By Patrick A. Heller
Commentary on Precious Metals Prepared for CoinWeek.com
I get teased a lot as I present information that is overwhelming of the “doom and gloom” kind. I don’t really mean to come across that way.
However, I think it is important that people make decisions for their own financial well-being on the basis of sufficiently complete information. Without the full story, it can be difficult to make the best decisions.
What I look to pass along is significant information that just isn’t being reported by the mainstream media.
Last Friday, the Bureau of Labor Statistics reported that 120,000 jobs had been added in the past month. What the regular media didn’t tell you is that 90,000 of the alleged jobs increase resulted from the double counting of jobs from the birth/death adjustment.
An investment advisor who was recently interviewed on a local radio station in my area stated that one of the reasons for optimism for the economy was that consumer spending had increased from year earlier levels. So, it becomes my job to explain that if you reduce current retail sales figures by the increase in consumer prices over the past year, the actual quantity of goods and services purchased has declined.
When you see US stock indices rising higher and higher, I need to let you know that mutual funds have experienced a net outflow of investor funds for ten consecutive months. That means that the increase in the stock markets is being manipulated by the US government, not by investors.
As the price of silver fell suddenly last week upon the release of the March 13 Federal Open Market Committee minutes, you need me to tell you that this only occurred because of the short sales of paper contracts within a few minutes equal to 80% of annual worldwide mining output.
When the mainstream media gives almost no coverage at all, it is left for me to tell you that on April 5 the Egan-Jones Rating Co again reduced the sovereign credit rating of the US government.
Although you may be aware that the interest rates being paid to savers is now virtually zero, it remains for me to explain how this has hurt the finances of the elderly. With lower interest income to help pay for retirement,almost 3 million Americans aged 55 or older have entered the job market since the supposed “official end” of the latest recession in 2009.
When you hear other so-called experts opine that gold and silver prices are at a peak or in a bubble, you need to know that, on an inflation-adjusted basis, neither gold nor silver had surpassed their January 1980 highs.Further, it is difficult to claim that precious metals are in a bubble when only a very low percentage of investors own them.
You should never rely solely on the information I share with you, because I am only giving you part of the big picture. However, it is my hope that you find what I share to be of enough value in seeing the big picture that you justify your commitment of time to read it.
Patrick A. Heller owns Liberty Coin Service and Premier Coins & Collectibles in Lansing, Michigan and writes Liberty’s Outlook, a monthly newsletter on rare coins and precious metals subjects. Past newsletter issues can be viewed at http://www.libertycoinservice.com. Other commentaries are available at Numismaster (http://www.numismaster.com under “News & Articles). His award-winning radio show “Things You ‘Know’ That Just Aren’t So, And Important News You Need To Know” can be heard at 8:45 AM Wednesday and Friday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio and text archives posted at http://www.1320wils.com.