My Search for Gold and Silver in the Philippines

Why Silver?

noreply@blogger.com (pregusay) — Thu, 11 Feb 2016 16:40:00 -0800

Metals Expert Mike Maloney explains why we all need to have Silver Investments in our portfolio.

This is a real eye opener!

Being a silver bug since 2008. I know Silver prices are on the low side right now. There is a way to own silver even if we are here in the Philippines.

This will help each hedge our savings from currency uncertainties. Do yourself a favor by buying some silver for you and your family.

Gold Money opens Hong Kong and Singapore Vaults

noreply@blogger.com (pregusay) — Thu, 28 Mar 2013 11:20:00 -0700

In my past blogs, I have shared how I accidentally was able to open an account in Gold Money in 2009 through BDO Unibank. That was a one hit wonder and I could not fund my holding account since BDO said that it was illegal to do so and that they were penalized for allowing my transactions to Gold Money.

According to the increase in the price in gold and silver, my investments have since grown by 150 to 200% since that time. I wonder at the peculiarities of our national laws, banning the participation of citizens in the acquisition of precious metals when in fact, the scams that have ravaged Philippine society in the past years headed by the recent "Aman" have remained unpunished.

Had those citizens especially in the parts of the Zamboanga Peninsula resorted to buying gold and silver where it is graciously found, they would have been in a better predicament than they are now and tons of cash could have been preserved than believing on these financial saviors who have left them sheepishly cashless.

Anyhow, for those who are seeking still to invest in this segment of precious metals, here is a statement from the Gold Money website:

Quick, online sign-up process for residents in Singapore & Hong Kong

Customers resident in Singapore and Hong Kong can get started quickly with a Basic Holding and later upgrade to a Full Holding as more funds are transferred-in for metal purchases.

What is a Holding?

To buy precious metals with GoldMoney, you first need to open a Holding, which is the digital customer file where the ownership of your metal and your transactions are recorded. We have deliberately chosen the word ‘Holding’ instead of ‘Account’ to make it clear to our customers that they own the metal and it is held in their name. GoldMoney does not charge a fee when you first sign up or when you upgrade from a Basic to a Full Holding.

GoldMoney Holding Types

Residents in Singapore and Hong Kong can choose between two types of Holding: Basic and Full. Basic Holdings are easier to set up due to lighter regulatory requirements, but offer less functionality than Full Holdings.


Photo courtesy of : www.goldmoney.com

At least, this investment institution will now be at arms length to the Filipino who wants to preserve their purchasing power and enjoy the maximum returns that come from owning precious metals.

As the investment grade rating of the Philippines has just been declared, we hope that Gold Money would consider opening their vaults here in the country as well.

GoldSilver.com Review - A Place for Beginner and Professional Investors

noreply@blogger.com (pregusay) — Tue, 28 Feb 2012 04:53:00 -0800

Gold and Silver, Inc. (GoldSilver.com) can be seen as an industry resource for people who want to invest in the precious metal industry. Anyone who has ever wanted to make an investment in precious metals but don’t really know how to get things started will definitely need a coach to walk them through the baby steps in this venture. It is a fact that precious metals like platinum, silver, and gold have long been seen by experienced investors as a solid investment option.

Precious metals are almost always considered stable even in times of worldwide economic uncertainty. Even if the economy turns out for the worse, precious metals will still thrive in such harsh financial and economic conditions.

Those who are seeking both to diversify and add a further base to their investment portfolio should take a closer look into investing in metals as a viable next step in their growth. However, do take note that just like any other investment, it will also entail a certain degree of risk.

The GoldSilver.com Advantage

This is pretty much where the experts and professionals of GoldSilver.com come in. They are composed of specialists in the precious metals industry who aid newcomers and existing players invest in gold and other metals such as platinum or silver.

Another advantage is the fact that this experienced team of professionals is headed by Mike Maloney who is more than just an expert in the industry. Maloney is also a renowned consultant and is also the advisor in the precious metals industry to Robert Kyosaki, popular finance guru of the widely read and distributed Rich Dad Poor Dad fame.

Click here to find more reasons to enter gold investing with GoldSilver.com

The Gold and Silver Advantages in a Glance

• Gold investing as well as investing in other precious metals is made a lot easier since the company invests alongside the clients that they are mentoring. The company itself has that vested interest in its clients and positions itself to provide an assurance of profit and an ample degree of protection. This environment of mutual benefit ensures the success of both the company and the clients it serves.

• Customer education is foremost in the investment program instituted in Gold and Silver, Inc. Before the company’s clients begin investing in silver or other metals traded in the industry, they are first provided enough information to educate them about the said venture. The company provides a level of education that is at par with the world’s best but it is provided free of charge.

• Clients will also benefit from first class intensive industry research that updates current clients and members with industry news, market strategy, webinars, and real time account updates.

• Gold and Silver, Inc. also offers five custodial services and a several vaulting options in various locations around the world. Leading global logistics providers secure the client’s holdings and they offer their services at quite a remarkably reduced cost.

Click here to see the comprehensive offerings provided by GoldSilver.com

The GoldSilver.com Drawbacks

• The only downside to Gold and Silver, Inc. is that they usually cater to higher end bullion investors. Smaller entities may have to work it out a bit before they may be engaged.

The GoldSilver.com Guarantee

With a plethora of advantages, newcomers will be immersed in an environment full of potential and information with Gold and Silver, Inc. The minor bump in the course of the endeavor can be worked and people investing in metals can reap the benefits they deserve.

We hope that you found this GoldSilver.com review informative and has been helpful in your research for information about precious metals investing.

Jim Rogers: US Govt to ‘Juice Up’ Economy in Election Year

noreply@blogger.com (pregusay) — Sat, 14 Jan 2012 08:17:00 -0800

Article from: www.moneynews.com

The U.S. government will spend beyond its means and the Federal Reserve will print money to juice up the economy as part of an election-year popularity ploy, says international investor Jim Rogers.

"You have to remember two things — election in America in November, so you are going to see a lot of good news. Of course you have the American government spending staggering amounts of money right now, printing a lot of money and getting ready for the election," Rogers tells The Economic Times, an Indian English-language daily newspaper.

"It happens every four years in America. They do their best to get the economy juiced up so they can win the election."

The Federal Reserve has carried out two rounds of quantitative easing, which are asset purchases from banks with freshly printed money designed to pump up the economy, and some Fed officials have said a third round may be needed this year.

Under such a scenario, investors should invest in the commodities, which strengthen amid a weakening dollar, the side effect of accommodative monetary policies.

"If the world economy gets better, then obviously commodity prices will do well because of the shortages," Rogers says.

"If the world economy does not get better, they are going to print a lot of money and you need to own real assets when they print money and yes there are 40 elections this year and yes they are going to print more money."

Some Federal Reserve officials say encouraging economic indicators, such as December's jobs report that showed the economy added a net 200,000 nonfarm payrolls, make further quantitative easing unlikely at this time.

"Hopefully, we will keep this momentum going in 2012," says Federal Reserve Bank of St. Louis President James Bullard, according to Bloomberg.

"The tone of the data has been very strong" and the central bank "probably could wait and see for now" before deciding whether there is a need for more accommodation.

Expect another cash into the international money system which will create a phantom financial health throughout the world. Now is indeed a good time to buy gold and silver while prices are still low!

Silver may have role in cancer fight

noreply@blogger.com (pregusay) — Sun, 23 Oct 2011 07:28:00 -0700

Silver may have role in cancer fight

SCIENTISTS in Yorkshire plan to examine using silver to treat cancer.

Drugs containing metals including platinum and copper have already been proved effective treatments but they cause severe side effects.

Silver has a lower toxicity and compounds have been created from it which kill cancer cells in the laboratory.

Now the charity Yorkshire Cancer Research has awarded researchers at Bradford and Leeds universities more than £44,000 to carry out further research in the field.

Roger Phillips, of the Institute of Cancer Therapeutics at Bradford, said: “Silver is inherently well tolerated and doesn’t cause the same level of toxicity to normal tissues as other heavy metals.

“This project will determine how these compounds work and start to address the key issue of whether they are selectively active against cancer cells.”

*Imagine the impact of this research on the supply of silver in the world!

Gold and Silver as Investments

noreply@blogger.com (pregusay) — Tue, 23 Aug 2011 01:09:00 -0700

Gold Silver Investments

With the current downgrade of the American economy, a lot of people are frantically looking for other “safer” medium of investments. From our experience, one of the best things to do in these desperate times is to invest your hard earned money in both silver and gold coins.

You'll need Flexibility

Investing in both gold and silver coins is very convenient. If you have both precious metals in your investment portfolio, you then have more options which to trade depending on their price behavior in the market. Unlike if you only invested in gold, your trading options are severely limited. You are more able to make better investment decisions if you have both silver and gold coins in your portfolio.

In a situation when silver prices are going down, you can easily go and make a killing on this opportunity.

Silver is also a lot cheaper compared to gold (hopefully it stays this way). Therefore, you can buy silver even if you only had a few bucks in your bank account. You definitely do this with gold coins as they are a thousand times more expensive than silver.

But as you may already know, whether you invest in gold, silver, or even platinum, it doesn’t matter. The important thing is you are investing your hard earned cash in precious metals to protect it from crazy market movements.

Why Invest in Gold and Silver?

Buy gold. Buy silver. Buy Platinum. Keep your portfolio diversified. This is the best way to “immunize” your money from economic “flu” (which has a habit of coming back within a few weeks or so). History shows us that whenever the once-mighty dollar takes a plunge, precious metal prices go up.

Act now!

A lot of traders are speculating that silver prices can reach up to $180-$200 very soon. So if you were sitting on the fence it’s time to strike while the silver is hot! You don’t want to keep waiting until it is everlastingly too late. The way things are going right now, I’m willing to bet that silver is going to hit the hundred dollar mark pretty soon.

Where to invest in Gold and Silver?

Well, I’m glad you asked this question. You can buy silver here. Or gold here. You can also check silver coins here.

How to invest in gold and Silver?

Click here for more on investing in gold and silver.

The resistance prices have been breached

noreply@blogger.com (pregusay) — Fri, 19 Aug 2011 23:57:00 -0700

You have recalled that I mentioned about the metals having a distinct behavior of going against a "wall" or "resistant" or "ceiling" price for awhile before continuing its bullish ways. This behavior in the prices have been observed by long time fans of precious metals since it was neglected by sophisticated investors.

If you have navigated the price bar of the metals on the left side of the blog, then you may have observed that silver is on its bullish ways again, after hitting the 35$ per ounce price wall for a few months. Well, gold is another story since it is the premiere metal of choice especially in this shaky financial environment that the US has dug itself in. In 2008, Gold was roughly 900$ per oz and I was exclaiming to myself that that was a great amount to be investing funds in, look at it now, my investment just took on a 100% appreciation since then.

Here is Robert Kiyosaki's take on this, which he posted in his Conspiracy of the Rich website:

"Online Exclusive Update - #97
August 19, 2011

Wait for the Crash
I just got off the phone with my friend, Richard Duncan. He is the author of The Dollar Crisis and the Corruption of Capitalism. These are must read books.

Richard is an American who now lives in Thailand. He’s worked for the World Bank and the IMF. In my opinion, he’s the smartest economist in the world. It’s due to his books and speaking at Rich Dad events that I have a better view on the world, its current problems, and the future.

Richard and I spoke in L.A. a few months ago at a Rich Dad Education event. We came to the same conclusion: once the Fed’s second round of quantitative easing (QE 2) ended in June, the economy would contract. Today, this is happening, causing the wild swings in the stock market.

We also forecasted that the Fed would wait for the pain to get intolerable and then would reenter with a third round of quantitative easing. Simply said, the Fed will wait for us to beg for the poison that is killing us… more counterfeit money.

The good news is that if the Fed does wait for us to beg, prices will collapse. This means gold, silver, and oil will come down in price…maybe. In other words, wait for the pain to bring down prices before chasing the high prices of gold and silver.

I’ll share more from my discussion with Richard later on in further COR updates. As you know there’s a lot going on, and this is no time to be passive. Things are changing too rapidly, and one mistake could spur the New Depression."

This is not good for those who continue to shrug off the power of the metals in hedging wealth. Get some for yourself while there is still time!

US credit downgrade worries Pinoy biz owners

noreply@blogger.com (pregusay) — Wed, 17 Aug 2011 05:38:00 -0700

By Steve Angeles, ABS-CBN North America News Bureau
Posted at 08/10/2011 6:14 PM | Updated as of 08/10/2011 6:14 PM

CERRITOS, California – Members of the Filipino American Chamber of Commerce of Orange County are worried that the recent downgrade of America’s credit rating from AAA to AA+ will negatively impact their businesses.
Jun Jao, a vice president of the Hay of California Insurance Services, said the effects of the Standard and Poor’s (S&P) credit rating could trickle down to his company’s clients.

He said the credit downgrade could tighten overnight lending standards, and could make it difficult for businesses to borrow money to meet operating costs.

“We’re probably going to see a lot of our companies closing shop and laying off employees. So it could have a big effect on the insurance industry,” he said.

Jao is hoping another government initiative can offset any losses during these tough times. He’s expecting the healthcare reform bill to bring more to his insurance business.

Jewelry manufacturer Jules Barba is worried that the possible job losses that could result from businesses closing shop may mean slower manufacturing. Manufacturing is one of the pillars of the US economy.

“When there is fear of losing a job then you don’t spend the money and that affects our business,” said Barba, who owns JB Diamonds & Fine Jewelries.

The entrepreneurs believe the possibility of a second recession will force them to become creative.

S&P also downgraded the credit rating of two key private companies that receive federal financing, Freddie Mac and Fannie Mae, that guarantee half of all mortgage loans in the US, reported CNN.

Both received a lower credit rating of AA+, from its previous AAA rating. S&P said the downgrades reflect their “direct reliance on the US government.”

“Certainly, the downgrade could have negative impact effect in terms or rising interest rates,” realtor Lawrence Yun told CNN. “You can damage consumer confidence and many people who are ready to enter the housing market may become more hesitant about entering.”

Homeowners with adjustable mortgages about to reset may find themselves with higher monthly payments, if interest rates were to go up.

Meantime, S&P’s credibility has been questioned, following its decision to downgrade America’s credit rating. The agency said it doubted the country’s moves to reduce its long-term deficit, and the ability of the country’s leadership to solve its problems.

A recent USA Today Poll reflected the public’s dissatisfaction: 56 percent believe incumbent representatives in Congress should not be re-elected.

Economists criticizing S&P have argued that the US can repay its debt. Another credit rating agency, Moody’s, has maintained the country’s triple A credit rating.

*The world financial roller coaster is entering full speed!

The Philippines: Mining magnet

noreply@blogger.com (pregusay) — Wed, 10 Aug 2011 07:29:00 -0700

fr: The Oxford Business

The mining industry in the Philippines seems set for a boom, with earnings advancing and large-scale projects scheduled to come on-line over the next few years. However, lingering concerns over the global economy could dent demand and slow the flow of investment, as could uncertainty over regulations governing the industry.

It is estimated that the Philippines is sitting on some $1trn-worth of mineral wealth, with gold, nickel, copper, silver and zinc the largest reserves. If anything, this estimate is on the conservative side, with many regions of the widespread country yet to be fully surveyed for potential deposits.

It was not until 2005 that the industry really began to take off, after the Supreme Court confirmed the legality of the 1995 Philippine Mining Act, which allowed 100% foreign equity in mining projects. The long-running dispute over the act, with legal suits and court hearings dating back to 1997, had done much to discourage overseas investment in the sector. Combined with government efforts to streamline bureaucratic procedures, including speeding up the approval process for new projects from three to five years to just six months, the final confirmation of the act’s validity did much to boost interest in the industry.

That interest is now paying dividends. A report issued on May 31 by the Mines and Geosciences Bureau (MGB), part of the Department of Environment and Natural Resources, forecast the value of metallic mineral production in the Philippines to soar by 24% this year, with earnings of $3.1bn, up from $2.5bn in 2010. These figures do not take into account non-metallic mining activity, which is estimated to have accounted for $750m last year. Overall, mining contributed 1.7% of GDP in 2010, a figure that could well hit 2% if, as the bureau predicts, metal prices remain strong throughout the year.

“This optimistic outlook can be attributed to the sustained upbeat price of metals in the world market during the year, coupled with the projected growth in the mine output of local mineral producers,” the MGB report said. “Given the current state of the world economy, gold and silver, with their commercial and monetary utility, are expected to remain bullish.”

Though a renewed global economic downturn may prompt greater demand for precious metals such as gold, a return to recession could see other segments of the Philippine mining industry feel a chill, with nickel, sands, gravel and cement production in line for a slowdown if demand cools.

Another concern local and international mining companies have is the differing layers of administration in the country, with regional governments at times enacting regulations that are at odds with national laws governing the industry. One such issue involves Xstrata’s $5.9bn Tampakan Copper-Gold Project in the southern province of South Cotabato, which has faced long delays after the local government imposed a ban on open-cut mining.

While the company is still hopeful it can have the ban overturned by presenting a favourable environmental impact study, and the Department of Justice has advised that the local action is contrary to national legislation, there is no guarantee that the order will be lifted and work allowed to resume. There have been bans on mines in other regions as well, but none involving projects as large as Tampakan. Such uncertainty can make investors uneasy, especially when large sums of money are involved in what is already a risky industry.

If Tampakan, which is still scheduled to begin full production in 2016, does get the final go ahead, it has the potential to become the biggest mine in the Philippines and the fifth-largest copper mine in the world. The project’s supporters claim the mine will add a full 1% to GDP when it comes on-line, and provide much-needed employment in the South Cotabato region.

A proposal by the Department of Environment and Natural Resources to add a 5% royalty fee to the current 2% excise tax and other levies – amounting to some 15% of gross revenues on most mining operations – has also been met coolly by the industry. Some, such as Gavan Collery, the vice-president for corporate affairs at Indophil Resources NL, one of the partners in the Tampakan project, feel that a hike in duties may stifle the industry just at the time it is taking off.

“The mining industry is very young,” he said in an interview with Business World on June 16. “We’d like the government to ease off a little bit and allow the industry to go forward.”

Though some miners remain cautious, government officials have vowed to dig in and overcome any obstacles to future growth in the industry. Speaking in the Australian capital, Canberra, on June 16, where he was attending a joint Philippines-Australia ministerial meeting, the trade undersecretary, Adrian Cristobal Jr, said the government was determined to promote mining.

“There are issues and challenges in mining but that is not unusual in mining for any country,” said Cristobal. “There are policies and laws that will have to be reviewed. We are determined to resolve these issues.”

While the government may be determined, so too are many opponents to large-scale mining, and it may take some time for the concerns of both the industry and lobby groups to be addressed and a balance struck to allow for sustainable development. Once that is achieved, the Philippines will be able to exploit the gold mine it is already sitting on.

*You better believe this!

The worst is yet to come

noreply@blogger.com (pregusay) — Mon, 1 Aug 2011 08:10:00 -0700

By: John Mangun / Outside the Box (www.philstar.com)

Constantly being accused of being a wild and crazy optimist, (especially about the Philippines), for once I thought I would share some very negative thoughts.

All the nonsense talk these past two weeks about the possibility of the US not paying its debt was foolish. First, the US government takes in all the money it needs each month to pay its international “credit card” bills. Thank goodness, because the US owes the Philippines about $50 billion that the Bangko Sentral loaned to Uncle Sam. Oh sure, the US only pays the minimum monthly payment but that is just enough to avoid default.

Second, the real issue was and is the amount of debt, not the monthly installments. Here the situation is much more serious. It is only a matter of time before the sovereign credit-rating agencies lower the US AAA rating. Completely inevitable.

Money, international capital, is like a gold-digger, only interested in the next high-profit opportunity. While the global markets breath a silly sigh of relief that the US will not default, the rating agency Moody’s has already said “The ‘limited magnitude’ of both debt plans put forward by congressional leaders would not put the nation’s AAA credit rating back on solid footing,”

The conversation about the credit rating is simplified to “Can they pay their bills?” It is not about paying the bills as much as it is about total financial solvency. I have a neighbor that pays six or seven credit cards and loans each month. And every month he goes farther and farther into debt, just like the US government. It is not a matter of being “broke.” It is a matter of using a lot of your income to pay your debt and, most significantly, spending borrowed money. My neighbors borrow money to pay the school tuition.

The US government borrows 43 cents for every dollar that it spends. Why did the US need to raise the debt ceiling (credit-card limit) by $2 trillion? Because in the next 18 months it will spend about $5 trillion; $3 trillion it takes in from taxes and $2 trillion it borrows. Not a sustainable situation.

Yesterday the peso rose to 41.997 to the dollar. Expect to see peso appreciation continue. When (not if) the US credit rating is lowered, lenders will want a higher interest rate. That will put more dollars into the global financial system and the value of the dollar will continue to fall.

Two years Obama and his band of economic fools believed that the US economy was suffering from a liquidity problem. That is, they thought that there was not enough money in the financial system so they lowered interest rates to zero and told the banks to lend out very cheap money to get economic activity going. Two years later there is very little lending and almost no economic activity.

The latest revised economic figures almost ignored during the debt talks show that the US economy grew by a total of 1.6 percent in the last four quarters. Not 1.6 percent per quarter; 1.6 percent total. And the US needs in excess of 2-percent annual economic growth just to keep from going down more.

It was not a liquidity problem; it was a solvency problem. The US was not broke, meaning out of money. The US was and is insolvent, bankrupt, owing more money than it has assets. And the banks would not and will not lend money to individuals and businesses that are insolvent.

It is like my neighbor asking for some cash until he gets paid on the 15th. Sorry partner. Your paycheck coming on the 15th is already spent and the only way you are going to be able to pay me is to borrow from someone else. That is the US financial situation, both public and private, and it can only get worse because there is so little wealth-creating business activity going on.

Overall, Europe is in worse financial shape than the US. But the US is the big dog while Europe is the sick little puppy. And this is the important thing to consider.

The US, Europe and China are economically joined. It is not going well for China. China’s purchasing manager’s index (PMI) fell to a 29-month low in July to 50.7 percent. The PMI measures if companies business (production, new orders, employment) is “better,” “same,” or “worse” than the prior month. A reading of below 50 says business activity is decreasing.

The next 12 months are going to see a further deterioration of the US economy bringing a lower dollar and higher unemployment. The worst is yet to come for them.

*If this information astounds you then it is time for us to take action by securing ourselves through precious metal investments.

Fresh news from Kiyosaki

noreply@blogger.com (pregusay) — Tue, 19 Jul 2011 06:33:00 -0700

Here is an online post from Conspiracy of the Rich author, Robert Kiyosaki. This will explain further why metals are the hottest investments in the next few months and years. Buy while they are still at a low.

"Online Exclusive Update - #91
July 18, 2011

Gold on Fire
On July 1, 2011, gold was $1,486. By July 13, 2011, gold hit $1,583, a rise of $97.

As followers of Conspiracy of the Rich, you’ve probably been expecting this rise and have a better understanding than most people of the historical reasons why gold is on fire. I still stand by my prediction of gold sailing past $7,000 in a few years.

The rise in the price of gold is not good news for the world. It means more and more people are losing confidence in our leaders. If gold passes $7,000 an ounce, a gun and lots of ammunition may be the best investment. Oh, and don’t forget food, water, and gasoline.

As you may know, the US is locked in a disgusting battle to raise the national debt limit by early August. The Democrats want to raise taxes and the Republicans want to reduce welfare.

If you’ve read my latest book, Unfair Advantage, you know that the increase in taxes will not be on the rich. The increase in taxes will be on the high-income professionals—people such as doctors and lawyers—and the middle class.

As far as welfare and pension recipients go, they’ll probably be taking pay cuts. The biggest targets of all are Social Security and Medicare. I wonder what will happen when those large deficits are cut—if they’re cut—as Greece and Italy have done.

If that happens, it’s likely the US will experience riots much like the riots seen during Vietnam. Interestingly, it will be the same group of people rioting, the baby-boom generation. Maybe their kids and grandkids will join them.

As stated in Conspiracy of the Rich, the rules of money changed in 1971. The problem is that the baby-boom generation didn’t get the news and didn’t change their rules of money.

It’s still not too late to change your rules of money. In fact, it’s during times of chaos that the most opportunities appear.

As stated in Unfair Advantage, “2010 has been my best year so far.” As gold and silver continue to rise in price, and more dead real estate deals float to the surface, 2011 may be even better than 2010 for me and Kim.

I encourage you to not expect our political leaders to save you and to instead continue to save yourself. And the best way to save yourself is to change your personal rules of money and not follow the thundering herd that is being driven over the cliff.

Rising gold prices aren’t a good sign for our future."

Dip Could Signal Buy for Gold, Silver

noreply@blogger.com (pregusay) — Mon, 20 Jun 2011 08:42:00 -0700

By Marco Hague (Click here for original article)

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (TheLFB-Forex) -- There are very few news wire headlines to impact gold (1520) and silver (34.60) bullion trade. The precious metal markets continue to trade in tight ranges, with the majority of any 24-hour price movement being contained in one or two 30-minute periods of trade.

Today is not the day to be looking for gold and silver bullion trades.

Outlook:
Gold and silver trade is oversold in the near-term, with a neutral mid-term momentum read. The four-hour trends are flattening out, which sets up a sell-the-test-of-resistance play from the next upside move toward 1550 on gold and 37.50 on silver. The buy-the-dip play at support around 1505 and 34.00 is now going to be closely monitored. The last 12 months of gold and silver trade have shown a strong tendency to find buyers at support.

The potential for trade signals to form today is weak, as volatile periods of trade continue to hit the bullion markets. Moves higher through resistance are struggling to hold for more than one trading session at a time. With equity momentum looking like it will transpose itself into USD mid-term buying, moves higher in gold and silver trade will continue to be choppy and overlapping.

Any existing gold or silver positions should be closely monitored while recent price action is absorbed. There have been very few clear-cut signals in the bullion market recently. Potential short signals are against the overall trend and have not yet confirmed they can easily follow through.

Bullion Price Action:
Strong buying activity was seen at 1490 on gold, and at 33.00 on silver in April and May. These swing point areas will be closely monitored, as it does seem that they are allowing a strong base to form.

Main gold support: 1470. Main gold resistance: 1550.

Main silver support: 34.00. Main silver resistance: 39.50.

Daily trading range is $24 on gold and $2.50 on silver, which are above the historical norm and indicate that speculative interest is still high, and dips will likely continue to be bought.

*I totally agree with what this article is saying. Buy now while metal prices are at a low point, reverse your strategy and do not buy when prices start to soar.

Gold, Silver Prices Mixed Before Fed Comments

noreply@blogger.com (pregusay) — Sat, 11 Jun 2011 07:26:00 -0700

Click HERE for original article

Gold and silver are waiting for Federal Reserve Chairman Ben Bernanke to speak at the International Monetary Conference in Atlanta, where he is expected to give his outlook for the economy at 3:45 p.m.

If the recent jobs and manufacturing data are causes for concern, speculation will ignite over the possibility of another quantitative easing program, i.e. lots of cheap money in the system, which would be good for gold and silver as inflation hedges. On the other hand, if Bernanke acknowledges the disappointing data but signals the economy is on track, experts will be looking for signs of monetary tightening like a rate hike.

In the meantime, gold has been stealthily zeroing in on its record close of $1,557.10 an ounce. Its record intraday high is $1,577.40, but a new record settle could put the metal back on investors' buy lists especially if fund managers jump back into the market.

Phil Streible, senior market strategist at Lind-Waldock, said gold will resume its uptrend "as long as we stay above $1,515." Streible sees prices between $1,580-$1,620 an ounce once gold sees a two-day close above the $1,550 level.

A weaker dollar should help gold and silver prices. The U.S. dollar index is currently down 0.63% at $73.52 as the European Union, IMF and European Central Bank seem intent on helping Greece out of its fiscal crisis.

There are also increased expectations that the ECB at its meeting Thursday could signal an interest rate hike of 25 basis points in July. The key phrase will be "strong vigilance," which has been the signal of a rate hike in the past. Inflation was reportedly 2.7% in May above the central bank's 2% target rate. A rate hike would give more confidence to the euro and pressure the dollar.

Streible points out that gold has been moving with the dollar recently, disrupting their typical inverse correlation, but a weaker dollar makes gold cheaper in other currencies, which will only add to its appeal. Streible isn't scared off by high prices and urges investors who aren't exposed to gold or silver to dollar cost average each month, or buy a set amount of the metals regardless of price.

*The US Financial position is going to get worse.

New Hong Kong commodity exchange to give Asia bigger role

noreply@blogger.com (pregusay) — Fri, 20 May 2011 07:53:00 -0700

(The Philippine Star) Updated May 19, 2011 12:00 AM Comments (0) View comments

HONG KONG – A new commodity exchange began trading Wednesday in Hong Kong as the Asian city attempts to challenge established markets in Europe and the US.

The only product available to trade so far on the Hong Kong Mercantile Exchange is a futures contract for one kilogram of gold with physical delivery in Hong Kong.

But there are plans for other products involving precious and base metals, agriculture, energy and commodity indexes. Officials have also hinted at products denominated in yuan as investor demand grows for China’s gradually strengthening currency.

Exchange officials said that Asian countries, especially China and India, have been driving demand for global commodities and the new exchange is aimed at helping traders in the region have a bigger say in setting prices.

Trading of gold and other major commodities has traditionally been dominated by exchanges in Chicago, New York and London.

The new exchange’s 15-hour trading day will overlap with US and European trading hours, which exchange officials say will encourage cross-continent trading and boost liquidity.

Shareholders in the exchange include Industrial & Commercial Bank of China Ltd., the country’s biggest state-owned commercial lender, and Cosco Group, a state-owned shipping company. EN+ Group, a mining and energy group controlled by Russian tycoon Oleg Deripaska, is also a shareholder.

*Good news for Asians!

40 BIG signs the USA is at the brink of economic collapse

noreply@blogger.com (pregusay) — Thu, 19 May 2011 07:42:00 -0700

fr: chaospreppers.com

How in tune are you to what's going on in America? Do you realize just how close to complete ruin the whole Western world is financially?

Because you're probably busy making ends meet, spending time with your family, and enjoying life, we’re going to make things easy and provide you with a simple, scannable list to get you up-to-date on the real news you might not have heard about the real economic turmoil.

Here’s a compilation of economic depictions that indicate the proverbial apocalypse is indeed upon the West.

The following are 40 things that every American should know related to the collapse of the economy:

#1Right now we are watching what could potentially be the worst Mississippi River flood ever recorded play out right in front of our eyes. One agricultural economist at Mississippi State University believes that this disaster could do 2 billion dollars of damage just to farms alone.

#2The "tornadoes of 2011" that we just saw in the southeast United States are being called the worst natural disaster that the U.S. has seen since Hurricane Katrina. It has been estimated that up to 25 percent of all of the poultry houses in Alabama were either significantly damaged or destroyed. It is also believed that millions of birds were killed.

#3According to the Wall Street Journal, 5.5 million Americans are currently unemployed and yet are not receiving unemployment benefits.

#4The number of "low income jobs" in the U.S. has risen steadily over the past 30 years and they now account for 41 percentof all jobs in the United States.

#5All over America, state and local governments are selling off buildings just to pay the bills. Investors can now buy up government-owned power plants, prisons and municipal buildings from coast to coast. For example, the mayor of Newark, New Jersey recently sold off 16 government buildings (including the police and fire headquarters) just to pay some bills.

#6One out of every seven Americans has at least 10 credit cards.

#7Most Americans don't realize how much the U.S. dollar has been devalued over the years. An item that cost $20.00 in 1970 would cost you $115.93 today. An item that cost $20.00 in 1913 would cost you $454.36 today.

#8Those that were alive in the 1970’s will remember how much was made of the "Misery Index" during the presidency of Jimmy Carter (1976-1980). At that time, the "Misery Index" was constantly making headlines in newspapers all across the country. Well, according to John Williams of Shadow Government Statistics, if we calculated unemployment and inflation the same way that we did back during the Carter administration, then the Misery Index today would actually be higher than at any point during the presidency of Jimmy Carter.

#9When Americans think of "government debt", most of them only think of the federal government, but it is not just the federal government that has a massive debt problem. State and local government debt has reached an all-time high of 22 percent of U.S. GDP.

#10According to the U.S. Bureau of Labor Statistics, an average of about 5 million Americans were being hired every single month during 2006. Today, an average of about 3.5 million Americans are being hired every single month.

#11The economic effects of the BP oil spill just seem to go on and on and on. The number of very sick fish in the Gulf of Mexico is really starting to alarm scientists. The following is how one local newspaper recently described the situation....

Scientists are alarmed by the discovery of unusual numbers of fish in the Gulf of Mexico and inland waterways with skin lesions, fin rot, spots, liver blood clots and other health problems.

#12All over America, hospitals that care for the poor and needy are so overwhelmed and are so broke that they are being forced to shut down. Recently, a local newspaper in Florida ran an article about two prominent charity hospitals in Illinois that have served the poor for more than 100 years but are now asking for permission to shut down....

Two charity hospitals in Illinois are facing a life-or-death decision. There's not much left of either of them - one in Chicago's south suburbs, the other in impoverished East St. Louis - aside from emergency rooms crowded with patients seeking free care. Now they would like the state's permission to shut down.

#13The U.S. dollar is in such bad shape that now even Steve Forbes is predicting that the U.S. is "likely" to go back to a gold standard within the next five years.

#14The U.S. government now says that the Medicare trust fund will run out five years faster than they were projecting just last year.

#15Over the past 12 months the average price of gasoline in the United States has gone up by about 30%.

#16It is being projected that for the first time ever, the OPEC nations are going to bring in over a trillion dollars from exporting oil this year. Their biggest customer is the United States.

#17According to the Pentagon, there are minerals worth over a trillion dollars under the ground in Afghanistan. Now, J.P. Morgan is starting to tap those riches with the help of the U.S. military.

#18Speaking of J.P. Morgan, most Americans don't realize that they are actually the largest processor of food stamp benefits in the United States. In fact, the more Americans that go on food stamps the more money that J.P. Morgan makes.

#19When 2007 began, there were about 26 million Americans on food stamps. Today, there are over 44 million on food stamps, and one out of every four American children is on food stamps.

#20Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 Americans is on Medicaid.

#21Only 66.8% of American men had a job last year. That was the lowest level that has ever been recorded in all of U.S. history.

#22The financial system is more vulnerable today than it was back in 2008 before the financial panic. Today, the world financial system has been turned into a giant financial casino where bets are made on just about anything you can possibly imagine, and the major Wall Street banks make a ton of money from this betting system. The system is largely unregulated (the new "Wall Street reform" law has only changed this slightly) and it is totally dominated by the big international banks. The danger from derivatives is so great that Warren Buffet once called them "financial weapons of mass destruction". It is estimated that the "derivatives bubble" is somewhere in the neighborhood of a quadrillion dollars, and once it pops there isn't going to be enough money in the entire world to bail everyone out.

#23The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001, and the U.S. trade deficit with China is now 27 times larger than it was back in 1990.

#24In 2010, the number one U.S. export to China was "scrap and trash".

#25All over the United States, many of our once great manufacturing cities are being transformed into hellholes. In the city of Detroit today, there are over 33,000 abandoned houses, 70 schools are being permanently closed down, the mayor wants to bulldoze one-fourth of the city and you can literally buy a house for one dollar in the worst areas.

#26During the first three months of this year, less new homes were sold in the U.S. than in any three month period ever recorded.

#27New home sales in the United States are now down 80% from the peak in July 2005.

#28The European debt crisis could cause a global financial collapse like the one that we saw in 2008 at any time. The world economy is incredibly interconnected today, and the United States would not be immune. A recent IMF report stated the following about the growing sovereign debt crisis in Europe....

Strong policy responses have successfully contained the sovereign debt and financial-sector troubles in the euro area periphery so far. But contagion to the core euro area and then onward to emerging Europe remains a tangible risk.

#29According to one study, the 50 U.S. state governments are collectively 3.2 trillion dollars short of what they need to meet their pension obligations.

#30A different study has shown that individual Americans are $6.6 trillion short of what they need to retire comfortably.

#31The cost of college tuition in the United States has gone up by over 900 percent since 1978.

#32The combined debt of the major GSEs (Fannie Mae, Freddie Mac and Sallie Mae) has increased from 3.2 trillion in 2008 to 6.4 trillion in 2011. Thanks to our politicians, U.S. taxpayers are standing behind that debt.

#33The U.S. government is over 14 trillion dollars in debt and the budget deficit for this year is projected to be about 1.5 trillion dollars. However, if the U.S. government was forced to use GAAP accounting principles (like all publicly-traded corporations must), the U.S. government budget deficit would be somewhere in the neighborhood of $4 trillion to $5 trillion each and every year.

#34Most Americans don't understand that the Federal Reserve and the debt-based monetary system that it runs are at the very heart of our economic problems. All of this debt is absolutely crushing us. The U.S. government spent over 413 billion dollars on interest on the national debt during fiscal 2010, and it is being projected that the U.S. government will be shelling out 900 billion dollars just in interest on the national debt by the year 2019. This figure will be nearly equal to the entire amount taken in by the IRS for the year in the form of tax payments.

#35Standard & Poor’s has altered its outlook on U.S. government debt from "stable" to "negative" and is warning that the U.S. could soon lose its AAA rating.

#36U.S. households are now receiving more income from the U.S. government than they are paying to the government in taxes.

#3759 percent of all Americans now receive money from the federal government in one form or another.

#38The wealthiest 1% of all Americans now own more than a thirdof all the wealth in the United States.

#39The poorest 50% of all Americans collectively own just 2.5%of all the wealth in the United States.

#40The percentage of millionaires in Congress is more than 50 times higher than the percentage of millionaires in the general population.

The great correction

noreply@blogger.com (pregusay) — Sat, 7 May 2011 07:02:00 -0700

Many readers have been personally emailing me regarding information on investing in Precious Metals especially the alarming situation that greatly pumped the prices to staggering highs. I apologize if I am not able to respond promptly to everyone regarding their queries since it becomes impossible to interact with each one of you but I appreciate your interest in this subject.

For those who would like to start their acquisition of precious metals and are in the Luzon area, you can check www.philtecgoldatmanila.com, they are a refinery that sells and buys precious metals. I have referred many to this site and many have successfully bought their first holding from them since they are based in Makati. Another source is a refinery in Bicutan called PMR Golden Dream, you can check their contact information in the yellow pages of the PLDT directory under "refineries". There are also many legitimate sources out in Bulacan and Bicol, both of which have supplied me with actual metals.

Many have been asking me if I am selling anything through the blog, well, I'm not. But if you need help to acquire metals especially by the kilo then I can help you out for a little spread. If you say that I am doing that full time, my reply is NO. I am basically a Precious Metals Investor, holding for the long term and not a trader.

One of our readers had a very great grasp of the market when he was able to trade his metals while the prices where high (near 50$/oz) and that was perfect timing, this guy made a real killing. I, for one am not quite consistent in checking the prices since I know the fundamentals generally lead to a price hike over time. But most investors need to understand that the behavior of the metal prices tend to have "correction phase" or what I would personally call a "resistant price ceiling" it will attempt to run real fast, come down and move sideways before it continues it's bullish ways.

Do not be deceived that the prices are going low, this is signalling a good buy for everyone. Buy while it is still at mid-30s (as of today). Go to those referrals I have made at the beginning of this blog and get you some of them precious metals.

What I would generally advice our kababayans is not to be too obsessed with watching the price go up, because it will, it is just a matter of time. It is better to have a systematic way of saving up month on month to build your portfolio of actual metals. Some like to trade using ETFs which are fairly liquid but this takes a little sophistication on your part. If you do not know where to start then it is best to buy a little month on month. The refineries will buy your stocks below market price but if the price has gone up so rapidly then that won't really matter at all.

Good luck y'all!

10 Signs America Is Becoming a Third-World Country before Our Eyes

noreply@blogger.com (pregusay) — Fri, 29 Apr 2011 16:42:00 -0700

We all hear that the solution to the economic woes of our country is for its citizens to go abroad and work in the US and then have that citizen send money to their family and they will live happily ever after. Here is a little something to chew on from one of the newsletters that I receive from www.silver-investor.com.

The folks at Casey Research recently unearthed a perceptive little article titled "10 Signs the U.S. is Becoming a Third World Country." The list speaks for itself, as I have been warning my readers of all ten red flags for some time:

1. Rising unemployment and poverty (both are much bleaker than official reports portray, as government statisticians routinely "cook the books").
2. Economic dependence (debt above 90% of GDP).
3. Declining civil rights (Patriot Act and other privacy stealing mandates).
4. Increasing political corruption (not only the criminal trials and sex scandals that make for titillating headlines, but the insidious, below-the-radar payola system that corrupts government at all levels).
5. Military patrolling the streets (my newsletter has detailed the hush-hush training of thousands of U.S. troops for deployment in urban America).
6. Failing infrastructure (bridges, dams, oil and gas pipelines, power grid).
7. Disappearing middle class (massive, permanent loss of blue-collar jobs).
8. Devalued currency (the inevitable result of chronic deficit spending).
9. Controlling the media (the FCC, having effectively co-opted the major networks, is now eyeing talk radio controls and internet "neutrality").
10.Capital controls (preventing free markets and free people from correcting and disciplining the financial misdeeds of big government).

If the US is in trouble due to its fiscal deficit spending then the whole world is in deep trouble, financial collapse is a reality.

Thank you for being updated with these matters and securing your future by buying the right investment vehicles like precious metals.

News we all don't want to hear

noreply@blogger.com (pregusay) — Thu, 28 Apr 2011 08:07:00 -0700

While most of us are all busy with the day to day rudiments of our lives and a majority our worried on who gets to win whether in Mara Clara or in the upcoming Pacquiao-Mosley fight. This is a piece of news from one of my favorite authors- Robert Kiyosaki in his Online Exclusive update. Here is the letter-

"Online Exclusive Update - #85
April 27, 2011

Warning

Standard & Poor’s (S&P) rating agency warned the US of a potential downgrade in its credit status last week. Stock markets took a dive as gold and silver prices went up.

What does this mean to you? The answer is, “Nothing you don’t already know, if you’ve read Conspiracy of the Rich or have followed these COR updates.”

When you think about it, who doesn’t know the US has a debt problem? For years, New York City has had the debt clock ticking away, showing the millions of people walking past how fast the debt time bomb is growing.

The real problem is that while most of us know there’s a problem, few people are doing anything about it—especially our leaders. Rather than solve the problem, most people are scrambling for deckchairs on the Titanic, hoping for a good view of the sunset.

If you’ve followed my books, beginning with Rich Dad Poor Dad, which was published in 1997, I’ve always stated, “Your home is not an asset.” Last week, the CEO of Bank of America finally stated, “People should not consider their home an asset.” Slowly, but surely, the US is waking up to the realities of money.

In previous COR updates over the last year, I advised readers to buy silver under $20 an ounce. Since then, silver has gone from $17 an ounce to a high of $43 an ounce. The markets are reflecting the realities of money.

So what is a warning from S&P worth? Not much if people don’t heed it. And most people aren’t.

It seems obvious that the US is on a collision course with self-destruction. The US is like an alcoholic who insists on drinking or a smoker who insists on smoking. Warnings are of little use. We all know that if the US continues in the financial direction it’s going, there is a tragic end in the near future for our economy and our country. To me, it’s not “If” but “when.”

God help us all when the US, as we know it, comes to an end."

Now that is really news we all don't want to hear.

Silver surge prompts conspiracy theorists

noreply@blogger.com (pregusay) — Thu, 21 Apr 2011 21:14:00 -0700

In 1980 it was the Hunt brothers. In 1998 it was Warren Buffett. And in 2011?

For anyone unversed in the history of the silver market, those dates refer to market squeezes that caused surges in the silver price. The talk among some conspiracy-minded traders and analysts is that something similar could be happening today.  It is easy to see why: during the past 12 months the price of silver has risen 154 per cent, outpacing gold (32 per cent), wheat (65 per cent), oil (45 per cent), and indeed almost any investment you’d care to mention.

Perhaps the most telling measure, the ratio between the price of silver and that of gold is the price of an ounce of gold divided by the price of an ounce of silver) has dropped to 33.5 times – after averaging 60-70 during the past decade.   The last time the ratio fell even close to this level was in 1998, when Warren Buffett’s Berkshire Hathaway quietly accumulated a huge position in the silver market, driving prices up 90 per cent in a few months to what was then a 10-year high of $7.90.

On Wednesday, silver hit $45.37.  Before that, the last time the ratio was below 40 was in the early 1980s, following the most notorious silver market squeeze – that of William Herbert Hunt and Nelson Bunker Hunt, two billionaire oil baron brothers.   Is something similar happening today?   The silver market is never short of a wild rumor.

The difference this time, though, is that the conspiracy theories are being seriously considered by senior figures in the industry.   As one senior banker puts it: “I just do think it has the smell of somebody with a pretty significant buying program.

Silver is the sort of market that every decade attracts some one. ”  The reason why the conspiracy theories have taken hold is because few traders or analysts can see a convincing reason for silver’s astonishing rise. According to data from consultancy GFMS, the silver market was in a surplus of 178m ounces last year.  

Crucially, of course, that surplus was mopped up by investors. But visible investor positioning is hardly overwhelmingly positive – indeed, last week, even as silver prices rose, investors cut their bullish positions in the US futures market by 8.4 per cent.  

 Hence the conspiracy theories. Some of the whispers making the rounds in dealing rooms in London and Zurich include:   A Russian billionaire with an eye for silver has been discreetly buying (for some reason Russia seems to be the most popular location of this putative billionaire – he or she could also be Middle Eastern or perhaps East Asian). 

 There has been a secretive silver buying program by the People’s Bank of China or some other central bank (but China is the favorite).   Chinese traders are using silver imports as collateral to obtain credit in a similar way to copper – thus vastly inflating the country’s silver demand.   It is impossible to say if there is even a grain of truth in any of these tales.

While some traders are taking them seriously, others believe the rise in prices is perfectly well explained by very strong, inelastic industrial demand plus extremely high retail demand in the US, India and China.   One explanation for why the silver market is confusing to many bankers and traders may be that they typically deal with large investors and so see little of the flow to retail investors and industrial consumers.  

What is certain, however, is that with the view that silver is a speculative bubble so widespread, a sharp and painful correction can’t be ruled out.   Again, history may be informative. After the Hunt brothers’ squeeze in 1980, the price of silver collapsed 80 per cent in four months; the Hunts were later sanctioned for market manipulation and went bankrupt.  

And following Warren Buffett’s silver play in 1998, the price of the metal dropped 40 per cent and Berkshire Hathaway recorded its worst annual results on record, relative to the S&P 500, in 1999.   

*The silver market is about to enter a bubble phase.

Cash-strapped Belarus allows its currency to float

noreply@blogger.com (pregusay) — Wed, 20 Apr 2011 03:39:00 -0700

By YURAS KARMANAU
April 20, 2011, 4:15am

MINSK, Belarus (AP) – Cash-strapped Belarus announced Tuesday that it would allow its beleaguered national currency to float, effectively permitting its devaluation in a bid to ease a spiraling currency crisis.

International financial institutions have been calling for a sharp devaluation of the Belarusian ruble to help the former Soviet republic's foundering economy. The move was the latest blow to authoritarian President Alexander Lukashenko's attempts to show he can still deliver economic stability after 17 years in power.

The currency crisis, an increasingly severe crackdown on the opposition — including the arrest Tuesday of a human rights activist on suspicion of involvement in a subway bombing last week — have spawned a sense of rising panic and disorder in this nation of 10 million, often labeled the last dictatorship in Europe.

Belarus' first post-Soviet leader, Stanislav Shushkevich, told The Associated Press that Lukashenko's political survival now hinges entirely on another Russian loan.

"He will be able to ease social tensions if the Kremlin gives him another loan," Shushkevich said. "Otherwise people will start protesting. What we are seeing now begins to resemble the collapse of the Soviet system."

The government's hard currency reserves plunged 20 percent in the first two months of the year to less than $4 billion, and staples such as vegetable oil and sugar started vanishing from stores as people started to hoard.

Starting next week, banks will be able to buy and sell the Belarusian ruble at a rate determine in open trading, Central Bank deputy chief Nikolay Luzgin said, adding that the government will "take extra steps to balance the situation on the domestic currency market" after next week's trading.

The U.S. dollar stood at 3,074 Belarusian rubles on Tuesday. Stanislav Bogdankevich, former chief of the Belarusian central bank, told The Associated Press that he expects the ruble to drop by one-third after the float.

Importers of medicine and Russian natural gas will be able to buy foreign currency at privileged rates.

Even before the announcement, frightened citizens had been lining up for hours in the past few weeks to exchange their rubles for euros and dollars. Since the free float will initially affect banks, it was unclear how currency rates on the street will be affected.

"My short-term plan is to emigrate to Poland," said Pavel Korchevsky, 37, a businessman. "It's impossible to do business in a country where the president personally determines the dollar rate."

Belarusian authorities also announced sharp budget cuts Tuesday, reducing financing for investment programs by 30 percent and state office construction by 20 percent.

A long-standing social contract that asked Belarusians to give up their political freedoms in exchange for safety and a modest standard of living now appears to be fraying. The April 11 explosion in the capital's busiest subway station during an evening rush hour killed 13 and wounded more than 200 — the first deadly bombing in a nation where the opposition has been largely peaceful and militant groups have been unheard of.

Authorities quickly arrested a man accused of placing the bomb and four suspected accomplices, but haven't said who ordered the attack. Lukashenko responded to the subway blast by ordering prosecutors to interrogate opposition activists.

That made some bloggers speculate that authorities may have carried out the attack in order to distract Belarusians from the country's rapidly worsening economic situation.

Lukashenko responded with characteristic bluntness.

"Only idiots and scoundrels can allege that, only scum can do that," he said, arguing that the economic troubles and the subway attack had been carried out by unspecified forces seeking to subdue the nation.

Minsk, a city of drab suburban apartment blocks and broad central avenues lined with monumental Stalin-era buildings, looks tense, with police and military patrols deployed on the streets and the subway.

"Belarus has always been known for its stability and order, but the explosion has filled me with fear and anguish," 46-year-old Dr. Zhanna Pankratova said as she walked past the explosion site. "Whom can we trust now?"

Opposition leader Anatoly Lebedko expected the government to intensify its crackdown on dissent.

"If they announce a decision tomorrow to brand all members of the opposition with a hot iron, I will not be surprised," said Lebedko, who was released from a KGB prison earlier this month after 3 1/2 months in custody.

As if on cue, a top human rights advocacy group said Tuesday that one of its members had been arrested on suspicion of involvement.

The Belarus Helsinki Committee said that police were holding Pavel Levinov. Police could not be reached to confirm the arrest, but the head of the committee, Oleg Gulak, said he had visited the police station in the capital, Minsk, where Levinov was being held.

Another activist who was detained along with Levinov but later released said police broke into Levinov's apartment to detain him and several others.

The arrest adds to fears that Lukashenko is using the bombing, which killed 13 and wounded more than 200, as a pretext to pressure political opponents.

The government already has issued reprimands to two main independent newspapers and the prosecutor-general has threatened to "bring order" to the Internet, the last haven of uncensored speech in Belarus.

For most of his tenure, Lukashenko has relied on cheap energy resources from Belarus' main sponsor and ally, Russia, to maintain a quasi-Soviet economy complete with a social safety net that helped boost his popularity among the working class and the elderly.

But the Russian subsidies have dwindled recently as Moscow has pushed for control over Belarus' most prized economic assets, such as oil refineries and chemical plants, in exchange for more loans.

Even as state coffers were drying up, Lukashenko raised public sector salaries by 30 percent ahead of December's presidential vote to secure his re-election. The vote was harshly criticized by international monitors.

"Belarus was living beyond its means, and it was the president who made it do that," said Leonid Zayiko, head of the independent Strategia think-tank. "All the problems emerged because he wanted to remain president and raised salaries."

*Who says that the world economy is not in trouble?

Local investments in metals

noreply@blogger.com (pregusay) — Tue, 12 Apr 2011 09:35:00 -0700

If you are thinking in holding some of your wealth in precious metals then I would probably inform you that this type of vehicle is illiquid and though you can use capital gains in trading, I think the long terms benefits of buy and hold are a better option since fundamentals would indicate that the prices are definitely going for a bull run.

Because of the absence of a gold and silver bullion market place in the Philippines, it is often better to be able to procure metals from a refinery, a small mine or sources that have these in abundance. This country is one of the toughest places to buy these metals in their natural form since most of the rich and powerful are the ones calling the shots.

If you are able to travel to Hong Kong, you might be able to procure a few ounces of gold or silver bullions that you can take home.

Some have asked if trading gold and silver can be a lucrative business, my answer is Yes, but only if you are able to stomach an increase in value of metals week by week and knowing you are letting the products pass through your hands. Since 2008, prices of the metals have shot up heavily and to give you an estimate of how superior this is, silver has gone up 400% since the mentioned year.

A great transfer of wealth is about to take place and to keep yourself in the balance, you need to be very creative about how you place a certain percentage of your wealth and my best bet is in Precious Metals.

U.S. will hit debt limit by May 16 Geithner warns

noreply@blogger.com (pregusay) — Thu, 7 Apr 2011 08:28:00 -0700

By Jim Puzzanghera, Los Angeles Times

Reporting from Washington — Treasury Secretary Timothy F. Geithner said the U.S. will hit the limit on its borrowing capacity by May 16 and could start defaulting on some of its debts about seven weeks later unless Congress acts soon to raise the debt ceiling.

The Treasury Department had estimated that the nation would reach its $14.29-trillion debt limit between April 5 and May 31. But in a letter to congressional leaders, Geithner said new calculations based on projections of income tax receipts showed that the date will be no later than May 16.

The Obama administration is pushing Congress to increase the debt limit for the 76th time since 1962. The nation has never failed to increase the limit, Geithner said.

But Republican congressional leaders, including House Speaker John Boehner, and at least one Democrat, Sen. Joe Manchin III of West Virginia, have said they won't vote to increase the debt limit unless the move is accompanied by action to address the soaring budget deficit.

"Speaker Boehner has been perfectly clear: The American people will not tolerate an increase in the debt ceiling without serious spending cuts and real reforms to make sure we keep cutting spending," Boehner spokesman Michael Steel said.

As the date approaches, Geithner warned Congress in a letter Monday that it is risking "unthinkable" consequences if the U.S. no longer can borrow to pay its bills.

"If Congress failed to increase the debt limit, a broad range of government payments would have to be stopped, limited or delayed, including military salaries and retirement benefits, Social Security and Medicare payments, interest on the debt, unemployment benefits and tax refunds," he wrote.

"This would cause severe hardship to American families and raise questions about our ability to defend our national security interests," he said.

"In addition, defaulting on legal obligations of the United States would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans," Geithner continued.

"Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover," he said. The Treasury Department has the ability to maneuver some of its payments to buy some time, he said. But such "extraordinary measures" would push the deadline only to about July 8.

"At that point, the Treasury would have no remaining borrowing authority, and the available cash balances would be inadequate for us to operate with a sufficient margin to meet our commitments securely," Geithner wrote.

jim.puzzanghera@latimes.com

*Did you know that the US is spending more than 8 TIMES the revenue it is earning?

The superior gains on metals

noreply@blogger.com (pregusay) — Wed, 6 Apr 2011 08:07:00 -0700

Faster than an F1 race is the US race to debase the American dollar. To keep it's economy afloat, the Federal Reserve is betting on printing quadrillions of unbacked currency which in turns devaluates the existing money supply. Just like the tragedy in Japan where the first thought that comes is somewhat like this "Whatever nuclear radiation comes from the power plants, it won't affect me here in the Philippines!" Wrong answer.

Think again, since the US Dollar is the reserve currency of the world. The US is not only tricking it's citizens by over printing dollars, they are in fact robbing the entire world right behind our noses. The US of A is definitely digging it's own debt grave if there was such a term.

Because the US Dollar is the world's currency of choice, your peso which is constantly being pegged against the US dollar (get it?) will likewise also lose much of its purchasing power. I am not an economist but hey, that is outright common sense now is it?

Had you come into the market early in let us say 2008, your investment portfolio of metals could have risen 300% in the last 2 years, not bad. But there is no time to waste, Silver as we speak is spiking toward $40 per ounce and the situation is not getting any friendlier. Some financial gurus think that 1400$ per ounce Gold and 40$ per ounce silver will be bargains in the year 2012. So find out where you can acquire these metals in pure form and start gathering for yourself. If sophistication in investing is beyond you then start acquiring the metals on the side for yourself and realize the benefits of having a great investment vehicle in the next few years.

Consequences of the Arab revolt

noreply@blogger.com (pregusay) — Fri, 18 Mar 2011 06:36:00 -0700

Here is a commentary for Nouriel Roubini, the economist that successfully predicted the collapse of financial markets in the US last 2008. Wise advice from the man himself!

NEW YORK -- Political turmoil in the Middle East has powerful economic and financial implications, particularly as it increases the risk of stagflation, a lethal combination of slowing growth and sharply rising inflation. Indeed, should stagflation emerge, there is a serious risk of a double-dip recession for a global economy that has barely emerged from its worst crisis in decades.

Severe unrest in the Middle East has historically been a source of oil-price spikes, which in turn have triggered three of the last five global recessions. The Yom Kippur War in 1973 caused a sharp increase in oil prices, leading to the global stagflation of 1974-1975. The Iranian revolution in 1979 led to a similar stagflationary increase in oil prices, which culminated in the recession of 1980-1981. And Iraq’s invasion of Kuwait in August 1990 led to a spike in oil prices at a time when a US banking crisis was already tipping America into recession.

Oil prices also played a role in the recent finance-driven global recession. By the summer of 2008, just before the collapse of Lehman Brothers, oil prices had doubled over the previous 12 months, reaching a peak of $148 a barrel -- and delivering the coup de grace to an already frail and struggling global economy buffeted by financial shocks.

We don’t know yet whether political contagion in the Middle East will spread to other countries. The turmoil may yet be contained and recede, sending oil prices back to lower levels. But there is a serious chance that the uprisings will spread, destabilizing Bahrain, Algeria, Oman, Jordan, Yemen, and eventually even Saudi Arabia.

Even before the recent Middle East political shocks, oil prices had risen above $80-$90 a barrel, an increase driven not only by energy-thirsty emerging-market economies, but also by non-fundamental factors: a wall of liquidity chasing assets and commodities in emerging markets, owing to near-zero interest rates and quantitative easing in advanced economies; momentum and herding behavior; and limited and inelastic oil supplies. If the threat of supply disruptions spreads beyond Libya, even the mere risk of lower output may sharply increase the "fear premium" via precautionary stockpiling of oil by investors and final users.

The latest increases in oil prices -- and the related increases in other commodity prices, especially food -- imply several unfortunate consequences (even leaving aside the risk of severe civil unrest).

First, inflationary pressure will grow in already-overheating emerging market economies, where oil and food prices represent up to two-thirds of the consumption basket. Given weak demand in slow-growing advanced economies, rising commodity prices may lead only to a small first-round effect on headline inflation there, with little second-round impact on core inflation. But advanced countries will not emerge unscathed.

Indeed, the second risk posed by higher oil prices -- a terms-of-trade and disposable income shock to all energy and commodity importers -- will hit advanced economies especially hard, as they have barely emerged from recession and are still experiencing an anemic recovery.

The third risk is that rising oil prices reduce investor confidence and increase risk aversion, leading to stock-market corrections that have negative wealth effects on consumption and capital spending. Business and consumer confidence are also likely to take a hit, further undermining demand.

If oil prices rise much further -- toward the peaks of 2008 -- the advanced economies will slow sharply; many might even slip back into recession. And, even if prices remain at current levels for most of the year, global growth will slow and inflation will rise.

What policy responses are available to dampen the risk of stagflation? In the short run, there are very few: Saudi Arabia -- the only OPEC producer with excess capacity -- could increase its output, and the US could use its Strategic Petroleum Reserve to increase the supply of oil.

Over time -- but this could take years -- consumers could invest in alternative energy sources and reduce demand for fossil fuels via carbon taxes and new technologies. Because energy and food security are matters of economic as well as social and political stability, policies that reduce commodity-price volatility should be in the interest of producers and consumers.

But the time to act is now. The transition from autocracy to democracy in the Middle East is likely to be bumpy and unstable, at best. In countries with pent-up demand for higher income and welfare, democratic fervor could lead to large budget deficits, excessive wage demands, and high inflation, ultimately resulting in severe economic crises.

So a bold new assistance program should be designed for the region, modeled on the Marshall Plan in Western Europe after WWII, or on the support offered to Eastern Europe after the collapse of the Berlin Wall. Financing should come from the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, as well as from bilateral support provided by the US, the European Union, China, and the Gulf states. The goal should be to stabilize these countries’ economies as they undertake their delicate political transitions.

The stakes are high. Unstable political transitions could lead to high levels of social disorder, organized violence, and/or civil war, fueling further economic and political turmoil. Given the current risk-sensitivity of oil prices, the pain would not be confined to the Middle East.

Nouriel Roubini is chairman of Roubini Global Economics (www.roubini.com), a professor at NYU’s Stern School of Business, and co-author of the book Crisis Economics.

Hong Kong storage for metals

noreply@blogger.com (pregusay) — Wed, 16 Mar 2011 06:05:00 -0700

While going through the www.goldsilver.com website. I learned that they are now offering a storage service for metals purchased from them. Here is the overview from the service:

"GoldSilver.com offers the safest, most cost effective, and secure gold vault storage and silver vault storage services in the precious metals industry.

Our strategic partnerships provide GoldSilver.com Insiders the ability to attain fully insured segregated gold and silver vault storage around the world.

With segregated vault storage the silver and gold bullion products you purchase are held solely in the beneficiary title(s) you elect. The original products you buy are always stored separately never swapped nor comingled with other accounts.

Vault storage customers receive custody certificates documenting holdings and account inventory levels. All physical vault storage holdings are a secure phone call away from door delivery or to lock in a sellback price".

Now this is really good news if you are serious about stacking away your precious metals in a secure place and insured at that. Hong Kong is just nearby and therefore is a very feasible plan in the absence of such a service here in the Philippines.