Gold Price is Falling as Stock Rise???

Something's wrong with this picture: the Gold Price is falling as stocks rise...The GOLD PRICE has fallen $150 an ounce from its top of early December, closing on Tuesday and Wednesday of Christmas below $1100, writes Bill Bonner in his Daily Reckoning.We expected a correction in the Gold Price. But we thought it would come along with a correction in the stock market. And stocks are rising.We take this as a warning: something is going on that we don't understand. That said, there's a lot going on that we don't understand. But the broad patterns generally make sense.Boom was followed by bust. As dear readers know, the force of a correction is equal and opposite to the deception that preceded it. The deception of the Bubble Era being exceptional, the correction would be exceptional too - even under the best of circumstances.But these are not the best of circumstances. Because several other things are happening...things that need to be reckoned with, too.The United States is losing its privileged place in the world. Americans now compete with many other people in many other places for the world's resources – including its savings.The international monetary system, an experimental system built of paper Dollars, may be falling apart. The days of cheap and bountiful energy are over.Governments are going broke. State governments. National governments. In Europe. In the Middle East. And in America.The engine of economic growth – Americans' willingness to go into debt in order to consume more and more of the world's output – has gone into reverse. And governments are meddling on an unprecedented scale...delaying and avoiding necessary adjustments, possibly turning an ordinary depression into a Great Depression...or even a Much Greater Depression.These are not small challenges. Any one of them would be a worthy crisis on its own. Put them together and you have the makings of a catastrophe.What will happen? Don't know. Wish we did.A series of mini-disasters? Or one big planet-wide blow-up? Or, are the authorities so smart that they can engineer trouble-free solutions to these challenges?If you have confidence in Obama...Bernanke...Geithner...Congress...the European Central Bank...the Bank of China...and so forth...well, you have no business reading The Daily Reckoning! Heck...let them figure it out. Everything will be fine. Go back to the TV.If, on the other hand, you have a sly suspicion that the authorities are headed for the rocks...you should own some gold. Traditionally, people Buy Gold when they are afraid things might not work out as planned.As near as we can tell, gold is fairly priced. It will buy about as much as it would have bought 500 years ago...or 2,000 years ago, for that matter. That's what's nice about it. It doesn't make you any money, but it doesn't lose you any money either.Of course, the Gold Price can still vary substantially. In the last bull market in gold – from the trough in 1967 to the peak in 1980 – gold rose 1550%. That was a good time sell. The next two decades saw the price sawed in half...and then sawed in half again.Now it has been going up again. Most likely, it is merely adjusting to the inflation of the previous three decades. Or perhaps it is anticipating more inflation ahead. As to that, we're not so sure. There's probably a long, dark, cold period of depression to go through before we get to the heat of hyperinflation. But then...who knows? As those challenges listed above hint, anything could happen.Here at The Daily Reckoning we are neither bullish nor bearish on Gold Investment. We don't know whether it will go up or down. But as to our confidence in human beings, we have no doubt. In our opinion, the world's most popular economists – notably Ben Bernanke and Paul Krugman – would probably make fine bartenders. They are good at providing "liquidity" but and not much more. They have no idea what is happening in the world of finance...and their idea of what to do about it will almost surely make things worse.Meanwhile, we feel we can count on Congress and the president too. The nation may already have a net worth of minus $70 trillion (according to John Williams of ShadowStats)...but they will surely keep spending until the nation goes broke.Typically, power begets gold...then gold begets power...and then both gold and power are begotten by someone else. The world never stands still, even for someone with a million Dollars' worth of Krugerrands in his home safe.The BRICs – Brazil, Russia, India and China – are begetting power. Their economies are growing much faster than the developed, mature economies of the west. They grew by selling products – often in Dollars. This left them with Dollars as financial reserves. They have little gold.For a very long time, Dollars were "as good as gold". Or almost. But now the power equations need to be reworked. The BRICs are gaining power...but find themselves still hostage to America's paper money. Inevitably, they're going to follow India's recent example...as well as the example of practically every nation to gain power throughout history; they're going to add to their supplies of gold.A rising power acquires gold. A fading gives it up. The US has more than 8,000 tonnes of gold...nearly 80% of its reserves. Meanwhile, China – America's most likely rival for superpower status – has only 1000 tonnes of gold. It keeps less than 1% of its reserves in the yellow metal. Put all the BRICs together and you get 1,500 tonnes, less than a quarter of the US hoard. And the BRICs have 10 times as many people.Official purchases of gold by central banks have been negative for many years. They still are. In the 2nd and 3rd quarters central banks sold more than they bought. Imagine if they suddenly went positive! If the BRICs wanted to bring their reserves up to just half the level of the US, they'd have to buy 2,500 tonnes.Looking to Buy Gold for your own personal reserves today? Make it simple, secure, instantly tradable and cost-effective at BullionVault...

Bill Bonner, 24 Dec '09 Read more at http://goldnews.bullionvault.com/gold_stocks_122420091

GET VETTED OR GET LOST!!!

Silence is fraud's best friend. Word of mouth is fraud's worst enemy. Pass the word!

Precious metals should never be purchased from or sold to anyone other than a precious metals broker or seller of good repute. Good repute can only be established by independent research performed by the buyer or seller before getting involved in any transaction.
There are many sites on the Internet that provide an excellent education about various precious metals such as gold and platinum, and one should never consider getting into the precious metals market without a thorough understanding of every aspect of the metal of interest, including its mining history, differences in value, history of values, market routes, all uses, best known dealers, political impact on the value, pitfalls, risks, what is possible and what is not possible, and much more.
Buying and selling gold can be as simple a transaction as working with a local coin dealer or jeweler for small amounts such as heirloom jewelry or a few coins. When the amounts are significant, transactions are much, much more complicated and should not be handled without experienced and specialized advice, again - from a reputable precious metals expert.
Scam:
Gold scams are among the most popular of the precious metals scams. Gold scams have been a traditional scams among the Nigerian fraudster families for generations.
Gold scams come in many forms, from buying phony gold mines to buying non-existent gold bullion. Many gold scam deals involve gold supposedly stashed in the Philippines, in Swiss vaults; left over from the Marcos regime, from World War II Nazis, straight from mines located in Nigeria or other African nations; in 99.9 gold bars, powder, refined, unrefined, and on and on.
Scam artists often want the victim to show up at some bank with a suitcase full of money. The money isn't going into the bank, the suitcase is merely being "exchanged for pure gold". Whatever the means of money exchange, it is always "in advance" of the release of [fake] documents or the non-existent gold or coated ingots. That is why these scams are generically known as Advance Fee Fraud.
Sometimes the scams are simple, sometimes complex involving securities, BLOCKED FUNDS, insurances, special transportation arrangements, PARALLEL ACCOUNTS, banks in several countries, the Federal Reserve, HISTORICAL GOLD BONDS, and whatever combination needs to be assembled to part the unwary from their money. Some of the more popular scenarios involve Arab princes or emirs (usually princes) and royal family names are bandied about with abandon. Regardless of the claimed title or affiliation, it is always a name or title that is meant to inspire a feeling of privilege in the target: Rubbing elbows with the rich and famous.
All documents are fake. Some were the genuine article once upon a time, but those shown to buyers or sellers caught up in these scams have been greatly altered to fit the occasion. This includes documents of authenticity, assayers' reports, customs documents, insurance documents, shipping documents, sales documents, provenance reports, ownership transfer documents, bank documents, storage documents, mine reports, etc., etc.
One must also watch for attempts at incriminating the targeted victim by way of persuading the target to lie about the source of the gold, supposedly in order to slip the shipment past local or international restrictions. This gives the fraudster leverage over the target to use at a later date to manipulate the target into obtaining more funds. The leverage is entirely fake, but the target doesn't know this and believes he or she has broken the law and may rot away in a foreign jail for the rest of his life.

"I NEED GOLD DUST BUYERS!"- GOLD DUST SELLERS BEWARE!!!

"I NEED GOLD DUST BUYERS!"- are the postings that I read all over the internet from business to business websites (b2b). What most alluvial gold dust intermediaries do not realize is that this can be an attractive catch line, but it is the one that can get you into the most trouble. The next following steps will usually consist of sending a SPA, FCO, or even worse...banking information including but not limited to MT103/23, MT760, MT799. DON'T DO IT!!!

Gold dust Sellers beware! My company, DREAM System, LLC has started a campaign to stop the massive frauds and scammers that take advantage of innocent gold dust investors. We have started informing ALL gold dust Buyers NOT to purchase until the gold dust Seller has been vetted (verified that they are real).

Not to worry gold dust Sellers! Since the gold dust Buyers are vetted too, you should have no reason to be paranoid with your alluvial gold dust transactions unless you're a fraud. Isn't it time you all found real jobs or work for a real gold dust Seller? It always amazes me the amount of energy, resources, and conning that goes into these fake gold dust transactions. Why not apply it to the real deal? DREAMS is changing the gold dust industry, so it's time you fraudulent gold dust Sellers move on!

Written by Roger Singh of D.R.E.A.M. System, LLC at www.24KT.cc or www.alluvialgoldconsultants.com