Gold and Silver Bells Are Ringing
Source: SeekingAlpha.com (5/24/07)
The money needed for gold to rise is already in the system. According to a recent report in the Economist, the money supply in the following countries is rising at a rate in excess of 8% per year: Australia, Britain, Canada, China (19%), Denmark, Euro-land, Sweden and the United States. According to sources who track the US M3, that measure is currently rising by 15% per annum.
US gold reserves are somewhat 'suspect.' According to the World Gold Council, current US official gold holdings are reported as 8,133 tonnes. The last time this gold was audited was in 1953! At that time the gold was referred to as 'gold bullion reserves.' In 2001 the description was changed to 'custodial gold bullion.' Six months later the description was changed again, to 'deep storage gold.' Could it be that the gold has been sold and or leased, and has been replaced by gold that is still in the ground, yet to be mined, possibly committed to the government by one or more mines?... The U.S. debt is ballooning. Federal debt is 8 trillion dollars. ...
The precious metals look great. After a month in down-trend, the first few bells are ringing, and more bells can be expected to ring as these markets turn up.