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Gold Bullion Bars

Monday, October 29, 2012

McAlvany Wealth Management: "Heavy emphasis on the metals to us is essential" I think where we do see a void is in monetary alternatives. The Fed is mismanaging our currency and the [European Central Bank] is not exactly a stable alternative in terms of the euro. So for individuals -- and we're seeing a growing trend with central banks -- it has defined a monetary alternative to the dollar. And to some degree we're seeing that move in the direction of gold says CEO David McAlvany tells Hard Asset Investor. We continue to see central bank purchases on the rise, and nonofficial purchases from the Chinese. Our contacts in Hong Kong, expect between 30 and 40 tons per month coming through Hong Kong for central bank purchases. So that's to us a compelling case for a move higher in gold over the intermediate and long term. And for the average investor, that does mean that silver is going to come along for the ride. It tends to follow along in fits and starts, much more speculative in that regard, but probably the better value between the two for the individual investor. Hard Assets Investor: So as a wealth manager -- which is your business -- gold is your No. 1 area right now that you would be putting a client's assets into? McAlvany: I think we're still in that strange place of sitting on the fence between a healthy cash position -- a very neglected asset class in my opinion -- and a healthy metals position, which would be allocated partially to gold and partially to silver, with the expectation that silver's probably the outperformer over, say, an 18- to 24-month period. So, not a short term trade, so to say.

But that ratio of gold to silver, 53-to-1, has come down from close to 60 earlier in the year. And for it to settle into the 40's would be normal, outperforming gold on the way. Hard Assets Investor: If your view is that people are going to continue to move into gold for safety, for protection, or on the belief that central banks are going to have to continue what they're doing, and somehow that's going to debase or devalue the currencies, why not just go all into gold then? McAlvany: Well, I think there is still the issue of deflationary snaps affecting individual asset classes. That could be asset-backed, mortgage-backed, commercial mortgage-backed securities -- pockets of vulnerability still there. Keep in mind we went over the last 30 years from $5 trillion in liabilities to a system that has $54 trillion in credit growth or liability. So this is where we do see at some point there will be a step back. We don't know when, or to what degree or even what asset classes are involved in maintaining a cash balance we think is prudent. But certainly a healthy, a heavy emphasis on the metals to us is essential. You hit the nail on the head. It's not necessarily the growth process, but it is as an inflation or deflation hedge. It always has been an insurance component. And that's where it should be identified as an insurance component. A monetary alternative would be the other way of looking at it.

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▼ 2012 (106) • ► November (9)

▼ October (71) • Gold's "upside is well beyond $2,000," CEF Holding... • Low Asian demand presents golden buying opportunit... • As the Fed's balance sheet grows, Gold could hit $... • McAlvany Wealth Management: "Heavy emphasis on the... • Gold "more likely" to top $2,000 next year, Sprott... • Germany knows: If you don't hold your gold, you do... • Standard Bank, UBS bullish on Gold Bullion • Central banks continue to drive gold prices higher... • "We have a positive view around Gold Bullion," say... • Barclays on gold: "We retain a positive outlook fo... • Billionaire: Gold is "the largest part of my portf... • Gold Bullion imports by India set to rise • China buying up Australia's Gold Bullion exports • Gold to average $2,000 in 2013, CIBC World Markets... • Eurozone crisis will keep driving gold even if inf... • Saxo Bank sees gold breaking record high in Decemb... • Slow economic growth ... has been the primary driv... • "We'll see $2,300 gold by January 2014," Casey Res... • The best month for gold is heading this way • Central banks' expansionary policies will boost Go... • Investors switching from gold ETFs to physical bul... • Five Reasons to Own Gold Bullion • Gold as a Viable Investment Alternative • Gold Bullion equals High Returns • "Gold is primed for a breakout," MarketWatch repor... • Credit Suisse raises gold, silver forecasts for 20... • Central Bank Gold Bullion Buying Hits Record • Gold is money, not a commodity, declares Deutsche ... • $3,000 and $5,000 Gold," Bank of America say • South African Strikes Halt 39% of Nation’s Gold Ou... • India's Gold Bullion Reserve jumps to $26 Billion • Investors should double their Gold Bullion holding... • "Gold Bullion on the verge of an important break-o... • Patience pays as gold looks to move higher • Rising investment demand will support gold, Saxo B... • "Gold Bullion is going to be one of the best asset... • "QE3 has reignited inflation expectations" • Signs of a resurgent gold standard emerging worldw... • Benefits of Vaulting Gold • Gold Bullion - Eternal Standard of Wealth • Central Banks from Russia, Mexico and Turkey bough... • Hong Kong to build Gold Bullion Vaults • $3000 Gold Bullion target • Gold Bullion move easily above $2,000 • Rothschild Wealth Management exec sees Gold Bullio... • Hong Kong gold exports to China rise 12% • Gold is the "Safe-Haven" • Vaulted Gold Bullion • Gold Bullion as an Investment Opportunity • Do Gold Bullion have the same Value as Money? • The International Monetary Fund is buying Gold Bul... • Positive Forecast on Gold Bullion • New Report suggests scarcity of Gold Bullion • China buying Gold Mines worldwide • World's biggest hedge fund still bullish on Gold B... • Central Banks lease Gold Bullion • What Factors Affect the Price of Gold Bullion? • Gold Bullion has good Long Term Support • This Move In Gold Bullion & Silver Will Look Spect...

• Gold rallies to highest price of 2012 • BlackRock exec predicts $2,400 gold by next summer... • Gold is money, not a commodity, declares Deutsche ... • Signs of Gold Standard continue to emerge in China... • PIMCO analysts call Gold Bullion a "compelling inf... • Investing in Physical Gold • Vaulted Gold Bullion as an Investment • Gold Bullion Shortages coming soon ! • Return to Gold Standard? Why Price Would Hit $10,0... • PIMCO fund manager buying gold bullion stake • First Asset Management Targets $2100 Gold Bullion • Gold Bullion continues to be a great Investment ► September (26)

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Richard Davey Consultants to the banking industry to supply gold bullion View my complete profile

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