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!