Principle: PRO-Sound Money

When people get nervous about the uncertainty of world events and its unstable actors (Russian, Syria, North Korea), Gold always gains in value as its seen historically as having pure monetary value, unfettered by government policy. Of course, with the Fed artificially lowering interest rates, Gold has been held at an artificial low as investors cautiously seek paper investments. However, with the Fed releasing its choke hold on interest rates and they return to normal values, so too will the value of Gold and Silver return to their proper values and rise as the world and its governments increasing becomes more unstable.

Bloomberg Markets – Gold will end the year higher, spurred by faster inflation and political tensions in Russia, Syria and North Korea, according to Intesa Sanpaolo SpA, the best forecaster for the metal last quarter.

Prices could take a v-shaped path this year, with a swoon coming mid-year as the Federal Reserve raises U.S. interest rates, said Daniela Corsini, an analyst at the bank. Gold will likely bounce back by year-end, reaching a high of $1,350 an ounce in the fourth quarter, she predicted.

That would leave bullion at the highest level since September. Prices have risen 12 percent this year, supported by inflation concerns and a mix of geopolitical worries, including North Korea’s nuclear ambitions and U.S. airstrikes in Syria and Afghanistan.

“Markets will surely remain nervous about this uncertainty,” she said by phone from Milan on Tuesday. “And if economic data in the U.S. remains strong, then gold will regain its role as an inflation hedge.”

Read more at: Gold's Top Forecaster Says Prices May Hit $1,350 by Year-End – Bloomberg.

Gold is on the rise as 2014 looks like the year this precious metal reclaims its luster as an investment option. With debt increasing, the value of the US dollar is declining vs the euro, and investors seek the monetary security only gold can provide in times of uncertainty.

Bloomberg – Debarati Roy – Gold futures posted the longest rally in four months and silver climbed to a one-week high as the dollar’s slump boosted demand for precious metals as alternative investments.The euro jumped to the highest in more than two years against the greenback after Jens Weidmann, a European Central Bank Governing Council member, said keeping interest rates low may endanger political reforms. The Standard & Poor’s GSCI Spot Index of 24 raw materials climbed to a 10-week high, paced by industrial metals.“It’s a currency story,” George Gero, a vice president and precious-metal strategist in New York for RBC Capital Markets, said in a telephone interview. “The strong euro has kept sellers in gold on the sidelines.”Gold futures for February delivery rose 0.1 percent to settle at $1,214 an ounce at 1:39 p.m. on the Comex in New York. The price climbed for the third straight day, the longest rally since Aug. 16. Earlier, the metal reached $1,218.90, the highest for a most-active contract since Dec. 19.

Read more at: Gold Has Longest Rally in Four Months as Dollar Slumps – Bloomberg.

In another act of the Federal Government punishing those who are fiscally reponsible, a new report details just how much the Federal Reserve “quantitative easing” has cost America’s savers and investors. Taking from the responsible and giving to the irresponsible, this report estimates that between 2007 and 2012 those with money saved in banks lost $360 BILLION in interest income compared to what they would have made if the Fed didn’t start printing money out of thin air.

MarketWatch – It’s a fact that’s been often noted and bemoaned: By suppressing interest rates in an effort to stimulate the economy, the Federal Reserve’s quantitative easing campaign boosted borrowers and banks at the expense of retirees and other income-oriented savers and investors. A recent report from McKinsey Global Institute MGI attaches some dollar figures to these “distributional effects,” and the sums are eye-catching: They estimate that between 2007 and 2012, U.S. households cumulatively lost $360 billion in interest income compared with what they would have earned if rates had followed their pre-recession trends. As Timothy Taylor, editor of the Journal of Economic Perspectives, points out this week on his blog Conversable Economist, this drop in interest income almost certainly had a bigger impact on households that were at or near retirement age than it did on younger people. Older families, after all, are far more likely to have amassed some savings and invested some or most of those savings conservatively, while 30- and 40-somethings are more likely to be net borrowers, carrying mortgages, student loans and the like while investing more heavily in stocks.

Read more at: Report: Fed’s QE policy cost U.S. savers $360 billion – Encore – MarketWatch.

Don’t let the low pricing fool you, Gold is poised to reach new highs once again. Endless printing of paper money by the Federal Reserve is taking a toll on the value of the dollar, with the value Gold and alternative currencies, such as Bitcoin, on the rise.

MarketWatch – Gold has fallen off a cliff in the last year, going from highs of nearly $1,790 in October 2012 to about $1,280 currently — a drop of about 28%.

But judging by recent trends, it’s possible that gold has found a floor and that now is a decent time to buy.

Admittedly, there are still some big challenges for the precious metal — especially in the last week or so when prices have been steadily rolling back again. But even if investors are a bit early as they turn to gold, fears of overbought domestic stocks may make even an uncertain bet in gold a preferable alternative to some right now.

There’s risk no matter where you put your money right now. So here are some reasons the rewards from a buy into gold may outweigh those risks:

Read more at: 4 reasons gold is poised for a comeback – Jeff Reeves’s Strength in Numbers – MarketWatch.

As the call for sound money in America grows louder and louder, Forbes.com reports the keynote speaker at the Denver Gold Forum made a call for ‘honest money’ backed by gold.

Forbes.com – Denver – Lipsky gave a keynote speech titled “Mainstreaming the Gold Standard” at the 2013 Denver Gold Forum. He called on the U.S. to return to some kind of gold standard, and urged those attending the Gold Forum not to be shy about entering the political fray.

In an interview ahead of his speech with Kitco News, Lipsky described the New York Sun as an online newspaper standing for limited government, free enterprise, strong foreign policy and “sound and honest money,” carrying more editorials on the gold standard than any other newspaper in the U.S. A book, “It Shines For All,” includes many of the editorials from the Sun for a gold standard and was distributed to those attending the speech.

“I tend to look at it through the prism of the United States Constitution and the founding fathers of the republic,” Lipsky told Kitco News. “I often talk about the fact that Constitution gave Congress the power to coin money and regulate the value thereof in the same sentence in which it also gives Congress the power to fix the standards of weights and measurements.”

Lipsky said the founders “hated” paper fiat money.

Read more at: Denver Gold Forum Keynote Speaker Calls For ‘Honest Money’ Based On Gold – Forbes.