Agnico Eagle Mines Ltd (AEM)

[NYBob]

Gold going to $7,000 in currency reset says author Jim Rickards -
Posted on 25 July 2013

Gold prices will surpass $7,000 an ounce in an inevitable global
currency reset forecast author of the new book Currency Wars:
The Making of the Next Global Crisis and MD of Tangent Capital,
said Jim Richards speaking at the Agora Financial Investment
Symposium in Vancouver yesterday.

Mr. Rickards recalled how the global currency system has been
reset three times in the past century: 1914, 1939 and 1971.
He noted that the dollar standard reigned from 1982 under
Paul Volcker's Fed to 2010.

Dollar in crisis

Now we are all at sea.
Nobody knows which currency to follow, he said.
Some economists argue that we should have multiple reserve
currencies but that is just too unstable.

His forecast is that the IMF will issue a new reserve currency
know as a Special Depository Receipt which it has actually
previously done in crisis situations in 1972, 1983 and 2009.

The US dollar could collapse much faster than you might think.
A complete collapse of confidence in the dollar is much closer
than ever.
But nobody knows exactly what the crucial threshold will be.

In order to reset the monetary system this time Mr. Rickards
argues that the gold reserves of the global central banks will
be absolutely essential with 20-40 per cent gold backing
sufficient.

That will mean a revaluing of bullion to around $7,000 an ounce
or otherwise there will not be enough of it to do the job.
Central banks will be in a position where they have to do this
rather than constantly suppress the gold price to create an
illusion of low inflation, he contends.

Timeline?

Where Mr. Rickards and the growing number of savants who argue in
favor of a reset are frustrating is that they can provide no
timeline.
Does this happen this autumn? Or in five years?

At what point do the remaining holders of US treasuries decide
that they want out?

That the point when $70 trillion in derivatives will crush the
banking system and the whole financial system will have to be
reset.

http://www.arabianmoney.net/gold-silver/2013/07/25/gold-going-to-7000-in-currency-reset-says-author-jim-rickards/

http://www.earningsimpact.com/Transcript/82316/NEM/Q2-2013-Earnings-Call

When Will The Economy Collapse?

http://www.youtube.com/watch?v=0tsUZinrCo8

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-----
When will the economy collapse?
Well in order to answer that question we have to first look at
the geopolitical variables holding the dollar up, in particular
the petrodollar.
-----
The derivatives black hole:
http://business.time.com/2013/03/27/why-derivatives-may-be-the-biggest-risk-for-the-global-economy/

America's economic death spiral: http://moneymorning.com/ob/economist-...


DEBT BOMB - The Global Financial Crisis Stripped Bare by Dominic Frisby -

http://www.youtube.com/watch?v=GXcLVDhS8fM

China Maneuvers To Take Away US' Dominant Reserve Currency Status
Submitted by ilene on 07/22/2013 15:57 -0400

CHINA MANEUVERS TO TAKE AWAY US’ DOMINANT RESERVE CURRENCY STATUS
by RUSS WINTER


“All warfare is based on deception.” – Sun Tzu, “The Art of War”
(500 B.C.)

“The message of this initiative is for China to consider whether
or not China would open up its banking system and allow the
strongest currency in the world, which is the Chinese yuan, to
be the rightful and anointed convertible currency of the world.”
– Thailand Deputy Prime Minister Olarn Chaipravat in an
interview with Bloomberg

“An international monetary system dominated by a single sovereign
sovereign currency has intensified the concentration of risk and
the spread of the crisis.” — People’s Bank of China (2009)

It should go without saying that China and Russia have designs to
end the U.S. Dollar hegemony free ride.

This is fundamental to understand and will be a game changer.

The impacts on the standard of living of these players will be
profound and especially negative for the U.S.

How and in what manner this plays out is the question.
I strongly believe that the answer lies in two parts:
letting the U.S. put a noose around its own neck and then at the
appropriate time, kicking the chair out from under it.

The first part of the operation is now advanced and is described
below.
The second part involves China and Russia preparing its relative
currencies to be accepted in lieu of dollars.
It means making the yuan and ruble at least equal to, if not
superior to, American dollars in world trade.
As you can imagine, the U.S. — a country with a debt-to-GDP
ratio approaching 110% — can ill afford this sort of challenge
to its status as a reserve currency.

China has already advanced the Yuan as a principal exchange
currency by incorporating a series of deal with other countries.
Such arrangements are hardly mentioned by U.S. financial media,
but they are going on constantly. So far, the People’s Bank of
China (PBOC) has signed nearly 2 trillion yuan worth of
currency-swap deals with 20 countries and regions, including
Hong Kong. Here’s a breakdown of happenings:

• Earlier this month, the European Central Bank announced
a large currency swap arrangement with China.

•An Asian ”renminbi bloc” has been formed involving seven
countries.

•Russia, Iran, Angola, Sudan and Venezuela have converted oil
sales to China into the Chinese Yuan.
Worldwide, we see more than 5 million barrels per day traded in
Yuan rather than U.S. dollars.

•Thechinamoneyreport.com on June 16 reported RMB-yen trade is
growing strongly a year after launch.

•BBC News, April 9: “China and Australia in Currency Pact“

•BBC News, Feb. 22: “UK and China Poised for Currency Swap Deal“

•BBC News, March 26: “China and Brazil Sign $30bn Currency Swap Arrangement“

•Thechinamoneyreport.com on June 4 reports that Singapore has
launched a Yuan clearing service.

•Although ignored in the U.S., there has been increased chatter
among foreign media about the RMB (aka Yuan) reaching safe-
haven, reserve currency status, as Asia Today reported on July
22.
I suggest that the kicking the chair out from USD hegemony
involves at least partially backing the Yuan, and Ruble for that
matter, with gold.
China’s reserve assets were 30.2% of the world total at the end
of last year.
How much of this is already in gold?

China is secretive about the number, I think it’s because it had
some catching up to do and it’s incorporating Sun Tzu-style
principles, namely deception.
The last time China revealed its gold reserve levels was in 2009
at 1,054 tonnes, which caught the market by surprise.

Another reference point is that China’s foreign exchange reserve
increased from $2.2 trillion in 2009 to $3.4 trillion today.

During that period, U.S. dollar reserves held by China fell from
69% to 54%.

If only 10% of that $1.2 trillion increase went to gold, then
let’s see … At an average price of $1,200, that would be nearly
3,000 tonnes, bringing China’s total gold holdings
up to 4000 tonnes.
Conventional wisdom would point to between 3,000 and 4,000
tonnes.

The U.S. supposedly has 8,133 tonnes in its reserves? ? ? ? ? ?

Russia has doubled its gold reserve in four years.

http://www.zerohedge.com/contributed/2013-07-22/china-maneuvers-take-away-us%E2%80%99-dominant-reserve-currency-status

VivaLasVegas420 THANKS MY FRIEND -

Fyi. do a dd....

Caledonia mining -
“Cash costs at the Gold mine are running
at around $500/oz,
which positions the company well to keep
generating cash to self-fund expansion and
pay dividends to shareholders.
CAL has more than $25 million in cash in
Western banks and NO DEBT --

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=90191693

THE HISTORY OF LAWFUL GOLD AND SILVER LEGAL TENDER AND
THE DEBT BROUGHT ON BY UNLAWFUL FIAT PAPER MONEY -

http://www.biblebelievers.org.au/monie.htm

What Gold Nationalization Really Means
Tyler Durden's pictureSubmitted by Tyler Durden on 07/25/2013 19:40 -0400

Federal Reserve Nationalization New York Times


Submitted by Simon Black via Sovereign Man blog,

Gold owners are almost universally familiar with the story of
Franklin Roosevelt criminalizing the ownership of gold back in 1933.

Executive Order 6102 was signed on April 5, 1933, and it forbade
the “Hoarding of Gold Coin, Gold Bullion, and Gold Certificates
within the continental United States.”

Roosevelt further ordered that citizens in the Land of the Free
surrender their gold to the Federal Reserve in exchange for
$20.67 per troy ounce in Federal Reserve notes.

The term gold ‘nationalization’ is often thrown around.
But remember, with nationalization, it’s the state that
takes control of an asset.

Executive Order 6012 took assets from private individuals, and
then gave those assets to a private company – the Federal
Reserve.
This isn’t nationalization.
It’s just theft.

You’d think that the entire nation would have been in an uproar.
But surprisingly, this wasn’t the case.

In fact, the Executive Order didn’t even make the front page of
the New York Times, whose main headline the day after was
“BEER LEGAL AT MIDNIGHT”.



NYT front page What gold nationalization really means

It just so happened that prohibition was starting to be repealed
right when Roosevelt’s order was going into effect.
So people were too distracted with their pent-up, alcohol-
induced euphoria to really notice.
Very clever timing.

Of course, Roosevelt was not the first, nor the last, to
confiscate citizens’ gold.
One of my favorite stories involves Charles I of England, who
commandeered 200,000 pounds of gold in 1638 as the English Civil
War was approaching.

This gold belonged to private citizens, not to Charles.
The rightful owners trusted their king and were storing their
gold at the national mint for safe keeping.

This trust proved to be misplaced.
And Charles seized the gold, calling it a ‘loan’ (upon which the
English government subsequently defaulted).

This theme is consistent across history– governments have a
notorious, unblemished track record of fleecing their citizens,
particularly in times of desperation.

History shows that the likelihood of a government pillaging its
citizens’ wealth is directly proportional to that government’s
fiscal health.

Looking back, it seems so obvious.
I’m sure the day after the bank account freeze in Cyprus earlier
this year, people were probably thinking, “Wow, I can’t believe
I didn’t see that coming…”

Nearly the rest of the West is in the same position, or worse
off, than Cyprus– overextended banking systems, interminable
deficits, unsustainable debts, and strong precedents of setting
the law aside to violate people’s freedom.

All the warning signs are there. And just as in Cyprus, or in
17th century England, it’s going to be so obvious looking back.

This is one of the reasons why it’s so important to be proactive
now and move a portion of your assets abroad where they can’t
grab it.

As an example, there’s a fantastic private, secure storage
facility here in Vienna called Das Safe that I’ve been writing
about for a long time.

Das Safe has been around for three decades.
And because they’re not connected to any bank or government,
it’s possible to anonymously rent a safety deposit box where you
can store gold.

Under current US law, this is not reportable… so you can truly
hold your savings privately, outside the banking system.

Of course, gold is just one asset to think about.
There’s another asset that I’m even more concerned about
governments stealing: retirement accounts.
More on that another time.

history often repeat itself -

http://www.zerohedge.com/news/2013-07-25/what-gold-nationalization-really-means

stay out of rothschild pawns long fingers who
copycat ussr bolsheviks -

invest in low cost Gold Mines producers -
ex.
Caledonia Mining -
“Cash costs at the Gold mine are running
at around $500/oz,
which positions the company well to keep
generating cash to self-fund expansion and
pay dividends to shareholders.
CAL has more than $25 million in cash in
Western banks and NO DEBT --

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=90191693
God Bless