As gold price goes through the roof, the entire UK is running out of Gold coins and orders are increasing. Ive had more orders this month than the rest of the year combined!

Dear Reader

You will have seen the soaring prices of Gold over the last month. Press have had a field day with Gold as all our predictions are coming true. The Zen Gold ATM even made it onto the One Show on BBC!

Orders are through the roof and for the first time in our history we are unable to complete on an order due to the lack of Gold in the UK! Yes, really! No dealer in Britain has enough stock to supply my customer and I know them all. (It’s not even a big order!)

For those of you who have been on your yearly holidays or hiding in a box just go online to see whats going on in the world before it’s too late. If you want proof of the suppression of gold go to Bloomberg and read any of their latest articles, on the ‘plummeting’ price and recent losses. (Gold made a profit of over 9% this month and 25% in the last 6 months!!)

So what will Gold go to? Is it at a peak? Is Silver better?

Find out on my presentations which can be found on youtube by typing in Zen Gold or on the website at : Gold & Silver Seminar. Its 1 hour long split down into 15 minute segments. A great summary of Gold and Silver as money and the economy including price predictions and future events. Recorded in Jan 2011 you will see many of the things I foresaw have already happened.

A huge name in the world Gold market is Mike Maloney and for those who don’t want to take my word for it can watch his video at : $20,000 Gold. That’s right he is predicting Gold to go to $20,000 an ounce and has the data to prove it. Its 1.5 hours long so make sure you have time.

As I write this the last market close of Gold was $1760.

Dear Reader

Those of you who haven’t been watching the Gold price of late should take heed now!

I’ve talked in the past of the inevitability of a price rise due to the coming US default (August 2nd) and also the bailouts of Greece, Portugal, Ireland, France (others to come?)

It closed this weekend just under $1600 a new all time record, with Silver just under $40, both of these barriers will be tested next week, so I’d get in quick if I were you.

Another article that caught my eye on the BBC and the reason I am writing today is the recent find of a hoard of Gold coins in France.

“A French couple have found a hoard of gold coins worth at least £89,000 in the cellar of their home in the town of Millau.
They were working on their drains when they dug up the 34 coins in a little clay pot”

Whilst 34 coins isn’t bad, I’d hardly call it a hoard. As you can see from the pictures its barely a handful, yet at an average of over £2,600 per coin that’s a pretty good find!

These coins date from 1595 to 1789, around Louis XIII to the French Revolution. We know they are worth £89,000 now, but what did that mean to someone then?

It took a lot of digging as people mainly were “self employed” back then as blacksmiths, farmers, etc, so there really wasn’t an average wage to compare it to. So using a few different sources of information I managed to compile a guide to its value, though with my limited knowledge of 17th century France it’s a bit of an educated guess.

In the early 1600’s a labourer on the land would have earned around 3 sous a day, but with the latest coins dated in the late 1700’s it was around 15 sous per day. With 20 sous in a franc and a Gold Louis XIII coin worth about 20 francs. That’s a yearly wage of about 14 Gold coins. So this hoard represents under 2.5 years of savings (assuming you spent nothing at all!)

Not in my mind this raises 2 main points which are food for thought.

Firstly you have savings in coins that stretched over 200 years but STILL retained value and were legal currency. In fact they still have value NOW 400 years later! Try paying in shillings now, only 40 years later.

Secondly a farm labourer in the 1700’s would have earnt (the equivalent of) £89,000 in less than 2.5 years or £36,650 a year. That’s almost double the average annual wage now.

Thanks BBC, if I ever wanted an article to prove my argument that;
(1) Gold retains it’s value over time
(2) Gold always has been and will be redeemable
(3) Inflation devalues your currency

Hopefully a lesson learnt today and I don’t mean that if you earn less than £36,650 you earn less than an 18th century farm worker, I mean GOLD IS MONEY.

Doesn’t matter how big the number you get in your wage packet is, if there is no value behind it. Things are coming to a head at an ever increasing rate, don’t get left empty handed when the crash comes.

As currencies devalue Gold WILL rise, its cause and effect. In early 2009 I would have given you 2 ounces of Gold for a £1000, now its only 1 ounce. How long will you wait?

Zen Gold recently launched the Gold Vending Machine at Westfield Shopping Centre in London. Loads of press activity and selling like wild fire, great event, you should check it out!

Dear Reader,

Many of you will have seen the program on Channel 4 – Dispatches “The Real Price Of Gold”. If you were following my twitter @zengoldcom or my newsletter you will have known in advance that this was coming.

For the rest of you with news reports, newspaper articles, buses around london and other media sources you would have to be blind to have missed it in one form or another.

It is unfortunate that it takes a programme such as this to highlight the mining practices followed in some parts of the world. Its unfortunate that an organisation like Fairtrade and Fairmined Gold needs to exist to bring to light such practices.

As a geologist and Gold dealer myself I have visited many gold mines in my time, though none even came close to the disgraceful working practices shown in the programme. I was aware that these practices existed as I have attended lectures by the Fairtrade and Fairmined Gold association and pledged my support.

This initially led me to give my support to the foundation and set up my own webpage for this organisation, asking others to show their support to this cause. The webpage has been live since April but as yet I have seen little support from people in aid of this cause.

fairtrade-gold

So in light of recent events I though it was time to bring it back to the front of peoples attention and ask for you to support this worthwhile cause to bring about a change in working practices in some mines.

I will continue to keep abreast of such subjects and report to you any developments. In the meantime Zen Gold will continue to source as much recycled Gold from suppliers as we can and use our weight in the business to continue to apply pressure to bring about change.

Q. Will ownership of gold and silver be prohibited on July 15, 2011?
A. No, not for those who own physical gold and silver but it will affect US citizens who own paper gold and silver.

The Dodd-Frank Act was bought about to bring financial stability and improve accountability to the financial system. It’s just another raft of financial regulations.

FOREX.com, an online brokerage house specializing in trading fiat currencies, has determined that their US clients having XAG and XAU trades “over the counter” will need to be liquidated by July 15, 2011.

Below is a copy of the email sent to US clients by Forex.com

From: FOREX.com
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading

Important Account Notice Re: Metals Trading

We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.

In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.

We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.

We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.

Sincerely,                         The Team at FOREX.com

This is a clear indication of why you should take physical delivery of your gold and silver. Also an indication of things to come.

This sets a worrying precedent but an inevitable one. The more people turn to the safe havens and profitability associated with precious metals the more regulations will come into place to prohibit it. Just like in the great depression when the US made physical Gold ownership illegal!

Take heed of the signs being shown to you. We can see the frequency of financial disasters increasing as fast as the price of Gold. A time is coming when we will each need to fend for ourselves against the regulation of the system. Purchase your physical Gold and Silver whilst you still can!

Dear Reader,

You will have all seen recent rises in the Gold price, in fact this is the third week running we have hit new all time record highs in Gold measured in GBP (Great British Pounds). The demand for a safe haven for peoples money is steadily growing and the price suppression by the manipulation of the market is steadily breaking under the weight of the demand.

Obviously one of the worst hit areas is Greece, with bailout number one having failed to stabilise the economy and bailout number two imminent. In fact I write this in late June 2011 and I think you’ll see this plan swing into action within the month. Largely because we know that Greece doesn’t have enough money to last another month, so its bail or collapse!

In response to this Greeks are doing the only sensible option left open to them and jumping from the sinking ship. (In financial terms anyway). Moving their money to safe havens and assets like Gold. See the excerpt below taken from the financial times……

“Greek citizens are emptying savings accounts and buying gold as they brace themselves for the possibility of a sovereign default and a run on the banks.

Pledges by socialist prime minister George Papandreou that his government would “save the country” have been widely discounted by the public. However, parliament gave him a vote of confidence late on Tuesday night. The socialists have a six-seat majority in the 300-member house.

Sales of gold coins have soared as savers seek a safer and fungible source of value.

“When the global financial crisis started, our sales of coins to investors overtook bullion for the first time,” said Harry Krinakis, at Sepheriades, a Greek precious metals trader. “Now the sales ratio has reached five to one.”

Tomas, a computer technician, has exchanged his euro savings for gold coins: “I keep them at home just like my grandmother did in the Second World War.”

Gold coin sales increasing over 500% is a sure sign that people have lost faith in the governments ability to manage their debt problems. Safe havens outside of their control is the only sensible option.

Whilst 500% is quite a staggering number it doesn’t really show the scale of the problem as 500% of 1 is only 5 and I’m not a man to give figures for shock value, information is king! (I wanted to say ‘Information is Gold’ but it seemed a little over the top in this article)

Lets measure this crisis in something we can all relate to ….MONEY!

In the first quarter of this year between 1.5 billion and 2 billion euros were being withdrawn from Greek banks EVERY MONTH. So with an 8 hour working day that’s just under 12 million euros an hour, every hour of every working day!

Now that IS a quantifiable figure showing the condition of the banking system. Worse still is the fact that last year 30 billion euros were withdrawn which is 2.5 billion every month, even more again!

30 billion euros last year represents 12.3% of total savings in Greece, with the crisis worsening and expectations of a second bailout increasing the pressure, how long do you think it will be before the banks decide to close their doors to stop the deluge of withdrawals?

Some of this money was transferred offshore to economies that were perceived to be more stable, such as Cyprus or Switzerland. As this global economy worsens even the offshore transfers are decreasing as their stability is not so ensured.

“We can’t trust the politicians to get us out of this mess and have to protect our families,” said Sakis, a garage owner, at an anti-austerity protest in Athens’ Syntagma Square. “A bank collapse has got to be in the cards.” He added he had withdrawn his savings and placed them in a bank safe deposit box for security. “Who cares about interest right now?”

Those of you with even the slightest knowledge of the financial system will appreciate how closely related all our economies are these days, even the banks are all tied to each other in innumerable and inseparable ways. What affects one of them, WILL have a knock on effect for the rest.

The US are still in denial about the next phase of quantitative easing but I would place good odds on seeing a new bailout package by the Federal Reserve in about 6 weeks time. Greece’s figures may be closer to home but make no mistake that a mass devaluation of the dollar will be catastrophic across the board.

The Greeks are taking action to secure their future, I hope you have had the sense to do so too.

Dear Reader,

I was glad to be able to report on House Bill 1716 and to make it more common knowledge when it was released earlier this year, as it has serious repercussions to anyone related to the Gold business, whether buyer or seller.

As with all things after the initial turmoil has died down it is swept under the carpet to be forgotten about. I am not one to forget and would like to bring it back to the forefront.

A full copy of it can be found here. Though I have summarised the main points below.

House Bill 1716, is a bill passed in Washington on May 10th 2011 which becomes law on the 22nd July and is an ominous precedent of things to come.

It covers the control of the precious metals industry, both buying and selling and should it spread it will affect me and YOU! It is bought in under the pretence of lowering crime by regulating the sale of gold jewellery to pawn brokers and “cash for gold” type institutions BUT encompasses every business and everyone!

To summarise the main points:

1) It controls “secondhand dealers” BUT the definition of this is anyone buying selling or owning secondhand property including precious metals.

2) “Secondhand property” is defined as anything which is not new, including metals in any form, bullion or coin.

3) The “dealer” must record time, date, name, signature, date of birth, sex, weight, height, race, address, telephone number, governement ID number, photo, FINGERPRINT and MUCH more!

4) This applies to all transactions over $100 (£60) (AND under $100 but without the fingerprint)

5) IF over $100 you are NOT allowed to use cash but a signed instruction only.

6) These records and goods can be viewed by ANY commissioned law enforcement officer at ANY reasonable time.

7) Any precious metals bought by a dealer are not allowed to be removed from the property for 45 days!

8) If  a law enforcement officer has published a list of persons that have been convicted of any crime involving theft within the last 10 years, the “dealer” must not engage in a transaction with that person.

Draconian would be an understatement and it does not bode well for things to come in the following 18 months.

When I had initially written my piece to my subscribers back in February it was but a warning of something that may happen but now it has been signed by the president and governor it’s official and becomes law next month.

As with all things you can be sure this is just a prelude of things to come. A toe in the water as a tester before jumping right in. The US government have made private Gold ownership illegal before. In fact it was during the last depression when the same things were happening in the economy and people turned to precious metals as a safe haven, a way to save their hard earned money from the money grabbing hands of the government.

There are many ways to avoid or ‘negotiate’ around such pitfalls, many of which can be found in the guides section of the website where I give free information on all aspects of Gold ownership.

As I write this (13th June 2011) the Gold price has just dipped to $1515. I believe this will be a short term blip on our upward climb, so it represents a good opportunity to buy. If you’re reading this at a later date and I was right, maybe its time to start listening and protect yours and your family’s future. Times are tough but they are going to get much tougher soon.

Dear Reader,

Sometimes you have to query the logic of decisions and the motives behind them. Hopefully I have adequately assessed this particular conundrum.

Reading my previous reports you will know of the happenings on Gold in the USA. Most recently (late March) Governor Gary Herbert of Utah signed a law to allow designated Gold and Silver coinage as legal tender in the state.

Firstly that’s fairly odd as the law already existed, so now there’s 2 laws saying the same thing.

Secondly as both Utah and Federal law now stand, anyone can use the American Eagle as legal tender at its face value. Which is $50. Unfortunately to buy the coin it is over $1430 as its an ounce of gold.

Hopefully you can now see my dilemma in understanding the logic of this law.

BUT ………and a very important BUT this is…….

The motive behind the scenes is the key to this. Firstly it points out the discrepancy between the value of the dollar and the coins which were issued as legal tender. Clearly illustrating that the dollar has lost more than 96% of its value since the issuing of the coin.

Secondly it shows the distrust of the federal reserve and its monetary policy of continued expansion.

So… what has this got to do with you?

From previous reports you will have noticed that the British government is following the EXACT same lines of monetary expansion which is devaluing the money in your pocket. . How long do you think it will be before we follow suit? With some brave souls demanding a legalised form of Gold and Silver currency.

A time frame I cannot give you, but I can predict the change in price when that happens. Last years meteoric rise of 30% will seem like a footnote comparatively. My suggestion is to buy now as a short term increase is imminent and all long term predictions are up. Dont miss the boat, its one of only a few going in the right direction.