Archive for the ‘Your Money’ Category

Quite the wake-up call for those of us who think we’re actually better off than our parents and grand-parents. This soft-spoken guy packs a serious punch.

Ebay Silver Maple Price Summary for Sunday, November 30, 2008

eBay Silver Maple Price Summary for Sunday, November 30, 2008

This screenshot is courtesy of the chaps and who I believe have performed a huge service to precious metal investors the world over with a fantastic new price discovery website that monitors eBay transactions for gold and silver coins and bars. The results in terms of the per ounce premium price disconnect (especially for Canadians) are astounding. As of this weekend (Sunday, Nov 30/2008) the per ounce price differentials are as follows:

  • GOLD
  • COMEX Spot: $817.83 US / $1013.14 CDN
  • AVG. EBAY 1Oz Maple Leaf Price For Friday: $1263.81 CDN
  • That’s a 25% Premium over Spot, or $250 CDN / Ounce !!

And the price differential of CRIMEX spot vs. eBay silver, especially Maples, is more than double…

  • COMEX Spot: $10.31 US / $12.78 CDN
  • AVG EBAY 1Oz Maple Leaf Price For Friday: $29.74 CDN
  • That’s a 117% Premium Over Spot, or $16.96 CDN / Ounce !!!

The website does point out the difficulty is separating out shipping prices from eBay bids, so some shipping cost is probably worked into the eBay price. Also, prices for gold and silver bars are closer to the spot price, but still much, much higher.

I encourage you to check out this fantastic new service at:

Now if only some clever individual would start a banner charting service for this so we can rid ourselves of the ridiculous Kitco CRIMEX spot price spam graph …

CNBC: Gold spike to “at least double the price [i.e. $1700/oz] in very, very short period”

Within the gold complex, there is a disparity between the paper market and the physical market, notes Jurg Kiener, CEO of Swiss Asia Capital. He tells CNBC’s Maura Fogarty & Rebecca Meehan that if the paper market collapses, gold prices may double very quickly.

Partial Transcript:

MEEHAN: I’m kind of surprised at where gold is trading, however because even though we see gold as a safe haven status given all the volatility in the markets lately gold hasn’t really reacted as positively. Why not?

KIENER: I think the paper market has really traded as positively as one might expect. When I say the paper market of gold I talk about COMEX and LME. If you look at the physical market, the physical market has been on fire. It’s getting very hard to buy one-ounce coins or smaller bars. Most jewellery shops have been running out. You can try some of the major banks. So we have a supply problem in supplying the feed. So what you have right now is a two-tier market. A paper market on Wall Street where the bankers continue to gamble like everything else, and the real market where gold is red hot and people can’t get physical.


MEEHAN: It’s Rebecca in Europe here. So what does that mean? That trend in the physical market. What does that mean for the gold market in general. If the economic conditions continue to deteriorate or stay as they are what does that mean for the gold market in general?

KIENER: First of all the stability in the financial markets where governments are destabilizing the savers, basically the person in power of the money, and if you get interest rate reductions almost close to zero then owning gold can probably be the best thing you can have. That’s going to put pressure on the paper markets, the LME and COMEX, and what I would like to see is actually some of the paper contracts defaulting, like you had the CDOs and the CDSs and whatever else out there defaulting I think we are going to get very close to see an environment where you are going to see the paper contracts on precious metal defaulting, and with that you are going to get a massive price increase in the overall prices of precious metal.

FOGARTY: Okay, were at 863 right now for COMEX gold. We checked on spot earlier around the 860 level as well. If you expect to see a spike when we see the paper market break down, in other words, where would that spike lead us to?

KIENER: At least to double the price.

FOGARTY: In… within a short amount of time?

KIENER: Very, very short period. It will spike up quite fast. If you think we had an oil rally going from $65/70 to $140 in nine months. I think you can double in gold in basically a much shorter period because the market is much smaller.

[And where gold goes silver follows.]

With the BRIC (Brazil, Russia, India, China) economies in much stronger shape domestically compared to the sickly U.S. and their respective markets already pricing in much of the coming collapse yet to really hit the U.S. stocks I wonder when these countries will band together to form a new currency of their own? They may as well, since many global financial instruments already treat them as an economic unit (case in point).

And if these countries were to form a new global currency that’s 100% backed by gold (like the U.S. dollar was from 1792 to 1971) then I suspect we would witness a global stampede out of Euros and U.S. Federal Reserve Notes into this new golden currency backed by the strongest economies across the globe. Why not call the new currency a bric? In English, the name alludes to something concrete, sound, stable, and badly needed in these uncertain times. The gold-backing shouldn’t be B.S., though. Any Tom, Dick or Harry needs to know he can go to the bank with a Bric note and know he can walk out with gold.

From Brazil: Although its stock market is beaten up, its domestic economy is still very strong.
Brazil expects the odd sniffle, but nothing serious

  • Brazil has not decoupled itself from the rest of the world: its stock market has fallen fairly much in line with other markets but, unlike in the past, the turmoil elsewhere has not been amplified.
  • Brazil has been able to maintain foreign reserves in excess of $200bn to help it weather the storm.

From Russia: Now a major player in the world energy scene, Russia’s central bank has recently been stockpiling gold.
Time for a gold rouble?

  • The decision by the US government to inject $700 billion into the financial system means that the already gigantic annual budget deficit of the American state (previously some $450 billion a year) will now rise by a factor of three. The total state debt of the USA will rise to well over $11 trillion. It is obvious that such a colossal debt can never be repaid.
  • Russian leaders might also consider making their own currency, the rouble, convertible into gold.

From India: The World Gold Council says that Indian citizens possess the most personally-owned gold in the world. And that love for gold is now stronger than ever.
Indian customers lured by gold’s lower price

  • UBS, one of the largest gold exporters to India, says it has seen a spike in sales. John Reade, UBS metals strategist, says that the near-absence of jewellery demand in India between August 2007 and July left the local market largely de-stocked, “hence the tremendous pickup in demand over the past five weeks.”

From China: Also big gold lovers, the Chinese government is now openly questioning the use of U.S. Dollars as the default world currency.
China paper urges new currency order after “financial tsunami”

  • Threatened by a “financial tsunami,” the world must consider building a financial order no longer dependent on the United States, a leading Chinese state newspaper said on Wednesday.
  • “The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States.”

South China Morning Post: China stops its banks from lending to U.S. banks

  • Mainland regulators have told domestic banks to stop lending to United States financial institutions in the interbank market in a bid to prevent possible losses during the financial crisis, industry sources said yesterday.
  • The ban from the China Banking Regulatory Commission (CBRC) applied to interbank lending of all currencies to US banks but not to banks from other countries, a source said.
  • Mainland banks had US$9.8 billion in exposure to US subprime loans at the end of last year and US$25 billion to Fannie Mae and Freddie Mac by June 30.

Congressman Ron Paul: Time is running out

Whenever a Great Bipartisan Consensus is announced, and a compliant media assures everyone that the wondrous actions of our wise leaders are being taken for our own good, you can know with absolute certainty that disaster is about to strike.

Then there’s this: “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.“ Translation: the Secretary can buy up whatever junk debt he wants to, burden the American people with it, and be subject to no one in the process.

There goes your country.

Since we will all spend most of our lives trying to earn money it behooves us to actually know what money is. IMHO, absorbing the content of this video should be required for every man, woman and child on the globe. The time spent viewing this 45-minute video is well worth it.