Gold and Silver

A “Golden” Education: How I Trade and Profit from Shiny Metals

There is a wealth of information on the internet from gold bugs like myself. I have included some of the best links to understand at least why gold has been such a monster-appreciating 12 years in a row.

1. To better understand modern money mechanics (how banks create money out of thin air) and the intervention by the Federal Reserve (USA’s PRIVATE central bank)

Modern Money Mechanics by Chicago Federal Reserve Board (OUT OF PRINT)

The Creature from Jekyll Island: A second Look at the Federal Reserve by Edward Griffin
It’s hard to believe that the Federal Reserve was formed secretly by bankers on an island and voted on in the middle of the night on Christmas Day.

Youtube talk by Edward Griffin

Amazon book link: The Creature from Jekyll Island: A Second Look at the Federal Reserve

Gold and Silver have both been rather stagnant in consolidation since the rise after QE3 (QE infinity) was announced. I have been trading it moderately with shorter holding periods.

There is some sentiment that Washington will actually cut spending facing the fiscal cliff and automatic spending cuts that will get triggered. If they stop spending this could cause dollar to increase and gold/silver to sell off a bit. If that scenario happens, then that will be a longer term buying opportunity.

A lot of gold bulls would like to think that the panic trade and the rush to security during all of this  panic would cause prices to rise. However, that has not happened in the past (Euro zone crisis did not cause some of the same moves)