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Thursday, August 30, 2012

Jim Rogers Likes Silver More Than Gold at This Time

Billionaire commodity expert Jim Rogers reiterated his current stance on gold, saying he's looking more towards silver than gold as the better investment at this time, citing the fact that silver is down more than gold, and gold has also had a decade of increases, which means it is susceptible to a major correction.

As measured by an historic basis, silver is about "40 percent below its all-time high," says Rogers, adding that "gold is 10 percent to 15 percent below its all-time high."

In other words, he sees more upwards potential.

Even if there is more stimulus around the world, which is highly likely, and if gold gets a boost from that, silver is likely to get an even bigger boost from stimulus, especially as it would at least appear to renew industrial demand from manufacturers around the world.

Gold would benefit mostly from the safety and defense against inflation factors, while silver, on a secondary basis, would also benefit for the same reasons.

Thursday, August 2, 2012

ECB Making Plans for Bond Acquisitions

In the short term the announcement by ECB President Mario Draghi that the European Central Bank drew a yawn from the markets after his aggressive posturing recently on how he'll do anything to support the euro.

"The Governing Council, within its mandate to maintain price stability over the medium term and in observance of its independence in determining monetary policy, may undertake outright open market operations of a size adequate to reach its objective," said Draghi.

"The Governing Council will consider further non-standard monetary policy measures according to what is required to repair monetary policy transmission. In the coming weeks we will design the appropriate modalities for such policy measures," he added.

The Federal Reserve is also expected to make a move at its next meeting in September, as Chairman Ben Bernanke noted in the recent meeting that the U.S. economy was faltering and the central bank stands ready to take action when needed.

What this means is come the latter part of August and early September we should see a big upward move in stocks and commodities in response to the two probable initiatives by the ECB and the Federal Reserve.

The move by the ECB will probably be very close to the same move by the Fed.

With little reason for Bernanke waiting, it appears he's caved to pressure to wait until it could make the economy look better as the election approaches, giving a potential boost to Obama, who is in danger of losing the election in the midst of the disastrous economy and his atrocious economic policies.