Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Stock Market Investors’ Limitless Risk Appetite - 27th Jan 21
3 Dividend Paying Stocks to Ride the New Housing Boom - 27th Jan 21
Biden Seeks Huge Spending, Globally Coordinated Tax Hikes - 27th Jan 21
Will Inflation Make Gold Shine in 2021? - 27th Jan 21
Amazon AI Stocks Investing Analysis 2021 - 27th Jan 21
Why You Shouldn’t Get Excited About Gold Price Mini-Rally - 26th Jan 21
The Truth About Personal Savings Everybody Should Know and Think About - 26th Jan 21
4 Economic Challenges for 2021 - 26th Jan 21
Scan Computers 2021 "Awaiting Picking" - 5950x RTX 3080 Custom PC Build Stock Status - 26th Jan 21
The End of the World History Stock Market Chart : Big Pattern = Big Move - 26th Jan 21
Stock Market Recent Sector Triggers Suggest Stocks May Enter Rally Phase - 26th Jan 21
3 Top-Performing Tech Stocks for 2021 - 26th Jan 21
5 Tips to Manage Your Debt - 26th Jan 21
Stock Market Intermediate Trend Intact - 25th Jan 21
Precious Metals Could Decline Before their Next Attempt to Rally - 25th Jan 21
Great Ways of Choosing Good CMMS Software for a Business - 25th Jan 21
The Dark Forces behind American Insurrectionists - 25th Jan 21
Economic Stimulus Doesn’t Always Stimulate – Pushing On A String - 25th Jan 21
Can Karcher K7 Pressure Washer Clean a Weed Infested Driveway? Extreme Power Test - 25th Jan 21
Lockdown Sea Shanty Craze - "Drunken Sailor" on the Pirate Falls Crazy Boat Ride - 25th Jan 21
Intel Empire Fights Back with Rocket and Alder Lake! - 24th Jan 21
4 Reasons for Coronavirus 2021 Hope - 24th Jan 21
Apple M1 Chip Another Nail in Intel's Coffin - Top AI Tech Stocks 2021 - 24th Jan 21
Stock Market: Why You Should Prepare for a Jump in Volatility - 24th Jan 21
What’s next for Bitcoin Price – $56k or $16k? - 24th Jan 21
How Does Credit Repair Work? - 24th Jan 21
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Greece isn't the problem, Italy is!

Interest-Rates / Global Debt Crisis Nov 05, 2011 - 11:46 AM GMT

By: Bob_Kirtley

Interest-Rates

Despite surviving a confidence vote (153-145)on Saturday which helped calm a revolt in his Socialist party, this is a hollow victory for the Greek prime Minister, George Papandreou

However the opposition leader, Antonis Samaras, who had demanded Papandreou resign to make way for a new government which would include members of any political party is non to pleased, as his proposals were rejected. 


Sooner or later general elections will be required in order to allow someone with the backing of the people, to take charge and make crucial decisions.

As we see it, the importance of this Greek tragedy is over shadowing a much larger problem, which is the financial mess that Italy now has to resolve.

Italian Prime Minister Silvio Berlusconi was hanging on to power on Friday despite the current rebellious nature of his own party, as they push for action regarding the growing economic crisis. It is alleged that Berlusconi has already lost the numbers he needs to survive as prime Minister of Italy.

The warning signs are in the yields. During Friday's sell-off of Italy's bonds, the 10-year yields for were driven to their highest levels since Italy changed over to the euro, hitting 6.40%. This is something that we have mentioned from time to time as it is a problem that really could be too big to bail, resulting in absolute calamity for the financial markets, the euro, world trade and could be the death of an already fragile recovery.

The bottom line to all of this is that fiat currency is worthless and is currently looking for somewhere to die. Hard assets will retain their value, at least to some extent, as the euro, dollar, pound, you name them, fall from grace.

We have made our survival plans which are firmly rooted in the gold and silver space.

Gold and silver are holding up well, with gold trading around the $1754/0z level and silver trading around the $34.00/oz level this week.

Our projections for gold to trade at $2000/oz this year remain in place regardless of the battering that we are going through.

Volatility is the order of the day and will get worse, shaking out those who have not the stomach for such a ride. The only certainty that we can see is that the oscillations in all sectors will become wilder, as trigger happy traders move at the push of button on news, rumour, gossip, white noise and their very own hunches, as they look to make a buck.

Start your survival planning today, even though you maybe cash constrained, look to ways to reduce your everyday expenditure in order to generate a little capital. Use that capital to acquire assets of value. Our preferred strategy remains unchanged and is prioritized as follows:
  • Physical gold and silver
  • Associated mining stocks
  • Occasional trades in the options market 

There is a general consensus regarding investment whereby a small percentage of your wealth, say 5% to 10%, should be in precious metals. As good as this advice might be, we can only ponder where the lion's share of our wealth would reside. None of the alternative market sectors appeal to us. We are extreme in this respect, and we own no other stocks, outwith the metals sector. Our stance is far too extreme for most people, but this is our fight and we must set our defense accordingly. We all need to take stock and implement plans that are unique to our own predicaments and strengths. We expect those who start now to fair better than those who remain oblivious to the rather grave difficulties that lie ahead.

Chin up and have a good one. 

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

DISCLAIMER : Gold Prices makes no guarantee or warranty on the accuracy or completeness of the data provided on this site. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This website represents our views and nothing more than that. Always consult your registered advisor to assist you with your investments. We accept no liability for any loss arising from the use of the data contained on this website. We may or may not hold a position in these securities at any given time and reserve the right to buy and sell as we think fit.
Bob Kirtley Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


05 Nov 11, 19:28
5-10% rule?

"There is a general consensus regarding investment whereby a small percentage of your wealth, say 5% to 10%, should be in precious metals."

No, I don't think that is the consensus. That is the opinion of some armchair "analysts". Specifically it is Nadler's long standing view. That of course is a rubbish stance! What can 5-10% do to protect one's wealth?

An "analyst" recomemending a 5-10% holding is usually a perma-bear who only recommends that because he is trying to cover his arse in the event that gold shoots up and he might otherwise be crucified for being a bear who got it wrong. And "analysts" like Nadler has a compulsion to want to be right all the time.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules