As the world has watched the drama and rioting unfolding in Egypt, many Commerical and Institutional Investors, along with even nations, have sought “safe havens” for their monies. Ordinarily this would be U.S. Treasuries, yet this time, the so-called “Smart Money” went to Europe instead, There are several reasons and explanations for this happening: the savvy investors saw that there was acceptable inflation in the EU countries, which meant that their currency would also grow; Germany’s Angela Merkel had done an about face where the EU Dollar was concerned, and decided to throw the weight of Germany behind the EU Dollar, in order to stablize it, and help shape EU Financial reforms, so there would be no more needs for bailouts. If, however, there were any other EU Countries that slid down that slipperly slope, the Union would be consolidated and strong enough to endure. German Bonds and Treasuries were one of the Safe Havens that the “Smart Money” docked.
The week that the Egyptian protests first broke out, Fed Chairman, Ben Bernanke, made a public announcement that inflation was still on the downslope in the USA, and there was no need for the Fed Funds rate to be adjusted. Marc Farber, Editor and Publisher of the report “Gloom Boom & Doom ” while attending the Russia Forum in Moscow last week, actually called Mr. Bernanke a liar on live television which was streaming into the CNBC station. Mr. Farber went on the accuse Mr. Bernanke and his ilk of deliberately MANIPULATING the numbers to make them look like the USA is in a slow recovery, when we know that it is not. Mr. Farber’s last parting shot at Mr. Bernanke was, “When a gallon of milk costs $20, there is NO ONE else to blame but Bernanke.” Mr. Bernanke annuonced this week-end that “You are all on your own. I didn’t make this mess,” according to Yahoo news sources.
The markets are looking at a basically flat opening, but most analysts and economists, and especially traders, believe that commodities are only going to continue to the upside, as more disasterous weather damages or wipes out crops altogether. Silver is still outperforming gold, but it would appear the sell off on gold is finished and buying dips has been successful so far. China has outpaced India now for the leading holder of the precious yellow metal. Silver could easily hit $60 an ounce accoring to several Investment Newsletters, websites and power plays. The National Inflation Association has picked silver to be THE INVESTMENT FOR THE DECADE coming up. Silver coins may cost a bit more than bullion, but with JPMorgan still in the picture, still manipulating prices and keeping the price artifically low in hopes they can cover all their short positions without losing billions, then coins are definitely the way to play. During the correction in the precious metals, the prices of gold and silver coins actually rose by 10% according to Bradford Gold Firm’s research.
Final word for the day: Don’t take any plug nickles….
