Debasement of Canadian Currency - Part 1

In 2012, the Canadian Federal government decided to pull the plug and stop minting Canadian pennies.  Coincidentally in the same year, the benevolent Royal Canadian Mint (a crown corporation, that is a corporation owned by the Federal government) changed the composition of Canadian Toonies and Loonies, going from coins comprised of primarily of copper and nickel, to coins primarily composed of stainless steel. This represents the latest link in a long chain of currency debasement that has lead to the degeneration of the Canadian dollars purchasing power and, in my opinion, the degeneration of Canadian society that is dependant upon the dollar to conduct commerce.

The Long Gun Registry Was Bad... This Was Worse

The Canadian Long Gun Registry epitomizes everything that is wrong with the entire system of Federal Governments.

While there are countless arguments on both sides for and against the Long Gun Registry, perhaps the most important two in opposition to it are:

1.  That the idea was fundamentally based on government misleading to the people (lies)
2.  That the implementation of it shows a flagrant disregard for the cost it imposed on the people (theft).

Precious Metals Weekly Analysis - Week 10 - 9 March 2012

I'm sorry I'm late this week and I'm breaking format.

I FINALLY got a chance to spend some time in my "man-cave" and I've been spending a LOT of time in there this weekend.  I'm quite proud of myself, but I'm STILL not in a state where I can reload... oh well..

I'm just going to put the charts up without much analysis.  I hope you can forgive me - leave a comment if you want my opinion on something or hit up BrotherJohnF blog's at brotherjohnf.com

Silver:

 We saw a breakdown through the primary uptrend I've been watching - and a dip below the 200 day moving average.  Both of which I bought into.  Watching this weakend trendline but still keeping some powder dry for a big pullback below $29.

Gold to silver ratio:

Same sort of story, saw a weaking of the primary trendline, but still no sign of a big reversal.

Gold testing it's 200 day moving average is a big deal and a good indicator to take a nibble if you can.  I actually bought a fractional coin for the first time... a Swiss 20 Franc gold coin.

Platinum, nut much to say...

Capitalism is Magic: Putting Your Hoof Down

This weeks episode of My Little Pony: Friendship is Magic highlighted Fluttershy with Pinkie Pie and Rarity in substantial supporting roles.

Precious Metals Weekly Analysis - Week 9 - 2 March 2012

Wow... a lot happened this week.  Bernanke came on and was called a thief and liar by Ron Paul (go Ron Paul!).  Silver and gold got smashed as he did it.  There was a big runnup the day before though.

One very good thing to see is BrotherJohnF, a Youtube silver analyst opened up a forum on his blog.  To any CGN'ers out there who still read these things, if you want to hear my ban-worthy rantings, you should troll his forum too.  It's a pretty happening place!  Check out his blog too, BJF is an awesome guy and his analysis can't be beat.

Hello to any BJF'ers out there :)

http://www.brotherjohnf.com/forum/

Harbl the Cat's Rules for Trading Precious Metals

These are my personal rules for buying, selling, and swapping precious metals.  They're like the pirate code: they're more like "guidelines."  As far as I can tell, provided the precious metal bull market is in tact, I think these rules are valid.

I develop these rules as I make mistakes or smart decisions personally (mostly from mistakes).  Your mileage may vary in using these rules, but I post them here as a personal reference and in the hopes it may help educate you if you decide to invest in precious metals.

Gold to Silver Ratio - Part 1

The gold to silver ratio (or GSR, as I call it) is the ratio of how many ounces of silver an ounce of gold can be exchanged for.

It stands to reason that the lower this ratio is, the less silver an ounce of gold can be traded for (or the more gold silver can be exchanged for).  Likewise, the higher this ratio is, the more silver an ounce of gold can be traded for (or the more silver gold can be exchanged for).

It's common knowledge that both metals have been in a bull market since around 2001.  For silver specifically, it reached it's lowest point in November 25th, 2001 at $4.00 / oz.  A few months later, silver hit a peak at $4.87 on Jan 6, 2002.  A few months later, on July 14th silver hit another peak at $5.15.

On an unrelated note, as a Private in the Canadian Forces reserves back then, my daily salary could have bought me just under 16 ounces of silver.  11 years later, as a civilian professional software engineer, my daily salary can buy me about 5 ounces of silver, even though in dollar terms, my salary has roughly tripled.  Silver in the same time has increased around 6 times... good thing I was buying mutual funds back the... oh wait... most of them only were up 10% in the same time period silver was up 600%.

Precious Metals Weekly Analysis - Week 8 - 24 Feb 2012

Big moves this week... let's just go right into the charts

Alert: 23 Feb Silver Breakout Update

Silver had a huge breakout today, it breezed past a lot of resistance, and for me most importantly, flew past the 200 day moving average.

If I did not own an ounce of silver, I would be buying like crazy right now, at $35.41 and would probably keep doing so all the way up to at least $50.

If I felt comfortable with the position I had built up from the September smack-down onwards, I would be a bit more tempered in my response and wait and see and only get in when the price touches the 200 day moving average or better yet, the long term support trend-line I've mentioned in many of my previous posts.

Is this the start of the big run up to $50, then $60, than $100, then $300?  I don't know.  I hope so.  My gut is telling me we're either out of the woods of this pull back or darn close to it.  I hope any of you reading this have the stomach to ride this one out :)

My gut is still telling me a Greek default or American war against Iran could cause the price to pull back.  I don't know though.  Good luck, silva stacka's!

Capitalism is Magic: A Friend In Deed

Let me start by saying that I am totally rocking out to Pinkie's new song "Smile, Smile, Smile."  I'm a but upset that I didn't hear about it earlier given that it was leaked in November.  Oh well... I can't wait until Sim Gretina remixes this:

Precious Metals Weekly Analysis - Week 7 - 17 Feb 2012

$80/oz Silver: Does the Royal Canadian Mint Know Something We Don't?

Last year, the Royal Canadian Mint started selling commemorative coins stamped with a face value of $20 containing 1/4 oz of 99.99% fine silver to Canadian residents for a price of $20 per coin (limited 3 per household).  The RCM has since followed up with 2 releases of the same kind of coins with different designs.

How to Buy Physical Precious Metals Part 2: National Government Mint Bullion

Investing Strategy

I am a proponent of maintaining 2 positions in physical silver: a core position, for which no dollar amount is too much to either buy or sell and an investment position which is purely intended for taking profits and procuring other assets.

Capitalism is Magic: Hearts and Hooves Day

My apologies for being late this week.

How to Buy Physical Precious Metals Part 1: Numismatics and Collector Coins

Investing Strategy

I am a proponent of maintaining 2 positions in physical silver: a core position, for which no dollar amount is too much to either buy or sell and an investment position which is purely intended for taking profits and procuring other assets.

Precious Metals Weekly Analysis - Week 6 - 10 Feb 2012

Weekly Video Recommendations

Charts


Gold

Sorry - down 0.2% not $

Silver

On silver, one point to note is the April and Sept 2011 smackdowns from top to bottom were about a 30% percentage drop.

A 30% percentage drop from the present closing price of $33.55 is $23.49.  I'm not saying that WILL happen.  But having happened twice in the past year, I think it's well worth keeping some powder dry and have a website like silvergoldbull.com bookmarked in case you see that price sometime overnight.

Gold to Silver

Platinum

Gah!  That's supposed to say "up 2.3%"

 

I think the big news from the week was the CME LOWERING marging requirements for metals contracts - which as Zero Hedge indicated is "short term bullish," but when those margin's get hiked again, I think we'll see the metals fall through the floor.

Never a dull moment in the precious metals markets - but February is shaping up to be exciting, if a little tense.

What do you think.  How are you feeling about the metals markets right now?  Anything you want me to research, write about, do a little jig or PMV video about?

Capitalism is Magic: Read It and Weep

There really weren't any capitalist or libertarian undertones in this weeks episode of MLP:FIM, but I'll write a little synopsis anyways.  The plot for this episode was fairly simplistic, but the wholesome messsage about the importance of reading isn't one I disagree with at all.

Royal Canadian Mint $20 Polar Bear Silver Coin

Act fast - these sell out pretty quick.

Precious Metals Weekly Analysis - Week 5 - 3 Feb 2012

I'm going to start adding some great, short videos, articles, musings and what not that I picked up on during the week.

I will add the charts when the markets close on Friday:


Metal "Porn"


$25 Face of 1966 Canadian Junk halves and dollars (15 oz)

Faith

COMING SOON!

Capitalism is Magic: The Super Speedy Cider Squeezy 6000

This weeks episode of My Little Pony: Friendship is Magic touched on SO many elements of capitalism, it was completely mind boggling!

Precious Metals Weekly Analysis - Week 4 - 26 Jan 2012

Did I put 2011 in all my screencaps last week?  Don't you hate it when you do that?

Anyways... a VERY exciting week in the metals again.  Hi to anyone from CGN, if anyone still remembers me :)  Drop a comment below to let me know if my notoriety precedes me.  Please let me know if you think I'm a lunatic, on to something, or just want to troll... trolling is good...

It's ok either way...

The big news this week that seemed to boost the metals up was the FOMC meeting where Federal Reserve Chairman Ben Bernanke announced he extend interest rates at zero (Zero Interest Rate Policy - ZIRP).  This is very inflationary and a good signal that cash will be trash and fuel for the metals to skyrocket.

As for the charts!

PM Investing Requirement - Understand Government Savings Plans are a Rip Off

I was delighted last night to get in the mail a statement from my financial institution that administers my employer RRSP plan.  RRSPs (Registered Retirement Savings Plan) are the Canadian equivalent to American 401(k) plans.  They are, in my opinion, a gigantic government Ponzi scheme designed to fleece the anyone who invests in them (mostly the "middle class") while making financial institutions very wealthy.

I think the same is true of the "Tax Free Savings Account,"  "Locked In Retirement Accounts," "Registered Education Savings Plans" and all the other alphabet soup programs the various governments sponsor or support.

The main reason I say this is looking through the diversified portfolio of mutual funds, I see the annualized rate of return over 10 years is, at best 11%, at worst -1.6%.  Just to be sure, there was a nice letter at the end of the statement making it clear that the annualized rate of return was the return over the entire time specified.

In other words, if 10 years ago, you had a poorly diversified portfolio and ONLY invested $1000 in a single on large cap equity fund, today you would have had $1100.

Conversely, 10 years ago, if you had bought nothing but silver when it was $4.40/oz - you would have had 227 ounces which at $33.50 today would be worth around $7600.  Even if you bought gold at $300/oz, with $1000 you would have easily had 3.33 oz of gold, which today would be worth around $5700 with gold at $1725.

The government offers all kinds of incentives to trick people into investing in these stupid plans.  I simply rest my case that $7600 and $5700 are much higher than $1100.

Because I am eligible for an employer top up into an RRSP, I will take advantage of that plan.  As a long term store of wealth, government savings plans are a massive rip off, and I have NO intention of keeping my money parked in it.

Economic Video Archive

These are video's I think EVERYONE should watch if they have any interest whatsoever in the economy.  I try to find entertaining ones, as well as informative ones.

Precious Metals Investing Fundamentals Archive

Introduction Physical Precious Metals Investing

http://deadkittybounce.blogspot.com/2011/11/starting-to-invest-in-physical-precious.html

How to Buy Precious Metals:

How to Buy Physical Precious Metals Part 1: Numismatics and Collector Coins

How to Buy Physical Precious Metals Part 2: National Government Mint Bullion


Precious Metals Investing Requirements

PM Investing Requirement - Courage
http://deadkittybounce.blogspot.com/2011/11/pm-investing-requirement-courage.html

PM Investing Requirement - Iron Stomach
http://deadkittybounce.blogspot.com/2011/11/what-you-need-to-invest-in-precious.html

PM Investing Requirement - Inflation, Deflation, and Parenthood
http://deadkittybounce.blogspot.com/2011/12/pm-investion-requirement-inflation.html

PM Investing Requirement - Understand What Money Is
http://deadkittybounce.blogspot.com/2011/12/pm-investing-requirement-understand.html

PM Investing Requirement - Government Savings Plans are a Rip Off
http://deadkittybounce.blogspot.com/2012/01/pm-investing-requirement-understand.html
  
Precious Metals Investing Strategies

PM Investing Strategy - Core and Investment Positions
http://deadkittybounce.blogspot.com/2011/11/pm-investing-strategy-core-and.html
 
PM Investing Strategy: When to buy, sell and hold by the ratios
http://deadkittybounce.blogspot.com/2012/01/pm-investment-strategy-when-to-buy-sell.html

Gold to Silver Ratio - Part 1

Silver Long Term Chart Analysis

Silver Price Analysis - 10 Year Cycle - Part 5 
 http://deadkittybounce.blogspot.com/2011/12/silver-price-analysis-10-year-cycle_738.html

Silver Price Analysis - 10 Year Cycle - Part 4
http://deadkittybounce.blogspot.com/2011/12/silver-price-analysis-10-year-cycle_06.html

Silver Price Analysis - 10 Year Cycle - Part 3
http://deadkittybounce.blogspot.com/2011/12/silver-price-analysis-10-year-cycle.html

Silver Price Analysis - 10 Year Cycle - Part 2
http://deadkittybounce.blogspot.com/2011/11/silver-price-analysis-10-year-weekly.html

Silver Price Analysis - 10 Year Cycle - Part 1
http://deadkittybounce.blogspot.com/2011/11/silver-price-analysis-10-year-cycle.html
 

Capitalism is Magic: The Last Roundup

First and foremost - Derpy talking - truly a scene no brony will ever forget...

IMPORTANT ANNOUNCEMENT!

DERPY TALKS! YES!!!!!!1

Weekly Chart Analysis Archive

Precious Metals Weekly Analysis - Week 3 - 19 Jan 2011

Jimminy Jillikers, Batman... maybe I should get banned from CGN more often.  If any of you gunnutz tracking the silver thread are up to it, post a linky.  If not... oh well.

I don't remember if the last time I was banned there was an explosive rally in silver or not, but maybe this is a just a sign I should get banned more severely, more often. :)

Hopefully the silver chart has you singing that you're the type of pony everypony should know:

Charts below:

Capitalism is Magic Archive:

PM Investment Strategy: When to buy, sell and hold by the ratios

I have learnt when investing in precious metals, regardless of which position you are building up, you should not use debt to build up your position, you should have a steady stream of income, and you should never touch your core position unless there is an extreme emergency.

The "core" position is basically like your retirement savings.  If you dollar cost average in, there's no price that is too expensive for the "core" position.  This position is your long term holding that you should never plan to sell unless there's an insane price movement (something like a 700% price increase within a year).

UPDATE (with "gold porn"): A Closer Look at the Gold to Silver Ratio 19 Jan 2012

I wish I had known about Netdania back when the 2011 silver runnup happened.

I'm not saying technical indicators are perfect or that the charts can predict the future.  But I AM saying that without studying the charts, it's impossible to come up with a plan on how to profitably stay in or get out from the market.

Without a plan, I believe you might as well take a trip to the casino, hit the roulette table and put all your money on red.  I think with precious metals especially, you'd probably come out ahead at the casino.

Will Gold Be Monetized Again? Can it? Should it?

Originally Posted by (Name Removed) I seriously doubt that gold will ever be monitized again. There isn't enough gold, and there are way too many people on the planet.

Why wouldn't there be? There's an assumed 1.7 billion ounces of gold held in global reserves with 6.7 billion people. That means there's reasonably 1/4 ounce of gold for every person alive sitting in reserves right now. 

Precious Metals Weekly Analysis - Week 2 - 14 Jan 2011

A bit late this week.

Sorry folks:

Charts below:

Capitalism is Magic: Baby Cakes

This weeks episode of MLP:FIM was a Pinkie Pie episode chalk full of typical, zany pinkie pie slapstick humour.  In this episode, Mr and Mrs Cake (Pinkie Pie's regular employers) are shown having twin foals, Carrot Cake and Pound Cake.

Bronies for Ron Paul

List of reasons why, if you are a brony, you should support Ron Paul:

1.  Ron Paul supports a gold standard

Capitalism is Magic: Family Appreciation Day

This weeks episode of MLP:FIM featured Applebloom's silly attempts to avoid having her Grandmother, Granny Smith, come in to her school during "Family Appreciation Day," basically a "show and tell" session where fillies present one of thier family members to thier class.

Precious Metals Weekly Analysis - Week 1 - 7 Jan 2011

I'm no longer going to do Pay Day Price analysis.  The prices just seem to move too fast and there's so much information I want to share, that I think I'd rather do it on a weekly basis.

Maybe I'll do "Pay Day Precious Metal Porn" posts instead, but we'll see.

Charts below:

A Canadian's View on Ron Paul's Foreign Policy View

In some "conservative" circles in Canada, it's almost sacrilege to question the American wars Canada gets involved with.

From what I can see of most of the "support the troops" Canadian neo-cons who would automatically write off Ron Paul because of his foreign policy - the narrator's comment that they "want to honour the veterans in a very cursory way" very accurately describes them.

They want to "honour" their veterans the way many so-called Christians "honour" God by going to Church on Sunday and a brothel on Monday.  The way I look at it, the yellow ribbon on your car is irrelevant, when the politician you voted for sent the soldier that ribbon is supposed to honour to his death or the currency system you trade your life for is deliberately structured to require him to sacrifice his life to protect it (the system, not you).

The fuel for a lot of this neo-con warmongering I think is mindlessly swallowing anti-Islamic propaganda designed to instill an artificial and unfounded fear of Muslims to justify military intervention and occupation of resource rich territories primarily inhabited by Muslims.

Most Muslims are actually very honourable, decent people.  Islamic culture may have many odd quirks to us as westerners - but to insinuate that Muslims hate us because of our democracy, freedom and prosperity IS preposterous.

I believe any candidate other than Ron Paul as President in 2012 will lead the US and her allies into both a world war that will unnecessarily erradicate millions if not billions of innocent people, destroy any notion of democracy, freedom, and prosperity AND create an economic depression that will last at least a generation.

It's encouraging to see that Ron Paul enjoys the most support from the US military.  Hopefully if some neo-con Republican or Obama is president in 2012, the individual soldiers in the US military simply will refuse to go along with evil scheme of building a global empire that WILL destroy America and it's allies.

Ron Paul IS the man to watch.  Your fate as an individual here in Canada depends on Americans choosing him as president.  That's why I donated to his campaign through an American relative.