December 20, 2007 by david.pennington.

Platinum Spot Price Record

Amid increasing demand and a shortage of mine supply, the platinum spot price rose to an all-time record high. Check out the platinum spot price chart below…

The platinum spot price rose to a record $1,526.40 an ounce as supply disruptions in South Africa and growing industrial and investment demand pulled positively on the market.Supply Shortages Support Platinum Spot PriceA shortage of mine supply has plagued the platinum market for the past few years. When it’s all said and done, we expect a supply deficit of about 265,000 ounces in 2007, making this the seventh in the past eight years the market will record a shortfall. In 2006, there was a small mine surplus of about 65,000 ounces.Most recently a string of deadly mining accidents in South Africa has slowed and in some cases even stopped production in South Africa, where 90% of the world’s platinum is mined from only three major deposits. More than 180 South African workers have been killed this year in mine accidents, prompting nearly 250,000 workers to strike in a one-day protest earlier this month.I expect these mining accidents to increase the already rising production costs as a result of tighter regulations within the South African mining industry. This will in turn continue to negatively effect platinum mine production in 2008 and beyond and positively support the platinum spot price.

I have just recently purchased several first- time ever Platinum 2 coin sets. The US Mint decided to take advantage of the great popularity of the 2006 20^th Anniversary Silver Eagle 3 coin set. The Reverse Proof in the Silver set was the most sought after coin of the year. Now the Mint has released a 2 coin Platinum set commemorating the 10^th Anniversary of the release of the Platinum Eagle coin in 1997.  The set consists of the beautiful Platinum Proof and the even more astonishing first ever Reverse Proof Platinum coin.

Please call me at Pennco Coins at 425-868-4966 for the lowest price available on these Platinum Coins. We have sold as much Platinum this year as any dealer. We love Platinum. Our clients have been richly rewarded for owning Platinum. If you have not bought any Platinum yet, it’s time to get started. The price is going to continue to rise.

Posted in Uncategorized | Print | No Comments »

December 14, 2007 by david.pennington.

FITCH DOWNGRADES $29 BILLION IN SUB PRIME LOANS 

http://biz.yahoo.com/ap/071121/fitch_cdo_ratings.html?.v=1

A PERFECT STORM FOR GOLD - SUPPLY DOWN, DEMAND UP

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/11/15/bcngold115.xml

MORE FUEL ADDED TO FIRE OF FINANCIAL CRISIS
 


Here comes more. Today please add CLOs (securitized corporate debt) to the disintegrating financial system. This additional piece of over the counter paper weapons of mass financial obliteration is securitized corporate debt. Markets haven’t examined the biggie out there and that is the combination of auto lending to anyone over 50 degrees F. and the ubiquitous credit card debit that has ballooned by being used to pay for gas and now heating oil.
 


The size of the mountain of over the counter derivatives is above $450 trillion dollars. The size of the world economy is slightly above $145 trillion.
 


What do you think the risk factor is on $450 trillion worth of garbage paper, from CDOs, CBOs and now CLOs?
 


Is it $2 trillion like the London Financial Times said yesterday; is it $20 trillion or maybe even $200 trillion?
 


The thermometer of this meltdown is the dollar and inversely, gold.
 


Keep this axiomatic concept in mind. The jumping up and down of a thermometer cannot and will not make the mess cooler. It will only make gold go higher because it presents a false face of the systemic financial collapse. Operation “White Noise” is an effort to break the thermometer so the brainwashed many do not get alarmed. The alarm, just like this day in Asia and Europe, will ring and that ring sounds to me like $1050 - $1650.
 


In the 70s gold shares lagged into the first cross of $850. Gold shares led gold on the next rise by a huge margin.
 


This is it!
 


Have you made the simple moves to free your assets from intermediaries? 
 


Do you hold paper certificates of your long-term share investments? 
 


Have you ordered your coins delivered? 
 


Are you still investing via Internet financial entities? 
 


Do you have balances anywhere in excess of $100,000? 
 


Do you trust FDIC to function perfectly if there is a significant call on it from many depositors of many banks? 
 


Do you trust SIPC to guarantee your cash and security housed by many with Internet financial entities? 
 


Are you alert to the many scams breaking out in the silver and gold arena? 
 


Have you done anything to protect yourself, an activity easily reversible, and at a cost called chump change?
 


This is it. ladies and gentlemen, prepare to defend yourselves.

Posted in Uncategorized | Print | No Comments »

December 12, 2007 by david.pennington.

1. Penncocoins allows you to deal directly with the owner, Mike Pennington.
2. Our lower overhead means you pay lower prices.
3. We do not employ high pressure sales staff.
4. All transactions are held in the strictest confidence.
5. Our significant market presence enables us to search the market for the highest quality coins.
6. We are members of NGC and PCGS grading services. These are the top two in the world and we will not sell any others.
7.We are one of the few dealers that allow coin purchase 24/7 on the Internet.
8. Mike Pennington is a consultant and advisor who will work specifically to meet your Precious Metal goals. We are not just order takers. CALL US BEFORE YOUR NEXT PURCHASE, YOU WILL BE GLAD YOU DID.

Posted in Uncategorized | Print | No Comments »

December 5, 2007 by david.pennington.

There are many pundits who believe the price of gold and silver will experience a major correction in the near future. This is by itself a good contrarian indicator that prices will firm after a minor decline and then continue its bull run toward $1,000. It’s inevitable because all of the fundamental factors that influence the price of gold are positive. The dollar continues its decline, global economic woes due to sub-prime lending problems continue to get worse, our largest financial institutions are extremely weak and the world’s geopolitical crisis are increasing instead of declining. All of this is very positive for gold and silver. DO NOT BELIEVE WHAT YOU HEAR ON MAINSTREAN MEDIA. They simply are mouthpieces for a desperate government striving to delay the collapse sure to come in the near future. BUY GOLD AND SILVER BULLION and begin accumulating an investment grade portfolio of high quality coins. It is the best single way to protect your family’s assets. 

Fully Half of Credit Card Holders Could Fail to Repay. 

A Double Whammy of Foreclosures and Credit Card Crunchies Could Be Mr. Banker’s Death Knell. 

“Issuers of credit cards could normally expect the top 50% of their payers to provide the required cash flow keeping money moving with enough liquidity each month. This cash keeps those lenders in business. If this payment failure, we see looming in the next two quarters dies, the lenders are in very serious trouble. They will not have enough liquidity to manage the business of lending.” - Traderrog 

Bank’s Denied Income Streams 

The third whammy hits when consumers are denied more credit after failing to repay mortgages and credit cards. This effectively kills economic expansion. The next whack is the banks will no longer have any income. These lenders will be stuck with servicing major overhead on empty foreclosed homes and non-payment of billions in unpaid credit cards. Small business loans cannot be issued as this credit pool can sometimes be scarier than house lending. What can the banks do to earn income? They have little or, zero choices to make money to operate their banks in this deadened environment. 

Big Bank Disasters Ahead 

Let’s not forget the Federal Reserve and its representatives are composed of the largest international bank members who control the ability to set interest rates and print money. If these big boyz cave-in from the aforementioned problems, we are all in world of hurt. From the inception of the Federal Reserve in 1913 to the present, they have inflated away and destroyed 98% of the U.S. Dollar. Considering their current predicament, while letting the dollar crash, it appears they are determined to finish it off once and for all.  

What happens when banks have no way to make money? What happens when the Chinese are pushed to the wall on our crappy bonds, notes and bills? Where is the pain level when the Chinese Central Bank says, okay, its time to pull the plug? We all know banks have FDIC insurance for the depositors covering a certain level of money on deposit. Know how much they cover? TheArlington Institute’s John Peterson said, “The actual liquidity reserve of the ‘insurance’ that Americans view as their safety net is 1/100th (of) the actual exposure of outstanding deposits. The actual coverage ratio for the Bank Insurance Fund (BIF) fell below1.25% in 2002, the same year that less stable credit practices were adopted by America’s leading banks.” Deposit insurance is no insurance. 

Mr. Peterson further stated, “The funny part is that the Federal Government will be on holiday when all of this happens. There will be no one to put freeze actions and moratoria on actions. The only way you stop the cataclysm is to put together civil actions on deposit withdrawals.” He expects the credit card non-payment event to strike in December next month during the holidays.  

Credit Crunchies Implode and Currency Disasters Magnify the Mess. 

“Our skidding dollar is reported as a plus by Pollyanna analysts as this creates larger USA exports. What they are not addressing is the terrible losses imposed on foreign holders of dollars, bonds, notes and bills held by China, Japan and Middle Eastern oil producers. These people are not stupid and as Armageddon-Dollar-Day approaches they’ll seek dollar escape routes many of which are in play right now.” - Traderrog 

Several new currency and banking approaches are being utilized. The obvious ones are those massive dollar holders are moving to Yen, Euros, Swiss Francs and the dollars of Canada, New Zealand and Australia. Canada and Australia are perceived to be the commodity (mining) dollar nations while Switzerland is the quality bank of last resort. In their 256 year history the Swiss have never defaulted. Who else can claim this? 

Secondarily, and more importantly, this foreign U.S. dollar denominated cash is also buying USA companies in their entirety. One wag said all of America is for sale. In our view, the best buys of all for this cash horde are those valuable mine mineral reserves in the ground, crude oil and natural gas reserves, and very large expensive to build one-off buying opportunities in major port facilities, refineries, and similar valuable commercial installations and investments.  

For example Airbus in France got into financial trouble building their huge jumbo airplane now behind schedule. They need more airplane orders and cash right now. Boeing has been taking most of the new order business. Therefore its logical that China ordered yesterday, $17.5 Billion of new aircraft from Airbus. No doubt they will pay with skidding U.S. Dollars. Nice new airplanes for crappy confetti cash is a very good trade in our view.  

Mr. Peterson said, “When February comes, the Chinese are going to do something as they will have to decide what the exposure is going to be with the (U.S.) Treasury. As I see it, they have to dump the Treasury. They only keep it because they can use it—they have 43% (of holdings) direct/indirect of U.S. treasuries so they’ll dump them on the market.” 

The American Treasury Department is already in hot water trying to sell enough new bonds and notes to keep raising the billions needed daily to keep this country afloat. If and when China dumps their mountain of paper, the Treasury will have to raise interest rates to sell more. Further, under the circumstances, we doubt they can do it as who would want it?

Posted in Uncategorized | Print | No Comments »