"So does this mean we should buy now? To be sure, book values fall when precious metals prices decline, and costs have risen substantially since 2001 as well. So it's possible values could fall further. But in that scenario the relationship between stock prices and book value would remain in rarified territory, making the anomaly even more appealing to a contrarian investor." Continue reading →
"Ron Paul talks to LewRockwell about these enemies of freedom." Continue reading →
"Harrison noted that while gold is plunging on the commodities exchanges, he's finding it difficult to build an inventory for his shop. 'I retail gold and silver and I'm having a real difficult time right now getting physical metal,' he explained. 'It's the crazy world about gold and silver: Sometimes the paper market is going down but you can't find actual physical items.' The reason, he said, was a lack of physical product, which he blamed on private and government mints not keeping up with demand. But this same phenomenon should help prices see a bottom shortly. 'I still pay right around spot — I don't think it's going to go much lower,' Harrison said." Continue reading →
"The amount of gold transferred between accounts of London Bullion Market Association members rose sharply in May, the organization reported Friday. Total gold transfers rose by 17.2% to a daily average of 28.2 million ounces, the most in 12 years. Despite continued offloading of gold by exchange-traded funds in the Western economies, strong physical demand for gold on falling prices -- particularly from India and China -- led to a significant increase in demand, the LBMA said, The value of gold ounces transferred increased by 11.2% to a daily average of $39.8 billion, the highest level since August 2011." Continue reading →
"The stock exchange is going to start trading gold and silver by the end of this year, and platinum and palladium in 2014. Trading physical metals is expected to boost liquidity in the market and attract more participants. Russia has so far only been trading futures on gold and silver, not dealing with real metals. Gold has been occasionally sold on the over-the-counter market and the only benchmark for price was the Central bank’s quotations, Gazeta.ru reports. Now gold will get the market price in rubles. Credit institutions licensed to conduct operations with precious metals and non-banking professional brokers will be the main players on the market." Continue reading →
"The recent drop in gold prices on the Lao market has brought buyers out in droves to purchase gold jewellery while it remains cheap. According to gold shops in Vientiane, sale prices yesterday were at 5,060,000 kip (US$655) per baht-weight for gold jewellery - down about 500,000 kip per baht-weight on previous months. According to gold traders, large numbers of buyers have visited gold shops in Vientiane to purchase gold jewellery and bars as an investment. Some shops at the Talatsao Mall were stripped bare of all of their wares as a result of the gold rush." Continue reading →
"Attempts to prevent Indians from buying gold are contributing to them buying poor man’s gold, or silver. There has been a massive increase in silver demand in India in recent months and the government's meddling and controls in the gold market will likely led to even more demand for silver. While India imported 1,900 tonnes of silver in 2012, in the first five months of 2013 alone, imports have touched 2,400 tonnes. According to industry estimates, silver imports during the January-March quarter stood at 760 tonnes. Imports shot up 720 tonnes in April alone, and in May, they further swelled by 920 tonnes." Continue reading →
"There is not enough space on airlines flying in to Dubai to meet the rapidly rising demand for physical gold in the emirate since the price plunged to record lows this week. The price drop led to a rush of buyers for Dubai gold from the Middle East, South East Asia, the Balkans, Turkey and parts of Europe according to Tarek El Mdaka, the managing director of Kaloti Gold in Dubai. 'I cannot find a place for transporting gold on Emirates, on BA on Swiss Airlines this weekend,' Mr El Mdaka said. 'I am shipping in one-and-a-half to two tonnes of gold every day and it is going straight out.' Gold is in such short supply in Dubai that he is able to charge a US$3 premium per ounce." Continue reading →
"The fireworks in the gold market are still, probably, far ahead. You'll hear the explosions when consumer prices begin to rise. And that won't happen for a while. And here is where the story gets interesting... and hard to follow. The bond market has turned. This could push the economy into a deeper funk unless growth starts to pick up. But it could be years before the new trend is firmly established. We remember the last turn... in the early 1980s. Paul Volcker announced it in 1979. But it was almost four years before investors fully absorbed the news." Continue reading →
"At a 2011 Casey Research Summit, I met and heard the firsthand accounts of three gentlemen from Zimbabwe, Argentina, and Yugoslavia, who had survived hyperinflation in their home countries. Although these may sound like exotic locales with foreign problems, their terrifying histories have a lesson to teach us. Hyperinflation is like fire. We all install smoke alarms, keep fire extinguishers handy, and buy insurance to protect our homes, but most of us will never fall victim to an unplanned fire. However, when a fire does ignite, it can be catastrophic – which is why prudent people simply plan ahead." Continue reading →