Silver Dollar Values Prices Skyrocketing As Jim Rogers Foretells Of Coming Financial Apocalypse

July 27, 2012 - PRLog -- From suppliers gold bullion prices fell to $1615 an ounce during Thursday morning's London trading - 0.12% off Wednesday's close - as stocks, commodities and also the Euro also traded lower and U.S. Treasuries gained, following news that two Spanish regions plan to ask for bailouts.

Silver bullion rose $.20 to $27.64 an ounce during Thursday's trading - a .73% rise from where it ended Wednesday. Learn more here at http://www.silver-dollar-values.com

Volumes of gold bullion held by exchange traded funds (ETFs) saw net losses last week, while on the currency markets this morning the Euro hit a brand new two-year low against the Dollar Monday, dropping below $1.21. As a result, the US Dollar Index, which measures the Dollar's strength against other significant currencies, hit a new two-year high.

"The great danger for the gold price will be the stronger Dollar, because of its long-term negative correlation to gold," says Eugen Weinberg, head of commodity research at Commerzbank.

"That's definitely nonetheless dampening the interest of investors from the USA ...but in Euro terms, gold is trading near six-month highs...it's more about Dollar strength than gold weakness.

European stock markets sold off sharply this morning, using the Euro Stoxx 50 index of blue chip companies down around 2.5% by lunchtime, and Spain's Ibex down 5.3%.

Yields on 10-Year Spanish government bonds meantime set a new Euro-era record Monday, rising above 7.5% following news on Friday that Valencia's regional government will ask Madrid to get a bailout. On Sunday, the Spanish region of Murcia said it also will seek aid, with newspapers reporting several other regional governments strategy to create comparable requests.

Spain's biggest region, Catalonia, is "working very hard to pay bills normally", its economy minister Andreu Mas-Colell told Italian newspaper La Repubblica.

"But the pressure on our treasury is very high because the markets are closed [to us]."
Elsewhere in Europe, officials from the European Commission, European Central Bank and International Monetary Fund - collectively recognized as the 'troika' - are due to go to Athens tomorrow to assess progress meeting bailout circumstances.

"If Greece does not fulfill these circumstances, then there may be no more payments," German vice chancellor Philipp Roesler said Sunday, adding that the concept of Greece leaving the Euro "has long ago lost its terror".
"There is no firewall about Greece," counters Paul Donovan, senior economist at UBS.

"Or, if there is, it is constructed of high quality, dry kindling wood doused in gasoline. If Greece goes other countries seem certain to leave...if politicians have lost a sense of terror over the prospect of a Greek exit it suggests that politicians have lost any comprehension of financial reality." Learn more here at http://www.silver-dollar-values.net

In New York meantime, the difference between bullish and bearish contracts held by noncommercial gold futures and options traders - the so-called speculative net long - rose slightly in the week ended last Tuesday, Commodity Futures Trading Commission figures show. The number of speculative long and short positions both fell however.

"Overall positioning in gold remains weak," says a note from Standard Bank.
"We are skeptical about the sustainability of any gold rallies over the short term."
The world's biggest gold ETF the SPDR Gold Shares (GLD) saw a second straight day of outflows on Friday, sending holdings of gold bullion down to 1254.6 tonnes, just above where they had been six months ago.
"ETFs are increasingly skeptical about gold," says Regular Bank, noting that gold ETFs worldwide saw a 13.7 tonne decline last week, the biggest weekly drop since March.
"A lot of fund managers are just content sitting on money without loading up on something at all," adds one trader in Singapore.

"They are happy to become in as stable a portfolio as you possibly can."
"Evidence of a substantial response from physical buyers is required first," says a note from UBS, "before the investment community can be anticipated to follow suit."

UBS adds that its gold sales to India "do not indicate any improvement as yet and neither does combined gold volumes on the Shanghai Gold Exchange, which have been 30% below average this month."
India needs to determine a "social and cultural revolution" in its attitude towards gold, according to the deputy governor of the central bank.

"Ninety % of the gold demand is jewelry or to offer to God," KC Chakrabarty told an audience in Mumbai over the weekend. "Both have to stop... Wearing gold as an ornament was a culture whenever you had been a wealthy society, whenever you were contributing to 30% of the GDP of the globe. Today, we have become a poor nation, we need to change our culture." My recommendation is to purchase gold and purchase silver while the gold price and silver price is reasonably cheap and supplies are available. Buy gold, buy silver today!

“Just because now you have a method to get [the banks] to borrow even more cash, this really is not solving the problem, this really is making the issue worse,” Rogers said.

Negotiations lasted throughout the evening into Friday morning and finalized the agreement that these banks could be able to have cash lent to them to recapitalize without growing a country’s spending budget deficit and without preferential seniority status.

The market euphoria brought on by the news of the agreement by European officials surged the Asian stocks as while the euro and danger assets like oil. And Rogers believes that the surge won’t last but the advocate of commodities-based investing does not hedge away from his joy that the commodities jumped a bit today following the news.

“I own commodities, I’m delighted they're going up today-they are going up a lot. [But] I’m not jumping into something.”

Summit leaders also agreed that euro region rescue funds could also be used to stabilize bond markets without forcing nations that comply with EU spending budget guidelines to adopt additional austerity measures or financial reforms.
Nations such as Spain and Italy have been burdened with sky-high borrowing costs - levels noticed as unsustainable for governments in the long term.

But even with nations like Spain getting such outrageous borrowing costs, Rogers feels this new deal doesn't enhance the solvency of its indebted nation. Obviously some have begin to forget that Spain’s central government spending budget deficit soared to 3.41% of GDP in the first 5 months of 2012. The EU limit is 3%.
He went on to say that “financial Armageddon” could be a perfectly acceptable result if it meant that governments were to stop rescuing these failing banks.

“What would make me very excited is if a few individuals went bankrupt or perhaps a few individuals started paying off their debt. We're going to have financial Armageddon anyways, when the rest of the globe is not going to give these people any more money.”

Rogers presents the idea of a monetary dooms day as being somewhat near, asking the question that no one seems to be considering…

“What are you going to complete in two, three, four years when the market all of a sudden says ‘no more money’ and also the Germans don’t have more money and also the American debt has gone through the roof?”

When the European officials really took a moment to look in the numbers and trends which occur throughout occasions of policy change and see that they're not a answer but rather just a temporary repair, perhaps issues could alter and Rogers sees it like this…

“How many times has this occurred in the last 3 years - they (EU leaders) have had a meeting, the markets have rallied, two days later the market says wait a minute this doesn’t solve the issue.”? Learn more here at http://www.silverdollar.cc