June 2011 Archives

Another good reason to own physical gold and silver

Peter Schiff puts forward a good reason to own physical gold and silver as the dollar is collapsing.

The US dollar is in terminal decline; America is tragically bankrupt, unable to pay its lenders without printing the dollars to do so, and embroiled in an economic depression. It is only a matter of time until the dollar faces a crisis of confidence. The difference between this collapse and the bursting of any other bubble is that the dollar is the backbone of the global economy. Its disappearance will leave a vacuum to be filled.

There are three main contenders for the role: the euro, the yen or the yuan. But each of these currencies suffers from a critical flaw that makes it unsuitable as a reserve currency. When it comes to fiat alternatives, the world would be going from the frying pan into the fire.

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Some Ways to Buy Silver Coins

There are numerous sources where those silver coins can be purchased. The following are the basic methods and starting places to obtain the silver coin(s) you have long wanted.

Go local

1964 Kennedy Half DollarCoin shops are plentiful almost everywhere. Generally your local area or city will have coin shops which you can visit to purchase silver bullion coins as well as collectible silver coins. Most of these coin shops are located in the larger town or cities. Better yet, use your local phone book and start walking those fingers through the pages to find out where the nearest coin shop(s) is located…

These shops provide coin collectors the opportunity to actually examine or scrutinize the coins that interest you. Fortunately, these coin shops are also replete with experts and coin lovers who share your passion and can offer their valid judgment on a particular coin’s grade or value. They can also offer helpful tips as well as advice.

Local coin shops may sometimes have a limited stock or collection of silver coins and the price they offer them for may be a little bit higher than some other places.

Auctions for Silver Coins

seated_liberty_dollarThere are also auctions specifically for silver coins. This method is a very effective – if not excellent – way to purchase silver coins. It is extremely important that prior to attending an auction you know the procedures and rules that apply.

There are various types of auctions; bidding auctions via mail, internet, as well as auctions conducted by phone. Always be aware and wary! It is important to make sure that you set a fixed price on the coin you are about to bid on. Auctions can turn very emotional and aggressive. Practice discipline and try not to bid more than the ceiling price you have set for yourself.

I have purchased numerous silver coins on eBay for example. You can find good buys on silver bullion coins and bars, junk silver coins, numismatic silver coins, and just about any sort of silver coin.

Buying silver coins by mail

This method is a very convenient and inexpensive way to purchase silver coins. Most dealers that transact via mail usually have overhead costs that are low so they are able to offer similarly low prices on coins they sell.

Do not forget to thoroughly inspect a particular dealer’s policies before returning an item. Make sure that once you receive your coin, immediately inspect it for authenticity or damage. The coin you must have must be just as you ordered and what you expected.

In summary, silver coin buying is not difficult. All you need is to research and look for the best product available.

Buying Silver Coins at Auction Sales

In a silver coin collection, the most difficult part is how to find the coins for the collection. A collector’s main method of acquiring coins is by buying them. The most common alternative in acquiring a coin is through purchase in auction sales.

Rare coins and those that are of high quality are oftentimes very difficult to buy. Auction sales whether online or at auction houses provide coin buyers the option to acquire these types of coins at lower prices.

No matter how popular auction sales have become to many collectors, it is still important to know the advantages and disadvantages they can provide to coin collectors. Here are some points must to be considered before buying in auction sales.

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Manipulation of Gold and Other Precious Metals

The following is excerpted from a longer article by Alex Newman called Fed Manipulations in the Crosshairs.

Whistleblowers, and even some government officials, are now taking aim at “irregularities” in the precious-metals market being orchestrated by the banking cartel and its government allies.

An ex-Goldman Sachs employee and veteran metals trader in London shocked the world in April when he went public with startling allegations. “JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer,” Andrew Maguire told the New York Post. After sharing information with government investigators and accurately predicting events in the metals market, Maguire was supposed to testify before the U.S. Commodity Futures Trading Commission (CFTC). However, a few days after his identity was revealed, Maguire and his wife were struck and injured by a car in a hit-and-run accident. Details about any investigations into the event have not been made public yet, sparking a tornado of conspiracy theories.

The CFTC did hold a hearing on precious-metals market manipulation nevertheless, which included other speakers with similarly powerful accusations, including the Gold Anti-Trust Action (GATA) Committee’s Bill Murphy. He told The New American that GATA tried to find out what role the Fed was playing in the gold markets, but his FOIA request for information about the Fed’s “gold-swap” agreements was denied. The organization then filed a lawsuit against the central bank in federal court. “[The Fed] came back and said they didn’t have to tell us anything — that they were exempt from telling us and that it was secret information,” he said in a telephone interview. “So then, we filed a suit in District Court in Washington to compel them to give us the information.” The suit is in progress, and GATA has high hopes for it.

Murphy said his organization wants to find out exactly what the Fed and the Treasury have done with America’s gold. “It’s the people’s gold, not their gold,” he said. The manipulation of gold prices is very serious and is part of the U.S. “strong dollar policy,” Murphy explained, pointing to the relationship between gold and interest rates.

“By suppressing the gold price, they can keep the dollar stronger than it would be and keep interest rates less than they would have been,” he said, noting that this manipulation played a pivotal role in the current economic meltdown. “What happens is every time gold prices soar, what do you hear? Too much inflation? Crisis? It’s always bad for the Wall Street crowd and the incumbent politicians.… If the gold price had been allowed to trade freely, interest rates wouldn’t have been kept too low for too long,” and the natural warning system would have kicked in.

Jeff Christian, founder of CPM Group, a trading firm dealing mostly with commodities, also spoke at the CFTC meeting. In his testimony, he revealed that bullion banks had leveraged their physical metals by as much as 100 to 1, essentially selling 100 times the amount of actual bullion they possessed, a fraudulent process known as “naked short selling.” Morgan Stanley was sued for similarly fraudulent activities in 2007 by clients who were led to believe that the institution had purchased and stored bullion on their behalf. The clients even paid storage fees, only to discover later that their alleged bullion did not even exist. Morgan Stanley settled the multi-million dollar class-action suit “to avoid the cost and distraction of continued litigation,” it claimed in a statement.

The allegations of gold price suppression seem to have been confirmed by the Fed itself. “Central banks stand ready to lease gold in increasing quantities, should the price of gold rise,” then-Fed boss Alan Greenspan told the House Banking Committee in 1998. In other words, if gold prices go up, the central bank will make sure they come back down.

Even before Greenspan’s infamous admission, a “confidential” Fed document dated April 5, 1961, available in the Federal Reserve Bank of St. Louis’ archives, revealed the central bank’s hand in the metals market. “Monetary authorities in the United States … have maintained the stability (and primacy) of the dollar in the international currency structure by standing ready to buy gold from, and sell it to, foreign monetary authorities who either need or acquire dollars for exchange purposes,” reads the paper, entitled “U.S. Foreign Exchange Operations: Needs and Methods.” The minutes from Fed “Open Market Committee” meetings showed the central bankers jubilantly admitting that even mentioning a possible gold sale would drive the price down.

The manipulation process today works something like this: When gold goes up in value relative to Federal Reserve Notes (what Americans today call “dollars”) and other fiat currencies, the central bank “leases” out some of its holdings to other institutions at a relatively low interest rate. These firms then sell the borrowed gold, driving down the price of the metal relative to fiat money. The companies then invest the cash into other assets with a higher rate of return, allowing the Fed to keep gold prices down while providing banks with an opportunity to earn more money.

The scheme involves a number of other players too. “It’s not only bullion banks like Goldman Sachs and JP Morgan Chase and HSBC, but also — we call it a gold cartel — it’s also the Fed, the Treasury, the U.S. government, and the [central] Bank of England,” Murphy explained, adding that some of the conspirators had likely broken laws and probably belonged in jail. The suspicions have also been recently confirmed by whistleblowers within the system.

But despite the deliberate suppression of gold and precious-metals prices, their value continues to rise as the Fed adds trillions of new dollars to the money supply. “Gold measures the value of currencies. And right now gold is telling us, in spite of the fact that the gold price is rigged by central banks and various entities, gold is telling us that the dollar is in danger — great danger,” explained Fed foe Representative Ron Paul during a recent interview with CNBC. “We’re in worse shape than we were in the 70s, and it was rather chaotic then. So we’re moving into a very dangerous era according to what the gold price is telling us.”

The manipulative system remains intact. But there are signs that some minimal government action is finally being taken regarding manipulation of metals and commodities markets. The CFTC recently slapped multi-million-dollar fines on Morgan Stanley and a large hedge fund for just such activities. Various news reports also claim the Department of Justice’s anti-trust division is investigating alleged silver price manipulation by JP Morgan Chase.

What You Need to Know About Spot Gold Trading

Spot gold is the standard for the value of an ounce of gold for trading purposes. Among gold traders it is the most important information that they can have their hand on. Even though purchases from, large gold traders will often range from five percent above to five percent below the spot gold standard, most traders still use the current spot gold price as the point of reference for the value of gold.

Spot gold trading is like trading other commodities on the market. You are basically placing a wager on what direction is the gold market going to take and placing a trade based on what you believe the price will be in the future, most often four to six months in the future. Here are some of the things that you need to know about spot gold trading if you plan on investing in gold.

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How to Survive a Recession

Recessions happen and you can see it and take the appropriate steps before it is too late. Here are a few tips you should know about to help you survive.

1. If you happen to be in debt, get out as quickly as possible by finding ways to pay for it. If ever you need help, hire a financial consultant who can help you with your budget.

2. We have to pay the bills. Instead of just paying for them, perhaps you should see if you can switch to another company that offers cheaper rates. Take a look at your electricity, gas, mobile phone, television broadband package, insurance and even your bank account then make the necessary changes.

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Why is a Coin Grading Service Important?

As coin collecting has increased in popularity and more people are looking to add silver and gold coins to their portfolios, many have discovered market prices of coins has varied immensely.

When the coin market was limited to a small number of collectors and dealers, coins were priced in pretty simple terms. Since the market has expanded and dealers became more inconsistent with the prices they set for the coins, the need for a standard scale arose. That is where the coin grading service entered the scene.

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