My name is Shawn Ozbun, and our goal is to keep you up to date with what’s going on in the world of Gold and Silver by providing you with current news and precious metals pricing.
The Silvertowne Vault Cast is brought to you by www.Silvertowne.com
Thanks for joining me for another Vault Cast. Today we have 5 or so articles to cover today. We are going to mostly cover economic collapse information today. I think this is getting closer and closer and like I’ve said before there is more and more information about this topic out there then ever before. We are going to get more into the concern over Germany wanting there gold back as well.
I want to remind you that you can find the SilverTowne Vault Cast on YouTube and on iTunes. I would appreciate it if you took the time to leave some comments and feedback about the show. You may also email your comments, questions and feedback at vaultcast@silvertowne.com
Now lets get into today's precious metals pricing!
Gold - $ 1672.60 Down $11.98
Silver - $ 31.68 Down $.53
Platinum - $ 1678.00 Down $5.00
Palladium - $ 716.00 Down $6.52
Financial News:
German Gold Claw Back Causes Concern
Last week the Bundesbank (the German central bank) surprised markets around the world by announcing that it will repatriate a sizable portion of its gold bullion reserves held in France and the United States. To many, the news from the world's second largest holder of gold signaled a growing, if clandestine, mistrust among central banks, possibly fueled by diverging policy goals. The Germans have attempted to tamp down the alarm by highlighting the myriad of logistical, practical and historical reasons that qualified the announcement as unremarkable. But the size, scope, and timing of the move makes it hard not to draw more strategic conclusions.
Coming during a time of supposed central bank cooperation, the decision to withdraw billions of dollars of bullion was bound to raise eyebrows. At present, Germany has official gold holdings of some 3,396 tonnes. 1,500 tonnes resides in New York and 374 tonnes in Paris. Between now and 2020, Germany will repatriate 674 tonnes of gold - 300 from the Fed in New York (valued at $17.9 billion) and the entire 374 tonne allotment from Paris (valued at $22.3 billion). Although financial leaders like Fed Chairman Ben Bernanke have said that gold "is not money" and senior investors like Warren Buffet have described it as "a barbarous relic," the movement of gold nevertheless makes a strong emotional impact. Is such a response justified?
A particularly interesting aspect of the announcement that has been largely ignored is the extraordinarily lengthy seven year time period in which the Germans expect to receive back their gold. The 300 tons they're repatriating from the New York Fed reflects just five percent of the more than 6,700 tons held there. It strikes many as unusual that the Fed would need so much time to deliver what should be a manageable withdrawal. Read More...
Debt Crisis To Spark Economic Crash Worse Than 2008, Expert Warns
Investors should prepare for an upcoming economic collapse far worse than 2008.
That's according to Peter Schiff, the economist and CEO for Euro-Pacific capital, who says that if drastic steps are not taking in the coming months, America's $16 trillion federal debt "cancer" will create a massive economic catastrophe unlike anything ever seen.
"We have a much bigger collapse coming, not just the markets, but of the economy," Schiff recently told Yahoo Finance.
And Schiff is not alone in warning that the U.S. economy is on the verge of spiraling out-of-control.
Since the debt ceiling crisis began heating up, noted economists and investors including Richard Duncan and Nourial Roubani have come to similar conclusions.
Roubani recently said that the country has to wake up to the "full extent of its fiscal nightmare."
However, while the debt crisis is well known to most Americans, the economy hasn't suffered a major correction for almost 4 years.
According to polls, the average American is sensing danger. A recent survey found that 61% of Americans believe a catastrophe is looming - yet only 15% feel prepared for such a deeply troubling event.
In two years, Congress won't have any money for transportation, reports the Washington Post. Cities like Trenton, NJ have layed off one-third of the police force due to budget cuts. And other cities like Colorado Springs, CO removed one-third of streetlights, trashcans, and bus routes, reports CNN.
Fitz-Gerald also warns of a period of devastating inflation. A recent survey, reports USA Today, notes that in the coming years it could take $150,000 a year in household income for a family to afford basic living expenses - and maybe go out to a movie.
Right now, in fact, "52% of Americans feel they barely have enough to afford the basics."
"If our research is right," says Fitz-Gerald, "Americans will have to make some tough choices on how they'll go about surviving when basic necessities become nearly unaffordable and the economy becomes dangerously unstable."
"People need to begin to make preparations with their investments, retirement savings, and personal finances before it's too late." says Fitz-Gerald. Read More...
Gold, Silver Prices at 5-Week High; US Gold Bullion Coins Surge
U.S. gold and silver prices settled at a five-week high after the extended three-day weekend when Americans celebrated Martin Luther King Jr. Day.
Gold futures for February delivery tacked on $6.20, or 0.4%, to close at $1,693.20 an ounce on the Comex in New York. Gold marked an intraday low at $1,684.80 and a high at $1,695.90. The closing price was the highest since Dec. 17.
A weaker U.S. dollar and news of fresh stimulus measures from the Bank of Japan contributed to the gains.
Silver notched a sixth straight session increase and also settled at the highest price since Dec. 17. March silver prices gained 24.5 cents, or 0.8%, to $32.177 an ounce. The precious metal traded between $31.815 and $32.365.
Every type and size of U.S. Mint gold bullion coin advanced Tuesday. Sales rose 31,500 troy ounces, which was 1,000 ounces shy of matching the entire total from last week. The biggest chunk of activity came from a 27,000 jump in American Buffalo gold coins. Now at 66,500 for January, the monthly total is the highest since sales reached 70,500 in May 2010.
American Eagle gold coins advanced 4,500 ounces to 131,500 ounces for January, the highest level since 136,500 ounces moved in November. The next higher tier is back in July 2010 at 152,000 ounces.
Sales remain suspended for American Eagle silver coins. Read More...
The Sovereign Debt Bubble Will Continue To Expand Until – BANG – The System Implodes
Why are so many politicians around the world declaring that the debt crisis is "over" when debt to GDP ratios all over the planet continue to skyrocket? The global economy has never seen anything like the sovereign debt bubble that we are experiencing today. The United States, Japan, and nearly every major nation in Europe are absolutely drowning in debt. We have heard a lot about "austerity" over in Europe in recent years, but debt to GDP ratios continue to rise in Greece, Spain, Italy, Ireland and Portugal. In general, most economists consider a debt to GDP ratio of 100% to be a "danger level", and most of the economies of the western world have either already surpassed that level or are rapidly approaching it.
But right now there is a lot of optimism about the economy. The stock market recently hit a 5 year high and the business community is loving all of the false prosperity that all of this debt is buying us.
Even Warren Buffett does not really seem concerned about the exploding U.S. government debt. He recently made the following statement...
"It is not a good thing to have it going up in relation to GDP. That should be stabilized. But the debt itself is not a problem."
Oh really?
A debt of 16 trillion dollars "is not a problem"?
he truth is that government debt is becoming a monstrous problem all over the globe. Just check out how debt to GDP ratios all over the planet have grown over the past five years...
United States
Debt to GDP ratio in 2007: 66.6 percent
Debt to GDP ratio in 2012: 103 percent
United Kingdom
Debt to GDP ratio in 2007: 43.4 percent
Debt to GDP ratio in 2012: 85.0 percent
France
Debt to GDP ratio in 2007: 63.7 percent
Debt to GDP ratio in 2012: 86 percent
Germany
Debt to GDP ratio in 2007: 67.6 percent
Debt to GDP ratio in 2012: 80.5 percent
Spain
Debt to GDP ratio in 2007: 39.6 percent
Debt to GDP ratio in 2012: 69.3 percent
Ireland
Debt to GDP ratio in 2007: 24.8 percent
Debt to GDP ratio in 2012: 106.4 percent
Portugal
Debt to GDP ratio in 2007: 63.9 percent
Debt to GDP ratio in 2012: 108.1 percent
Italy
Debt to GDP ratio in 2007: 106.6 percent
Debt to GDP ratio in 2012: 120.7 percent
Greece
Debt to GDP ratio in 2007: 106.1 percent
Debt to GDP ratio in 2012: 170.6 percent
The Eurozone As A Whole
Debt to GDP ratio in 2007: 68.4 percent
Debt to GDP ratio in 2012: 87.3 percent
Japan
Debt to GDP ratio in 2007: 172.1 percent
Debt to GDP ratio in 2012: 211.7 percent
Read More...
World Economic Forum founder still sees risk of economic collapse
DAVOS, Switzerland — The world has not escaped the risk of a collapse in the global economy despite some renewed confidence, the founder of the World Economic Forum said Monday.
Swiss economist Klaus Schwab, speaking on the eve of the elite annual gathering in the Swiss resort of Davos, called for business and government leaders heading there to focus on “cautious realism” and recovering public trust to avoid another major financial crisis.
“The problems and the risks have not gone away,” he said in an interview. “The world economy may still confront a collapse if very negative constellations occur.”
Markets started strongly this year, with many stock indexes near multi-year highs, and the euro currency union no longer seems in danger of breaking apart.
However, unemployment remains high in many developed economies and the public’s faith in business and government leaders is falling. The euro alliance and Japan are in recessions, and politicians in the United States are struggling to finalize a budget deal to avoid a potential default that would cause havoc in financial markets. Read More...
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[Disclaimer] Shawn Ozbun is not a licensed financial adviser, there is risk associated with all investment including gold and silver. You should seek advise from a licensed financial expert before making a purchase.
