GoldWatch: Why Many Respected Analysts See Gold Going Up to $10,000

Arnold Bock recently wrote an article on this site suggesting that gold would go to $10,000 by 2012 giving a host of sound reasons why that would be the case. It took the internet by storm with extremely high readership. My first reaction was "Who in their right mind would even suggest that gold will eventually reach $2,500, let alone $5,000 or even $10,000?" Well, believe it or not, Bock is not the first respected mind to come to the same conclusion. Actually, the list is rather long so in this article I will relate the reasons why just 10 such analysts hold these views.

1) Peter Schiff:

As President & Chief Global Strategist of Euro Pacific Capital, Schiff correctly called the current bear market before it began. As a result of his accurate forecasts on the U.S. stock market, economy, real estate, the mortgage meltdown, credit crunch, subprime debacle, commodities, gold and the dollar, he is becoming increasingly more renowned.

He recently was reported in Business Week as saying that "People are afraid of the debasement of all the currencies. What's surprising is that gold is still as low as it is ... Gold could reach $5,000 to $10,000 per ounce in the next 5 to 10 years.”

2) David Rosenberg:

Rosenberg, the former Merrill Lynch North American Economist and current Chief Economist and Strategist for Gluskin Sheff, an independent investment firm for high net worth individuals, believes that "$3000 an ounce on gold may yet prove to be a conservative forecast." He went on to say:

a) "if the gold price to world GDP ratio were to ever scale up to the peak three decades ago, it would imply an ultimate peak of $5,300 an ounce.

b) if the relationship between gold and the M3 money measure where to revert to the 1990 high, gold would move to $5,700 an ounce.

c) if gold were merely put on the same footing as the CPI, and head back to the previous peaks in this ratio, it would suggest $2,300 as the peak in gold — only a double from here.

d) if the gold price-M1 ratio is one that should be considered gold would go to $3,100 per ounce under the proviso that prior highs get re-established."

3) Alf Field:

Alf Field has been called the “world’s best gold analyst.” He is best known for his many spot-on predictions in the precious metals market and these are some of his determinations regarding the future price of gold;

a) "In the 1970's bull market, gold increased from a low of $35 to a peak of $850,a massive 24.3 times the low price. If the current bull market was to be of the same order, then one could project an ultimate peak of $6,221 (gold’s low price in the current cycle of $256 x 24.3).

b) Field outlined in an article back in August 2003 his conviction, as repeated in his concluding November 2008 article on the subject of Elliott Wave and the gold price "that the world, and especially the USA, was heading for a major financial crisis that would be so powerful that it would overwhelm all other factors [which] I referred to as the 'Big Kahuna' crisis. I anticipated that the Big Kahuna would give rise to the risk of a systemic meltdown, which would result in the authorities 'throwing money at problems', bailing out all the banks and large corporations that got into trouble. This would lead to the [eventual] destruction of the currency...The consequence of the systemic meltdown would be a vast increase in newly created money which would result in a massive rise in the price of gold" culminating in a "Major FIVE...to $10,000" [which] "can really only be possible in a runaway inflationary environment, something which many thinking people are suggesting has become a possibility as a result of the actions taken during the recent crisis." [Indeed,] "the odds strongly favour an inflationary outcome. Given a strong will and the ability to create any amount of new money via the electronic money machine, it seems a foregone conclusion that runaway inflation will be the end result. If Mugabe could do it in Zimbabwe, there seems little doubt that Ben Bernanke and his associates in other countries will have no trouble in doing it too."

4) Forextraders.com:

a) "As gold keeps breaking new records...the fundamental factors behind the trend remain clear:

i) increased worries about the solidness of U.S. public finances
ii) the lack of any serious government plan to resolve long standing issues related to the future of the social security system
iii) eroding credibility of the U.S. motto about a strong dollar
iv) the general weakness in the fundamentals of the global economy"

[all of which make the] purchasing of gold...a store of value that thrives when uncertainty, insecurity, and fear rule the global economy. And when we recall the never ending speculations about the U.S. dollar's demise, it is only natural that the metal will find attention regardless of the price tag, until a bubble develope[but] we are apparently very far from that turning point. Gold has some powerful dynamics behind its rise, and it doesn't seem outlandish to imagine a target of $3000 - $4000 in the next 5 years, if, as anticipated, economic activity goes for a second dip once the impact of government stimulation and private speculation and bubble-building lose their dominant effects in the markets."

b) the ten-year long correlation between gold and the Euro has broken down recently [and it is] "our expectation that gold will generate a super-bubble in the next 2-3 years, and perhaps longer, provided that policy accommodation remains in place even as investor confidence evaporates completely."

5) Harry Schultz:

Over the past five years, Harry Schultz' International Harry Schultz Letter (a paid subscription investment service) has achieved an 11.39% annualized gain, vs. 1.02% annualized for the dividend-reinvested Wilshire 5000 Total Stock Market Index. Over the past 10 years, it has achieved a 6.12% annualized gain, vs. 0.22% annualized for the total return Wilshire. Schultz specializes in grand theorizing, and his current Big Idea is that stocks and the economy will head down, then up, in two 10-years swings, complicated by counter-trend rallies like that of 2009-10.

Regarding gold Schultz says his eventual gold target is $6,000 saying "We (collectively) are poised at a heart-stopping moment in economic times. On the one extreme side, the world is on the edge of massive deflation and depression. At the other extreme is - hyperinflation. My view is that both these extremes are possible. Certainly deflation is, on balance, in play today and gaining ground as money supply is actually declining! Hyperinflation seems impossible when there is not much inflation in most economies. But ... hyperinflation is a monetary event, not an economic one, and will happen on an overnight basis, not via a general uptrend in inflation data... As I write, gold is holding very near its high, as most stock markets are bungee jumping. This implies the unexpected hyper is pending, because if it were exclusively deflation ahead, gold action would be less buoyant."

As such Schultz recommends that one put 40-50% in gold stocks and bullion; 10-15% in other commodities; 30-40% in government notes/bills/bonds; 8-10% in non-gold stocks and 0-5% in bear stock-market protection via inverse exchange-traded funds.

6) Egon von Greyerz:

von Gruyerz, Managing Director of Zurich Switzerland based Matterhorn Asset Management and founder of precious metals investment and storage company GoldSwitzerland.com predicted in an interview with CNBC Europe's Squawk Box that the gold price could rise to over $7,000 per ounce in the coming years. He noted that when adjusted for “real inflation,” as per shadowstats.com, the nominal high of $850 per ounce is equivalent to approximately $7,200 in today’s prices. Accordingly, “gold could easily go up 6 times from the current price of $1,220 and still be within normal parameters.”

He went on to say that at current prices, “There will be nowhere near sufficient gold to satisfy demand.” As a result, his firm is expecting the gold price ascent to be “relentless during the remainder of 2010, with very few major corrections but with high volatility. Moves of $100 in one day could easily happen. So gold is likely to make a top in the next few years between $5,000 and $10,000.”

7) Peter Cooper:

Cooper, author of a book entitled, appropriately "Dubai Sabbatical: The Road to $5,000 Gold" maintains that "Governments around the world have forced interest rates to artificially and unsustainably low levels to combat the global financial crisis. Low interest rates mean high bond prices. Ergo as soon as interest rates go up – as they will have to sooner or later – bond prices will fall...and if you want to keep your money out of bonds...then precious metals and, or cash are your best option.

The real kicker for gold, and even more for silver, is in the supply and demand position. Precious metals are in limited supply – that indeed is their great strength as a store of wealth – so once the shift out of bonds accelerates so will the price of gold and silver.

Now government bond markets are far bigger than global stock markets while precious metals are amongst the smallest of major asset classes. Pouring this quantity of money into a very narrow precious metals market will send gold and silver prices through the roof. $5,000 an ounce for gold is a very conservative forecast under these circumstances."

8) Rob McEwen:

McEwen, US Gold Corp. Chief Executive Officer and founder of Goldcorp Inc., believes global gold prices may increase to $5,000 an ounce between 2012 and 2014 as rising U.S. government debt weakens the dollar saying recently in a Bloomberg Television interview, “Money supply has expanded so rapidly that there are a lot more dollars looking for a steady home. Governments cannot help themselves. They want to help the economy. They are printing money. They are going into debt on a horrific scale, and that will depreciate the value of the dollar.”

He says his forecast for gold represents a “once-in-every-300-years” phenomenon while maintaining his previous forecast that gold will rise to $2,000 an ounce by the end of this year.

9) Peter Krauth:

Krauth, a highly regarded market analyst and expert in metals and mining stocks, maintains that " there are 5 sound reasons why gold will soar to $5,000 an ounce, namely:

a) Potential Inflation: Since 2001 - under benign price inflation of roughly 2.5% - gold has managed to rise about 400%. Meanwhile, the U.S. Federal Reserve is widely expected to keep short-term rates near zero through this year, leaving the door open for rampant inflation, and central banks worldwide have rolled out an unprecedented $12 trillion worth of stimulus programs, with most of the money still to be spent.

b) Exploding Investment Demand: Large institutional investors - hedge funds and pension funds - are making large allocations to gold, as are individual investors. According to the World Gold Council, demand advanced 15% from the second quarter to the third last year with a quickly developing middle class, whose members are experiencing rapid escalations in disposable income, becoming a major bullish driver for the price of gold.

c) Central Banks are Becoming Net Buyers: 2009 was first time in 20 years.

d) A Looming Currency Crisis: The "PIGS" - Portugal, Italy, Greece and Spain (or "PIIGS," if you want to include Ireland) - aren't in very good fiscal shape - and they aren't alone. Iceland has already gone over the edge. The United States, the United Kingdom, and countless other economies are struggling. That reality has ignited a crisis of confidence about fiat currencies in the minds of many investors. Under such conditions, gold - the ultimate store of value, and the oldest existing form of money on earth - will soar as investors seek to protect their purchasing power.

e) The Mania Stage Has Yet to Begin: The gold bubble that takes prices to all-time-record levels will inflate in three distinct stages - currency devaluations, growing investment and then a stratospheric ascent - and, make no mistake, the $5,000 price point will most likely be reached in this third and final phase."
Source: http://moneymorning.com/2010/01/14/gold-superspike/

And let's not forget:

10) Arnold Bock:

"No wishful thinking here! As I see it gold is going to a parabolic top of $10,000 by 2012 for very good reasons:

a) Sovereign debt defaults,
b) Bankruptcies of “too big to fail” banks and other financial entities,
c) Currency inflation and devaluations,
d) Precious metals market manipulation,
e) Insufficient physical supply, and
f) The need for a safe haven investment refuge,

All of the above will lead to rampant price inflation and drive precious metals bullion and mining stock to unimagined heights."

Conclusion

So there you have it. Many sound reasons by some of the most informed individuals around who all contend that given the financially troubled and volatile times we live in that gold (and by implication, silver) is the place to be for an outstanding return on one’s investment and to shield oneself from the rampant inflation and currency devaluations that are on the horizon.



Lorimer Wilson



Lorimer Wilson is Editor of www.FinancialArticleSummariesToday.com (F.A.S.T.) and www.MunKnee.com (Money, Monnee, Munknee!) and an economic analyst and financial writer. He is also a frequent contributor to this site and can be reached at editor@munknee.com."

Ilmu pelaburan emas - Satu kemestian sebelum membuat pelaburan emas.

Salam semua..

Agak sibuk dalam tempoh seminggu dua nie sebab menguruskan urusan transfer kerja ke Perlis selama setahun.. Actually aku cuba juga tolak offer transfer tu tapi semua executive tempat kerja aku kena pergi coz company dah set program exchange untuk executive.. Kalau tak pergi sekarang next year akan kena juga & sebelum kahwin nie lebih baik aku terima saja offer tu.. Tapi urusan jual beli emas tetap berjalan seperti biasa walaupun aku berada di Perlis.. Aku pun bukannya dok Perlis nie setahun x balik2.. Tiap2 bulan aku still kena pergi ofis lama aku untuk reporting job..

Actually apa yang aku nak share kali nie adalah tentang pentingnya ilmu pelaburan emas nie.. Ramai member or customer baru aku yang hanya membuat pelaburan emas ini secara melulu.. Bila dengar harga emas naik & trend yang meningkat setiap tahun, semua nak cuba melabur.. Bila dengar ada orang kena tipu melalui skim pelaburan emas, mereka mula menggelabah tak tentu pasal.. Aku sendiri sebelum buat pelaburan emas nie, lebih 6 bulan aku belajar tentang ilmu emas melalui ebook, seminar, blog & macam2 lagi.. So bila dah yakin & rasa sesuatu risiko pelaburan itu sesuai dengan kita baru la boleh kita mulakan langkah pertama kita..

Dan kita juga perlu ingat bahawa ilmu yang kita mahu itu tak semuanya percuma.. Kita kena sanggup keluarkan modal untuk dapatkan ilmu itu.. Itu juga terpulang kepada individu untuk membuat pelaburan dalam ilmu emas.. Lagi banyak kita melabur dalam ilmu emas maka lagi yakin & susah kita kalah dalam perjuangan pelaburan emas..

So sebelum aku abis kan sesi posting aku kali nie, aku nak promote blog yang banyak bagi aku ilmu pelaburan emas.. Kire ilmu percuma jugak la.. Ringan2 kan tangan anda untuk melawat blog saudara Syukor Hashim (jutawanemas.com)

Sekian, wassalam..

7 kesilapan lazim dalam mengurus wang

Salam semua,

JIKA anda bercadang mengukuhkan kedudukan kewangan, anda mesti mengenal pasti terlebih dulu kesilapan pengurusan kewangan yang lazim dilakukan supaya anda dapat belajar daripadanya.

Gagal Merancang
Alasan yang selalu diberikan oleh mereka yang tidak merancang kewangan ialah "Saya sibuk dengan kerja dan keluarga hingga tidak sempat untuk menguruskan kewangan saya". Sebenarnya, walaupun anda hanya tergolong dalam golongan berpendapatan sederhana, tabiat `merancang kewangan' akan membolehkan anda menjadi seorang berjaya mengumpul kekayaan di kemudian hari kelak.

Berbelanja Melebihi Kemampuan
Dewasa ini, kita sering berbelanja melebihi kemampuan akibat desakan rakan dan juga iklan di sekeliling kita. Ramai yang sanggup menghabiskan wang semata-mata untuk mengikut arus peredaran masa dan tidak mahu dianggap ketinggalan zaman. Akibatnya, ramai yang hanya mempunyai baki yang amat sedikit dalam akaun bank di hujung bulan selepas ditolak bayaran pelbagai pinjaman, kad kredit, bil dan sebagainya.

Berbelanja Menggunakan Kad Kredit
Tabiat beli dulu dan bayar kemudian adalah perkara biasa dewasa ini. Hampir setiap orang mempunyai sekurang-kurangnya satu kad kredit. Malah, ramai yang memiliki lebih daripada satu kad. Dengan bayaran minimum setiap bulan, ramai yang akan berpotensi untuk terus berbelanja. Mereka tersalah anggap mengenai bayaran minimum terbabit, dan tidak menyedari bahawa lama kelamaan ia akan menjadi hutang yang menggunung di kemudian hari.
Jika tersilap langkah, tidak mustahil anda juga boleh menjadi muflis akibat tabiat sedemikian. Justeru, pastikan anda menggunakan kad kredit secara berhemat.

Lewat Menabung Untuk Hari Tua
Untuk memulakan persaraan, kita mesti memastikan yang kita mempunyai wang mencukupi bagi menampung gaya hidup yang diinginkan selepas bersara. Bagaimanapun, masih ramai terutama mereka yang sudah hampir bersara, masih bergelut untuk mencapai jumlah simpanan diperlukan. Sepatutnya, setiap kali gaji naik, simpanan kita turut naik. Sebaliknya, apa yang berlaku adalah setiap kali gaji naik, perbelanjaan pula yang bertambah.

Melabur dalam Produk yang Tidak Bersesuaian
Terdapat pelbagai produk pelaburan di pasaran. Untuk memastikan kita melabur dalam produk pelaburan yang menepati profil risiko dan ganjaran yang diinginkan, kita memerlukan ilmu pengetahuan mengenai selok-belok pelaburan. Justeru, pastikan anda meneliti ciri sesuatu produk pelaburan berkenaan dan mengkaji kumpulan pengurusannya sebelum melabur.

Tidak Menabung untuk Waktu Kecemasan
Sesetengah orang beranggapan yang membeli insurans adalah perbuatan membazir wang. Tetapi tahukah anda bahawa tanpa insurans, kedudukan kewangan kita akan tergugat terutama jika kita hilang pendapatan/pekerjaan. Tanpa insurans atau wang simpanan, seluruh keluarga akan merana dan ketika itu juga agak terlambat untuk memikirkan bagaimana ingin mencari sumber pendapatan yang lain dengan kadar segera.

Terlampau Memikirkan Pasal Wang
Dalam usaha memupuk tabiat merancang kewangan, janganlah pula terlampau taksub mengumpul kekayaan sehingga lupa akan perkara lain yang amat bermakna dalam hidup kita seperti keluarga, kesihatan, kepuasan berkarier serta rakan dan taulan.


Akhir sekali, kita perlu sentiasa mengingatkan diri mengenai kepentingan merancang kewangan. Jika kita tidak bersungguh-sungguh dalam membina kekayaan dan menguruskan kewangan, besar kemungkinan kekayaan tidak akan berpihak kepada kita.

Wassalam..

Authorised Public Gold & Public Dinar Agent - Muhammad Zulfadli Bin Wahab

Salam semua..



Harap cuti panjang raya cina lepas dapat menenang dan meluangkan masa bersama keluarga dan orang-orang tersayang.. Cuma aku saja yang tetap kena kerja.. Dah tugas kena saja layan.. Tapi sabtu dan ahad lepas dapat aku pulang ke kampung jenguk family aku.. Sambil tu sempat gak TT ngan bro syukor.. ambil PG100 gram yang aku order sebelum raya cina hari tu.. Dapat juga info tentang how to be PG agent under bro Syukor group..



Bermula dari semalam (Ahad - 21 Februari 2010) aku telah berjaya menjadi agent Public Gold di bawah group bro Syukor (thanks Mr. Syukor atas support yang diberikan).. So lepas nie sapa2 yang ingin membeli emas Public Gold dan Public Dinar (insyaAllah next is Public Silver & Public Jewellery), boleh contact aku untuk urusniaga.. Kalau nak info tentang pelaburan emas pun boleh jugak.. Kita share the knowledge sama2.. Mana tempat yang dapat aku sampai aku cuba pergi.. Harap apa yang aku usahakan ini berjalan dengan lancar.. Sama-sama kita doakan..



Sebarang tempahan (price lock) atau temujanji sila hubungi aku di talian: 0197596689 (Zul)



Wassalam..

Pengalaman memajak emas di Ar-Rahnu Agro Bank

Salam semua,



Agak lama tak update blog nie.. maklum la banyak perkara yang perlu dilakukan sambil asyik mengintai kesempatan nak beli emas masa harga tengah menurun nie.. Alhamdulillah dah lock harga semalam & cukup sudah jumlah emas PG aku untuk layak jadi agen.. Mungkin minggu depan kalau ada kelapangan aku balik Melaka collect emas & terus selesaikan urusan pendaftaran agen PG..

Tapi itu semua hasil lepas aku pajak kan emas PG aku di Ar-Rahnu Agro Bank.. Tak banyak yang aku pajak, cuma 100 gram (50g PG bar & 50g PG coin). Mulanya nak pajak di Ar-Rahnu Bank Rakyat, tapi dapat tau dari En. Syukor (admin Jutawanemas.com) yang Bank Rakyat dah bekukan pajakan gold bars & gold coins buat sementara waktu.. Aku call pegawai Bank Rakyat cawangan Bahau untuk confirm kan hal tu & memang betul Bank Rakyat dah bekukan pajakan gold bars & gold coins buat sementara.. Tapi tak tau sampai bila..

So aku buat keputusan nak rempit emas aku kat Ar-Rahnu Agro Bank. Tujuan aku pajak emas PG aku nie adalah untuk aku beli PG 100 gram.. Memandangkan aku dah ada sedikit tunai, jadi aku ambil keputusan nak pajak 100 gram dari koleksi emas aku..

Tiba saja aku di Agro Bank cawangan Bahau, terus aku tanya pada pegawai bank di situ macam mana nak buat pajakan emas di Agro Bank.. Pegawai kat situ sangat membantu.. Penerangan jelas diberikan tentang proses dan prosedur untuk pajak emas di Agro Bank.. Lepas tue aku diminta isikan borang..

Selesai isi borang aku diminta untuk ke bilik pegawai Ar-Rahnu untuk test emas PG aku.. Proses ujian emas aku perfect!!! Semua emas aku yang nak dipajak adalah cukup berat & ketulenannya.. Kemudian maklumat-maklumat tadi diisi di dalam sistem Agro Bank oleh pegawai Ar-Rahnu kat situ & terus terpapar maklumat tentang jumlah nilai emas aku, jumlah pinjaman dan upah simpan.. Maklumat tersebut adalah seperti berikut;

1. Berat emas = 100 gram (50g PG bar & 50g PG coin)
2. Nilai marhum (nilai emas) = RM 11820
3. Jumlah pinjaman = RM 7680 (65% dari nilai marhum)
4. Upah simpan = RM 531.90 (RM0.75/RM100 nilai marhum selama 6bln.)

Kemudian pegawai Ar-Rahnu tue mintak sijil ketulenan emas PG aku.. Mungkin untuk die sah kan betul-betul yang emas aku tue tulen & milik aku.. Dengan rasa konfiden jer aku bagi kat pegawai Ar-Rahnu tue.. Die ambil & buat satu salinan untuk die.. Selesai semua tue baru la pegawai Ar-Rahnu tue print kan Surat Akuan Gadaian (seperti di gambar yang tertera).. Aku diminta tandatangan pada Surat Akuan Gadaian tue.. Lepas tu pegawai tu suruh aku tunggu di kaunter luar untuk ambil wang pinjaman tadi..

Tak panas lagi punggung aku duduk, pegawai bank di kaunter Agro Bank tu panggil aku & terus die bagi jumlah wang pinjaman tue sekali dengan Surat Akuan Gadian salinan aku.. Selesai semua proses pajakan emas PG aku kat Agro Bank.. Aku fikirkan agak kompleks prosedurnya, rupanya mudah sangat prosedurnya di tambah pulak pegawai kat Agro Bank cawangan Bahau tue memang friendly..

So sampai tu je aku nak cerita.. Maybe next posting aku nak cerita pengalaman nak jadi agen PG plak.. Maklum la dah layak jadi agen PG kn.. hehehe..

Wassalam..

Gold Trends: The Mirage of Wealth

Artikel nie dipetik dari www.GoldAndOilGuy.com

Courtesy from Trevor Koverko - Contributing Analyst

Gold Trends: The Mirage of Wealth

Dec 26th, 2009 – Gold Trends
How did your Dad pay his college tuition with a part-time summer job? Why does it take two breadwinners to support a family these days? What with all the recent fuss about gold?

The answer to these seemingly unrelated questions have a common answer.
Cause and Effect

Governments have a curious tendency to run deficits; and when they do, they have two options.

1) Decrease disbursements
This usually takes the form of spending cuts. Public servants are laid off, social programs lose funding and government bureaucracies are consolidated. Politicians typically consider spending cuts a last resort and have a dubious record of fiscal discipline in this regard.

2) Increase receipts
This usually takes the form of tax hikes and loans from foreign creditors. Politicians frown upon this option as well, especially during an election year.
There is also third, sneakier option that you may not hear about on the campaign trail or in state-of-the-union address.

3) Monetize the difference
This simply means governments fire up the printing press and create enough cash to cover the budget deficit. No cuts, no taxes. Needless to say, politicians love this option and have abused it for decades.
So what is the effect of money creation?

Inflation
“By a continuing process of inflation, governments can confiscate secretly and unobserved an important part of the wealth of their citizens.” -John Maynard Keynes

There are three things guaranteed in nations with fiat currencies: death, taxes, and inflation. Inflation is, by definition, expansion of the money supply. As the newly printed money circulates in the economy, the value of the old money is diluted. In other words, as freshly created dollars – conjured up by elected officials to balance the budget- filters into the money supply, it steals value from pre-existing dollars. That means every dollar printed by the government appropriates purchasing power from every dollar in existence. From cash in your wallet to money in your bank account and dollars held by foreign creditors, all money in the system is indiscriminately deprived of value.

Think of inflation as a hidden tax or a trade-off. When governments create money to engage in aggressive foreign policy, enact socialized health care and slash taxes, citizens pay in the form of inflation. Most of us, however, are oblivious to the root cause of inflation and tend to ignore its devastating effects.

The by-product of all this excess money in circulation is higher prices. As money loses purchasing power it takes more cash to buy things. Food, rent, gas, tuition, movie tickets and anything else denominated in dollars becomes more expensive. Even wages and salaries increase, but not at the rate of consumer goods. As a result, a larger portion of our income is allocated towards basic expenses like groceries and mortgage payments and less money is available for discretionary spending. Inflation gives us the illusion of wealth. Our stocks, houses and wages may be appreciating from a nominal standpoint, but relatively speaking, we are become poorer.

Gold Trends

This explains why even though we are being paid more, our standard of living is plummeting. Mom and Dad have to work full time to make ends meet. Summer earnings become insufficient to cover tuition and students are forced to take out massive student loans. The benefactors are the politicians who get their hands on the hot-off-the-press cash while it still has full value. By the time the new money gains velocity and consumer prices rise sharply they are long out of office collecting their pension checks.

This vicious cycle has perpetuated itself for decades and is reaching a tipping point in many countries. The United States in particular has raised the stakes with bailouts, stimulus packages and promises to insure virtually every American mortgage and bank account. Of course, tax hikes and spending cuts are not funding these bold initiatives; the monopoly-money maker at the Fed is.

Unless the fundamental laws of economics are magically repelled, inflationary pressures will ultimately engulf deflationary ones. Unfortunately, no nation is immune from the cause and effect nature of economics. Governments who venture away from the principals of sound money and create grotesque amounts of unbacked cash are locking their currency into a long-term downward trajectory.

Hyper inflation has many precedents in modern society and has crippled a myriad of robust economies.

Gold Holds Value

Gold
Gold is a dynamic metal. Aside from being industrially useful, gold has a variety of attributes that naturally lend itself as a medium of exchange. Gold is easily divisible, fungible, has a superb value to weight ratio and never decays or rusts. It is rare, difficult to mine, nearly impossible to counterfeit, and has a magnificent track record of holding its value.

In fact, according to Jeff Clark at Casey Research, in 1935, when an ounce of gold was worth $35, you could buy:
• a top-quality tailored suit for $19.75 – or 0.56 ounces of gold
• a family car for $500 – or 14.3 ounces of gold
• a house for $7,150 – or 204.2 ounces of gold

Today, with an ounce of gold worth north of $1000 an ounce:
• that same top-quality, tailored suit costs $600 – or 0.56 ounces of gold
• the family car now costs $15,000 – or 14.2 ounces of gold
• the house averages $181,100* – or 204.6 ounces of gold*
• *average house price from 2008 / gold at 2008 price of $880/ounce

If your grandfather locked $7,000 USD – the approximate value of an early 20th century home- in a vault when he was young, the state-run printing press would relentlessly dilute the purchasing power of his saved money. 75 years later, you would be hard-pressed to find a decent used car for the same amount. Conversely, if he instead purchased 200 one-ounce gold coins with his $7000 in cash and locked it in the same vault, his hard earned wealth would be remarkably preserved. With proceeds from your grandfathers gold coins you could buy an average American house, just like he could have back in 1935.

Today, gold’s inverse relationship with the USD continues. As money creation continues to destroy the value of USD’s, gold casually mirrors the decline. In essence, the fuss about gold is really just a reaction to drastic government spending programs.

Implications, Considerations and Recommendations

The prospects of gold look increasingly bullish.

• Gold as a hedge against inflation is becoming more mainstream. It is only a matter of time before inflation rears its ugly head.
• Central banks are expected to be net buyers of gold in 2010 for the first time in decades.
• Gold production is in a state of perpetual decline. Old mines are closing at alarming rate while capital for new mines has dried up. New deposits are being reported less frequently and at lower grades.
• China is allowing and even encouraging its citizens to buy physical gold.
• Ben Bernake occasionally refers to his mystical exit strategy yet refuses to budge interest rates. All sign point to more stimulus, more bailouts and more government spending.

This all adds up to gold turning the corner in 2010 and cementing its bull-market status.

In the context of recent events, any day trader will tell you that unprecedented interventionism by world leaders has spelled unprecedented volatility in stocks and commodities. From a macro-economic standpoint, we expect this trend to continue for the foreseeable future. Technical analysis and experienced advice is vital to playing today’s gold market profitably. Opportunities are everywhere.

As gold continues to march higher at the expense of the USD, there are many ways to profit. Purchasing physical gold bullion, gold ETFs and gold funds are a great way to insure your wealth against over-zealous elected officials. For even better returns, consider leveraged plays like gold producers and explorers. Regardless of the platform, it is highly recommended that you have a portion of your portfolio exposed to gold in these uncertain times. And if you want to pleasantly surprise your future grand kids, please, don’t bury stacks on 20’s in a time capsule.

Wassalam..

Tambah koleksi emas - 3 x 1 dinar Public Dinar

Salam semua..

Just nak update tentang koleksi emas aku.. 2 minggu lepas aku berjaya beli 3 keping 1 dinar Public Dinar. Baru semalam akudapat ambil dinar2 tu sebab aku outstation minggu lepas.. Harga aku beli 1 dinar 2 minggu lepas adalah RM581 tapi dalam minggu nie harga ada turun sikit.. Itu tak perlu risau sebab sekarang tengah market correction.. Biasalah hari tu harga dah mencanak naik, kenalah ada correction sket.. Tapi hopefully aku dapat sambar 100g PG before market naik balik..
Target minggu depan aku nak sambar 100g PG..

Jadi aku hanya tinggal 100g PG saja untuk lengkapkan koleksi jadi agen PG.. Pastu dah boleh buat bisness gold nie.. hehehe.. Harap semua dapat doakan aku dan aku akan sentiasa support pada sapa yang inginkan maklumat dan bantuan tentang pelaburan & bisness emas nie..

Itu saja update aku kali nie.. jumpa lagi di next posting..

SEMUA MAMPU MEMILIKI EMAS!!!

Wassalam..