Gold World News Flash |
- China, Russia quit dollar on bilateral trade
- FOMC Minutes: Fed Is Now Openly Targetting A (Much) Lower Dollar: Zero Hedge
- It is absurd to believe that the U.S. dollar will be a safe haven over the intermediate term
- The November 23, 2010 edition of Casey's Daily Dispatch, now available
- The Keiser Report: Episode 73
- Keiser Report: Episode 79
- Keiser Report: Episode 83
- Keiser Report: Episode 85
- North Korean Bombing South's Yeonpyeong Island
- Should You Buy SLV the Silver ETF?
- Deflation and the Dollar
- Crude Oil Tests Key Support for a Fourth Day, Gold Rises on Korean Conflict Bucking D
- Fed Minutes Show Only Hours Until Dollars' Demise as the Economy Will Be The Real Turkey This Thanksgiving
- Does the Fed Create Money?
- Global Gold Hedge Book Falls 2 Million Ounces in Q3
- At secret meeting, Fed considered buying everything and holding press briefings
- Bruno del Ama: Smart Money Flocking to Uranium
- We're Long Gold… AND the Dollar
- Gold, Juniors, Gas: Technical Thumbs Up!
- BIS gold records may facilitate double counting, study concludes
- Keiser Report on Silver Revolt: ‘Crash JP Morgan' Goes Viral!
- Grandich on gold top callers, Turk on Europe's dropping shoes
- Grandich on gold top callers, Turk on Europe's dropping shoes
- Candy, Gold forecast, stock update, Max Keiser (lots of candy)
- Gold Daily Chart
- Economics Professor Ignores Fiat Money Failures
- [Audio] Chris Interviews Ted Butler: The End of Silver Price Manipulation
- More Silver for SLV
- Peter DeGraaf: Many silver options better than SLV
- Here is a quick study first published by Michael J. Kosares***, October, 2007 that tells why the price of gold may be irrelevant in a time of price relativity. Worth a read. . . . .
- Gold, Silver, Crash JP Morgan Buy Silver, MrsSilverQueen admin / guest speaker
- Market Recap: 11.23.2010
- The Gold Price Cleared the $1,365 Barrier, Next Stop $1,424
- Gold Dominates the Headlines But the Smart Money is Flocking to Uranium
- In The News Today
- Jim?s Mailbox
- Video of Gold Perma-Bear
- Gold Stocks in a Failing Fiat Currency - November 23, 2010
- Long Gold, Long the Dollar
- So, So Much, Much Money
- Ireland: What a Mess!
- James Turk - Gold Separating From the Dollar
- Ron Paul: Korea Conflict May Be Orchestrated Crisis To Boost Dollar
- TUESDAY Market Excerpts
- Mawson Resources Shares Enjoy 'Bonanza Grade' Gold Find
- PART 2 – Keiser/Maloney Buy Silver & Gold (And Crash JP Morgan!) – Over there at Place de la Concorde is where they cut off the aristocrats heads!!! Peak Silver!?
- Merkel Points to `Serious’ Bailout Risk as Spanish Bonds Drop, Reggie Middleton says “Ya Damn Skippy” – Here’s How We Called It
- Market Commentary From Monty Guild
- Irish PM is forced to agree to dissolve government
| China, Russia quit dollar on bilateral trade Posted: 24 Nov 2010 02:07 AM PST China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday in St. Petersburg.
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| FOMC Minutes: Fed Is Now Openly Targetting A (Much) Lower Dollar: Zero Hedge Posted: 23 Nov 2010 07:50 PM PST Despite what some lying FOMC sack of fecal matter said on TV recently, it turns out the Fed was not only fully aware QE2 would crush the dollar, but welcomed it.
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| It is absurd to believe that the U.S. dollar will be a safe haven over the intermediate term Posted: 23 Nov 2010 07:37 PM PST An even more absurd belief is the one that puts U.S. dollar and U.S. debt as a safe haven. There is not any convincing economic evidence that the U.S. dollar is well managed, and there is no reason to believe that the dollar will rise in value. In fact, it is the U.S. governments' intention to devalue the dollar and to print money to avoid a deflation in the U.S. Why do some global commentators see the dollar as a safe haven? In our opinion, the only safe haven is precious metals, energy, food and other assets which will hedge against the inevitable inflation that the above policies create.
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| The November 23, 2010 edition of Casey's Daily Dispatch, now available Posted: 23 Nov 2010 07:27 PM PST Gold Stocks in a Failing Fiat Currency
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| Posted: 23 Nov 2010 07:27 PM PST Every week Max Keiser looks at all the scandal behind the financial news headlines. This week Max Keiser and co-host Stacy Herbert look at the year of records, from the record collapse in US house sales to new record...
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| Posted: 23 Nov 2010 07:27 PM PST Every week Max Keiser looks at all the scandal behind the financial news headlines. This week Max Keiser and co-host Stacy Herbert look at the scandals of Greenspan&os;s "gold warning"; currency wars breaking...
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| Posted: 23 Nov 2010 07:27 PM PST Every week Max Keiser looks at all the scandal behind the financial news headlines. This week Max Keiser and co-host Stacy Herbert look at Central Banks causing gold spikes, moaning savers, and cement mixers driving...
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| Posted: 23 Nov 2010 07:27 PM PST Every week Max Keiser looks at all the scandal behind the financial news headlines. This week Max Keiser and co-host Stacy Herbert look at rich people buying gold and the rest of the world uncoupling from the United...
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| North Korean Bombing South's Yeonpyeong Island Posted: 23 Nov 2010 05:34 PM PST
By Static Chaos U.S. stocks dropped more than one percent on Tuesday with two Korea's exchanging fire adding to the already worrisome Irish debt crisis in Europe. The latest with Ireland is that European Union (EU) officials estimate that a rescue package may amount to about 85 billion euros ($114 billion). That news sent S&P issuing a new downgrade on Ireland's sovereign debt. However, Ireland (along with Spain and Portugal, etc.) has mostly been factored in, so the new development in Korea is what really jolted the market (or some may say the market is dying for an excuse to correct.) The latest conflict between North and South Korea could be counted as one of the most dramatic confrontations since the Korean War in 1953. Based on Seoul's account, it all started with North Korea warning the South to halt military drills near their disputed sea border. The South, naturally did not comply, and the North retaliated by shelling the small island of Yeonpyeong (clip below). According to AP, Seoul responded by unleashing its own K-9 155mm self-propelled howitzers and scrambling fighter jets. Two South Korean marines were killed and 15 troops and three civilians were also injured. There are no confirmed casualties from North Korea yet. The communist side warned of more military strikes if the South violates the maritime border by "even 0.001 millimeter," while South Korea vowed while South Korea vowed "massive retaliation" should North Korea attack again. The U.S. reacted by President Obama issuing statement "strongly condemned the attack" and that the U.S. “stands shoulder to shoulder” with South Korea on this. Meanwhile, China--still neck-deep in a similar border dispute with Japan and other neighboring countries--issued a relatively indifferent "call for calm" statement. I've seen "World War III" and "Gulf War III" mentioned in some news articles over this event, but believe it is an unlikely scenario. A Korean War II serves nobody's interest, including North Korea. And I imagine China is fully aware of how much disruption a Korean war II would bring to its economy. On the other hand, I would be more worried about a third Sino-Japanese War, since there's a fresh stand-off between Chinese and Japanese patrol boats just past weekend near their disputed islands. China is indeed Korea times 1,000 or worse when it comes to size and fire power, not to mention the feud with Japan runs deeper than the one between the two Korea's. So, it seems King Dollar still reigns supreme as long as there's a faintest threat of war and chaos, which will likely give people such as Joe Weisenthal an excuse to continue praising QE2 Is Not Bad For the Dollar.
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| Should You Buy SLV the Silver ETF? Posted: 23 Nov 2010 05:16 PM PST Peter Degraaf
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| Posted: 23 Nov 2010 05:07 PM PST David Goldman submits: North Korea fires on South Korea and the gold price falls. Counter-intuitive? Not quite. As I’ve been arguing for the past two weeks, a chill wind of deflation is blowing through world markets. The European Community is rescuing Ireland (and probably Portugal and then Spain) because $1.3 trillion of bank assets are in jeopardy. American banks’ loan quality is not that great, either. China is tired of capital inflows from the US bubbling through its rather primitive financial system and has slapped higher reserve requirements on its banks. A prospective global contraction of the balance sheets of banks is deflationary. That means cash becomes scarcer. The dollar goes up and risk asset prices go down. The Euro declines as the depth of the PIIGs problem comes to light, and, despite the miserable state of the American economy and the Fed’s determination to degrade the dollar, the US dollar remains the place to hold cash. Complete Story »
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| Crude Oil Tests Key Support for a Fourth Day, Gold Rises on Korean Conflict Bucking D Posted: 23 Nov 2010 05:01 PM PST courtesy of DailyFX.com November 23, 2010 08:51 PM Wednesday will be the final trading session before the Thanksgiving holiday in the U.S. The government inventory on crude inventories is on deck as Europe debt concerns linger. Commodities – Energy Crude Oil Tests Key Support for a Fourth Day Crude Oil (WTI) - $81.70 // $0.45 // 0.55% Commentary: Crude shed $0.49, or 0.6%, to settle at $81.25 on Tuesday, but prices are recovering much of those losses in overnight trade. Trading action continues to be dominated by the debt crisis in Ireland and Europe more generally, but the addition of a skirmish between North and South Korea added to concerns on Tuesday. U.S. equities tumbled 1.4% and got close to testing last week’s lows but held on. Similarly, oil prices successfully tested a support level near $80 for a fourth day. We have suggested that traders accumulate positions around that price with tight stops. Crude’s fundamental underpinnings remain ...
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| Posted: 23 Nov 2010 04:50 PM PST
The market is limping in to Thanksgiving like Kenny Easterday with a broken wrist thanks to the European Union being on shakier ground than Gabourey Sidibe on a tight rope, North Korea dropping bombs on South Korea after South Korea's TSA apparently tried to touch Kim Jong-ils junk, and the Fed releasing the minutes from their last meeting which showed less consensus than how to spell "Bernanke" at a Tea Party convention.
Loyal readers of the award winning When Genius Prevailed know that Odette Yustman is hot, but they also know that Money McBags has been baffled, bufuddled, and downright befuckingperplexed at the market's continued strong rally given that data remains tepid at best and Europe continues try to sweep their problems under a rug more tattered than Elton John's. So continue to make sure you are careful in your investments because the fan is on and the global economy just downed a bag of Nacho Cheese Gorditas and a six-pack of Metamucil.
As for macro news today, the Fed released their minutes from their last meeting and in them we learned that they downgraded their assessment of the economy from "meh" to "oops" with GDP targets for next year lowered from a range of 3.5% to 4.2% to a range of 3.0% to 3.6% while also raising the completely fictitious upper range of the long run rate of unemployment from 5.3% to 6%. So suck on that NAIRU. The minutes also showed that the Fed discussed that QE2 would sink the value of the dollar (despite their repeated denials of such an effect) and ways to improve their communication with the public such as not lying, using smaller words, and employing cartoon characters.
One other interesting detail released was that the Fed had a special video conference two weeks before they officially met (though the video conference got off to a rocky start when Janet Yellen and Sandra Pianalto were subjected to a flurry of cock shots as Bernanke, Hoenig, and William Dudley thought they were merely on chatroulette). The conference was to discuss hot button issues such as setting explicit targets for inflation and long-term interest rates (targets as explicit as "Fucking higher" and "Cockposterously higher") and which Fed member had the awesomer name between Christine "Honey I'm" Cumming and Brian P. Sack (and when Money McBags becomes the next dictator, he is going to require everyone with the last name Sack to have the middle initial P.).
In other macro news, GDP was revised up to 2.5% from 2% thanks to stronger exports, better consumer and government spending, and a fuckload more inventories as businesses stock up on broken dreams and malt liquor to make their own Four Loco. Inventory increases accounted for about half of the 2.5% growth so as inventory trickles down in the next Q as re-stocking goes the way of full bush and those fucking annoying Wassup Budweiser guys (thanks to the holiday season ending and federal unemployment benefits drying up), GDP will struggle to stay positive in the upcoming Qs.
Elsewhere, existing home sales fell 2.2% sequentially or 26% y/y depending on whether you are bearish or fucking bearish (actually the sharp year over year decline was driven by last year's home buying tax incentive, but whatever). Sales were effected by some states postponing foreclosures due to something about robosignatures and straight up fraud, as well as people not having any money. The annual rate of sales is now 4.43MM, which was below the 4.49MM guessed at by analysts, and means there is now 10.5 months of inventory on the market not counting shadow inventory and Ice-T's wife's ass.
As mentioned earlier though, it was international news that figuratively pissed in the market's Cheerios today as North Korea and South Korea are nearing war and threatening to use biological weapons such as unrefrigerated kimchi on each other. In Europe, Ireland bent over and took their $100B+ bailout from the EU who once again showed their love for Doin' Da Butt. This massive bail out has effectively caused the Irish government to collapse as PM Brian Cowen's Fianna Fail party has officially Fianna-failed. While Cowen won't step down immediately, he agreed to hold new elections after the budget passes in order to "let some other schmuck deal with this mess."
Three funds will be created for Ireland in the bail out, one will back up the country’s failing banks, one will allow Ireland to continue government operations without turning to the bond markets for help, and the final one will get Ireland one night with homegrown Claire Tully. This package should allow Ireland to operate without funds from the markets for up to three years, unless they follow Greece's lead and fabricate their books worse than Stephen Ambrose on a bender. Making matters worse was that Ireland's central bank Governor Patrick Honohan said, "Irish banks are up for sale" and Money McBags is willing to bid anything between "not a fucking chance" and "eat a bag of dick" because he hasn't seen assets that toxic since Paris Hilton got her last pap smear.
Luckily, Greece is getting their aid (as they must have received the placebo in the Truvada trials) of $12B in January from the IMF but German Chancellor Angela Merkel pointed out there is now serious bailout risk sweeping the continent as moral hazard from stepping in for Greece and Ireland has created a slope slipperier than OJ's alibi (he did have an alibi, right?).
In the market, the FBI raided 3 hedge funds after they likely tracked messages posted to Dickflash emanating from those offices. As for stocks, J Crew was up 16% after agreeing to a $3B buyout from two private equity funds who have until the month to return the deal for store credit if they are not happy. HPQ was up 2% after a decent Q in which the company beat analyst guesses on both top and bottom lines and gave above the street guidance. The quarter was highlighted by new CEO Leo Apotheker playing Santa Claus to former CEO Mark Hurd's Scrooge by reversing pay cuts, reinstating a 401k matching plan, and bringing Skinemax back to break room TVs. Also, NYT strangely shot up again today on unusual volume as algorithms apparently don't know that the newspaper industry is shrinking faster than gonorhhea cases in the US.
In other earnings news, Hormel put up a good Q with profit up 17% thanks to the strong performance of Jennie-O Turkey and the fact that with real unemployment running at ~17%ish, SPAM is now considered a luxury good, Finally Campbell's soup was down after missing analyst guesses as their promotional spend didn't pay off because apparently hiring Mel Gibson as a spokesperson was a case of bad timing.
Money McBags has plenty more including real fundamental analysis from yesterday that will change the way you think about research, and civility. You can find him daily at the award winning When Genius Prevailed, so be sure to tell a friend, tell an enemy, and most importantly tell Sofia Vergara.
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| Posted: 23 Nov 2010 04:49 PM PST [FONT=Times, serif]By Michael Pento[/FONT] [FONT=Times, serif]Certain deflationists have recently gone on record saying that the increase in the Fed's balance sheet is meaningless with regard to creating inflation because our central bank can't print money, it can only create bank reserves. The problem with their view is that it both disregards the definition of money and ignores the process of creating bank reserves. [/FONT] [FONT=Times, serif]Money is commonly defined as "a medium that can be exchanged for goods and services and is used as a measure of their values on the market, including among its forms a commodity such as gold, an officially issued coin or note, or a deposit in a checking account or other readily liquefiable account." The Fed creates a "readily liquefiable account" when creating excess bank reserves, so it is also creating money. Since inflation is properly defined as an increase in the money supply, the Fed unquestionably creates b...
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| Global Gold Hedge Book Falls 2 Million Ounces in Q3 Posted: 23 Nov 2010 04:41 PM PST "An interview with silver analyst Ted Butler. SLV takes in another 879,910 ounces of silver. Can the euro still be saved? Perth Mint says silver sales to jump as demand gains. Buy all the metal that you can... and much, much more. " Yesterday in Gold and Silver Gold was up five bucks right at the Far East open on Monday morning, but ran into stiff opposition within a few minutes. An interim top was set at 2:30 p.m. Hong Kong time... and from there it was all down hill until minutes after the London close. This was gold's low price of the day which Kitco reported as $1,347.60 spot. From that point, the strong selling virtually disappeared... and a rally [not unopposed] began that ran gold up to its high price of the day at $1,368.90 spot shortly before 4:00 p.m. in electronic trading in New York. Silver went ballistic the moment trading began in the Far East on Monday morning... but it, too, ran into the same not-for-profit seller. At one point, I sa...
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| At secret meeting, Fed considered buying everything and holding press briefings Posted: 23 Nov 2010 04:37 PM PST Fed Considered Long-Term Rate Target in Secret By Robin Harding http://www.ft.com/cms/s/0/63b58a42-f737-11df-9b06-00144feab49a.html#axzz... The US Federal Reserve considered a radical change to its monetary policy at an unannounced meeting in mid-October that could have committed it to buying an unlimited amount of securities, according to the minutes of its November meeting. At the October 15 meeting, held by video conference, the Fed discussed whether it should target a long-term interest rate, suggesting this could be an option if inflation continued to fall in the face of the central bank's new $600 billion round of quantitative easing, nicknamed QE2. But the meeting rejected the policy change. Targeting a long-term interest rate -- fixing the 10-year yield at 2.5 per cent, for example -- would commit the Fed to buying an unlimited amount of Treasury securities if the public wanted to sell them at that price. At the moment, the Fed can choose to buy more or less than $600 billion, but with a long-term rate target it might lose control of the size of its balance sheet. ... Dispatch continues below ... ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php Some members of the rate-setting open market committee noted this option "could be an effective way to reduce longer-term interest rates." But members "also noted potentially large risks, including the risk the Fed might find itself buying undesirably large amounts of the relevant security." At the meeting, the Fed's open market committee also discussed whether chairman Ben Bernanke should start to hold regular press briefings to improve its communications with the public and whether to adopt a numerical inflation objective or a target path for the price level. The Fed has kept the video conference a secret for the past month. It means that the FOMC had already discussed many of the important issues about QE2 before the November meeting at which it was launched. The minutes said "most" members had agreed with the decision to launch QE2 but differed on the risks to the economy and the likely costs and benefits of buying more long-term securities. "Most" members judged it would ease financial conditions and that would spur economic growth, but "some" thought that it would have "only a limited effect on the pace of the recovery." FOMC members slashed their growth and inflation forecasts for the next few years and sharply increased their expectations of unemployment. In a crucial argument supporting the case for QE2, most of the FOMC forecast that core inflation in 2013 will be between 1.1 and 2 per cent. That justifies action because he Fed's objective is "about 2 per cent or a bit below." The committee also expects to miss its other goal on jobs with unemployment forecast to be between 7.7 and 8.2 per cent at the end of 2012 -- up from a June forecast of 7.1 to 7.5 per cent -- and 6.9 to 7.4 per cent at the end of 2013. A few committee members also increased their estimate of the number of people who will remain out of work once the economy has fully recovered. The "central tendency" estimate -- which excludes the three highest and three lowest forecasts by individual FOMC members -- rose from between 5 and 5.3 per cent to between 5 and 6 per cent. Most FOMC members now expect growth of between 3 and 3.6 per cent in 2011 compared with the 3.5 to 4.2 per cent that they forecast in June, but they remain optimistic that growth will accelerate to about 4 per cent in 2012. The Fed staff also revised up their growth forecasts because of the anticipated effects of quantitative easing. The minutes also say that the Fed has launched a review of its communication guidelines "with the aim of ensuring that the public is well informed about monetary policy issues while preserving the necessary confidentiality of policy discussions until their scheduled release." 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 Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf
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| Bruno del Ama: Smart Money Flocking to Uranium Posted: 23 Nov 2010 04:35 PM PST Source: Brian Sylvester of The Energy Report 11/23/2010 Gold has dominated a lot of headlines lately, so when Bruno del Ama of Global X Funds launched an exchange traded fund (ETF) focusing on the precious metal and another on uranium, he was confident about which one would set off at a sprint. Yet surprisingly, sales of the Global X Uranium ETF have reached $65 million since its launch on Nov. 4, making it one of the most successful ETFs this year. In this exclusive interview with The Energy Report, Bruno discusses why the smart money is chasing uranium. The Energy Report: Bruno, you recently launched a number of ETFs focusing on gold, lithium and uranium. There are some others in the works, too. Do you view the ETF market as being underserved? Bruno del Ama: I think the ETF market is underserved in some ways and saturated in some other ways. It's an interesting dynamic. In certain areas of the market, there may be five, six or seven ETFs that are very similar, tra...
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| We're Long Gold… AND the Dollar Posted: 23 Nov 2010 04:33 PM PST By Dr. Steve Sjuggerud Tuesday, November 23, 2010 In the latest issue of True Wealth, one of my recommendations was to BUY the U.S. dollar. The dollar now is a simple story. It's cheap, hated, and we have the start of an uptrend… It's what we look for in True Wealth, so we're buying. But paid-up subscriber Jeff called me out on it. In an e-mail, he said… Steve… Isn't it highly likely that if the dollar rises and the euro declines, that silver and gold will decline? Great question, Jeff! I've probably had more subscribers cancel over this idea (buying gold AND buying the dollar) than anything else in the history of True Wealth. Why? They call me crazy… They say, "You can't bet on a rise in both gold AND the dollar. When one goes up, the other goes down." That's right… in theory. But occasionally, theory and practice differ. We've successfully capitalized on this numerous times in True Wealth… The last two times were: 1) In 2005 (starting in the December 2004 issue)...
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| Gold, Juniors, Gas: Technical Thumbs Up! Posted: 23 Nov 2010 04:28 PM PST Stewart Thomson email: [EMAIL="stewart@gracelandupdates.com"]stewart@gracelandupdates.com[/EMAIL] email: [EMAIL="stewart@gracelandjuniors.com"]stewart@gracelandjuniors.com[/EMAIL] Nov 23, 2010[FONT=Verdana] 1. A substantial debate is emerging around the Gold $1315-1424 zone. Is Sir Gold overbought and due for a big fall? Or do you ride your holdings above 1424 on a new leg higher! 2. I guess if you used the marked to model numbers of the OTC derivatives (OTCDs) for your calculations, you could, maybe, make an argument that gold is overdone. 3. On the other hand, if you audited the Fed, marked the derivatives to market, and brought back the founding fathers to mark the current "we're here to help" congressional model penguins to a market pricing of…"into the clink you go for treason", maybe the "chart" says Sir Gold is actually… drastically undervalued. 4. The value of gold is in the range of $50,000 to $100,000 per ounce, if the OTCDs are marke...
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| BIS gold records may facilitate double counting, study concludes Posted: 23 Nov 2010 04:11 PM PST 12:10a ET Wednesday, November 24, 2010 Dear Friend of GATA and Gold (and Silver): The gold records and accounting procedures of the Bank for International Settlements, the central bank of the central banks, are ambiguous and confusing and seem to facilitate the double counting of central bank gold amid gold shortages, GATA researcher Robert Lambourne concludes in a study presented to the Gold Symposium in Sydney, Australia, on November 9. Lambourne's study has been posted at GATA's Internet site here: http://www.gata.org/files/Lambourne-BISGold-11-09-2010.doc CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf 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:http://www.gata.org/node/16 ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan powerplants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php
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| Keiser Report on Silver Revolt: ‘Crash JP Morgan' Goes Viral! Posted: 23 Nov 2010 04:00 PM PST
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| Grandich on gold top callers, Turk on Europe's dropping shoes Posted: 23 Nov 2010 02:16 PM PST 10:07p ET Tuesday, November 23, 2010 Dear Friend of GATA and Gold (and Silver): Market analyst Peter Grandich's commentary tonight covers the stock market, the dollar, and gold and remarks in wonder about the bleating of the analysts who have been calling a top in gold for the last $1,000 of its move up: http://www.grandich.com/2010/11/update-830pm-est-2/ Meanwhile over at King World News, GoldMoney's James Turk remarks that the European Central Bank's bailout of Ireland will not be the last shoe to drop and that each bailout will increase the attractiveness of gold and silver as safe havens. You can find excerpts from Turk's interview at the King World News Internet site here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/23_J... Or try this abbreivated link: CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php 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 Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf
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| Grandich on gold top callers, Turk on Europe's dropping shoes Posted: 23 Nov 2010 02:16 PM PST 10:07p ET Tuesday, November 23, 2010 Dear Friend of GATA and Gold (and Silver): Market analyst Peter Grandich's commentary tonight covers the stock market, the dollar, and gold and remarks in wonder about the bleating of the analysts who have been calling a top in gold for the last $1,000 of its move up: http://www.grandich.com/2010/11/update-830pm-est-2/ Meanwhile over at King World News, GoldMoney's James Turk remarks that the European Central Bank's bailout of Ireland will not be the last shoe to drop and that each bailout will increase the attractiveness of gold and silver as safe havens. You can find excerpts from Turk's interview at the King World News Internet site here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/23_J... Or try this abbreivated link: CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php 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 Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf
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| Candy, Gold forecast, stock update, Max Keiser (lots of candy) Posted: 23 Nov 2010 02:00 PM PST MaxKeiser.com does not endorse the stock opinions of this guy. We don't recommend any stocks at all. Normally I wouldn't link to a vid that is mostly about stocks, but this guy had me at, 'I'm eating bottle caps.'
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| Economics Professor Ignores Fiat Money Failures Posted: 23 Nov 2010 01:44 PM PST Unfortunately, it is not only Robert Zoellick of the World Bank that has notoriously turned against a gold standard, but The DailyBell writes about similar sentiments from Nouriel Roubini, university professor, in their article ... Read More...
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| [Audio] Chris Interviews Ted Butler: The End of Silver Price Manipulation Posted: 23 Nov 2010 01:38 PM PST 2010 has been an exceptional year for silver. The price has increased over 50% to-date, and the CFTC (the US commodity regulatory body) issued a statement last month admitting that the market price of silver may have been (and still may be) fraudulently manipulated. An investigation is underway.
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| Posted: 23 Nov 2010 01:22 PM PST Investors continue to buy even the smallest of dips in the price of silver as bankrupt and starving North Korea lobs dozens of shells into prosperous, thriving South Korea. South Korea answered, but so far hasn't escalated the conflict enough to push North Korea's mentally challenged leader to do something even more idiotic. ...
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| Peter DeGraaf: Many silver options better than SLV Posted: 23 Nov 2010 01:04 PM PST 9p ET Tuesday, November 23, 2010 Dear Friend of GATA and Gold (and Silver): In his latest commentary, market analyst Peter Degraaf notes suspicions about J.P. Morgan Chase's custodianship of the metal purportedly held by the silver exchange-traded fund SLV and finds that many other equally accessible silver-related investments offer better returns. Degraaf's commentary is headlined "Should You Buy SLV, the Silver ETF?" and you can find it at GoldSeek's companion site, SilverSeek, here: http://news.silverseek.com/SilverSeek/1290535304.php CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf 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:http://www.gata.org/node/16 ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan powerplants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php
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| Posted: 23 Nov 2010 01:01 PM PST Gold price relativity For contemporary market analysis, history begins in the year 1971 when the dollar was detached from gold and the era of free floating gold and exchange rates began. First, we had a gold bull market which began in 1971 and lasted until roughly the 1982/85 time period. Then we had a stock bull market that began in between 1982/85 and topped in roughly 2000. The current bull market in gold began in 2000 and, if it were to follow form, could be expected to top sometime around 2015-2017. There is a lesson to be learned from the history of the stock market for contemporary gold investors – particularly those reluctant to purchase gold at the current prices because it seems "too high." Those holding back may be guilty of short-term thinking. Let me tell you why. Most analysts say the stock bull market began somewhere between the years 1982 and 1985. The Dow Jones Industrial average was trading in the 800 range in 1982. In January, 2000, it peaked during intraday trading at 11,750. Many analysts see the 2000 top as the end of the bull market (See more on this below). Over the period of the bull market, the DJIA rose nearly 15 times over the 18 year period. If you were to apply the same arithmetic progression to gold from the inception of its bull market in late 2001 (when it traded at roughly $270), a top comparable to the Dow's would put its price in the neighborhood of $4050. ($270 x 15 = $4050.00) When viewed from this perspective, gold at $750 looks very reasonably priced. Some things to consider: 1. Given the perspective of 100 years from now, analysts might very well find currency inflation the common source for the rise in both the Dow and gold. If currency inflation could take the Dow from 800 to 11,750, why couldn't it take gold from $270 to $4050? 2. Markets tend to move in strong, primary trends of 15 years or more. The current stock market rally, from this perspective, looks more like a short-term bear market reversal, outside the primary trend, than it does a new uptrend. Gold, on the other hand, looks to be less than mid-way in its primary 15-18 year uptrend. Needless to say, there appears to be plenty of time remaining in the bull market to incubate some unexpected results including price levels most would consider a reach at this juncture. 3. Bull market thinking is different than bear market thinking. In keeping with our comparison to the stock market, buying gold today would equate to buying stocks with the Dow at roughly 2200. Once you realize that gold is rising for good reasons that aren't likely to disappear anytime soon, the nominal price becomes a secondary issue. The primary issue is and has been the debasement of the currency and its effects on the financial and monetary systems. For the ordinary investor/saver, the real question is how are you going to go about insuring your wealth against currency debasement. 4. As pointed out in "Disturbing Trends 2007 – The Dollar Under Siege," when gold recently achieved the $650 milestone and the Dow 13,400, both had risen about 1800% since the dollar went off gold in 1971. What this tells us is that both may be influenced by the same prime mover (monetary inflation) though they take turns in the batters' box. Gold does well when the dollar is under siege and the real rate of return goes negative. Stocks and bonds do well when the real rate of return goes positive. Now gold is in the batters' box and could remain there for as much as another decade. 5. The stock market is just one example that makes the point about inflation-driven markets statistically. The same point can be made, for example, by charting the price of gold in marks during the Weimar hyperinflation. When it started, gold sold for roughly 87 marks per ounce. By its end gold sold for roughly 63,000,000,000,000 marks per ounce – give or take a few billion. So, as you can see, the price of gold in nominal terms is strictly a matter of relativity. Similar analysis can be applied to any number of currency crises. Wikipedia lists over 30 such events running from the most recent in Zimbabwe to the most interesting on the island of Yap.** History's lesson is that there is no predictable top to the price of gold during a fiat money binge or crisis. Theoretically, the top extends to infinity, or as long as the inflation lasts, or until the arrival of the inevitable bust. Even then, gold will serve more than adequately for the more cautious savers among us. ** Monetarily speaking, everything progressed smoothly on the island of Yap where large stones weighing hundreds of pounds were transported around to serve as money. That is until something unforeseen happened to the value of the money. For centuries, the stones served in exchange because there wasn't much of this type of rock on Yap itself. The depreciation of the stone money began when an enterprising Western businessman realized he could produce stone money cheaply and in copious quantities on a neighboring island and transport it to Yap, where it could be used to procure goods in demand elsewhere. In other words, this oceanic cousin of John Law printed Yap stone money to buy his wares at what might be called a "favorable" discount. By this process, the yap stone money was debased until it became worthless. Little did the citizens of Yap know that they were deprived of their wealth, and their money destroyed, by the process of monetary inflation. *** Michael J. Kosares is the founder and president of USAGOLD-Centennial Precious Metals and the author of "The ABCs of Gold Investing – How to Protect and Build Your Wealth with Gold"
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| Gold, Silver, Crash JP Morgan Buy Silver, MrsSilverQueen admin / guest speaker Posted: 23 Nov 2010 01:00 PM PST
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| Posted: 23 Nov 2010 12:05 PM PST
A summary of the day's key events in equities, vol, FX, rates, commodities, credit, insider trading, corruption, monetary manipulation, racketeering, prostitution, and a forecast of tomorrow's market travesty.
From GS and ZH (not, per se, in collaboration)
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| The Gold Price Cleared the $1,365 Barrier, Next Stop $1,424 Posted: 23 Nov 2010 11:48 AM PST Gold Price Close Today : 1377.60 Change : 19.80 or 1.5% Silver Price Close Today : 27.461 Change : - cents or 0.0% Gold Silver Ratio Today : 50.17 Change : 0.721 or 1.5% Silver Gold Ratio Today : 0.01993 Change : -0.000291 or -1.4% Platinum Price Close Today : 1652.90 Change : -8.10 or -0.5% Palladium Price Close Today : 684.95 Change : -8.05 or -1.2% S&P 500 : 1,180.73 Change : -17.11 or -1.4% Dow In GOLD$ : $165.61 Change : $ (4.56) or -2.7% Dow in GOLD oz : 8.011 Change : -0.221 or -2.7% Dow in SILVER oz : 401.89 Change : -5.18 or -1.3% Dow Industrial : 11,036.37 Change : -142.21 or -1.3% US Dollar Index : 79.63 Change : 0.945 or 1.2% My daughter Liberty rolled into the office today and asked with disbelief, "What's this? The GOLD PRICE up and the SILVER PRICE down? What's that supposed to be?" Once upon a time (but no more) analysts and gurus used to make much of gold's "flight to safety" function: anytime war or unrest political or economic threatened, the fearful would flee to gold. They don't talk so much about it now, but surely that happens, or if it doesn't happen, traders make it happen because they take up positions to exploit it. Thus today the excitement in Korea -- not to mention questions about missiles fired off the coast of California and a US and a Canadian fighter jet being shot down over Alaska -- sent more folks into gold, running up the price by $19.80 to a Comex close at $1,377.60. Whether that was already brewing in the market or caused by cannon fire, mattereth not since gold cleared the $1,365 barrier and moved one giant step closer to $1,385 resistance and a clear lane to the last intraday high at $1,424. Day by day it requireth more and more wit to imagine new reasons why the GOLD PRICE will not keep on rising. I, for one, have stepped out of it steamrolling path and bought all my boat could carry. Today would have been a splendid chance to buy silver as well. The SILVER PRICE appears to have completed its latest correction and to be readying itself to climb again. Today it crashed from 2770c at 4:00 a.m. EST to 2704c before New York every opened, about 7:30. Well, that was the last of that. Silver cut loose like your hubcap flying off at a steep curve on the highway, flying, leaping, and jumping clean back to 2770c. Whoa! Change of mind, and by 11:15 it had sunk back to 2715c. Not satisfied with those tergiversations. silver reversed again and shot once more to 2770, yea, 2775c, the relaxed the rest of the day between 2740c and 2750c. After all that sound and fury, Sturm und Drang, silver finished the day unchanged at 2746.1c. If I were one of those folks who has never heard about the Primary Trend and investing with it, this single day in silver would have shot my nerves for a couple of weeks. But I DO know about the Primary Trend, and I don't give much of a hoot about one day's trading. About the only worry I have left comes from staring at the silver and gold charts and wondering whether that A-B-C correction really finished at $1,330 or not. When gold clears $1,386 that worry will wither, and when gold o'ertops $1,424.40 it vanishes clean away. Today's events in the currency markets raise the question, "Which came first, the chicken or the egg?" As I said lately, we talk about events "causing" this or that move in markets, but did that really cause it? Or was it merely a catalyst or coincident event in a market break that was already brewing? Case in point, today's dollar index. It rose a colossal 94.5 basis points, 1.22%, to 79.627. What caused that meaty gain? The shell-lobbing in Korea, or was it already there in the market, ready to break forth? The US DOLLAR INDEX blew clean thru the last 4/10 of the 78s and the first 6/10s of the 79s. In a single bound it o'erleapt 78.60 resistance and the last intraday high at 79.46. All because the North and South Koreans mutual admiration broke out today in artillery fire? Well, certainly that sent some folks running into dollars -- and into gold, too, as we'll see below. But was it the cause? Beats me, I'm just a natural born durned fool. Bolstering somebody's theory, the euro looked earthward today, gapping down and speeding like a falling dart towards it 200 DMA at 1.3154. It's trading 1.3380 right now, down 2c or 1.45%. Looks like it ain't gonna stop at its 50 DMA (137.17). Wait! What's that? Yep, the Euro's 20 DMA is turning down and about to cross under its 50 DMA, not the crossover of champions. Long and the short of this disquisition is, dollar's going higher. Allow me to shove stocks aside before we entertain more alluring topics. My summary of this market is, "I wouldn't own stocks with your money." Downtrend has been firmly established, with this recent half-hearted rally beaten back at the Dow's 20 DMA (11,209). Today the Dow closed at 11,036.37, down 142.21 -- yes, another weighty drop -- plumb on its 50 DMA (11,032.13). Yet there remaineth -- I must always remind myself with stocks lest my arrogance and distaste get the best of me -- that stocks turn slowly, so might yet show off with one last lunge for the top (11,450), like a cabaret singer long past her prime embarrassing herself with too much powder, off-target lipstick, and a cracking voice. Just go silent into that good night, and leave bad enough alone. S&P500 looketh neither better nor different. Closed today at 1,180.73, down 17.11 and resting on its 50 DMA (1173.30). O, mercy, mercy, how many tears, how many heartbreaks, how many broken dreams and portfolios lay yet ahead in the stock market? Lots, Bubba, lots. Dow in Gold Dollars today closed at G$165.61 (8.011 oz) at the very bottom of support. Dow in silver ounces is a mere 10 oz. above its lows. Breaks here will look like Niagara Falls. LOOK AT THIS: On this day in 1954 [sic] the Dow Jones Industrial Average finally surpassed it pre-1929-crash high when it closed at 382.74, twenty-five long years after Black Tuesday. My, think on it. Twenty-five years is a right long spell to hold on to stocks waiting for 'em to "come back." That, friends, is the footprint of a primary trend. Let's see, 2007 + 25 is . . . . On this day in 1765 the people of Frederick County, Maryland refused to pay England's Stamp Tax. Hip, hip, HOOO-ray! Right here is where I am so utterly bumfuzzled by folks today. They even let government agents perform lewd maneuvers on their own and their wive's private persons, rather than say, "NO!" Is everybody so cowed and timid that they won't even stand up for what even a fool can see is right and wrong? My wife and I have stopped flying on airplanes. They can keep their rotten planes and fly 'em empty, because I know good and well that the first time one of those Hessians male or female puts his hands on my wife, old, feeble, and soft as I look, they're going to have to kill me, or I'm going to hit 'em in the head with a lead pipe, if I have to tear out the handrail. Have Americans completely forgotten the power of saying "NO"? Mercy, you don't even have to fight 'em, you can just refuse to co-operate. No way 15,000, or even 15,000,000 government agents can force 285,000,000 Americans to do what they don't want to do -- unless those 285 million go along willingly. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2010, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't. 
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| Gold Dominates the Headlines But the Smart Money is Flocking to Uranium Posted: 23 Nov 2010 11:21 AM PST Gold has dominated a lot of headlines lately, so when Bruno del Ama of Global X Funds launched an exchange traded fund (ETF) focusing on the precious metal and another on uranium, he was confident about which one would set off at a sprint. Yet surprisingly, sales of the Global X Uranium ETF have reached $65 million since its launch on Nov. 4, making it one of the most successful ETFs this year. In this exclusive interview with The Energy Report, Bruno discusses why the smart money is chasing uranium.
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| Posted: 23 Nov 2010 11:00 AM PST View the original post at jsmineset.com... November 23, 2010 02:04 PM Thought For The Evening Gold continues to act out of sync with its normal motivators. Reports indicate that South Korea shot first. International tensions have not had a major impact on gold in the past year, yet gold held the majority of its upside today. This is the third trading day that gold has managed the shake off normal market detractions. I find that interesting. Thought For The Morning Merkle of Germany has been quiet on this Irish bailout until today. That seemed strange. Today she is jumping up and down again. That was good for a few hundred point on the downside of the euro. Could this be a currency war and covering by the usual suspects? Jim Sinclair’s Commentary The ability of banks to determine the value of an item without any reference to what that item could be sold for is simply wrong. Fight Over Fair Value in Global Finance Making Volcker Rue FASB Diss...
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| Posted: 23 Nov 2010 11:00 AM PST View the original post at jsmineset.com... November 23, 2010 09:15 AM What’s Behind The Gold and Silver ETFs? CIGA Eric ETF products hold nine years of global, not US as suggested below, mine supply. How much 1285.08 tonnes current holdings represent physical gold? The legal wording of the GLD prospectus should present signficant clues for investors. There are no assurances that the gold bar exist until added to the account of HSBC custodian or subcustodians. Then the prospectus clearly states that if the subcustodian(s) do not have the gold, Trustee cannot be assured that they will be able to recover any damages from them. Under the Allocated Bullion Account Agreement, except for an obligation on the part of the Custodian to use commercially reasonable efforts to obtain delivery of the Trust's gold bars from any subcustodians appointed by the Custodian, the Custodian is not liable for the acts or omissions of its subcustodians unless the selection of such subcustodia...
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| Posted: 23 Nov 2010 10:51 AM PST The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! November 23, 2010 02:41 PM after hearing the gold price today despite options expiration and surge in U.S. Dollar (and he remains crazy despite someone trying to show him Tokyo Rose’s latest nitwit comments). [url]http://www.grandich.com/[/url] grandich.com...
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| Gold Stocks in a Failing Fiat Currency - November 23, 2010 Posted: 23 Nov 2010 10:51 AM PST Gold Stocks in a Failing Fiat Currency - Casey's Daily Dispatch [LIST] [*]Sign Up Now! [*]| [*]RSS Feed [*]| [*]Print this [*]| [*]Visit the Archives [*]| [*]Email to a Friend [*]| [*]Back to All Publications [/LIST] November 23, 2010 | [url]www.CaseyResearch.com[/url] Dear Reader, With the Thanksgiving holiday beginning to settle over America like a warm blanket on a cold day, these daily musings will be a bit briefer than usual today and tomorrow - and completely AWOL on Thursday and Friday as your Casey Research team gathers around turkey with sharp knives and a clear intent to leave no ...
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| Posted: 23 Nov 2010 10:49 AM PST Surely not! Buying Gold AND buying the US Dollar...?! In THE LATEST ISSUE of True Wealth, one of my recommendations was to BUY the US Dollar, writes Dr. Steve Sjuggerud in his Daily Wealth email. The Dollar now is a simple story. It's cheap, hated, and we have the start of an uptrend... It's what we look for in True Wealth, so we're buying. But paid-up subscriber Jeff called me out on it. In an e-mail, he said: "Isn't it highly likely that if the Dollar rises and the Euro declines, that silver and gold will decline?"Great question, Jeff! I've probably had more subscribers cancel over this idea (Buying Gold AND buying the Dollar) than anything else in the history of True Wealth. Why? They call me crazy. They say, "You can't bet on a rise in both gold AND the Dollar. When one goes up, the other goes down." That's right...in theory. But occasionally, theory and practice differ. We've successfully capitalized on this numerous times in True Wealth. The last two times were:
It looks like it's happening again. Just yesterday, the Dollar was up (the Euro was down) and gold was...up! Readers tell me it can't happen. But it does. And we've made money on it. We're going to again. As I said, the dollar is cheap, hated, and now in an uptrend. My friend Jason Goepfert does a fantastic job of tracking investor sentiment at www.SentimenTrader.com. His charts clearly shows investors are bearish on the dollar... the most bearish they've been this year.  You can also see the Dollar has started an uptrend, from 76 to 79 on the trade-weighted foreign currency index. Will it hold? I don't know. But this chart shows the Dollar is hated, and it shows the start of an uptrend. What about cheap? From firsthand experience last week, I know the Dollar is cheap. Last week, I was in Europe. The Dollar was so cheap, it was near worthless. Here are some actual prices we paid: $90 for pizza and Cokes for four at a small-town pizzeria...$20 for a cheeseburger at a diner...$6 for a soda. (I loved the trip...but I was glad to get back home!) The Dollar rose in 2005...and so did Gold Prices, The Dollar rose in the first half of 2010...and so did gold. So can both gold and the dollar rise in the first half of 2011? Yes. Want to get physical? Buy Gold live online at BullionVault today...
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| Posted: 23 Nov 2010 10:47 AM PST Buy Gold RFN urges the Mogambo with characteristic FMP... IT WAS with regret that I read on Reuters that "World Bank President Robert Zoellick said on Wednesday he was not advocating a return to a gold standard for exchange rates, but described the metal as 'the elephant in the room' that policymakers needed to acknowledge," writes the Mogambo Guru at The Daily Reckoning. What a wimpy attitude! Now I can go back to regarding Mr. Zoellick as just another neo-Keynesian pencil-necked geek moron with a dorky haircut and an ill-fitting suit who thinks he understands equations but knows little about economics. I, on the other hand, say that any economist who knows what he is talking about would LOVE to see a return to a Gold Standard, and thus take control of the money supply out of the hands of evil men, each with their nasty secret agendas, conspiracies and cabals forming and dissolving in a swirling cauldron of corruption, and thus return the country to a blissful "golden age" where prices stayed the same, or gently fell, while quality and quantity improved, handing the whole cornucopia of blessings and benefits of free enterprise in a capitalist system to the economy and to the grateful, prosperous, happy people. This is where I write in my notes "Wait for the thunderous applause from the crowd, giddy with excitement at your Fabulous Mogambo Profundity (FMP)." But I don't have to wait long, as there is no applause. No bouquet of roses. No placing of a tiara upon my head. No nothing. Instead, I got Mr. Zoellick saying to the Foreign Correspondents Association; "I don't believe you can return to a fixed exchange rate system and that is the gold standard," and later saying, "I'm not advocating a return to the 19th century when money supply was linked to gold."Naturally, I consider this to be so idiotically wrong that I advocate that we, meaning you, go en masse to the World Bank, arrest everybody, tear the building to the ground, burn the rubble and scatter the ashes, which shows you how dreadfully wrong he is, and makes you wonder why ("Hmmm! I wonder why!") anyone would pay attention to this idiot who advocates for an expanding fiat currency which will increase the suffering of the poor and indigent by deliberately causing high inflation in prices, which is not to mention the impoverishment of everybody and every asset as a result of the dollar being devalued! Feeling a particular ugliness come over me, I leap to my feet and shout: "What an inhuman bastard! And just like all the rest of his banker trash ilk, not to sugar-coat it any more than necessary to keep my head from exploding in a fit of Wild Mogambo Outrage (WMO)!"Well, my head did not explode, even though the inflation in prices that comes from such irresponsible expansions of the money supply, that jerks like Robert Zoellick and Ben Bernanke embarrass themselves over, must already be showing up to the extent that even idiot bond buyers (as idiots are the only ones buying bonds at such high prices that they yield almost nothing) are selling bonds, and suddenly the US Treasury yield curve got seriously-unbent recently, as the price of the 5-year note went down enough to bring up the middle of the yield curve by an entire percent! One percent increase in yield in one week! And even the 30-year bond went up in yield as their prices fell. This means that the decline in the prices of 5-year and 1-year debt handed huge unrealized losses to an entire world full of idiots stupid enough to own massive amounts of US government debt paying historically-low, abnormally low, insanely-low yields, all thanks to the foul Federal Reserve insanely creating the money to buy them, flooding the system with money, making your greedy "dark side" scream out: "Short bonds, you moron! It's one of those 'once-in-a-lifetime' can't-miss, sure-fire deals, especially since bonds are already so overpriced that they are yielding less than half the rate of inflation Right Freaking Now (RFN)!"You try to ignore that inner voice because you are too chicken for that kind of gamble since you've seen the foul, corrupt Federal Reserve simply create the money to buy bonds to make their prices stay up, and even go up, handing lots of losses to the shorts. So you stick conservatively with Buying Gold, silver and oil when the desperate and clueless Federal Reserve is creating So, So Much, Much Money (SSMMM), a move that is so obvious and so simple that even complete morons like me can do it, and shout, "Whee! This investing stuff is easy!" when we do it! Buy Gold at the lowest prices, sell it instantly – at live "spot" market prices – with no risk of counterparty default – using world No.1 online, BullionVault...
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| Posted: 23 Nov 2010 10:45 AM PST But it might just create a chance to Buy Gold and other hard assets on the cheap... WELL THIS should be interesting, writes Dan Denning in his Daily Reckoning Australia. The EU/IMF bailout of Ireland is not going off without a hitch. The UK's Telegraph reports that the Green party, which currently forms the junior half of Ireland's coalition, might withdraw that support and call for new elections in January. This would call into doubt the ability of the current government not only to execute a deal with the EU and the IMF but also to pursue its four-year austerity program. What a mess! We'll get to how Ireland and Australia are similar in a moment. But first, please recall the words of the great philosopher of the New York Yankees, Yogi Berra. He once said, "When you come to a fork in the road, take it." Today's fork in the financial road leads down two different paths. One path is continued US Dollar devaluation and a strategic migration to emerging market assets (under the assumption that the BRIICS nations will eventually have to allow for currency appreciation...or face rampant food and fuel inflation). This trade favors Buying Gold, commodities, and tangible assets in general. But remember what happened in 2008? The Global Financial Crisis actually led to a massive rally in the US Dollar. Emerging markets got hammered. The "risk" trades financed with cheap greenbacks were reversed and commodities took a shellacking as well. Could that happen again? The boys at Knight Research think it's going to happen again, but even bigger and badder this time around. In a recent research note, they wrote: "We believe the structural and cyclical terms of global trade have finally reached their tipping point. This will catalyse a wholesale change in sentiment and a historic repositioning of risk assets. The emerging market global growth story is over."This is the fork Murray has been preparing for in the Slipstream Trader for our subscribers It would mean falling indexes in Australia, which would of course mean falling components of those indexes. Knight Research elaborates on this fork: "The game is over. Presently, we believe that the broad-based resurgence of investor confidence in the emerging market and secular bull market in commodities will end badly; proving that the rally which commenced in Q2 2009, was in fact an 'echo bubble' facilitated by massive-and unsustainable-stimuli from the Chinese government.This is not a lukewarm prediction. It would quite obviously be mega bearish for the Aussie Dollar and for commodities. And thus far, there's not much evidence to support that giant reversal is afoot that is more bearish for emerging markets than it is for the US Dollar. It's a fork in the road, though. So we have to take it and see where it leads. There ARE a few factors supporting the "Game Over" theme. One is that Ireland's woes are not the last o the Eurozone's problems. There is Greece. There is Spain. And really, Ireland is not even done and dusted yet. To some extent, Euro weakness is dollar bullish and contributes to the "Game Over" theme. But the bigger factor is Chinese tightening, or just your basic traditional popping massive credit bubble. There are early signs of that. Last week China raised reserve requirements on banks again. And Citigroup agrees with our assessment that rising food prices in China could be bearish for metals. China's State Council is talking a big game on controlling inflation. Does it mean China is quickly shifting away from a bias toward export growth toward an inflation fighting bias? That's the big question. If it does mean that, you can expect lower commodity prices. For example, three-month copper on the London Metals Exchange fell overnight. The news preceding the drop was that refined copper imports to China fell by a third last month. Comex December copper traded lower too, near $3.75/lb. We're going to have Dr. Alex what he thinks about this. But we can guess. He probably loves it. He just got back from another site visit in Africa to a copper project. If you're a Diggers and Drillers reader don't worry. You've already read about this company. It's not a new recommendation. Alex has done his homework on the companies he's recommended. Weakness in the copper price invariably follows through to the shares. If you're a secular metals bull, you believe this lowers your average purchase price on the shares most likely to benefit from rising prices. If you're a bear on copper, well...you're a bear. Go dance. Alex, of course, has taken the other fork in the road. This fork is for those who've realized the end of the Dollar Standard in the global money system is likely to be bullish for real assets, despite your reflexive US Dollar rallies. Europe's chronic and structural problems add an element of Dollar support. But the long term story on this fork is to favor "real assets" over paper money. Which brings us back to Ireland and Australia. Irelands bank's went all in on the Irish property market. When the bubble burst, the banks were left holding the bag (a huge mortgage book). The bag was so heavy, in fact, it broke their back. So the government had to pick them up. And the bag was too big for the government to pick up too, especially given rising borrowing costs for countries at Europe's periphery. Could that ever happen in Australia? Could banks with massive over-exposure to domestic property be caught out by losses and unable to borrow from overseas except at much higher rates? And could the government be forced to step in and cover the bank at the cost of its own good credit? Buying Gold...? Make it simple, secure and cost-effective by using BullionVault...
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| James Turk - Gold Separating From the Dollar Posted: 23 Nov 2010 10:40 AM PST  With gold and silver consolidating recent gains, King World News interviewed James Turk out of London. When asked about the action in both gold and silver Turk stated, "I think the important point today is that gold has moved back above its short-term moving averages. This should bring a great deal more buying into the market. I was very impressed today that gold was strong in spite of the fact that the US dollar was up a full point. Jim Sinclair has been bringing up this point, and it looks like he nailed gold separating from the dollar in terms of the action."
This posting includes an audio/video/photo media file: Download Now | ||||
| Ron Paul: Korea Conflict May Be Orchestrated Crisis To Boost Dollar Posted: 23 Nov 2010 10:18 AM PST Congressman Ron Paul speculated on the Alex Jones Show today that the war footing between North and South Korea could be an orchestrated crisis to boost the dollar and reverse the US economy, paralleling the RAND Corporation's call two years ago for the United States to become embroiled in a major war as a means [...]
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| Posted: 23 Nov 2010 10:11 AM PST Korean clash helps spark flight to safety into gold The COMEX December gold futures contract closed up $19.80 Tuesday at $1377.60, trading between $1355.60 and $1382.90 November 23, p.m. excerpts: see full news, 24-hr newswire…
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| Mawson Resources Shares Enjoy 'Bonanza Grade' Gold Find Posted: 23 Nov 2010 09:45 AM PST Proactive Investor submits: Mawson Resources (MWSNF.PK) announced Monday the first channel sample results from the company's Rompas gold-uranium project in northern Finland, uncovering "bonanza grade" gold. Highlights from 39 surface channel samples include 0.3m at 1,866 g/t gold and 8.0% uranium, and 0.26m at 1,510 g/t gold and 3.95 % uranium. Complete Story »
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| Posted: 23 Nov 2010 09:34 AM PST Hey, check out goldsilver.com for gold and silver bullion!
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| Posted: 23 Nov 2010 09:24 AM PST
I have been warning of this potential in Spain for nearly two years (January of 2009, reference Reggie Middleton on the New Global Macro – the Forensic Analysis of a Spanish Bank after a trip to the Costa del Sol by way of M&cute;laga). I will spend the Thanksgiving holidays working on the Irish and Spanish haircut updates and fine tuning the contagion model for subscribers and I will attempt to publish the analysis in a very rich format (with dynamic models, graphics, video, etc. on BoomBustBlog, Barnes and Noble Nook/Kindle via ebook format, and through YouTube) On that note, Bloomberg reports: German Chancellor Angela Merkel said the prospect of serial European bailouts was “exceptionally serious,” sending the euro to a three-month low as officials estimated saving Ireland will cost 85 billion euros ($114 billion). Irish bonds dropped and the premium that investors demand to hold Spanish debt over German counterparts jumped to a euro- era record as the relief rallies triggered by Ireland’s Nov. 21 aid request evaporated. Traders are now betting the turmoil that started in Greece a year ago will spread to Portugal and Spain. “The markets currently have virtually zero confidence that the bailout in Ireland will solve the European crisis,” Charles Diebeland David Page, fixed-income strategists at Lloyds TSB Corporate Markets in London, said in a note today. “With markets effectively in a position to dictate policy, the risk is that the credibility crisis shifts to more sizeable European Union countries and thereby poses a greater risk to the system as a whole.” Contagion is spreading through the euro region as Ireland hammers out an aid package with the EU and the International Monetary Fund to save its banking system. The European Commission estimates Ireland may need 85 billion euros, according to two officials who were on a Nov. 21 conference call of finance ministers. Of the total, 35 billion euros would go to banks and 50 billion euros to help finance the government. The euro dropped 1.8 percent to $1.338 as of 4:55 p.m. in London. The yield on Ireland’s 10-year bond rose 35 basis points to 8.65 percent. The spread on Spanish 10-year bonds over bunds rose 28 basis points to 236 basis points. Merkel Risks Merkel today chose to highlight the risks facing the euro even as bailout talks destabilize Ireland’s government. Speaking in Berlin, she said while she didn’t want to “paint a dramatic picture,” it would have been hard a year ago to “imagine the debate” now taking place in Europe. The German leader is stressing the threat to the euro posed by indebted member countries and is pushing German plans to make investors help pay for any future crisis in the currency area. “I won’t let up on this because otherwise that primacy of politics over finance can’t be enforced,” Merkel said. “It remains our task to keep calling for tough measures and tough conditions, but also to express clear support for the euro.” Merkel’s stance has drawn opposition from European Central Bank President Jean-Claude Trichet and leaders in Spain and Greece, who say it risks derailing euro-area nations’ deficit- cutting efforts. In other words, Merkel is being too damn honest and forthright in her public pronouncements. So be it. This is an excerpt of what we used to prep and warn paying subscribers regarding Spain since the beginning of the year (excerpted from
In short, not only is Spain’s domino about to drop, but it will drop for practical fundamental reasons. Subscriber’s see:
The BoomBustBlog Sovereign Contagion ModelNearly every MSM analysts roundup attempts to speculate on who may be next in the contagion. We believe we can provide the road map, and to date we have been quite accurate. Most analysis looks at gross claims between countries, which of course can be very illuminating, but also tends to leave out many salient points and important risks/exposures.
In order to derive more meaningful conclusions about the risk emanating from the cross border exposures, it is essential to closely scrutinize the geographical break down of the total exposure as well as the level of risk surrounding each component. We have therefore developed a Sovereign Contagion model which aims to quantify the amount of risk weighted foreign claims and contingent exposure for major developed countries including major European countries, the US, Japan and Asia major. I. Summary of the methodology
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| Market Commentary From Monty Guild Posted: 23 Nov 2010 09:05 AM PST Dear CIGAs, Just a few points before this holiday week. QE in Europe— the European sovereign debt situation It is not surprising that Europe's short embrace of austerity has been unsuccessful. There is never a choice for austerity until all other alternatives have been exhausted. History is replete with examples. Why don't some of these stock market commentators read some global economic history? It is obvious now and has always been obvious that Europe will go for QE. It does not matter what they say about austerity. We have been advising investors to watch what they do. They are bailing out Ireland; Portugal is right behind and will be followed by Spain, Italy, and even France in the future. There is no solution that politicians will embrace other than QE [money printing] because a program of austerity means the end of their political careers. They will put their careers above the national interest. It is absurd to believe that the U.S. dollar will be a safe haven over the intermediate term An even more absurd belief is the one that puts U.S. dollar and U.S. debt as a safe haven. There is not any convincing economic evidence that the U.S. dollar is well managed, and there is no reason to believe that the dollar will rise in value. In fact, it is the U.S. governments' intention to devalue the dollar and to print money to avoid a deflation in the U.S. Why do some global commentators see the dollar as a safe haven? In our opinion, the only safe haven is precious metals, energy, food and other assets which will hedge against the inevitable inflation that the above policies create. We wish everyone an enjoyable holiday. Sincerely, Guild Investment Management
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| Irish PM is forced to agree to dissolve government Posted: 23 Nov 2010 09:03 AM PST First came the real-estate collapse, which caused the banks to tumble. That in turn led the economy to teeter and the national budget to plummet toward insolvency, requiring a huge foreign bailout on the weekend. So it is almost inevitable that, at the end of it all, the Irish government is about to fall.
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The two countries exchanged artillery fire Tuesday after the North shelled an island near their disputed sea border, killing at least two South Korean marines, setting dozens of buildings ablaze and sending civilians fleeing for shelter. The clash, which put South Korea's military on high alert, was one of the rivals' most dramatic confrontations since the Korean War ended. "Any time you have conflict and war, gold is always a safe haven play you can go to," noted Spencer Patton, founder and chief investment officer for Steel Vine Investments LLC. "On a day when it should be lower, it really was strongly higher, which is just a great sign for gold going forward."…
Spain public finances projections_033010
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