Gold and Investments
Stuart Wilde
I was talking to a gold trader friend about the markets, as the Euro looks vulnerable, as does Sterling. He told me that the Swiss franc will be very strong, as part of it (25%) is backed by gold, and the other currencies aren't really backed by anything, just paper.
Each Euro note has a letter before the number (see below for full list).
Stuart Wilde Euro Banknotes
Euro Banknotes
X is Germany. N is Austria, and S is Italy, meaning the central banks of those countries issued the note backed by say Government bonds which are just bits of paper.
But a country like Greece that is technically bankrupt has no assets with which to back its notes, they are marked with a Y.
People say when the crunch comes, the Greek Y notes may not be accepted any more, as people will only accept the German notes marked with the prefix letter X. Right now, each note is valid all round the Euro-zone.
Fascinating stuff ? I didn't know about the letter before the number.
Gold is a manipulated market, but half of all the gold in the world is in the Middle East, and much is with Asia and China. When gold rises too far, the central banks sell gold to drive the price down. The problem is the central banks don't have much more gold left to sell. It is estimated that German central bank has just eighty tons remaining. When the banks can't manipulate the market any more, then gold will steadily move up to the $1500 range.
The only thing that can affect gold is if there is a run on the stock exchange, like a global panic and the Dow fell to say 5000 or under. Then traders would liquidate gold to cover their losses, and the metal could fall to the $400-500 range. But the drop would be short-lived, as whatever spooked the market would soon have people coming back into gold, and the Russians, Chinese, and the Middle East would be buying heavily. They would love it!
So essentially gold is really the only investment that makes sense, as the Dow is on its last legs, and it will never recover. It will certainly have a few dead cat bounces where it moves up 500-1000 points, but I talk of an intrinsic long-term recovery. Real estate can only get worse, and the commodity markets have more or less collapsed.
I have predicted that in a few years time, all shares will be worthless, and the stock exchanges will be virtually or actually closed. Now to make that prediction, I'd have to have special information. All I have got is the visions, but I will say that all of the financial predictions I made in the late 1990s and early 2000s based on my visions have come true or are coming true.
© Stuart Wilde 2009
www.stuartwildeblog.com
European Letter Codes Country-by-Country
Z Belgium België/Belgique/Belgien
Y Greece Elláda
X Germany Deutschland
(W) (Denmark) Danmark
V Spain Espańa
U France France
T Ireland Éire/Ireland
S Italy Italia
(R) (Luxembourg) Luxembourg/Luxemburg/Lëtzebuerg
(Q) Not used
P Netherlands Nederland
(O) Not used
N Austria Österreich
M Portugal Portugal
L Finland Suomi/Finland
(K) (Sweden) Sverige
(J) (United Kingdom) United Kingdom
(I) Not used
H Slovenia Slovenija
G Cyprus Kypros
F Malta Malta
E Slovakia Slovensko
© 2009 Stuart Wilde -
www.stuartwilde.com
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