Sunday, November 27, 2011

Think about silver before investing

When I first discovered why I should buy Silver and protect myself from the coming devaluation of our currencies, it still took me a few months to act because there is a lot of misinformation surrounding this precious metal. This article will help those that are still unsure about buying silver by laying out the facts about what has been dubbed as perhaps the greatest investment opportunity of our lifetime.

If you are paying attention you will have noticed that Gold has been increasing steadily in value since the beginning of the last decade. This trend is set to continue throughout this decade as smart investors realize that gold is a protection against inflation and the destruction of the purchasing power of all currencies.

If gold is set to rise, then shouldn't you be buying it? Perhaps, but many people believe that silver is a far better profit opportunity due to some astonishing fundamental reasons.

(1) The Gold-Silver ratio: Throughout history the ratio between gold and silver has been in the range of 12:1 to 16:1. What this means is that for every ounce of gold you would be able to exchange it for 12 to 16 ounces of silver. This was generally the case because there is approximately 12 to 16 times more silver in the earth's crust than there is gold.

Although this ratio has remained quite constant, the current ratio is 50:1. With one ounce of gold you can currently buy a whopping 50 ounces of silver. What this means is that silver is currently extremely undervalued compared to gold. As gold gains in value over this coming decade, silver will gain even more as the ratio of Silver to Gold reverts to the mean. This provides a massive profit potential for those that are informed. Here is a good resource to learn more about this ratio -Silver to Gold Ratio.

(2) Above ground supply: In 1950 there was 10 billion available above ground ounces of silver. By 1980 that number shrank to 3.5 billion ounces. Now in 2011 it is estimated that above ground supply has dropped to approximately 500 million to 700 million ounces.

The reason that the supply of silver is shrinking is because it has become the second most used commodity in our society. Currently there are around 10,000 applications for silver including but not limited to; electronics, photography, jewelry, mirrors, and solar panels. The only commodity with more applications is oil which currently has about 30,000 applications.

(3) Non-recyclable: Silver is used in 10,000 applications but almost all of these applications use microscopic amounts of silver. For example most computers use approximately 1/10th of an ounce of silver. At $30 per ounce that silver has a value of $3 and is thus not economically viable to retrieve. As a result most silver is not-recycled and is lost to landfills forever. This only places more pressure on the supply side.

In conclusion, most people are putting their cash into this precious metal because of the coming inflation but there are many other reasons for investing in silver such as the reasons listed above. As with any investment there are risks that you should consider, so do your homework, and good luck! ~Conor Hughes~

Thursday, November 24, 2011

Owning silver means you profit whether the economy tanks or not

NEW YORK (Commodity Online): Buying Silver is a no brainer as far Jim Rogers is concerned. And why not? Considering that governments are printing money, silver will prove to be a very good bet.

In a recent CNBC interview, Rogers says - “Throughout history, when things have gone wrong, they print money…when they print money, you should own silver, you should own rice, you should own real assets. Gold could go down a fair bit more…but I’m certainly going to buy more gold if it goes down and silver.

“I’m long commodities and currencies, because if the world gets better, the shortages in commodities will make sure I make money. If the world economy doesn’t get better, I’d rather own commodities because they’re [central banks] going to print money.” he added.

Bottom line – you profit in both ways whether the economy slips into recession or the economy rebounds and grows

He noted that the MF Global fiasco has created a temporary forced selling in the markets and this will provide an opportunity for buyers to accumulate more silver.

Though he remained uncertain as to the magnitude by which Gold and Silver will fall, he however remarked that he will be ready with his chequebook if silver and gold fall further.

Stephen Leeb, the noted American economist, had earlier said that he expected silver to hit at least $100/oz

Wednesday, November 23, 2011

Halaqah TV9 : Dinar Emas


Walaupun video ini agak panjang durasinya namun, ia amat berbaloi untuk ditonton jika berbandingkan dengan nilai ilmu yang akan disampaikan. Semoga ilmu yang dikongsikan akan bermanfaat.

Alhamdulillah...saban hari semakin ramai masyarakat kita yang mulai sedar kepentingan Emas & Perak sebagai medium untuk bermuamalat dan penyimpan nilai kekayaan sebenarnya. 
Sudah terlalu lama kita dimomokkan oleh permainan Yahudi yang memanipulasikan angka-angka nilai fiat (duit kertas) di pasaran saham mahupun di bank-bank seantero dunia (dimana kita kononnya menyimpan wang fiat kita sebagai asset masa hadapan). Sedar atau tidak, inflasi terus menekan nilai wang fiat menjadikannya semakin kecil dan lambat laun tidak bernilai dek sifat tamak manusia yang kononnya menggelar diri sebagai kuasa ekonomi dunia.
Namun, dunia kian berubah..segala yang haq pasti akan terungkap jua akhirnya. Emas & Perak (atau lebih dikenali sebagai The God money) terus menjadi buruan bagi mereka-mereka yang mempunyai ILMU kerana "intrinsic value" yang ada pada kedua-dua logam ini dan nilainya yang hampir stabil sepanjang zaman. Emas & Perak sesuai dijadikan sebagai simpanan(asset yang bernilai) atau sebagai medium untuk bermuaamalat.
Semoga lebih banyak pendedahan dan pendidikan dalam media massa arus perdana tentang ilmu ekonomi Islam dapat dikupas dengan harapan dapat membuka mata lebih ramai insan-insan yang masih ragu-ragu diluar sana untuk mempersiapkan diri menghadapi kegawatan ekonomi yang bakal melanda dunia tidak lama lagi. Tidak dilupa juga menjadi tugas kita, untuk sama-sama menyampaikan ilmu yang kita miliki agar dapat kita setidak-tidaknya menyelamatkan ekonomi diri,keluarga dan ummah.

Saturday, November 19, 2011

Print or Die



NEW YORK : Someone's going to print a boatload of money—and soon. And when that happens, assets like Gold and oil will rise in price. This is not a guess. It is a fact. We are already seeing the wise guys and speculators get their early bets in.


They will do it in Europe with some kind of ultra massive TARP program. The French and Germans have already knocked on every door, looking to borrow the specie they need to keep an entire continent solvent. It just ain't happening. (Heck, the Chinese laughed in their faces and told them to work harder..hehe..)

That's why European bond prices are spiking. No one in their right mind wants to lend to these guys when a 50% haircut—at best!—is lurking right around the corner.

Seriously, entire governments are falling here. They're not just on the fringe anymore. And the central bankers who are replacing various heads of states are left with only one last trick: printing trillions of new euros.

This will, of course, dramatically reduce the value of the euro. That's one of the points of the whole devilish exercise (the other being to print the very cash required to pay these bills).

You borrow a euro that's worth $X. You pay back a euro that's worth $3/4X. And your creditor puts up with it so as to avoid a complete default that would net him pennies on the euro.


We're Going to Do It, Too

Now, don't go getting all chest-thumping proud and jingoistic about all this. Because we are going to do it here, too.

According to the San Francisco Federal Reserve Bank, the European fiasco now has better than even odds of tanking the U.S. economy in the first six months of 2012.

“A European sovereign debt default may well sink the United States back into recession. However, if we navigate the storm through the second half of 2012, it appears that danger will recede rapidly in 2013.”

And by "navigate," the bank only means one thing: "Invent enormous wads of new currency out of thin air."

Print or Die

Forget about terms like QE1 or QE2 or QE3. Dollar creation is now a permanent part of Washington policy.

The Fed has already declared that it will continue "lending" dollars to American banks at 0% and buying up every bond the treasury sees fit to print for the foreseeable future.

And that was back when they were only fighting "slow growth."Now they are "navigating an odds-on recession" slated to hit just as voters are deciding whether or not this government will fall.

What's more, when the Europeans start printing, it will force the euro down against the dollar—allowing them to export more easily into American markets and making it that much harder for us to sell goods into theirs.

It is an absolute lock that we will strike back with our own printing presses.

Once again, the politicians have no choice: It's either print away the awesome burden of our debts (and each and every Nickel you save or earn), or face political Armageddon.

The Wise Guys Are Already on Board. Dollar down, Gold and oil up. Period.

Source: theaureport

Wednesday, November 9, 2011

Gold Investing News


“If gold is not between $1,500 and $2,000 in the next 18 months, I’m dead wrong.”
That was John Embry, Sprott Asset Management’s chief investment strategist, speaking to Mineweb’s Geoff Candy in August of 2010.

The price of gold was regaining the $1,200 level it had first breached in November of 2009 and the market was abuzz with bullish fever over expectations of further quantitative easing measures by the US Fed. News that China was seeking to expand its gold market also added to the excitement. The People’s Bank of China had announced it would allow more commercial banks to import and export gold as well as participate in trading at the Shanghai Gold Exchange.

Embry based his price forecast on a lack of optimism for a “sustainable economic recovery in the western world” and the belief that governments would continue to resort to “throwing so much money at this, it’s going to make your head spin.”

According to a poll Gold Investing News conducted following Embry’s prediction, our readers were just as bullish if not more so. Over 35 percent of the 373 respondents felt Embry was “spot on!” while another nearly 35 percent said gold would reach much higher than $2,000 an ounce.

Although at the time Embry’s forecast for gold near the $2,000 level in 2012 seemed a bit optimistic to some analysts, he may have even undershot the mark. Just over a year later, the price of gold reached a record $1,923 an ounce — before falling back below $1,800 last week. Although the yellow metal is struggling to maintain that level for now, many analysts believe gold could soon reach $2,000 an ounce and move even higher in 2012.

Major institution’s 2012 gold price predictions
Many of the world’s major financial institutions are now calling for the price of gold to reach $2,000 an ounce and higher in 2012.

Barclays Capital
“We expect prices to average $1,875 per ounce in the fourth quarter 2011 and $2,000 per ounce on an annual average basis in 2012 as the macro insecurity persists, investor appetite remains positive and central banks are set to remain net buyers while the physical market continues to provide support at increasingly higher levels,” said Barclays Capital analyst, Suki Cooper.

Citigroup
If sovereign debt woes explode, gold may “briefly spike” to between $2,000 and $2,500 an ounce over the next year, remaining above an average $1,200 in the long-term, said Citigroup Inc.

Commerzbank
“I believe gold will still be a very heavily demanded safe-haven trade,” says Axel Rudolph, Commerzbank technical strategist, who believes gold may reach $2,000 in October on “another crisis.”

GFMS
According to the most recent Thomson Reuters GFMS Gold Survey 2011 update, gold could “easily” reach above $2,000 an ounce by the end of this year on continuing sovereign debt concerns and volatility in the currency markets. “We expect a major increase in world investment in the second half of this year.”

HSBC
HSBC is forecasting a gold price of $2,025 an ounce for 2012 and $1,850 an ounce for 2013. “We believe gold’s 10-year bull market remains firmly intact, despite high volatility, with prices up 29 percent already this year,” said the global banking and financial services company. “The euro zone debt crisis, currency wars, and deep uncertainty among investors are among the factors driving prices higher.”

Morgan Stanley
According to Morgan Stanley analysts, gold has about an 85 percent chance of trading between $1,819 an ounce and $2,085 an ounce in 2012.

Societe Generale
“We expect investor momentum to take gold through $2,000 an ounce before the end of 2011,” says Societe Generale. The bank sees the price of gold reaching $2,275 an ounce in 2012. “The gold market is underpinned by the ‘grass roots’ demand and this appears to be remarkably resilient.”
TD Securities

TD Securities expects gold “to hit highs of well above $2,000/oz. in the coming months on lower bond yields, expectations of poor risky assets returns and general risk aversion owing to uncertain global economic conditions.” Its gold forecast puts the yellow metal at $1,975 in 2012 and $1,750 in 2013.

UBS
“Our expectations for gold in 2012 and beyond are governed to a large extent by our expectations for US interest rates and the health of the global economy,” said UBS, which has pinned its 2012 average gold price at $2,075 an ounce with a forecast of $1,725 for 2013.

Embry’s updated 2012 forecast
What’s Embry’s latest gold forecast?
“You never want a date and price in the same sentence — but I’m getting old and it doesn’t bother me anymore. I’d be real disappointed if gold wasn’t in excess of $2500 in the next 12 months,” said Sprott’s chief investment strategist in yet another interview with Mineweb’s Geoff Candy last month.
Embry poignantly summed up his take on what’s fueling the upward trend in gold prices while speaking with Business Television last week: “Everyone wonders where gold’s going and where silver‘s going, I prefer to look at where are currencies going? Today we’re in the later stages of yet another failed experiment in fiat papered currencies and they’re losing value at an alarming rate and as a result gold is rising in value denominated in these failing currencies,” explained Embry.

“That is the significance. It isn’t that gold is in a bubble because it’s up in price, it’s the fact that the currencies are falling in value almost every day.”

Seeing that Embry was “spot on!” with the 2012 gold price forecast he dished in 2010, it’s not hard to fathom that the investment guru may just be proven right again in the coming months.