If you're reading this blog - the picture to the left of fireworks should be what you're going through right now...Gold is back at $1,000/ounce. The mental barrier has been broken.
The New Promise, President Obama (as great as he is, one man can only do so much against decades of capitalism inflationary forces!), and various bailout attempts - has so far sputtered.
What would you rather believe in, printed paper or physical currency?
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Feb. 11 (Bloomberg) -- Goldcorp Inc. founder Rob McEwen, who has more than $100 million in gold investments, said he expects the metal to top $5,000 an ounce as governments increase the money supply to combat recession.
Bullion will more than double to $2,000 an ounce by the end of next year before rising to McEwen’s target by the end of the cycle, which could take an additional four years, the investor said.
“Politicians around the world are listening to cries from their electorates and they’re giving money to all callers,” McEwen said yesterday in a telephone interview from Toronto.
McEwen, who founded what is now the world’s second-largest gold producer by market value, owns stakes in three Canadian precious-metal explorers worth more than $100 million. He said he also has a “big, big” holding in bullion. Gold gained for the eighth straight year in 2008 amid investor concern the economy would collapse and government efforts to prevent that would increase inflation.
Gold futures for April delivery rose $29.10, or 3.2 percent, to $943.30 an ounce at 11:51 a.m. on the Comex division of the New York Mercantile Exchange, the highest for a most-active contract since July 23. The metal climbed to a record $1,033.90 on March 17.
McEwen said he started buying bullion in August 2007, at the beginning of the subprime mortgage crisis. Gold has jumped 40 percent since Aug. 1 of that year, touching a high of $948.20 today, while the Standard & Poor’s 500 Index has dropped 43 percent.
“I realized we had reached an inflection point regarding money,” McEwen said. “It was all about protecting money, and gold served that purpose.”
McEwen is the largest shareholder in Lakewood, Colorado- based U.S. Gold Corp., Vancouver-based Rubicon Minerals Corp. and Spokane, Washington-based Minera Andes Inc. Vancouver-based Goldcorp is the world largest gold producer by market value after Toronto-based Barrick Gold Corp.
TNR Gold Corp is associated with Minera Andes through Xstrata's optioned Los Azules property, which came through with a positive prelimenary assessment recently of:
-23.6 years mine life
-production cost of $0.85 copper
-43-101 resource of 11.2 billion lbs of copper
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Remember CitiGroup? Of course you do... but guess what, CitiBank and its various associated companies are in danger of being Nationalized.
NATIONALIZED? Yes, as in shareholder equity wiped - government operated.
Think Washington Mutual (pictured left) and how it was "too big to be let go". I am really hoping this doesn't happen, but things like this tend to really change people's perception of wealth.
Bank of America is being rumored to be in the same position. I wouldn't doubt it - after acquiring Countrywide and Merrill Lynch - BAC has fallen back drastically from $32/share - when Warren Buffet recommended a huge buy.
NEW YORK (Reuters) – Shares of Citigroup and Bank of America fell in premarket trade on Friday on the fear that the banks would be nationalized, according to traders.
"There's that fear that we nationalize banks and this market gets killed," said Matt McCall, president of Penn Financial Group in Ridgewood, New Jersey
Citigroup slid 5.2 percent while Bank of America lost 5.9 percent.
The Frankfurt-listed shares of the banks also fell, with traders and analysts citing fears that big U.S. banks could be nationalized.
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Really, its time to examine your perception of reality and what constitutes real savings at this point! Thanks for reading.
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