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Wednesday, January 30, 2013

Gold in a World of Failing Government

The majority of people still don't really understand the importance of gold, as they look at it primarily as an investment rather than a hedge against disaster and a protector of wealth.

This is why even in the midst of a failing global economy investors aren't buying up some physical gold as part of their financial strategy.

In some parts of the world, especially Europe, there is the very real possibility of social upheaval as the unemployment rate continues to climb in nations such as Greece, Spain, Ireland and Portugal. Young people have been hit the hardest, and of course are most likely to look for a scapegoat if things begin to unravel and a catalysts launches protest across the region. For no other reason than that people should have some physical gold on hand to protect them against the potential fallout from such a scenario that is increasingly probable.

We shouldn't pay attention to the financial media, as overall, around the world, the media has to be considered almost another arm of the government, as it prints out or reports on TV and the Internet pretty much what world leaders want to be reported on, unless the situation is so obvious there is no way it can be hidden.

Just look at recent stories of a recovery and economic healing even though the economies around the world are a disaster. You would think there was some type of economic revival going on the way most of the mainstream media asserts increasing economic health.

Whether you believe it or not (and you should), everyone that has wealth to protect should have some gold on hand because once unrest arrives or inflation begins to soar, the price of gold and silver will skyrocket, and the cost will be prohibitive for many seeking to buy some gold at that time, if it is available at all.

The major reason to own gold isn't for the purpose of building wealth, but protecting it and having something of value in case a worst-case-scenario plays itself out.

It's not a matter of if, but only where and when, as well as how widely it'll spread, concerning the surety of social unrest of some type breaking out in the world beyond the Middle East. 

Those holding gold will be positioned to ride it out better than those that are looking for equities, bonds and cash to sustain them.

Think of gold first of all as a safe haven, and only secondarily as something that can be used to grow wealth. And for physical gold, it's real value is solely in protection and little else. That must be understood if you're going to position yourself for the inevitable breakdown approaching, even if it doesn't happen in the specific country you live in.

Don't think if people storm banks and governments that you'll be spared some of the pain as far as financially goes, as now that almost everything is connected, what happens in one part of the world, especially if it were Europe or important parts of Asia, that it won't affect everyone around the world. It will. Be prepared by holding physical gold.

Tuesday, January 15, 2013

Alamos (AGI) (ABG) (CLF) (GUY) (AUY) (PAAS) (SSRI) Ratings Changes

Alamos Gold (AGI), African Barrick Gold (ABG), Cliffs Natural Resources (CLF), Guyana Goldfields (GUY), Yamana Gold (AUY), Pan American Silver Corp (PAAS) and Silver Standard Resources (SSRI) had ratings on them changed by analysts.

Investec upgraded African Barrick Gold (ABG) to a "Buy" rating.

Deutsche Bank upgraded Cliffs Natural Resources (CLF) from a "Hold" rating to a "Buy" rating. They have a price target of $48.00 on the company.

RBC Capital upgraded Guyana Goldfields (GUY) from a "Sector Perform" rating to an "Outperform" rating. They have a price target of $6.00 on the company.

Davy downgraded Yamana Gold (AUY) from an "Outperform" rating to a "Neutral" rating.

Deutsche Bank downgraded Pan American Silver (PAAS) from a "Buy" rating to a "Hold" rating. They have a price target of $20.00 on the company.

Deutsche Bank downgraded Silver Standard Resources (SSRI) from a "Hold" rating to a "Sell" rating. They have a price target of $12.50 on the company.

German Central Bank Bringing Gold Back to Country

Germany had moved much of its gold to overseas storage facilities during the years of the cold war in fears the Soviet Union may invade the country and seize all its gold. The central bank of Germany, according to a German newspaper, is beginning to bring the gold back home.

According to the Daily Handelsblatt, the Bundesbank has plans to bring home all of the 450 tons it has stored in the Bank of France in Paris, and an undisclosed portion of the 1,500 tons it has stored in the Federal Reserve in New York.

A growing number of people have openly questioned the amount of gold still on hand in New York, as well as Fort Knox in Kentucky, which the repatriation of only a portion of the 1,500 tons of gold stored in New York for Germany makes one wonder why it isn't all being brought home under the loose money policies of central banks and governments around the world.

Germany will apparently bring about $200 billion in gold back to the country as valued at today's prices.

Overall, Germany has about 3,400 tons of gold in reserve.