Precious Metals Review
From precious metals expert Jim Sinclair, quoted in a posting on Greg Hunter’s USAWatchdog website on March 16th:
”On Russia countering Western sanctions, Sinclair says watch the ‘struggling dollar’ and Russia accepting any currency for oil and natural gas. Sinclair explains, ‘It’s struggling . . . because it smells the real teeth of retaliation for sanctions being in the simple acceptance of any currency whatsoever for payment for gas to Europe. Believe me, they will settle in other currencies . . . It makes energy cheaper. Why in the world would anyone want to pay in dollars if they can pay in their own currency? Russia could retaliate in a way that would have phenomenal impact on the U.S. dollar . . . Russia has the upper hand. They have it in their ability to turn the U.S. economy upside down and into collapse. There is no question whatsoever. Putin doesn’t need a nuclear bomb. He has a nuclear economic bomb that he can set off at any time.’
What would the price of gold be this year? Sinclair predicts, ‘Gold has $2,000 an ounce in its sites in 2014.’ On silver, Sinclair says, ‘Silver is gold on steroids. When gold takes off, silver goes up faster . . . So, the idea you are going to get an old high on silver or better is a given.’ ”
. . . and from former Congressman Dr. Ron Paul, in his weekly ”Texas Straight Talk” message on March 16th:
”The reaction of Sen. Dianne Feinstein (D-CA) to last week’s revelations that the CIA secretly searched Senate Intelligence Committee computers reveals much about what the elites in government think about the rest of us. ‘Spy on thee, but not on me!’ ”
”The essence of this problem has to do with the difficulty in managing the US empire. When the government behaves as an empire rather than as a republic, lying to the rest of us is permissible. They spy on everybody because they don’t trust anybody. The answer is obvious: rein in the CIA; remove its authority to conduct these kinds of covert actions. Rein in government. Lawmakers should not defend Fourth Amendment rights only when their staffs have been violated. They should do it all the time for all of us. The people’s branch of government must stand up for the people. Let’s hope that Sen. Feinstein has had her wake-up call and will now finally start defending the rest of us against a government that increasingly sees us as the enemy. ”
. . . and from money manager and author Bob Wiedemer, in his ”Aftershock Newsletter” for March 2014:
”Today the Fed and Congress dedicate much of their energy to keeping Wall Street happy and the financial bubbles high, with little regard for the long-term integrity of the market or the economy in general. The Fed has printed $3 trillion since the financial crisis — its $1 trillion of printed money in 2013 alone was more than it had printed in the Fed’s entire history prior to 2007. The Treasury has borrowed $5 trillion since the crisis, far more than the economy has grown in that time. Sure, we’ve reduced the annual deficit, but it’s still triple what it was in 2007.
Far from being a critic or an adversary of Wall Street, today the government puts an incredible amount of power into maintaining our asset bubbles, and there is every reason to expect that that will continue. This would be fine if there was no cost to it, but history shows that excessive borrowing and printing always comes with disastrous consequences. And in spite of what anyone may tell you, once the snowball gets rolling, there’s little political will to stop it because the pain is enormous.”
. . . and from Todd G. Buchholz, in an editorial on the ”Issues & Insights” page of Investor’s Business Daily on March 19th:
”Cows did not care much for railroads in the 1880s. Those steel grills on the front of locomotives are called cow-catchers, and would turn live steer into instant hamburger.
That’s pretty much the story of economic progress, which the Austrian economist Joseph Schumpeter called ‘creative destruction.’ There’s often a lot of blood left on the ground, but it’s largely been worth the price.”
”Of course, it’s wrong to claim all progress is good and new industries create only good and never inflict pain. A free market is not a pain-free market. Good economic policies create losers, but the winners are either more plentiful in number or create large enough overall gains to compensate the losers.
Looking backward to prop up old jobs, old buildings and old cattle is not a strategy for success. It’s the desperate flinch of entrenched interests.
Jerry Seinfeld does a funny routine teasing the U.S. Post Office, noting we should not be surprised when a business model based on a 1630s model of licking, walking and random pennies cannot compete. ‘If you really want to be helpful to us, just open the letters, read ‘em and email us what it says.’
Of course, these days we could go with the Seinfeld plan and give the job of opening those letters to NSA snoops. That’ll protect and preserve some extra jobs in Washington, D.C.”
. . . and from Myra P. Saefong, in a posting on the MarketWatch website on March 21st:
”After a 28% price plunge in 2013, the worst since at least 1984, analysts weren’t expecting much from gold this year. Many big banks were forecasting average 2014 prices below $1,300 an ounce, down from last year’s average of $1,413. But the precious metal has already managed to outperform U.S. stocks, bonds, emerging markets and the dollar.”
”The metal’s performance has been impressive against a bevy of assets. But its path is far from set. Developments between Ukraine, Russia and the West are still fluid, and hints from Federal Reserve Chairwoman Janet Yellen that a U.S. interest-rate hike could take place sooner rather than later could make bond yields more attractive. Still, if you were one of those contrarians who were ‘quietly bullish’ in January, we’ll forgive some back-patting.
Year to date, gold futures prices have climbed around 11%, far outpacing a slightly more than 1% gain for the S&P 500 Index.”
‘‘Gold often trades inversely with the U.S. dollar — everyone’s heard that before, but the year-to-date chart is really starting to show it. As the dollar has fallen this year, gold prices have climbed.”
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