Dr M Khalid's global village blog

  In my opinion, gold is important to buy as it is the only liquid defence against inflation. People who took pension schemes 15 to 25 year back are finding the monthly pension amount to have far less buying power than expected. If that amount was put in gold gradually, instead of investment in pension schemes, they would have been spending out of their gold savings and have considerable wealth in the form of gold.   In September 2009, when gold was around $1000,  technical analysts on www.seekingalpha.com , a credible website for market movements, predicted gold to go to 1500 per ounce (Rs 25000 per 10 gm). In the same article, they also forecast it to go to 3000 by 2015,2017 Excerpt: As we look ahead over the next 5 years, with all of the money being printed worldwide, expect inflation to rear its ugly-head once again, a catalyst that could very well lead to the parabolic stage for Gold's bull market, where it goes to 3000 or even higher by 2015-2017. W...

Now removed from their site but searchable in google: search' m k munir silver' http://www.google.co.in/search?sourceid=chrome&ie=UTF-8&q=m+k+munir#hl=en&sclient=psy-ab&q=m+k+munir+silver&oq=m+k+munir+silver&aq=f&aqi=&aql=&gs_l=serp.3...38447l40210l0l40444l7l7l0l0l0l1l1460l3172l2-1j4j7-1l6l0.frgbld.&pbx=1&bav=on.2,or.r_gc.r_pw.r_cp.r_qf.,cf.osb&fp=e2c377401489ff77&biw=1366&bih=653

Better see the whole clip, if you are not patient, see from time 4:15. http://www.youtube.com/watch?v=0UEYa3y7SsE&feature=g-vrec&context=G26ba4b8RVAAAAAAAABQ

Why gold is heading on up A $3,000 price tag would have seemed farfetched a decade ago, when the price was around $300, or even when gold first crossed $1,000 an ounce in 2009. But the political and economic uncertainty pushing gold higher isn't over, because debt and spending problems around the developed world look so entrenched. Is gold really a safe haven? JPMorgan Chase analyst Colin Fenton just predicted gold could spike to $2,500 an ounce over the next four months. And Tom Winmill, who manages the Midas Fund (MIDSX -1.55%), thinks gold could trade as high as $2,200 next year, largely due to national budget issues and economic uncertainty. Then in early 2013 after the U.S. presidential elections, an ongoing inability to deal with national spending and debt issues may push it even higher, he believes. Winmilll won't put a number on how high a budget crisis at that point would drive gold. But think of it this way: To get to $3,000, it takes a spike of less than 30% from his...

Demand for jewelry was the biggest contributor to gold demand, accounting for 54 percent of the total. That’s a 17 percent rise despite gold prices jumping 26 percent in many currencies. Read full at: http://www.usfunds.com/investor-resources/frank-talk/?i=5048

India: The World Gold Council (WGC) research showed that cumulative annual demand for gold in India would increase to excess of 1200 tonnes or nearly Rs. 250 crore at current price levels, a WGC statement said on Thursday. “In 2010, total annual consumer demand reached 963.1 tonnes. India’s continued rapid growth which will have significant impact on income and savings, will increase gold purchasing by almost 3 per cent per annum over the next decade,” the statement pointed out. Read full at: http://andhrabusiness.com/NewsDesc.aspx?NewsId=India%E2%80%99s-annual-gold-demand-to-touch-1-200-tonne-in-2020-WGC.html China: Gold investment demand in China is likely to top a record 200 metric tons this year, the World Gold Council said. The country’s investment demand surged 70 percent in 2010 to an all-time high of 187 tons, said Albert Cheng, the Far East managing director at the World Gold Council. China’s “investment demand has picked up exponentially,” Cheng said yesterday in an intervie...

See on youtube: Gold buying level when you should buy for January to March 2012 http://www.youtube.com/watch?v=ZwCpE0yegOg

History has taught us that certain assets perform better during inflation, while other assets thrive in a deflationary environment. There is a common perception that hard assets and commodities do well during inflation and poorly in deflation, whereas and bonds and cash have contrary performance. However, it is a misperception to lump gold into the hard assets category since it performs equally well during deflation. Gold is a monetary metal with unique characteristics that preserves its purchasing power both during high inflation and high deflation. This is because gold offers protection both against depreciating currencies as well as deflationary busts, bank-runs, insolvency and other deflationary scenarios since it does not have any counterparties. You will see that gold outperformed virtually all other asset classes both during times of great deflation, between 1929 and 1940, as well as during times of great inflation, during 1968 to 1980. Government bonds did reasonably w...

22 Jun 2010 The World Gold Council in its June 2010 update of World Official Gold Holdings increased the gold reserves held by the Saudi Arabian central bank to 322.9 tons (10.38 million ounces). This is more than double the previously reported 143 tons of reserves. In a footnote to this report, the WGC states "Gold data have been modified from First Quarter 2008 as a result of the adjustment of the SAMA's gold accounts." It is possible that the total amount of gold held by the Saudi Arabian government has not really changed, but has merely been reclassified from other accounts. However, initial attempts to gain further information on this point were not immediately successful. With the new reported gold reserves, Saudi Arabia's central bank now ranks 16th, ahead of the United Kingdom, Spain, Austria, Belgium, Singapore, and Sweden. Only 13 other national central banks, the International Monetary Fund, and the European Central Bank have higher reported reserves. ...

Utah , a state in the USA Passes Bill Recognizing Gold, Silver as Legal Tender Utah took its first step Friday toward bringing back the gold standard when the state House passed a bill that would recognize gold and silver coins issued by the federal government as legal currency. The House voted 47-26 in favor of the legislation that would also exempt the sale of gold from the state capital gains tax and calls for a committee to study alternative currencies for the state. The legislation now heads to the state Senate, where a vote is expected next week. Under the bill, the coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative. If the bill passes, Utah would become the first of 13 states that have proposed similar measures. The others states are Colorado, Georgia, Montana, Missouri, Indiana, Iowa, New Hampshire, Oklahoma, South Carolina, Tennessee, Vermont and Washington.  Critics of the gold standard say it limits countries...

  DECEMBER 19, 2011, 3:37 P.M. ET   It's been a somewhat turbulent year for precious metals in 2011, but analysts are predicting that gold and silver prices will make solid gains in 2012 as both move back into favor with investors as alternative stores of value. Market participants, such as U.S. investment bank Morgan Stanley, now cite gold as their top commodity play for 2012, due to the uncertain macroeconomic environment. Many analysts predict the muddied global economic outlook will boost gold prices to all-time highs next year, with a break above $2,000 an ounce for the first time widely expected. Demand for safe assets will re-emerge on concerns over the health of the euro-zone and U.S. economies, they predict, while threats to major currencies like the dollar and the euro, from potential new quantitative-easing measures and the euro-zone debt crisis, will also push investors toward gold. The prospect of another year of low or negative real interest rates in devel...

  From The guardian www.guardian.co.uk Thursday 2 December 2010 12.30 GMT   For decades, the world's banking system has been on a fiat currency standard that has led to banks that are "too big to fail". They have overreached their remit of providing loans and have leeched into the political system, using our money to change the political agenda in ways that boost bank management's compensation over the interests of their depositors.   Over the past 11 years, the Gata ( Gold Anti-Trust Action ) committee   has worked to reveal the silver/gold price suppression scheme; thanks to whistleblower Andrew Maguire in London, an investigation has been opened. As part of the ongoing   exposé , it has now   become clear   that JP Morgan is sitting on what is estimated to be 3.3bn ounce "short" position in silver (which they have sold short, meaning they don't own it to begin with) in an attempt to keep the price artificially low in order to keep the relati...

JP Morgan has made a MASSIVE adjustment of PHYSICAL SILVER into its REGISTERED VAULTS,moving over 1 MILLION OUNCES from eligible into REGISTERED OVERNIGHT! - in simple words: people are demanding physical silver instead of certificates. For those inquiring as to the significance of an inventory adjustment from eligible to registered vaults, please see The Doc's explanation of registered vs. eligible COMEX categories for a full understanding of the implications. COMEX SILVER INVENTORY UPDATE 11/16/11 *Brink's received a deposit of 81,297 ounces into eligible vaults *Brink's also had a withdrawal of 76,253 ounces out of eligible vaults *The Delaware Depository adjusted 2 ounces out of eligible vaults *No Changes for HSBC *JP Morgan adjusted 1,103,280 ounces out of eligible vaults, and into registered vaults. JPM's registered inventories TRIPLED from 557,265 ounces to 1,660,545 ounces on Tuesday! Is The Morgue preparing for substantial delivery demands for December? The s...

A Minimum of 8 gram can be bought costing about Rs. 2800 from the National Spot Exchange http://www.nationalspotexchange.com/ It is a reliable source of gold which is certified by them. We can choose to take physical delivery or let them keep it with them on our behalf which we can request to get at anytime. This saves us from the worry of where to keep the precious metal gold. the other forms of profit makng through investing in gold are not reliable. see the image below. click on the image to enlarge. The image is from the Gold investment option offered by HDFC bank.

The world too is seeking more monetary security in gold, buying 919.8 tonnes of the shiny metal worth $44.5 billion in the second quarter of 2011. It was the second-highest ever quarterly value recorded, says the latest World Gold Council's Gold Demand Trends (GDT) report released in August. It was fractionally below a record $44.7 billion in the last quarter of 2010 On September 25, China joined the United States, Germany, Italy and the United Arab Emirates, in having ATMs that dispense bullion and gold coins. In Beijing's 800-year old Wangfujing shopping district, buyers can now use bank cards and cash to induce the machine to pop out certified gold.   A scanner attached to the ATM recognizes the two-dimensional bar code in each gold bar or coin dispensed. The scarlet and yellow ATM with a touch screen dispenses gold bars and coins of various weights. Prices are based on current market rates and updated every 10 minutes.   Each withdrawal at the Wangfujing ATM is capped a...

Gold will remain rising in the long term. In the very short perspective, we can wait to buy gold till it rises above  $1650. After crossig that level, it is expected to reach $1900 soon. To view the price viist:  www.goldprice.org In Indian rupees wait to buy gold till it rises above  30000 per 10 gram. After crossig that level, it is expected to reach 32000 soon.  Since there is no major currency in the world now to trust, Gold and silver are the only safe investments so it is bound to keep rising. For factors which are causing the rise, see my previous posts by clicking the gold and silver label in the menu. To read the step by step creation of the current global problem: http://drkhalid.blogspot.com/2011/12/global-financial-crisis-explained.html -- ---- regards M Khalid  Munir, Hyderabad, India

On one side of the Atlantic, the eurozone debt crisis has spread to the countries that may be too big to save - Spain and Italy - though RBS thinks a €3.5 trillion rescue fund would ensure survival of Europe's currency union. On the other side, the recovery has sputtered out and the printing presses are being oiled again. China, Russia, Brazil, India, the Mid-East petro-powers have diversified their $7 trillion reserves into euros over the last decade to limit dollar exposure. As Europe's monetary union itself faces an existential crisis, there is no other safe-haven currency able to absorb the flows. "It is very scary: the flight to gold is accelerating at a faster and faster speed," said Peter Hambro, chairman of Britain's biggest pure gold listing Petropavlovsk. "One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat cur...

A war-mongering U.S. government could be less than 18 months away from decimating the last 5% of value left in the dollar, says Richard Maybury, the author of the U.S. & World Early Warning Report. Until some new exchange-traded-fund-like basket of natural resources provides a store of value, this "juris naturalist" has some advice about how to protect your wealth during the coming collapse. The Gold Report: Richard, last month, you made a presentation at the Casey Research/Sprott Inc. "When Money Dies" Summit entitled "The War that Will Kill the Dollar." You explained that the corrupting influence of power had sent our country's leaders shopping for war, disregarding Westphalian respect for sovereignty and hastening the collapse of society. What are the signs that we are reaching a critical point? And, is there any way we can change course? Richard Maybury: You can see the signs very clearly in the Middle East and North Africa. The Federal govern...

The Gold Anti-Trust Action Committee (GATA) is an organization dedicated to investigating and proving its allegation that the quantity of gold held and traded by the world's central banks, international bullion banks and futures exchanges is significantly overstated and that a scheme analogous to the defunct London Gold Pool keeps the price of gold artificially low.From:http://en.wikipedia.org/wiki/Gold_Anti-Trust_Action_Committee For years there have been whispers that you may have heard about possible government manipulation of the gold market. No one has ever been able to conclusively prove the allegations that central banks, the Federal Reserve, the London Bullion Association, and the so called giant bullion banks all collude together to keep the price of gold artificially low.From: http://www.wealthbuildingcourse.com/gold-antitrust-action-committee.html http://gata.org/ http://gata.org/about The Gold Anti-Trust Action Committee was organized in the fall of 1998 to expose, oppo...