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Saturday, May 15, 2010

Gold World News Flash

Gold World News Flash

Confiscation

Posted: 14 May 2010 07:06 PM PDT

(The good news about silver, and gold!) Silver Stock Report by Jason Hommel, May 14th, 2010 More of my readers ask me about confiscation than any other issue. I continue to refer people to my article from 2008, but it's time for an update. http://silverstockreport.com/2008/confiscation.html I stand by what I wrote in the past, but there is more to say. First of all, gold in the hands of the American public has never been confiscated, never can be, and never will be. confiscate 1. To seize (private property) for the public treasury. 2. To seize by or as if by authority. See Synonyms at appropriate. adj. (knf-skt, kn-fskt) 1. Seized by a government; appropriated. 2. Having lost property through confiscation. The only gold that has ever been confiscated was gold held by banks for their customers ! Let the buyer beware who owns ETF's, certificates, bullion accounts, or those holding gold in some storage program...


Gold Technicals vs Gold Parabola!

Posted: 14 May 2010 07:06 PM PDT

Graceland Updates 4am-7am www.gracelandupdates.com Email: [EMAIL="s2p3t4@sympatico.ca"]s2p3t4@sympatico.ca[/EMAIL] May 14, 2010 1. The GPP (Gold Price Parabola) is overshadowed only by the GVP (Gold Volatility Parabola) A HSR band (horizontal support and resistance band) is not a top or bottom turn calling point. A turn might occur there, but that’s of minor importance. The more significant the HSR band is, the greater the amount of supply and demand that is going to occur there. Gold 1225 is a hugely significant point, and, horrifically, only JP Morgan has noted the “ultimate significance” of price rising above there. 2. The 1225 area is a now a key demand point. That does NOT mean YOUR tactics are to “sell it all now, so I buy it all back cheaper at 1225”. That’s a clown act. 1225 is simply an area where additional capital should be allocated. Price can move all around the 1225 zone. It’s a band of d...


Barry Allan: Intermediate and Development Plays Are the Golden Ticket

Posted: 14 May 2010 07:06 PM PDT

Source: Brian Sylvester and Karen Roche of The Gold Report 05/14/2010 In this exclusive and revealing interview with The Gold Report, Mackie Research Capital's Barry Allan, always among Canada's top-ranked mining analysts, says the European currency crisis and crippling debt problems will push gold—and the U.S. dollar—higher throughout the rest of 2010. But gold and the greenback may not be the biggest winners as a result of a faltering euro. Allan suggests other currencies could have the most to gain as investors seek other havens. Allan also sheds some light on why the best bets in the gold sector are intermediate and development plays. The Gold Report: Barry, the last time we spoke, you told us gold typically has a rough first quarter. Tell us how the yellow metal fared in Q1. Barry Allan: It's typically the end of the first quarter where gold gets into problems, and then into the second quarter. We're kind of still in that process. What we did see ...


Euro At Par With The US Dollar?

Posted: 14 May 2010 07:06 PM PDT

View the original post at jsmineset.com... May 14, 2010 08:21 AM Dear Friends, Some commentators are talking a euro at par to the dollar. I assure you that would be the end of the union and the beginning of the attack on the dollar that is certain to come. If you have the emergence of national European currencies as a result of the failure of the union, the mirror image strength of the dollar would instantaneously disappear. Credit default swaps would turn their vengeance on the dollar. The Drachma would be incinerated. The Swiss and DM would be the stronger units. If the EU fails so does the USDX. With no mirror image to hold up the dollar artificially, the US dollar will fall faster than Greece's credit. Dear Jim, You said that if the European Union breaks up there will be no USDX index to mirror image the euro. I don’t understand. Regards, CIGA Arlen Dear Arlen, The USDX would be around, but no longer reactive to the euro. The euro would be replaced with ...


Hourly Action In Gold From Trader Dan

Posted: 14 May 2010 07:06 PM PDT

View the original post at jsmineset.com... May 14, 2010 09:50 AM Dear CIGAs, Gold priced in Dollar terms made a brand new all time high in overnight London trade before coming into New York where the sellers tried their luck at taking it lower as the equity markets fell apart and the Euro plunged further into the abyss. Sadly for the sellers, once the initial knee-jerk selling response across the entire commodity sector was initiated and gold moved lower, buyers came back into the yellow metal and took it higher. There still appears to be a "buy the dip" mentality in gold which is providing support for the metal and allowing it to shrug off some of the algorithm Dollar related selling. You have to feel a bit of sympathy towards the European monetary authorities (not really – my concern is for the citizens of these various countries and not the monetary officials or some of the political leaders). The poor guys dithered and withered while the Euro was crashing around them finally c...


The China Bubble, Incredible U.S. Mortgage Stats, The Powerful Dollar Rally and More!

Posted: 14 May 2010 07:06 PM PDT

The 5 min. Forecast May 14, 2010 11:10 AM by Addison Wiggin & Ian Mathias [LIST] [*] China: Boom or bubble? The evidence we’re gathering to prepare for our visit [*] How Chinese law could soon prop up Chinese stocks [*] Five months into the dollar rally, a powerful reason why it’s nowhere near over [*] 96.5% -- the number that demonstrates Uncle Sam IS the mortgage market [*] Reader contemplates gold confiscation and whether to flee overseas [/LIST] We open this morning with a few questions: Is the Chinese economy in the throes of an epic bubble and, therefore, on the verge of collapse? Better yet, does it even matter? These are not academic questions. We’re getting on a plane to Beijing tomorrow morning to scope out a potential business partnership there. Bill Bonner will be coming too, along with Chris Mayer and Joel Bowman. But it’s also an important question if you’re an investor, says Chris, “because China is the worl...


Oh No, Another Grandich Challenge

Posted: 14 May 2010 07:06 PM PDT

The following is automatically syndicated from Grandich's blog. You can view the original post here May 14, 2010 10:03 AM Dear Street.com I respectively asked that you provide me or someone from the GATA organization (or supports their beliefs on gold and silver manipulation) an opportunity to refute the claims made in this interview with perhaps the worse performing forecaster of metals in the modern era. Assuming Street.com is still fair and balance despite a working relationship now with Kitco, I hope you do the right thing and allow a rebuttal to claims made by someone who’s actual track record clearly doesn’t warrant to be the sole opinion on a very important factor in the metals market. Personally, Mr. Ted Butler is even a far more worthy person to debate this subject than I. I encourage readers to write to [email]alix.steel@thestreet.com[/email] and express your thoughts on this subject [url]http://www.grandich.com/[/url] grandich.com...


Euro Gold €1000

Posted: 14 May 2010 07:06 PM PDT

Adam Hamilton May 14, 2010 2635 Words With the European sovereign-debt troubles dominating financial news, the euro has taken quite a beating lately. The majority consensus opinion even believes that the euro’s very existence is threatened by this crisis. This pervasive euro-bearish psychology has ignited euro gold, which is now challenging the fabled €1000 level. These all-time-record euro-gold highs are very exciting, sparking global interest in investing in gold. Just like we Americans view gold through our own US dollar lens, investors around the world think of it in terms of their own local currencies. And for the 325m Europeans as well as the 175m more people living in other countries with currencies pegged to t...


SLV Takes in Another 2.5 Million Ounces of Silver

Posted: 14 May 2010 07:06 PM PDT

It was a pretty quiet trading day yesterday. Gold spent most of its time meandering between $1,230 and $1,240 spot. Then, at 7:00 a.m. Eastern time, a bit of a rally began that took gold to it's high of the day of $1,244.30 spot at precisely 11:30 a.m... before a not-for-profit seller showed up to take gold to its low of the day at $1,226.60 spot about two hours later. This is the second day in a row that gold was turned back from breaking through $1,250 spot. Silver's graph was a virtual carbon copy of gold's. The price pretty much hugged $19.50 up until 7:00 a.m. Eastern time in New York... when it, too, began to rally. This rally also ended at precisely 11:30 a.m. That was silver's high of the day as well... $19.84 spot. Silver's low price of the day [$19.32 spot] was shortly before 4:00 p.m. Not that I'm the suspicious type or anything... but I think someone was dicking with the precious metals prices yesterday. However, Ted Butler said that the d...


As Predicted, EU Leaders Seek 'US of Europe'... IMF Plotting Gold-Backed SDRs?

Posted: 14 May 2010 07:06 PM PDT

As Predicted, EU Leaders Seek 'US of Europe' Friday, May 14, 2010 – by Staff Report German Chancellor Angela Merkel (left) said on Thursday the euro's troubles offered a chance for the EU to strengthen its economic and political union, not just its common currency. Speaking at a ceremony in Aachen where Polish Prime Minister Donald Tusk was awarded the Charlemagne Prize for furthering European unity, Merkel said the future of the EU was at stake in the challenges to its monetary amalgamation. "If the euro fails, not only the currency fails. Europe fails too, and the idea of European unification. We have a common currency, but no common political and economic union. And this is exactly what we must change. To achieve this -- therein lies the opportunity of this crisis." In a speech broadcast live on WDR television, Merkel said the crisis over the euro's future was "not just any crisis, it is the strongest test Europe has faced since 1990, if not in the 5...


Bud Conrad: Beyond the Point of No Return

Posted: 14 May 2010 07:06 PM PDT

"We're heading toward government devaluing its currency to devaluate its debt in order to survive. That means you need to protect yourself. You can't just have savings accounts paying no interest. You need to go and buy gold," says Bud Conrad, chief economist with Casey Research, in this exclusive Gold Report interview. Despite the grim outlook for the U.S. dollar and other paper currencies worldwide, Conrad believes he and other speakers at the recent Casey Research 2010 Crisis and Opportunity Summit have information you need to both prosper and protect yourself during the coming economic storm. [B]TGR:[/B] Today we are talking with Casey Research Chief Economist Bud Conrad who recently presented a riveting talk during Casey Research's 2010 Crisis and Opportunity Summit. Here are four major points from his talk: 1. The world economy is in a calm between a credit crisis turning into a currency crisis as the collapse of the private debt bubble is replaced by a gove...


The Safest Bet During Uncertain Markets

Posted: 14 May 2010 07:06 PM PDT

With six consecutive intraday triple digit swings from high to low in the DJIA index, here’s the safest bet during these uncertain times. Beginning last Thursday, volatility has returned to US markets with a vengeance. So who’s going to win the battle between the bulls and bears now? With the loss in confidence in global markets and the further exposure of the rigging games of markets precipitated by the 700 point drop in the DJIA in ten minutes last Thursday, sustained volatility and further corrections are likely in our near future. If so, then where’s the safest place to be now? The same place it has been for the past five years – precious metals. Since we’ve launched our investment newsletter in June of 2007, precious metals have been a core holding of our newsletter. Since we began publishing our newsletter, at times we have held Chinese RE and technology stocks, Brazilian oil producers, various agricultural stocks and so on, depending...


What If Doug Casey Is Right?

Posted: 14 May 2010 07:06 PM PDT

by Jeff Clark Editor Casey's Gold & Resource Report Gold is once again above $1,200 and making new highs. And yet, Doug Casey thinks we're just getting started, estimating gold could touch $5,000 before this is all over. A titillating thought, to be sure, but... how likely is that? Gold's latest rise stems from mounting fear that the Greek bailout will be followed by other euro-area countries queued for a me-too handout. In other words, gold is serving its historical role as a safe haven, a store of value, and an alternate form of money when governments recklessly plunge themselves heavily into debt and abuse their currency. "But Jeff, $5,000 gold is a long way up," the skeptics observe. "If you step back and look at the big picture, isn't the gold price bubbly here?" One way to test Doug's thinking is to look at other simmering trouble spots that would similarly impact gold should they boil over. So, let us indeed review the big-screen events I believe could send...


LGMR: Gold "Strengthened" by New Euro Crisis

Posted: 14 May 2010 07:06 PM PDT

London Gold Market Report from Adrian Ash BullionVault 08:50 ET, Fri 14 May Gold "Strengthened" by New Euro Crisis; Still "Early Days" for Global Gold Investment WHOLESALE GOLD BULLION PRICES rose to new record highs against all major currencies Friday morning in London, as world stock markets fell amid the ongoing Eurozone crisis. The Euro sank through $1.25 – an 18-month low to the Dollar – as Spain's El Pais reported that French president Sarkozy threatened to quit the currency union last weekend unless Germany agreed to the €750 billion "stabilization" package. "France, Italy and Spain formed a common front against Germany," the paper quotes private remarks from Spanish prime minister Zapatero, "and Sarkozy threatened [German chancellor] Merkel with breaking the traditional German-French axis." Investment-gold prices on the international wholesale market this morning broke €1000 an ounce for Euro investors and touched £860 against Sterling The ...


Ten Things For 2010

Posted: 14 May 2010 07:06 PM PDT

Market Ticker - Karl Denninger View original article May 14, 2010 07:14 AM Following-up and expanding on my previous "Ten Things" Ticker.... First, go read the original again. Now consider what Greece was subjected to the risk of.  Specifically: [INDENT] The risk of a "sudden stop" event where the bond market tells the government to "piss off" has never been higher.  A ratcheting up of the yield curve, when the average maturation of government debt is now just under 4 years, could easily double interest expense in the budget.  This would put the government in a nasty box: either curtail spending by twice that much (that is, roughly $800 billion) immediately or the addition to the deficit could force another ratchet higher in yield.  This is a "death spiral" that can happen with amazing speed.  If it does, everything you think the government should provide will disappear and asset prices - all of them - will collapse along with the economy. [/INDENT...


Late Night Chat with Client Evolving Gold’s CEO

Posted: 14 May 2010 07:06 PM PDT

The following is automatically syndicated from Grandich's blog. You can view the original post here May 14, 2010 04:17 AM Not surprising, I received a call from Robert Barker of Evolving Gold late last evening. Thankfully, my previous comments about him being a true gentleman were highly accurate. While he took exception to some of my previous comments about management, he and I ended up having a truly great chat. Even more importantly, I came away from our discussion even more bullish on EVG's future endeavors. At the same time I was previously pointing out the market had concerns about some past management decisions, I also reminded those who took issue that this is the very same management who discovered not one, but two potential world-class deposits. Knowing 99% of its peers never even find one, I think we must put that fact at the top of the list when reviewing management's qualifications. Robert recognizes the company has not done a great job on the investor relations side o...


Dow Jones Versus Gold: The Fight For Real Value

Posted: 14 May 2010 07:06 PM PDT

View the original post at jsmineset.com... May 13, 2010 10:40 PM Dear Friends, I thought it might be a good time for an examination of the Dow Jones Industrials over the last ten+ years in comparison to gold given the fact that the stock market has seemingly recovered all of its losses incurred since last week's 1000 point intraday plunge. While it may give the financial press something to cheer about, the sad truth that is lost on a good portion of the investing public is that the gains in the Dow are ephemeral at best; illusory is a more apt description. Over the last decade the Dow has made an all time high in 2007. Sounds good but upon closer examination we can see that when compared to gold, a store of value, that same year it had already lost half of its value in REAL terms since 1999. The current ratio is closer to 8.7, a loss of 60% or so within the last three years alone. The peak reached eleven years ago was nearly 45. That totals a staggering loss in REAL TERMS of ...


The Dollar Meltdown: Surviving the Impending Currency Crisis

Posted: 14 May 2010 05:59 PM PDT

Gold - Daily Report

Posted: 14 May 2010 05:51 PM PDT

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 1% and 4% on the Week

Posted: 14 May 2010 04:00 PM PDT

Gold saw slight gains in Asia and rose as much as $20.30 to a new record intraday high of $1249.30 in London before it dropped in morning New York trade to as low as $1217.80 by a little after 11AM EST, but it then bounced back higher into the close and ended with a loss of just 0.11%. Silver climbed to as high as $19.702 in London before it fell to as low as $18.94 in New York and then rallied back higher in the last couple of hours of trade, but it still ended with a loss of 1.34%.


Financial Sense aims to rehabilitate Christian in debate with GATA chairman

Posted: 14 May 2010 03:46 PM PDT

11:42p ET Friday, May 14, 2010

Dear Friend of GATA and Gold:

Jim Puplava's FinancialSense.com this week invited GATA Chairman Bill Murphy to debate CPM Group executive Jeff Christian about gold market manipulation. But today's Kitco News announcement of the debate has Puplava promoting it as Christian's opportunity to clarify supposed misinterpretation of his testimony at the March 25 hearing of the U.S. Commodity Futures Trading Commission.

Kitco further quotes Puplava as saying, "Just because the gold market is down doesn't mean there is a conspiracy behind it."

So much for impartiality. For GATA has been around for 11 years and not once has said that any decline in the gold price is evidence of "conspiracy."

Rather GATA has collected and published much official documentation of both open and surreptitious Western central bank intervention in the gold market to suppress the metal's price, along with much evidence of the disproportionate and suppressive influence in the market of the major investment houses that have registered as central bank agents. This is all ordinary public record, not "conspiracy," and it can be found here:

http://www.gata.org/taxonomy/term/21

The Kitco News story quoting Puplava's shilling for Christian can be found here:

http://www.kitco.com/reports/CPM_GATAdebate2.html

FinancialSense.com says it will post audio of the debate tomorrow here:

http://www.financialsense.com/metals/cftc/main.html

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource

Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.

For Prophecy's complete press release about its production plans, please visit:

http://www.prophecyresource.com/news_2010_may11.php


Join GATA here:

World Resource Investment Conference
Sunday and Monday, June 6 and 7, 2010
Vancouver Convention Centre
Vancouver, British Columbia, Canada
http://www.cambridgehouse.ca/index.php/world-resource-investment-confere...

* * *

Support GATA by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

http://www.goldrush21.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


ADVERTISEMENT

Coming Friday-Sunday, June 11-13, at the Dallas-Fort Worth Airport Marriot:
The Anglo Far-East Bullion Co.'s Gold and Silver Conference

The conference will explore the dangers and opportunities in today's bullion markets and the need for investors to diversify bullion holdings outside of bullion banking and commodities markets. Speakers will include David Morgan of Silver-Investor.com, Gold Anti-Trust Action Committee Chairman Bill Murphy, and Duncan Cameron and Philip Judge of Anglo Far-East Bullion Co. The earliest conference attendees on Saturday will be able to schedule one-on-one interviews for personal consultation with Anglo-Far East's experts on Sunday.

To learn more about and register for the Anglo Far-East Bullion conference, please visit:

http://www.anglofareast.com/seminar-registration/

CDS update May 14th

Posted: 14 May 2010 03:09 PM PDT


North America

Normal behavior, low volatility.

 

Europe

Higher volatility than usual.

T/W ratio reversing from positive 90 yesterday to negative 1.7 today mimicking bond and equity markets, ergo being highly influenced by FX. High volatility expected in the short term with negative T/W ratio.

 

Asia

 

Sovereigns

Negative T/W ratio mostly due to Europe.

 

Comparative market summarization 

Private:

 

 

Sovereign:

 

 

Financial risk

 

 

Index fair values

 

 

LIBOR

 

1 month 

The last reported monthly rate is: 0.2800%

 

3 month

The last reported monthly rate is: 0.34656

 

6 month

The last reported monthly rate is: 0.53063

 

1 year

The last reported rate is: 1.01563

 

TED Spread

 

 

*Data compiled via: Bloomberg, CMAvision, Markit and MoneyCafe.com

Radio Zero (Interest Rate Environment)

Posted: 14 May 2010 02:49 PM PDT


Ah, the thrill of too much cheap money sloshing around the world.  Seriously.  Leave your inner Lou Mannheim behind and bet on the sure thing.  Radio Zero, of course.  There are actually short cuts.  To wit:

Connection details: http://radio.cl.zerohedge.com

Or just connect direct: http://72.13.86.66:8000/listen.pls

It's a winner Lou.  Buy it.

Stop Targeting "Greedy Bankers"?

Posted: 14 May 2010 02:38 PM PDT



Raghuram Rajan, professor of finance at the University of Chicago, and former chief economist at the International Monetary Fund was interviewed on Yahoo Tech Ticker peddling a message for Washington, Stop Targeting "Greedy Bankers" and Focus on Growth:

The euro fell to an 18-month low Friday amid growing concerns about Europe's finances. Less than a week after the EU and IMF announced a whopping $1 trillion bailout package for Europe's so-called PIIGS, a growing number of high-profile voices, including Paul Volcker and Jimmy Rogers, are raising doubts about the euro's future.

 

A natural question: Is U.S. the next Greece -- as former guest Peter Schiff has stated, and economist James Galbraith has disputed?

 

"I would say the parallel is more with the euro area as a whole than with Greece," says our guest Raghuram Rajan, professor of finance at the University of Chicago, and former chief economist at the International Monetary Fund.

 

European nations, Greece especially, went on a spending binge. "You basically gave a drunkard a credit card. He went out and spent like mad," Rajan says.

 

Some pundits say America is on the same financial trajectory. "What the U.S. has as the same lines as Greece is this, or the euro area I should say, is the constant bailing out of anything that goes wrong," says Rajan, author of a new book, "Fault Lines: How Hidden Fractures Still Threaten the World Economy."

 

But bailouts aren't the answer. Furthermore, "we've used all our bullets. We don't have any bullets left," Rajan recently told The New Yorker.

 

In "Fault Lines", Rajan makes the case that without a clear growth strategy, America eventually faces tough decisions -- higher taxes or budget cuts, or a combination of the two as Spain and Portugal announced this week.

 

"We are in for tougher political times," he tells Aaron in the accompanying clip. "And I think focusing on some of the greedy bankers as the answer to the crisis takes political heat off the politicians, but is not really the answer."

 

Watch the interview below to get Mr. Rajan's take on how energy policy -- including a carbon tax -- could help spark America's economic growth.

Euro: The Worst is Yet To Come

Posted: 14 May 2010 02:18 PM PDT

I think it is a given that Greece will have to default, everyone knows this, but they are just playing cat and mouse for now. Most Greeks are dead set against the new Austerity measures and they will likely throw this government out of power ... Read More...



Doubts about gold ETFs broadcast today on two major networks

Posted: 14 May 2010 01:50 PM PDT

9:50p ET Friday, May 14, 2010

Dear Friend of GATA and Gold (and Silver):

Within a half hour of each other today the leading business television networks in North America reported doubts that gold exchange-traded funds either have the gold they claim to have or can get enough real gold to meet likely demand.

The first doubt was expressed on CNBC in the United States, where market analyst Rick Santelli comments at 5:30 into this segment:

http://www.cnbc.com/id/15840232?video=1494145732&lay=1

The second doubt was expressed on BNN in Canada, where reporter Niall McGee commented at length:

http://watch.bnn.ca/#clip302139

There seems to be growing consensus in favor of what GATA long has been urging gold and silver investors to do: to take possession of their metal or make certain that any custodian has got it in allocated and audited form, especially since the custodians of the largest gold and silver ETFs are also the biggest gold and silver shorts, a grotesque and unacknowledged conflict of interest:

http://www.gata.org/node/8600

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


ADVERTISEMENT

Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource

Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.

For Prophecy's complete press release about its production plans, please visit:

http://www.prophecyresource.com/news_2010_may11.php


Join GATA here:

World Resource Investment Conference
Sunday and Monday, June 6 and 7, 2010
Vancouver Convention Centre
Vancouver, British Columbia, Canada
http://www.cambridgehouse.ca/index.php/world-resource-investment-confere...

* * *

Support GATA by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

http://www.goldrush21.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


ADVERTISEMENT

Coming Friday-Sunday, June 11-13, at the Dallas-Fort Worth Airport Marriot:
The Anglo Far-East Bullion Co.'s Gold and Silver Conference

The conference will explore the dangers and opportunities in today's bullion markets and the need for investors to diversify bullion holdings outside of bullion banking and commodities markets. Speakers will include David Morgan of Silver-Investor.com, Gold Anti-Trust Action Committee Chairman Bill Murphy, and Duncan Cameron and Philip Judge of Anglo Far-East Bullion Co. The earliest conference attendees on Saturday will be able to schedule one-on-one interviews for personal consultation with Anglo-Far East's experts on Sunday.

To learn more about and register for the Anglo Far-East Bullion conference, please visit:

http://www.anglofareast.com/seminar-registration/

Gold Technicals vs Gold Parabola! –Stewart Thomson

Posted: 14 May 2010 01:31 PM PDT

1. The GPP (Gold Price Parabola) is overshadowed only by the GVP (Gold Volatility Parabola) A HSR band (horizontal support and resistance band) is not a top or bottom turn calling point. A turn might occur there, but that's of minor importance. The more significant the HSR band is, the greater the amount of supply and demand that is going to occur there. Gold 1225 is a hugely significant point, and, horrifically, only JP Morgan has noted the "ultimate significance" of price rising above there.
2. The 1225 area is a now a key demand point. That does NOT mean YOUR tactics are to "sell it all now, so I buy it all back cheaper at 1225". That's a clown act. 1225 is simply an area where additional capital should be allocated. Price can move all around the 1225 zone. It's a band of demand, not a guaranteed free money point of reversal. The gold bears are being left in the dust as the Gold Parabola takes shape, takes action.
3. If we go above 1250, that 1250 marker itself becomes the new demand line, if price pulls back there. It's a small point, so your capital allocations really wouldn't be tweaked much there.
4. You are likely never going to see your buys filled at all your buy points, nor is price going to pull back to every HSR point, or rise to it. That's irrelevant to making money.
5. Click here now to view my morning Gold Gridlines Video Update: Graceland Morning Gold Gridlines Report
6. Silver: While there is SOME HSR between 21.50 and $50, it's not very big until $50, and you need to keep in mind there is nothing but outer space above gold bullion's CURRENT PRICE.
7. Silver is like a call option on gold. With no expiry date.
8. Silver land is focused on $21 as the next target. WRONG. $21 is an HSR partial profit booking point, and a pgen profit booking point. It's not a "target". The TARGET is $28-33 (maybe $37) for THIS LEG if we cross $21.46, and the fact that we've already taken out the $19.50 area HSR highs augers very strongly that we're now gearing up for an assault on the $21 area.
9. Remember when I told you as gold rose up into 980 that the bull continuation pattern had a high probability of kicking in. That's what exists on the silver chart; a bull h&s continuation pattern. Is it as good as gold's was? No. I termed the gold pattern "Michaelangelic".
10. Remember, however, that silver stages its big action in the later stage of a move. The gold community is thinking TOO SMALL. They are looking at $2-4 moves in silver. That's not correct here, in my view. The gold h&s pattern is ruling the markets, and if GOLD is headed towards $1400 as a target, it makes sense that silver could stage a massively bigger "slingshot" move.
11. The fact that the silver head and shoulders comes AFTER the gold h&s in TIME fits PERFECTLY with the GOLD PARABOLA THEME. Here's a video report I just did on the silver bull consolidation pattern:
12. Again, because silver is like a call option, you don't need much, and most silver investors will be wiped out when it crashes later. My strongest suggestion to manage your greed is to sell silver into periods where it outperforms gold, not for dollars, but swap it for GOLD.
13. You remain IN the game, but you aren't a shooting silver star that explodes. Here's the afternoon silver update:
14. Silver Afternoon Update May 14
15. The gold daily chart and the weekly chart have entered overbought status as you've engaged in cash register mayhem
16. The LOOK of the gold weekly PRICE chart is PHENOMENAL. I'm in absolute agreement with JP Morgan that the rise over 1225 has ushered in UNLIMITED DEMAND for gold and fits with my steadfast view that this is not just the TIME for gold. It is the gold ERA.
17. For the gold price to do all the bears want it to do, although anything is possible in any market…gold now has MASSIVE support. Picture a wall that in 120 FEET thick. The price WALL between the 1045 selling climax and 1156 is about $120 THICK. It would take an enormous amount of selling to pierce that, and even then, you almost IMMEDIATELY arrive at the massive weekly head and shoulders pattern that offers an even bigger WALL OF DEMAND, between 860 and 1033.
18. You have asked for gold protection. Your greatest protection is the massive walls of DEMAND that sit directly below you on the gold BATTLEFIELD. That head and shoulders is BUILT with Chinese physical buying. Here's a follow up to this morning's gold update, and you can see the consistency of action. There is no, "oh no, look what happened, it went down, now it's a sell". We sold into strength early this morning, and now are back on the buy. End of Story. Graceland Afternoon Gold Update.
19. The GVP (gold volatility parabola) is heating up fast. Notice the thousands of contracts of comex gold unloaded in terror by the funds and retail clients. Do what it takes to stay mentally strong. The "Gold Sewing Machine" will be in action more and more frequently, driving price down and blasting out the fund stoplosses. The banksters made a fortune, just in the 1215-1250 zone!
20. Am I sitting on a pile of cash? Yes. Have I sold gold items into this strength? Yes. Am I worried about gold descending to lower DEMAND bands? No. I'm maniacally obsessed that all my BUY ORDERS are in there so I don't miss a single BUY whenever the next bout of price weakness.
21. This is the year of the gold punisher. YOU are on the AGGRESSIVE. Look below you at MASSIVE nuclear-sized HSR forces lined up on the gold price gridlines. Think offensively, not defensively, because the Gold Punisher IS on the offensive. Thinking "buy weakness" is not necessarily thinking defensively. It's a subtle but key point, one you'll need to understand, as we enter the Gold Parabola….
22. Special Offer For Website Readers: Send me an Email to freereport3@bell.net and I'll rush you my "Silver Roadmap To The Sky" report! Learn when to lighten up, both when and why, and exactly how to allocate your capital. I'll include information on the key single number in the Silver COT liquidity flows reports that likely confirms the Silver Superbull! Thanks!

St

Thank-you
Stewart Thomson
Graceland Updates

Graceland Updates.
www.gracelandupdates.com
Email: s2p3t4@sympatico.ca
Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:
Are You Prepared?

Sell in Early May and… Lose On Average $1 per Ounce of Silver Each Year

Posted: 14 May 2010 01:25 PM PDT

This essay is based on the Premium Update posted on May 14th, 2010

We would like to begin this essay by touching on the popular belief that precious metals – and especially silver – tend to drop heavily this time of the year. The saying suggests selling in May and going away – is this really the best way to go? At Sunshine Profits we're rather reluctant to take the common knowledge for granted – we prefer to dig deeper and check ourselves if every fact is really fact, not just an opinion.

So, while the "sell in May and go away" phrase does appear close to being true, we would still prefer to provide you with details before making final calls. This week, we will provide you with two seasonal silver charts, as the white metal is known for is seasonal tendency do decline in May. Let's begin with the May chart, and then we will move to the June one.

If you are not familiar with the way of reading these charts – you will find a quick reminder below.

While the idea of seasonality is nothing new – for instance, most investors are aware of the summer doldrums pattern, which means that virtually all markets tend to trade sideways in the middle of the year, we are taking it to the whole new level not only by focusing on the precious metals sector itself, but also by taking a very detailed approach allowing for the seasonal patterns to be used also in short-term trades. Additionally, we are measuring the quality of projections made using this tool. As you will soon see, there are times when these patterns are really reliable and there are times when they are to be approached with caution.

The way the below chart "works" is this – we've checked silver's performance in each May/June from 2002 to 2009 and extrapolated silver's average performance to where it was at the beginning the month. If the history is to repeat itself then perhaps the average performance of silver in May provides us with a "road map" to where it is likely to go during the whole month. Of course gold does not move in the same way each year at the same day, but at times these tendencies could provide a valuable confirmation or (which is even more important) non-confirmation.

Surprising, isn't it? Based on the way silver performed in Mays from 2002 to 2009 we see that silver has used to move over $1 higher during May with the top being right at the end of the month. Yes, there is also a tendency for the white metal to move lower in the middle of the month, but it tends to rise once again in around the third week of the month or so. Then, the local top is formed around the end of the month.

So, does the above chart say that silver will go above $20.60 at the end of the month? No. No promises here, of course, but it does say that this is what used to happen on average so the "more average" this May is, the more reliable the above "roadmap" gets.

Taking a look at the green slope (quality of projection), it tells us that silver being 80 cents above the May 1st level is more certain at about May 27th, than it is at May 13th – the quality of projection is slightly higher in the former case.

Therefore, although it may seem like a no-brainer to dump one's silver holdings right now, seasonal tendencies don't scream "sell" at this point yet, as silver tends to rise during the whole month of May. In other words, while we may move slightly lower from here, seasonal tendencies suggest that PMs are going to be higher in about two weeks than they are at this moment.

Now, June the situation in June is quite different…

While the second half of June is nothing to call home about, the first two weeks tend to wipe out May's gains. While silver used to rise about $1 in May or so, it also used to decline about the same amount in June. Please note that we used Thursday's close as the beginning price for June. The goal was to put percentage moves into proper perspective, not to tell you that we expect to see silver at that price on June 1st.

The first 10-15 days of June are most likely to provide us with lower silver prices – still, the white metal didn't use to plunge before the end of May.

Summing up, silver – and also the rest of the PM sector – is not likely to plunge severely now – odds favor a decline in a week or two. Still, the main point here is that the "sell in May and go away" is slightly inaccurate, as the top is usually formed right at the end of the month. If one took this advice to the letter and sold in early May each time during the past 7 years, one would on average miss out on a $1 rally each year in silver. Therefore, let's keep in mind that there's much more to the analysis of the seasonal tendencies than just suggesting to "sell in May and go away."

Now, let's take a look at how we could translate the above analysis to the current situation. As you may know, this is just a small version of the whole analysis, so we will not cover everything here – instead, we will focus on PM stocks. Let's begin with the long-term HUI Index chart (charts courtesy by http://stockcharts.com.)

With respect to the mining stocks, last week we mentioned that the HUI was ready to move above its resistance level. As we know now, this finally happened for the first time since its February bottom. The strength of this move and the resulting momentum are significant. We may, in fact, see the whole PM market move higher. The RSI, slightly above 70 suggests that we are close to a local top but not necessarily at one.

What we see in our analysis of the charts leads us to believe the local top will be at or near the 2009 high. This reasoning is based i.a. on the fact that this level proved to be a very strong resistance level during both 2008 and 2009 highs.

Turning to the short term GDX ETF chart, we can analyze volume, which recently has seemed to be on the low side along with lower values of the ETF. This is normal during small pullbacks – not a signal of coming decline. So, we are bullish at this time to see a small move upwards.

Still, mining stocks do not show as great a potential as silver and gold at this time. In the Wednesday's Market Alert we wrote the following:

Given the strength of the momentum (confirmed by volume) it seems that PM stocks may need to slow down before the local top (also in gold) is reached. This is what we usually see before the top is in, and we didn't see it so far.

One other fact, which we wish to make note of here, is that the bottom, which we forecasted, took place exactly as stated (marked with the blue ellipse on the chart).

For a final chart in this essay, the GDX:SPY ratio often forms tops and bottoms along with PMs and PM stocks. Therefore, what's bearish for the ratio is partly bearish for the whole PM market. As we have mentioned in the previous updates, tops are often accompanied by a huge volume, and they take place when the RSI is right at the 70 level.

The latter has been the place recently, so the question is if the volume has been high or not. We have marked it on the chart with a big red arrow as it is visible on a relative basis, but if we take into account the volume that we've seen from November 2009 to mid-April 2010, we see that the very recent volume is quite normal.

Comparing the current situation to what we've seen in November 2009 (final stage of the rally), it seems that perhaps we might need to see more significant spike in volume before we can state that the top has been confirmed.

Summing up, we are presently less bullish on PM stocks than on PMs, and we believe that they are not going to perform as well in the final stage of the rally, which by itself will serve as a confirmation that it is – in fact – the end of the rally.

To make sure that you are notified once the new features are implemented, and get immediate access to my free thoughts on the market, including information not available publicly, I urge you to sign up for my free e-mail list. Sign up today and you'll also get free, 7-day access to the Premium Sections on my website, including valuable tools and charts dedicated to serious PM Investors and Speculators. It's free and you may unsubscribe at any time.

Thank you for reading. Have a great and profitable week!

P. Radomski
Editor
www.SunshineProfits.com

* * * * *

Interested in increasing your profits in the PM sector? Want to know which stocks to buy? Would you like to improve your risk/reward ratio?

Sunshine Profits provides professional support for precious metals Investors and Traders.

Apart from weekly Premium Updates and quick Market Alerts, members of the Sunshine Profits' Premium Service gain access to Charts, Tools and Key Principles sections. Click the following link to find out how many benefits this means to you. Naturally, you may browse the sample version and easily sing-up for a free weekly trial to see if the Premium Service meets your expectations.

All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments.

By reading Mr. Radomski's essays or reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise that you consult a certified investment advisor and we encourage you to do your own research before making any investment decision. Mr. Radomski, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

GGR: Large commercials backing off from shorting precious metals?

Posted: 14 May 2010 01:05 PM PDT

9p ET Friday, May 14, 2010

Dear Friend of GATA and Gold (and Silver):

Gene Arensberg has posted a flash notice from his Got Gold Report that as of Tuesday this week the large commercial traders did not sell gold aggressively and even covered some shorts in silver. Arensberg's report can be found at the GGR Internet site here:

http://treo.typepad.com/20100514COTflashPDF.pdf

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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Prophecy to Become Coal Producer This Year
with 1.5 Billion Tonnes of Resource

Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.

For Prophecy's complete press release about its production plans, please visit:

http://www.prophecyresource.com/news_2010_may11.php


Join GATA here:

World Resource Investment Conference
Sunday and Monday, June 6 and 7, 2010
Vancouver Convention Centre
Vancouver, British Columbia, Canada
http://www.cambridgehouse.ca/index.php/world-resource-investment-confere...

* * *

Support GATA by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

http://www.goldrush21.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


ADVERTISEMENT

Coming Friday-Sunday, June 11-13, at the Dallas-Fort Worth Airport Marriot:
The Anglo Far-East Bullion Co.'s Gold and Silver Conference

The conference will explore the dangers and opportunities in today's bullion markets and the need for investors to diversify bullion holdings outside of bullion banking and commodities markets. Speakers will include David Morgan of Silver-Investor.com, Gold Anti-Trust Action Committee Chairman Bill Murphy, and Duncan Cameron and Philip Judge of Anglo Far-East Bullion Co. The earliest conference attendees on Saturday will be able to schedule one-on-one interviews for personal consultation with Anglo-Far East's experts on Sunday.

To learn more about and register for the Anglo Far-East Bullion conference, please visit:

http://www.anglofareast.com/seminar-registration/

Gold Forecaster – COMEX gold and silver markets do not affect gold and silver prices at all!

Posted: 14 May 2010 01:00 PM PDT

All of us follow COMEX in New York and assess the 'net speculative long position' there, so as to see the actual weight of opinion on the gold price. It gives us a clear market opinion after all. But many of you out there may believe that COMEX is a very large factor in the gold price. Is it?


Hurricanes Could Spread Gulf Oil Inland

Posted: 14 May 2010 12:57 PM PDT


→ Washington’s Blog

AccuWeather.com's Senior Meteorologist Alex Sosnowski points out today that hurricanes may spread the Gulf oil inland:

While the oil leak disaster in the Gulf of Mexico is bad enough, many people have been wondering what could happen if a hurricane were to slam into the region.

 

AccuWeather.com hurricane expert Joe Bastardi is concerned by multiple threats from storms throughout the season in the Gulf of Mexico.

 

[According to predictions for an active hurricane season this year], much of the central and western Gulf of Mexico could be one of several targets for potential multiple tropical storm and/or hurricane landfalls this year.

 

Depending on the approach of a tropical storm or hurricane, increasing winds and building, massive seas would first halt containment operations.

 

Rough seas would dislodge or destroy protective booms, rendering them useless as the storm draws closer.

 

Next, as the storm rolls through, high winds on the right flank of a hurricane making landfall would cause some oil to become airborne in blowing spray. A storm surge could carry contaminants inland beyond bays, marshes and beaches to well developed locations.

 

Even a glancing blow from a hurricane passing to the west of the oil slick could be enough for winds and wave action to drive the goo nearby onshore, or to more distant fishing and recreation areas, perhaps in foreign waters.

 

During the age of sail, winds occasionally blew ships hundreds of miles off course. The wind could have the same effect on the oil slick.

 

Now, imagine several storms during the season doing the same thing.

Oil is toxic for humans, containing many different compounds:

Oil contains a mixture of chemicals. The main ingredients are various hydrocarbons, some of which can cause cancer (eg. the PAHs or polycyclic aromatic hydrocarbons); other hydrocarbons can cause skin and airway irritation. There are also certain volatile hydrocarbons called VOCs (volatile organic compounds) which can cause cancer and neurologic and reproductive harm. Oil also contains traces of heavy metals such as mercury, arsenic and lead.

The oil in the Gulf is also unrefined, unlike the stuff you pour into your car.  It also comes from the deepest oil well ever drilled,   and it is possible that the chemistry is different at such great depths due to pressure, heat or other factors.  So it is hard to tell at this point whether it is more or less toxic than standard, refined oil (Coast Guard chemists have tested the oil, but - to date - no reports have been made public.)

In addition, highly toxic dispersants have been used to try to break up the oil. See this and this. Not only are dispersants being released underwater, but the air force is also dropping dispersants on the slick from above.

The official information for the dispersant reveals problems:

OSHA requires companies to make Material Safety Data Sheets, or MSDSs, available for any hazardous substances used in a workplace, and the ones for these dispersants both contain versions of a disturbing statement.

***

Both data sheets include the warning "human health hazards: acute." The MSDS for Corexit 9527A [the dispersant apparently being used in the Gulf] states that "excessive exposure may cause central nervous system effects, nausea, vomiting, anesthetic or narcotic effects," and "repeated or excessive exposure to butoxyethanol [an active ingredient] may cause injury to red blood cells (hemolysis), kidney or the liver." It adds: "Prolonged and/or repeated exposure through inhalation or extensive skin contact with EGBE [butoxyethanol] may result in damage to the blood and kidneys."

The bottom line is that hurricanes could very well spread the damage from the Gulf oil spill.

In the best case scenario, the gusher will have been capped and some cleanup commenced by the time the first hurricane hits the Gulf, the hurricane will be small, and the effects minimal.

In the worst case scenario, a major hurricane could spread toxic compounds inland onto crops. It could also aerosolize and then spread toxic chemicals, causing serious health problems for local residents - especially children, the elderly and those already at risk.

For background on the Gulf oil spill, see this.

Ted Butler: An impressive result

Posted: 14 May 2010 12:51 PM PDT

8:50p ET Friday, May 14, 2010

Dear Friend of GATA and Gold (and Silver):

Silver market analyst Ted Butler reports tonight on the outpouring of comment to the U.S. Commodity Futures Trading Commission reiterating support for establishing position limits in silver futures trading. Butler's commentary is headlined "An Impressive Result" and you can find it at GoldSeek's companion site, SilverSeek, here:

http://news.silverseek.com/SilverSeek/1273856683.php

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


ADVERTISEMENT

Prophecy to Become Coal Producer This Year with 1.5 Billion Tonnes of Resource

Prophecy Resource Corp. (TSX.V: PCY) announced on May 11 that it has entered into a mine services agreement with Leighton Asia Ltd. to begin coal production this year. Production will begin with a 250,000-tonne starter pit as planned in August, with production advancing to 2 million tonnes per year in 2011. Prophecy is fully funded to production and its management team includes John Morganti, Arnold Armstrong, and Rob McEwen.

For Prophecy's complete press release about its production plans, please visit:

http://www.prophecyresource.com/news_2010_may11.php


Join GATA here:

World Resource Investment Conference
Sunday and Monday, June 6 and 7, 2010
Vancouver Convention Centre
Vancouver, British Columbia, Canada
http://www.cambridgehouse.ca/index.php/world-resource-investment-confere...

* * *

Support GATA by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon:

http://www.goldrush21.com/

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


ADVERTISEMENT

Coming Friday-Sunday, June 11-13, at the Dallas-Fort Worth Airport Marriot:
The Anglo Far-East Bullion Co.'s Gold and Silver Conference

The conference will explore the dangers and opportunities in today's bullion markets and the need for investors to diversify bullion holdings outside of bullion banking and commodities markets. Speakers will include David Morgan of Silver-Investor.com, Gold Anti-Trust Action Committee Chairman Bill Murphy, and Duncan Cameron and Philip Judge of Anglo Far-East Bullion Co. The earliest conference attendees on Saturday will be able to schedule one-on-one interviews for personal consultation with Anglo-Far East's experts on Sunday.

To learn more about and register for the Anglo Far-East Bullion conference, please visit:

http://www.anglofareast.com/seminar-registration/

Silver and Gold Prices are Breaking Out Into the Wild, Furry, and Unpredictable Phase

Posted: 14 May 2010 12:24 PM PDT

Gold Price Close Today : 1,227.40Gold Price Close 7th May : 1,210.00Change: 17.40 or 1.4%Silver Price Close Today : 19.202Silver Price Close 7th May : 18.429Change 77.30 cents or 4.2%Platinum Price...

This is a summary only. Visit GOLDPRICE.ORG for the full article, gold price charts in ounces grams and kilos in 23 national currencies, and more!


Gold/Oil Ratio Shouts "Buy Miners"

Posted: 14 May 2010 12:02 PM PDT

This is an interesting way to view the Gold/Oil ratio:

Snip:
Quote:
Gold/Oil Ratio Shouts "Buy Miners"

The recent spike in the price of gold (to a new, nominal record) has occurred while the price of oil has pulled back, well below $80/barrel. Naturally, this means that the gold/oil price ratio has shifted to favor gold.

Some commentators see this ratio as instructive in telling them when to buy bullion. Others (like myself) view this statistic exclusively for instruction on the relative value of gold (and silver) miners. The reason for this latter view is obvious: along with labour costs, energy costs are the other, largest component of operating costs for a mine - especially for the more energy-intensive "open pit" mines.

Thus, it is no surprise that many if not most gold and silver miners are reporting "record profits" at the current time: the price for the commodity they produce is very high, while the price for the commodity they consume is relatively low. This is where the gold/oil ratio is instructive. Historically, $75/barrel is certainly a "high price" for crude oil. However, the gold/oil ratio tells us that the current price is favorable for miners.
More at: http://www.gold-eagle.com/editorials...son051310.html

Sell in Early May and... Lose On Average $1 per Ounce of Silver Each Year

Posted: 14 May 2010 11:39 AM PDT

We would like to begin this essay by touching on the popular belief that precious metals - and especially silver - tend to drop heavily this time of the year. The saying suggests selling in May and going away ... Read More...



Germans lead gold rush frenzy

Posted: 14 May 2010 10:54 AM PDT

By Jack Farchy
14 May 2010 (Financial Times) — The telephone has not stopped ringing at the Rand refinery in South Africa this week.

Panicking German dealers and banks have been desperate to get their hands on krugerrands…

The refinery, which usually sells 2,000 coins to each customer at a time, says that last week it received an order from one German bank for 30,000 coins. Another bank requested 15,000 coins…

Frank Ziegler, head of precious metals at BayernLB, one of Germany's largest wholesale suppliers of gold, says: "People are buying krugerrands like crazy." The frenzy pushed gold prices to a nominal high of $1,248.95 a troy ounce on Friday while the euro price surged through €1,000 an ounce for the first time.

Adjusted for inflation, however, gold prices are still a long way from their all-time high above $2,300 an ounce in 1980.

Although coins account for a small part of the market, they are one of the best indicators of investor sentiment towards the precious metal…

… there is no indication that Germans are ready to stop buying. Panicked by the possible inflationary implications of this week's €750bn bail-out, they have been snapping up gold coins and small bars at a faster rate than in the aftermath of the Lehman Brothers bankruptcy.

The European Central Bank says its government bond purchases will be "sterilised" by operations to remove inflation risks. But Martin Siegel, manager of Westgold, a dealer of gold in Frankfurt, says people "are not as dumb as economists. They believe there is going to be inflation and are buying gold to protect themselves."

German investors are notoriously wary about inflation. While few are old enough to remember the hyperinflation that wrecked Germany during the Weimar Republic in the 1920s, the episode remains etched into the national psyche: archive film from the period has been running on the news in recent days.

The appetite for coins has been so intense that shortages are developing. "In the European market there is a shortage of krugerrands," says Mr Ziegler. As a result, the premium paid for krugerrands in the secondary market has risen from about 2 per cent to 6-8 per cent.

[source]

Gold E1000: Crisis Insurance or Bubble?

Posted: 14 May 2010 10:23 AM PDT

Rising insurance premiums don't negate the need to insure... Read More...



Get Ready To Taste The Bitter Side Of Keynesian Economics

Posted: 14 May 2010 10:22 AM PDT

Most Americans have no idea what the term "Keynesian economics" means, but the truth is that it has been deeply influencing U.S. economic policy for decades.  Essentially, it is an economic theory that originated with a 20th century British economist named John Maynard Keynes, and it advocates government intervention in the economy in order to smooth out economic cycles.  The general idea was that lower interest rates and increased government spending could be used to increase aggregate demand when the economy was experiencing a downturn, thus increasing economic activity and reducing unemployment.

And you know what?

To a certain degree, Keynesian economic theory actually does work.

Increased government spending DOES stimulate the economy.

But the problem is that governments all over the world decided that they would just run constant budget deficits and stimulate the economy all the time.

All of this debt has brought a temporary prosperity to many of the nations around the globe, but there is one huge problem with debt.

It has to be paid back eventually.

With interest.

So what happens when nations have to start spending huge chunks of their national budgets just to service all the debt that they have piled up?

Well, that is when they taste the bitter side of Keynesian economics.

In fact, we see that starting to happen all over the world right now.

All of a sudden, governments all over the globe are talking about huge budget cuts, pay decreases, and higher taxes.

We all know about what is going on in Greece right now, but suddenly it seems like "austerity measures" are being implemented all over the place.  Just consider the following examples....

*Portugal has pledged to impose fresh austerity measures that include much higher taxes and dramatic budget cuts.

*Barack Obama is personally pressuring Spain to make severe austerity cuts.

*It's not just Southern Europe that is facing these austerity measures either.  It is being reported that Germans are bracing themselves for a "bitter" round of budget cuts.

*The exploding debt situation in the U.K.was a major issue in the most recent election.  Bank of England governor Mervyn King has even gone so far as to warn that public anger over the "austerity measures" that soon must be implemented in the U.K. will be so painful that whichever party is seen as responsible will be out of power for a generation.

*Federal Reserve Chairman Ben Bernanke says that United States citizens will soon have to make difficult choices between higher taxes and reduced government spending.

*California Governor Arnold Schwarzenegger is reportedly planning to seek "terrible cuts" to eliminate an $18.6 billion budget deficit facing the most-populous U.S. state through June 2011.

*In fact, many U.S. states are getting ready for their biggest budget cuts in decades.

Austerity measures for everyone?

That is the way it is shaping up.

So what happens when austerity measures are implemented?

Well, just as Keynesian economics correctly predicts that economic growth goes up when government spending increases, it also correctly tells us that economic growth goes down when government spending decreases.

So all of these austerity measures are going to mean economic pain for a whole lot of people.

Not only that, but there are now whispers that this European debt crisis could potentially cause the break up of the euro.

Whether or not that is actually the case, officials in Europe are sure seizing on this crisis to advocate for increased centralization of power in the EU.

For example, senior administrators of the European Union are proposing that they be given unprecedented power to scrutinize the spending plans of member countries before national parliaments can vote on those budgets.

Talk about a loss of sovereignty.

But not only that, the Governor of the Bank of England, Mervyn King, has come right out and said that he believes that the European Union must become a federalized fiscal union if it is to survive.

Doesn't it seem like whenever there is a crisis the solution that is always being proposed is to give centralized institutions even more power?

There has also been talk that nations such as Greece could end up being ejected from the euro, but the reality is that such a scenario is not very likely.

For one thing, the ECB has already come out and said that under current EU law, ejection of a nation from the monetary union is "legally next to impossible".

In addition, leaders throughout Europe realize that if the euro fails then the entire EU may fail as well.  German Chancellor Angela Merkel made this very clear when she recently warned that if the euro collapses, "then Europe and the idea of European union will fail."

For many in Europe that would seem like a disaster, but the truth is that it would be a wonderful, wonderful thing if the euro failed.

Why?

Because it would represent a major defeat for those who are seeking to drag us towards a "world currency" and a "global government".

It would also be a huge victory for those who still believe in national sovereignty and the decentralization of economic power.

So let us hope that the euro breaks up.

But don't count on it.

Meanwhile, the one thing that we can count on is all of the economic pain that all of these new austerity measures are going to bring.

FRIDAY Market Excerpts

Posted: 14 May 2010 10:20 AM PDT

Gold softens after hitting another record high

The COMEX June gold futures contract closed down $1.40 Friday at $1227.80, trading between $1217.60 and $1249.70

May 14, p.m. excerpts:
(from Dow Jones)
Gold prices ended lower after reaching new highs as investors continued to pile into assets perceived to be safe amid broad market turmoil. While gold has been on an upward path for several years, it has surged more than 16% since early February as Europe's debt woes came to the fore and as some investors fret about the long-term inflationary implications of government bailouts. Concerns about the behavior of other asset classes persist. Gold's jump to fresh highs in early trading came during a selloff in U.S. equities and other commodities…more
(from AP)
Stocks dropped again Friday as concerns grew that the deep spending cuts under Europe's bailout plan could slow a global recovery. The Dow Jones industrial average fell 215 points in afternoon trading following a slide of more than 3% in European markets. Crude oil sank 4% to $71.59 per barrel, and the Chicago Board Options Exchange's Volatility Index – known as the market's fear gauge – jumped 24.2%. Investors seeking safety piled into Treasurys, the dollar and gold, which hit another record of $1,249.70 an ounce before retreating…more
(from Bloomberg)
piggy bankGold futures fell as investors sold the metal to cover losses in other markets. "A lot of cash is coming out of the gold market to meet margin calls," said Adam Klopfenstein, senior market strategist at Lind-Waldock. "People need to raise cash and sell the positions that have been the most profitable." The euro fell again on speculation that the 16-nation currency may break up. Frank McGhee, head dealer at Integrated Brokerage Services LLC, noted that "it's not a good situation for the Europeans. They see continued erosion of their currency, and they're buying gold."…more
(from Marketwatch)
Ongoing worries about Europe's financial situation have spurred a flight to gold's perceived safety, and no one expects that to change anytime soon. Gold is up more than 1.5% on the week, having risen nearly 2.5% since Monday. Gold faced a rising dollar, however, as the worries about Europe knocked the euro to its lowest against the greenback since at least October 2008. The dollar index soared 1% to 86.05. Despite the recent surge in interest, buyers on Friday appeared to have decided to take their profits following gold's recent price run-ups…more
(from Reuters)
Gold ended flat, but the metal posted its fourth straight weekly increase as jittery investors fretted that a $1 trillion European rescue could be too late to contain debt contagion. Gold coin demand in Europe and the United States surged this week, with the U.S. Mint on track to post its highest monthly sales year to date for the popular American Eagles coins. Physical gold products such as coins and bars are traditionally a safe haven for anxious investors in times of economic and geopolitical crises. Safe-haven buying is seen continuing to buoy gold prices…more

see full news, 24-hr newswire…

May 14th's audio MarketMinute

Europe's $1 Trillion Bailout and a New World Currency

Posted: 14 May 2010 10:13 AM PDT

When the news of Europe's unprecedented $1 trillion bailout package was announced last weekend, the storyline behind this "solution" to the sovereign debt crisis seemed rather skewed towards politicians' cries of speculators "attacking ... Read More...



Mervyn King: "World's Worst Financial Crisis Ever"

Posted: 14 May 2010 10:08 AM PDT


→ Washington’s Blog

Bank of England Governor Mervyn King says:

We are still halfway through the world's worst financial crisis ever.

He is in good company.

The following experts have said that the economic crisis could be worse than the Great Depression:

 

The Basic Math Behind Subprime Foreclosures

Posted: 14 May 2010 10:00 AM PDT

The foreclosures that led to financial crisis began with homeowners falling behind on their mortgage payments. Yet, have all the factors behind the foreclosures been uncovered?

To date, much of the blame has been assigned to predatory lenders. However, a new and strikingly simple finding explains another significant factor. The Atlanta Federal Reserve has recently released a paper that shows that the numerical skill of homeowners has a meaningful impact on the rate at which they fell behind on mortgage payments.

According to The Economist:

"The economists tracked down a large number of subprime borrowers in New England on whom they already had detailed information, including the terms of their mortgages and their repayment histories. These borrowers were then subjected to a series of questions that required simple calculations about percentages and interest rates.

"Even accounting for a host of differences between people—including attitudes to risk, income levels and credit scores—those who fell behind on their mortgages were noticeably less numerate than those who kept up with their payments in the same overall circumstances. The least numerate fell behind about 25% of the time. For those who did best on the test, the number of payments they missed was almost 12%. A fifth of the least numerate group had been in foreclosure, but only 7% of those who were more numerically adept had.

"Surprisingly, the least numerate were not making loan choices that differed much from their peers. They were about as likely to have a fixed-rate mortgage as the more numerically able. They did not borrow a larger share of their income. And loans were about the same fraction of the house's value."

The Atlanta Fed has managed to show that homeowners that are better at these math skills tend to also be better at managing household finances. In and of itself, it's a hardly surprising finding. However, it also goes to show that basic numeracy offers some ability to predict the outcome of subprime homeowners, much like other factors generally used to judge creditworthiness, such as income and credit scores. Maybe loan officers should start including a math test in their assessments.

You can visit The Economist to read more details on how subprime mortgage defaults resulted in part from the fear of all sums.

Best,

Rocky Vega,
The Daily Reckoning

The Basic Math Behind Subprime Foreclosures originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."


Signs of Deflation You Might Not be Able to See Clearly

Posted: 14 May 2010 09:55 AM PDT

The Fed and the government quite effectively advertise their efforts to inflate the supply of money and credit. But deflationary forces, to most eyes, are invisible. I thought I would point some of them out. Read More...



Currency Update: Where the Real Strength Is

Posted: 14 May 2010 09:49 AM PDT

Calafia Beach Pundit submits:

(Click charts to enlarge)

The dollar has been in the limelight of late, benefiting from the euro's Greek travails, but as the last chart shows, the dollar in general is still pretty weak compared to where it's been in the past. And since gold is rising against all currencies, it makes more sense to say that the euro is weaker on the margin than the dollar, than to say the dollar is strong. The dollar is rising on the margin relative to a lot of currencies because the news here is somewhat better than the market had feared (i.e., less bad than expected), while the news overseas is either not continuing to improve or is underperforming optimistic expectations, particularly in Europe with the looming restructuring of Greek debt and the ECB apparently willing to monetize some debt to provide relief to struggling debtors.


Complete Story »


This ETF's Fate Hinges on Greek Debt Crisis

Posted: 14 May 2010 09:43 AM PDT

Michael Johnston submits:

Earlier this week, the European Union announced the formation of a bailout fund for struggling European countries, including Greece. The bailout will be worth 750 billion euros (nearly $1 trillion), including contributions from the IMF, and is meant to stop the international debt crisis that has destroyed investor confidence in European markets. Although the initial reaction to the bailout package was encouraging – within just hours raw material prices jumped 3.2%, the S&P 500 increased by 3.5%, and the Dow Jones Industrial Average gained 333.5 points – anxiety over the creditworthiness of sovereign debt has rattled markets in several recent sessions.


Complete Story »


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