Gold about to explode as more banks collapse?

I noticed this morning that the financial industry seem to be of one mind.

http://www.marketoracle.co.uk/

Today’s top stories

Five More Banks Go Bust, Stocks Retrace as Gold Breaks Out– 5th Sept 09 -Anthony_Cherniawski
America’s Economic Crisis, Forecasting Worse Ahead– 5th Sept 09 -Stephen_Lendman
Gold Final C Wave About to Begin – 5th Sept 09 -Ronald_Rosen

The weeks most popular stories.

Fri Robert Prechter Latest Stock Market Bearish Warning – 4th Sept 09 -Neil Beers
Thu Gold Jumps Without U.S. Dollar Drop, Separation Before Liftoff– 3rd Sept 09 -Jim_Willie_CB
1.Are We Facing a Banking Crisis? Is the Gold Price About to Explode?– Brian_Bloom

It might be a good time to open an e-gold account

http://www.egold.com/

The American Gold Eagle is currently the best selling gold bullion coin but the new Indian Head Buffalo coin is a purer coin.  The Eagle is 22-karat and the Buffalo coin will be 24-karat.  The Canadian Maple Leaf is currently the world’s best selling pure gold coin.  The Mint is hoping to capture more of the pure gold market.

In 2001, the US Mint produced the Indian Head Buffalo $1 silver coin and it was very popular.  The Mint hopes the new Buffalo fine gold coin will do as well.  No limit has been placed on the production of the new Buffalo coin and the US Mint hopes it will become a choice of gold collectors around the world.

As gold prices continue to rise and more investors from China and other Asian countries continue to look for fine gold coins to invest in, fine gold looks to be a stable investment that no one should ignore.

Are We Facing a Banking Crisis? Is the Gold Price  About to Explode?

Commodities / Gold & Silver 2009 Aug 31, 2009 – 01:39 AM

By: Brian_Bloom

FLIGHT TO SAFETY APPEARS IMMINENT

Summary

The markets appear to be anticipating a banking crisis.

If confidence is lost in the commercial banking system, the following is a reasonable outcome:

  • There will be a rush to invest “cash” money (previously held in banks) into treasury bonds backed by the government as opposed to the FDIC
  • The gold price will explode upwards
  • The US Dollar will not move inversely to the gold price. More likely, it will also rise, albeit less violently as the “safest” and “most liquid” treasury markets are denominated in US$.

When read together, the long term charts of all three investment categories are in fact pointing to the increasing probability that confidence in the integrity of the commercial banking system has been eroding.

************

In the past week, three pieces of information arrived my inbox, which led me to thinking about the integrity of the banking system:

  • The Swedish Central Bank is about to charge negative interest rates. i.e. Commercial banks who have reserves in excess of their requirements and who do not lend this money out will be penalized for not doing so. http://www.ft.com/…
  • Several articles appeared which “speculate” that up to 1,000 banks are in danger of failing and that the FDIC has insufficient reserves to cope with this. http://www.bankrate.com..
  • Mathematical modeling, based on a formula developed by physicist Cesare Marchetti, when applied to bank failures, results in the following forecast:

http://www.urbansurvival.com/blog/wp-content/uploads/2009/08/bankfail_outlook.gif

http://www.urbansurvival.com/blog/?p=1429

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2 Responses to Gold about to explode as more banks collapse?

  1. Splash says:

    Banks have earned their place on my Public Enemy list; #3. They just don’t see us as people like they use to. Insurance Companies and Lawyers are worse and, of course, my list is exclusive of government, but Banks look at us and see no heart, no soul, no face. It makes me glad that they bombed and sad that we saved them.

    http://splashinthepacific.wordpress.com/2009/09/05/public-enemy-3-banks-by-a-thumb/

    • cuthulan says:

      Hi Splash ,thank you for the comment. I agree with your opinion. Do you have a top 10 Public Enemy list posted somewhere? We have to compare lists someday 😉

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