There will be no double dip. It will be a lot worse.
The world economy will soon go into an accelerated and precipitous decline which will make the 2007 to early 2009 downturn seem like a walk in the park. The world financial system has temporarily been on life support by trillions of printed dollars that governments call money. But the effect of this massive money printing is ephemeral since it is not possible to save a world economy built on worthless paper by creating more of the same. The hyperinflationary depression that many western countries, including the US and the UK, will experience is likely to mark the end of an era that has lasted over 200 years since the industrial revolution,” reports Egon von Greyerz of Matterhorn Asset Management.
Hot money in inflation mode
Tuesday the government reported producer prices rose for the first time in four months, while industrial production rose more than expected. That’s it, inflation is back! The Fed’s cheap money, or near-zero interest rates, after having failed to inspire much lending and borrowing from banks and consumers, is for sure leading investment banks and hedge funds to make big bets on such things as gold. Eton Park Capital Management LP, a hedge fund, revealed it took a big stake in the SPDR Gold Trust ETF on Monday with a regulatory filing,” reports Marketwatch.
Is Silver Ready to Move Higher ?
There are several compelling reasons to consider adding physical silver to your precious metal portfolio, but why isn’t silver receiving the same attention as gold? Silver is still in stage one of its bull market, while gold is already in stage two. Bull market first stages are always marked by apathy….and disbelief that any uptrend is sustainable. Those conditions explain what happened to gold, when it was under $1,000/oz. Only when it hurdled that psychological barrier did gold start receiving widespread attention of its attributes and upside potential,” reports James Turk at GoldMoney.
Protect yourself from inflation with silver bullion coins.
2010 Year of the Tiger – 1 oz Silver Coin (Series 2)
Created due to popular demand from international investors, the Perth Mint’s Lunar design theme is secure for another 12 years with the introduction of the Australian Lunar Silver Bullion Coin Series II.
Proof Quality 99.9% Pure Silver
Struck from 99.9% pure silver, the 2010 releases are available as individual 1 kilo and 1oz coins and in a Three-Coin Set comprising 2oz, 1oz and 1/2oz coins. (1 kilo denomination shown in obverse illustration.)
Year of the Tiger Design
The reverse of each coin depicts a tiger lying under a tree. As well as the inscription ‘Year of the Tiger’ and the Chinese character for ‘tiger’, the design also incorporates The Perth Mint’s ‘P’ mintmark.
Australian Legal Tender
Issued as legal tender under the Australian Currency Act 1965, each coin features the Ian Rank-Broadley effigy of Her Majesty Queen Elizabeth II on its obverse.