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Tuesday, 01/08/2013 2:14:05 PM

Tuesday, January 08, 2013 2:14:05 PM

Post# of 5872
Caledonia Mining - Gold buying by emerging markets is
just getting started.


It will pick up steam as countries rush to protect their
respective currencies against Bernanke and the US government,
who are exporting inflation through the monetization of US debt.

Note, that many emerging market currencies are backed by
the fiat USD; so when the fiat USD money supply expands,
theirs must too or they risk currency appreciation that
would price their products out of the global market.

The Gold ownership of other emerging countries, which account
for more and more of global GDP, is negligible, but increasing.

For decades, countries have bought fiat US dollars, the world's
used to be reserve currency;
however, with Bernanke on a mission to spark the economy at all
costs and increased inflation knocking on the door,
central banks cannot afford to stand by the side, hoping and
praying the US will do them any favors.

Perhaps this is why the Federal Reserve is expected to buy
upwards of 90% of all new US debt issued in 2013.

The old buyers of US debt are not coming to the table anymore.
It quickly becomes easy to understand why central banks are
tripping over each other to accumulate as much Gold as possible
without spiking the price and giving way to a full on stampede.

Gold is the only non-manipulated currency and will be the final
equalizer when runaway inflation or failed monetary policies
finally force governments to act responsibly.

Countries that hold Gold and have a higher percentage of their
currency backed by Gold will be in far more advantageous
bargaining positions; hence the record accumulation.

The currency wars wreaking havoc across the world are only going
to intensify.
When central banks expand their money supply, by definition,
it creates inflation.


* Jim Rickards Update on the Global Currency War
http://www.bloomberg.com/video/currency-wars-heat-up-b~oebxS4Reis66fwLa2oJw.html


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Prefer CALVF Gold mining investments -

compare to ex.

The USA Failed Banks -
the list growing longer by the day -

http://www.fdic.gov/bank/individual/failed/banklist.html



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God Bless


My opinions are my own and and DD I post should be confirmed as unbiased

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