Ainslie Bullion - Daily news, Weekly Radio and Discussions

Greece - Down to the wire
Greece ended up making its latest IMF repayment of EUR750m yesterday at the 11th hour, but it was the way in which they did it which should concern everyone. They drew on their, wait for it, IMF SDR emergency reserve account to pay it! Such drawings must be repaid within a month. This seems to be the final straw for the IMF who have reportedly told the EC and ECB they will not be part of the next inevitable bailout program for Greece. Greece will seek to garner more cash reserves from local municipalities and pension funds to fund salaries and pensions for the month and incredibly it looks as if they will use further bail-out drawings to pay back the SDR funds borrowed yesterday. This is like you drawing down on your homeloan to pay off your credit card and then drawing from your overdraft to pay back the home loan, all within the same bank, just that the person is a sovereign state and the bank is the IMF. A report emerged yesterday to show how close to the wire they are with only EUR90m cash reserves left. On any level this is untenable and the implications quite severe.
 
- listen to todays Ainslie Radio / https://www.ainsliebullion.com.au/g...may-ainslie-radio/tabid/88/a/931/default.aspx

Yesterday saw the release of the World Gold Council's First Quarter 2015 Gold Demand Trends report. Their key takeaways were:


Jewellery demand dipped by 3% in Q1 2015 to a shade above 600t
Jewellery demand for the first quarter totalled 601t, a level it has adhered to reasonably firmly since Q3 2013. Demand began the year by responding, in varying degrees according to specific local market conditions, to economic growth and price movements. Of the total 601t, China accounted for 229t and India 151t.

Investment demand rose 4% as ETF inflows offset a decline in bar and coin demand
Total investment demand grew moderately to 279t in Q1, slightly above Q1 demand in both 2013 and 2014 (at 260t and 268t respectively). The first quarterly inflow into ETFs since Q4 2012 outweighed a contraction in bar and coin investment. Investment was up a considerable 63% over the previous quarter though. Of the 253t of Bar and Coin demand, China accounted for 59.7t and India 40.9t.

Central bank net purchases of 119t extend buying run to 17th consecutive quarter
Central banks and other official institutions continued their buying momentum in Q1 with net purchases totalling 119 tonnes. This was virtually unchanged compared to the same period in 2014. Diversification continues to be the primary driver for the accumulation of gold reserves.

Technology slipped 2% to 80 tonnes as longer-term substitution trend continues
Demand for gold in technological uses slipped by 2% to 80 tonnes, the lowest quarterly level in our records (back to 2000). Substitution and thrifting in this sector continue to weigh on gold demand, as manufacturers seek out cheaper alternatives.

Total supply was virtually unchanged year-on-year at 1,089t; lower recycling offset growth in mine supply.
Mine production increased by 2% year-on-year to 729t in the first three months of 2015, with growth coming from a number of markets. This was offset by recycled gold supply, which fell by 3% to 355t in Q1. Overall, this left total supply virtually unchanged at 1,089t. WGC maintain their stance that the second half of 2015 will see the start of declining mine production.
 
What the experts say
Things certainly seem to be heating up lately. We are seeing wild gyrations in global bond markets, continual disappointing US economic data making any talk of tightening seem unlikely, and gold and silver rallying strongly last week. So let's hear what a few experts had to say last week:
HSBC chief economist Stephen King is warning about the next recession. In a note to clients Wednesday, he warns: "The world economy is like an ocean liner without lifeboats. If another recession hits, it could be a truly titanic struggle for policymakers.".. "Whereas previous recoveries have enabled monetary and fiscal policymakers to replenish their ammunition, this recovery both in the US and elsewhere has been distinguished by a persistent munitions shortage. This is a major problem. In all recessions since the 1970s, the U.S. Fed funds rate has fallen by a minimum of 5 percentage points. That kind of traditional stimulus is now completely ruled out." (i.e. the very stimulus that got us into this mess trying to fix the GFC means there is nowhere to go when it crashes)
ScotiaMocatta analysts has this to say: "We are still of the view that the most bullish aspect of the gold market is that other assets are already expensive notably the dollar, treasuries and equities," .. "When these correct, as indeed may be starting to happen, then investors may look for a cheap safehaven and gold looks well placed to fill that role. With the financial system still suffering many stresses including uncertainty over Greece, competitive currency devaluation and unmanageable amounts of government debt, we feel investment demand for gold could pick up at relatively short notice." (FYI ScotiaBank has one of the worlds largest futures positions in gold and silver at present).
And finally we ended Friday's Weekly Wrap with this quote but for those who missed it Ray Dallio, head of a $150b hedge fund had this to say
"If you don't own gold...there is no sensible reason other than you don't know history or you don't know the economics of it..."
 
India v China race for gold
India is making a serious run at reclaiming its title of world's top gold consumer with official April numbers confirming the trend. Official numbers saw 85t imported in April (up 78% on last April) and after March saw the 2 fold increase to 125t and around 60t to mid May indicating a similar increase on the same time last year.
The drivers are numerous but include a strengthening economy in the world's second most populous country, a population who throughout time have seen gold as the ultimate investment. Importantly too, the reason India initially lost its top placing to China was the Government imposed restrictions to curb gold imports to defend their current account and Rupiah. You see gold is India's 2nd biggest import. But what has changed since then is their biggest import, oil, has halved in value and hence taken a lot of pressure off their current account. The Government has eased some of the measures but not the 10% duty. It appears people have stopped waiting for this to happen are piling back into the market regardless. China's Government have at the same time made it easier for their population to invest in shares at the same time as stimulating that sharemarket to bubble like conditions with cheap money and hence steering some into shares not gold.
There are 3 important factors to consider however when looking at these official numbers. Firstly, since the introduction of the restrictions there has been an explosion in gold smuggling into India and that can't be quantified but all acknowledge it is a lot. Secondly, China's consumption numbers via World Gold Council (which we reported last Friday) are well below the Shanghai Gold Exchange number we report each week in the Weekly Wrap. The SGE numbers include gold bought by Chinese banks, which as far as we are concerned is still gold consumption. Finally just take a look at the map below of population around the world. Throw in that after Asia, Europeans are the biggest buyers of gold and German's in particular one of the highest private owners per head of population in the world (and consumption has just rocketed 20% on concerns around Greece) and it all makes for an extremely compelling demand side of an already declining supply equation.

World_population_density_1994%20(1).png
 
AinslieBullion said:
India v China race for gold
India is making a serious run at reclaiming its title of world's top gold consumer with official April numbers confirming the trend. Official numbers saw 85t imported in April (up 78% on last April) and after March saw the 2 fold increase to 125t and around 60t to mid May indicating a similar increase on the same time last year.
The drivers are numerous but include a strengthening economy in the world's second most populous country, a population who throughout time have seen gold as the ultimate investment. Importantly too, the reason India initially lost its top placing to China was the Government imposed restrictions to curb gold imports to defend their current account and Rupiah. You see gold is India's 2nd biggest import. But what has changed since then is their biggest import, oil, has halved in value and hence taken a lot of pressure off their current account. The Government has eased some of the measures but not the 10% duty. It appears people have stopped waiting for this to happen are piling back into the market regardless. China's Government have at the same time made it easier for their population to invest in shares at the same time as stimulating that sharemarket to bubble like conditions with cheap money and hence steering some into shares not gold.
There are 3 important factors to consider however when looking at these official numbers. Firstly, since the introduction of the restrictions there has been an explosion in gold smuggling into India and that can't be quantified but all acknowledge it is a lot. Secondly, China's consumption numbers via World Gold Council (which we reported last Friday) are well below the Shanghai Gold Exchange number we report each week in the Weekly Wrap. The SGE numbers include gold bought by Chinese banks, which as far as we are concerned is still gold consumption. Finally just take a look at the map below of population around the world. Throw in that after Asia, Europeans are the biggest buyers of gold and German's in particular one of the highest private owners per head of population in the world (and consumption has just rocketed 20% on concerns around Greece) and it all makes for an extremely compelling demand side of an already declining supply equation.

https://www.ainsliebullion.com.au/Portals/0/contentimages/World_population_density_1994 (1).png
Click to expand...
Just look at all that grey empty space in Australia.
There are serious fortunes to be found in there.
I am a little jealous:)
 
Physical v ETF in Silver
A few weeks back we reported on silver analyst Ted Butler's assertions that JP Morgan have amassed an incredible 350m oz physical position in silver. The quote below follows on from that and we post it unedited for your consideration. For us, whether you agree with Ted or not, this trend is important to know for those considering ETF's for precious metals over owning the real thing. These facts should give cause for alarm for anyone in 'paper' silver and gold. Over to Ted
"Once again, the standout physical development [last week] was what occurred in the big silver ETF, SLV. After a one million oz deposit to start the week, close to 4.5 million oz were withdrawn from the trust (on Thursday and Friday). Particularly in light of the very high trading volume, mostly on Wednesday but extended into Thursday, the two days in which silver prices advanced the most, the big withdrawals must be considered shocking. I've been using the word counterintuitive to describe the unusual metal withdrawals from SLV on price strength and deposits on price weakness for a number of years now, but once again, that description is inadequate. Interestingly, the shocking two day withdrawal in SLV connects many things I've discussed recently, including my speculation that JPMorgan has amassed a mountain of physical silver.
Because of the unique open-ended feature of SLV (and GLD), when there is net new investor buying in SLV that causes the price to rise, the prospectus dictates that actual new metal must be deposited that day to match the amount of new net investor buying of shares. (Short selling may frustrate and prevent the deposit of new metal, but wouldn't result in a withdrawal of metal.) To keep it simple net new investor buying in SLV causes the price to rise and requires the appropriate amount of new metal be deposited to back up the newly created shares. If there wasn't net new investor buying to begin with, it is very unlikely that prices would have risen, particularly on a repeated basis (as has been the case in SLV for the past few years). Therefore, even though I am the only one raising this issue, any observer of the silver scene should be asking out loud how the heck can there be a massive withdrawal of metal in SLV on a high volume price advance.
Who would undertake such an unusual trading approach of buying shares in SLV and immediately converting those shares into metal and why? The only explanation I can come up with is a large entity seeking to accumulate silver without the accumulation becoming widely known. If the newly purchased shares of SLV weren't quickly converted into metal then it would quickly be revealed by SEC reporting requirements for acknowledging large share ownership (over 5%). Leave it in the form of accumulated shares and the buyer would soon need to reveal ownership; convert the accumulated shares to metal and no revelation is required. I continue to believe that the large buyer of shares of SLV which is quickly converting those shares into metal is JPMorgan."
 
Economic Disparity & Bullion
A few reports emerged last week that reinforce the recent findings by Oxfam which, as a reminder, found that "the world's richest 80 people own the same wealth as thepoorest 3.5 billion people. extreme inequality poses a growing threatto global security and economic growth. inAustralia. The richest 1% of Australians now owns the same wealth asthe bottom 60%."
Last week the Organisation for Economic Cooperation and Development reported that in most of the 34 countries in the OECD the income gap is at its highest level in three decades, with the richest 10% of the population earning 9.6 times the income of the poorest 10%. In the 1980s this ratio stood at 7 to 1.
Experts unanimously say this can only end badly with social revolt as it has many times before.
The clear culprit is the monetary stimulus that has flooded global markets dressed up as saving the world post GFC. We write about it regularly (QE, near zero interest rates etc). What these and other reports show clearly is that this has enriched Wall Street and not Main Street. Last week's awful Consumer Comfort and Economic Expectations data prints painted a very clear picture by the majority who can't afford to play shares and property. So whilst financial press talks of the US recovery the average American is not seeing it. We are more open about how ordinary things are in Australia and many are feeling the impacts.
Printing money and near zero interest rates hurts savers and rewards market players (the latter for now, until it doesn't).
What everyone can do right now though is buy silver and even small gold bars. When this unreal market corrects, and it will, the ordinary man holding bullion might actually have the last laugh.
Let us leave you with this quote from ZeroHedge last week
"SUMMING IT ALL UP FIRST - WE HIT RECORD HIGHS TODAY ONTHE LOWEST VOLUME OF THE YEARAS GLOBAL MACRO DATA MISSEDEN MASSE...
In the last 12 hours -China PMI Miss/Drop, Japan All Activity Index Miss/Drop, France Services PMI Miss, German Manufacturing & Services PMI Miss/Drop, Eurozone Composite PMI Miss/Drop, Chicago Fed National Activity Index Miss/Drop, Initial Jobless Claims Miss/Drop, U.S. Manufacturing PMI Miss/Drop, Bloomberg Consumer Comfort Plunge, Philly Fed Miss/Drop, E.U. Consumer Confidence Miss/Drop, Existing Home Sales Miss/Drop, Kansas City Fed Collapsed... andStocks Surge..."
 
Silver Industrial Use Growing
On Friday we wrote about current industrial solar demand for silver and the first graph below shows the phenomenal growth in other uses too but what about forward projections on silver's industrial use?

silver%20industrial%20use%202012-2015.png


You will notice that many of the uses are what you might consider essentials in the modern world. So lets look at just 2 uses going forward.
Firstly, still on solar, the graph below shows the increase in silver demand for silver up to 2012 and Friday's news shows you more recent demand.

solar%20silver%20demand.png


To put this already strong growth into perspective the following graph shows the quite extraordinary growth in solar use:

solar%20production.jpg


Another key growth sector for silver is its essential use in RFID's (Radio Frequency Identification Devices) equating to roughly 10-20% of new demand in 2015 and projected to grow 50% over the next 5 years.

RFID.png
 
Golden Life Boats on the Titanic
The chief economist of the world's third largest bank, HSBC's Stephen King released a report titled"The World Economy's Titanic Problem". In it he warns:
"The world economy is sailing across the ocean without any lifeboats to use in case of emergency,"
By this he is referring to the graph below which illustrates that the US Federal Reserve has had to cut rates by over 500 basis points to right the ship in each of the recessions since the early 1970s. He says "That kind of traditional stimulus is now completely ruled out. Meanwhile, budget deficits are still uncomfortably large,"

hsbc_fed_rates_3316421c.jpg


He goes on to say"We may not know what will cause the next downswing but, at this stage, we can categorically state that, in the event we hit an iceberg, there aren't enough lifeboats to go round."
"The world economy is like an ocean liner without lifeboats." That is, when the next recession occurs, because all the bullets have been used to recover from the last, the GFC, but with only very limited effect and also having increased global debt by 40% to a staggering $200 trillion or almost three times the size of the global economy in the process, there is nowhere to go but down.
The scary thing is the Fed keeps talking of actually increasing rates as they try to paint a rosy picture but he warns that could be the proverbial iceberg itself and states "Many including the owner of the Titanic thought it was unsinkable: its designer, however, was quick to point out that 'She is made of iron, sir, I assure you she can'."
HSBC's precious metals analysts followed up this report stating the very same scenarios outlined by Mr King would be positive for gold bullion. The analogy of gold and lifeboats is an obvious and true one. Don't be caught out trying to get your life boat when everyone is rushing for the few left.
 
Ageing and Drowning in Debt
A common theme of the challenge facing many nations economically is the aging population (see the graph below). Quite simply there will be fewer people working per those retired. This presents in a number of ways. Firstly we've reported before about the US's headline (and already terrible) $18.1 trillion in government debt really being around $100 trillion when you add the unfunded committed liabilities associated with supporting all these retirees on pensions and medicare. The other symptom is of course you have fewer people working to pay off the debt. In fact one of the world's biggest banks, Goldman Sachs warned this week that the world is sinking under too much debt. They said "The demographics in most major economies including the US, in Europe and Japan - are a major issue and present us with the question of how we are going to pay down the huge debt burden. With life expectancy increasing rapidly, we no longer have the young, working populations required to sustain a debt-driven economic model in the same way as we've managed to do in the past."
Japan in particular are a concern as it is not just aging population but a shrinking population on the back of their no immigration policy. Japan, one of if not the most aggressive monetary stimulus players, already has a debt to GDP of 245%. The OECD just warned that this could balloon to over 400% by 2040 (assuming it makes it that far).
Of course what governments are desperately trying to do is bring on inflation through more stimulus so they can try and inflate the debt away. In fact with the reality presented above that is their only way they can. That is a dangerous game when your stimulus has already created asset bubbles everywhere and is why gold wins either way. Gold loves inflation but it also is the safe haven when the stimulus to end deflation causes a crash they no longer have the tools to stop.

aging%20demographic.jpeg
 
Gold Smuggling
Since India's government increased import restrictions to defend its current account and Rupiah there have been many anecdotal reports about the rampant gold smuggling to get around official restrictive channels. What is not anecdotal is policing authorities' seizures and that just hit an all time record of over Rs10 billion in value or around 3.5 tonne for the fiscal year 2014-15. For perspective, that represents a 900% increase on the 2012-13 year prior to restrictions. Given it is generally accepted they are only catching less than 1 in 10, one can assume there was in in excess of 35 tonne of gold that needs to be added to India's already incredible 850t.

Also enjoy today's Ainslie Radio!
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$20,000 Gold v Monetary Base


Gold is an alternative currency, it is money in its most fundamental form and has been for thousands of years. So one factor many analysts watch is it's price against the supply of fiat currency, particularly the world's (current) reserve currency the US dollar. So for some, one of the most bullish setups for gold is its ratio against the US monetary base. Consider the 3 graphs below Firstly we all know, through Quantitative Easing (QE), the US has injected an unprecedented amount of 'money' into the system, indeed about as much each and every year since the GFC as it created since the Fed was formed nearly a century prior. The first graph shows this clearly..

monetary%20base%20mid%202015.png



But much of that money is just sitting in commercial banks (on their balance sheets) and shares and ironically bonds. The graph below clearly shows the former

cash%20in%20banks.png



And over that period of unprecedented fiat currency creation, real money in the form of gold has actually formed a century long low as a ratio against all that money per the graph below. In this regard analyst Ben Kramer-Miller had this to say:

"Consider that in the 1970's bull market the value of the U. S. gold hoard peaked at 5X the monetary base, or nearly 20X the current ratio, meaning that if gold were to hit the same peak we could easily see $20,000/oz. gold or higher."

gold%20v%20monetary%20base.png
 
US Shares v Gold
Lets compare very succinctly the stark difference between what's going on in the world's largest sharemarket to the world's largest gold markets:
Goldman Sach's chief equity strategist, David Kostin had this to say to clients this week - "by almost any measure, US equity valuations look expensive. The typical stock in the S&P 500 trades at 18.1x forward earnings, ranking at the 98th percentile of historical valuation since 1976. For the overall index, the aggregate forward P/E multiple equals 17.2x, a rise of 63% since September 2011, compared with the median expansion of 48% during 9 previous P/E expansion cycles.Financial metrics such as EV/EBITDA, EV/Sales, and P/B also suggest that US stocks have stretched valuations. With tightening on the horizon, the P/E expansion phase of the current bull market is behind us."
These sentiments take on greater weight when last week Nobel prize winner Robert Shiller, and co author of the now universally accept Shiller Index, said that in his opinion, unlike 1929 (pre Great Depression), this timeeverything - stocks, bonds and housing - was overvalued as all assets were in bubble like conditions after all the stimulus since the GFC.
Throw in as well that margindebt on these shares just hit a new all time high of $507 billion or 50% higher than the last bubble peak reached JUST before the GFC.
Now compare that to what the world's 2 most populous countries are doing in the graph below and, critically, note the white/grey line in the bottom section to see of late on average they are consuming basically ALL of global production.
Which of these 2 markets looks to be better value?

chindia%20gold%20demand.gif
 
Walking the (Recovery) Talk
It's been a big week of economic data. As usual we will summarise it in tomorrow's Weekly Wrap podcast. But for context before you listen to that it is worth noting the US Fed is still talking up the prospects of a rate rise this year (otherwise called "tightening" or "removing accommodation" of their stimulatory monetary policy i.e. QE and ZIRP). They selectively refer to the few good news prints and seem to ignore the predominance of bad and below expectation prints. But they are stuck in the dilemma of walking the talk. You can't keep talking up the economy yet keep interest rates near zero. The danger is they start to believe their own rhetoric and "try" it even just a little to prove something. Many believe this will trigger the next crash. One of the world's largest banks, and maybe one with a little more perspective not being domiciled in Wall Street, Deutschebank, had this to say recently
"Truth be told, we think the Fed is obliged to talk up the economy because if they were brutally honest, what vestiges of optimism still remaining in the domestic sectors could quickly evaporate. At issue is whether the Fed in particular, but the market in general, has properly understood the nature of the economic problem. The more we dig into this, the more we are afraid they do not. So aside from a data revision tsunami, we would suggest the Fed has the outlook not justhorribly wrong, but completely misunderstood. Thus, the idea that the economy is 'ready' for a removal of accommodation [raising rates], and that there is any sense in such a move from the perspective of rising inflation expectations and a stronger real growth outlook, is nonsense."
Maybe the Fed is sweating on a Greek blow up this month or escalations in the South China Sea, Yemen or Iraq to blame on not removing this stimulus that is causing huge asset bubbles all around the world.
 
Ainslie radio today ~ https://www.ainsliebullion.com.au/g...une-ainslie-radio/tabid/88/a/951/default.aspx

Crunch Point Quote of the week
Respected analyst Lawrence Williams had this to say this week.
"With the overall trend of gold accumulations by China and India together continuing to rise alongside incomes and middle class growth, we have to be getting pretty near the crunch point at which there is a serious shortage of available physical gold - some think we are there already. Whether gold prices can be controlled at current levels under these circumstances will become increasingly difficult. And with China in particular seeking to tie down more gold supplies through Chinese company acquisitions of, and major stakes in, other gold producers outside their own country and creating gold-positive initiatives like its proposed $16 billion 'Silk Road Gold Fund', it's hard to see the gold price being held down within its current trading range much into the future."
 
Greece & 30 June
Greece continues to pull proverbial rabbits from hats on its debt issue. Friday was the deadline for EUR300m of the EUR1.6b due this month and they became the first country to miss an IMF debt repayment since the 2nd World War. But they are clever They discovered a mechanism buried in the IMF docs, not used since 1980's (by Zambia), that allows them to bundle all the payments due this month until the end of the month. So unable (or unwilling) to find the funds to pay EUR300m now, they will now somehow fund EUR1.6b in a few weeks or reach an agreement on terms for extensions, something the IMF has never done.
The other threat escalating is the Greek banking system itself as Greeks are withdrawing cash deposits at an alarming rate, averaging EUR400m per day and reportedly EUR700m on Friday's deadline. What makes that even more dangerous is that Greek banks already rely on nearly EUR81b in "Emergency Liquidity Assistance" from the ECB. That was about 60% of total deposits over a month ago and will be much higher now after all of these withdrawals. Without that assistance the banks would fail and the new "bail in" provisions would see another Cyprus style use of deposits to bail out the banks.
To give the new 30 June deadline a little more gravitas, renowned financial analyst Martin Armstrong has for some time now been calling a Wall Street crash between 30 June and 2 July according to his chart based analysis. The Greeks just gave that date the geopolitical trigger
 
The Grand Scale of China

People often speak of the mind boggling scale of China's population and its move from low to middle class. We've seen to incomprehensible scale of construction to house them in new cities, we've seen China over take India as the world's largest consumer of gold, and now we've seen what happens when the Government "invites" its population to speculate in its languishing sharemarket. So whilst its economy dishes out the worst economic data in 3 decades off declining exports, real estate on the other side of its bubble and (as Australia knows too painfully well) construction relatively halted we get the Shanghai Stock Exchange shooting up 140% since the first PBOC rate cut less than a year ago. It now has a market cap of around $10 trillion, twice that of Japan's and over 13% globally. There are a couple of takeways for gold firstly it is another clear illustration of the power of China's increasingly affluent population, a population that dearly loves gold. Secondly this is setting up another epic asset bubble (in a world full of them) that upon it bursting will see a flight to the safe haven of gold. This graph is breathtaking.
china%20shares.jpg
 
Forget the USA, that Chinese middle-class, full of nationalistic pride are the biggest threat to the communist party.

If they're ever told they have to go back to the boring countryside to return to the poor farm life of their parents... they're gunna start demanding why... if China's so great... they have to give up so much?

They'll tear those cities apart... and the party members along with them.
 
Morgan Stanley calls AUD 62c
Morgan Stanley shot a stark assessment of the future across Australia's bow yesterday predicting the Aussie Dollar will drop to 68c by the end of this year and drop even more in 2016 to just 62c. They are also predicting the cash rate will be cut to 1.75% in the fourth quarter of this year as Australia launches fully into the global currency war that has been raging since the GFC. Macquarie Research have stated we are unlikely to see any increase in rates until at least 2018.
The implications for gold & silver are essentially 2-fold. Firstly as we've covered many times, a drop in the AUD means a proportionate increase in the price of gold & silver in Australian dollars (from the current 77c to 62c would see a 24% increase in the AUD value of your gold & silver without any change in spot price). Buy your gold & silver now, at both a relatively low spot price and prior to further falls in the AUD and you stand to win on both spot price increase and AUD value increase the proverbial double whammy. Secondly, as long as somewhere else in the world doesn't start the crash first, Australia could see an ultra low interest rate fuelled surge in property and shares creating non fundamental based asset bubbles that will crash harder sooner. Getting your gold & silver now at these low prices puts in place your insurance for that crash, and insurance that could pay up big as it's done in previous crashes.

Check out our lovely Silver Stackers :)

[youtube]http://www.youtube.com/watch?v=sBtZwwEARe0[/youtube]
 
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