Gold World News Flash |
- Hourly Action In Gold From Trader Dan
- Market Commentary From Monty Guild
- No Catastrophe after GDP and Bernanke Speech Bolsters Crude, Stalls Gold
- Deflation Delusion Continues as Economies Trend Towards High Inflation
- You'll Buy Gold Now and Like It!
- Tedbits: The Financial and Economic NO SPIN Zone
- Louis James Gets Physical
- The Rare "Buy Stocks!" Signal That Ain't
- Jim?s Mailbox
- In The News Today
- LGMR: Gold Trading "Quiet" as Summer Ends, "Big Surge" Expected on Poor US Data
- False Lure of an Infrastructure Bank... More Vaccination Questions
- Crude Oil Awaits U.S. GDP Data, Gold Pauses As Resistance Mounts
- The BIG Move Is Still To Come!
- Will Gold/Silver Mining Shares Ever Payoff?
- Collapse Survival Will Be Tribal: Begin Recruiting Now
- The Value of Debt
- The Value of Debt
- Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Almost 1% and 6% on the Week
- GATA figures heavily in Financial Times report on gold
- What Does The Junior Sector Say about the Next Move in Gold?
- Miners On Verge of Breakout: Mergers and Acquisitions Heating Up The Sector
- Has the Fed Defused the Neutron Bomb?
- Tech Sector Watch: Is Mega Merger the Inevitable Solution?
- Hinde Capital's Ben Davies makes U.S. speaking debut at CMRE dinner Oct. 21
- What will happen to Gold in a Double-Dip Recession?
- The US Government Matches Every Dollar In Tax Revenue With A Dollar In New Debt
- Helicopter Ben Bernanke Says Everything Is Going To Be Okay
- Ron Paul interview on Auditing Ft. Knox
- Ron Paul in his own words to Kitco News on gold price manipulation
- Guest Post: The Narrow Road to the Deep North: Fixed Income Skew and Signatures of Japanification
- Tedbits: The Financial and Economic NO SPIN Zone
- The Bulls Emerge Late
- The Gold Price at the End of July Pierced the Uptrend Line but has Since Splendidly Recovered
- The Rare "Buy Stocks!" Signal That Ain't
- Uncle Scam
| Hourly Action In Gold From Trader Dan Posted: 27 Aug 2010 07:28 PM PDT View the original post at jsmineset.com... August 27, 2010 11:30 AM Dear CIGAs, The equity bulls were salivating over the prospect of watching another episode of "let's take the shorts out and slaughter them all" as the world eagerly awaited the giving of the law from Mt. Jackson Hole. With claps of thunder in the background and with flashes of lightning interrupting his keen observations upon the state of the US economy, (some swear that they saw the angelic host), the prophet of Monetary religion sounded forth his prognostications and then looked upon his handiwork. He then saw that his work was good and sat down and rested on the seventh day. Yessiree folks – Chairman Ben uttered his incantations making all well with the turbulent world and bringing light and order to darkness and chaos. I do not know about you, but I feel so much better today after Ben told us all that he is going to make sure that the recovery is safeguarded from harm. When you combine that with news that inst...
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| Market Commentary From Monty Guild Posted: 27 Aug 2010 07:28 PM PDT View the original post at jsmineset.com... August 27, 2010 11:27 AM "It ain't what you know that gets you into trouble. It's what you know for sure that just ain't so." -Mark Twain BRAZILIAN ELECTIONS IN OCTOBER We believe that it is important that the new Brazilian administration continue the many successful programs that flowed from the Lula government. Currently, Dilma Rousseff, Lula's hand picked successor is enjoying a 20 point lead over her opponent Jose Serra according to one Sao Paulo newspaper. Should Rousseff win, will she be able to continue along the path blazed by Lula? Brazil has prospered this past decade for a variety of reasons. After Lula's election in 2002, a fortunate confluence of good national economic management, strong industrial production, strong exports, and relatively moderate inflation [by Brazilian standards] created increases in the standard of living for many Brazilians. Lula's policies have been more centrist than lefti...
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| No Catastrophe after GDP and Bernanke Speech Bolsters Crude, Stalls Gold Posted: 27 Aug 2010 07:24 PM PDT courtesy of DailyFX.com August 27, 2010 10:00 AM There was significant risk potential built into the possible market reactions to the US GDP revision and Fed Chairman Bernanke’s commentary at the Jackson Hole Symposium. However, neither event would encourage major waves in the speculative markets, leading risk sensitive assets like crude to rally and safe havens like gold to stall. North American Commodity Update Commodities - Energy Bernanke’s Promise to Fuel US Growth Whets Risk Appetite and Encourages Demand Expectations for Energy Traders Crude Oil (LS Nymex) - $75.17 // $1.81 // 2.47% Investors that were watching intraday price action on the oil market would have seen significant levels of volatility. While stable through most of the Asian and European sessions, the volatile commodity were plunge as much as 2.3 percent through the first signs of liquidity in the New York trading hours. From a low just above $72, however, bullish convictions would ta...
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| Deflation Delusion Continues as Economies Trend Towards High Inflation Posted: 27 Aug 2010 07:24 PM PDT Delusional deflationists right from the Bank of England MPC, through to the mainstream press for well over a year have pushed the mantra of ongoing debt deleveraging deflation everywhere, everywhere that is than appears in where it counts i.e. the actual INFLATION indices, where inflation is on the rise right across the world as illustrated in the UK by the persistent failure of the Bank of England to control UK inflation that remains above the banks CPI 3% upper limit. Even Greece that really is in an depression is experiencing inflation at above 3%, whilst the US CPI continues to inflate at a more modest 1.2% as summarised below for key world economies. Global CPI Inflation Rates India 13.7% Argentina 11.2% Russia 5.5% Brazil 4.6% China 3.3% UK 3.1% Australia 3.1% Euro zone 1.7% USA 1.2% Japan -0.7% This is leaving aside the fact t...
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| You'll Buy Gold Now and Like It! Posted: 27 Aug 2010 07:24 PM PDT The gold market offered little in the way of price excitement on Thursday. The price flat-lined in Far East trading until 1:00 p.m. Hong Kong time... and then rose to its high of the day [such as it was] around $1,245 spot, just before lunch in London. From there it took until the close of Comex trading to hit its low price of the day, which was $1,233.40 spot. The silver price was just as unexciting, with what price 'excitement' there was starting at the Hong Kong close/London a.m. gold fix at 10:30 local time in the U.K. From there, silver took around six and a half hours to gain about twenty cents... with the high of the day [$19.19 spot] coming shortly before lunch in New York. From that point, it took silver only ninety minutes to hit its low of the day [$18.90 spot] minutes after the Comex closed. The price traded sideways for the rest of electronic trading in New York. The world's reserve currency fell about 30 basis points in the earl...
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| Tedbits: The Financial and Economic NO SPIN Zone Posted: 27 Aug 2010 07:24 PM PDT By Theodore (Ty) Andros [LIST] [*]Depression Written into Law, Part I Black Swans Crack-up Dead Ahead [/LIST] As the next leg down in the unfolding depression and global, financial crisis intensifies we all sit on a keg of dynamite known as the developed world’s economies and financial systems and wait for some fool in government to light a match. In April I spoke about black swans taking flight, now they are about to land. An explosive event is unfolding as we speak. What you are about to read is the embodiment of the Cloward-Piven strategy -- economic collapse written into law, on purpose, by radical Marxist Socialist progressives inside the Capital of the United States: Washington DC. Bubbles are still inflating because the printed money has to land somewhere, and capital flees to where it is treated best. In this case, it is to the emerging world where capitalism is thriving and governments are focused on ECONOMIC and INCOME growth, but ...
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| Posted: 27 Aug 2010 07:24 PM PDT Source: Brian Sylvester of The Gold Report 08/27/2010 Casey Research Senior Editor Louis James is very familiar with the gold market and with junior gold companies that have projects all over the world. In fact, he's visited many of the most promising ones. In this exclusive interview with The Gold Report, Louis offers tips on how to own physical gold and "paper" gold, and even picks some junior gold and silver plays with significant potential. The Gold Report: Louis, earlier this month the U.S. government sold its new 10-Year Notes at about 2.7%. That's the lowest yield ever for a refunding, yet the sale was over three times subscribed. What's that telling us? Louis James: Any particular event may or may not be a watershed; I try not to ascribe too much significance to one thing. Sometimes it's a straw in the wind and sometimes it's the straw that breaks the camel's back; you can't really tell until afterward. But this one is interesting. It seems to me what this ...
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| The Rare "Buy Stocks!" Signal That Ain't Posted: 27 Aug 2010 07:24 PM PDT by Adrian Ash BullionVault Friday, 27 August 2010 Time was, stocks were riskier than bonds and should have the higher yield. But then came inflation... AT THE START of this week, stocks on the Dow Jones, Tokyo Nikkei and FTSE100 in London offered a bigger dividend-yield than you'd earn in interest from their local government bonds. "That's pretty rare, and in general has been quite a good indicator of turning points in the markets," notes the Financial Times' investment editor James Mackintosh. But it only looks rare if you ignore most of history. And it's only screamed "Buy!" once on Wall Street, back in winter/spring 2009. Yes, this "signal" worked, notching up a 100% strike-rate for the last fifty years. But buying stocks today because their yield (only just) beats bonds might prove ill-timed if not a disaster. For at least 75 years prior to the late-1950s, US stocks consistently paid more than 10-year Treasurys. Rather than being an eight-decade-lo...
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| Posted: 27 Aug 2010 07:24 PM PDT View the original post at jsmineset.com... August 27, 2010 07:55 AM Dear Eric, I am most interested in Shadow Stat’s take on the real number. Regards, Jim GDP seen revised down on imports and inventories CIGA Eric U.S. economic growth likely was much weaker than initially thought between April and June, hurt by surging imports and as rebuilding of business inventories softened, a government report is expected to show on Friday. Gross domestic product now is estimated to have grown at a 1.4 percent annual rate during the second quarter, rather than the 2.4 percent estimated in the government’s first reading last month, according to a Reuters survey. While cracks in the façade of big consumption and government are beginning to show, the economic and financial structures that maintain it are still in place. As long as Americans consume more than they produce, they must issue debt (paper claims against future production) to balance the shortfall. BIG CONSUMPTION...
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| Posted: 27 Aug 2010 07:24 PM PDT View the original post at jsmineset.com... August 27, 2010 08:11 AM Dear CIGAs, QE to infinity is, and will continue to occur. Gold will trade at $1650 and higher. Respectfully, Jim Bernanke Signals Stepped-Up Efforts to Spur Economy By SEWELL CHAN Published: August 27, 2010 JACKSON HOLE, Wyo. — The Federal Reserve chairman, Ben S. Bernanke, said Friday that the central bank was determined to prevent the economy from slipping into a cycle of falling prices, even as he emphasized that he believed growth would continue in the second half of the year, "albeit at a relatively modest pace." To help sustain the economy, Mr. Bernanke gave his strongest indication yet that the Fed was ready to resume its large purchases of longer-term debt if the economy worsened, a move that would add to the Fed's already substantial holdings. "We have come a long way, but there is still some way to travel," Mr. Bernanke said. "I believe that additional purchases of longer-term securiti...
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| LGMR: Gold Trading "Quiet" as Summer Ends, "Big Surge" Expected on Poor US Data Posted: 27 Aug 2010 07:23 PM PDT London Gold Market Report from Adrian Ash BullionVault 09:00 ET, Fri 27 August Gold Trading "Quiet" as Summer Ends, "Big Surge" Expected on Poor US Data THE PRICE OF GOLD held flat early in London today, heading into the long August Bank Holiday weekend some 0.8% higher from last Friday's close against the Dollar, Euro and Sterling. The Silver Price stood 5.7% up for the week, nearing its best weekly close since late-June. A further rally in Asian stocks meantime failed to buoy European shares, while commodities and G7 government bonds were also unchanged. Ahead of US Fed chairman Ben Bernanke speaking at the Jackson Hole central-banking symposium today, upwardly revised US growth data failed to move the major currency crosses, save for extending the Japanese Yen's retreat from this week's 15-year highs. In wholesale Gold Trading, London "was rather quiet" on Thursday and overnight volumes in Asian trade were "almost non- existent" according to one deal...
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| False Lure of an Infrastructure Bank... More Vaccination Questions Posted: 27 Aug 2010 07:23 PM PDT False Lure of an Infrastructure Bank Friday, August 27, 2010 – by Staff Report The One Way Out Of The Recession ... Average Americans are noticing what wise economists have been arguing for quite some time: Bubble-driven economic downturns differ qualitatively from standard business-cycle recessions. Not only do they go deeper; GDP takes longer to rebound, and job creation proceeds more slowly. The mechanism is straightforward. As the value of assets used as collateral collapses, so does borrowing. This depresses consumption, and the real economy dips, making it much harder for businesses and households to service the debts incurred during boom times. Household consumption remains sluggish until debt is reduced to a level that can comfortably be serviced out of current income, a process that cannot proceed without an increase in the household savings rate. The larger the debt overhang, the longer it will take to work off the excess. ... This is wh...
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| Crude Oil Awaits U.S. GDP Data, Gold Pauses As Resistance Mounts Posted: 27 Aug 2010 07:23 PM PDT courtesy of DailyFX.com August 26, 2010 10:51 PM All eyes are on the second quarter U.S. GDP report set to be released on Friday. Market participants will weigh the probability that the world’s largest economy is set to enter a second recession. Commodities – Energy Crude Oil Awaits U.S. GDP Data Crude Oil (WTI) - $73.09 // $0.27 // 0.37% Commentary: Crude oil advanced for a second session on Thursday, despite a down day for U.S. equity markets. The commodity added $0.84, or 1.16%, and traded quite resiliently throughout the day. Oil was able to take advantage of the upward momentum established in the prior session, as there was no particular data or news that was responsible for the move. Currently, we are seeing crude oil down slightly as financial markets wait for the release of revised U.S. GDP figures for the second quarter. The consensus expectation is for a 1.4% annualized reading, down sharply from the prior estimate of 2.4%. Economists have ratcheted dow...
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| The BIG Move Is Still To Come! Posted: 27 Aug 2010 07:23 PM PDT August 27, 2010 In the big picture we think the gold and silver bull market has just started to warm up. It is not that we believe the ten year bull market has not been underway for a significant amount of time, but rather we believe the majority of the price appreciation is ahead and not behind us. There is a common belief that rising interest rates are negative for the price of gold. Where do these crazy ideas come from? If that is the case then gold investors should fear that the bull market is nearly over as interest rates are near zero and when they eventually do rise the bull market will be threatened. Contrary to this popular opinion we think that rising interest rates are a great sign for gold! With rates near record lows it means that there is a lot of “fuel” for the gold price when interest rates do eventually rise. Currently there is a nice big, fat bond market loaded with capital ready to pour out of bonds and into the commodities market....
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| Will Gold/Silver Mining Shares Ever Payoff? Posted: 27 Aug 2010 06:30 PM PDT
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| Collapse Survival Will Be Tribal: Begin Recruiting Now Posted: 27 Aug 2010 06:02 PM PDT Everyone on earth knows how fragile the economy is. It has pushed first-world countries to the brink of revolution. The pushing can't withstand much more before the pillars of civilization begin to fall. And once they begin falling, there may be no stopping them from collapsing society altogether. Unfortunately, the signs of further economic erosion are disturbingly obvious to the onlookers, and the remaining pillars are hanging on by a thread. What's more, the controllers are orchestrating the collapse of the American economy and society right now, albeit in slow motion, but it is already crumbling. The economy and the environment have surpassed their critical tipping points, where dollars will inevitably be worthless and resources will be out-of-reach expensive for most of humanity. We are likely to see astronomically-high gas prices ultimately causing food and medicine to be quickly wiped out of the box stores -- first by nesters, then by desperate looters. One only has to witness the panic buying before predicted snow storms to imagine what a sustained blizzard would do. It's well past the 11th hour and survival and real solutions must rule the day. The collapse will surely be a desperate time for many, especially those who live in major cities. Even some suburbs will not be immune for those who didn't see it coming and plan accordingly. Jobs will be far scarcer, money will not go nearly as far for essentials like food and energy, and what will be left of the cities will be roving gangs desperate for resources. The poor helpless citizens will most likely be taken to FEMA "dormitories" as is already being proposed. More Here..
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| Posted: 27 Aug 2010 05:28 PM PDT
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| Posted: 27 Aug 2010 05:28 PM PDT
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| Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Almost 1% and 6% on the Week Posted: 27 Aug 2010 04:30 PM PDT Gold rallied from a low of $1233.83 in London to as high as $1242.20 by a little before 9AM EST before it swung back down to $1232.30 by midmorning in New York trade and then climbed back near its earlier high by a little after 11AM, but it ultimately fell back off into the close an ended with a gain of just 0.02%. Silver climbed to as high as $19.323 before it also dropped back off in the last couple hours of trade, but it still ended with a gain of 0.37%.
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| GATA figures heavily in Financial Times report on gold Posted: 27 Aug 2010 03:55 PM PDT The True Value of Gold By Ellen Kelleher http://www.ft.com/cms/s/2/e9378c6c-b0b8-11df-8c04-00144feabdc0.html The Baird & Co. warehouse sits in a dreary business park, half a mile east of London's City airport. A black Mercedes and a blue Jaguar near the entrance are the sole touch of glamour. Step inside and men in overalls are fashioning medallions, bars, and rings from molten gold, purified in vats next door. From an office upstairs, Tony Baird, the company's managing director and a former coin dealer, presides over the hubbub. "Gold is stable," he says. "It's the value of money that goes up and down." Baird & Co. sells gold to everyone from pension funds to jewellers, and as the managing director says: "Our machines can't work fast enough these days." Demand for gold has risen since September 2008, when the financial crisis began roiling the markets, following the collapse of Lehman Brothers. Investors may have lost faith in paper money, but by June this year, $81.6 billion was stored in gold-backed, exchange-traded funds -- more than eight times the amount invested in March 2006. Meanwhile, the Rand refinery in South Africa, which produces the world's most popular gold coin, the krugerrand, has been forced to increase production to keep up with demand. And in May the Austrian Mint sold 238,000 ounces of its Vienna Philharmonic coin, a six-fold increase in a year. - - - All the talk of gold infuriates some investors. They argue that it is too expensive, and its price could drop sharply if the hedge funds and asset managers with the largest positions in the market sell. "There is so much hype attached to gold mainly because it's perceived to be a safe haven," says Patrick Connolly, an adviser with the Bath firm AWD Chase de Vere. "But it doesn't give off income and the price is very high and depends solely on demand and supply. We are nervous of investing in any asset class that has risen so much in value." ... Dispatch continues below ... ADVERTISEMENT Sona Resources Expects Positive Cash Flow from Blackdome, On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia. Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013." For complete information on Sona Resources Corp. please visit: www.SonaResources.com A Canadian gold opportunity ready for growth But a cadre of loyalists claim that gold offers a hedge against both inflation and deflation and is a store of value when equity and bond markets fall apart. Their enthusiasm ranges from mild appreciation of gold's ability to outperform in a downturn to more zealous admiration. One thing some "gold bugs" do not buy is the idea that gold is too expensive; in fact, they argue that the price would be much higher were it not for the manipulation of the market by central banks and bullion banks, which handle government trades. "This price suppression is a scandal," says Bill Murphy, founder of the Gold Anti-Trust Action Committee (GATA). "And it's going to be huge when it is exposed." Since 1999, GATA, one of many gold bug organisations promoting conspiracy theories, has fought to pull back the curtain on the gold market. "Gold is the economy's thermometer," says Murphy, "and every time its price goes up, it's bad for banks, for Wall Street, and politicians. So it's in their interest to keep it down." Murphy is a rangy man in his mid-60s who enjoyed a short career as a wide-receiver for the Boston Patriots, the American football team now known as the New England Patriots, before he surfaced on Wall Street. Here, his experience was a riches-to-rags story. "I made a fortune in copper, then lost it," he says on the poolside veranda of the Raleigh Hotel in Miami's South Beach. He also runs a Web site aimed at gold bugs, Le Metropole Cafe (www.lemetropolecafe.com), with an annual membership fee of $299. It is from this electronic pulpit that Murphy argues that the cost of gold should rise, due to the instability of the world economy and markets. "There hasn't been an independent audit of U.S. gold reserves since 1955," he says. "Don't you think that's a bit suspicious?" Murphy is not alone in calling for a public audit of the gold supplies held by central banks and the International Monetary Fund (IMF). Ron Paul, a Republican congressman who ran for president as a Libertarian candidate in 1988, has been calling for an audit of the gold held by the U.S. Federal Reserve since 1982, when he served on the U.S. Gold Commission -- set up to examine the role of gold in the monetary system. "We were in a financial crisis and inflation was high," Paul recalls. "But the Federal Reserve wasn't interested. I remember Paul Volcker [then chairman of the Federal Reserve] walking into a room in 1980 -- at the height of the financial crisis, when gold went up to more than $800 per ounce -- and saying, 'What's the price of gold?'" According to Paul, "Everyone knows a high gold price is a vote of no confidence in paper. That is why governments will manipulate and try to give you an artificial price for gold." In his book "Gold, Peace, and Prosperity," Paul decries the end of the gold standard -- the practice of backing currencies with a fixed weighting in the metal, which took many forms through history. President Nixon brought an end to the gold standard in 1971, as part of his attempt to overcome the strain of funding the Vietnam war and the U.S.'s mounting trade deficit. Paul thinks the system of fiat money facilitates "governments' attempts to inflate, control the economy, run up deficits, and fight senseless wars." He worries too that both the supply of paper money and government debt levels are spiralling out of control. "My beef is with the paper money," he says. "All the problems we're having today were destined to happen. Gold plays an important role in the monetary system because it restrains government spending." Without it, Paul argues, central banks have the power to print money without pausing to consider the consequences, and more impetus to spend it. While they refuse to rule out the reintroduction of the gold standard if economic Armageddon descends, a clutch of economists contacted by the FT are quick to poke holes in Paul's ideas. "The basic problem with the gold standard is that fluctuations in the demand and supply of gold destabilise the price of everything else," explains Ken Rogoff, a Harvard professor formerly in charge of research at the International Monetary Fund. "The only countervailing advantage is that gold arguably provides a better anchor for long-term price stability." However, even Rogoff believes we are witnessing an international scramble for gold. Gold reserves have long been a measure of wealth, and shifts in the location of the world's biggest deposits testify to the fierce economic wars the U.S. and Europe are waging with China and India. The U.S. still possesses the most gold, according to the World Gold Council, with 8,133.5 tonnes -- about 70 per cent of its foreign currency reserves. Germany is in second place, with 3,407 tonnes. Then comes the IMF (which is selling more than 160 tonnes on the market) with just under 3,000 tonnes; Italy, with 2,451.8 tonnes; and France, with 2,435.4 tonnes. Russia, which went on a buying spree last year, has 668 tonnes. The UK, meanwhile, has just 310 tonnes, and the European Central Bank 501. And what of China? It now produces more gold than any other country but ranks only eighth on the list. However, since 2003 it has increased its gold reserves from 400 tonnes to at least 1,054 tonnes by quietly buying from domestic mines and has made moves to liberalise its gold market further. These include increasing the number of banks permitted to trade bullion internationally and announcing measures that will encourage development of gold-linked investment products. The changes come as the country's investors continue to pour record amounts of money into gold. Last year Chinese investors bought 73 tonnes of bullion, up from 18 tonnes in 2007. The view on Wall Street and in the City is that China still buys gold from domestic mines as it must bulk up on the metal to diversify its portfolio as the size of its foreign reserves increases. "It would cause quite a stir if China came into the international market and tried to buy big amounts of gold," surmised one strategist. "But we still think they're accumulating gold, just not on the international market." Other countries are likely to take action as well. According to Rogoff, "Emerging market central banks will probably want to raise the share of gold in their foreign exchange reserves, bringing them closer in line with advanced-country central banks." In part, Rogoff explains, this is because the shift from an overreliance on the dollar to currencies such as the euro is not "sufficient diversification against the risk -- which is low, but certainly non-trivial -- of a generalised global inflation." - - - It's not just central bankers who are looking to acquire gold. Private bankers are on the hunt as well. Take Adam Fleming. The nephew of James Bond's creator Ian Fleming and heir to the Robert Fleming Holdings fortune (the family's merchant bank was sold to Chase Manhattan Bank in 2000 for $7.75 billion), Adam also professes to be a gold bug and an occasional supporter of GATA's causes. The great-grandson of Robert Fleming, a Dundonian who made his fortune investing in U.S. railroads following the American Civil War, Adam Fleming joined the family business in 1970, honing his interest in mining in Johannesburg. He opened offices for the family business across southern Africa and served as chairman of Harmony Gold Mining after its acquisition of Kalahari Goldridge Mining. Over tea at the Fleming family's private bank just off Trafalgar Square, he bemoans the opacity of the gold market. "Gold and silver are the DNA of currency," he says. "When the chips are down, precious metals are the only fungible currency." Fleming believes we are seeing gold begin to reassert itself in real currency terms. "The levels of paper money have reached an extreme never seen before," he says. "I worry about the markets." Fleming also argues that it's in the interest of governments for gold markets to remain somewhat opaque; that today's system of fiat money rests on keeping much of the inner workings of monetary policy secretive. "Politics and gold are uneasy bedfellows," he says. "And politicians like to control their currency." Fleming is critical of Gordon Brown's decision as Chancellor, in 1999, to sell more than 400 tonnes -- about half -- of the Bank of England's gold reserves in a series of auctions and buy foreign currencies. The move was controversial, as the gold price hovered around an average of $275 an ounce, and it met with considerable opposition from the Bank of England. "It was an astonishingly imprudent mistake," Fleming says. According to Fleming, manipulation of the gold market by governments is nothing new. He argues that it occurred as early as the mid-1930s, when Franklin Roosevelt forbade private gold ownership, apart from jewellery. As for GATA's hypothesis that central banks still engage in covert manipulation of the gold market, he feels that all currencies, not just gold, are regularly manipulated by the monetary authorities. - - - The recent rumours of manipulation first arose in 1998, following the collapse of the hedge fund, Long Term Capital Management (LTCM). One tale sent into cyberspace by GATA was that LTCM was short of more than 400 tonnes of gold at the time of its implosion. GATA questioned too whether the gold auctions the Bank of England arranged in the wake of that collapse were orchestrated to aid bullion banks' efforts to cover gold short positions. LTCM, however, denied the allegations. LTCM's former lawyer, James Rickards, later told the Financial Times: "GATA raised this in 1998 out of thin air. It fitted their paradigm that central banks always and everywhere manipulate the gold market. As counsel, I wrote a letter including a sworn affidavit from a principal, rejecting the allegations and demanding a retraction. They printed the letter as 'proof' of the gold conspiracy. I gave up at that point because I realised they were not persuaded by evidence and I did not want to engage further." - - - With hindsight, it is clear that Gordon Brown's decision to auction off such a large chunk of the UK's gold reserves at such a low price was ill-advised. But the official aim of the programme was to shift more of the reserves into foreign currencies and other assets that bear interest. A report on the sale of the gold reserves conducted by the National Audit Office in January 2001 concluded that the auctions were "conducted according to current notions of best practice" and emphasised that central banks in Canada, the Netherlands, Switzerland, and Malaysia disposed of gold around the same time. "The overall aim was to restructure the UK's reserve holdings to achieve a better balance in the portfolio by increasing the proportion held in currency," the auditors wrote. "The decision was taken against a background of a decreasing market value of gold, which over the last 20 years has fallen from a high of $850 per ounce in January 1980 to an average annual price of under $300 per ounce since the start of 1998." Many economists are also quick to pick apart GATA's hypothesis that attempts at market manipulation are suppressing the gold price. "Gold is a vast market, and it's not subject to national boundaries," says Jeffrey Nichols of American Precious Metals Advisers. "How it could be manipulated and still have risen so much over the past decade baffles me. The idea strikes me as almost ludicrous." Martin Murenbeeld of Dundee Wealth Economics is more succinct. "It's bunk," he says. "It's a massive conceit on the part of gold people to think that gold is so important that the Federal Reserve and the president of the United States are out there manipulating the gold price." They may be bunk, of course, but such conspiracies only add to gold's mystique. And the whisper campaigns attract a sizeable congregation at Bill Murphy's Le Metropole Cafe. "There are still plenty of deluded individuals sufficiently conditioned by governments and the mainstream media that they believe that the gold market is free and fair," wrote GATA supporter Paul Mylchreest in Thunder Road, his Internet newsletter. And even those who take a sceptical view of GATA still appreciate that the law of supply and demand could support the gold price, which hovered around $1,220 this week, for some time to come. The volumes being extracted by miners in South Africa, Australia, China, and the western United States are falling. At the same time, central banks, pension funds, and people on the high street are badgering bullion dealers for more. - - - The rising price of gold also coincides with public disaffection with our governments' inability to resolve our difficulties. Poor economic reports keep rolling in. George Osborne has asked UK government departments to outline cuts of up to 40 per cent, in one of the toughest spending squeezes of any advanced economy in recent times. In the U.S., fewer jobs than expected were added to the payrolls in July, while Ben Bernanke, chairman of the Federal Reserve, has said he believes the Federal Budget is on an "unsustainable" path. Looking ahead, the world may be entering the second leg of a W-shaped recession, sinking again just as we thought the economy was set to improve. It is not surprising, then, that people are returning to gold. Arguably, buyers' interest is not so much a vote of confidence in precious metals as a lack of confidence in central banks and governments. We may be witnessing nothing less than a populist uprising against the financial system. Maybe it just comes down to, as a Financial Times reader pointed out in a letter to the editor last month (July 6), whether you can trust politicians and central bankers. He quoted George Bernard Shaw: "You have to choose between trusting the natural stability of gold and the natural stability of the honesty and intelligence of the members of the government. And with due respect for these gentlemen, I advise you .. to vote for gold." ----- Ellen Kelleher is a Financial Times personal finance writer. Join GATA here: Toronto Resource Investment Conference The Silver Summit New Orleans Investment Conference * * * Support GATA by purchasing a colorful GATA T-shirt: 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: * * * 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: To contribute to GATA, please visit: ADVERTISEMENT Prophecy to Become Coal Producer This Year 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
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| What Does The Junior Sector Say about the Next Move in Gold? Posted: 27 Aug 2010 02:49 PM PDT With gold rising almost each day now, those of you, who are holding the yellow metal as a long-term investment are most likely happy with this situation. However, Speculators, and particularly Contrarians are probably waiting for the ... Read More...
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| Miners On Verge of Breakout: Mergers and Acquisitions Heating Up The Sector Posted: 27 Aug 2010 01:25 PM PDT The global debt crisis and the war on deflation by the Federal Reserve is causing more producers to find ways to invest their cash. This low interest rate environment which may continue for some time will force producers whom are sitting on large cash positions to acquire more reserves. Mergers and acquisitions in the mining sector have increased over this past year due to a lack of major discoveries as well as supply and demand changes in emerging economies. We have seen a trend of investments from Asia to purchase stakes in mining companies. In 2009 the Chinese Investment Corporation, a state owned company, took large ownership positions in Teck Cominco and Penn West Energy Trust. Recently in June, China National Nuclear signed a contract with Cameco to supply 23 million pounds of uranium. Hanlong Investments took a large stake in General Moly, one of the leading North American molybdenum developers. Korea Electric Power signed a deal with Denison Mines another uranium developer. Sojitz bought a 25% interest in the Taseko's Gibraltar Copper Mine. Then recently we saw BHP Billiton trying to make a deal with Potash Corp. and Kinross, a large producer buying Redback, an exploration company. This trend should continue through 2011. Investors should be studying the companies that are receiving premiums and position themselves accordingly to make potentially large profits. Junior mining companies that are sitting on large assets that are still relatively cheap or overlooked should be considered. There are still many companies with strong assets that are trading way below value. This is an exciting and highly profitable time for the companies with assets close to production in the mining sector. For producers it is more efficient to acquire explorers to replace their reserves rather than rely on their own exploration team. I am focussing on the junior mining sector whom are close to production rather than the large producers as they will receive large premiums on their assets. Following the mining sector on a daily basis the evidence of keen interest to acquire resources is apparent. There is a search for real assets and natural resources. Foreign countries are looking for natural resources to diversify their holdings and supply their emerging economies. Large mining producers are searching for replaceable reserves of gold, silver and industrial metals. As the U.S. attempts to reflate their economy at all costs, precious metals and natural resource assets should receive a premium.
The Gold Miners are close to a major cup and handle breakout. It also appears to have set up an ascending triangle pattern. A breakout from this pattern could lead a major move into new high territory. The strong trend in gold miners is signaling that interest rates will stay low as the Federal Reserve makes every attempt to reflate the economy. Precious metals prices should stay high which would make producing mining companies highly profitable. Jeb Handwerger **** Investing in stocks is risky and could result in losing money. I am offering ideas for your consideration and education. I am not offering financial advice. Please do your own due diligence. I am not an investment adviser. I invest my own money in the stocks I suggest. I am an investor communicating my opinion of the markets with other investors. I will be straight-forward and honest. I am not a promoter cloaked as an analyst. Unlike some other "advisory" services I do NOT accept payment in ANY form from the stocks that I mention be it in cash,options or equities. I am free and independent of any taint or conflict of interest. Sign up for my free newsletter where I will post my "up to the minute" ideas and analysis of the markets. Comment and ask questions as we are all learning and growing. Empower yourself and learn how to anticipate opportunities. All material on my newsletter and blog is copyrighted. I do not mind you sharing my information and work as long as you site Gold Stock Trades. Copyright © 2010 Jeb Handwerger
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| Has the Fed Defused the Neutron Bomb? Posted: 27 Aug 2010 01:25 PM PDT Friday morning, Bruce Friesen of Global Investment Solutions forwarded Randall Forsyth's article which appeared in Barron's earlier this week, Deflation: the Neutron Bomb of Balance Sheets:
As I've repeatedly stated, deflation is the arch nemesis of the financial sector and the Fed will do whatever it takes to avert it. Moreover, in order to address pension liabilities, you need a rise in bond yields (lowers present value of future liabilities) and a rise in asset prices. In other words, you need a lot more days like Friday where stocks took off and bond yields backed up.
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| Tech Sector Watch: Is Mega Merger the Inevitable Solution? Posted: 27 Aug 2010 01:02 PM PDT By Dian L. Chu, Economic Forecasts & Opinions At the forefront of any analysis it is always important to follow the money. This is the real driver of this trend that has been going on for the past year, and will only intensify over the next four months.
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| Hinde Capital's Ben Davies makes U.S. speaking debut at CMRE dinner Oct. 21 Posted: 27 Aug 2010 01:00 PM PDT 9:15p ET Friday, August 27, 2010 Dear Friend of GATA and Gold: Ben Davies, director and CEO of Hinde Capital in London, whose recent appearances on CNBC and reports on gold market manipulation (http://www.gata.org/node/8738), silver market manipulation (http://www.gata.org/node/8938), and the price-suppressive purposes of the major gold and silver exchange-traded funds (http://www.gata.org/node/8913) have caused sensations in the precious metals sector this summer, will make his U.S. speaking debut at the fall dinner meeting of the Committee for Monetary Research and Education on Thursday, October 21, in New York. Responding modestly to the invitation, Davies remarked, "I have only just arrived in the gold war." Maybe, but "just arrived" like the atomic bomb in August 1945. Also speaking at the CMRE meeting will be Edwin Vieira Jr., the lawyer, historian, and author of the comprehensive monetary history of the United States, "Pieces of Eight." Vieira is a consultant to GATA and spoke at GATA's conference in Washington in April 2008. His address to that conference can be found here: Among the other speakers at the CMRE meeting will be: -- University of Massachusetts Professor Thomas Ferguson, who often writes on politics and economics. -- Economics Professor Larry White of George Mason University. -- CMRE Chairman, former Ambassador, former Navy Secretary, Goldwater presidential campaign treasurer, and general Renaissance man J. William Middendorf. -- Martin Mayer, the author of three dozen books, some of them about banking and finance, a scholar at the Brookings Institution. -- Walker F. Todd, CMRE director, research fellow for the American Institute for Economic Research, lawyer, author, and former official of the Federal Reserve banks of New York and Cleveland. (No one holds that against him, since he tried really hard to turn things around. He's still trying.) There will be two speaker program chairmen: -- CMRE Director Sean Fieler, managing member of Equinox Partners in New York, chairman of the Board of Directors of the American Principles Project (http://americanprinciplesproject.org/,) and chairman of its "Gold Standard 2012" initiative (http://goldstandard2012.com/goldblog/). -- And your secretary/treasurer. The dinner at the Union League Club is always outstanding, the facilities are beautiful and fascinating, and the club is just a few blocks south of Grand Central Station, so for people in the New York area it's very easy to get there. Cocktails will be served at 4:30 p.m. with the proceedings to start at 5:15 p.m. Admission will be $175 for CMRE members and their spouses, $185 for others. The full program can be found here: http://www.gata.org/files/CMREFallDinnerMeeting-10-21-2010.doc A reservation form can be found here: http://www.gata.org/files/CMREFallDinnerMeeting-10-21-2010-ReservationFo... If you've got questions, CMRE President Elizabeth Currier will be glad to answer them and you can reach her at CMRE@BellSouth.net. I hope to see many of GATA's friends at the CMRE dinner. CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy to Become Coal Producer This Year 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: Toronto Resource Investment Conference The Silver Summit New Orleans Investment Conference * * * Support GATA by purchasing a colorful GATA T-shirt: 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: * * * 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: To contribute to GATA, please visit: ADVERTISEMENT Sona Resources Expects Positive Cash Flow from Blackdome, On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia. Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013." For complete information on Sona Resources Corp. please visit: www.SonaResources.com A Canadian gold opportunity ready for growth
This posting includes an audio/video/photo media file: Download Now | ||||||
| What will happen to Gold in a Double-Dip Recession? Posted: 27 Aug 2010 01:00 PM PDT Nearly all the commentary we have heard on this question says the same. "Yes, the prospects of a Double-Dip recession have increased but it remains unlikely that it will happen". We feel that there may be just a hint of self-interest in these answers.
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| The US Government Matches Every Dollar In Tax Revenue With A Dollar In New Debt Posted: 27 Aug 2010 12:39 PM PDT In our attempts to simplify the comprehension of the ongoing serfdomization of the US population, we would like to present one of the more persuasive charts which the administration would likely be loath to demonstrate. Having collated monthly data from the FMS' Daily Treasury Statement on incremental tax revenues (individual, gross), and new debt issuance, we observe the following rather surprising pattern: since September 2008, or the month when capitalism collapsed, and the Fed, and ever other global Central Bank had to step in as a backstop of last recourse to the western way of life, the US government has undertaken the most peculiar matching program: simply said, for every dollar of individual tax revenue, the government has issued just over one dollar of incremental debt. In other words, in the past two years, tax revenues alone would have proven insufficient by over half to fill the budget gap. In yet other words, the US Treasury is now the functional equivalent of the entire US population and then some, when it comes to keeping the US economy afloat. From another perspective, with an average take down of roughly 50% of each recent auction by Indirect bidders, nearly a quarter (half of half) of US budget deficit needs is funded directly by foreigners. Should (in)formal trade wars escalate, and should the US see an embargo of foreign debt participation, then overnight a quarter of US spending will be unfundable: this includes such critical key expenditures as defense and social security spending. Also, it is important to recall, that of the $3.35 trillion in debt issued over the prior two year period, the Fed has directly (via UST purchases) and indirectly (via MBS purchases, and thus the forced rotation of MBS securities into UST securities for agency holders such as PIMCO) purchased the other half. Thus between foreigners, and the Fed, the US consumer's traditional contribution to funding the US economy has been diluted by half. And unfortunately, as the chart below shows, absent some dramatic deux ex machina, there is no chance this trend in which US debt issuance is the functional equivalent of taxpayer contributions, will ever end.
Another way of visualizing the incremental substitution of the US consumer with debt:
Some technical details:
In other words, with each passing day, the material contribution of the labor of Americans to their country is becoming increasingly diluted in the form of paper backed by the full faith and credit of the very country Americans live in. In this environment, it is easy to see why a chance in the tax regime, where the balance between tax revenue contributions and debt funding, is already so precarious, could have dire consequences on the American way of life. Should individual tax contributions fall off a cliff, as many contend, it means that the share of debt a portion of total US funding will have to increase from over 50% to a number materially higher, and the closer it approaches to 100%, the easier it is to make the case that the US economy is nothing but a ponzi system, in the purest definition of the word. (this analysis completely ignores the toxic debt spiral should interest rates ever increase in the future; Zero Hedge has previously discussed the liquidity horizon to default in various scenarios should prevailing debt interest rates beging to rise. And with average outstanding debt duration slowly but surely increasing, the second the Fed loses hold of Mid and Long-Term interest rates, it is all over - in other words QE will be a necessary staple until such time as the Fed is prepared to go the repudiation/hyperinflation route).
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| Helicopter Ben Bernanke Says Everything Is Going To Be Okay Posted: 27 Aug 2010 12:33 PM PDT 
But Bernanke insists that this time is different. This time the Federal Reserve really has got a handle on things. During his remarks at Jackson Hole, Bernanke said that the Fed will adopt "unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly." Unconventional measures? Could that be a thinly veiled way of saying that Helicopter Ben and his pals will do as much "quantitative easing" as they feel is necessary to keep the economy moving forward? Unfortunately, most Americans have absolutely no idea what quantitative easing is. Basically, when quantitative easing takes place the Federal Reserve creates money "ex nihilo" (out of thin air) and uses that money to buy stuff like U.S. government bonds and mortgage-backed securities. By pumping money into the economy like this, the hope is that banks will start lending more and people and businesses will have more money to spend. As far back as 2002, Bernanke has been openly advocating "easy money" policies as a way to stimulate the U.S. economy out of troubled times.... "The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost." Now, before we go on and discuss some of the problems with quantitative easing, it must be noted that the statement by Bernanke above is absolutely rife with errors. It is absolutely frightening that someone like Bernanke has more power over the U.S. economy than any member of Congress or even the president of the United States. First of all, the U.S. government does not issue our dollars. They are issued by the Federal Reserve. Just pull out a dollar bill right now. It says "Federal Reserve Note" on it right at the top. Secondly, the U.S. government cannot produce as many dollars as it wants. Whenever it wants more U.S. dollars it has to give U.S. Treasuries to the Federal Reserve in exchange. If the U.S. government could produce as many dollars as it wants, it could just print up $13 trillion and pay off the national debt tomorrow. But under the current system, it cannot do that. The Federal Reserve controls the currency, and the truth is that the Federal Reserve is a private central bank that is about as "federal" as Federal Express is. Thirdly, there is always a cost for producing more dollars. We'll talk about inflation in a moment, but first it must be noted that any time "the printing presses are fired up" the U.S. government goes into more debt, and every time the U.S. government goes into more debt, more interest must be paid on that new debt. So there is a very high cost involved in the creation of more dollars. In addition, every time a new U.S. dollar is created, every other U.S. dollar becomes a little bit less valuable. Essentially, the more dollars there are in existence, the less purchasing power each dollar is going to have. This phenomenon can be masked or delayed for a while, but inflation will always triumph in the end when the money supply is constantly expanded. The U.S. dollar has lost over 95 percent of its value since the Federal Reserve was created in 1913. This has not been a mistake. The Federal Reserve system is designed to slowly but surely inflate the U.S. dollar. What they do want to avoid, however, is doing it too quickly. And this is exactly what is in danger of happening in the years ahead. As the U.S. money supply dramatically expands in response to the exploding U.S. national debt we are eventually going to be dealing with some very, very serious inflation. Right now, the Bush and Obama administrations have been getting the United States into so much debt that there aren't enough buyers in the world to absorb it all (at least at the current super low interest rates on U.S. government debt). So, instead of raising interest rates to a point where U.S. debt would be suitably attractive to investors, the Federal Reserve is stepping in and is "buying" (once again with money created out of thin air) all the excess U.S. Treasuries that don't sell. This is essentially a Ponzi scheme and it keeps interest rates on U.S. Treasuries artificially low. In addition, the Federal Reserve has been handing gigantic sacks of cash to very large banks and financial institutions such as Goldman Sachs, JPMorgan Chase, Bank of America and Citigroup at almost zero percent interest and those big banks and financial institutions have been turning around and investing a large percentage of that cash in U.S. Treasuries. This has created a gigantic U.S. Treasury carry trade bubble, and it has enabled many of these giant financial monsters to make massive piles of essentially risk-free cash. This is another Ponzi scheme. But these Ponzi schemes are not sustainable and they cannot last forever. Right now Bernanke and his cohorts have been able to finance trillions in U.S. government debt and still keep interest rates on U.S. Treasuries and inflation very, very low. At some point, their juggling act will come to an end and we will have a gigantic mess on our hands. But for right now, Bernanke seems quite please with himself. The following is how Bernanke concluded his speech at Jackson Hole.... As I said at the beginning, we have come a long way, but there is still some way to travel. Together with other economic policymakers and the private sector, the Federal Reserve remains committed to playing its part to help the U.S. economy return to sustained, noninflationary growth. In Bernanke's fantasy world, the U.S. economy is going to roar back to life and will soon be stronger than it ever has been. But don't you believe him. The truth is that every single month the U.S. economy is seeing large numbers of jobs leave the country. The truth is that thanks to our exploding trade deficit, the U.S. economy is poorer at the end of every single month than it was at the beginning. The truth is that every single month the U.S. government (along with the vast majority of state and local governments) gets even deeper into debt. The United States economy is not on the road to prosperity. The United States economy gets poorer and deeper in debt every single month and is slowing bleeding to death. Ben Bernanke can run around all he wants and try to convince us that "the sky isn't falling", but at some point the American people are going to wake up and simply not believe him anymore.
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| Ron Paul interview on Auditing Ft. Knox Posted: 27 Aug 2010 12:18 PM PDT | ||||||
| Ron Paul in his own words to Kitco News on gold price manipulation Posted: 27 Aug 2010 11:49 AM PDT 7:49p ET Friday, August 27, 2010 Dear Friend of GATA and Gold: Audio excerpts from Kitco News' Daniela Cambone's interview this week with U.S. Rep. Ron Paul, which GATA called to your attenion on Tuesday (http://www.gata.org/node/8954) and in which Paul remarked that the Federal Reserve "probably" manipulates the gold price, have been posted at Kitco News here: http://www.kitco.com/KitcoNewsVideo/kitco_news.htm Click on the small window with the headline reading "Exclusive: Ron Paul Speaks on Gold Audit Bill." CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Resources Expects Positive Cash Flow from Blackdome, On May 18, 2010, Sona Resources Corp. (TSXV: SYS, Frankfurt: QS7) announced the release of a preliminary economic assessment for gold production at its flagship Blackdome and Elizabeth properties in British Columbia. Sona Executive Chairman Nick Ferris says: "We view this as a baseline scenario for gold production. The project is highly sensitive to the price of gold. A conservative valuation of gold at $1,093 per ounce would result in a pre-tax cash flow of $54 million. The assessment indicates that underground mining at the two sites would recover 183,600 ounces of gold and 62,500 ounces of silver. Permitting and infrastructure are already in place for processing ore at the Blackdome mill, with a 200-tonne per day throughput over an eight-year mine life. Our near-term goal is to continue aggressive exploration at Elizabeth and develop a million-plus-ounce gold resource, commencing production in 2013." For complete information on Sona Resources Corp. please visit: www.SonaResources.com A Canadian gold opportunity ready for growth Join GATA here: Toronto Resource Investment Conference The Silver Summit New Orleans Investment Conference * * * Support GATA by purchasing a colorful GATA T-shirt: 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: * * * 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: To contribute to GATA, please visit: ADVERTISEMENT Prophecy to Become Coal Producer This Year 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
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| Guest Post: The Narrow Road to the Deep North: Fixed Income Skew and Signatures of Japanification Posted: 27 Aug 2010 11:37 AM PDT The Narrow Road to the Deep North: Fixed Income Skew and Signatures of Japanification (pdf) Submitted by JM
This posting includes an audio/video/photo media file: Download Now | ||||||
| Tedbits: The Financial and Economic NO SPIN Zone Posted: 27 Aug 2010 11:30 AM PDT By Theodore (Ty) Andros [LIST] [*]Depression Written into Law, Part I Black Swans Crack-up Dead Ahead [/LIST] As the next leg down in the unfolding depression and global, financial crisis intensifies we all sit on a keg of dynamite known as the developed world’s economies and financial systems and wait for some fool in government to light a match. In April I spoke about black swans taking flight, now they are about to land. An explosive event is unfolding as we speak. What you are about to read is the embodiment of the Cloward-Piven strategy -- economic collapse written into law, on purpose, by radical Marxist Socialist progressives inside the Capital of the United States: Washington DC. Bubbles are still inflating because the printed money has to land somewhere, and capital flees to where it is treated best. In this case, it is to the emerging world where capitalism is thriving and governments are focused on ECONOMIC and INCOME growth, but ...
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| Posted: 27 Aug 2010 10:59 AM PDT Jason Cimpl submits: The market had another horrendous week, but not us. Last Friday we went bearish and loaded up on inverse ETFs. Every trade closed with gains and we are mostly cash. The momentum today should carry over into next week, but the bears will likely feast again. More economic data is due, and unlike today's GDP it should take the market lower starting Tuesday. The U.S. GDP for the second quarter was revised today. Last month expectations were for a 2.4% increase. Analysts revised their estimate down to 1.4%. The actual number was 1.6%. Experts have already lowered third quarter estimates. JPMorgan and Roubini call for less than 1%, Rosenberg projects negative, and Deutsche Bank thinks it will be 2%. Bennie and the Fed did not say anything important this morning, and the drop was a stop buster nothing more. Complete Story »
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| The Gold Price at the End of July Pierced the Uptrend Line but has Since Splendidly Recovered Posted: 27 Aug 2010 10:41 AM PDT Gold Price Close Today : 1,234.80Gold Price Close 20-Aug : 1,227.70Change : 7.10 or 0.6%Silver Price Close Today : 1903.9 Silver Price Close 20-Aug : 1812Change : 91.90 or 5.1%Platinum Price Close... 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!
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| The Rare "Buy Stocks!" Signal That Ain't Posted: 27 Aug 2010 10:30 AM PDT by Adrian Ash BullionVault Friday, 27 August 2010 Time was, stocks were riskier than bonds and should have the higher yield. But then came inflation... AT THE START of this week, stocks on the Dow Jones, Tokyo Nikkei and FTSE100 in London offered a bigger dividend-yield than you'd earn in interest from their local government bonds. "That's pretty rare, and in general has been quite a good indicator of turning points in the markets," notes the Financial Times' investment editor James Mackintosh. But it only looks rare if you ignore most of history. And it's only screamed "Buy!" once on Wall Street, back in winter/spring 2009. Yes, this "signal" worked, notching up a 100% strike-rate for the last fifty years. But buying stocks today because their yield (only just) beats bonds might prove ill-timed if not a disaster. For at least 75 years prior to the late-1950s, US stocks consistently paid more than 10-year Treasurys. Rather than being an eight-decade-lo...
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| Posted: 27 Aug 2010 10:14 AM PDT The latest data on global gold trends, Q2 2010, just popped into my email box from the World Gold Council. The bad news is that the higher nominal price of gold has caused a 5% decrease in jewelry sales over the prior year ... Read More...
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