No BS Financial Freedom .com » Precious Metals

Gold may hit $2,000 if dollar falls: Schroders

gabrielg — Tue, 10 Mar 2009 16:44:30 +0000

By Joseph Chaney, Asia Resources Correspondent

HONG KONG (Reuters) – Government infrastructure spending will drive a rebound in metals prices, while gold may reach $2,000 an ounce in the next year if the dollar falls, an executive with UK fund house Schroders (SDR.L: Quote, Profile, Research, Stock Buzz) said.

”The potential for very sharp price rises in industrial metals this year is very good,” emerging market debt and commodities product manager Christopher Wyke told Reuters.

”We think in infrastructure the cutbacks will be very limited. When a recession happens, governments in the U.S. and elsewhere accelerate infrastructure spending.”

He said that despite the global economic downturn, Asia retains its appetite for infrastructure spending, which will support prices of metals such as copper and zinc. Prices of the two metals have fallen around 58 percent and 54 percent respectively from a year earlier.

”The problems in Asia are not structural, they’re essentially cyclical — a very severe cyclical downturn,” the London-based Wyke said in an interview at his firm’s Hong Kong offices.

Wyke does not directly manage funds but oversees Schroders’ commodities fund products which hold $4.5 billion in assets, including a recently launched gold and metals fund.

He said Chinese infrastructure spending will be a key driver of metals demand and prices.

”The level of credit in China has been shrinking in the last 10 years, the banking system has been reformed, and they have $2 trillion in reserves,” Wyke said.

So, is it likely there’s going to be wholesale abandonment of infrastructure investment in China? No.”

GOLD BULL

While Wyke has backed off from his stance last June that gold could reach $5,000 an ounce over the next few years as a refuge from inflation, he still expects the precious metal to show stronger gains in the second half of 2009 if the dollar falls and inflation fears mount.

”If you saw the dollar resume its fall and maybe toward the end of this year you started seeing people worried about the inflationary consequences of U.S. government policies, then gold prices could move up very sharply,” Wyke said.

”In the next 12 months, if that were to happen and the dollar were to fall, a gold price of $2,000 an ounce is quite likely.”

Spot gold, which was trading at $937.20 around 0835 GMT (4:35 a.m. EDT) on Monday, has risen 6.6 percent in 2009 as investors seek a safe haven of value amid the global slump.

Schroders’ gold and metals fund was up 6.15 percent this year at the end of February, Wyke said. At the end of January, the fund was worth nearly $61 million, and is down 34.3 percent since its launch in July 2008. Continued…

The 11 Forgotten Laws

Peter Schiff predicts Imminent Doom – Fear And Loathing In America

gabrielg — Fri, 16 Jan 2009 17:29:45 +0000

Gold & Silver

gabrielg — Sun, 11 Jan 2009 07:10:00 +0000

I do not trust what is happening with the dollar. The Federal Reserve has continued to print more an more currency not backed by anything but people putting their trust in small green pieces of paper.

All of these government bailouts you may be hearing about…seems to me full of arrogance and hubris. All these billions of imaginary dollars printed from thin air.

Each imaginary dollar printed decreases the buying power of the money already out there. And this cycle won’t stop until people no longer put their trust in it. Eventually, the bubble will pop, and I anticipate it having a knockout punch to the economy of the United States.

Once the dollar crashes, everyone will come running to the “safe haven” of precious metals, but by then the buying power of gold and silver will have skyrocketed. Time and time again, when a government has gone off the gold standard this pattern has repeated itself.

Gold and silver will take the cake as they always do.

That is one reason why my intention is to build up a gold and silver reserve. This year, I would like to contribute a few hundred dollars to investing these metals every month. Growing this until I will eventually be converting thousands of dollars into these metals at a time. The more I collect, the stronger the magnet will be in attracting more gold and silver.

I intend to make this a solid, continuous, and ongoing habit-strengthening the holdings every month until I eventually need to store them in various third party vaults around the world.

There is going to be an immense transfer of wealth in the upcoming years, and I intend to be ready for it.

My Top 8 Reasons for Financial Freedom

gabrielg — Sun, 11 Jan 2009 00:58:00 +0000

My top 8 reasons I am choosing to be financially free right now are as follows:

1) Having more than enough money & resources to never have to work a day again in my life. I may choose to continue work, but it is because I want to…not because I have to.

2) Extensive World-Wide Traveling. I would like to be able to go on month long adventures, exploring, the planet on a whim, and any time my journey calls for more money, I will simply go to the nearest bank, and collect money from one of my bank accounts continually being filled by my passive income streams.

3) Ongoing & Coninual World Class Traing. With financial freedom, I am able to hire the world’s best mentor’s and trainers to grow from and have the time to attend all the courses, classes, workshops, and retreats that I choose.

4) Donating to charity. Being willing to embrace all the overflowing of wealth that is constantly in my life, and reaffirming it with generosity.

5) The gift of time: There is nothing greater to me than time freedom. The freedom to do with your life everything you want to do.

6) Hosting world-class events, gatherings, and parties of all kinds.Embracing the rich abundance life has provided me and finding every reason to give thanks and continue to celebrate life.

7) A paid of luxurious tropical beach house in a lush tropical beach somewhere in Costa Rica, and mountain chateu somehwere in Colorado.

Month after month I continue to get ongoing stream of income. More and more checks in the mail and deposited into my bank accounts every single week.

The Worth of a Dollar

gabrielg — Sun, 04 Jan 2009 07:41:00 +0000

If the Federal Reserve continues to just print more money out of thin air, what does that do to the value of the dollar?

Apparently that continues to lower the amount of resources you can purchase with every dollar you have in your pocket. The more that is printed, the less clout it
has in the financial world.

It cannot go on forever, and eventually it is scheduled to repeat itself. Throughout history, when a government went off of the gold or silver standard, the ones who have survived financially were the ones who held onto the precious metals.

I have about $5,395.00 saved up in my Financial Freedom Account which I have made a habit of adding to each day. The only purpose for the money in this account is to generate more money. I have been considering investing a portion of this in my Real Estate Investment Mentor, ultimately working together it should uncover a real estate deal that will more than pay for the cost.

Another thing I have been considering is to put it all into silver and gold, and just continue to build up those reserves until the market crashes. Although, I intend on growing the gold and silver reserves, I would like to do it with a separate account.

This money that is in my FFA right now can be used to do actual deals right now, not to mention all of the priceless education that comes about through more experiences.

I was studying a crash course on the patterns that economic bubbles tend to follow. It showed various market bubbles through history in line graphs, and laid them on top of each other. If the real estate bubble follows the same pattern, it appears that the real bottom of the real estate market should be somewhere around 2015.