Obama's State of the Union Review

Welcome to my review of The President's speech or better titled,
5 good reasons why the future of gold still shines brightly.


Before the presidents speech, gold was struggling, profit-taking and investors who are more willing to take risks in the stock market & bonds market moved away from gold as a safe-haven. Obama's speech was vital to the short-term fate of gold. Will gold continue to fall? Will gold rise back?

Obama painted a nice picture of the America of old, of how the world of old was one way or another was outsmarted & out-witted by the USA. He put on a perfect show, but try to look beyond the smoke-screen of his speech, and you will realise the US economy is no where near any improvement.

#1: USA will reduce its deficit by 400 Billion dollars! By a five-year freeze in domestic spending projected to save $400 billion over the next decade.

'Are you kidding me? The US deficit/debt is continually growing at a rate of 300-400 Billion dollars a year. So it is actually just slowing down the path of the US economy to its doom, nothing more. Even if the debt is reduced by 400 billion, a freeze in domestic spending will not benefit this American consumerist machines.


#2: USA will invest more money in Education

'That sounds nice, giving the kids today a nice solid education for a good paycheck tomorrow. Firstly do you know the staggering amount of student loans and debts that exist in USA? The amount is even more then the credit card debts owed in America. This move is going to drive more and more students deeper into debt and despair. What good is the future of America if its young is full of debt, facing a 20% jobless rate and a poor credit score?


#3. Wall-Street & Lobbyist still Controls the Cabinet

No reshuffle or even a hint of any change in the cabinet, cronies like Timothy Franz Geithner (ex President of the Federal reserve) is still the Secretary of Treasury.

#4. The Federal Reserve Interest rates have not moved.

'They are still at near Zero percent. If you put in 1000 dollars in a bank, after 10 years, your interest will be near zero, and your bank balance after 10 years will either be 1000 dollars or zero dollars (if the bank collaspes).'

#5. Continuing American War Escapades in the Middle-east, Continuing Pressures on Iran and North-Korea.

'For freedom! Oh really? Apart from the political reasons, continuing of these military adventures pushes whats left of the American economy to the brink of Bankruptcy. Sure, soldiering jobs are created, but the real show of a country's economic power is the ability to produce and manufacture goods and services, not by its massive army and war machines created. When USA's war industry prospers, the rest flounders.'

Gold measures not only how bad the state of the world economy is, it is also a measure of how screwed up the world is, political unrest and threats of war is prone to make gold soar. President Obama has put up another annual smoke-screen for the American people. Every time gold rises by a cent, is another second the world is creeping into chaos.

When gold is stable, chaos is controlled.


Marc Faber on Obama's Zombie Economy

Silver Prices (Volatile & Opportunistic)

Yes this time i am talking about silver for once. Not half as glittery as gold but has a real probability to outperform gold. Lets picture gold as something stable, its fundamentals are traced back at least 3000 years, backed up by history, Kings, governments, banks. It has been and still is the international money that transcends time and governments.



Silver on the other hand is a most interesting metal, yes it is precious, traced back thousands of years too, a monetary metal of course, but this time, it has industrial uses. A LOT of industrial uses. I'll explain in another article in detail. For now, lets just focus on the prices of Silver and what affects it.

View these Charts. Ill explain it simply, doesn't take a genius to interpret it.



Conclusion:
Silver over the last year has risen more then Double of its initial value. Gaining at least 100%

Versus Gold that grew only 33% (Which is still phenomenal considering this zombie economy)


Why? WHY? How is it even possible? How can anything beat the GOLD?!

Here are the factors that make silver rise & fall


Why Silver will Rise:

1.Extremely important industrial metal:
Your mirrors, your ipods, your CDs, your handphones, your telephones, your satellite dishes, your cutlery, your cars, your watches, your wires, your medical equipment etc. All these require silver. In many instances, silver cannot be replaced by a cheaper metal because
Silver is: - The highest electrical & thermal conductivity metal
- The only metal in the world that has anti-bacterial properties etc.

2. Silver Production cost is getting Above its selling cost:
What do i mean? Simply put, digging the silver from the ground and pouring chemicals on it to refine is is more expensive then selling it on the open market. The production cost is almost the same as its selling cost. Silver is undervalued.

3. Silver recycling is economically impossible:
This is not your plastic bottles or newspaper save the earth foundation people. Most items that contain silver does so in minute amounts, from a few microns of silver (CDs) to a few grams (handphones). Asking people to recycle silver is like telling them, spend 10 dollars tearing the item apart and refining 1 dollar worth of silver.

4. There is less Silver on earth then Gold:
I am not joking. Silver is now rapidly being consumed, eaten up by industries. The total amount of gold in the world can make up a cube of 18 ft x 18 ft x 18ft. Silver is probably less then 75% of that total amount. I don't know about you, but lesser of something more functional then gold spells and smells like its undervalued.

5. China just launched its public Silver Bullion Smiths:
Why is this a factor, China is the world's next superpower. the chinese government is aggressively asking its population to accumulate gold & SILVER. Why? Its to protect the citizens wealth, and more insidiously, is to let the country profit when the world reverts to a monetary system backed up by gold & silver.


Why Silver will fall

1. Comex Silver/Paper Silver:
Once again it calls into play manipulation and covering of shorts in the market. What do i mean? Lets say i have only 100 grams of silver, but i am selling silver certificates online that is equivilant to 10000 grams of silver and i call it 'unallocated silver' or Silver futures. Selling silver that hasn't even been mined yet? FUBAR

2. Dollar is strengthened:
Bailouts, government rumors, investors all dumping their commodities to take extra risks out there in the stock markets will make gold & silver fall.

3. Supply & Demand:
Once again very simple, if demand for silver falls, the prices will fall. Production currently is rather steady, so if industries one day discover a mystery metal cheaper and better then silver, then silver is in trouble.

4. Manipulation of Silver prices:
-Refer to my JP morgan manipulation article ,coming soon.-


To end this, this is like comparing a reliable horse (Gold) to a new age high-potential motorcycle (Silver). Both still wins the economy (Turtle). So if you have lots of money, tens of thousands, throw into gold if you have doubts. If you are daring or your budget is in the hundreds - thousands. Explore silver. You won't regret it.

Why Does Gold Prices Fluctuate?

Well this question is the most common question i have ever heard. Understand that everything in life fluctuates, be it gold prices, fuel prices, interest rates, even the prices of your hot dog next door changes from time to time. The most important attributes needed for an investor is just 3 simple ones.

- Knowledge (understand both sides, eg. those pro-gold, and those anti-commodities)

- Emotional stability (you can be intellectually brilliant, but still lack this important quality)

- Will to act (So what if you know everything to succeed, until you try, you won't succeed)

I'll address the Knowledge part in this article.

I would like to share a quote about stock/commodity prices i find interesting: 'Prices are nothing but numbers that relate to the collective hope, greed, fear, rumors, speculative natures and knowledge of investors.' How well a company's management also does play into factor however, i feel is nothing compared to the collective force of the former factor.' - Mark Shipman


Firstly this would mean just looking at the price of gold or any other stock will give absolutely no indication if it would fall or rise. So what if gold is at $300 or $3000 per ounce. Using this same principle, it is useless to predict where gold will be 1-2 years from now from just its price. A price is a number.

Hence the take home message:'Investing is NOT bargain hunting whereby getting a cheap stock/commodity would mean getting a good deal where it has no direction to go but to rise and let you earn money! This mentality is naive and courting disaster.'

Ok, Why does gold Prices Fluctuate?



When i mean fluctuate, i am talking about charts of gold up to the 60 day limit. It is very obvious to the general direction of gold in the 1-10 years chart. It is heading up.

But why is there quite major fluctuations in the near-term time period? It looks as if the end of the chart is where the beginning is, just one roller coaster ride to no profits, right?

Making things Simple, i attribute these to 5 main reasons.

Comex Gold/Paper Gold:
The prices you see here are reflective on not only all the physical gold that is being traded, it is a reflection of gold's prices together with the futures market, gold derivatives, gold ETFs, and paper gold. Not all gold is bought physically, an extreme amount is being traded electronically, and some of these gold are done in an un-allocated state (you do not physically own it and you have no idea where it is being stored, in short you know close to nothing). Paper gold backed by nothing is dangerous and causes a lot of shorts in the market.

Conclusion:
If more paper gold is relied on trading/less people taking physical gold delivery : Gold prices fall.
If physical gold delivery is desired, and the demand causes the shorts to be exposed:
Gold prices rise.

Short Term Speculators:
Firstly understand, the normal investor such as you and me only comprises of less then 15% of the total market. Big boys such as corporations and billionaires more or less control the market (another reason why you shouldn't fight the market or think you are smarter). An obscene amount of corporations love to play the 'short-term gain game'. To put things simply, they will buy an enormous amount of gold (paper/physical, doesn't matter), gold prices rise, at the peak of their own choosing, they sell close to ALL their gold holdings, the market is flooded by a sudden influx of gold, prices drop. They then buy again 'cheap gold' and rinse and repeat the cycle.

Conclusion: Big corporations (Eg. Central banks, Governments, Billionaires) buying up gold will cause: Gold to Rise.
Big Corporations selling their massive gold holdings : Gold Will drop.

People's Emotions:
This is perhaps the best thing we can see in your daily life, especially herd mentality. If gold prices rise, the greed in people will make them buy gold so as to 'ride the wave', but if gold falls, unless they are equipped with the proper knowledge and emotional stability, they will most probably sell their holdings, causing a domino effect. John sells, Amy sees John selling, she sells, her family sees her selling, they sell, the community sees the family selling, they all sell..etc.

Conclusion: This is linked to the previous factor and almost exactly the same.

Supply & Demand:
This is the simplest to understand, gold is not conjured from thin air, it has to be dug up from the mines and processed extensively using chemicals. It is SUPPLIED from mines and mining companies. Supply for gold is currently decreasing and demand is increasing, hence rising gold prices. Simply put, the mines is not producing enough gold, people want and are buying more gold then is available in the market. Do note that gold is a finite resource like oil, it will run out!

Conclusion:
Supply Up + Demand down: Lower Gold prices.
Supply down + Demand Up: Higher Gold prices.

World Events:
Reading your Wall Street journal is not enough. World events such as the impending threat of the Korean War & the European Debt crisis greatly affects the pricing of gold. Lets take the 2008 bailout of America. Fiat currency backed by nothing flooded the market, corporations that should have died were saved, the panic of a crashing economy was delayed, Gold prices took a dip as the dollars confidence was still relatively strong. A few months later to a year, the fiat currency injection just made matters worse, jobless rates continued, debt increased, people ran to gold for safety. Gold Rose.

Conclusion: Wars/Debt Crisis/Scandals: Gold will most probably rise.
Bailouts/manipulation/dollar confidence boosting: Gold will most probably fall.

The factors for Silver prices is somewhat the same, however it brings into issues such as the JP morgan manipulation. This will be covered soon =)

How our Economy is (Video Version!)

Do yourself a favor, view one every wednesday before you head to clubbing or something. In 1-2 years time, your whiskey coke is going to be 10 bucks a glass, 50 bucks a jug!

I won't waste your time with long videos, so I'm just going to post 2 really short and easy to understand videos, and then finally one slightly longer more official video.

Video #1: World Economic Collapse explained in 3 Minutes (Disaster made easy!)





Video #2: How the financial System Works in 2 Minutes

Video #3: Robert Kiyosaki (Rich Dad Poor Dad ) & Mike Maloney explaining how Gold & Silver Links to this economy.

Gold & Silver Investment Opportunity

Whoops here i am again with pictures, i apologies for not manually typing it out, but still its quality information from my own document.

Important note: It is important to note that investing in these precious metals do have certain calculated risks. Many avenues for acquring these metals are open to the investors, however only a few are totally safe; Comex gold/paper gold vs physical gold. Gold stocks and futures and ETFs (exchange traded funds) do exist. However please do your own research before plunging into anything. You wouldn't buy a car without test-driving it right?

Want to know more? Do contact me at fsqsean@yahoo.com or drop me a fb message, also at this same email.

My Story (GSS, the Gold & Silver Story!)

GOLD

Ok this part is the easiest part. What i have been doing lately. From 2 years ago i was blindly buying gold. Why? Simply because of the fact my brother was doing so, i did not know what i was buying. I was just acquiring gold bullion or gold coins. He is known for his economic sense so i felt its time to jump onto the bandwagon.

Gold then was around 780-800 USdollars an ounce. 1 Troy oz is 31.1 grams.
Gold then was 25-26 dollars a gram.


Some of the Gold holdings i possess. I invest/collect in only pure .999 gold. I won't touch jewelery.

Today Gold is worth around 1371 US dollars an ounce. Or 43-45 US dollars a gram. My investment has grown by around 73-76%. Now tell me a bank that would give that amount of interest, hell if you can find a bank that gives 5-10% of your deposit without it being a fixed deposit or requiring you to dump in hundreds of thousands to the millions, then your a hero!

Oh yes gold has risks, but it is a smart calculated risk that i feel will win in the long term, if you are more daring with the proper education, you can try the stock market, you might be able to make more short-term gains there, well that is if you know what you are doing.

lets talk about Silver

Ah the poor man's gold. Still a great store of intrinsic value. Great fundamentals. I started pouring in some money into silver, not alot because i was a skeptic, i am still a little skeptical of silver in regards to the potential of gold, but i am bullish about silver compared to the economy. But despite my reservations, investing into silver i did!


A portion of my Silver Holdings. I dived into silver about a year back when it around 11-15 dollars an ounce. Today it is around 28-30 dollars an ounce. I made at least a 87 % profit from my initial investment, calculating more accurately, i believe it could reach up to 100%. And that is within one year. Better performance then gold. But i still prefer Gold (The stuff of dreams, greed and legends)

How does this relate to you?

Well simply put, i feel its better that you manage your spare cash carefully, if you are a guru in the stock market, so be it, if you believe in mutual funds that give u a miserly amount of profit (plus the fact you do not know the details about how your money is being managed) then good for you. If you love the smell of cash or just the sight of a fat wallet then omg, i have nothing to say. But if you want to take things into your own hands, and secure your money and possibly even make a handsome sum from an impending crisis that i feel is coming. Time to enter into Commodities. (Commodities is just a term for gold, silver, wheat, oil, soya beans. etc)

If you are thinking, Gold will fall eventually right? Then ill tell you this, the rich are buying gold by the tons, with their money, do you think they will allow gold to fall? Besides the economy today is violating the fundamentals. Its almost an economic war where we are the victims.

http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_586785.html

If you are interested in acquiring more information for free. Please contact me at fsqsean@yahoo.com
or drop me a fb message.
My credentials? Simple, i've made a shitload of money. Nuff said.

The Typical Phases of an Investment Boom

I wish i could retype everything here but it is very painfully tiring. I will do so and make it more dynamic when i have the time.

Gold & Silver: The State of the Economy

Gold & Silver: The ultimate Hedge, Wealth protection Instrument & wealth creation

Throughout our lives we are taught a few basic principles, study hard, get a job, save your money, get married and happily ever after. I'm sorry to burst your bubble but this does not apply to today's society anymore. Your 'money', the dollars you hold are currently under attack. I will not link the word money to your dollars because the dollars you and i possess are just currency. This article i feel is not only important to those ambitious to gain wealth, but also for the average Joe to simply survive an impending economic crisis.

In order to discuss about Gold and Silver investment opportunities, it is important to start from the basics. Lets discuss about the state of the economy. I will explain in simple terms.

The State of the Economy

Whether you believe it or not, the economy is not improving, it is crumbling. I do not care about the various 'official information' fed to all of us to make us believe the economy is improving. The fundamentals of an economy are being violated. This violation is a direct consequence of the measures the world is handling money. My money, your money.

Inflation

This occurs when the money supply circulating is out of control and floods the economy. Currency/dollars is being printed without being backed up by anything. This is fiat currency, the 'money' we use today. The only thing keeping this concept afloat is the government's authority that makes these pieces of paper legal tender.

Effects of inflation: A burger 10 years ago might cost 50 cts to a dollar, today it is around 3 dollars. Property prices a few decades ago were less then a few hundred thousands, today the same property might be worth a million dollars.

Understand this fact: Things are NOT becoming more expensive, your Dollars are becoming weaker in purchasing power.

Lets take a look at the purchasing power of the dollar. The world's Reserve currency, the currency that is supposed to be strong and ideal and where all other nations' currencies are compared and pegged to. the US dollar.

For those who cannot interpret this graph it simply means for the last 75 years, the dollar has been dropping in its purchasing power by around 95%. And it is still dropping! The dollar 75 years ago is now worth less then 5 cents today. I know this is hard to digest, but too bad, this is happening to you and me.

Your paycheck today might not sustain you tomorrow.

Why is this happening?

This is happening not because of some big conspiracy or cover up, this is occurring in front of our very eyes.

Heard of the Gold standard?

Of course you haven't, well you might but understand this, we have gone away from the gold standard from the year 1971. The worlds currencies was pegged to the US dollar which was in turned pegged to Gold. In other words, your dollars were redeemable for gold. However, not any more, President Nixon of USA ended it in 1971. The reason in my understanding and opinion, is to allow a then Bankrupt USA (due to fighting the Korean, Vietnam and World War 2 battles) to artificially grow their economy. See the graph again, before the end of the gold standard, the dollar was at least marginally stable.

The World Banking System

Firstly i am not criticizing any system, i am just laying down the facts. You can decide for yourself. To me banks are the 8th wonder of the modern world. Why? Very Simple: Fractional-reserve Banking.

Ok i will explain it in very simple terms, want to see the full article regarding it, go wikipedia it. Basically if 10 million dollars was deposited into Bank A, the Bank (having a fractional-reserve ratio of 10:1) has the ability to conjure up 9 million on top of the 10 million it already has deposited by a customer. This happens as only 1 million is needed to guarantee the 9 million that was 'created'. If a new customer takes this 9 million dollars loan and deposits the money in his own bank B. This process repeats itself with 8.1 million of new money being 'created'.

Disclaimer: I might be wrong, this system might be truly a wondrous gift to mankind by the banks or it might be just downright wrong. Its up to you to judge. Just ask yourself, can you create money from thin air? If you can, then earning money is nothing more then a magic trick, means your money is worthless.

I do not know if Singapore Banks practice fractional banking at all, if to any degree, but i am convinced that major commercial banks that influence the world practice it to a large degree, especially American Banks.

The American Situation

This part of the article is perhaps one of the most important points i would like to mention. This is not only USA's domestic problem, the world is interconnected, especially so to Singapore. America's problem is our big problem.

In 1913, The Federal Reserve act was first established. This is to allow literally the printing of money to be controlled by an entity separate from the US government. The Federal Reserve is no more federal then Federal Express, it is owned by overseas Banking cartel which comprises of European nations and Saudi money.

The US government has to go through the Federal Reserve for any creation of money by selling its government bonds (essentially a debt), the Federal Reserve will then print money according to the value of this debt and exchanges this money for the government bonds. Hence new money is created from debt, in other words, money is fabricated.

Bailouts? Does it even work?

We have heard this word multiple times, i am frankly sick of this word. Its akin to a little child smashing a neighbor's window and asking his mom for money to repair it.

The bailout of 2008 (700 billion dollars) or any US bailout comes from the Federal Reserve, which is essentially phantom money. Hence the debt cannot be solved permanently with the bailouts or any stimulus package that is backed by nothing. Not only does it add to the US debts (14 trillion, to you non-mathematical folks, that is 14,000,000,000 dollars and counting).

To make things worse, the US interest rates are alarmingly low, production levels in US compared to other superpowers such as China, India and Middle-east is non-existent. The US economy is consuming everything but producing close to nothing. Asia and the rest of the world that still has sound money is getting sick of bailing out the Americans.

The European Problem

Oh yes, this is not just a red-white-blue problem anymore. It has spilled over to Europe. The bottom pictures are taken directly from my own writeup document. (Click on it for a better resolution)

Oh btw the Singapore debt is at around 20 Billion dollars and our public debt to GDP ratio is around 110%. How can it be?

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html

Verified by the CIA themselves.

(Disclaimer: This are just personal opinions and personal research conducted by myself, i am no financial adviser, hell i'm not even an economics major, but i am concerned about money, about how to manage my own finances, and i feel you should too)

[This article is very raw, it is not done using complex terms and jargon because firstly i know very little of that, it obscures the truth sometimes and i want this article to be reader friendly to all professions and all walks of life. Links to my sources will be uploaded when i have time.)