Greece Downgraded AGAIN

December 6, 2012

Greece is the crisis that won’t go away. The hapless nation’s economic and fiscal woes are really just a microcosm of what is facing the entire European Union. Debt levels are unsustainable, spending continues to be out of control and politicians attempt to place band aids on the problems, which will only make them worse in the long run.

Somewhere at the end of all this, Europe is going to be hit hard with an unprecedented economic and fiscal crisis.

Will it be touched off by a Greek default? Some observers think so. S&P has now downgraded the country’s credit rating to “selective default,” from the already lowly CCC rating.

A Greek default will not be kind to the financial markets. This is yet another crisis from which investors must protect their wealth with gold investments.

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Standard & Poor’s downgrades world’s oldest bank to junk status

December 6, 2012

Evidently, the world’s oldest bank is an Italian house called  Monte dei Paschi di Siena.

MYM blog readers may recall that Italy is in bad economic and fiscal shape. Italy’s problems are overshadowed by those of Greece and Spain, but, like much of Europe, Italy is in trouble as well.

One sign of that is the announcement this week that Standard & Poor’s has downgraded  Monte dei Paschi di Siena, Italy’s–and the entire world’s–oldest bank, to junk status (BB+).

The bank has been around since 1472–20 years before Columbus voyaged to the New World.

A track record going back nearly 600 years is not enough for investors to depend on in today’s uncertain world. Investors would do better to depend upon an asset that has a track record of security and stability that is 10 times as long as that: GOLD.

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APPLE STOCK FALLS MOST IN 4 YEARS

December 6, 2012

In another indication that the financial markets are resting on shifting sands, the tech world’s darling, Apple Computer, has now seen its stock fall precipitously, as we reported previously. Now, however, the stock has experienced its worst decline in 4 years.

Investors should take this as a warning that they need to diversify into investments that are not positively correlated with stocks. Gold investments, such as rare gold coins, have historically moved independently of the stock market, making them an ideal diversifier for a balanced investment portfolio…

http://www.reuters.com/article/2012/12/05/us-apple-shares-idUSBRE8B40VK20121205

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GALLUP: Unemployment rate at 8.3%…

December 6, 2012

The US economy is NOT getting better. This has serious implications for the US dollar and the financial markets. NOW is the time to stock up on hard assets as a form of financial insurance. Coin Trader can advise you on the best hard asset investments for your personal goals and needs.

U.S. Unadjusted Unemployment Shoots Back Up

U.S. unemployment, as measured by Gallup without seasonal adjustment, was 7.8% for the month of November, up significantly from 7.0% for October. Gallup’s seasonally adjusted unemployment rate is 8.3%, nearly a one-point increase over October’s rate.

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http://www.gallup.com/poll/159104/unadjusted-unemployment-shoots-back.aspx


Beware of Bank Safe Deposit Boxes

December 6, 2012

Many hard asset investors store their holdings in bank safe deposit boxes, thinking that this is the most secure, private place to store rare coins and precious metals.

The video report below from ABC News should make you think twice about that mode of storage.

Coin Trader can advise you on the best ways to securely store your holdings…


Mitsui Precious Metals: Gold to Move Higher During 2013

December 4, 2012

Mitsui Precious Metals is one of the world’s largest and leading precious metals trading conglomerates. Their Strategic Analyst, David Jollie, sees the price of gold averaging $1,920 during 2013, which is more than 13% higher than its current level.

Note that Jollie says gold will average $1,920 during the year. This suggests the real possibility of sharply higher gold prices at the peak during the course of the year.

Jollie elaborates in an interview on Seeking Alpha…

http://seekingalpha.com/article/1035971-mitsui-precious-metals-jollie-gold-will-average-1920-in-2013

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The Fiscal Cliff: An Economic “Heart Attack”

December 4, 2012

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Bank of America/Merrill Lynch economist Ethan Harris is warning that the game politicians in Washington are playing ahead of the “fiscal cliff,” is dangerous and could amount to an “economic heart attack.”

Letting the country careen over the fiscal cliff as part of a bargaining strategy to push through fiscal reforms would serve as a dangerous game politicians would be playing with the economy, said Bank of America Merrill Lynch economist Ethan Harris.

At the end of this year, tax hikes are scheduled to kick in at the same time government spending cuts take effect, a combination known as a fiscal cliff that could tip the economy into a recession next year if left unchecked by Congress and the White House.

Some lawmakers have suggested Jan. 1 can come and go without a deal and address the issue by putting one another’s feet to the fire or punting on deadlines as tax hikes and spending cuts take root.

Even talk of such strategy can damage the economy.

“One of the most dangerous ideas circulating in Washington is that it is okay to go over the cliff temporarily,” Harris said a note to clients, according to CNBC.

“Threatening or actually going over the cliff will likely do serious damage to economic and market confidence. What some people are calling a ‘bungee jump’ could cause an economic heart attack.”

Investors, meanwhile, are growing increasingly nervous.

“The clock is ticking,” said Quincy Krosby, market strategist for Prudential Financial, Bloomberg added.

“The focus is on what goes on in Washington. The market will be volatile. You’ve got to be very well-hedged given that the market is so much headline-driven.”

The best hedge against uncertainty in the stock market has historically been gold.