The Power Of Gold & An Economic Collapse

Today top trends forecaster Gerald Celente spoke with King World News about the power of gold and an economic collapse. Gerald Celente is the founder of Trends Research, and the man many consider to be the top trends forecaster in the world. Below is what acclaimed forecaster Celente had to say to KWN in this powerful and exclusive interview.

Celente: “That’s what he (Bernanke) said, ‘Nobody understands gold prices.’ He also called gold, I love this one, ‘An unusual asset.’ And he said that some people see gold as ‘disaster insurance.’ Yes, disaster insurance against what people like him and other central bankers are doing — creating a global disaster by printing all of this digital money….

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“When you go back and listen to Bernanke, when Ron Paul was a member of the House (of Representatives) and was questioning him and Ron Paul asked him, ‘Is gold money?’ And Bernanke said, ‘No, it’s a precious metal.’

So here’s what I have to say: You better tell the Iranians. (And you better tell) the Turks and the Chinese that are buying Iranian oil and giving Iran gold that they are really not giving them (Iran) anything of value, (that instead) it’s only ‘an unusual asset’ (laughter ensues). So they (the Iranians) are selling oil for unusual assets (laughter).

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/19_Gerald_Celente_-_The_Power_Of_Gold_%26_An_Economic_Collapse.html

Nobody understands gold prices, including me

Good luck trying to predict where gold prices are going, because even the head of the world’s most powerful bank admits he hasn’t a clue.

When asked about the drop in gold prices by U.S. senators during his testimony on monetary policy Thursday, U.S. Fed Reserve Ben Bernanke said decline could mean that investors are less worried about the economy. But he hastened to add: “Nobody understands gold prices and I don’t really pretend to understand them either.”

“Gold is an unusual asset. It’s an asset that people hold as a sort of disaster insurance,” Bernanke said in response to a question at a Senate Banking Committee hearing.

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“One reason gold prices are lower is people are less concerned about extreme outcomes, particularly negative outcomes, and therefore they feel less need for whatever protection gold affords,” he said . “A lot of people hold gold as an inflation hedge but the movements of gold don’t predict inflation very well actually.”

Ironically, Bernanke may need to look no further than himself for guidance on gold.

Bullion has tumbled more than 20% this year, losing its safe-haven appeal after the U.S. central bank first signalled it would look to rein in its $85 billion in monthly asset purchases later this year and halt stimulus altogether by mid-2014.

The Fed’s three quantitative easing schemes have boosted prices of gold and other commodities, as they kept interest rates low, which weighed on the dollar, making assets priced in U.S. dollars cheaper for foreign investors.

As if to prove Bernanke’s point, spot gold briefly shot up 1% to a session high of US$1,288.06 an ounce Thursday. That’s following a 1% drop the day before.

Source: http://business.financialpost.com/2013/07/18/ben-bernanke-nobody-understands-gold-prices-including-me/

All the Gold on Earth Comes From Massive Space Explosions

Previously, astronomers had been under the impression that the heavy elements—gold, platinum, lead, uranium, etc.—came from supernova explosions. But now, scientists have announced a new theory for these highly valuable elements, this one involving two ultra-dense neutron stars and one spectacularly violent, grossly expensive collision.

We Are All Made of Stars

Essentially, we’re all here to today because some star somewhere in space exploded once upon a time. Down in the interior of stars, the high pressure and heat cooks up elements like carbon and oxygen atoms (the stuff we’re made of). So when it inevitably comes time for that star to die, that explosion shoots out all of the ingredients for life as we know it.

This explanation didn’t, however, quite manage to explain where the more dense elements got their start. Because while the majority of light elements come with a fairly simple recipe, a heavier one like gold requires 79 protons, 79 electrons, and 118 neutrons—that’s a hell of lot of ingredients. Which is why it takes these absurdly dense neutron stars, which come packing way more atomic supplies, to give us all those beautiful, heavy, glittering goods.

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What’s a Neutron Star?

When a massive star enters Type II, Type Ib, or Type Ic supernova—or in other words, when its core is essentially crushed by the force of its own gravity—there are two potential outcomes. It can either turn into a black hole or emerge from its supernova cocoon as a neutron star. To the get the latter, you’d need to start with a star about 4 to 8 times the size of our sun. Once the star burns off enough nuclear fuel to the point that the core can no longer support itself, gravity finally wins and collapses the core with enough force to cause protons and electrons to assimilate. Which creates neutrons. Which, as you may have already guessed, is where neutron stars get their name.

All the Gold on Earth Comes From Massive Space Explosions

To get an idea of just how dense a neutron star is, a mere teaspoon of the stuff would weigh about 10 billion tons. (Of course, if you actually did extract a teaspoon of neutronium goo, you’d lose all that wonderful gravitational force holding everything together, and the whole thing would immediately explode into a giant mass of neutrons about the size of a planet that would then break down to its individual proton and electron parts. To put it bluntly, you, dear reader, would die. But that’s neither here nor there.)

When Two Neutron Stars Love Each Other Very Much…

So under most circumstances, these insanely dense dead stars will float around the universe doing no one any harm. But in binary star systems, the two are destined to collide. And this is what NASA‘s Swift space telescope observed during an all-sky survey on June 3.

After seeing a flash of light called a short gamma-ray burst (GRB) far, far way in the constellation Leo, astronomers were quickly able to deduce (with the help of a few theoretical models) that what they were seeing was the radioactive afterglow from a gargantuan mass of heavy metals created in the wake of a neutron star collision. Previously, scientists had only been able to hypothesize that GRBs were the result of two colliding neutron stars, but now we have actual proof.

Source: http://gizmodo.com/all-the-gold-on-earth-comes-from-massive-space-explosio-827330159