Happy New Year

This is wishing every one a Happy New Year and lets hope that Gold and Silver will cont to new highs..

Gold futures jumped as much as 1.7% on Tuesday, reclaiming the $1,400-an-ounce level, as the dollar fell against a broad range of currencies.

The dollar index /quotes/comstock/11j!i:dxy0 (DXY 80.29, -0.08, -0.10%) , which measures the greenback against a basket of six major currencies, fell as low as 79.956 earlier, from 80.34 in North American trading Monday. It lately traded around 80.396. Read about dollar.
The came under pressure earlier in the day after the Case-Shiller index tracking home prices in 20 U.S. metropolitan areas fell in October by more than analysts had predicted. See story on home prices.
Metals, along with other commodities priced in dollars, often trade inversely to moves in the greenback because otherwise the currency move would reduce the value of the commodities. Investors have flocked to metals, especially gold, this year, on a combination of their desirability as an alternative asset and as a hedge against the risk of future inflation.
Gold hit a record high earlier this year and is up 28% for the year.
Silver — a cheaper alternative to gold — has skyrocketed nearly 77%.
Copper also has appeal as an industrial metal that tends to benefit from global economic growth. It’s gained 29% this year.

Silver Forecast to Rise to $40/oz in 2011 and $400/oz by 2015

December 15th, 2010
	Gold Gold has fallen in dollars but is flat in sterling and euros this morning. Moody's has cut Spain's debt rating on contagion concerns which has seen the euro fall. Germany's opposition to further government financed aid is leading to tensions with the ECB, which is itself now under financial pressure and may need an increase in capital if it is to continue buying sovereign European debt. Gold is currently trading at $1,388.70/oz, €1,042.18/oz and £886.54/oz. Gold in USD – 30 Day (Tick) The risk of contagion is real and many analysts believe the crisis will escalate early in 2011. This will lead to continued safe haven demand for gold and should see gold once again perform well in 2011. The growing threat of inflation due to significant increase in commodity prices will also support gold. Cotton soared by its daily limit yesterday and copper reached new record nominal highs. Sugar prices have reached a 30 year nominal high and Portugal is experiencing a sugar shortage - the first European country to do so in 30 years. Food and energy prices are rising internationally and the much heralded "wave of inflation" warned of for months may be gradually coming to pass. Gold in USD – 1 Year (Daily) Last night, the Federal Reserve, in a policy statement, said the economic recovery was still too slow to bring down unemployment, and reaffirmed its commitment to buy $600 million in government bonds. This will not do anything to restore faith in the dollar and will likely lead to commodity and precious metals making further gains.  Silver Predictions of higher silver prices in 2011 and continuing into 2015 came overnight. Standard Bank Plc said that they see silver at over $40/oz due to new applications and increased industrial demand. James Turk of Gold Money said that he believed silver would reach over $400/oz in 2015. Turk believes that this price will be reached due to massive investment demand in silver due to a possible crash in the dollar and the emergence of inflation and potentially hyperinflation. Turk also believes that the massive concentrated short positions on the COMEX held by JP Morgan as alleged by GATA and Ted Butler will propel silver prices higher in a huge short squeeze.  Silver is currently trading $28.99/oz, €21.76/oz and £18.51/oz. Platinum Group Metals Platinum is currently trading at $1,689.75, palladium at $744.00/oz and rhodium at $2,225/oz.

Buy Gold and Silver Through a Commercial Bank and You May End Up With a Vault Full of Air by JS Kim

Recent news this week again proves that bankers are among the largest charlatans in the universe.

First Jim Rickards reported that a Swiss bank refused to deliver roughly $40 million of gold bullion to a wealthy client for 30 days and only finally physically delivered his gold when the client brought in his lawyers and threatened to take his story to Reuters and other syndicated financial news networks. Then later this week, James Turk reported that he is aware of another individual that has been trying to take physical possession of approximately $550,000 of silver for two months now from a Swiss bank with zero luck. Turk further elaborated that the bank has been trying to pressure the client into accepting the cash equivalent market value of the silver rather than deliver the physical silver to the client. In both of these cases, I presume that neither of these Swiss banks ever held allocated gold and silver for their clients or if they did, had then leased out the gold/silver or sold the same gold/silver to multiple clients, and thus were forced to stonewall their clients until they could secure the physical metal. Why else would a bank take 30 days to deliver something that was supposed to be sitting in a vault in an allocated account?

Of course, none of this is really shocking as the two above cases merely mirror the circumstances of the 2005 class-action lawsuit against Morgan Stanley in which Morgan Stanley told its clients it was selling them silver in allocated accounts and storing it in its vaults. However, when one of their clients, Selwyn Silberblatt, demanded physical delivery, Morgan Stanley failed to deliver, prompting the class-action lawsuit. Morgan Stanley eventually settled the lawsuit for $4.4 million. Time after time, bankers have been caught committing likely fraud regarding the sales of gold and silver. This likely fraud extends to more than physical sales. In the futures markets, bankers have been discovered to be selling 100 ounces of paper gold for every one ounce of physical gold that actually exists in the market. With PM ETFs, it is highly likely that multiple claims exist on whatever physical gold and silver back the GLD and SLV, if any physical gold and silver even back them at all.

In addition, it’s not just banks you have to worry about these days. The incidence of counterfeit gold coins and silver coins is on the rise along with the recent steep rise in the gold and silver price. The Financial Times recently reported that a wave of hard to detect counterfeit gold coins is now coming out of China. Say goodbye to the days of gold-plated tungsten and say hello to a more complex counterfeit gold alloy consisting of 51% gold mixed with osmium, iridium, ruthenium, copper, nickel, iron, and rhodium. Tungsten is a hard, brittle grey metal that has the same density as gold but none of gold’s characteristic softness. The new fake gold apparently not only has a density similar to the real thing but also has a near identical softness and color, qualities that suggest that metal smiths with an extensive knowledge of metallurgy are producing the new fakes. In fact, Haywood Cheung, president of the Chinese Gold & Silver Exchange Society, Hong Kong’s century-old bullion exchange, said goldsmiths and jewelers in Hong Kong had recently been duped into buying between 200 and 2,000 ounces of the new fake gold.

In conclusion, if you want to ensure that you actually possess real physical gold and real physical silver, take two steps.

(1) Never entrust a bank to hold your physical gold and silver or you may end up sitting on a vault full of nothing but air; and
(2) When you buy from an independent dealer, perform your due diligence to avoid purchasing fakes.

Price of Gold and Silver

WOW!! Did you notice the pricing of gold and silver today??

Gold is once again above the 1400 mark coming in at $1413.69 / oz
Silver is making it way up to 40 mark coming in at $29.39 /oz

Got to love this market!!