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Wednesday, September 29, 2010

Gold World News Flash

Gold World News Flash

Competing Currency War in View

Posted: 29 Sep 2010 09:00 AM PDT

Some prefatory stories are highly revealing. Bank of America is badly on the ropes. On the same weekend at the end of July, when the Bank For Intl Settlements executed a 340 ton gold swap contract, two other events happened. The London metals exchange apparently suffered coordinated delivery raids, all legal, but painful nonetheless, stripping the embattled exchange of much gold bullion.


Gold-Silver Ratio Drops Below 60 for First Time in 11 Months

Posted: 29 Sep 2010 12:33 AM PDT

Sept. 29 (Bloomberg) -- The ratio of gold to silver dropped below 60 for the first time in 11 months as investors sought a protection of wealth in the white metal, which may also benefit from economic growth.


Hourly Action In Gold From Trader Dan

Posted: 28 Sep 2010 07:32 PM PDT

View the original post at jsmineset.com... September 28, 2010 09:56 AM Dear CIGAs, What a difference a set of lackluster housing data can make! It sent the Euro soaring, the Dollar tanking towards .79 on the USDX and the precious metals soaring. Based on the large increase in open interest in yesterday's session ( + 10,565), the small price range and the fact that it all occurred with gold at the $1300 level, it is now apparent that the bullion banks were making a concerted effort to cap the hold the price of gold from breaching $1300 especially on a pit session close. All in all, a large number of fresh shorts were then instituted at or near that level. Guess what – someone came into the market after the lousy housing data was released this morning and blew every one of them out of the water. Within a minute's time, a surge of buy orders took price right through $1300 completely negating the overnight selling pressure and forcing a short covering burst on up to $1304 before pri...


Gold Marks a Critical Break of $1300 While Crude is Virtually Unmoved

Posted: 28 Sep 2010 07:32 PM PDT

courtesy of DailyFX.com September 28, 2010 04:08 PM It is much easier to do our fundamental analysis when cross-market correlations are high and the very different assets respond to the same underlying fundamentals concerns. That was not the case however for the commodities market Tuesday. North American Commodity Update Commodities - Energy A Lack of Speculative Direction and a Mix for Event Risk Keeps Oil Stationary Crude Oil (LS Nymex) - $76.18 // -$0.34 // -0.44% Price action for crude would closely follow the path that equities would lay out Tuesday. This relatively restrained level of activity and complete lack of direction draws a direct contrast to gold, Treasuries and the US dollar (the latter of which is the primary pricing instrument for WTI-oil). The reason for this divergence? Fundamental factors that would pertain specifically to risk appetite trends and the supply-and-demand dynamic behind the energy market were little changed. For the other, more volatile ...


Don’t Get Shaken Off the Gold Bull

Posted: 28 Sep 2010 07:32 PM PDT

The question now is not whether Gold will go higher or not. Most of us know the primary trend is higher and will continue in the years ahead. The real question is three-fold. Are you invested? How much are you invested? Will you hold on? Going forward, as the bull strengthens and as more come on board the last question becomes most pertinent. Let me present you with some quotes that will elucidate my point. Jesse Livermore once said: “It was never my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! Men who can both be right and sit tight are uncommon.” I believe Richard Russell said that the job of a bull market is to throw off as many people as possible along the way. After all, if everyone jumped on board all at once, the bull market wouldn’t be sustainable. Finally, consider this wisdom from Dr. Marc Faber. “An investor could have done very well over the last 30 years with just a handful of inves...


Technically Precious with Merv - Sept 24, 2010

Posted: 28 Sep 2010 07:32 PM PDT

For week ending 24 September 2010 Other than Tuesday it was a pretty good week. There was all that excitement about the $1300 mark for gold but let’s get real, it’s only a number. We have higher numbers on our mind. GOLD This is a busy week-end so the commentary will be pretty short and only the facts. LONG TERM As noted above, that $1300 level is just a number. I know many attached some magical meaning to it as I mentioned last week, let’s concentrate on $1395 followed by $1600. Regardless of what one might think is going to happen or should happen in the market a technician’s credo is that a trend in motion remains in motion until verified otherwise. So, what is the trend in motion? That’s easy. I use simple indicators for the three basic concepts of following the market, i.e. trend, momentum and volume. Putting them together I come up with my assessment of where we are at the present point in time for the three basic investment...


Trade Your Way To Riches

Posted: 28 Sep 2010 07:32 PM PDT

www.preciousmetalstockreview.com September 28, 2010 Gold’s at another all-time high today. What else is new! It’s the same old, same old as it just keeps slowly mowing forth. Both investors and business networks are starting to pump the rally some, but still it’s far from mainstream Not too many friends of mine outside the investment community own any gold or gold stocks, and they really never ask about them. Sometimes they say what should I buy, I always say start with gold and silver, but they never do. At the barbers last week, not a peep about gold. In the cab on the weekend, nothing. The neighbour admiring the new stonework, nada. I’ve asked before and I’m asking again. How many people do you know who’ve held, let alone owned a gold or silver coin? I bet you will say zero, or certainly you’ll be able to count the number on one hand. As subscribers know, my personal way of pl...


Rising Prices, Falling Stockpiles

Posted: 28 Sep 2010 07:32 PM PDT

The 5 min. Forecast September 28, 2010 12:28 PM by Addison Wiggin [LIST] [*] Governments in denial as grain prices rise, stockpiles fall [*] A data point about food supply that’s uncomfortably close to the crisis of 2008 [*] Who says there’s no new farmland left? Chris Mayer’s on-the-scene report from Brazil [*] Gold Buffaloes sell out… plus, the next catalyst for gold stocks [*] [FONT=arial]“That idiot” and other reader comments on health savings accounts…continued hand-wringing over small business angst… and more! [/LIST] On Friday, government agriculture ministers from around the world converged on Rome to discuss rising food prices. Afterward, they were all singing from the same songbook. The tune those mothers sung? “Denial.” “While there were no grounds for complacency,” participants agreed, “there was no indication of an impending world food crisis,” said the formal statement ...


Flip-Flops-On-The-Ground Research

Posted: 28 Sep 2010 07:32 PM PDT

“Brazil is blessed with enormous reserves of the metals and minerals essential to modern manufacturing… Coal may be the only substance vital to industrial production that is in short supply.” ~ Larry Rohter, Brazil on the Rise: The Story of a Country Transformed As I write, I’m in Florianopolis, the capital of the state of Santa Catarina, in southern Brazil. “Floripa,” as it is known, is on the landward side of an island, where it can shelter ships from the brunt of the Atlantic Ocean’s powers. Our guide tells us that Portuguese colonists settled here in the 17th century, looking for gold. They didn’t find gold, but Floripa has become a favorite spot for wealthy Brazilians. We are staying at a resort on Jurere Beach, which is one of 42 beaches on this 200-square-mile island. Jurere is the best one, apparently, having won a number of awards. Jurere is where the rich stay when they come, and we saw some monster houses that looked like b...


Gold Stocks & Uranium: Twin Sprinters!

Posted: 28 Sep 2010 07:32 PM PDT

Stewart Thomson email: [EMAIL="s2p3t4@sympatico.ca"]s2p3t4@sympatico.ca[/EMAIL] Sep 28, 2010 1. As we move into the gold revaluation phase, the banksters are taking the mask off the recovery puppet. Elmer Fudd Public Investor is about to watch his Green Shoots WienerPlay turn into the Texas Chainsaw Massacre, with Elmer playing lead victim in the horror movie. 2. Some writers are noticing that “China basically owns the USA”. I would modify that statement to, “The banksters are very happy with the progress of their scheme to move the world economic centre from America to China. Just as they were happy with the action on their previous scheme to move the centre of action from the UK to America. 3. Regardless of your take on the fundamentals of the current China-USA relationship, and regardless of the shorter-term hit that appears near at hand for all risk markets, the fact is that the major commodity assets are “must own” a...


Gold Former Resistance Now Support

Posted: 28 Sep 2010 07:32 PM PDT

courtesy of DailyFX.com September 28, 2010 06:17 AM Daily Bars Prepared by Jamie Saettele Sights remains on round figures such as 1300, 1400, 1500, etc. Watch channel resistance going forward. The line is at 1321 today and increases about $3 a day. Of note are the blue colored bars on the chart. These bars indicates an RSI that is above 75. This happened back in November 2009 and May. In both instances, Gold continues higher (but possibly in more of a choppy manner) before reversing....


The Keynesian Solvency Standoff and the Case for Shorting Treasuries

Posted: 28 Sep 2010 07:32 PM PDT

“Markets can remain irrational longer than you can remain solvent.” – John Maynard Keynes I wish I had ten dollars for every market novitiate who had the temerity to enlighten me with the above quote in response to my proclamation that U.S. Treasuries are doomed to fail. Of course, then I’d be holding stacks of paper bearing the face of evil incarnate — Alexander Hamilton. By the way, yes, I did adjust my cliche for inflation. What, exactly, constitutes “solvency?” Look, everybody knows I hate Keynes. And why shouldn’t I? My God, he even loathed himself by the time he stood before his maker. His theories are preposterous, and he knew it! And with every day that passes, we get ever closer to the inevitable collapse of the American empire, caused by decades of reckless abuse of the financial system by the federal government — all justified by Keynesian theory. I know many of you disagree, so I’m going...


Jim?s Mailbox

Posted: 28 Sep 2010 07:32 PM PDT

View the original post at jsmineset.com... September 28, 2010 09:22 AM Chicago Fed: Economic Activity Weakened in August CIGA Eric The Chicago Fed National Activity Index (CFNAI) has been decreasing at an increasing rate since March 2010. Economic activity is either rising or falling at an increasing rate. The calls for another New Deal II will intensify as the economy continues to stall in 2010-2011. Chicago Fed National Activity Index (CNFAI) and S&P 500 Average: Led by declines in production- and employment-related indicators, the Chicago Fed National Activity Index decreased to –0.53 in August from –0.11 in July. None of the four broad categories of indicators that make up the index made a positive contribution in August. Source: chicagofed.org Thanks Bob. More   Eric, QE to infinity and the dollar at USDX 7200, .6200, and finally .5200 means currency induced cost push inflation is unavoidable. Jim Ken Fisher Dubs New Normal `Idiotic,’ Sees `Great...


In The News Today

Posted: 28 Sep 2010 07:32 PM PDT

View the original post at jsmineset.com... September 28, 2010 09:46 AM Thoughts On Gold From The Bush In Africa This is nothing more than your standard round number action in anything. Gold is headed for $1650 and nothing will stop it.   Jim Sinclair’s Commentary The flag is going up the pole to see if it is saluted. Greenspan has practically said the same thing. Let’s see if his bagged man Bernanke goes for it as things spiral out of control. The likely result is a virtual bag of currencies tied to gold not by conversion or interest rates, but by a relationship to a broad number for Western international liquidity, sort of a Western world M3. Gold is the final refuge against universal currency debasement States accounting for two-thirds of the global economy are either holding down their exchange rates by direct intervention or steering currencies lower in an attempt to shift problems on to somebody else, each with their own plausible justification. Noth...


April Disconnect

Posted: 28 Sep 2010 07:32 PM PDT

By Neil Charnock goldoz.com.au Yes I know it is now September, and no this article is not five months late. We have been in a consolidation phase and this has been a very strange year. Gold made a high in May just US$50 below the current record price which is nudging US$1300. At the Northern hemisphere summer solstice, on June 21st this year gold made another high just US$34 below Mondays close. The XGD separated from the general stocks back in April 2010 which is not something you hear about on the news here in Australia. Gold is still virtually un-owned here in Australia – only a small percentage of investors are interested because we were barely scratched by the GFC relatively speaking. Property has not crashed here in most city areas and now we are being told “it is all better now”. I want to tell you about the most promising set up for gold stocks since 2005 here in Australia at this time. We have witnessed some lacklustre buying ...


Chinese Consumers Rush for Gold

Posted: 28 Sep 2010 07:32 PM PDT

"Rickards sees dollar collapse...$5,000+ gold. Despite poor initial results, Japan still wants lower yen. "Gold is final refuge" - Ambrose Evans-Pritchard. Europe's Central Banks halt gold sales. Chinese consumers rush for gold... and much, much more. " Yesterday In Gold And Silver Gold poked its nose through $1,300 spot a few moments after Comex trading began in New York on Monday morning... and that was all the excitement there was. The gold price closed about six bucks lower than that, but I wouldn't read anything into it. Volume was on the light side. Yesterday was options expiry in both gold and silver... and today its the futures market. Silver's high [around $21.63 spot] was shortly before London opened on Monday morning... with a secondary high at the same time as gold's high... minutes after the New York open. It managed to close at exactly Friday's closing price. There are still 228 September silver contracts open. This situation has to res...


Crude Oil Holds Gains Despite Decline in Stocks, Gold Breaks Five-Session Win Streak

Posted: 28 Sep 2010 07:32 PM PDT

courtesy of DailyFX.com September 27, 2010 10:51 PM Crude oil has been outperforming equity markets in recent days after strongly underperforming in weeks prior. An advance toward $80 is possible on growth optimism. Commodities – Energy Crude Oil Holds Gains Despite Decline in Stocks Crude Oil (WTI) - $76.22 // $0.30 // 0.39% Commentary: Monday was a quiet day for crude, with prices ending the session $0.03, or 0.04%, higher. U.S. equity markets sold off about 0.5% on the day, so in that context, crude oil’s “quiet day” was a strong showing. Overall, oil looks like it is consolidating after last week’s 3.8% advance. Two notable bullish factors are underpinning crude in recent days: an improved economic outlook following better-than-expected economic data and a weak U.S. Dollar. Oil prices may ascend to levels over $80 in the coming weeks as economic worries continue to fade. The economic calendar tomorrow features U.S. Consumer Confidence figure...


GoldSeek.com Radio Gold Nugget: Bill Murphy & Chris Waltzek

Posted: 28 Sep 2010 07:00 PM PDT

GoldSeek.com Radio Gold Nugget: Bill Murphy & Chris Waltzek


John Paulson's Scary Speech: Double Digit Inflation By 2012, Gold At $4,000

Posted: 28 Sep 2010 06:19 PM PDT

John Paulson scared the pants off of a packed audience at New York's University Club recently as he warned them of huge changes in the economic environment in the years to come.


DOLLAR NEARS DEBT CRISIS, DEPRECIATION, CHINA ADVISER WARNS

Posted: 28 Sep 2010 06:14 PM PDT

Sept. 28 (Bloomberg) -- The U.S. dollar is "one step nearer" to a crisis as debt levels in the world's largest economy increase, saidYu Yongding, a former adviser to China's central bank. Any appreciation of the dollar is "really temporary" and a devaluation of the currency is inevitable as U.S. debt rises, Yu said in a speech in Singapore today.


Don’t Get Shaken Off the Gold Bull

Posted: 28 Sep 2010 06:08 PM PDT

The question now is not whether Gold will go higher or not. Most of us know the primary trend is higher and will continue in the years ahead. The real question is three-fold. Are you invested? How much are you invested? Will you hold on? Going forward, as the bull strengthens and as more come on board the last question becomes most pertinent. Let me present you with some quotes that will elucidate my point.


GATA clashes with Fed in federal court -- will you join the struggle?

Posted: 28 Sep 2010 06:04 PM PDT

GATA's freedom-of-information lawsuit against the Federal Reserve in U.S. District Court for the District of Columbia, an action seeking access to the Fed's records involving gold and particularly gold swaps, is nearing a critical point.


Gold a Bubble? NOT - EVEN - CLOSE

Posted: 28 Sep 2010 06:00 PM PDT

Why Did the Gold Price Start Rising From $275, In 2000…

Posted: 28 Sep 2010 05:56 PM PDT

Gold Bubble?...Not By This Fiat Measuring Stick

Posted: 28 Sep 2010 05:48 PM PDT

Asian Metals Market Update

Posted: 28 Sep 2010 05:04 PM PDT

A weaker US dollar along with a technical break out resulted in gold and silver rising while copper and other base metals remained firm. Investors are in a dilemma as Europe, UK and Japan economic zones are all in stimulus package mode.


SLV – Anatomy of a Healthy Rally

Posted: 28 Sep 2010 04:55 PM PDT

Dr. Duru submits:

In mid-May I tried to make a case for buying silver as a complement to holdings in gold. At the time, the gold/silver ratio looked ready to break lower and provide silver some lasting out-performance. Instead, silver peaked for the rest of the summer and gold regained its edge. Over 4 months later, the gold/silver ratio is finally at its low for the year and silver is now looking stronger than ever trading at all-time highs (thanks to many of the world’s central banks).

Silver poised to out-perform gold again

Silver poised to out-perform gold again


Complete Story »


SLV – Anatomy of a Healthy Rally

Posted: 28 Sep 2010 04:55 PM PDT

Dr. Duru submits:

In mid-May I tried to make a case for buying silver as a complement to holdings in gold. At the time, the gold/silver ratio looked ready to break lower and provide silver some lasting out-performance. Instead, silver peaked for the rest of the summer and gold regained its edge. Over 4 months later, the gold/silver ratio is finally at its low for the year and silver is now looking stronger than ever trading at all-time highs (thanks to many of the world’s central banks).

Silver poised to out-perform gold again

Silver poised to out-perform gold again


Complete Story »


Attack on 5,000

Posted: 28 Sep 2010 04:40 PM PDT

April seems like such a long time ago. What were investors thinking then? As you can see from the chart below, April was the last time the ASX/200 traded near the 5,000 level. The index is nowhere near the 2008 high (as you can see). But maybe it's getting ready to make a run to 5,000 by the end of the year.

Stocks rally like it's 2008

Stocks rally like it's 2008

The wire services are reporting that the big miners are driving stocks up on higher copper and gold prices. That's a pretty shallow explanation. It's also an explanation that's riddled with its own internal contradictions.

Copper and gold are both metals. But as market soothsayers...they couldn't be more different than Cain and Abel...or Batman and Catwoman...or Spiderman and Doctor Octopus. What gives?

In the bullish corner we have the Stock Doctor himself, Alex Cowie. His trip to Africa involved fiels research on an Aussie-listed copper play. Earlier this week he sent us a short note explaining that while copper prices are up 33% this year, stockpiles are low. He says this is usually a slow time of year for copper. That means the price rises are even more bullish.

What could all of that mean?

Well, if Dr. Copper is right - Dr. Copper being the nickname for copper because copper has a PhD in in economics - he's bullish on the global economy, but in a vague way. He's telling us to focus on China, India and the next century of growth led by emerging markets (which, in the aggregate, are bigger than America) and to quit droning on in a nostalgic and annoying way about that has-been America and the growth paradigm of the last century. He's also of the opinion that the Global Financial Crisis is old news.

We asked Slipstream Trader Murray Dawes if copper had figured in any of his recent trades. The question was prefaced by a look at the chart below. The spot copper price is looking a lot like the ASX/200. It hasn't made a new all-time high yet. But the fake-out move lower earlier this year looks like it's been rebuffed.

Copper Price

Source: ANZ

"Murray," we asked, "when copper's 50-day MA crossed below its 200-day MA in 2008 it was pretty bearish. But it did the same thing in 2007 and again this year and the spot price moved higher. What's going on now?"

"It looks like it's got a lot of momentum. But I don't have any trades on related to it."

"I do! Or will!" piped up Kris Sayce. He's the editor of Australian Small Cap Investigtaor, our small cap letter for speculative punts.

"Aren't you worried that copper is topping out?"

"No. This is a letter for speculators," Kris replied. His report, which presumably includes a highly speculative copper share, comes out tomorrow.

All of this leaves your editor scratching his head. It' s not that we think copper is lying. After all, copper is a metal, not a politician. To the extent that it "speaks", it's like one of those psychic mediums that channels the voice of the dead. That is, copper doesn't speak with its own voice. It's merely telling you what investors and speculators think (or at least what they're doing, which may or may not include thinking).

We can't help but think that now feels like 2007 and 2008. Despite all the convincing and bullish arguments for metals - grounded in the Chindia story - it turned out that commodity prices and futures were a big beneficiary from hot money speculators chasing risk and fleeing the U.S. dollar. All the other arguments were just window dressing for some good old fashioned asset price speculation.

Trust gold on this one. The sagely yellow metal leapt to a new all-time high in New York trading yesterday. It traded as high as $1,311 before retreating a bit. And now, institutional brokerages who once couldn't find the time of day to talk about gold are competing with another to predict how high it will go.

Yes, this should make you nervous. And yes, it's likely gold will go back below $1,300 before going up again. But below, we turn it over to the Stock Doc for by far the most hyperbolic prediction of where gold could go. Try US$27,000!

But wait! Before you chortle or choke on your chai, you should know that Alex used a very basic comparision between public debt and central bank gold reserves to come up with his number. It was not plucked from thin air. And he's not saying that gold will go that high. Only that in a theoretic sense, it could.

Alex wrote that article in May. In the same report he recommended Aussie-listed gold shares that should have benefitted from the rise in US gold prices. They have.

Your editor's concern today, though, is where do we go from here? This is the central question we'll be taking up at the Gold Show in Sydney in early November. If gold stocks are just an investment and gold is just a commodity, then all these things move in cycles. Gold will make a high at some point and it will be time to sell and buy something else.

But if gold is money - and it IS money - and if it's being remonetised into the world's financial system (and into private portfolios) then something greater is afoot. That "something greater" is the breakdown of the debt-backed money model of the Welfare State. And that breakdown means the GFC isn't over yet and Dr. Copper is a beguiling little metallic liar. More on that tomorrow.

Dan Denning
for The Daily Reckoning Australia

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nyc tells us how to invest in gold

Posted: 28 Sep 2010 04:25 PM PDT

what a joke :wub:

http://online.wsj.com/article/SB1000...googlenews_wsj

It's hard to make a case for gold as an investment right now, given that it has gained more than 25% over the last one year. "We are, if not at the peak, very close to the peak," says Naveen Fernandes, head of institutional broking at Mumbai firm K. R. Choskey Shares & Securities Pvt. Ltd.

Still, if you want to invest in gold, the most convenient way to do so is to buy gold exchange-traded funds, which hold gold for you electronically just like shares. However, many people prefer to own physical gold.

If you are among them, consider buying coins and bars instead of jewelry. The latter can be expensive to buy and sell because jewelers typically deduct 5% to 10% of gold's market price as "making charges."

gold owner's enemies: fdr, truman, jfk, ike

Posted: 28 Sep 2010 04:20 PM PDT

interesting history that i didnt know --

http://www.numismaster.com/ta/numis/...rticleId=13895

But it is a fair bet that any gold seizure program or confiscation would likely use as its starting point the gold regulations that existed from 1933 until Dec. 31, 1974, when private gold ownership restrictions were lifted in the United States, as well as abroad for U.S. citizens (subject to the country in which they resided or stored their gold).

FDR's Executive Order 6260, and Treasury Secretary Woodin's actions, authorized the seizure the 1933 gold seizure. Based on the Trading with the Enemy Act of 1917, the tenor was approved by consecutive Presidents into the Kennedy Administration. As to the act itself (now almost a century old): President Obama asked in the fall of 2009 for an extension of one year on the provisions of the act that affected Cuba.

The quick history of its use on coinage: on Dec. 16, 1950, President Truman proclaimed the existence of a national emergency arising out of the menace of communist aggression. Proclamation No. 2914, 64 Stat. A454 (1950). A decade later, on Nov. 29, 1960, President Eisenhower declared the continued existence of this emergency, and specifically confirmed Roosevelt's Executive Order No. 6260 and the regulations issued thereunder. [Exec. Order No. 10896, 25 Fed.Reg. 12281 (1960)].

Similar action was again taken by President Eisenhower on Jan. 14, 1961 [Exec. Order No. 10905, 26 Fed.Reg. 321 (1961)], and by President Kennedy on July 20, 1962. Exec. Order No. 11037, 27 Fed.Reg. 6967 (1962).

Originally, gold seizure was domestic only – that is, you were prohibited from hoarding in the United States. Kennedy's order extended the gold ownership ban to prohibit overseas ownership of gold coin by Americans. Again, rare and unusual coins were exempted.

To those who say that all this is window dressing, and that there were no civil or criminal prosecutions, here's a list of some of the civil cases pursued by the Treasury Department seeking to confiscate 1933 double eagles that made it outside the Philadelphia Mint: Stack v Strang, 112 NYS2d 197 (Sp. Term, NY CO. Sup. Ct. 1952); US v Barnard, 72 F.Supp. 531 (WD Tenn. 1947); US v One $20 Gold Coin, Known as a 1933 'Double Eagle' Minted at the United States Mint in Philadelphia, Pennsylvania (96 Civ. 2527) SDNY 1996; and the most recent Langbord v US Dept Treasury, Slip Copy, 2008 WL 4748174 (E.D.Pa.).

But that's not all. In a mid-1960s prosecution for violation of the ownership ban, the 9th Circuit Court of Appeals concluded, "the power conferred upon the President by [the Trading with the Enemies Act] [12 USC] section 95a(1) was not confined to the 1933 banking crisis, but extends to any national emergency proclaimed by the President" [Pike v US, 340 F.2d 487 (9th Cir. 1965)].

A review of the office files of the President Dwight D Eisenhower Administration (now available in microfilm) shows that Treasury Secretaries George Humphrey and Robert Anderson have numerous entries on the flow of gold abroad, Soviet sales of gold to the West, and foreign liabilities against gold holdings.

With days left in office, on Dec. 1, 1960, President Eisenhower issued Executive Order No. 10896 [25 Fed. Reg. 12281 (1960)] proclaiming that, in light of the continued existence of the [national] emergency, [Roosevelt's] Executive Order No. 6260 and the gold regulations issued thereunder "are hereby approved, ratified and affirmed and shall continue in full force and effect . . ."

Enter the Office of Domestic Gold and Silver Operations, established in the office of the Under Secretary for Monetary Affairs by Treasury Department Order No. 193, Oct. 9, 1961. The federal records description of the agency belies its power; it "Administered regulations relating to purchase, sale, control and use of gold and silver."

Officially, its licensing authority was terminated by Executive Order 11825, on Dec. 31, 1974. And it was finally disbanded on July 31, 1975, its functions transferred to the office of the Assistant Secretary of the Treasury for International Affairs.
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