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The Solari Report – 12 Feb 2009
This is the second week of the month. That means I am headed over to Westpoint, Tennessee on Thursday, February 12, to join Franklin Sanders and his family for dinner at the Sanders homestead down the road from their Top of the World Farm.
(Sheep and shepherd at the Top of the World Farm)
A lively dinner discussion will be followed by our monthly precious metals update by bridge call for this week’s Solari Report.
In addition to our comments on current market events and response to subscriber questions, we will also answer the most frequently asked questions that Franklin and his team at the Moneychanger get about buying gold and silver coins. This includes his Ten Commandments of Gold and Silver Buying
If you are a subscriber to The Solari Report, you can post your questions at your private panel or feel free to also post them at this blog post. If you would like to learn more about The Solari Report and subscribe, click here.
I look forward to speaking with you. Doing The Solari Report “in cahoots” with you is what I love!
Does anyone really know how much gold is stored in private vaults around the world. When I read the story of some 20,000 tons of Japan’s Hirohitos loot being dug up in the Philippines after WW2 and it subsequently disappearing into the night and considering the world current production is around 1200 tons per year…….I suspect that gold like diamonds is controlled and totally manipulated in its price fluctuations.I also talked to a contractor working at a BHP Billiton open cut mine in Australia and he told me how they continually uncover massive veins of gold…mark them and leave them in the ground untouched………..somebody please enlighten me………I dont want to lose my shirt speculating with gold.
Greg:
Take a look at this:
http://solari.com/blog/?p=1444
Catherine
Catherine,
I’m a little confused. It seems that the logic of investing in precious medals revolves primarily around the rational that gold and silver is a fiat currency inflation hedge and principle preservation strategy. You have posted articles on the blog that show the total amount of new credit created for bailout purposes to exceed $8.5 Trillion. However, at the market level we are seeing an unprecedented drop in prices across the board and demand for everything but non-essentials collapse. As unemployment increases, credit collapses and deleveraging runs it’s course cash is becoming more and more scarce. That signals deflation more than inflation, can you speak to the deflationary forces present in the current environment vs the inflationary forces evidenced by the unprecedented creation of new credit? How do the lessons learned from the Japanese zombie bank model figure into the current crisis?
Here is an expansion on my first question above which restate is:
Is there enough gold and silver to support a currency system for 6.5 billion people?
Some data to this specific question comes from an essay written by Nick Barisheff posted here:
http://seekingalpha.com/article/115682-making-money-in-troubled-times-with-gold
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All the arguments of bullish gold see to hold, except: It’s like war and the govt’s and central banks will do everything in their immense power to stop gold from rising too high. Also all the gold in the world, we’re told, isn’t enough to monetize the system. Please comment.