recently proclaimed that gold is going to $700. You can believe that if you want and place your vote (and your money that way) But as for me personally I’ll be placing my bets with JPMorgan, India and China and picking up some precious metals bargains now.

As always consult with your financial adviser before making any investment. All investments, including precious metals carry the risk of a significant loss of capital.

I converted my IRA to a precious metals IRA earlier this year. It was a two week search to find the 4 required entities that would both work together and meet my standards. There are some vitally important differences and questions about the type of account, storage, business separation of the different parties, etc. that you need to have answered before you proceed. Within a few weeks I’ll be completing a video course on how to set it up and offering it here on preciousmetalsinvesting.com

Even after doing my due diligence the metals took their dive this year and I saw the value of my IRA sink significantly. I wasn’t worried because an IRA is a long term investment. But, as one who is involved in precious metals I admit the sector is volatile and the ride can be bumpy. In short, if you can’t stand the heat stay out of the kitchen.

Buy Gold As Wealth

Here at preciousmetalsinvesting.com we invest part of our wealth in the physical precious metals because it is one of the only investments that eliminates counter-party risk. However it is sometimes hard in today’s market where the focus is on short term price movement to remember why you invested in precious metals in the first place. The voices of anti precious metals pundits are often loud and sometimes we have trouble listening to our own wisdom. It’s interesting to note that current studies in Neuroscience which have tracked the record of financial pundits points out the truly dismal record most of them have. Studies have shown that the degree to which the typical pundit is certain in his prognostication and the more assured in his own wisdom the less likely he is to be right. We have seen some pretty spectacular “bu-yah” failures recently. Phillip Tetlock a Leonore Annenberg University Professor, School of Arts and Sciences (Psychology) and Wharton School (Management), Phd. from Yale, chair at the University of California followed up this initial study by picking 284 people who made their living “commenting or offering advice on political and economic trends.” The conclusion, after all the data was tallied, was that they tended to perform worse than random chance.

I think a quote from Dow Theory Letter’s Richard Russell puts things in the right perspective:

“A few thoughts about gold. Never buy gold for a profit, gold is a measure of wealth. Count your gold holdings in the number of ounces, not the current worth in dollars. You don’t price the home you live in every day, or with each passing week. Nor should you price your gold holdings in dollars with each passing day. Gold is a timeless wealth asset; an asset that will have a value with the passing of time.

Remember this: Of the original issues that made up the Industrial Average, only one remains. And that stock is General Electric. And what happened to all the rest? In investing, nothing is permanent except gold. But remember, do not buy gold with the idea of making a profit. Buy gold because it is pure wealth, and may be the last man standing.”

Expert Political Judgment: How Good Is It? How Can We Know?

Expert Political Judgment: How Good Is It? How Can We Know?
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The intelligence failures surrounding the invasion of Iraq dramatically illustrate the necessity of developing standards for evaluating expert opinion. This book fills that need. Here, Philip E. Tetlock explores what constitutes good judgment in predicting future events, and looks at why experts are often wrong in their forecasts. Tetlock first discusses arguments about whether the world is too complex for people to find the tools to understand political phenomena, let alone predict the future. He evaluates predictions from experts in different fields, comparing them to predictions by well-informed laity or those based….

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Our own wisdom is often drowned out by the noise of financial pundits in the media. But how many times are they actually right. Phillip Tetlock studied 284 experts and their record is truly dismal.

Bitcoin’s Hidden Secret

One of the reasons here at preciousmetalsinvesting.com we suggest people consider investing in physical precious metals is safety. The precious metals are a relatively stable store of value that, given it’s thousands of years of history, will be there when you need it. It can’t be printed out of thin air like paper currencies. It is not likely to follow the history of every paper currency that has been over printed, or “quantitative eased” and ended up being eroded in value and eventually become worthless.

The other reason people feel it is safer is because it can be “outside the system.” This means it can be outside the banking system whose “fractional reserve system” only keeps a fraction of the total deposits on hand in the belief that not every depositor will withdraw their money on the same day. It’s not hypothocated, pooled or other fancy financial concept that basically means your specific store of wealth is not where you thought it was.

Some people have been suggesting Bitcoin as an alternative store of value that is “outside the system.” While it is true that for now it is outside a central banking system or the Federal Reserve bank whose policies can inflate the value away to me there seems to be several serious and potentially fatal flaws.

As I understand it the short version of Bitcoin is that an anonymous programmer devised a “task” that can only be performed by high powered computers working long and hard to produce an answer to a complex problem. This answer or result is the Bitcoin.

The first flaw it seems to me is that Bitcoin has no intrinsic worth other than facilitating purchase and transfers. Silver has an industrial use as well as an investment use. Gold is valued by billions of people for its use in jewelry, coins, and industrial uses. It takes real machines digging in the dirt and refining thousands of tons of ore to produce the final precious metals product.

Right now supporters are saying Bitcoin has value because it takes a computer real work over time to produce. However we have seen the phenomenal growth of computing power in just the past 20 years. What use to be considered a super computer, filled an entire room, and required a big, big budget for electricity is now out-computed by the desktop computer on your desk. Who is not to say in ten years or five years or some other time in the future the “massive task” needed to produce a Bitcoin can’t be done by the future version of your desktop computer? Who is to say in the future you might not be able to produce Bitcoins on your desktop computer of the future using spare unused CPU cycles much like the SETI@Home project does now? The massive task of SETI, the Search for Extra Terrestrial Intelligence, is portioned out to millions of home users who devote their computer’s unused CPU cycles to the task.

Right now the blockchain, which is a record of every transaction of every user, every purchase and every Bitcoin transaction history as I understand it must be downloaded to every Bitcoin users’ computer. My concern is twofold. First if there is a repository of every single transaction you have made and every single transaction every other Bitcoin user isn’t that just a little bit scary? Isn’t that just one step closer to the ability of total monitoring? If the government at some point in the future does regulate Bitcoin doesn’t that scare you to know they would have a record of your total transaction history and 100% of your transactions. Is that something you would feel comfortable with? Given the NSA and government record of their ability to keep “secrets” secret how do you feel about this? And that’s the “good guys.” What about the ability of hackers to crack many of the supposedly “secure” systems we use now and their ability to leapfrog ahead of the people we trust to keep our information private?

This video is about another potential problem I hadn’t really thought about. The “blockchain” of transactions that every Bitcoin user must download to their machine according to this video, is growing by leaps and bounds as Bitcoin grows more popular. The point of this video is that it may soon be too large for the average user to store on their local machine.

We’ve seen “Bitcoin” grow in value. There have also been periods of extreme volatility. I’m not a computer programmer but it seems like there are several potential flaws. You may be able to make some money now while Bitcoin appreciates and those “flaws” remain “potential” flaws. However I would urge you not to be the last person holding a Bitcoin when the “potential” flaw metastasizes and becomes “fatal.”

Since I am not a computer programmer I’d welcome any supporter of Bitcoin to leave a comment showing me where I am mistaken. Intelligent, specific, researched and thoughtful comments welcomed. Just calling me a XXX??? does not qualify and will not be approved for publication so don’t waste your time or mine.