Rabu, 22 April 2015

URANIUM... IN SPOT TRADE..??



 
AFP/Getty Images

A worker at the Fukushima Dai-ichi nuclear power plant on stand by.
The market for uranium is showing signs of life just over four years since Japan’s massive earthquake and tsunami caused the worst nuclear disaster in a quarter century, the uranium market is showing signs of life.

Japan has plans to restart some nuclear reactors this year, the first since all of them in the country were eventually shut down in the wake of the March 2011 Tohoku earthquake, tsunami and Fukushima Daiichi nuclear plant disaster.

“As a relatively cheap and clean source of energy, the demand for nuclear energy has been growing for fundamental reasons that even the Fukushima accident couldn’t derail,” said Brien Lundin, publisher of Gold Newsletter, which covers the entire metals and natural-resource sector.

In particular, China is “rapidly expanding its nuclear energy production in response to its growing need for energy and issues with pollution arising from its traditional sources,” he said.




Uranium prices have climbed by roughly 35% since last summer. The weekly price of uranium stood at $38.85 a pound as of Monday, compared with $28 as of June 23, according to data from nuclear-fuel consultancy Ux Consulting Company LLC.

Following the Japan disaster, “public opinion has improved along with revised regulatory standards, which provides certainty for nuclear power going forward,” said Jonathan Hinze, senior vice president, international, at the Ux Consulting Company.

Indeed, the world seems to be warming back up to the use of nuclear energy.

‘Japan was using 50-year-old reactors while China, India and Russia are building next generation nuclear reactors, which are much safer than the first generation dinosaurs of the past.’
Jeb Handwerger, GoldStockTrades.com


“China and India believe that the upside from the clean energy from nuclear far outweighs the downside risks of sticking to dirty coal,” said Jeb Handwerger, president of Mining Development Corp. and editor of GoldStockTrades.com.

He pointed out that “Japan was using 50-year-old reactors while China, India and Russia are building next generation nuclear reactors, which are much safer than the first generation dinosaurs of the past.”


Japan has struggled to restart its nuclear reactors since the disaster, however. This month, a Japanese court halted the planned restart of two nuclear reactors in western Japan because of safety concerns among locals.

All of Japan’s 48 nuclear reactors have been offline since September 2013, according to The Wall Street Journal.


But last week, uranium producer Cameco Corp. CCJ, -1.67% CCO, -1.31%  announced an agreement with India to provide 7.1 million pounds of uranium concentrate over the next 5 years. Shares of Canada-based Cameco have climbed roughly 14% month to date. 


Going forward, the biggest gains in the market should be seen in the high-grade development projects in the Athabasca Basin in Canada, such as the ones operated by Denison Mines Corp. DNN, -1.14% DML, +0.97% and Fission Uranium Corp. FCUUF, -2.53% FCU, -2.56%  and the low-cost producers such as Ur-Energy Inc. URE, +0.88%  and Uranerz Energy Corp. URZ, +3.64% URZ, +4.48% said Handwerger, who owns shares in Ur-Energy, Uranerz and Fission.


Among Lundin’s recommendations is Uranium Energy Corp. UEC, -1.61% a small-scale producer which he says can rapidly ramp up production in response to higher uranium prices.

The 35% price gain since last June has been “slow and steady,” and the market is likely to see more of the same over the next year or so, said Lundin. After that, “the pace of gains could accelerate as market forces finally come to bear.”

Uranium Prices - Daily U3O8 Spot Price Indicator
  http://www.uranium.info/daily_u3o8_spot_price_indicator.php

TradeTech began publishing a Daily U3O8 Spot Price Indicator on March 1, 2011, which reflects data from completed and pending transactions in the uranium spot market.

The uranium spot market has witnessed more vigorous trading activity over the past two years, with a wider range of buyers and sellers, which has led to greater price volatility. In fact, the increase in the spot price in 2010, which climbed above US$60 per pound of uranium oxide (U3O8) for the first time in over two years, was also supported by record spot market activity. Total spot uranium sales volume in 2010 reached 42.8 million pounds U3O8 -- the highest level since 1990.

In addition, a global nuclear power renaissance has been gaining momentum over the past several years and has led to increased uranium spot market activity on an international level. Many nations, particularly in Asia, are engaged in nuclear power expansion programs with upgrades at existing nuclear plants and plans to build new reactors, while others are preparing to launch new nuclear power programs. China’s ambitious nuclear power expansion plan has attracted renewed interest from the financial and investor sectors and helped propel spot price movement in 2010.

Similar to TradeTech’s Weekly U3O8 Spot Price Indicator and monthly NUEXCO Exchange Value®, the Daily U3O8 Spot Price Indicator reflects the company’s judgment of the price at which spot and near-term transactions for significant quantities of natural uranium concentrates could be concluded as of the close of business each day.
Prices are available to clients only. Clients need to login to retrieve a complete list of prices.

Media - Uranium Industry Headlines
 http://www.uranium.info/uranium_industry_headlines.php
Below are news items that appeared in the Nuclear Market Review.

April 17, 2015
Cameco Signs Uranium Contract with India Australia to Advance Uranium Deal with India
Ur-Energy Records Higher Q1 Production & Sales EIA Forecasts Marginal Decline in US Nuclear Generation
Metropolis Conversion Facility Resumes UF6 Production Kansai Electric Appeals Court Decision to Stop Takahama Units
Kagoshima District Court to Rule on Sendai Unit 1 & 2 Restarts China to Build First Indigenous Reactor
European Uranium Files for New License Over Kuriskova Deposit Area Turkey Breaks Ground for First Nuclear Power Plant

Cameco Signs Uranium Contract with India

A breakthrough agreement between Canada and India this week paves the way for a supply of Canadian uranium to fuel the South Asian nation’s growing nuclear power program. On April 15, Cameco Inc. signed a supply agreement with India’s Department of Atomic Energy to provide 7.1 million pounds of uranium concentrate under a long-term contract through 2020. The contract is Cameco Inc.’s first with India, a growing market for nuclear fuel, as the nation plans to expand its power program to 45,000 MWe of nuclear capacity by 2032. Today, India operates 21 reactors that provide 6,000 MWe of nuclear capacity meeting about three percent of the country’s electricity needs. Another six reactors with a total capacity of 4,300 MWe are under construction and scheduled to come online by 2017. Export of Canadian uranium to India for the generation of electricity is authorized by the Canada-India Nuclear Cooperation Agreement, which came into force in September 2013. “We expect [this agreement] will lead to growing trade in nuclear products and services between our nations for the generation of clean nuclear electricity,” said Cameco President and CEO Tim Gitzel. [top]

Australia to Advance Uranium Deal with India

Despite opposition from anti-nuclear groups, Australian Foreign Minister Julie Bishop is confident a framework to facilitate commercial negotiations for supply of uranium to India will be in place by the end of this year. India and Australia signed a nuclear energy cooperation agreement in September 2014, however, negotiations continue over administrative details to allow uranium sales for India’s nuclear power program. Officials from both countries are scheduled to meet again next week to conclude the agreement, which will then need to be ratified by the Australian Parliament. Uranium has the potential to be the next billion-dollar export industry in Australia, with an earning potential of up to A$2 billion (US$1.5 billion) per year. Despite holding  32 percent of the world’s uranium resources, the country only accounted for 11 percent of global production, according to the Minerals Council of Australia. The country produced 5,710 tU3O8 (12.6 million pounds U3O8) during the 2013-2014 year, which generated earnings of $622 million (US$473 million). [top]

Ur-Energy Records Higher Q1 Production & Sales

US producer Ur-Energy has reported sales of 146,000 pounds U3O8, sold at an average price of US$50.55 per pound during its first quarter ended March 31, which generated sales revenue of $7.4 million. The first quarter marks the sixth consecutive quarter in which Lost Creek In-situ Recovery Project in Wyoming made sales to meet contractual commitments. Although production rates at Lost Creek were slowed slightly during the latter part of the quarter while maintenance was conducted on several process circuits, captured pounds increased 29 percent over the previous quarter. Production flow increased 47 percent quarter-over-quarter by sourcing from nine header houses in the first mine unit. For the first quarter, 192,280 pounds U3O8 were captured within the Lost Creek plant, with 177,057 pounds U3O8 packaged in drums and 171,505 pounds U3O8 of drummed inventory shipped out of the Lost Creek processing plant, according to an April 13 statement. [top]

EIA Forecasts Marginal Decline in US Nuclear Generation

The US Energy Information Administration (EIA) has projected that rising long-term natural gas prices, as well as the high capital costs of new coal and nuclear capacity, favor increased use of renewable generation in the USA through 2040. In its Annual Energy Outlook 2015 (AEO 2015) released on April 14, the EIA has forecasted a decline (up to 4%) in the nuclear share of US electricity generation by 2040. The AEO 2015 Reference case estimates that natural gas-fired generation remains below 2012 levels until after 2025, while generation from existing coal-fired plants and new nuclear and renewable plants increases. In the longer term, however, natural gas fuels more than 60 percent of the new generation needed from 2025 through 2040, and growth in generation from renewable energy supplies most of the remainder. Generation from coal and nuclear energy remains fairly flat, as high utilization rates at existing units and high capital costs and long lead times for new units mitigate growth. Electricity generation from nuclear units across the EIA’s Reference, High, and Low cases reflects the impacts of planned and unplanned new builds and retirements. Nuclear provided 19 percent of total electricity generation in 2013, and in 2013-2040 the nuclear share of total generation declines in all cases. In the Reference case, nuclear generation falls to 16.5 percent (Figure 2). In addition, the EIA forecasts that nuclear power’s share of total US generation over the period will fall from 19 percent to 15 percent in its High Oil and Gas Resource case and to 18 percent in its High Oil Price case, where higher natural gas prices lead to additional growth in nuclear capacity. [top]

Metropolis Conversion Facility Resumes UF6 Production

Uranium hexafluoride (UF6) production at the Honeywell Metropolis conversion facility in Illinois has resumed following an extended three-month maintenance shutdown. The extended shutdown optimized site resources and aligned UF6 production targets with reduced customer demand, as “the conversion market remains impacted by continued US Department of Energy uranium transfers and post-Fukushima effects,” ConverDyn said in an April 13 statement. Honeywell will invest US$17.5 million in capital and safety improvements at Metropolis in 2015—including a new liquid hydrogen storage facility, eliminating the use of anhydrous ammonia on site, according to ConverDyn, a general partnership between US firms General Atomics and Honeywell that markets material produced by the Metropolis plant. [top]

Kansai Electric Appeals Court Decision to Stop Takahama Units

Kansai Electric Power Co. has filed an appeal after reviewing a recent Fukui District Court decision that ordered a temporary injunction stopping the operation of Units 3 and 4 at the utility’s Takahama Nuclear Power Station. In February, Kansai Electric was granted a permit from the Nuclear Regulation Authority (NRA) to change nuclear installations at the site, as it was determined that Units 3 and 4 (870 MWe PWRs) achieved new regulatory standards. However, the court ruled the new regulations are not adequate to ensure plant safety. Kansai Electric has also appealed a decision from the same Fukui District Court, which ruled in May 2014, in favor of a petition to halt operation of Ohi Units 3 and  4. Meanwhile, Takahama Unit 2 has been granted a 10-year operating life extension by the NRA. Unit 2 (780 MWe PWR) will reach 40 years of operation in November this year. The NRA approved a 10-year life extension for Takahama Unit 1 (780 MWe PWR) in November 2014. [top]

Kagoshima District Court to Rule on Sendai Unit 1 & 2 Restarts

The Kagoshima District Court is expected to rule on April 22, on whether to issue an injunction on the restart of Kyushu Electric Power Co.’s Sendai Units 1 and 2 (846 MWe PWRs), according to NHK News. This ruling is a scenario that could be similar to the Takahama court injunction ruling this week. In addition to safety measures related to potential earthquakes, the Sendai reactors are also subject to concerns about volcanic eruptions. [top]

China to Build First Indigenous Reactor

China has taken another step in its ambitious nuclear power program with approval of its first indigenous reactor. The State Council issued a statement this week that it had approved the first demonstration unit of China’s Hualong-1 reactor. “It’s not only an inevitable choice to diversify clean energy sources, but also helps raise global competitiveness of China’s equipment manufacturers,” the Council said. The reactor, jointly developed by Chinese state-controlled nuclear companies, is expected to be built at a planned nuclear project in the southern province of Fujian. The State Council provided no details on a construction start date or when the reactor would be ready for service. Once the Hualong-1 technology is proven successful, China hopes to export the reactor design to world markets. [top]

European Uranium Files for New License Over Kuriskova Deposit Area

TSX-V-listed European Uranium Resources (EUU) has filed for a new exploration license for the Kuriskova uranium deposit area in Slovakia, as its current 10-year license will expire on April 19. The Slovak Ministry of the Environment said on April 16, it would deny EUU’s application for a further extension. In addition, the Ministry concluded that the company’s intention to explore for rare earth elements in the license area qualifies as a new exploration project, not as work necessary for completing the exploration that has been ongoing. EUU and joint venture partner Forte Energy have been seeking to enhance the value of the Kuriskova project by evaluating the possibility of adding to the by-product credits of the Kuriskova uranium resource, including potential of rare earth element (REE) credits. The presence of rare earth minerals in the Kuriskova mineralization has been documented by earlier exploration, but quantities and grade of potential REE mineralization have not been estimated. To do so would require re-assay of select drill core and possibly additional drilling, EUU said on April 16. EUU’s Slovak operating entity has now applied for a new exploration license, including the area of the currently defined resource. It is expected that this license will be granted for an initial four-year period with the right for two additional extensions of four years and two years, for a total of 10 years. If approved, a new exploration license would allow work to continue on the Kuriskova project. EUU has invested more than €25 million (US$26.8 million) in Slovakia, including completion of a prefeasibility study on the Kuriskova deposit. The deposit holds Indicated resources of 28.5 million pounds U3O8 and an additional Inferred resource of 12.7 million pounds U3O8, according to the study. [top]

Turkey Breaks Ground for First Nuclear Power Plant

Turkey launched the construction of its first nuclear power plant on April 14, in an effort to achieve greater energy self sufficiency. The US$20 billion project to build the two-unit Akkuyu Nuclear Station in Mersin province on the Mediterranean coast will be overseen by Russia’s state nuclear entity Rosatom. Akkuyu is the first of three nuclear power plants that Turkey plans to build to reduce energy imports from Russia and Iran. A second plant is set to be built by a French-Japanese consortium in the Black Sea city of Sinop, while the location for a third plant remains undecided. [top]

Media - In the Market

TradeTech Trade Tech Nuclear Market Review Uranium Spot Term Price Indicator Publication Newsletter Conversion Enrichment SWU Value Per Pound U3O8 Transaction Fuel Power Energy http://www.uranium.info/in_the_market.php
Update for the public provided three days after publication.
Apr 17, 2015 - Canada’s prime minister announced a breakthrough deal Wednesday to supply uranium to India for electricity generation with the signing of a C$350 million (US$283 million) contract for the supply of 7.1 million pounds of uranium concentrate over the next five years, for use in a growing number of Indian nuclear power plants. The first deliveries will be made this year, with pricing based on the published market price at time of delivery. The uranium will be sourced from the northern Saskatchewan mines of Cameco Corp. Meanwhile, in Japan, progress in restarting reactors appears to have slowed this week, with a Japanese court citing safety concerns and ordering a halt to plans to restart two reactors. The Fukui district court’s injunction against the return to service of Takahama Units 3 and 4—the first against any nuclear plant in Japan—came as the government is poised to officially restore nuclear power. The plants’ operator, Kansai Electric, swiftly filed a protest asking the court to review details of the judgment. The utility also said it would continue striving to demonstrate and verify the safety of the reactors, so as to minimize the effects of the recent court decision on the procedure leading to their restart.  The Japanese Nuclear Regulation Authority said last week it was “very close” to finalizing its review of Sendai Units 1 and 2, which would be the first reactors to restart since the 2011 Fukushima accident. Japan’s Ministry of Economy, Trade, and Industry is reportedly considering a mid-20 percent level of renewable sources in the mix, up from 11 percent in Fiscal Year 2014, as well as a contribution of at least 20 percent nuclear power. The spot uranium market remained quiet in the midst of these newsworthy developments with only three transactions totaling approximately 300,000 pounds U3O8 reported for the week. Buyers were utilities and intermediaries; intermediaries acted as the sellers.  Market activity has been relatively slow for the past two weeks in spite of decisions from utilities on term uranium evaluations. A few sellers did move into the market late last week, but after successfully placing material, they were less aggressive in pursuing opportunities. Buyers are showing little willingness to pay higher prices, bringing market activity to a standstill. Recent transactions were concluded at, or very near, today’s Weekly U3O8 Spot Price Indicator. TradeTech’s Weekly U3O8 Spot Price Indicator is $38.90 per pound U3O8, a drop of $0.10 from last week’s value and unchanged from the April 16 Daily U3O8 Spot Price Indicator.  read more

Nuclear Grade Zirconium Alloy Market Outlook


Analyzing the Future for Zircaloy

http://www.uxc.com/products/rpt_zirc.aspx

The Ux Consulting Company (UxC), a global leader in nuclear market information services and consulting, is pleased to present the fourth edition in its report series Nuclear Zirconium Alloy Market. The initial report, published in November 2008, was intended to be a one-of-a-kind snapshot of the then-contemporary zirconium alloy industry. However, the highly favorable response to that original report and subsequent report updates convinced us that there is an ongoing need and desire for current information and analysis on this important topic. Thus, we have added the Nuclear Zirconium Alloy Market to our list of periodic reports, and our latest findings and conclusions are presented in this new March 2013 edition.
This updated report offers UxC’s latest analysis of the various sectors that make up the nuclear-grade zirconium sponge, alloy, materials, and tubing markets. Using proprietary demand modeling and other unique research results, we identify the latest major trends in this industry by analyzing the global and regional supply and demand balances for nuclear-grade zirconium alloy and tubing.
Nuclear-grade zirconium alloys and products are used in the fabrication of fuel assemblies used in the vast majority of current and future nuclear reactor designs around the world. As global nuclear reactor growth continues, many questions about the international nuclear supply chain have arisen. The supply of nuclear-grade zirconium – from zircon mineral sand through the cladding and components used in finished fuel assemblies – has also not escaped this scrutiny. Therefore, the primary objective of this report is to factually and analytically approach the current and expected future direction of the nuclear-grade zirconium market to help formulate clear conclusions about how producers of fuel assemblies for nuclear reactors will obtain necessary zirconium for their finished products. 

What’s New in the 2013 Edition?

This 2013 edition of UxC’s Nuclear Zirconium Alloy Market report includes the following new elements:
  • Enhanced analysis of the latest zirconium minerals market trends, including assessment of the recent collapse in prices for zircon raw materials and the resulting impacts on the nuclear zirconium alloy market
  • Increased analysis of the nuclear zirconium alloy production cycle and the technologies deployed in this industry
  • Updated supply capacities and production data for all producers in the nuclear-grade zirconium supply chain
  • Post-Fukushima updated nuclear reactor and zirconium demand forecasts
  • New supply forecast for nuclear-grade zirconium sponge as well as updates to our nuclear zirconium alloy and tubing supply vs. demand forecasts
  • Updated nuclear-grade zirconium sponge and alloy market price information and analysis
  • Improved discussion on the design of BWR and PWR fuel assemblies, the zirconium alloy components of which they are constructed, and the fuel fabrication process

Standard Features

  • General Zirconium Overview provides a broad summary of the zirconium mineral occurrence, resource base, and industrial applications, including the role of zirconium alloy production for the nuclear fuel industry. This helps put the specific nuclear zirconium market analysis in perspective.
  • Manufacturing Processes for Nuclear Fuel Cladding discusses the manufacturing processes and the overall “zirconium cycle” for production of the materials and components used in nuclear fuel assemblies.
  • Nuclear Zirconium Alloy Materials & Product Suppliersoffers updated descriptions of each company involved in nuclear-grade zirconium alloy materials and product supply. This includes all firms in the world involved in zirconium sponge and alloy production and processing through manufacture of tube-reduced extrusions (TREX), as well as separate tubing manufacture.
  • Nuclear Fuel Fabricators & Zircaloy Tubing Supply provides a review of the nuclear fuel fabrication business and processes while indicating where fabricators acquire their zirconium fuel assembly components.
  • Nuclear Zirconium Supply & Demand Analysis offers UxC’s proprietary data and analysis of the global supply and demand balance for nuclear fuel-related zirconium sponge, alloy, and products. In addition, this chapter includes regional breakdowns as well as supply and demand analysis based on the different global reactor fuel types.
  • Overall Conclusions & Market Analysis completes our nuclear-grade zirconium market analysis with final thoughts on future market trends and expectations for price developments.

Pricing Information

  • Full standard price: US$4,000.00
  • UxC Market Report Customers: US$3,500.00 (must be a subscriber to one of UxC’s Market Outlook report packages – UMO/CMO/EMO/FMO)
  • Repeat Customers: US$3,500.00 (a special discounted price is available for customers of previous editions of UxC’s Nuclear Zirconium Alloy Market reports)
UxC’s 2013 Nuclear Grade Zirconium Alloy Market Outlook report is available for immediate purchase. Please see our product flier and the table of contents in Adobe Acrobat PDF format.

An online order form is now available.



Right now, there's a rare, moneymaking phenomenon in the
precious metals market that's so powerful, experts named it...
Gold's "Doubling Effect"
Thanks to this unique tool, every time gold gains just 1%, you make 2%...
a 25% gain pays 50%... a 100% gain pays 200%... a 500% gain pays 1,000%!
But you'd better hurry. As you'll see over the next five minutes, the price of
gold may very soon super-spike higher than $5,000/oz!


Dear Reader,
http://www.angelnexus.com/o/web/75973?r=1
 
What I'm about to share with you is no coincidence.
It's not a temporary trend, either.
Instead, it's a moneymaking phenomenon so powerful that our team of researchers spent the past eight months investigating it — just to make sure it was real.
Take a look and you'll see why:

lmp-golddouble-chart1-1
lmp-golddouble-chart1-2

First, let me say that these charts are NOT duplicates.
The one on the left represents the closing price of physical gold from late 2014 to early 2015. The one on the right is the investment we're following extremely closely
Now, at first, they appear virtually identical. And they should — one is directly based on the other.
But that's where the similarities end.
How so? Just check out the two charts again... only this time, with gains attached:

lmp-golddouble-chart2-1 

lmp-golddouble-chart2-2

From November 5, 2014 until February 5, 2015, physical gold prices soared about 10.93% — their best start to a year in three decades.
But the diamond in the rough we uncovered soared an astonishing 22.2% — more than doubling the gains gold attained!
I know. It looks crazy. And I don't blame you if you're skeptical.
In fact, when I first heard about this opportunity, I couldn't believe it either.
Scratch that — I thought my source had been drinking a little too much Maker's Mark.
First, how could an investment exist — directly related to gold prices — that pays you DOUBLE the gains gold makes?
How could a 25% gain pay you 50%... and a 50% gain double your money?!
And second, who cares about gold right now?
Sharing this with an investor almost seems illogical.
Of course, that's why I kept this discovery under wraps for a little while.
You see, before I could show you an opportunity this powerful, I needed to know exactly what I had. I also needed to determine when would be the best time for hungry investors like you to start taking advantage of it.
Today, many of the world's leading authorities — myself included — believe gold is hitting its bottom right now. If that's the case, you could be looking at the easiest moneymaking opportunity in decades.
I'll give you the full details of how it works below. First, let me show you...

How our current monetary cluster-f**k
can make you filthy rich
Imagine for a moment that you knew about certain factors already in place that would cause the price of gold to start skyrocketing by... let's say...
Next month!
By taking advantage of this one-of-a-kind investment at the right time, you'd be able to ride the coming wave and easily collect a fortune — safely pulling in twice the gains gold makes.
Remember the recent gold surge from $729 an ounce to nearly $1,850? You could have made more than four times your money as gold launched 154%!

lmp-golddouble-chart3
Don't worry too much if you missed it. Because this next wave could be even greater and pay you even more money over the coming months and years.
The best part is, unlike other investors who are now starting to buy expensive futures or even physical gold, you don't need a lot of money to get started with what we've appropriately named, "Gold's Doubling Effect."
Anyone looking to increase their wealth could begin collecting "The Doubling Effect" with just $25.
That's what I love about this investment.
All you need to know is when to buy...
Thanks to history repeating itself, we don't have to wait too much longer.
In fact, we're now in what many analysts are calling the perfect storm — one that may very well make 2008's crash look like a warm-up and send gold soaring to $5,000 per ounce or more as investors scramble to history's only true safe haven!
Let me explain...
You don't need to look too closely or have a Ph.D. in economics to understand that the chart below exposes a staggering, record amount of margin debt. In fact, it's currently twice as high as it was just before the 2008 fallout... Even scarier is how it always coincides with historic market crashes...

lmp-golddouble-chart4

Next, we have a P/E ratio so high that it only peaked higher in 2001 and 1929!

lmp-golddouble-chart5
And then there's this one — the market cap-to-GDP ratio. It's an indicator that Warren Buffett has described as "probably the best single measure of where valuations stand at any given moment." It clearly shows that we're in some serious bubble territory... territory that's about to send us over another cliff.
lmp-golddouble-chart6
You get the point. Our record highs aren't all they're cooked up to be. And if you don't watch out, you could lose everything... again.
But what happened exactly? Didn't the government fix this problem?
No. The truth is that the same money it freely printed to get us out of this mess simply went right back to fuel another round.
It's how companies like Bank of America were able to pay back the billions they lost so quickly.

lmp-golddouble-clipping
It was like Wall Street looked at the mistakes of the past and said, "Double down." And we're about to pay for it...
One way or another.
Of course, these days, nobody accepts responsibility. Nobody will — or even can — say, "It's going to be painful for a while. But we need to fix this mess now and stop passing the buck."
Nope. You know it, and I know it.
The only option the Fed has is to print more (and I hate to call it this) Monopoly Money.
That much cash is already set to send an inflationary shock wave across the entire nation.
And as I'm sure you know, when there's inflation — even the rumor of inflation — the gold price does something beautiful: it skyrockets!
And the proof that gold's already revving its engine is all around us:
  • The private sector recently gobbled up in excess of $30 billion worth of T-Bills — enough to guarantee a negative return — over fears of the coming economic crash.
  • On top of T-Bills, investors seeking safer investments are buying so much physical gold that bullion dealers and producers can't keep up.
  • In just the past three months, gold prices have steadily climbed almost 14% — with another 50% surge expected in the near term.
And that's just for the short term. I haven't even mentioned the juiciest part.

History to repeat: Why gold prices could super-spike to
$5,000...
making you a massive fortune along the way!
Right now, gold sells for just over $1,200 an ounce.
And as you may know, many of the world's leading speculators, myself included, believe it already hit bottom.
But before it goes up, what if you knew about the factors at play this very moment that could soon make the $1,200 mark look like pocket change?
Heck, with the investment tool we uncovered, you could double the gains that gold prices make. If it goes up another 12% in the coming month (as we are expecting), you could safely make a 24% profit in a single month!
If gold prices double over the coming year, you could make three times your money!
And that's really just the tip of the iceberg.
Now, just to get an idea of what to expect in the future, let's take a quick look at our last massive gold super-spike...
And I don't mean its run a few years ago to only $1,900, either... That was just an appetizer.
During the great gold bull market of the 1970s, the average monthly gold price increased from under $35 to over $675 an ounce... representing a 1,833% gain.
If today's gold bull market makes similar moves forward, gold prices could skyrocket well past $5,000 an ounce. Just take a look:

lmp-golddouble-chart7-1 

lmp-golddouble-chart7-2
Now, gold prices at $5,000 may seem like a stretch, especially considering that the metal hasn't had much stable support over $1,200. Nevertheless, $5,000 gold is absolutely possible. Here's why:

How a Gold Bull Market Works
Every major gold bull market in modern history has consisted of three main stages:
  1. Currency Devaluation Stage
  1. Investment Demand Stage
  1. Mania Stage
During these three stages, gold prices typically rise in a parabolic upswing, which ultimately results in a sharp, skyrocketing price spike. (Take another look at the 1970s gold bull market chart above as an example of this phenomenon.)
So far in today's gold bull market, we've seen evidence of the first two stages. And my firm successfully guided everyday investors right from the ground floor to triple-digit gains during its run up to $1,900.
As Robert Brigham writes, "My portfolio is worth many, many times what I originally invested!"
All thanks to timing gold investments with pinpoint precision.
I know a lot of investors who sat on the sidelines and watched others get rich off of gold's little surge up to $1,900. And I know many more who wished they took part in it.
Fortunately, thanks to the major pullback we've experienced in gold, investors have another opportunity to take advantage of this extremely easy money as gold prices prepare for another major surge!
As CNBC reports, "2015 will be the year for gold!"
CNN says, "Gold is sexy again"
Bloomberg agrees, "Feds won't stop gold's recovery"
So before you miss the ride, here's how it works...
During the first stage of a gold bull market, prices increase because of currency devaluation.
We know how high and fast gold prices can go during devaluation. When the Fed announced the beginning of QE, gold prices launched 173% in just a few years.

lmp-golddouble-chart8
And now, thanks to banks making the same mistakes that got us into 2008's mess, the third-highest PE ratio in history, and Warren Buffett's market cap-to-GDP ratio signaling another major bubble, we're staring right at the door of another market crash AND gold boom!
And that's Stage 1.
In the second stage, gold prices continue to grow due to increased investment demand and safety from a falling dollar and poor stock performance. Attracted by the modest gains of the first stage of the gold bull market, investors begin to buy gold as an investment, which further snowballs the price of gold higher.
In other words, as the stock market goes from QE sugar rush to the headache of a QE sugar crash, good value will be hard to find in stocks.
In fact, the New York Times recently reported, "Returns [from stocks] in the coming years will be modest at best."
MarketWatch put it bluntly: "Here’s some advice: Rather than trying to be a stock-picking genius, before a bear market shreds your portfolio, think about getting out of the market even if you’re early."
Market maven Robert Shiller has gone as far as saying "the investing golden age may be over" and that "people may need to move away from the thought that the economy will go back to how it was pre-crisis."
With stocks at their peaks and interest rates at extreme lows or even negative, you’ll need to protect your savings from inflation...
And as more and more people realize this, investors will flock back to gold, sending the price even higher.
So it should come as no surprise that we’re not the only ones banking on the future rise of gold.
George Soros, the man who broke the bank of England, recently increased his stake in the SPDR Gold Trust by 49%.
You see, Soros is worried about rising inflation due to the monetary policies of the world’s central banks.
And he isn’t the only one...
Take John Paulson, who got rich shorting the subprime mortgage crisis, for example. He’s got a $1.3 billion stake in the SPDR Gold Trust.
Or Carlos Slim, a Mexican business magnate and the second-wealthiest man in the world. He recently purchased three-quarters of a billion dollars in gold and silver mines.
And with today's emerging demand for physical gold and the introduction of gold ETFs — and similar products — investment demand is moving full-steam-ahead, growing both in terms of tonnage and dollar demand.
Again, the first and second stages of a gold bull market generally return considerable gains. In fact, gold prices in this phase could rapidly increase by as much as 306%.
Of course, with the investment tool I'm about to show you, that modest 306% return could stuff your pockets with more than 600% gains!
But truth be told, it's the third and final stage of a gold bull market that can turn everyday investors into instant millionaires.

How the mania stage of a gold bull market could hand you
several thousand percent gains in very short order
Everyone knows there's no rush like a gold rush. And a speculative mania can kindle an inferno of popular greed that rivals that of the Conquistadors' legendary lust for gold.
During the third stage of a bull market, mania buying finally turns gold's parabolic upswing into a blistering price spike.
And this time, it's going to happen across the entire globe...
  • The U.S. Mint recently suspended sales for its American Eagle one-ounce gold coin.
  • The South African Rand Refinery, makers of the infamous Krugerrands, admitted that it was temporarily bone-dry.
  • Australia's Perth Mint announced it was no longer selling gold to citizens.
  • Germany's Bundesbank refuses to sell its gold to the public, claiming it as a strategic asset required for the confidence and stability of the euro.
  • The World Gold Council recently reported an all-time quarterly record ($32 billion) for gold as investors seek refuge from global financial meltdown. That's an astounding 45% increase from the previous record.
And this rapidly spreading shortage is only the beginning of what is bound to launch gold prices to levels of mass hysteria... making those on top of the wave filthy, filthy rich.
Now let me tell you how you can...

Double Your Gold Profits
With This Unique Investment Tool
Not too long ago, one of the world's leading international investment managers launched a new, one-of-a-kind investment vehicle designed to double the daily return of gold prices.
Mind you, this investment has been all but ignored by the media since its launch. Gold, after all, has never been understood or appreciated by the mainstream, despite its historic economic significance.
Still, for every 1% increase in the price of gold, this new gold investment vehicle delivers a positive 2% return!
There's no investment club to join. You won't have to open a special account to get in on the action. It trades on a major exchange. Plus, it's completely liquid... and easy to add to any stock account you own right now.
To top it off, as you already know, now is the time you want to be in gold!
After all, the U.S. dollar — despite its recent strength — is backed by a government that's $18 trillion in debt.
In a world where the only real currency options are the dollar and euro, the dollar wins.
But look what happened recently when investors were given another choice — the Swiss franc.
As soon as the Swiss national bank decoupled its currency from the euro earlier this year, the franc soared by 10% against the dollar in a few days.
When you give investors a sound choice beyond the dollar and euro, the dollar loses.
The U.S government is now racking up debt at a rate of $1 trillion per year.

5 U.S. Debt Lies to Stoke Gold Investment
The demise of the U.S. dollar is a "when," not an "if."
In fact, we're already uncovering tons of evidence to prove it's already started.
And it could launch the gold mania buying stage to previously unthinkable levels...
Making this new gold investment vehicle a true "no-brainer."
I have all the details polished off for you in your free report, "Gold's Doubling Effect."
And I want to send it to you now — absolutely free — so you can see exactly how it works before gold prices edge up any higher.
After all, every 1% increase represents a 2% gain that could be in your pocket!
And there are five lies most people believe about America's massive debt that could send gold soaring sooner rather than later...
Lie #1: It's Under Control
It is far from under control. In fact, the last time the U.S. debt decreased from year to year was 1957. My parents weren't even born then. Eisenhower was president.
The U.S. government is addicted to debt.
Lie #2: We Owe It to Ourselves.
I love this one.
While it's true that two Social Security trust funds own $2.72 trillion (just 15%) of U.S. debt, people who say that debt doesn't matter because we owe it to ourselves have a screw loose.
That debt is owed to future beneficiaries of Social Security. That is, every single U.S. citizen alive.
How is it better if the government defaults on its citizens rather than a bank?
Lie #3: We Can Selectively Default
What folks who say this mean is that we can just not pay China the $2 trillion we owe them. Or we can just default on the Federal Reserve's $2.46 trillion portion of the debt.
Go ahead and try it.
See how much credibility that lends the dollar and how high it sends gold the next day.
A currency crisis would ensue with either option.
Lie #4: Only Net Debt Matters
This one is truly bone-headed. The thinking goes: If I have $100 in debt and $100 in my pocket, my net debt is ZERO.
The problem with this is that the debt is $18 trillion and the Treasury Department has $71.9 billion.
So we'd still have $17.92 trillion in debt!
Lie #5: They Can Just Raise Taxes
Nope. The U.S. government already spends 90% of its tax revenue on mandatory entitlement programs and interest on the debt.
You think they could ever raise taxes high enough — without a rebellion — to actually pay down some principle?
Hardly.
It reminds me of the Churchill quote that says, "A nation trying to tax itself into prosperity is like a man standing in a bucket trying to lift himself up by the handle."
The debt problem — and therefore the dollar's problems — cannot be fixed.
But you can reduce your exposure to what happens next and even come out ahead in the process.
You can claim my free report — "Gold's Doubling Effect" — by clicking below. Before you do, though, you may want to know a little more about me.

Let Me Introduce Myself...
My name is Nick Hodge. I’m the founder of Like Minded People, a community for individuals dedicated to surviving and prospering independent of the poor decisions and oppressive financial polices of our government.
We’re one of the largest independent financial publishers in the world. And our mission is to help readers like you learn what’s really going on behind the headlines and in Washington, D.C.
We want you to know how this affects your money both now and over the long term. And we show you valuable alternative investments to what Wall Street’s peddling.
You might have read one of my essays online or seen me speak at any number of conferences. I spend half the year on the road spreading the Like Minded People message.
Face it: Our government is greedier than ever, and your savings — as well as your civil rights — are under attack. You need to understand what’s really happening so you can put yourself in the best position to profit.
We have hundreds of thousands of members who read our work every day — and the list is growing daily.
Over the last few weeks, our experts have shown readers...
  • How to get their hands on the U.S. Mint’s never-before-released "curved gold."
  • The #1 sector to invest in right now.
  • Why even after a near collapse, Russian stocks still aren’t a bargain.
  • The best way to invest in China’s version of Amazon.
Every day, we show people how to become truly self-reliant — how to prosper with help from no one but themselves.
Beyond that, I personally do boots-on-the-ground research, examining investment opportunities across the world.
Frankly, some of them don’t make the cut.
But that’s why I do the legwork — so I’m sharing only the best, most legitimate profit opportunities with my readers.
When I find one of these valuable situations, like gold's doubling effect, I write up a comprehensive special report with all of my research on the topic.
And then I share that unfiltered information with my readers so they can decide whether or not this is an opportunity they want to pursue.
I’ve been doing this for a decade now, and some of the opportunities I’ve found have helped my readers make serious money.
For instance:
  • Back in 2012, I found a company that was combining 3D printing and biotech. Organovo Holdings had created a process to produce functional human tissue through what it called 3D bioprinting.
The stock was at $2 when I recommended it. In a little less than a year, it soared over 245%.
  • I saw that a company with a $0.59 share price was signing deals with Rice University, the University of Virginia, and the National Renewable Energy Laboratory.
After further digging, I found out the company had a proprietary silicon coating that would drastically improve the performance of solar cells. I visited this company and saw the technology in practice.
I recommended the stock to my readers, and it went up 128% in three months.
  • I learned that a $0.19 company, Alternate Energy Holdings, was building a nuclear power plant in Idaho before the market had a clue.
The stock soared to $1.00, handing my readers 426% gains in just three months.
If you’d put $10,000 into each of these investments, you’d have netted over $80,000.
And these are just a couple of examples.
Helping people realize their financial goals is my ultimate aim. I’ve been fortunate enough to get a great response from my readers.
So when I hear things like this, it makes me smile...

testimonials
Now, I want to help you get a leg up on the market...
If you claim your risk-free copy of "Gold's Doubling Effect" today, I’d also like to give you a chance to try my work at no cost to you.
I’d like to send you four (4) pertinent research reports today for FREE.
You won’t hear about these ideas anywhere else.
But you’ll get them free — along with your copy of "Gold's Doubling Effect."
Here are the research reports you'll have access to immediately....
  • "Your Personal Fort Knox: How to Buy and Safely Store Your Precious Metals": I’ll get into the do's and don’ts of precious metals ownership — specifically where to safely store your precious metals in your home. I’ve personally gone out and tested all types of storage, from vaults to safes to off-site storage. In fact, the best thing I found is probably available at your local Wal-Mart. If you are going to buy gold or silver coins and even ETFs, I’ll show which are the safest and how to avoid being ripped off.
  • "The 'King' Play: How to Turn Every $10,000 You Invest Into $100,000": Bear in mind, I don’t expect physical gold and silver to pay off next week. They're long-term investments for protection first — profits are the gravy on top. But there are ways to make big money in a hurry on gold and silver, and I’ve found them. This "King" Play has a chance to be explosive. In the short-term, based on my research, you could make a quick 150%. But in the long run, you could make 10 times your money or more. I’ll explain exactly what the "King" Play is and how you can make it work for you in this report.
  • "Currency 'X': An Alternative Guide to Riches": I’m really excited about this idea. It’s something I discovered a couple of years ago, but it’s been nearly 100 years in the making — a true, bona fide alternative currency that anyone can use. It’s not gold, silver, or platinum, but the value of this Currency 'X' is skyrocketing. You still have a chance to get in now before it prices out the average investor. But you need to hurry to jump on one of the most unique and world-changing investments I’ve ever seen... a brand-new, legitimate currency. I’ll explain everything in this comprehensive guide.
  • "How to Legally Buy Silver for $0.16": Beyond just owning precious metals for protection, I’ve also found a way for you to make tremendous profits on silver in a very short period of time. I’ll show you a completely legal way to buy silver at an astoundingly low $0.16 per ounce. I’ve spent over three years researching this opportunity myself. I can assure you it’s completely legal — though very few people know about it right now. But you can take advantage of this cheap silver without leaving your home — and in U.S. dollars.
This information is extremely important if you want to jump on the coming gold and silver boom.
You can take advantage of this very special, one-time-only offer when you claim a free 30-day trial to my monthly research newsletter, Like Minded People.
Every month, I point out flaws in the government and market systems. I’ll show you how to exploit some of these flaws for big profits — and which to avoid at all costs.
I’ll show you how to remove the government from your life as much as possible — and I’ll give you tips on how to live outside the corrupt system it's created.
The dollar is a ticking time bomb, ready to explode with inflation and erode your savings.
Like Minded People will show you how to protect yourself and thrive in spite of the government's and banks' rash decisions and sinister plots.
Every month, as a member of Like Minded People, you'll get an update on the follies committed by governments around the world and how they affect your life and finances.
I’ll also share with you a brand-new, totally unique way to profit in every issue.
With your 30-day FREE trial subscription to Like Minded People, you’ll get the four special research reports I mentioned above, plus you’ll get access to my archives and every recent recommendation I’ve made.
You’ll have the full breadth of my experience and research — for FREE.
All of these gifts apply to the situation we’re facing right now...
And that’s ultimately why I’m doing this.
When you send for this generous package — the free copy of "Gold's Doubling Effect"... my four (4) research reports... and a 30-day free trial subscription to Like Minded People — you’ll get sound, independent advice about how to handle the storm on the horizon.
That’s why we’re giving you all of this for a risk-free $99.
I’m not going to make much money on this deal. And I don’t care.
I believe very strongly in my work.
I could tell you all day about it... or I could just let you see for yourself.
So that’s what I’m doing. You’ll get this whole package when you sign up for a trial membership to Like Minded People.
I’m hoping my research is valuable enough that you’ll want to continue doing business in the future.
If you don’t like it, you’re under no obligation to purchase anything from us ever again.
But to help make it even more of a no-brainer, I've leveraged my contacts in the gold industry to bring you...

A Discount on All Bullion Purchases
In addition to a market investment that delivers twice gold's daily return, it's also prudent to hold the physical metal.
So I contacted a gold dealer friend of mine with an offer: an exclusive deal for people who take advantage of today's "Gold's Doubling Effect" offer.
And he agreed.
So when you claim your FREE copy of "Gold's Doubling Effect" today, you’ll get a special VIP benefit that no other reader will get:
A 50 basis-point discount on all gold and silver bullion purchases.
Because the margins on bullion are razor thin, a discount on bullion purchases is almost unheard of.
But if you claim the risk-free package I'm offering today, you'll not only get a brand-new report on how to DOUBLE your gold returns... but you'll also get a 50 basis-point discount on any bullion you buy from our trusted partner.
My advice — as it always has been and will be for the foreseeable future — is to buy gold and silver and hold it as protection against a looming crisis.
We want to spread the word to as many people as possible — and make it easy for them to gain the power of precious metal ownership.
I want to help you protect yourself, first and foremost by giving you valuable information and by keeping your initial outlay as small as possible.
Remember, this is what you’ll receive:
  • A free copy of my latest report, "Gold's Doubling Effect."
golddouble-report
  • Four (4) special reports from me — Nick Hodge — and our research team at Like Minded People:
    • Bonus Report #1: "Your Personal Fort Knox: How to Buy and Safely Store Your Precious Metals"
    • Bonus Report #2: "The 'King' Play: How To Turn Every $10,000 You Invest Into $100,000"
    • Bonus Report #3: "Currency X: An Alternative Guide to Riches"
    • Bonus Report #4: "How to Legally Buy Silver for $0.16"
  • A 50 basis-point discount on your gold and silver bullion purchases.
  • A free 30-day trial to my Like Minded People monthly newsletter — and full access to my issue archives and open portfolio.
If you’re interested, please act soon.
We believe the U.S. dollar is headed for massive inflation. In fact, we think it’s already started...
This means the largest wealth transfer in history is about to happen. If you own gold and silver, you’ll be on the winning side.
I believe I’ve put together the cheapest way possible for you to get a leg up on the crowd...
If you’d like to take advantage of this offer, please click on the "Order Now" button below.
You can review the specifics one more time and tell us where you’d like your free information sent after you click.
I look forward to the wealth we'll make together.
Call it like you see it,
Nick Hodge Signature
Nick Hodge
Founder, Like Minded People
  

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Three 15,000%+ stock runs in a row
https://mail.google.com/mail/u/0/#all/14ce77160e4071e9
When one trailblazing investment collective secured three five-digit stock runs in a row, early investors reaped giant gains of 19,950%, 49,893%, and 67,350%.
Now this group has its hands on yet another game-changing technology, meaning it's once again poised to unleash a torrent of "retire now" stock market gains.
China Declares War
By Brittany Stepniak | Thursday, April 23rd, 2015
*Editor's Note: I ran the original version of this article in early 2014. I have edited it to reflect current events, with the same thematic issues still ringing true (albeit, more loudly this time around) today. 
___________________________________________________________
If the Federal Reserve doesn't single-handedly murder the U.S. dollar, China will. And it's going to do it with the dollar's antithesis. It's going to do it with gold...
I'll get to that in a minute, but first let me re-cap what's happening in the international economy.
Global Liquidity Squeeze 
In case you haven't noticed, the global economy is on the brink. A worldwide credit crunch is unfolding as we struggle to find superficial ways to crawl out of this black hole of debt we've created. Most nations are doing so in vain.
But there's one economy that seems to keep finding innovative ways to circumvent disastrous economic situations.
Over the past six months, China's stock market has exploded even as the overall Chinese economy has started to slow down. Investors have been using “umbrella trusts” to finance a lot of these stock purchases. These trusts have given them the ability to have much more leverage than normal brokerage financing would allow. This works great as long as stocks go up. Once they start going down, the losses can be "absolutely staggering."
Authorities in China are doing their part to keep the bubble at bay. Bloomberg reports: 
China’s trusts boosted their investments in equities by 28 percent to 552 billion yuan ($89.1 billion) in the fourth quarter. The higher leverage allowed by the products exposes individuals to larger losses in the event of stock-market drops, which can be exaggerated as investors scramble to repay debt during a selloff.
In umbrella trusts, private investors take up the junior tranche, while cash from trusts and banks’ wealth-management products form the senior tranches. The latter receive fixed returns while the former take the rest, so private investors are effectively borrowing from trusts and banks.
Margin debt on the Shanghai Stock Exchange climbed to a record 1.16 trillion yuan on Thursday. In a margin trade, investors use their own money for just a portion of their stock purchase, borrowing the rest. The loans are backed by the investors’ equity holdings, meaning that they may be compelled to sell when prices fall to repay their debt.
Because the credit boom in China has been one of the leading causes for global growth over the past few years, some economists fear that this unfolding credit crunch will be hugely detrimental as the ripples from China's pangs are felt all over the world. 
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And yes, debt has nearly quadrupled in China since 2007. But want to know what else has quadrupled in China in even less time? Its GOLD RESERVES
Despite gold's lackluster results in 2014, Chinese demand never waned. In fact, demand for gold bars, coins, and jewelry skyrocketed to historic levels.
China was stocking up on gold, unfazed and probably ecstatic about the price dips, while America was busy getting caught up in its own stock market bull run.
That's exactly how China wanted it. China's quiet gold hoarding allowed it to bolster its bid to have the yuan included in the basket of currencies that make up the IMF’s Special Drawing Rights (SDRs), according to an article by Bloomberg.

Chinese
Gold
Flawless Execution
China imported a record $70 billion of gold without sending the price of gold soaring. China finally surpassed India as the world's largest importer of physical gold.
As rumors of a global currency war heat up, China undoubtedly has the upper hand here. And it's making sure to put its money where its mouth is...
Not only is it stealthily hoarding an insane amount of gold, but it's successfully establishing a rival to the IMF and World Bank — the AIIB — which will be hugely advantageous to its own currency (the yuan) vs. the dollar.
James Rickards, author of Currency Wars, recently interviewed with Epoch Times regarding gold and how China's using the yellow metal to advance its own currency situation and the IMF to overthrow the U.S. dollar in the process.
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Earn Twice Gold's Gains
Right now, there's a rare moneymaking phenomenon in the precious metals market that's so powerful, experts named it...
Gold's "Doubling Effect."
Thanks to this unique tool, every time gold gains just 1%, you make 2%... a 100% gain pays 200%!
But you'd better hurry.
As you'll see right here, the price of gold may very soon super-spike higher than $5,000/oz!

In the interview, Mr. Rickards said he had recently met with the head of precious metals operations at the largest gold refinery in the world. And when Rickards met that man, he was very tired... he'd been racing the clock to satisfy gold demand all year long — working 24 hours a day to produce gold.
The fruits of his triple shifts are about 20 tons a week. Half of that — roughly 500 tons a year — goes directly to China. Factor in the gold China's receiving from other refineries, and we're talking about a sizable golden fortune.
Additionally, 2014 saw the largest jump in jewelry demand since 2005. From bars to bands, gold is perhaps the most prized possession. Ladies and gentlemen, gold hasn't been this hot since its historic rally of 2011...
Who Cares about the Yuan?
Although I haven't been keeping an acute eye on the yuan or renminbi, I know that bloggers have been obsessed with it lately, wondering if it will rise or fall in light of the AIIB and a transition in currency manipulation. It's interesting, for sure, but it's impossible to answer definitively here.
What is pretty definite is that China's going to be A-OK in the long run because it's stocking up on precious metals (a.k.a. the only currency that'll ever win a true currency war).
In the midst of a looming correction in the world's second-largest economy, China's doing what anyone in their right mind would do: stockpiling gold (and tons of real estate).
But China's not just taking whatever cheap gold it can get its hands on. No, it's upped its standards and given the London gold market the boot. Instead of the previous 99% pure gold 400-ounce bar, the new standard demands a 99.99% pure kilogram bar.
This seems insignificant, but it's smart. It ensures more consumers get what they want (better quality, less weight), and it's better for smuggling since the 400-ounce bars weigh about 10 kilos (25 pounds) while the new bars are just one kilogram (2.2 pounds)... not to mention they're as pure as they come.
A consequence of this seemingly subtle change is that the Shanghai Gold Exchange is on its way to taking center-stage on the world's gold trading market, replacing London.
Does it see something the rest of the world is missing?
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To be blunt, yes. It is past the speculating phase. Indeed, it is actively expecting today's crumbling fiat currency system to come crashing down.
And it won't take it lying down... that's why it's proactively preparing for the Fourth Turning — a complete reformation of our international monetary system. And it is all too keenly aware that it will be those with the most gold who will yield the most power when that day comes.
In the meantime, the U.S. will likely keep using inflated fiat currency to pay its Chinese debt in cheaper dollars. When we inflate, gold goes up. That's why China bought so much last year when gold suffered major losses — to help hedge all the cheap money we'll be paying it with, and make up for it in its gold reserves.
In hopes of sidestepping that whole process and avoiding all our worthless cash piles, China's up to something else very interesting...
Mr. Rickards explains:
What China wants is the SDR [Special Drawing Right, a type of money for governments], because it's not the dollar. It's issued by the IMF [International Monetary Fund], and China is simultaneously lobbying for more votes in the IMF.
China is trying to use its willingness to lend money to the IMF to purchase SDR notes from the IMF to give the IMF money to bail out Europe. It's trying to use that as a lever to get more votes. If it has more votes, it would be comfortable using the SDR as a reserve currency, because its use would be regulated by the membership and that would make China the second largest member after the United States.
The United States is opposing it, but Christine Lagarde [Head of the IMF], is pushing very hard to increase the Chinese role. It's a complicated global game.
If you said to me, does China want to get rid of the dollar as the global reserve currency, the answer is yes. But most people think it's that they want the yuan. They don't. It's the SDR.
So don't buy into the herd mentality that China's yuan will soon be the new global reserve currency. China's smarter than that. And we should be too.
It wasn't ever planning on using the yuan to leverage power; it's planning on using all that gold...
Farewell for now,
Brittany Stepniak Signature
Brittany Stepniak
Brittany Stepniak is the Project Manager and Editor for the Outsider Club. Her “big picture” insights have helped guide thousands of investors towards achieving and maintaining personal and financial liberties while pursuing their individual dreams in lieu of all the modern-day chaos. For more on Brittany, take a look at her editor's page.
*Follow Outsider Club on Facebook and Twitter.
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