Despite Pullback Gold Headed To New All-Time Highs

On the heels of Ben Bernanke signaling that the U.S. economy is weak and needs a highly accommodative Fed policy, today one of the top economists in the world said that despite the recent capping of gold at $1,300, gold is heading to new all-time highs.  Michael Pento, founder of Pento Portfolio Strategies, wrote this piece for KWN.

Pento: “The prevailing mantra on Wall Street is that gold’s bull market is now over and it’s time to bury precious metals as an investment theme for the indefinite future.  The rational for this is based on the belief that many investors held misguided fears during the credit crisis about a breakout of massive inflation and economic chaos, which drove gold to nearly $2,000 per ounce….

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“Of course, (the perma-bulls on stocks claim) those worries have now completely failed to materialize and will never be a genuine risk in the future.  This argument is patently false because it assumes that the final chapter has been written on the Great Recession and debt crisis that paralyzed the entire globe back in 2008.

The truth is the most pernicious effects of the devastating economic collapse that began five years ago have been merely held in abeyance due to record low interest rates and an aggressive expansion of central bank assets; which is being used to boost real estate values, equity prices and the economy.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/17_Pento_-_Despite_Pullback_Gold_Headed_To_New_All-Time_Highs.html

Gold, Silver, The Fed & What To Expect Next

With gold and silver getting consolidating, today John Hathaway spoke with King World News about what is happening in the war on precious metals.  Hathaway also spoke about the gold and silver shares and what is taking place in the industry.  Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating.

Hathaway:  “As far as gold goes, it looks to me like we have made an important low.  A couple of people I respect have called it, McClellan would be one of them.  I don’t know if that means we rocket higher, but it seems to me we have seen the worst….

“McClellan is basically a neutral market observer, and they are seeing very constructive signs from a purely technical point of view.  As far as the shares go, they have to take their cue from gold.

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I think that gold has to lead higher, and then I think the shares will respond.  Most of the commentary I see from the ‘sell-side’ is kind of like closing the barn door after the horses have run out.  They are basically doing these very Draconian scenarios with gold not moving above $1,200 — what companies survive, which companies don’t, that kind of thing.  So there is very little discussion about which companies would be really well-positioned in a higher gold price environment.

When I look at the economy right now, it’s very weak.  I see poor housing starts and retail sales.  Corporate guidance has also been very lackluster.  I thought the UPS number was very interesting in the sense that they are seeing lower volumes, particularly from the manufacturing sector.  So the whole pattern to me reflects a very soft economy.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/18_Hathaway_-_Gold,_Silver,_The_Fed_%26_What_To_Expect_Next.html

Commodities Dealer Accepting Bitcoin for Gold

The revelations by Edward Snowden about the illegal wiretapping being carried out by the U.S government have made it clear that privacy is becoming a rare commodity. One company is taking that “commodity” notion literally. Agora Commodities is the first gold, silver, platinum, and palladium dealer accepting Bitcoin for bullion. We already know that you can buy Reddit Gold with it. This is the real thing.

Bitcoin, if you recall, is an untraceable digital “currency” based on increasingly complex mathematical formulas. The currency is extremely volatile, subject to even daily wild swings in value. It is not regulated by any official government organization. And can be used for all manner of illicit trafficking, especially on underground site like the Silk Road, a popular place to score illegal goods.

By taking Bitcoin as payment for a physical commodity, Agora is giving high-risk speculative traders one more way to play the market. And the added bonus is that the transaction can be 100% anonymous. The risk of using such a currency, especially now that it can be transferred to precious metals, raises all sorts of questions about money laundering, organized crime, theft by hackers, and whether terrorists will see this opportunity before regulators get their hands on it.

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But the company is going even deeper into anti-spying territory than that. They are offering their customers encrypted service for all their digital correspondence.

Joseph Castillo, President of Agora Commodities commented, “In today’s world, privacy is quickly turning into one of the people’s most precious commodities. I was inspired by an ISP provider in Utah that refused to give his customers data over to authorities when it was not properly requested with a warrant. Agora Commodities first and foremost respects its customers’ privacy. This was the best way to show that respect”.

Questions about Bitcoin are already being asked in earnest in the halls of government around the world. But for now, we find ourselves in one of those heady days where something is loose in the world that has not yet been clamped down on and regulated. There are millions to be made, and someone sitting in a basement somewhere is hacking out the way to do it.

Source: http://www.webpronews.com/commodities-dealer-accepting-bitcoin-for-gold-2013-07

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