Just a quick update this week before we resume usual service with our weekly update every Wednesday afternoon.
The “big” news overnight was that the fiscal cliff has been averted. Disaster averted and 2013 will be a great year now. If only it was as simple as passing some legislation!
In fact, it is just a very short term kicking of the can down the road. The upshot of the bill being passed in the US senate is that there were virtually no spending cuts made and there will be tax rises for only the wealthiest 0.6% of Americans. So a major backdown by the Republicans as outlined by Mish Shedlock here.
But in 2 months we will see a return of the debt ceiling being breached. For now “accounting measures” (whatever that means???) are being used to extend out the time before the ceiling is once again breached.
According to the mind boggling US Debt Clock, (where do they get all that data from?) the US National Debt is currently at $16.32 trillion. So not far away from the $16.4 trillion current ceiling.
The US will receive $2.454 trillion in federal tax revenues for the year. But it’s spending is a whopping $3.540 trillion. So this is a more than 50% deficit over spending.
So the point of these numbers is to show that there is no easy way out. The US Government will have to continue to fund its programs by going to the US Federal Reserve and borrowing more money into existence. So expect more debt and more money being created out of nothing. For how long? Well, for as long as it still can be. Maybe longer than any of us thinks?
Back in early November we wrote that we thought the debt ceiling was the more important topic to focus on and we still think this is the case. The focus will just happen a couple months later now.
And in early December we mentioned one “solution” being touted was getting rid of the ceiling altogether. So in another couple of months we’ll see what the central planners do to “solve” the problem. Whatever it is, you can almost guarantee it will be a further can kick but maybe a bit further down the road than 2 months.
Why should we care about this down under?
Because as goes the US (and world reserve) currency so goes the world. As we’ve said before while it may not happen in the near future we see a time when NZ may join the money printing circus. But even if we don’t the US, Japan, and Europe will continue to “export” their inflation to us anyway.
Print or die remains the catch phrase of governments throughout much of the world.
There has been little change in the local price of Gold over the past week. Currently it sits at $2022, little changed from $2025 last Thursday. With the fiscal cliff “solution” we’ve just discussed gold went up overnight but so did the NZD dollar, now back over 83 cents.
So we are still above the downward trend line that was broken out of in late August.
Silver is up slightly on last week. Currently at $37.15 per ounce compared to a week ago at $36.59.
So both metals have finished 2012 with very slight gains by our quick glance. Keep a lookout next week for our full wrap up of precious metals in NZ dollars for 2012.
And see the end of this email for a couple of articles on the website.
A final reminder that tomorrow is the final day with our main suppliers closed. So back to business as usual from Monday. For today and tomorrow for the purchase of local products, the only supplier open is NZ Mint, who are open Thursday 3rd, Friday 4th January 2013. Products that NZ Mint offer for sale are the likes of the 1oz gold kiwi coin and tubes of 20 x 1oz silver ferns, or gold and silver Swiss pamp bars.
Please use our code GSG 001 to get a price reduction if you order through them. Read more on this here.
We do have other options for the likes of Canadian gold and silver maples, etc, but only for orders of $10,000 or more. So if you’d like to take advantage of the lowest prices since August get in touch.
Enjoy the rest of the holidays if you’re having some. Get out and get some sunshine and Vitamin D!
1. Email: email@example.com
2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
3. or Online order form with indicative pricing
Have a golden week!
This Weeks Articles:
|Weaker NZD Supports NZ Gold and Silver Prices|
This Week: Gold and Silver and NZD charts Some Holiday Reading Holiday Hours and Products Available Hope you’ve managed to enjoy a couple of days off at least and aren’t spending too many minutes worrying about what the markets are doing! As was always going to be the case, markets in general have seen very […]
|How You Play the Cards Is More Important Than What You Are Dealt|
This week we have a couple of articles that are more of an educational and philosophical nature than usual. But this is the time of year that is good for reflection and contemplation. Look out for our round up of gold and silver’s performance in New Zealand in the New Year… How You Play the […]
We are not financial advisors, accountants or lawyers. Any information we provide is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we discuss is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.