Miners High-Risk Despite Modern Gold Rush

Just east of Sacramento and right on the edge of the Sierra Nevada mountains lies a seemingly bucolic area that was, in the 1840s, the hub of the California Gold Rush. Today, more than 150 years later, this same region is beginning to experience a mining renaissance. Is it possible that California will experience a second Gold Rush and the economic boom period that accompanied it? Not likely, but there is enough renewed enthusiasm for mining in the state that miners are willing to take on even California’s notoriously onerous environmental hurdles in order to gain access to the “gold in them thar hills.”

In a recent news report for All Things Considered, NPR reporter Lauren Sommer visited the Lincoln Project Mine in Sutter Creek, California, where she saw first-hand the rebirth of mining in the “Mother Lode.” The Lincoln Project Mine is just one of several mines that mining companies either have opened or plan to open in the next few years. If you are wondering why these abandoned mines are re-opening after decades of disuse, the answer is simple: the steadily climbing price of gold.

Read More >

Food Fraud Conceals Rising Price Inflation

If inflation is not the first topic that comes to mind when you read about food fraud, you are not alone. There is no immediate, intuitive connection between recent sensational headlines about horsemeat being found in so-called beef lasagnas and the concept of price inflation.

But in fact, it is price inflation that is causing food fraud. Everyone has experienced shrinking package sizes where price is maintained (quantitative easing), offsetting higher input costs.

However as per this recent Zerohedge article, quality and ingredient substitutions are now the rage:

Read More >

Venezuela Devalues Almost 47% -- Too Late For Many

Just like that, boom, devaluation happens, the snap decision of a desperate government with socialist desires to just give and give and give—but first it must take.

Venezuela just devalued its currency, the bolivar, by 46.69%.

If you as a Venezuelan had $10,000 held in bolivars earlier today, it is too late to buy gold and silver to protect from this loss; you now have less than $5,400 in purchasing power this afternoon. If you stored or saved your hard-earned wealth in silver or gold, congratulations: you have preserved 100% of your wealth; and it could even be said your wealth went up 46% in bolivar terms.

Venezuela Bolivar vs Dollar 2002

Read More >

Food Price Inflation May Be Gold Rush Trigger

If there is one economic indicator that almost anyone can relate to, it is the price of food, and for the past several years food prices have been going up year over year.

In 2008, food prices globally rose to unprecedented levels. While there was a marked drop in the next year, prices spiked again in mid-2011, exceeding 2008 levels and remaining relatively high through the rest of year and all of 2012. Many factors influence food price volatility, including agriculture and energy policy, commodity prices and market speculation, extreme weather events, rising global demand, and falling surplus stocks.

One reason for the sustained price increases is the pervasive drought that has plagued the U.S. since 2010 and that has by now affected more than 65% of the country. The ramifications of these drought conditions are profound.

Read More >

Price Inflation Prompted Stampede into Silver and Gold Presaged by Warburg Sale

We have long informed WealthCycles readers that the herd rush into physical real hard assets will be prompted by rising prices (price inflation), and that the deflation and ongoing re-inflation in the monetary system ratchets the eventual consequences higher. The closest and most scientific hint we have found so far to indicate when the tide will turn comes from Rensselaer Polytechnic Institute:

When the number of committed opinion holders is below 10 percent, there is no visible progress in the spread of ideas. It would literally take the amount of time comparable to the age of the universe for this size group to reach the majority,” said SCNARC Director Boleslaw Szymanski, the Claire and Roland Schmitt Distinguished Professor at Rensselaer. “Once that number grows above 10 percent, the idea spreads like flame.”

So how close are we to the 10% threshold?

Read More >

Gold Under Fire as Money Not Traceable like Bank Issued Toilet Paper

Gold, seemingly everywhere and nowhere at the same time, has popped up on the mainstream radar, after spending the year beating stock markets as the less volatile asset and completing yet another year in a recognized bull market. That’s a lot more than stock markets can say, as they merely tread water in real terms.

Bloomberg highlighted gold on New Year’s Eve as the medium of exchange that could serve as payment for assassinating the U.S. Ambassador in Yemen, according to recorded audio.

Read More >

Annual Wealth Created: BIS Banker vs American Worker

WealthCycles is all about measuring stuff with stuff, and taking the effects of the devaluing fiat currencies out of the equation. In an effort to paint a true picture of the well being of the average American worker, we took a look at real annual earnings to judge the extent to which the Main Street American family budget has come under pressure since the financial crisis began.

The results are startling (chart below).

From before the financial crisis began, the cost of what families need to buy has risen significantly, while nominal wages are rising at their slowest rate in recorded history. In other words, the rate at which wages are rising is far slower than the rate at which the purchasing power of the dollar wages are paid in is falling.

In fact, when measured in real money—gold—the real average annual private-sector wage has fallen from 66 ounces of gold in 2006 to just 28 ounces today.

Read More >

Tricking Children: Pyramid Scheme Puts Glass Ceiling Over Humanity

Gold and the dollar, stock markets a-flutter… Wondering what is next for prices?

It looks like Millfield High School determined monetary policy for end-2012 in her majesty’s kingdom.

In a regional heat of the 13th annual Target Two Point Zero – Bank of England and The Times Interest Rate Challenge held in Exeter on November 19, the high school team recommended price-fixing for interest rates at 0.5%, compared with the Bank of England’s official rate of 0.5% set by its Monetary Policy Committee (MPC). The Millfield team also recommended a total of £375 billion of asset purchases under the Asset Purchase Facility, compared with the £375 billion agreed by the MPC.

Groundbreaking conformism inspired the bankers to award the school as winner of the regional heat, one of 43 from all around England intended to help policy-makers gather input in a manner similar to the public discussion and commenting periods used in the States to review and shape new legislation.

Read More >

Fed’s New Indicator-Based Printing Policy Removes Limits

We finally last week got the first official confirmation from the Federal Reserve (Fed) that its quantitative easing (currency printing) program will ramp up to a cumulative $80 billion to $85 billion per month early next year. That level of currency expansion is necessary if the Fed is to offset the $10 billion per month contraction in the total “money” supply, which has persisted despite the $40 billion currently printed monthly. In other words, the breathtaking rate at which the Fed is decreasing the purchasing power of your existing dollars will nearly double within a few short weeks.

As cited by Bloomberg:

Read More >

Silver and Gold Money Forwarded in More U.S. States

For the past 2,400 years a pattern has continually repeated in which governments debase and dilute their money supply until a point where the common psyche of the populace and the collective mind of a country begin to feel that something isn't right.
You probably feel that way right now.
When paper money becomes too abundant, and thus loses value, man always turns back to the precious metals. When the masses come rushing back, the value (purchasing power) of gold and silver increases exponentially.
During these events there is always an enormous wealth transfer, and it is within your power to choose whether it is transferred toward you, or away from you. If you choose to have it transferred toward you, then you must first educate yourself, and second, take action.

The passages above from Mike Maloney’s Guide to Investing in Gold and Silver paint the big picture. The details show the progress towards the eventual critical mass.

Read More >

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | | NEXT ›