Silver Gets AAA Rating

By Dr. Jeffrey Lewis
www.silverseek.com

If bullion or any hard asset were to be compared to a debt security there is no reason it wouldn’t be triple-A.  Consider that a bet on bullion is essentially a bet on a future payoff.  This future payoff, which is hopefully more than the current purchase price, is cemented by indirect future cash flows.  Future inflation should give lift to any hard asset.

If the ratings agencies can comfortably assign a triple-A rating to any printing press, it should be clear that theoretically this rating should extend to hard assets.  Not only are hard assets tangible, always valuable, and historically understood to keep pace with inflation, but they’re also guaranteed to be deliverable.  There’s no risk in turning over fifteen, twenty dollar bills for a stack of silver bullion.  On the contrary, there is significant risk to turning over the same $300 for slightly more than $300 in the future.

This basic tenant of investing should not be lost for the purposes of greater sophistication.  Investors who want to realize a future outcome today with the greatest possible safety should turn to silver.

LINK...
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Hmmm, I wonder how these Ratings Agencies get paid in the first place?   BK

Gold and Silver Financial Review 06/14 by Gold Radio Cafe | Blog Talk Radio

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Deutsche Bank Opens $9 Billion Gold Vault in Singapore

Deutsche Bank’s customers will now be able to store physical gold at the bank's new vault in Singapore that can hold up to 200 tonnes of gold bullion, worth about $9 billion at current prices.

Officially opened on Monday at the Singapore FreePort, the storage facility located at aims to capture the rising demand for bullion in Asia, Reuters reports.

The institution began accepting bullion for the new Singapore vault over three weeks ago, joining other gold storage facilities in the country run by JP Morgan and Malca-Amit, among others.  LINK...
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Do you really think Deutsche Bank would be doing this because the bull market in gold is over? We have not even begun the manic phase in gold yet. Just ask yourself how many people you know own gold bullion, and have over 20% of their portfolio in gold? This recent correction is par for the course and an invitation to "BUY LOW."  BK

Roubini vs Rickards on the Gold Argument

Kitco News

James Rickards on gold.  LINK...

Bloomberg News
Federal Reserve Bank of St. Louis President James Bullard, who has voted this year in favor of maintaining stimulus, said inflation below the central bank’s 2 percent target may warrant prolonging the “aggressive” use of bond buying to spur growth and bring down unemployment.   LINK...
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They say QE adds liquidity which greases the wheels of capitalism, however when the wheels of capitalism are broken you end up just spinning your wheels and going no where. The end result has always been hyperinflation and a loss of freedom and liberty. How can you maintain a 2% inflation target and print money at the same time? Only in Wonderland.   BK