Fortunately for stock holders, it has been one empty statement after another. Quantitative Easing continues to flood the economy with 85 billion new dollars each and every month, and stocks have been a key beneficiary as they ride the surge of liquidity to new heights.

The latest call for QE’s end has come from John Williams, president of the Federal Reserve Bank of San Francisco. Saying *if* the labor market continues to strengthen, “We could reduce somewhat the pace of our securities purchases, perhaps as early as this summer.” And *if* all goes according to plan with this first step, We could end the purchase program sometime late this year.”

*If* this. *If* that. It’s one after another. Fortunately for stock holders, the *if’s* haven’t won out yet, so Quantitative Easing continues on and on.

But do you really want to base your savings on *if’s*?

Eventually the *if’s* will fall into place. Quantitative Easing will end. And many experts expect stocks to fall as a result.

If your portfolio is based solely on the *if’s* of a stock market being propped up by the Fed, it’s time to diversify into Gold and Silver. Because even just a small portion of your portfolio in precious metals is more protection than you’re going to have with an *if*.

Precious metals on the move

London Fix PM price at week’s end, and change over previous Friday:

• Gold: $1,368.75, down 4.0%
• Silver: $22.52, down 3.6%
• Platinum: $1,470.00, down 1.3%
• Palladium: $736.00, up 4.8%

In the news

Sam Zell says sell
“Right now you are buying at an all-time high. And there are times when stocks hit a high, and then go higher, but that’s when you have a good economy. The current euphoria in the stock market will be adjusted.” – Sam Zell (link)

Eurozone recession “reinforces pressure on the ECB” to cut rates further
“[The first-quarter contraction] reinforces pressure on the ECB to come up with further measures to try and support euro-zone growth. An interest rate cut to 0.25 percent looks ever more possible, while the ECB will also continue to look into the case for a negative deposit rate and ways of getting more credit through to smaller companies.” – Howard Archer, an economist at IHS Global Insight in London (link)

Risk of a downside overshoot in stocks?
“Fed policies have chased investors all in the same direction; into risk-seeking securities. Few care about ‘right-tail’ events, but should investors decide to pare risk in reaction to a hint of ‘tapering’, the overshoot to the downside may surprise many.” – Guy Haselmann, a fixed-income strategist at Scotia Capital Inc. (link)

Gold fundamentals remain firm
“The price of gold will trend upward over the next few decades due to its inherent value as a medium of exchange that provides greater purchase power parity over time and geography. This will be possible when the metal serves as reserve collateral for sovereign fiat currencies to limit imprudent credit and debt formation.” – Moneynews (link)

Don’t be late for gold and silver’s turn or you are “going to miss it”
“Savvy investors see gold and silver as hugely undervalued assets. You can be months early in terms of positioning yourself, but in my opinion you can’t be late when this market turns or you are simply going to miss it. Gold and silver can go that quickly.” – John Embry (link)

Chart of the week

Growth of stock market matches money printing almost perfectly. So what would an end to Quantitative Easing mean for stocks?

The week ahead

• Bank of Japan to make new call on interest rates
• Ben Bernanke to testify to Congress
• Minutes from Fed policy committee to be released
• Existing home sales due Wednesday, FHFA house price index and new home sales on Thursday

Maybe not today, maybe not tomorrow, or next week, or next year. But ultimately, their victory is inevitable. The reasoning is simple: For thousands of years, as societies have risen and fallen, as currencies have come and gone, gold and silver have been one of the few constants.

Yet the media is stubbornly compelled to measure their value against the U.S. Dollar, a currency whose fate was sealed from the very moment it was conceived. (That’s assuming, of course, that the Dollar will behave like every single fiat currency before it. We think it’s a safe assumption to make.) And it appears as though the Federal Reserve is eager to bring on this demise as soon as possible, what with the 85 billion new Dollars it floods the economy with each month.

It’s already happening in Japan. With the Bank of Japan’s aggressive program of easing, just like the Fed’s quantitative easing, the value of the yen compared to other major currencies in the global economy has plummeted in recent months.

As Michael Lombardi says on Yahoo, “If we keep up with all this money printing, the U.S. dollar may eventually look the same.”

So to many of those in the media, we say enough with the gold and silver bashing. Gold and silver have held their value for thousands of years versus any currency; why should we expect anything different now? So let’s flip the script and put the Dollar under the microscope. The New York Sun puts it best:

“The value of gold is, in practical terms, constant. We prefer to talk about the value of the dollar. That’s what does all the changing… It is gold, not the dollar, that is the measure of value.”

Gold and silver will win. The yen is plummeting today, and for those who are stubbornly compelled to peg gold and silver’s value to a currency, the value of gold and silver versus the yen is at record highs. The Dollar is positioned for the same fate as the yen. So for those same people who are stubbornly compelled to peg gold and silver’s value to a currency, there’s only one logical conclusion for where their value will go versus the Dollar.

Get protected from the Dollar today. Get into gold and silver. Call us. 800-355-2116.

Precious metals on the move

London Fix PM price at week’s end, and change over previous Friday:

• Gold: $1,426.50, down 2.9%
• Silver: $23.37, down 3.6%
• Platinum: $1,490.00, down 0.7%
• Palladium: $702.00, up 1.2%

In the news

Ron Paul isn’t worried about falling gold prices
“I don’t see the price of gold as the issue as much as the value of the dollar. The value of the dollar is a subjective thing, it comes and goes, and there are a thousand different reasons why the values go up and down. There’s nothing unusual about that market.” – Ron Paul (link)

Ingredients are being set for another run in gold
“Eventually we’re going to see higher rates of inflation. And eventually we’re going to see a weakening dollar. So I think the ingredients are being set for another run in gold.” – Peter Cardillo, chief market economist, Rockwell Global Capital (link)

The enduring glow of gold
“The gold bull market will end when an inflation crisis pushes central bankers around the world to tighten aggressively.” – Andy Xie (link)

China moving to dominate the world with gold purchases
“It’s only a matter of time before the Chinese back the yuan with gold… Their currency is flying and they are importing as much gold as they possibly can. All of this spells incredible upside for gold. Hang on to your gold, and buy more if it comes down in price. And especially buy silver. When gold takes off, silver will be gold on steroids.” – Stephen Leeb (link)

Chart Cartoon of the week

The week ahead

• Several key economic reports due to be released: retail sales, a couple of manufacturing reports, and inflation data
• Are ETF funds seeing inflows for the first time in weeks?
• “Bargain” prices on gold to drive continued strong demand for physical?

When there’s more demand than supply, prices go up. And when there’s more supply than demand, prices go down. It’s basic Economics 101.

When it comes to gold and silver, many so-called “experts” overlook this simplest of concepts and instead make claims such as… Gold and silver were on a bubble!… Look at the stock market go higher and higher!… Inflation is well within the Fed’s target! (If you take any of these claims at face value, then we have a bridge to sell you!) You’ll hear this from many in the media, and even from Goldman Sachs, who have called on gold to drop even further.

Back in the real world…

…the Fed reaffirmed its commitment to its ultra-accommodative monetary policy this past week…
…real interest rates are below zero…
…the ratio of debt to the GDP continues to rise…
…demand for physical gold and silver continues to spike…
…supply of physical gold and silver continues to drop.

Who are you going to believe about the economy and gold? Mainstream news? Ben Bernanke and the Fed?

Or how about two basic, inarguable facts… Demand is UP. Supply is DOWN.

This doesn’t need to be difficult; the case for gold and silver today, more so than ever, is so obviously clear.

And those folks over at Goldman Sachs who have called for gold to drop further? They have not sold off a single ounce of their own gold; in other words, they haven’t put their money (literally) where their mouth is. And we’ve already covered that central banks aren’t selling gold either; in fact, they’re buying!

Look past the hype, and instead at what is actually happening in the markets today. The banks love physical gold and silver. People around the world love physical gold and silver (many are going on waiting lists for it!). You should too. Call us today to take possession.

Precious metals on the move

London Fix PM price at week’s end, and change over previous Friday:

• Gold: $1,469.25, down 0.2%
• Silver: $24.25, up 1.0%
• Platinum: $1,501.00, up 1.2%
• Palladium: $694.00, up 1.9%

In the news

Gold price crash unleashed frenzy of physical demand
“Some investors feel much safer having gold within their reach and their hands.” – Jonathan Potts, managing director of Delaware Depository (link)

Rickards: The fundamentals will prevail in the long run
“With any trading activity, there’s some combination of fundamentals and technicals. In the long run, the fundamentals usually prevail, but in the short run the technicals can dominate. That’s what happened.” – Jim Rickards (link)

The bull case for gold hasn’t changed one iota
“I don’t see any material change for the reasons why I’ve owned gold in a huge portion of my portfolio since 2001. And those reasons are static… deficit as a percentage of GDP continues to be higher than nominal GDP growth… we’ve had four years in a row of trillion dollar deficits… real interest rates are still negative… and [the Fed is printing] $85 billion per month… What piece of economic data can you point to of late that would make Bernanke say, ‘Now is the time to slam on the QE brakes’?” – Michael Pento, president of Pento Portfolio Strategies (link)

Precious metals sales soar following gold price slump
“Having closely monitored gold’s performance over 40 years I can safely say that the media and gold skeptics have got it wrong on this occasion: it is not bad news. Gold is smart money at a time when currencies have never been so volatile. We only have to look at the Eurozone or America’s $16 trillion dollar debt to know that gold is the one tangible currency which can be used against depleted cash reserves which are liable to devalue further. While the gold price has temporarily lulled, we need to remember it has maintained a high price in the past decade and it’s has never been put to better use than it has now.” – Alan Demby, international bullion expert (link)

CME president admits people don’t want paper gold
“People don’t want certificates, they don’t want anything else. They want the real product.” – Terrence Duffy, President and Executive Chairman of CME Group (link)

The week ahead

• Strong physical demand to continue?
• Will ETFs continue to see outflows?
• Physical demand to overwhelm speculations from paper traders?

Leo Mahlamed was head of the CME – the world’s second largest exchange for futures – for 25 years. Today he remains a board member and chairman emeritus. Yet when he tried to take physical delivery of just two gold contracts last week, the organization that he has given so much of his life to would only give him a warehouse receipt.

This is the new reality of precious metals today. The paper market has imploded on itself, and as a result we’re seeing a “global phenomenon” – an outright frenzy – for real, physical, hold-in-your-hands gold and silver.

Comex depositories are being ravished, with OVER $7 BILLION in gold being removed in the last four weeks. At JP Morgan, their eligible gold plunged 65% in a single 24-hour span, from 402,400 ounces to 141,600 ounces. That’s the lowest amount they’ve ever had on record. From Zerohedge: “Everyone has seen what a run on the bank looks like. Below is perhaps the best chart of what a ‘run on the vault’ is.”

The CME sees these “runs on vaults”, and they fear it could happen to them too. In an honest moment, they may even admit that it will happen to them. And because of this very well-founded fear, they’ve chosen to take a public relations hit instead of making good on the gold contracts of one of their most important employees.

If you’ve been considering moving into precious metals, there may not be a better time. Prices haven’t yet fully recovered from their drop the other week. And here at Birch Gold, we still have access to inventory to fulfill your order. But that’s today. Next week? In two weeks? With inventories continuing to be ravished, with these “runs on vaults”… we sure hope we’ll still have access to inventory… we sure think we’ll still have access to inventory… but how can anyone say with any certainty?

Don’t wait until it’s too late. Call us today to protect your savings with gold and silver. Physical gold and silver.

Precious metals on the move

London Fix PM price at week’s end, and change over previous Friday:

• Gold: $1,471.50, up 4.7%
• Silver: $24.02, up 1.5%
• Platinum: $1,483.00, up 4.1%
• Palladium: $681.00, up 0.6%

In the news

Stunning and massive run on physical gold and silver continues
“What we have seen around the world has literally been a run on physical gold. People all over the world are simply turning in their fiat money for physical gold, and silver as well.” – Keith Barron (link)

Shortages of physical gold now a global phenomenon
“[Investors] are no longer putting any faith in paper gold and this is being seen in all quarters with reports from virtually all continents of demand exceeding supply of physical metal, and some hefty premiums being applied on sales of gold bullion.” – Lawrence Williams (link)

U.S. Mint gold sales surge to highest since 2009 (and have SUSPENDED production of some coins)
“Will the U.S. Mint be able to sell another 35,000 ounces in the remaining week of April, and surpass the all-time monthly record from December 2009? Or will it run out of gold beforehand, and just like it did with the one-tenth ounce American Eagle gold coins, will sales of all bullion denominations be halted in the comings days?” – Zerohedge (link)

Spotlight on Silver

Worldwide silver shortage as premiums on silver Eagles reach 40%
“This growing divide between the paper silver price and real-world price will have to narrow at some point soon. The more big-money investors realize the huge price gap and act on it, the faster the gap will close or soon Comex will default or go broke from offering hefty cash incentives to investors to dissuade them from taking delivery. In the meantime, if anyone can find me some silver Eagles anywhere near the Comex price, I have a boatload of fiat notes to trade. Keep stacking (if you can find any).” – Jason Hamlin (link)

Chart of the week

Comex inventory collapsing

The week ahead

• Frenzy for physical precious metals to continue?
• U.S. jobs report to be released
• U.S. Federal Open Market Committee to meet Tuesday and Wednesday
• European Central Bank to meet Thursday

“If gold doesn’t make sense now, then it never made sense to begin with. Every single catalyst that gold rallied on is still in tact, only on steroids.” – Adem Tahiri

Dear Reader,

You read our Market Updates each week to get the latest news and insights about protecting your savings with physical gold and silver. Presumably you’re interested in creating a Precious Metals IRA or taking physical delivery – if you haven’t started to already – because you know how gold and silver can uniquely safeguard from inflation, stock market instability and geopolitical instability.

This could be your last best opportunity to get started.

By now you probably know that gold and silver dropped quite a bit last week. Despite that, every reason to protect your savings with physical precious metals still stands. But now you can get them at their lowest levels in over two years.

If you liked gold and silver two weeks ago, you have to love them at today’s prices.

Here’s why, in four simple points:

1. Drop in price due to paper selloff

There are a number of theories for what triggered last week’s selloff. Some believe it was orchestrated by the Fed, others say it was central banks around the world. We’ve also seen fingers pointed at hedge funds and institutional traders, and even the general speculative trader.

What no one disputes is that the selloff was solely of “paper” gold. During the two-day decline, 150 million shares of SPDR Gold Trust ETF were sold. Gold mining stocks plunged. And as overleveraged buyers of gold futures saw prices weaken, they panicked and ran for the hills.

Now we find gold and silver at their current levels – brought down entirely by a paper market.

2. Unprecedented global frenzy for physical precious metals

“After the most-massive (paper) liquidation in the history of precious metals markets; we don’t see massive stacks of unwanted gold, only massive stacks of unwanted paper…. Paper-gold holders have been swapping that paper for real metal.” – Jeff Nielson

With prices at their lowest levels in over two years, demand for physical gold and silver is spiking. At the Birch Gold offices, volume is higher than it has ever been. Already in April, the U.S. Mint has sold over 167,500 ounces of American Eagle gold coins – that’s more than the full previous two months combined. And reports around the world are just as staggering. Consider the frenzy being reported from international banks, or in Australia, Japan, China, Singapore, India… has the point been made yet?!

3. The fundamentals haven’t changed

Consider the following:

• The Fed is still printing $85 billion a month
• Currency wars are still raging around the world
• Every major government is running a deficit
• Interest rates remain near zero
• Insider selling of stocks is rampant
• Jobs reports give little evidence of economic recovery

We’ve been beating the drum on all of these forever now, and despite gold and silver’s drop last week, nothing has changed. The outlook for the U.S. Dollar, for the economy, for the stock market… there’s little reason for optimism.

4. Recovery may happen just as fast

Gold clearly in “buy signal”

Couple the global frenzy with the unchanging fundamentals, and it’s hard to deny that gold and silver are primed for a quick recovery.

“This is a buy opportunity. The last time gold and silver pulled back like this (fall 2008) it took off to $1,800 and $49 per ounce. Once the manipulators are done, look for it to skyrocket again.” – Bob Livingston

“My feeling is that we are going to see a sharp recovery… a V-shaped bounce rather than a U-shaped bounce. For people who have put some cash aside you are looking at opportunities being served to you on a golden platter.” – Pierre Lassonde

The time to act is now

You’ve been thinking about this for weeks, months, or years now. You know how critical protecting your savings is. You must act now.

Get started today. Call us. (800) 355-2116