Conspiracy of the Rich

The Dollar is Toast. Are You Prepared and Protected?

All over the world, people and governments are quietly exchanging their dollars for gold and silver. In his latest Conspiracy of the Rich Bulletin, Robert Kiyosaki discusses the implications of the dollars seeming demise – and what you can do to prepare and protect you family and your money. Don’t be the last to know the dollar is toast.

If the world’s central banks stop buying our bonds and dollars, the U.S. will have to raise interest rates, which will crush the stock market. If higher interest rates do not work, then the U.S. will have to print even more money, possibly leading to a hyperinflationary state, once again stealing from those that work for and save money. As you know from COR, the rich know how to print their own money like the Fed – it’s the middle-class that is most affected by the financial crisis.

– Excerpt from Robert’s Conspiracy of the Rich Bulletin


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In India, you're in gold's own country

In India, you're in gold's own country
Nimish Shukla, TOI Crest 21 November 2009, 05:43am IST

Source URL
http://timesofindia.indiatimes.com/biz/india-business/In-India-youre-in-golds-own-country-/articleshow/5254421.cms

The legend goes that when Venkateswara, the incarnation of Lord Vishnu, wanted to marry
princess Padmavati, the king asked him to gather wealth comparable to his khazana. Venkateswara, born in a poor family, then sought a loan of gold from Kuber, the god of wealth.

Since then, down the ages, devotees have donated gold and jewellery - a symbolic gesture to help Venkateswara win the hand of the princess. At the heart of this practice is the temple at Tirupati, known to be the world's richest. The glitter of gold has attracted Indians for centuries for a variety of reasons - ranging from a medium of transaction to protecting wealth, securing the future and as jewellery. In the recent past, the volatility of the stock markets has only added to the luster of the yellow metal. The fact that gold has traditionally been considered a hedge against inflation and a depreciating dollar too has fuelled its demand.

It is estimated that about 15,000 tonnes of gold is privately held in India, more than twenty-five times as large as the official hoard of 558 tonnes after the RBI's recent purchase of 200 tonnes from the International Monetary Fund (IMF).

In one year, gold has appreciated by 53 per cent, from $742 to $1,134 an ounce in international markets. Considering this jump, the value of the country's privately held gold reserve, the highest in the world, has jumped from $357 bn to $547 bn, posting a rise of $190 bn (Rs 7.64 lakh crore). "Over a period of ten years, privately held gold reserves have increased significantly in the country as consumers have bought more gold to preserve their wealth," says Dharmesh Sodha, director, World Gold Council- India.

Sodha estimates that the reserve has gone from 10,000 to 15,000 tonnes in the last decade, going by the average net import of 500 tonnes annually. Southern states like Kerala and Tamil Nadu have the highest per capita gold holding, he added.

Gold is valued in India as a savings and investment vehicle and is the second most prefered investment behind bank deposits. PP Jose, Joy Alukkas Traders India, a Kochi-based jewellery firm, says Kerala accounts for at least 15-20 per cent of the gold business in the country. "Traditionally, people here buy gold at weddings to secure the future of their son or daughter," says Jose. The wealth taken by the bride to her new home also gives her a sense of economic empowerment, he feels.

"As gold offers safety and better liquidity, people prefer to park their savings in the yellow metal," said GR Ananthapadmanaban of GRT Thanga Maligai, a Chennai-based jewellery firm.

Gold purchases in Kerala and Tamil Nadu are almost exclusively meant for weddings, but among the relatively more market savvy Gujaratis, Marwaris and other business communities, gold buying is also driven by the metal's attractiveness as an investment. "I have been buying gold since the last thirty years, but my allocation for gold has increased in the last two years. Earlier, I used to buy 500 grams of gold a year and now I buy about double that amount," says Manoj Soni, a leading bullion investor in Ahmedabad.

Religiosity too seems to make common cause with the most universally recognized symbol of material wealth. Parimal Nathwani, a trustee of the Dwarka and Nathdwara temple trusts, says, "Most temple trusts get a lot of gold as offerings. People believe that God also likes new things."

Whether it's for security, returns or other purposes, what's clear is that India's hunger for gold remains insatiable.

Kitco - Gold Index

Kitco - Gold Index

If the World is Dumping Dollars, Why Are You Saving Them?

If the World is Dumping Dollars, Why Are You Saving Them?
In his latest Conspiracy of the Rich Bulletin, Robert Kiyosaki gives some frightening insight into how the world’s central banks are preparing for the collapse of the dollar – and how you can too. Don’t get caught in the coming financial storm! Find out how to find your financial high ground.

On November 3, the International Monetary Fund sold India 2,000 tons of gold for $6.7 billion. What is interesting is that India purchased the gold at the highest price in history. In other words, they do not care what the price of gold is. They simply do not want counterfeit money. This purchase makes India’s Central Bank, the 9th largest holder of gold.

– Excerpt from Robert’s Conspiracy of the Rich Bulletin

Learn how to protect yourself from the dollar’s demise today.

Read Robert's latest post here: http://conspiracyoftherich.com/

Learn How To Buy Gold As An Investment

Author: Bruce Lipski

If investors want to buys stocks or bonds, they can call up their brokers and quickly make the purchase. They can also buy stocks online with the push of a button. Commodities such as gold and silver, however, are more difficult to buy because of the the complicated way in which they trade through futures and options markets.



Whatever the current price of gold is, many people wish to learn how to invest in gold. Metals such as gold and silver are called commodities and they are more complicated than stocks for the normal investor because there are different ways you can invest in them.



Luckily, investing in gold is one of the easier commodities to invest in. One option is that you can invest in gold coins that are obtained from a dealer and from some banks. If you do this, though, you will have to find a safe way to store the gold. Many people who have gold store it in bank safe deposit boxes. This seems to be the most secure method of storage.



The second way to invest in gold is to buy an ETF. Exchange traded funds work much like stocks and they can be bought and sold any time the stock market is open. These funds mirror the price of gold and so even though you do not directly own any gold, you have a fund that has exposure to it. Investing in gold through ETF's is probably the easiest method and the most recommended method of gold investment for the average investor.



The third and most complicated way to invest in gold is to trade futures and options in the commodities market. This takes a lot of knowledge and experience to know what you are doing and it is not advised for the normal investor. Trading futures and options is something that you learn how to do over time and it is not usual for most gold investors to take this route.



Investing in gold is not as intimidating as it sounds. Usually people can easily buy ETF's and this is by far the most popular way. As the current price of gold fluctuates, these ETF funds go up and down correspondingly. If you like to have the physical gold in your hands you can always buy it but then the safety issue comes into play. Whichever method or methods you use for your investments in gold, you will still have the benefits of owning the most treasured metal in earth's history.

About the Author:

Learn more about why you might want to invest in gold at my web site Current Price Of Gold. Also find out were to get cash for gold by selling all your unwanted old jewelry.

Article Source: ArticlesBase.com - Learn How To Buy Gold As An Investment

Why the price of gold is rising

Gold prices have been rising for eight years
The price of gold continues to set new records.

The precious metal reached a record high of more than $1,065 an ounce on Tuesday morning.


WHY HAVE GOLD PRICES REACHED SUCH HIGHS?
There are several factors at play which are leading to demand for gold rising, pushing up the price:

Weakness of the dollar: The greenback is commonly seen as the World's reserve currency. Low interest rates and the US government's massive economic support package have weakened the dollar.

Those who would typically have invested in that currency are looking for other places to put their money where it will, they hope, gain value.

Speculation: A lot of the investment into gold is coming from institutions such as hedge funds - whose money needs to go somewhere.

When banks are offering very low rates of interest on savings - and money can be borrowed extremely cheaply - gold becomes attractive, observers say.

Inflation risk: Gold is seen as a hedge against inflation. Right now, inflation is pretty low, but mounting worries about potential inflation in 2010 may be enticing more investors to the precious metal.

Psychological: Gold has a "primeval" quality argues Adrian Ash of UK online gold exchange, BullionVault.com (which makes its money when customers buy and sell gold).

He says that while it is essentially a "lump of metal with little purpose", gold tends to hold its value over the long term and is not anchored to the value of cash.

This means that people are drawn to it in uncertain times, Mr Ash adds, though he cautions the price can be volatile.

Seasonal: In Western cultures, individuals buying into gold as an investment remains relatively rare. It is not the kind of advice you are likely to get from a financial adviser, for example.

However, in countries such as China and India, buying gold as in investment is more common. And at this time of year, in the run-up to the Diwali festival, there is a seasonal increase in gold purchases because the metal is traditionally given as a gift.

Indian farmers are also big gold customers at this time of year - seeing it as a way of keep their profits safe after harvest - free from threat of currency fluctuations.


DOES THE PRICE OF GOLD REALLY MATTER?
The reality for most people is that their main contact with Gold is when Spandau Ballet gets played on the radio.

Arguably its biggest role is as a sentiment barometer. A high gold price is an indicator that all is not well with the global economy.

It could be bad news if you are looking for an engagement ring or another piece of jewellery. Higher prices are likely to be passed on to shoppers.

On the other hand, it could be good news if you have gold that you no longer want and could do with making some money.

The rising price has seen an explosion in "scrap gold dealing" - where High Street shops and postal companies will offer to turn the gold into cash.

We should not get too carried away, however. When inflation is taken into account, gold is half the value it reached in 1980 in real terms, when it peaked at the equivalent of $2,350


Article Source;
http://news.bbc.co.uk/2/hi/business/8295464.stm