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SilverAndGoldShop.com - News
When Bad is Good; What is Money Anyway? ~ Dan Eden
May 28 , 2011
Issue 92
Today's Gold/Silver Ratio: 40/1 Down

Issue 109

Gold: $1538.10/ Silver: $38.12

SGS Notes: Still a lot of chatter out there about a return to the gold standard… honest money… increasing investment demand for gold and silver in China and India… (What do THEY know that we don't?)

When Bad is Good; What is Money Anyway?

Dan Eden


Here's the REAL reason the US Dollar is shrinking... and will continue to shrink!

When you finish reading this article, you may change your mind about the war in Iraq.

I've written about extraterrestrials, HAARP and even the end of the world. So when Viewzone asked me to write about a boring topic like "global currency" I was inclined to say, "no way!" Heck, I can't even balance my checkbook. Money has always slipped through my fingers like beach sand. But I like a challenge, so here it is.

The information they gave me came from a brilliant investigative journalist, Rudo de Ruijter. It took time for me to digest what he wrote, and even more time to understand the importance of what he revealed. I must confess, I'm still shocked by what I learned.

This information is not new. International bankers and politicians know these facts all too well. It's the ordinary people -- the little guys like us -- who are told that these things are too complex for us to understand; yet it is because of "global currency" that we invaded Iraq, Afghanistan and, perhaps soon, also Iran. Sure, it's all about oil -- but not the way you think.

What Is Money?

At the dawn of civilization, the earliest way to get something that you needed was called barter. I give you a cow and you build me a hut to live in. But what if I want a tiny hut? Do I give you half a cow? Placing a standard value on goods and services was first achieved through the use of currency, or money. Almost every culture has money. Ancient cultures used everything from sea shells and beads to huge circular stones to buy and sell. Eventually, precious metals were used and more recently the standard currency has been based on gold.

The value of precious metal is determined by its weight. Instead of carrying chunks or nuggets of gold and silver, early empires made standard "coins" of the metals and set a standard valuein the marketplace. Coins were great for most transactions, but they were heavy and wore out your pants pockets quickly. Soon a new idea, paper money, was invented.

The original idea behind paper money was convenience. Each piece of paper represented a specific weight of a precious metal, usually silver or gold, that was kept somewhere in a treasury. If an individual wanted to, he could exchange the paper money for the gold or silver that it represented. It was all based on trust and a promise. In fact, the early paper money in America was called a "promisary note."

If you can find old dollar bills, you will read the promise written on each note. You will also notice that the notes are numbered. In this way, each note is unique and represents a corresponding weight of silver or gold in the US Treasury vaults.

On a global scale, when someone in America bought something from a foreign country, they would pay in US dollars. The foreign company would then go to their local bank and exchange the dollars for their local currency. When foreign banks had a surplus of US dollars, they would then exchange them for gold. This meant that the US Treasury was always needing to acquire more gold to replenish its vaults and maintain the "gold backed" dollars in circulation.

Prior to 1971 the dollars of the US were trusted all over the world. Each dollar was based on 1/35th ounce of gold, held in the US Treasury. The value of gold was fixed by law at 35 dollars = 1 ounce, so the value of each dollar was very stable. This made the dollar attractive as an international currency. But in 1971 this all changed.

Click Here to read the rest of this article…

Quote of the Week                               

 

Other Articles     

The Gold Standard
Gold Standard Institute News


The Patriotic and Moral Imperative for Owning Gold and Silver
Johnny Silver Bear


Indian Investors Returning to Silver


UAE Precious Metals Demand


China Gold Demand


Mexico to Back Peso With Silver


Return to Honest Money

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Audio/Video      


Bill Murphy
GATA

Chairman of the Gold Anti-Trust Action Committee, and James Turk, Director of the GoldMoney Foundation examine how the silver futures market remains in backwardation, and how intense demand for the physical metal could render the paper market irrelevant.

See Also
The Collapse of the Dollar

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Get Ready For Accelerating Devaluation of All Fiat Currencies ~ John Rubino & Chris Martenson
May 21 , 2011
Issue 92
Today's Gold/Silver Ratio: 43/1 Up

Issue 108

Gold: $1515.10/ Silver: $35.17

SGS Notes: Glad to be back with a new newsletter this week… our computers were down last week and in the shop for several days getting their 'tune up'…

This week, the focus is on the U.S. Dollar and the high potential for its collapse. I know I will be accused of being a 'doom and gloomer' for posting these articles… but when you see similar content being put out by many places, and by people of high respectability and high expertise in the area of economics and monetary system… then you have to sit up and take notice. While we all want to remain positive in the face of adversity, it is folly to refuse to be informed and prepared for potential crises that may be coming our way. I don't make this stuff up… I simply report it to educate and inform… and to help others be as prepared as possible…

Get Ready For Accelerating Devaluation of All Fiat Currencies

John Rubino


"What is happening now is we are exporting our inflation to the rest of the world. We are forcing countries like Brazil and China to endure the pain that we should be enduring. Brazil's interest rates are like 12% right now. China is doing something new every couple of days to scale back bank lending, spending domestically, and everything. They are countries where a big part of the population makes just a few dollars a day. Rising food and energy prices are devastating for these guys. They do not really control the global price of energy and food, yet they have to endure the pain of slowing their economies down and throwing people out of work. Have them have to spend more and more of their money on food and energy so we can keep on borrowing and growing. The government can keep on spending as much as they want to here.

Clearly that is unsustainable. At some point these countries are going to say 'No, we want our currencies to depreciate, too. We want to be able to continue to export to you.' So what we will end up with is sort of like what happened in the depression. Everybody was trying to cut the value of their currencies at the same time. What that leads to obviously is global inflation instead of just localized inflation where a few countries are debasing their currencies. You have got everybody doing it at once. That is because the US, with the world's reserve currency, basically controls this process. We have chosen to decrease the value of the dollar dramatically over the next few years. That is going to force the rest of the world to do the same thing or endure a rocketing economy or a rocketing currency value and recession. No elected politician can put up with that.

So what's out there? Maybe after a mini recession or some kind of correction in the next year or two is another round -- an even bigger round -- of global inflation. Basically all the fiat currencies of the world start decreasing in value at an accelerating rate. So we basically destroy most of them. At some point out there, the whole concept of fiat currency, of governments in charge of their own monetary printing presses is going to be discredited."


Click Here for full transcript of interview with Chris Martenson & John Rubino

 

Quote of the Week                               

 

Fractionals Are Back                               

We have brought back the silver fractional rounds…
½ oz, ¼ oz and now 1/10 oz
.999 Fine silver rounds are now available for purchase.

 

Does SGS BUY BACK Silver?

We get inquiries about this all the time… Our answer is a qualified 'Yes'.
We are purchasing inventory replacement all the time. Consequently, timing is everything.

Customers have first priority over our vendors.
So, while we don't recommend selling at this time… we understand that circumstances sometimes dictate liquidation.

Don't hesitate to call and ask us if you need to liquidate some of your holdings.

Other Articles      

Final Checklist for Meltdown
Bix Weir

 

Dollar Collapse Will Shock The World
James Turk

 

The End of The Dollar As We Know It
Part 2 & Part 3
The Daily Reckoning

 

Hyperinflation & US Dollar Collapse
John Williams

 

States Honest Money Resolutions

 

All Paper Currencies Are Dying
Larry Edelson

 

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Audio/Video      

 

Biggest Names Discussion Of Silver

Hosted by David Morgan:
Eric Sprott, Bill Murphy, Rob Kirby, Bob Quartermain, Sean SGTReport and James Anderson



Part 1

Part 2


Part 3


Part 4

Note: If you are getting duplicates of the S&GS Newsletter,
please eMail us and let us know.
Contact us at info@silverandgoldshop.com
Phone: 888-203-2232 x 1
The Final Fight ~ Silver Shield
May 7 , 2011
Issue 92
Today's Gold/Silver Ratio: 42/1 Up

Issue 107

Gold: $1500.70/ Silver: $35.85

SGS Notes: :Yes, silver took it on the chin this week. What we have seen in the dramatic price drop for silver and gold has been a carefully orchestrated manipulation of prices by some powerful folks in high places… If you have been following the SGS newsletter for very long, you would know that we've been reporting on this faithfully from the beginning. It's been going on for several years now… and with all the exposé going on by some honest and persistent men in the industry, the fire is heating up under this issue. So this week I am devoting the newsletter to the various commentaries from these people who have reported the truth about what's happening. There's a lot to 'feast on' this week.

This is NOT a normal 'market correction' as some would have us think…Remember that investing in physical silver and gold is not the same as paper … yet the dynamics in paper have a dramatic effect on physical. (Also noteworthy this week… huge difference in Gold:Silver ratio… last week was 32:1

Bear in mind, that all of manipulation forcing prices downward have long-term effects on this market beyond the prices… it creates a disincentive for mines to produce and refine silver… a disincentive for research & development on new sources for silver. Consequently, there is a very real shortage of phyical metals in the market…

And, again, the warning is issue repeatedly: Hold on for the Long Haul. This is NOT the time to SELL… it is the time to ACQUIRE.

Silver Shield: The Final Fight

This is the final fight of physical and paper silver, so hold the line and get ready to take it to the enemy. The Elite have literally thrown everything they have at the silver markets to try to make silver investors weak in the knees and cry uncle. Like a bully trying to take your lunch money by twisting your arm.

This can only end one of two ways; you give up and the banksters laugh or you stand up and say enough! These tactics may work on some paper traders who are literally forced by margin calls. For those who have listened to me, and bought only physical, this recent manipulation is only a subsidized discount to buy more, for less.

The CME has raised the margin requirements an unprecedented 5 times in less than 2 weeks to force higher and higher costs on paper traders to force them to sell. The higher the costs and the lower the price of the underlying asset is a toxic combination in the paper market.

I saw this happen in the 2008 rout, where they took it down 60% in a matter of months. It was the worst time to be a silver holder, but I knew the real story and held on when everything in the world said get out. I held on and even added to my position to then see a return of close to 500% in the next 2 years.

Read Entire Article Here


Collusion by Fed Officials and Commodity Exchange Heads Has Its Intended Effect
Trader Dan


I find it amazing how effectively these people can coordinate their policies with the heads of the commodity exchanges and their pals at the big banks who are perennial shorts in the markets and have now managed to pluck the money out of hundreds of thousands of commodity trading accounts enriching the big banks (government sponsored hedge funds) in the process. Nothing like a freely operating financial system where the playing field is completely level and no one has an advantage over the next guy!

By their continued hiking of silver margins, the exchange effectively removed the liquidity in the silver market that the smaller specs have been providing. That left the market vulnerable to severe drops in price as these specs exited due to financial constraints which then removed a source of potential bids under the market as the CFTC commitments report has shown the small specs to be good buyers in the silver market. Even the bigger hedge funds are impacted by such a sharp hike in margins as their losses in silver then precipitate even more losses across other assorted commodity markets due to the cascading effect of mounting paper losses and margin calls and the need to raise cash.


As the silver market tanked the exchange officials could then warn about Clearinghouse integrity and have more reasons to drive margins even higher as they point to the increased volatility, volatility which I might add, they created themselves by hiking margins to such an extreme degree.
Read Full Article Here

 

Quote of the Week                               

A Few Notes...      

 

Some things we are seeing as the market demand is increasing…and things which have an impact on our customers…

  • Longer wait times for our inventory orders

  • Higher Premiums, especially for Silver Eagles

  • Product sell-out (from our suppliers)
Rest assured, however, that we are doing our utmost to get products out the door to YOU and will continue to provide you with the best service possible.

 


Honoring All Our Mothers…

 

Other Articles      

It Was All A COMEX Affair
Ed Steer

I Smell BS In The Silver Markets
Silver Shield

The End of OZ
Bix Weir

Where Did Silver Come From & Where Is It Going?


Julian Phillips

Real Reason for NATO Attack on Libya

Nixonomics at the New York Times
Gary North

Gold and Silver Storm The Fed


Darryl Robert Schoon

Gold and Silver To Explode Again


John Hathaway

Short Term Volatility but Silver will Zig Zag to $100
Paul Mladjenovic

MTP is a Free Service
Please recommend to friends, family, & acquaintances to help put a network in place for what may
lie ahead.

'Like' Us on Facebook
To Receive Updates
Throughout the Week

Audio/Video      


Interview With
Adrian Douglas
Part 1

Adrian Douglas is a Director of the Gold Anti-Trust Action Committee (GATA) and editor of the Market Force Analysis Letter
Part 2

Fractionals Are Back

 

 

We have brought back the silver fractional rounds…
½ oz, ¼ oz and now 1/10 oz
.999 Fine silver rounds are now available for purchase.

Does SGS
BUY BACK Silver?


We get inquiries about this all the time… Our answer is a qualified 'Yes'.
We are purchasing inventory replacement all the time. Consequently, timing is everything.

Customers have first priority over our vendors.
So, while we don't recommend selling at this time… we understand that circumstances sometimes dictate liquidation.

Don't hesitate to call and ask us if you need to liquidate some of your holdings.


 

Note: If you are getting duplicates of the S&GS Newsletter, please eMail us and let us know.
Contact us at info@silverandgoldshop.com
Phone: 888-203-2232 x 1