Last Sunday, Sept. 15, marked the five-year anniversary of the collapse of Lehman Brothers. At that time the gold price was trading near the $900 per ounce level. I believed that to be on the high side, actually expecting gold to trade down to around $700.
Student loans are a scandal. They're also adding to America's personal debt burden. At the same time, extending education long into the start of middle-age income capacity only worsens the dependency ratio of earning workers to idlers.
In order to understand the demonetization of silver and later gold, one needs to explore the events in America of the period 1890-1913, which were dominated by Morgan, Rockefeller, Kuhn and Loeb interests.
One sector where we see a great amount of value is the uranium miners as the Chinese are going full speed ahead in building next generation nuclear reactors. The uranium spot price is just over $40, which is near the bottom of its three year range.
Since the 2008 financial panic, central banks in the US, UK, Europe, and Japan have experimented with the aggressive use of their balance sheets to stabilize their financial markets and encourage a return to higher rates of economic activity.
According to the former special inspector general for the $700-billion US Troubled Asset Relief Program (Tarp) that bailed out the US banking system in 2008, another financial crisis is all but inevitable and the cost will be even higher than the 2008 financial crisis.
It’s perhaps not so astonishing to see another financial firm blow up in a matter of a couple of days with a $440 million loss due to a software malfunction. But this is a reminder just why holding physical gold and silver in your portfolio is a good idea.
Gold is weaker again today despite heightened risk aversion on fears that the euro crisis is escalating. Concerns about Italy have resurfaced after their 10-year bond yield rose above the important 6% level this morning.
Judging by the mail the situation seems dire and ominous to many. We don't have the numbers, but we would wager that the number of times the words "collapse," "panic," "recession," and "double dip" are being used by is near a high point.