Well the good news for equity-, shareholders first: Dow Jones will double too!
In the meantime it is (at least guaranteed by governments/countries/central banks) almost impossible that relevant banks, companies in key and labor intensive sectors (like the car industry) will go bankrupt.
All these measures are artificial short-term interventions and the status of some economies/currencies etc are comparable with a patient being attached and dependent of a heart-lung-machine, since he only will survive this way. This attitude is very un-natural and it doesn't matter anymore if managers of companies manage well, if they don't and get into troubles, uncle sam, a government or a central bank will save them (if necessary).
Now i do not summarize all the packages world wide but lets just sum up quicky the latest:
USD 700 billion initial rescue package
USD unknown amount to save F&F
USD 300 billion just for saving CITI
USD 800 billion package just announced this week
USD 7.5 trillion "guarantees" to just save everything!
This is just such an unbelievable hugh and extended paper-money-mountain and when somebody who is not that fit with very hugh figures like USD 7.5 trillion wich is 7 500 000 000 000 might believe now everything is save?
Everything?
Hmm I am not sure and therefore lets have a look at the official statistics of the Bank for International Settlements (
http://www.bis.org/)
To see the statistics click here:
http://www.bis.org/statistics/otcder/dt1920a.pdf
In the first line on the right side you will see the gross value (gross value is the one which is at stake in a worst case) of all over-the-counter (OTC) derivatives of USD 20 000 000 000 000 which is an amount being 3 times higher than the 7.5 trillion guarantees from Benny and Hanky.
I repeat:
Gross Value USD 20 000 000 000 000
Notional Value is USD 684 000 000 000 000
Now I hope I got it right with that many zeros!
So far Ben, Hank and their other CB-fellows did a good job to convince investors not to bank-run and not to sell all paper money. In Germany there are even tv ads to invest into German bunds (hoho!)
BUT: so far I did not tell you why Gold/Silver/Oil will double in price in the coming weeks. Here the key arguements:
1. All 3 have been massively manipulated down the last couple of weeks and months.
2. Premiums for some physical Gold coins are between 20 to 40% for Silver between 50 to 150%!!!
3. Physical PM's are not delivered anymore by the major mints (and it seems to be a co-ordinated action) worldwide. US, Canadian, Australian mint all the same song. "We can't deliver due to the unexpected big demand!"
4. So there is not enough physical gold and silver available and production of PM's worldwide is plunging big time.
5. We have peak Gold and Silver. In 15 years we have big issues to get decent amounts of Silver out of the ground and for Gold this will start within 20 to 25 years.
6. (this point is important when AMERO will be announced officially!) When I have a close look at the AMERO coin pictures flying around (and lets suppose they are NOT fake!) I read three interesting things on it: A) 100 AMERO / 1 troy ounce / 0.999 Silver. I expect that when the AMERO comes one needs minimum 2 USD to buy one AMERO. so lets calculate:
2 USD = 1 AMERO
100 AMERO = 200 USD
if 100 AMERO = 1 troy ounce of Silver then
1 ounce of Silver = 200 USD (actual price at COMEX USD 10.30)
But what is in there for gold? Actually the Gold/Silver-ratio is about 80, which means one gets 80 ounces of Silver for one ounce of Gold. This ratio is actually extremely high and I expect this to drop to 30 to 50 at.
Lets calculate with a ratio of 50, that will give a theoretical goldprice of USD 10'000 (50 times 200).
Well this example could give you an impression of the purchasing power factor Gold and Silver have. I expect this factor to between 10 and 50, depending on the conditions of a USD/AMERO revaluation.
7. Tomorrow 28 November 2008, investors can start exercising gold and silver future contracts physically. I was reading plenty of articles and have some information from some big asset managers that they will and some even HAVE to exercise. I expect COMEX will have its toughest month since they exist and probabely its the last month it will!!!!
8. But is out there for crude oil? Well with crude oil everything is on track on the illuminatis and freemasons road map. This year in Virgina at the Bilderberg meeting (when crude was trading around USD 140) they decided to bring it down towards election time to USD 50 and after this bring it up again to USD 500!!! I guess that as soon financial markets have stabilized Iran will get into troubles.
9. Oil has been manipulated down out of some other reasons as well. They are mainly Russia related and it is a try to make Russia to default. This probabely because Russia had USD 80 billion of Freddies and Fannies and intended to sell or to sell-off their USD reserves....their might as well be the correct reasons to find why what happenend on the 8.8.08.
10. I guess equity markets will shoot up big time towards year-end. Investors are heavily in cash and I expect the Dow to close north of 10'000 @ x-mas....so when equities go up gold and silver will be allowed to go its way up too.
11. AMERO news will create hugh big demand and stories will come up that central banks have lent away much more gold than experts say....
12. The US Dollar will crash down the coming weeks by 10 to 20%!
Hmmm. ...let me see what you think and there will be more arguements down this thread.
But let me fininsh by this:
Where is Gold / Silver / Oil trading between x-mas and year-end?
Gold between USD 1'200 and 1'500
Silver around USD 20
Oil between 80 and 100
Cheers, Silverman