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2011 GOLD high $1,500.00, SILVER high $24.00
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<p>[QUOTE="fatima, post: 1011752, member: 22143"]This is a personal acnedote that can't be disputed or challenged since you didn't give any source that can be verified. However, the huge increases in the money supply are not accomplished these days by printing currency. In fact, the amount of circulating paper has remained fairly static if not going down. The huge increases are electronic and have not been released into the system and are instead, being held by the Federal Reserve. This is why there hasn't been whole scale inflation related to the huge increases. So the amount of OT of workers at the BPE is irrelevant and isn't a predictor. It's easy enough to simply go to the US Treasury and Federal Reserve websites and look at the US balance sheets. It's not a secret and no insider contacts are needed.</p><p><br /></p><p>----------------------------</p><p><br /></p><p>The rise in gold and silver prices is not due to direct inflation (i.e. caused by increases in money supply). What is happening instead is that actions of the government, have shaken confidence in the United States government in terms of fiscal policy and the $ is suffering because large holders of this debt are looking for alternatives to protect their reserves. Thus gold is going up because other countries are looking to increase their reserves of this metal to offset losses in their $ reserves. These countries still hold $'s due to one important fact that should not be lost on anyone. It's the only way to buy oil. The US government insures, based on it's military that any country with $s, can buy oil with that money. It's a powerful motivation to hold US dollar reserves and one lost on most people. Still, the countries don't like what the Federal Reserve is doing and are buying gold as a hedge. This is one of the reasons that China, aside from buying gold itself, is encouraging its citizens to buy gold as well. They apparently believe that if there is some sort of return to gold as a standard, then their population will already be used to it. </p><p><br /></p><p>Silver on the other hand does not have the same role in the world financial system and is not dependent upon this sort of activity. It's rise is in part symbiotic and in part due to some sort of ongoing activity that seems to be taking place on silver contracts at the Comex. IMO, it's a much more risky investment and one that will be quicker to surprise it's holders.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1011752, member: 22143"]This is a personal acnedote that can't be disputed or challenged since you didn't give any source that can be verified. However, the huge increases in the money supply are not accomplished these days by printing currency. In fact, the amount of circulating paper has remained fairly static if not going down. The huge increases are electronic and have not been released into the system and are instead, being held by the Federal Reserve. This is why there hasn't been whole scale inflation related to the huge increases. So the amount of OT of workers at the BPE is irrelevant and isn't a predictor. It's easy enough to simply go to the US Treasury and Federal Reserve websites and look at the US balance sheets. It's not a secret and no insider contacts are needed. ---------------------------- The rise in gold and silver prices is not due to direct inflation (i.e. caused by increases in money supply). What is happening instead is that actions of the government, have shaken confidence in the United States government in terms of fiscal policy and the $ is suffering because large holders of this debt are looking for alternatives to protect their reserves. Thus gold is going up because other countries are looking to increase their reserves of this metal to offset losses in their $ reserves. These countries still hold $'s due to one important fact that should not be lost on anyone. It's the only way to buy oil. The US government insures, based on it's military that any country with $s, can buy oil with that money. It's a powerful motivation to hold US dollar reserves and one lost on most people. Still, the countries don't like what the Federal Reserve is doing and are buying gold as a hedge. This is one of the reasons that China, aside from buying gold itself, is encouraging its citizens to buy gold as well. They apparently believe that if there is some sort of return to gold as a standard, then their population will already be used to it. Silver on the other hand does not have the same role in the world financial system and is not dependent upon this sort of activity. It's rise is in part symbiotic and in part due to some sort of ongoing activity that seems to be taking place on silver contracts at the Comex. IMO, it's a much more risky investment and one that will be quicker to surprise it's holders.[/QUOTE]
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