ALERT: JP MORGAN INCREASES SLV HOLDINGS BY 500%!

The past few years of silver smashing has been all about letting JP Morgan extract themselves from that Silver short hot potato. That’s why the CFTC has not filed charges against them (yet) for silver manipulation. That’s why the banking cabal has sat on the price of silver this whole time. That’s why Citibank added $7.5B in OTC silver shorts. That’s why sentiment in the silver market has never been worse.

It’s all about extricating JP Morgan from the silver short position they were likely REQUIRED to take on by the US Treasury after the collapse of Bear Stearns.

So knowing what is happening it might not be surprising to you that during the 1st Quarter of 2013 JP Morgan has INCREASED their physical silver holdings in SLV for their own account by 500%!

[Source: http://www.silverdoctors.com/alert-jp-morgan-increases-slv-holdings-by-500/]

PLEASE Get your Assets out of the Banking System

by Egon von Greyerz - Matterhorn Asset Management

I have pleaded with investors for years to get their assets out of the banking system.

One of the very few men who understands what is happening within the financial system has done the same. Time and time again he is both advising and imploring investors to protect themselves by getting out of the financial system and to own physical gold stored in private vaults in safe jurisdictions. Jim has also advised investors in detail how to achieve direct registration of their precious metals stocks.

Please read and re-read the extremely wise words of Jim SInclair how to protect yourself.

Here is a link to his latest GOTS (Get Out of The System) advice:

jsmineset.com/the-black-hole-in-all-major-and-some-minor-banks/

In this post Jim states that there is 

“A BLACK HOLE IN ALL MAJOR AND SOME MINOR BANKS IN NORTH AMERICA AND EUROLAND”.

I fully agree with Jim’s statement. But investors must also remember that the world financial system is totally interconnected and a single problem in one major bank is likely to lead to a worldwide systemic problem.

Therefore due to the risk of contagion, any asset in any bank is at risk. The ultimate investment for preserving wealth is physical gold (and possibly some silver at the present ratio) stored in your name, outside the banking system in a safe jurisdiction and with direct personal access to your metals.

After the collapse of the Cyprus financial system I wrote an article called 

“Get your Assets out of the Banks now”.

Please re-read this article which I am republishing below.

Please also remember that 

you cannot buy fire insurance after your house has burnt down..

Egon von Greyerz

“Get Your Assets out of the Banks – NOW”

by Egon von Greyerz - March 18 2013

Note: Video Nigel Farage European Parliament on April 17 2013

“THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED” – Ludwig von Mises

CYPRUS

The Cyprus event may later, in the history books, be seen as the catalyst of the fall of a century long Ponzi scheme. This could rank in line with the shot in Sarajevo as the start of WW1 or the collapse of Kreditanstalt in 1931 as the start of the Great Depression.

Isn’t it ironic that exactly 100 years after the creation of the Fed (a private bank created for the benefit of bankers) that the fragile and bankrupt financial system is likely to fall due to the insolvency of a couple of Cypriot banks.

But what is happening in Cyprus will not be the reason for a collapse but just the trigger for what has always been inevitable.

There are only two possible outcomes of the crisis we are now in:

- Either there will now be a run on the massively leveraged (25-50 times) banking system which would lead to no debt being repaid and a deflationary collapse.

- Alternatively, we will now see the beginning of the most massive money printing that the world has ever experienced, leading to a hyperinflationary depression.

The second outcome is the most likely although the risk of an systemic implosion is very high if central banks are too slow in flooding the system with money. The deflationary outcome would lead to no banks surviving and no money in the system. And the hyperinflationary outcome would lead to money being totally worthless. In both cases gold will be a major beneficiary.

But printing money will of course not solve anything since worthless pieces of paper with ZERO intrinsic value can never create wealth. At best it will just kick the can down the road for a very short time.

Cyprus is a mini model of the world financial system. The IMF, ECB and the politicians thought they could get away with the depositors taking part of the loss. But they have clearly not considered the consequences. This action (if ratified) will not only lead to a run on the Cypriot banks but also on banks in other weak areas such as Ireland, Spain, Portugal, Italy, Greece etc. Eventually it could spread worldwide.

The IMF, Fed, ECB, BoE, BoJ and other central banks are likely to very soon come out with a concerted action to support the financial system in order to avoid a total collapse.

For well over ten years I have advised investors to get their assets out of the banking system. This doesn’t mean just their money but also all other investments (stocks, bonds, gold etc) which are likely to be lost when banks go bankrupt.

Wealth preservation is now absolutely critical. This involves eliminating counterparty risk whenever possible. EverythIng within the banking system has counterparty risk even if it is segregated or allocated. Lehman, MF Global and Sentinel are all examples of client assets being lost in the financial system.

Gold (and silver) will continue to reflect the total destruction of paper money that the unlimited money printing will lead to. But investors must hold physical precious metals and they must be stored outside the banking system.

It is Imperative to Invest in Physical Gold and/or Silver NOW – Here's Why

Asset allocation is one of the most crucial aspects of building a diversified and sustainable portfolio that not only preserves and grows wealth, but also weathers the twists and turns that ever-changing market conditions can throw at it. However, while the average [financial] advisor or investor spends a great deal of time carefully analyzing and picking the right stocks or sectors, the basic and primary task of asset allocation is often overlooked. [According to research by both Wainwright Economics and Ibbotson Associates and the current Dow:gold ratio, allocating a portion of  one's portfolio to gold and/or silver and/or platinum is imperative to protect and grow one's financial assets. Let me explain.] Words: 1060

So says Nick Barisheff (www.bmgbullion.com)  in an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Barisheff goes on to say:

Asset allocation is usually taken for granted as being a mix of the three main asset classes: stocks, bonds and cash. Many investors believe that a broad mix of equities (financials, healthcare, utilities and telecoms), an exposure to foreign stocks, some emerging market plays, some bonds and a foundation of cash, equals diversification. However, this traditional approach is not only outdated, but also completely excludes several key asset classes such as foreign currency, real estate, collectibles,precious metals, natural resources and life settlements…(which should all be examined and, if necessary, rebalanced…annually because markets are constantly changing due to the unstable global economic climate). Also, as Figure 1 shows, the three main asset classes are all positively correlated. A portfolio that consists entirely of positively correlated asset classes cannot achieve optimal diversification.

Long-Term Trends

• Stocks: The Dow has experienced several cyclical up and down trends throughout the last century. Identifying which trend the market is currently experiencing is of paramount importance. For example, a 60-year-old investor allocating to stocks in 1968 would have been 87 before breaking even, adjusting for inflation, in 1995.
• Bonds: The bond portion of a portfolio faired just as poorly during the 1970s. Bonds are decimated during periods of rising inflation, and in the 1970s inflation rose to over 13%. A mutual fund bond investment fared even worse during that decade; the net asset value of a bond fund drops as inflation takes hold and subsequent interest rate rises eat into the purchasing power, and then the price, of the fund.
• Commodities: Perhaps more crucially, a portfolio limited to stocks and bonds during the 1970s would have missed one of the greatest commodity booms ever experienced. From 1971 to 1980, gold rose by 2,300%, silver by 2,400% and platinum by 900%, while oil rose 900%.

Changing Times Require Changing Mindsets

Most investors’ experience with investing is based only on the last cycle. They find it difficult to rebalance their portfolios in order to align them with changing trends, having become entrenched in one mindset…Today’s investors are convinced that equities will continue to provide superior returns during the next 20 years. Many feel the financial turmoil of 2008 is behind us, that the worst is over, and are blindly looking forward to further gains on the stock market. This mindset fails to acknowledge today’s financial reality.

Who in the world is currently reading this article along with you? Click here to find out.

In fact, economic conditions today are much worse than in the 1970s. Government spending around the world has exploded and continues to do so. Fiat (paper) currency supply, along with government debt in the world’s major economies, is spiraling out of control. The situation is worsening daily, and burgeoning inflation can be the only result.  Crucially, the world’s debt will inhibit governments from substantially raising interest rates– today’s economies couldn’t withstand a high interest rate environment. These are the reasons gold has risen constantly, year after year for nine years, and will continue to do so. In truth, gold isn’t just rising; fiat currency values are falling through debasement by their governments. The more dollars created, the less each one is worth. Gold protects investors against inflation, because it is a non-depreciating asset.

Equity markets are topping. From a purely analytical point of view we can see that equity valuations are high, and there is more potential risk than reward. It is time to rebalance portfolios.

The Dow:Gold Ratio

The Dow:Gold Ratio, which measures trend changes in the price of gold versus a basket of stocks as represented by the Dow, supports the idea that investors today should have an allocation to precious metals. Essentially, the Dow:Gold Ratio divides the Dow by the US-dollar gold price. Figure 1 shows that when the ratio is rising, as it did in the 1920s, 1960s and 1990s, portfolios should be overweight equities. When the ratio is falling, as it did in the 1970s and is doing today, portfolios should be overweight precious metals. Currently the ratio is 8.18:1 and, equally important, it is falling, meaning there is still plenty of time for investors to rebalance into gold and precious metals.

What is an Appropriate Allocation?

Today’s typical “balanced” portfolio, consisting of 60% equities and 40% bonds, will simply lose value year-after-year in real terms during the coming high-inflation cycle. According to a study by Ibbotson Associates, a 7% allocation to gold is needed in conservative portfolios and a 16-17% allocation is required for aggressive portfolios. Those amounts are required simply to have a balanced, diversified portfolio during stable times, i.e. strategic allocation.

From a tactical allocation standpoint, Wainwright Economics [read article here (1)] looks to gold as being a leading indicator of future inflation. In a high inflation environment, which the ongoing currency creation around the world all but guarantees, their conclusion is that you need 15% in a bond portfolio and the same percentage in an equity portfolio just to insure your investments against further inflationary damage.

Conclusion

The percentage mix is debatable; what is certain, however, is that the historic three-asset-class allocation mix is outdated, out of touch with today’s economic and financial reality and a recipe for loss of wealth. To protect your portfolio and preserve your wealth, a 5 to 20% allocation to precious metals is an absolute necessity.

[Source:http://www.munknee.com/2011/10/it-is-imperative-to-invest-in-physical-gold-andor-silver-now-heres-why]

Copernicus, Galileo And Gold

Hugo Salinas Price

The term ‘price of gold’ is a misnomer. Gold is the center of the monetary universe, and the planets—the currencies—circle it. The correct starting point is the price of a currency expressed in terms of gold, and not the other way around. With gold at $1,388 per ounce, the price of the dollar is $1/1388, or  .00072 oz. of gold.

Gold is leaving the dollar-centric West, because at .00072 (7.2 ten-thousandths) per ounce the dollar is overvalued and gold is undervalued. There will come a time when those who control the dollar price of gold find they have run out of gold to sell, and are powerless to support the price of the dollar.

This is already happening in the Middle East, India, Pakistan, China and Southeast Asia, where gold trades at premiums to the undervalued ‘price of gold’ which the Anglo-American Axis (Axis) insists on maintaining.

The premiums effectively devalue the dollar just enough to ensure that the gold travels from West to East. The Axis is auctioning off its gold to the highest bidders, and the highest bidders are taking it off the market.

When the Axis can no longer support the dollar’s price by selling gold, because it has none left to sell, then the rest of the world will bid for gold, not only against the US dollar, but against all other currencies. The prices of currencies will fall like stones, and the flow of gold will seek to eliminate both under-valuations and over-valuations wherever they occur.

By auctioning off all its gold, down to the last available ounce, the Axis is betting everything on the dollar’s ability to dethrone gold: a big mistake!

Gold will not lose its central position as the money used globally for thousands of years. The Axis’ aggressive measures with regard to gold are absurd, and will lead to a global disaster.

In the worst case scenario, as the rest of the world devalues the dollar by purchasing all the West’s gold, dollar supporters may resort to a devastating war as a last desperate attempt to supplant gold with a man-made fiat currency, the dollar.

The wise (always a small minority) will squirrel away some ounces against the collapse of the Axis’ attempt to reorder the world’s monetary system around digital and paper currencies.

Read full article

Is Gold at a Turning Point?

Adam Taggart

Precious metals have lagged in recent weeks, but revisiting the reasons for owning them reveals no cracks in the foundation. In fact, there are several new developments that indicate the gold and silver doldrums will soon be over.

We’ve got negative real interest rates, fiscal deficit spending, unserviceable sovereign debts, and loose (if not reckless) monetary policies, all while newly mined ounces are more expensive than ever because of reduced ore grades and higher costs for fuel and equipment.

Add to that list several new drivers: MF Global proving that client accounts can be looted; Cyprus proving that the banking system will make depositors pay for its mistakes; politicians calling for various wealth taxes to be levied on anyone with savings; and lastly a new secular change in rising interest rates that threatens to create havoc in world economies and financial markets across the world.

Those are the old reasons, but there are new and compelling arguments for precious metals, including: A seismic change in the commercial trader positions (returning to a bullish stance not seen since 2004); unprecedented retail investor appetite for bullion; accelerating East-to-West demand for physical gold and silver; continued accumulation by world central banks; and shockingly depleted Comex inventories available for delivery.

For all these reasons, precious metal investors should sleep well at night, secure that the foundational rationale for holding gold and silver remains intact.

Times like these are designed to wear you down and force weaker hands to capitulate before reversing. But the precious metals bull market remains intact, and the real price action has yet to come. There is increasing evidence that the next big upward reversal is near.

Read full article