Gold n Silver Price Hikes!!

8/3/2019 Gold n Silver Price Hikes!!

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GOLD N SILVER PRICE HIKES!!

SUBMITTED BY:

APURVA GUPTA


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GOLD FACTFILE


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GOLD FACTFILE

Gold is an element that can only be founded andcannot be manufactured.

Till date, total of 165,000 tonnes have been

mined. Approx 60% of gold mined becomes jewellery.

100 million people worldwide depend on goldmining for their livelihood.

Lowest Gold price was in 2001 around $250.

Highest Gold price is $1500 approx in present.


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Reasons for increase in gold price An under supply of newly - mined gold.

The real possibility of Asian countries buying

whatever gold the European Central Banksdish up.

Gold is a "de facto currency" and therefore

not subject to demand deficiencies caused byworld wide economic slowdowns.

It's a natural hedge against the US dollar.


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Reasons for increase in gold price!! Interest rate and gold prices are co-related.

Coming out of a depression or long deep recession people will startsaving and increase the rate at which they save. Then there will comea point when they will start to decrease their savings rate and increasetheir consumption rate usually because the purchasing power of theirsavings is going down so that there is less incentive to save. They mayas well start buying stuff that has real value now rather than wait tilllater when it will be more expensive.

Increasing interest rates correlate with a gold price increase.


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Increase caused due to Libya!!

In addition to oil prices, other commodity thatjumped due to crisis of Libya is gold. Thisprecious metal prices jumped to 1% became

U.S. $ 1,400 per ounce. Investors arecompeting to divert their investment to a safeplace from inflation like gold.

On the Spot market, gold prices jumped toU.S. $ 1,503.8 per ounce as per 22 April 2011market.


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Why go for gold???

1. Gold Returning To Historic Role As Money

The role of gold in society was summed up by

J.P. Morgan in 1912 when the renowned

financier stated that Gold is money and

nothing else


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Why go for gold???

2. Collapse of U.S. Dollar Inevitable

The U.S. dollar is the worlds reserve currency and thus anchors theworlds monetary system.

Unfortunately, by virtually any measurement we look at, the United States

is beyond the point of no return with respect to its financial position.

Imbedded federal government debt of nearly $13 trillion, unfunded futureliabilities in Medicare, social security, etc. well in excess of $50 trillion anda current budget deficit of over 10% of GDP virtually ensures ongoingmassive monetary debasement.

When the near bankruptcy of the majority of the fifty states in the union isfactored in, the situation looks even more dire.


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Why go for gold???

3. No Other World Currencies Offer Refuge

The current travails of the European Union are well advertised. Therecent pledge of nearly $1 trillion in potential bailout money byEuro zone members and the IMF in the wake of Greeces problems,coupled with the fear of contagion throughout southern Europe,

effectively disqualifies the Euro from serious consideration. Japan had tsunami that effected it and even it has rapidly aging

population and embedded government debt that already exceeds200% of GDP.

Even China, that paragon of all things financial and economic, issuspect. As the result of its bank lending spree in 2009, the countryis dealing with considerable overcapacity, an emerging inflationissue and a potential bad debt crisis in its banking system.


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Why go for gold???

4. Massive Deficits and Quantitative Easing MayUltimately Result In HyperinflationAs the result of the global financial crisis which

enveloped the world between late 2007 and early2009, the worlds governments were forced tostep in and bail out the financial sector whilepropping up overall demand in the face of the

collapse in the private sector. Thus, thefrightening term hyperinflation is now beingheard with increasing frequency.


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Why go for gold???


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Why go for gold???

5. True Impact Of Malign Side Of Derivatives Has Yet To Express ItselfRemarkably, the notional value of derivatives has continued to grow, both throughout the global financial crisisand during the ensuing recovery period. The fact that derivatives played a major role in the financial meltdownseems to have been conveniently forgotten. Attempts to regulate OTC derivatives, which Congressionalcommittees have been warned are ticking time bombs and financial weapons of mass destruction, surprisinglycontinue to meet resistance. The fact that many derivatives are essentially worthless but are being carried on thebooks as marked to model is creating an extremely distorted picture of the health of the financial sector.

6. Investment Demand For Gold Is Rapidly Accelerating

Despite the fact that gold has been rising steadily for ten years and sophisticated investors are climbing aboard toprotect themselves from the ravages of monetary debasement, conventional institutions and the average citizenremain largely unaware of golds utility. When the next leg of the global financial crisis arrives and stocks andbonds come under severe pressure, investment demand for gold could potentially rise exponentially. To facilitatethis demand, new gold investment vehicles are being created including the very well received Sprott Physical GoldTrust.

7. Growing Recognition That Many Paper Gold Products Are Not Backed By GoldAt the March CFTC hearing with respect to position limits on gold and silver on the Comex, Jeffrey Christian ofCPM Metals, advertised on his firms website as an expert on precious metals, openly acknowledged that

transactions on the London Bullion Market Association (L.B.M.A.) are minimally backed by available physical gold.Given that the L.B.M.A. has long been regarded as the exchange where physical gold is transacted, that qualifies asa remarkable admission. Investors should also have strong reservations about gold ETFs, gold pooled accountsand gold certificates where the gold is unallocated and thus not specifically accounted for.


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Why go for gold???

8. Mine Supply Is Not Anticipated To Rise For Several Years, If At AllDespite gold prices surging from a low of $252 per ounce in 1999 to over $1,200 recently, mineproduction has been eroding for nearly a decade. This suggests that mine supply is insensitive tohigher gold prices, a fact confirmed in the 70s when mine supply actually fell as gold made itshistoric rise from $35 per ounce to $850. Aaron Regent, the head of the worlds largest goldcompany, Barrick Gold, was quoted at a conference in late 2009 lamenting the state of the goldmining business. He went so far as to suggest that global gold production was in terminal declinedespite record prices and the Herculean efforts by mining companies to discover new ore bodies in

remote areas. He actually alluded to peak gold by implying that production has already reachedlevels that cant be exceeded, an expression that is now commonplace in the oil industry.

9. Central Banks Running Short of The Gold Necessary To Keep Market In EquilibriumThe western central banks, who have supplied massive quantities of gold to the market over thepast fifteen years, both to meet burgeoning demand and to suppress the price, are runningdangerously short. Their activities were reminiscent of the late 60s when central banks expendedover 100 million ounces in an ultimately failed attempt to hold gold at $35 per ounce. We believethat this time they have disposed of far more gold and did so clandestinely, employing swaps,leases and opaque accounting. This eras central bankers have obviously learned nothing from thepast but are clearly considerably more desperate due to the dramatically worse situation on thefinancial and economic fronts. It is telling that the annual selling quotas under the European CentralBank Agreement are 400 tonnes per annum and the banks, after meeting their past quotas foryears, are selling nothing.


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Why go for gold???

10. Increasing Likelihood Of Accelerating Purchases Of Gold By Asian Central Banks The enormous concentration of U.S. dollars in the reserves of a number of Asian central banks inconjunction with low gold exposure virtually ensures that they will be more aggressive purchasersof gold in the future. Russia and China have already revealed their intentions and India may havestolen a march on everyone when it announced late last year that it had purchased 200 tonnes ofthe well advertised IMF sale. What appears to be a huge swing from collective heavy selling by thecentral bank community to net accumulation is going to have an extremely salutary impact on thegold price.

11. Increasing Skepticism About U.S. Gold ReservesThe U.S. has long been the worlds largest gold holder with a current reported position of 8,133tonnes (over $300 billion worth). However, there have been recurrent rumors that the U.S. hasmobilized an unknown portion of their gold reserves via swaps to facilitate leasing, a keycomponent in the gold price suppression scheme. The absence of any outside audit of the reservessince the 1950s and the Feds current intransigence towards being subjected to an audit onlyheighten suspicions that the U.S. does not have nearly as much gold as they claim.

12. Large Short PositionsDespite dramatic de-hedging by the gold producers, whose original excessive hedging wasostensibly the reason for the proliferation of gold derivatives, the notional value of OTC goldderivatives still remains elevated. This suggests either a major legitimate bet against the seculartrend of the gold price or ongoing nefarious activity (i.e. price suppression by the usual suspects).The existence of large concentrated short positions on the Comex held by a few bullion banksmakes it reasonable to assume that it is the latter. If the longs were to ever call for delivery, theshorts position would be extremely problematic due to the increasing physical shortage of gold.


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Why go for gold???

13. Increasing Recognition That Gold Price Has Been Seriously SuppressedMore and more members of the financial establishment have been forced to concede that gold hasbeen subjected to constant price management by western governments, their central banks andtheir bullion bank surrogates. The increasingly egregious activities in this area are forcing anythoughtful person to acknowledge what is occurring. The work of the Gold Anti-Trust ActionCommittee (GATA), which has been remarkably accurate over the past ten years, is finally receivingbelated acknowledgment following years of being studiously ignored. The extent of the suppressionhas been so great that it virtually guarantees a far greater upward explosion in the gold price than

would otherwise have occurred.14. Suppression Causing Extreme Undervaluation Of Gold

Measured by any number of metrics (gold price in relation to the staggering amount of money andcredit that has been created over the past several decades, golds extreme undervaluation relativeto platinum, the gold producers pathetic returns on capital at the current price, etc.), gold is farbehind where we believe it should be. If gold had merely kept up with the reported rate of U.S.inflation since its peak price in 1980, it would presently be trading in excess of $2,300 per ounce.

15. The Relatively Small Size Of The Gold MarketIn the past, golds small market footprint has actually been a negative because it more easilyfacilitated the price suppression activity. This is about to change, however, as gold becomes theasset of choice for more and more investors for all the aforementioned reasons. All the gold minedsince the beginning of time is worth less than $6 trillion currently and the total capitalization of allthe worlds gold stocks barely exceeds that ofWal-Mart. This pales in comparison to the amount ofpaper money that could seek refuge in the worlds eternal money.


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Why go for gold???

16. Gold Is In An Established Powerful Bull MarketGold is in the tenth year of a powerful bull market since it doublebottomed at just over $250 per ounce in early 2001. It is most definitely astealth bull market as the sentiment remains remarkably subdued, a factillustrated by an extensive worldwide poll conducted by CommoditiesOnline in the spring of 2010 that revealed that 93% of the respondents

expected the gold price to fall. Gold has been climbing a classic wall ofworry, a climb made steeper by the stout resistance of the anti-goldcartel and the constant negative propaganda emanating from itsmainstream apologists.

17. Gold Has EnduredGold is indestructible, possesses a high value-to-weight ratio (which makes

it easy to store and transport), is not anyones liability, can be easilyhidden (which has been a considerable attribute in the past) and, mostimportantly, has provided protection against the destruction of wealth forcenturies.


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Latest news as on 22 april!!

The price of gold increased for a third straight week, as a weak dollar andconcerns about global debt levels induced investors to trade in theprecious metal in order to hedge their investments against possible losses.The market closed for the Easter holidays on Thursday with gold future forJune delivery priced at USD $ 1503.80 an ounce, increasing by 0.33percent.

Silver touched its highest price level in 31 years at USD $ 46.07 an ounce. The depreciation of the dollar, coupled with rising concerns about

sovereign-debt of the USA, were the major reasons which led to the pricehike. The dollar depreciated against a basket of six other currencies to itslowest level since August 2008, due to fears that the Fed would notincrease interest rates. Also, this week, Standard & Poor revised its debt

outlook for the USA from stable to negative. Although trading in goldremained thin throughout the week due to the Easter holidays in Europeand the US, gold prices still remained high and are expected to remain soin the upcoming weeks as well.


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SILVER FACTFILE!!!


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SILVER FACTFILE!!

Silver is also an element that can only be

founded and cannot be manufactured.

Silver is used in jewellery making, industries

for several uses.

Lowest Silver price was in 2006 around $5 per

ounce .

Highest Silver price is $47 approx in present

April 2011.


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Reasons for silver price increase!!1. The U.S. dollar has lost 20% of its purchasing power just since

2000 and 30% since 1990. 70% of that decline has been since1978, when the mandate for the Fed was changed to a dualmandate of both price stability and full employment. Since the

Federal Reserve was created in 1913, the USD has lost 95% of itspurchasing power. When you compare the appreciation inprecious metals to the dollar in those same time frames, thosefacts alone should convince you that you need significantexposure to the sector in order to protect your wealth.

2. Central banks for decades have been selling off their reserves ofsilver to meet excess demand, which has kept prices artificiallylow. That has made mining unprofitable for so long there is ashortage of mined capacity developing over the next few years.


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Reasons for silver price increase!!3. The majority of silver mined is used for consumption in industrial uses;therefore, unlike gold, most silver is consumed very quickly instead of hoarded.Silver is therefore a precious metal with a store of value quality like gold, but it isalso primarily an industrial metal, which gives it an inherent useful value ingrowth industries like cell phones, computers and chemicals.

4. Since 1980, the above-ground available gold stores have increased 600%, whileabove-ground available silver stores have been reduced 90% during the sametime frame.

5. The historical gold to silver ratio is approximately 15 to 1. The current gold tosilver ratio is 38. In other words, it takes 38 ounces of silver to equal the value ofone ounce of gold. We think the gold/silver ratio will return to approximately 20to 1, which would, just by itself, make silver worth approximately $72.50 attoday's gold price.

6. Since World War II, the U.S. government has sold over five billion ounces of silverand currently has no reported stores. It probably has one for the military, butwon't release that information -- and it wouldn't be that significant, anyway.


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Reasons for silver price increase!!7. The Silver ETFs (mainly SLV) have democratized precious metals investing to the average investor,who know doesn't have to worry about delivery and storage. Most importantly, this has made iteasy for retirement and tax deferred accounts to purchase and hold silver much more easily. Thisincrease in demand from new investors is removing almost 30% of current production. Today thephysically backed silver ETFs hold over 50% of the deliverable bars of silver off the market. That isa positive as long as investors continue adding to their holdings. Surprisingly, silver investors --even during the panic of 2008 and even amidst a 50% decline in the price of silver -- actually

added to their positions.8. The ETF has opened investing significantly in silver to institutional investors to acquire a

significant position in silver over time without going through the futures markets. These are theplayers who control dollar amounts in the hundreds of billions.

9. While there are no easily verifiable statistics, new physical mined supply has not met actualdemand for years. This excess demand has been met with central banks selling around the globeand industry recycling.

10. A significant silver mine needs tens of millions of dollars (in some cases hundreds of millions) in

capital to just get started, and could take easily about three to five years before any significantproduction to begin.
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Reasons for silver price increase!!11. Most mined silver is not from silver mines but is a by-product of mining for other minerals such as gold, copper,

lead and zinc. Therefore it is not the primary focus of new investment in the mining sector. In fact, only 30% ofnewly mined silver comes from mines devoted primarily to silver. There are not that many places that cansustain primary silver mining.

12. Since silver is such a unique element with so many unique properties, the chance of a silver substitute by otherdiscoveries is very, very low. It hasn't happened in thousands of years.

13. In a precious metals bull market, silver consistently over the long-term outperforms gold. Since October 2001,silver has increased in price from approximately $4 to a recent high of $31, which is an approximate 775% gain.During that same approximate time period, gold went from $265 to a recent high of $1430 for an approximategain of 540%. So silver outperformed gold by 235% in the same time period.

14. In 1980, silver briefly traded at $50; in today's equivalent inflation-adjusted prices, that would be at least $130.

15. This time, participation by investors will be global. In 1980, only investors from North America, Europe and theMiddle East were involved in the last big precious metals bull market. Now there are hundreds of millions ofnew potential investors in the same countries, but most importantly also in China, India and the former Soviet

Union. This bull market will be global in nature, which will make it that much more explosive to the upside.

16. Silver has literally hundreds of uses industrially in today's modern economy -- from computers, tabletcomputers, smart phones, cell phones, DVDs, mirrored glass, solar power, health care, wound care, and waterfiltration, to being used as a catalyst in many chemical reactions to produce many products, including plastics.


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Reasons for silver price increase!!17. Gold is a precious metal only for investment and jewelry, with little industrial use. While gold is

more scarce than silver -- and easier for central banks to invest in because of the large dollaramounts involved, due to its relative higher price -- silver is the average person's gold becausethe denomination is affordable and viewed as relatively undervalued.

18. Silver is the average investor's preferred metal when gold prices arethan $1000 per ounce. Whenthe price of gold becomes higher, s ilver becomes a greater substitute investment for gold due toits lower cost and similar qualities.

19. Silver is more volatile in price than gold. That is a positive in a bull market where prices areincreasing. Obviously, it can be a negative in the opposite bear market. Volatility can be anadvantage to traders, but fair warning: Silver, like natural gas, is very, very difficult to trade.

20. China, which is a significant producer of silver and used to export a significant percentage of its,has now significantly limited exports and ended tax rebates given to exporters of silver.

21. China has now become a large net importer of silver even while beingone of the largestproducers.

22. It is believed that China is purchasing and storing large quantities of both gold and silver. China'sobjective is to make its currency the new reserve for the world, so it can diversify out of theconsistently declining U.S. dollar.

23. China's Premier just called the USD as a world reserve currency a "a product of the past," so itsgoal has been made clear to anyone listening ... and become very obvious of late.

24. To make the Chinese currency different from all other fiat currencies in the world -- and to givemajor trading partners more confidence in it -- it will be backed by a reserve of gold and silver.


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Reasons for silver price increase!!25. As gold prices increase, investors are forced to migrate to the more affordable silver, especially in India and

China. India just relaxed import tariffs on gold and silver. China is encouraging its citizens to own gold and silver.China just recently allowed citizens to invest in gold ETFs, and a silver one is coming soon. China has used silveras a currency for thousands of years except since 1933, so it is used to it as a medium of exchange and store ofvalue.

26. We do not believe the conspiracy theories you read about JP Morgan (JPM) and HSBC (HBC) having massiveshort positions in the silver futures market and are manipulating the price of silver lower for their own benefit.However, we do think those massive positions are actually done on behalf of China and are used tosimultaneously go long and short silver futures. This is a very complicated way to purchase large quantities of

silver and taking delivery of that silver upon expiration, without driving up the price as much as if it openlypurchased the silver in the open market. The losses it takes on the short side add to its cost over just purchasingit outright at the spot price. However, to the Chinese, that extra expense is less of a cost than driving up theprice by buying it openly, with the added benefit of confusing silver traders and investors.

27. The total monetary supply in circulation and in the form of debt is over 10 times as large as in 1980.

28. The United States Federal Reserve has for 25 years now been more irresponsible than in the previous 72 yearscombined, since the Fed was created with the creation of new debt and currency in circulation.

29. The Federal Reserve will have taken the monetary supply from $800 billion in 2008 to $3.8 trillion by the end ofQuantitative Easing Two by this summer. That is a 475% increase in the money supply, which must lead tosignificant inflation and the corresponding destruction of existing savings. The only reason it hasn't yet is the

lack of confidence, the hoarding of cash and the low velocity of money currently. It is a matter of "when," not"if" inflation will occur.

30. When economies of major societies use fiat money backed by nothing, precious metals eventually revaluethemselves to account for all the extra currency printed and unsecured credit card debt created over time. Thisoccurs when savers realize the value of savings is being destroyed and they race to preserve any value they haveleft. This can happen slowly over time, or very quickly -- but it always eventually happens.
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Reasons for silver price increase!!31. Precious metals will be the fifth and final financial bubble in the next three to five years. First wasthe Internet and technology stock market bubble, then real estate, then an overall economy andworldwide credit bubble, then U.S. Treasuries. Finally, a lack of confidence in the currency andsolvency will lead to the most spectacular transfer of wealth yet, with a bubble in precious metalsprices. You must be on the right side of this move and have the patience for it to unfold or youwill be slaughtered.

32. Former Federal Reserve Chairman Alan Greenspan was not the "Maestro" and the best centralbanker ever. He was the most irresponsible since John Law in France. In fact, we believe hemodeled his monetary policy after Law, who convinced France to decouple its currency from anybacking by precious metals, constantly expand the money supply to create an illusion ofprosperity, and create asset bubbles in stock and real estate markets.

33. Current Federal Reserve Chairman Ben Bernanke is a devoted Keynesian economist who isincapable of getting our economy to operate efficiently again, and was Greenspan's second incommand during the 1990s. He, like Greenspan and most economists, is wrong about 90% of thetime about both current conditions and future predictions for the economy.

34. Deregulation in financial markets and the eternal ethic of greed by Wall Street and major money

center banks are destroying the fabric and the functioning of the United States economy, itsworkers, savers and the country itself.

35. The U.S. has a hopelessly corrupt political system that -- even after the worst financial crisis sincethe Depression -- can't re-regulate the financial sector or heal the economy. Not to mention thatour deficit spending is now reaching dangerous levels never imagined previously, and there is nopolitical will or market discipline to stop it presently or in the near future.


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Gold n Silver Price Hikes!!

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