While the MSM media claims that the recession is over, and while we are told that the worst is behind us, allow me to remind you that bank failures are on track for a record year, closing at alarming rates. Just 8 closed last weekend. Basically, according to the FED's list, this is going to be the worst year for these failures. Looking back;
2005; 0 banks failed
2006; 0 banks failed
2007; 3 banks failed
2008; 25 banks failed
2009; 140 banks failed
2010; 50 banks failed (note that we are only in April, thus only a quarter of the way through)
Alarmed? Good.
PHYS
Written by Prophet
Sunday, 18 April 2010
From all the news coming out about the lack of physical to back up the paper gold being sold (Empty Vaults, and a more comprehensive coverage from DGC Magazine), there are some rough estimates by the experts, that for every ounce of real physical gold, there is anywhere between 10 to 100 ounces of paper gold being traded via various vehicles (GLD and SLV are horrible, as discussed in that link), and so it's good to have physical for insurance. The question then arises, as to how one is to own physical in their portfolio. Every healthy portfolio should have a good amount of exposure to precious metals, specially in times of uncertainty. For the best stock out there, that allows one to own and claim physical for, I had to do some research. For obvious reasons, GLD, SLV, UGL etc are no good, so what's left? Billionaire Canadian hedge fund manager Eric Sprott, started his own gold ETF (PHYS), that allows you to actually claim the physical, gets taxed at 15% (unlike the 28% that GLD is hit with), and most importantly, is available for audits! The fund buys gold for everyone who owns the stock (in a way), and that's what makes this ETF the best out there! It even trades at a premium, so when GLD gets hit with over 2% on a gold down day (this past Friday), PHYS only got a slap on the hand with 0.8%. Why you ask? simple! premium. The fund is so physical, that it trades at a premium when you have engineered drops in the price of gold (ie. on options expiration day).
No GLD, SLV, UGL, PHYS position in personal account or fund.
GATA Uncovers Market Manipulation in Gold Trading
Written by Prophet
Wednesday, 14 April 2010
DGC Magazine does a great job of summarizing GATA's work on gold manipulation, in a piece, rightly named;
