Gold World News Flash

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• The Gold price isn’t about Gold!
• Silver money for China
• International Forecaster November 2010 (#8) - Gold, Silver, Economy + More
• Jon Hykawy Sees Downstream Value in Rare Earths
• BaNZai7'S EuRo VaCaTioN
• Richard Russell - Stocks Repeating 1930, Gold Building Base
• Netflix: Will This Movie Ever End?
• Hedge funds “hedge” with gold (or What is George Soros up to in the gold market?)
• Jim?s Mailbox
• European Debt Crisis Cheat Sheet
• Jim's Mailbox
• Interview With David Morgan About The Silver Manipulation
• The Next Largest Nuclear Powers, China and Russia, Openly Challenge US Economic Supremacy
• Well many are doing this already and to greater ends than just preserving their wealth as can be seen in the Max Keiser ‘Crash JP Morgan, buy silver‘ campaign which is gaining momentum and could see this practice of automatic transfer becoming more t
• Ask not if buying Silver will Crash JP Morgan but what JP Morgan can do to stop you from buying Silver.
• JP Morgan responds to Max Keiser’s ‘Buy Silver’ campaign with ReWorked Ad
• Copper: the NEW ‘Poor Man’s Gold’
• GoldSeek Radio's Waltzek interviews Murphy, Austin Fitts, and Turk
• GoldSeek Radio's Waltzek interviews Murphy, Austin Fitts, and Turk
• Embry and McEwen interviews posted at King World News
• Gold Continues to Trace Out Possible Bearish Head and Shoulders Pattern
• Wall Street Journal congratulates World Gold Council on its gold ETF
• Weekly precious metals review at King World News
• Silver (and Gold) May Be Set-Up To Launch and the HUI To Do A Moonshot
• Hugo Salinas Price: Silver money for Mexico
• The Gold Price Isn't About Gold!
• Riots in Hungary, Argentina . . . Ireland, Greece, Iceland, UK, Spain . . . Is there a common theme here? Why not decapitalize the global financial terrorist syndicate BUY SILVER!
• KWN Weekly Metals Wrap – Euro Gold Nears Record
• In The News Today
• How the U.S. Government Guaranteed the Coming Global Food Crisis
• Bernanke Rolling the Dice: America's Financial Dilemma
• 11 Statistics Show Just How Far the Economy Has Deteriorated
• World At A Boil With War And Economic Crisis
• U.S. Reality Check: China, Russia Drop the Dollar

The Gold price isn’t about Gold! Posted: 28 Nov 2010 01:00 PM PST Since 2000, the gold price has risen from $300 to $1,400 an ounce. There are several more important reasons than its being 'just a commodity.' The strongest driving force behind gold's rise in the last four years has been investment demand. As a commodity, it doesn't tarnish, it's a great conductor, and makes good looking jewelry. But these reasons are not the reasons why people invest in gold.

Silver money for China Posted: 28 Nov 2010 03:05 AM PST We have been proposing the monetization of a silver coin in Mexico since 2001. According to our proposal a one-ounce coin of pure silver, with no engraved value, would be given a monetary value by the Mexican Central Bank. This coin would exist and circulate as money, in parallel with the paper money system of Mexico.

International Forecaster November 2010 (#8) - Gold, Silver, Economy + More Posted: 28 Nov 2010 03:00 AM PST There is no question that the world is at a boil. Germany is drawing anger; N. Korea has attacked S. Korea; flaying about the FED's Mr. Bernanke blames China for America's sad economic and financial dilemma; five suits, class action and RICO, have been filed against JPMorgan Chase and HSBC for having manipulated silver prices and class actions are rumored to be in process for naked shorting, which has been rampant in the market for years, a felony hedge fund investigation of insider trading, which the SEC has absolutely refused to pursue.

Jon Hykawy Sees Downstream Value in Rare Earths Posted: 28 Nov 2010 01:00 AM PST Byron Capital Markets Analyst Jon Hykawy sees the rare earth elements (REE) sector for what it is—something much different from mining copper or gold. He believes the keys to making money in rare earths involve metallurgy, deposit location, marketing and downstream integration. In this Gold Report exclusive, Jon makes his case for rare earth elements.

BaNZai7'S EuRo VaCaTioN Posted: 27 Nov 2010 06:39 PM PST WB7: Every January, the Global Ponzi Elite ascend to Davos Switzerland to congratulate themselves on the fine job they are doing of fleecing the rest of us. You will recall that the current Euro debacle started picking up steam precisely on the week of the the Davos meeting this past January. Here is my concurrent Blog post: WORLD ECONOMIC FORUM DAVOS SWITZERLAND FOR IMMEDIATE RELEASE: JANUARY 20, 2010 The 40th anniversary of the World Economic Forum Annual Boondoggle is a defining moment for world leaders as they meet under the theme “Doing Gods Work--Wall Street Crusade or Financial Jihad." During five days filled with hundreds of working sessions, over 2,500 leaders from more than 90 countries representing banks, investment banks, hedge funds, ponzi managers, big business, feckless regulators and other uncivil elements of uncivilized society will work together to design new and innovative ways to fleece the masses by creating economic bubbles and exploiting economic risks. “Global multistakeholder cooperation lies at the heart of the Forum’s mission to mine the economies of the world,” said Professor Klaus Snowjob, Founder and Executive Chairman of the World Economic Forum. Speaking at a press conference at the World Economic Forum’s headquarters in Geneva, Professor Snowjob said: “We have rethought our values – we are living together in a global society with many different opportunities to get rich quickly. We have to redesign our processes – how do we deal with the challenges of klepto capitalism on a global scale. And finally, we have to support our beloved financial institutions which are so necessary for us to carry out this divine mission."  “We have to look at the Meeting in the context of what’s happening in the world … and we see that, clearly, the present system of global ponzi finance is not offering sufficient returns to our members. So we want to look at all issues on the global agenda in a systemically risky, integrated and strategic way, and we want to address in particular the issue of financial jihad with FWMD. This is the reason why our Annual Meeting this year is tailored around the need to rethink and redesign out methods of doing Gods work and frankly will be just 2 big 2 fail.” Do you remember how all of the relevant suspects were insistent that none of what has already happened and what is currently happening in Europe could ever possibly happen? I sure do.  At every turn, the same suspects keep assuring us that none of this is possible... We shall see. Meanwhile, after studying all the charts that Tyler has been posting lately, I want to clarify one small item. Anyone who continues to claim that the global financial meltdown is an exclusive product of the good ol' US of A is 100%, a certifiable douche bag on steroids. WB7

Richard Russell - Stocks Repeating 1930, Gold Building Base Posted: 27 Nov 2010 05:48 PM PST With the stock market showing weakness and gold still consolidating gains, earlier in the week, the Godfather of newsletter writers Richard Russell stated, "Yesterday the Dow declined. If this market decline continues, it's going to catch a lot of bullish economists and bullish stock-holders shocked, and on the wrong side of the fence. From the Russell perspective, the stock market is duplicating where it was in April of 1930. The market is telling us that despite the rosy expectation, hard times lie ahead."

Netflix: Will This Movie Ever End? Posted: 27 Nov 2010 03:55 PM PST By Dian L. Chu, EconForecast After driving Blockbuster out of business and taking a good chunk of subscribers from cable TVs, Netflix (NFLX) is now setting sight on the streaming video business. On Monday Nov. 22, Netflix announced a new subscription service--$7.99 a month for unlimited downloads of movies and television shows, while raising prices (by one dollar) on its existing DVD-related service plans. This officially moves the DVD rental king onto the turf of heavy weights like Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN), who are all competitors in video-on-demand (VOD) service. Smooth Sailing So Far So far, it has been smooth sailing for the California-based company.  Netflix went public in 2002, and its mail DVD rental with no late fees model essentially sent Blockbuster packing into Chapter 11 (albeit a lot has to do with Blockbuster’s inability to adapt to new trend and technology.) In addition to the mail DVD rental business, Netflix also has morphed into a formidable internet content provider, setting itself apart of the competition by successfully rolling out a slick Internet video streaming service in 2008, directly to a subscriber’s TV set, bypassing the cable box. Netflix stock has really taken off since 2008 –up 800% in two years, as Netflix was probably one of the very few companies that were growing and profitable during the Great Recession.    Helped by the Great Recession To many newly unemployed, or making less income, or just trying to save more, it is an easy choice among cable, movie theaters and Netflix. With Netflix, you basically pay a flat monthly fee (for as low as around $9 a month) and can watch as many DVDs (as fast as you can return them) plus unlimited streaming. So, it is of no surprise that for the first time, cable TV subscriptions fell in the United States in the last two quarters, which many attributed to the rising of Netflix. Netflix now boasts a large customer base of 16 million customers. A recent study by Sandvine, an Internet traffic consultancy, shows that Netflix’s peak viewing period is the same as TV’s prime time--8 p.m. to 10 p.m.--and accounts for more than 20% of non-mobile North American Internet use. Growing Pains – Subs & Revenue However, just like any business, Netflix seems to be approaching the peak of its cycle. That is, it is becoming more difficult to grow subscribers as well as revenue, which is probably a big part of the reason it is going digital right now. Its average monthly revenue per user (ARPU)--$12.12 in the third quarter--has been declining due to the rapid growth of new subscribers at the lowest rate tier ($8.99/month). Now, with its new streaming service plan, the company expects more subscribers to increasingly shift to streaming digital content. On the other hand, if there is a significant number of new and converted digital subscribers as expected, the new streaming service price—$7.99/month--would mean further deterioration of revenue per subscriber, which is one of the major revenue and growth metrics. Growing Pains – Cost Control Furthermore, Netflix already disclosed that it had $1.2 billion in commitments to pay for streaming content in Q3, up from just $115 million at the end of last year. And since its streaming library is still quite limited without the depth of its DVD content, Netflix will need to increase its streaming selection. And inevitably, content will only get more and more expensive, which would suggest ever increasing fees putting margins under pressure. In its Q3 earnings call, management guided long term gross margin between 30% and 35%, and expected to control costs partly by reallocating postal cost to content cost with more streaming only customers. While this still remains to be seen, the more likely scenario is that DVD and streaming will coexist side by side so long as each has enough differentiation serving different target audience.  So, that would also suggest Netflix cost model could go up, e.g., on postage as well as on marketing.  Subs, Scale & Technology One strength of Netflix is its ability to leverage technology to rapidly scale its business with 58 highly automated distribution centers that can serve 97% of the subscriber base with one-day turnaround. As such, it is hard to imagine any new entrants would cough up a sizable investment just for a match-up. So, for now, Netflix’s large subscriber base, scale, distribution, content and technology lead may position the company as the first mover with a niche in the VOD sector. Not in Kansas Any More Nevertheless, streaming is not your brick & mortar video rental business. The sector is highly competitive with quite a few big players (with deep pocket) vying for a piece of the pie. With the tech sector today, it is just a matter of time before Apple, Microsoft, Google, or Amazon would come up with some kind of rivaling technology and deployment network.  Who Wins the Dog Fight? Meanwhile, cable companies, aka crucial-for-streaming broadband providers, and movie studios, aka content owners--with some turned streaming service providers--are also likely to pose either as threat and/or obstacle to Netflix. And frankly, it is hard to say Netflix would come out as the winner if it has to lock horns with any or all of the big players over the movie and TV streaming business. Valuation Assuming HBO 2.0   From a valuation standpoint, the stock has been on a huge tear with a current P/E of 72.86 (the average P/E of S&P 500 is around 22), and is clearly priced as the future "HBO 2.0". But from what we discussed here, Netflix ultimately could be heading towards low 30% gross margin area with around 10% net profit, which is a far cry from such a rich valuation. ??? ??? A Momentum Stock From a technical perspective (see technical chart), there are definitive indications that the stock is very overbought and prone to volatility, particularly around the earnings release time. Source: Stockcharts.com Current chart shows the next resistance level should be around $200, support at around $170, then $150 respectively, with major support at $120. If it breaks $120....look out below. For long investors already in position, $170 would be the level to cash in on some profits.  Last but not least, bear in mind that this is one of the few classic momentum stocks, i.e., when the the current uptrend breaks, it tends to fall hard and fast.  Dian L. Chu, Nov. 26, 2010

Hedge funds “hedge” with gold (or What is George Soros up to in the gold market?) Posted: 27 Nov 2010 01:19 PM PST ". . .a 24% increase in the value of gold didn't stop George Soros, John Paulson and Paul Touradji from buying it. According to the data provided by U.S. Securities and Exchange Commission (SEC), the biggest volumes of gold were bought by Soros Fund Management LLC, Paulson & Co. and Touradji Capital Management LP. The total volume of the precious metal owned by the 3 companies is 2088 tons, which is roughly equal to the volume produced by the USA in 10 years." Link USAGOLD Comment: 2088 tonnes is also just 20% short of the world's annual mine production. Three hedge funds! Just shows you how much paper money is rattling around out there against the available gold. We would guess that the top four hedge fund gold owners would probably equal the entirety of annual production. What gets lost in the analysis of these hedge fund holdings is that in each case the metal is not being purchased as a speculation but as a hedge in PHYSICAL form as bullion.

Jim?s Mailbox Posted: 27 Nov 2010 11:42 AM PST View the original post at jsmineset.com... November 27, 2010 03:56 PM Gold Is the World's Premier Currency, According To The Markets CIGA Eric There is so much happening now that any thought other than self protections is madness. The dollar is no safe haven. Gold will trade at and above $1650. Jim Russia now suggests that they could one day join the Euro. This commentary came only days after they had announced that they have quit the dollar. "Yes, there are problems", as the headline below suggests that the size of the rescue package could be increased to restore confidence in the Euro. Apparently, the fact that nearly all western nations are defaulting on their debt through currency devaluation still makes fiat (Euro) an attractive alternative. Headline: Putin: Russia will join the euro one day Speaking at a conference in Germany the Russian prime minister, who is in the country for talks with Chancellor Angela Merkel, said he was convinced the euro would stabilise and str...

European Debt Crisis Cheat Sheet Posted: 27 Nov 2010 11:28 AM PST Even as an ironic major snowstorm blankets most of Europe, the upcoming week will likely be one of the most heated in European history, as the untenable debtload of the periphery becomes increasingly irrelevant and more vigilantes start looking first on Belgium, then Italy, then all of the core (at which poin the EFSF will have run out), then finally America. Which is why to assist our readers with a one stop shop for all the relevant sovereign debt metrics out of Europe, we present the following exhaustive cheet sheat that covers all you need to know and then some on how the European collapse is likely to play out. And total debt associated cash flows per country. Via Nomura

Jim's Mailbox Posted: 27 Nov 2010 10:56 AM PST Gold Is the World's Premier Currency, According To The Markets CIGA Eric There is so much happening now that any thought other than self protections is madness. The dollar is no safe haven. Gold will trade at and above $1650. Jim Russia now suggests that they could one day join the Euro. This commentary came only days after they had announced that they have quit the dollar. "Yes, there are problems", as the headline below suggests that the size of the rescue package could be increased to restore confidence in the Euro. Apparently, the fact that nearly all western nations are defaulting on their debt through currency devaluation still makes fiat (Euro) an attractive alternative. Headline: Putin: Russia will join the euro one day Speaking at a conference in Germany the Russian prime minister, who is in the country for talks with Chancellor Angela Merkel, said he was convinced the euro would stabilise and strengthen despite the current sovereign debt crisis. He said: "Yes, there are problems. But the economic policy of the European Central Bank and of the governments of leading European economies … convinces me that the stability of the euro will be ensured." Headline: ECB's Weber Says Europe's Rescue Fund Could Be Increased If More Needed European Central Bank council member Axel Weber said governments can increase the size of the European Union-led bailout fund if necessary to restore confidence in the euro. "Seven hundred and fifty billion should be enough to assure the markets," Weber said at the German embassy in Paris late yesterday. "If not, it will have to be increased." In a worst-case scenario, the fund would need an additional 140 billion euros ($187 billion), an amount that would not jeopardize the survival of the euro, Weber said in Berlin today Headline: European Banks 'Nearly Bust' If Euro Collapses, Evolution Says The European banking system would be "nearly bust" if the euro were to be abandoned which means the 16-member currency "cannot and should not go," Evolution Securities Ltd. said. "If the euro is abandoned, and we go back to the peseta, lira, escudo, drachma etc., devaluations would follow immediately," said Arturo de Frias, head of bank research at Evolution in a note to investors today, adding the industry is a "great buying opportunity." Devaluations mean write-offs "of a size that would render the whole European banking system completely insolvent." The markets trends, rather than fancy rhetoric, clearly illustrate what Jim describes as a state of self preservation in the currency markets. Gold has once again stepped into the confidence vacuum as the world's premier currency. Key points of the following trends (1) The fiat price of gold is rising in all global currencies (2) The stronger fiat currencies are revealed by those yet to set new relative highs and lower angles of ascension. (3) Gold has been the world's premier currency since 2000-2001. This is a fact that won't be universally recognized until nearly the end of gold's price adjustment. US Dollar Gold: Yen Gold: Mexican Peso Gold Euro Gold: Canadian Dollar Gold: British Pound: Australian Dollar Gold: Swedish Krona Gold: Swiss Franc Gold: Rouble Gold: Real Gold: More…

Interview With David Morgan About The Silver Manipulation Posted: 27 Nov 2010 10:51 AM PST Interview With David Morgan About The Silver Manipulation Reading time: 2 – 4 minutes In this exclusive interview with David Morgan topics discussed include the silver manipulation, concentration of derivatives, differences between paper silver products and what thankfulness. A few of the articles referenced are high frequency fake trading, Reg Howe's discussion of gold derivatives contracting and concentrating, the GLD and SLV ETFs, Ted Butler and GATA. Please keep in mind that as the 200 day moving average shows on the price chart that silver is currently very expensive and it appears that silver and gold are consolidating for the next upleg in the new year. However, silver is the restless metal and about 90% of its price movement happens in 10% of the time. Consequently, it can make a particularly exciting speculation at the present moment. But keep in mind that you are playing against some of the largest money in the world who have, it appears, the regulators and court system on their payroll. The safest way to play is to buy silver and take physical possession. Then you can remain solvent longer than the market can remain irrational. If you apply leverage in any way then you can either be forced out of your position or the exchanges or regulators can simply change the rules without notice like they recently did with margin requirement increases or to the Hunt's. NEW BOOK FOR SALE For those who have not heard a new book went on sale last week called How To Vanish. This is co-authored by Trace Mayer and Bill Rounds. It is an extremely helpful tool for protecting your personal and financial privacy. You may want to check it out. Please stay safe during this holiday season and enjoy your family and friends! EXCLUSIVE INTERVIEW WITH DAVID MORGAN (14:46) As mentioned in the interview, the GVZ has declined precipitously in after hours trading on 26 November 2010 despite the massive volume of about $272M of gold for February 2011 delivery. Copyright © 2008. This article was published on http://www.RunToGold.com by David Morgan on November 27, 2010. This feed is for personal and non-commercial use only. Applicable legal information and disclosures are available. The use of this feed on other websites may breach copyright. If this content is not in your news reader then it may make the page you are viewing an infringement of the copyright. Please inform us at legal@runtogold.com so we can determine what action, if any, to take. If you are interested in how to buy gold or silver then you may consider GoldMoney.(Digital Fingerprint: 1122aabbLittleBrotherIsWatching3344ccdd) Copyright © 2010 RunToGold.com. This Feed is for personal non-commercial use only. If you are not reading this material in your news aggregator then the site you are looking at may be guilty of copyright infringement. Please contact legal@runtogold.com so we can take legal action immediately. Plugin by Taragana Interview With David Morgan About The Silver Manipulation RELATED POSTS: Silver Slips Out Of Backwardation Silver Trending Towards Backwardation Again Get The Skinny On Silver Investing Interview With Jim Willie Is Goldman Sachs Thinking Of Buying Silver

The Next Largest Nuclear Powers, China and Russia, Openly Challenge US Economic Supremacy Posted: 27 Nov 2010 08:42 AM PST Two very recent developments have transpired that I think warrant mention. I will be incorporating these developments in my Part III of my Fiat Evolution series. But as this blog has always emphasized: it is geopolitics that in the end, will determine the next monetary system. Will it be through geopolitical cooperation or conflict?  That's the question. We have all seen the many photo ops at the recent G20 Summits, the empty promises, the fake smiles, the multitude of pronouncements of "lofty goals" etc.. But now that the most recent G20 Summit is but a couple weeks behind us, China and Russia are openly challenging US Economic, and by association, US Military, might. Keep in mind that the US has the world's reserve currency. It prints money with a lot less inflationary impact that other countries would normally face. Why? Because the US Dollar by far, is the most used international currency in global trade. This actually REQUIRES that the US print excess money to keep the global economy growing. But it also creates the Triffin Dilemma: the US needs to also consistently run trade deficits in order to "export" its dollars. That is not a sustainable model, as trade deficits cannot mathematically run forever. But back to the open challenges to US Supremacy, first, from Bloomberg: PBOC Researcher Calls on U.S. to Sell Gold Reserves, People's Daily Says The U.S. should cut its government spending and sell some gold reserves to balance its budget and fund its recovery, the People's Daily overseas edition reported, citing Xia Bin, an adviser to the People's Bank of China. The U.S. has to resolve its "twin deficits" in the government budget and the current account, Xia was quoted as saying. Three ways that may help the U.S. achieve that target include reducing military expenses, selling part of its gold reserves and relaxing some export limits on technology, he said. "The U.S. has more than 8,000 tons of gold reserves; why can't it sell some of it since the country wants to raise funds for economic recovery but doesn't want to add more burden to the fiscal deficit," Xia told the newspaper. He didn't mention whether China would be willing to purchase any gold from the U.S. So let's translate this.  China is basically telling the US to 1) sell its gold reserves, 2) reduce its military, and 3) give China more access to its technologies.  Now I know that this comes from an advisor to the People's Bank of China, but to me, it is not some last minute random trial balloon.  This is real.  China is openly questioning the US's role in the world, and by association, questioning the US Dollar's role.  China is speaking to the US the way Germany lectured Greece earlier this year. This is cause for concern.  We are speaking about a rising power challenging the current (let's face it) Imperial Power.  Rome was just told to step down!  This amidst the recent North/South Korean confrontation, the yet to be fully explained "missile launch" off the coast of California, and the Russian/Chinese deal to omit the US Dollar from their trading. To me, these events are all tied together (with the possible exception of the recent "missile launch" that has yet to be officially explained).  There will be no global cooperation in a transition to a new monetary order.  Sarkozy will lead the G20 next year as France assumes the G20 presidency.  But it will be pointless, he is no de Gaulle, and the world is becoming increasingly fractured. And now, this from Russia: Putin: Russia Will Join the Euro One Day Vladimir Putin said it is "quite possible" that Russia will one day join the eurozone and create a currency that would eclipse the US dollar as the global reserve standard. Speaking at a conference in Germany the Russian prime minister, who is in the country for talks with Chancellor Angela Merkel, said he was convinced the euro would stabilise and strengthen despite the current sovereign debt crisis. He said: "Yes, there are problems. But the economic policy of the European Central Bank and of the governments of leading European economies ... convinces me that the stability of the euro will be ensured." He added: "We know there are problems in Portugal, Greece, Ireland and the euro is wobbling a bit. On the whole it is a solid, good currency and it should take its place, its role as a reserve currency." Speaking at the same event, Josef Ackermann, chief executive of Deutsche Bank, echoed Mr Putin and said he could imagine Russia joining a common European currency. Now this is a little more complicated.  What is the goal of this pronouncement?  Is Russia trying to jab at the US Dollar, and the US's role in having the world's reserve currency?  Is Russia giving an open vote of confidence to the flailing Euro because it has so much at stake in the Euro?  Does Russia want to someday merge economically with Germany - one is rich in natural resources, the other in manufacturing know-how?  I say it's all of the above. And so, we are facing a world that seems to me to be lacking order.  These are the times that history shows are watershed events.  There are only two outcomes here in classical geopolitical theory:  1) Either the existing  hegemon reasserts its power or 2) a new hegemon assumes leadership.  Neither scenarios occur peacefully.  I am not saying that a major war is at hand.  But I believe that we will be witnessing proxy wars in the near future.  Look to Iran, North Korea, and Venezuela.  They seem to be the next battle grounds. And what does this mean to the current monetary order?  As conflict escalates, and the US Dollar is used less in foreign trade or is continually openly challenged or avoided, the US will be faced with a decision: to deploy its guns or gold, or both.  Nations store gold and weapons for a reason.  Historically, the nation with the most guns and gold wins.  But Russia is the one that can tip the balance here, as it has increased its ties to both China and the EU.  In my view, a gold backed dollar is not out of the question.  The US is becoming increasingly alone, and its paper money is being questioned.  Once one country goes the way of gold, all else are forced to follow, as all fiat money immediately collapses with the reintroduction of gold. Which will the US deploy?

Well many are doing this already and to greater ends than just preserving their wealth as can be seen in the Max Keiser ‘Crash JP Morgan, buy silver‘ campaign which is gaining momentum and could see this practice of automatic transfer becoming more t Posted: 27 Nov 2010 07:36 AM PST Gold and silver mania is the people's reaction to institutional debt Share this:

Ask not if buying Silver will Crash JP Morgan but what JP Morgan can do to stop you from buying Silver. Posted: 27 Nov 2010 07:01 AM PST Will Buying Silver Crash JP Morgan? MK: The question in not whether or not buying Silver crashes JP Morgan. No one is saying – not even JP Morgan – that it’s not possible if enough people mobilize and take physical delivery. The question now is whether or not the people of Ireland, Greece, Iceland, Hungary, [...]

JP Morgan responds to Max Keiser’s ‘Buy Silver’ campaign with ReWorked Ad Posted: 27 Nov 2010 05:58 AM PST Share this:

Copper: the NEW ‘Poor Man’s Gold’ Posted: 27 Nov 2010 05:46 AM PST Silver bulls are very familiar with the somewhat facetious label attached to silver: that it is a "poor man's gold". However, as investors to the silver sector have increasingly come to realize, with silver inventories plummeting while silver's importance to our modern economy continues to grow, silver doesn't have to take a "back seat" to any other metal. Meanwhile, the price for a different, semi-precious metal is surging higher, while inventories for it are in steady decline: copper. Since the commodities Crash of '08, I have generally avoided all base metals miners in my portfolio – focusing exclusively on precious metals miners, as it was clear that this sector was going to bounce-back well ahead of any other. However, I certainly never abandoned my general enthusiasm for commodities. We are currently in the early stages of the largest growth-boom in the history of our species. Previously, the next greatest, protracted episode of economic growth was the rebuilding of Europe following World War II. That economic expansion fueled the global economy for decades, before these mature economies began to substitute credit-induced "bubbles" for real economic growth. This is not the situation in Asia, nor in many other emerging/developing economies. Here we see a similar episode of rapid, concentrated expansion – except that it is involving ten times as many people as the post-World War II economic boom. As billions of people in (previously) poorer economies begin to urbanize, their standard of living is quickly moving toward the middle-class affluence which Western economies used to take for granted. There is every reason to believe that a growth-boom fueled by ten times as many people is going to lead to ten times as much total economic growth – meaning that this boom will be ten times as large, ten times as long, or (more likely) some combination of the two. To fuel this unprecedented growth means expanding resource production at the greatest rate in history. Here we immediately see problems. With "peak oil" already a reality for our global economy, we are seeing supply constraints popping-up for many essential raw materials. In this respect, I remain heavily influenced by the superb research and analysis conducted by Chris Martenson. While his video presentation, "The Crash Course" is now several years old, Martenson was so far ahead of his time that the analysis remains "cutting edge". Among the most notable of Martenson's conclusions is that it isn't necessary to be facing absolute limits on the quantities of various minerals in the Earth's crust in order for us to begin facing "peak production" scenarios. Instead, Martenson focuses on two related points. First of all, most of the high-grade/easily accessible mineral deposits for many key minerals have already been found and developed. Thus, we must now dig much deeper, or do much more processing of lower-grade ore in order to simply replace the existing deposits which are drying up. It is an open (and as yet unanswered) question as to whether we are even capable of significantly expanding supply, given the increasing difficulty (and cost) in extracting these resources from the Earth. Secondly, this increased "effort" to mine these minerals directly translates into much greater energy requirements. In other words, it will take many more barrels of oil to produce a ton of refined copper than even a single decade earlier. Thus, as resource production becomes more difficult, it also becomes even more energy-intensive. Even today, in most mines energy is the #2 production cost, behind only labour. This leaves us in a scenario where as oil becomes rapidly more scarce, we will need much more of it to produce every unit of raw materials for this massive, global expansion.

GoldSeek Radio's Waltzek interviews Murphy, Austin Fitts, and Turk Posted: 27 Nov 2010 04:17 AM PST 12:13p ET Saturday, November 27, 2010 Dear Friend of GATA and Gold (and Silver): Gatans Bill Murphy, Catherine Austin Fitts, and James Turk are interviewed today during the weekly precious metals market review by GoldSeek Radio's Chris Waltzek. Their part begins at about 1:25 of the program here: http://radio.goldseek.com/ CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property 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: http://gata.org/tshirts Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: http://www.goldrush21.com/ * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit:http://www.gata.org/node/16 ADVERTISEMENT 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

GoldSeek Radio's Waltzek interviews Murphy, Austin Fitts, and Turk Posted: 27 Nov 2010 04:17 AM PST 12:13p ET Saturday, November 27, 2010 Dear Friend of GATA and Gold (and Silver): Gatans Bill Murphy, Catherine Austin Fitts, and James Turk are interviewed today during the weekly precious metals market review by GoldSeek Radio's Chris Waltzek. Their part begins at about 1:25 of the program here: http://radio.goldseek.com/ CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property 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: http://gata.org/tshirts Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: http://www.goldrush21.com/ * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit:http://www.gata.org/node/16 ADVERTISEMENT 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

Embry and McEwen interviews posted at King World News Posted: 27 Nov 2010 04:01 AM PST 12:01p ET Saturday, November 27, 2010 Dear Friend of GATA and Gold (and Silver): This week's King World News interviews with Sprott Asset Management's John Embry and mining entrepreneur Rob McEwen have been posted. You can listen to the Embry interview here: http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/11/27_John... Or try this abbreviated link: http://bit.ly/fetw5O The McEwen interview can be found here: http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/11/27_Rob_... Or try this abbreviated link: http://bit.ly/h8uVBW CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. 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: http://gata.org/tshirts Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: http://www.goldrush21.com/ * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16 ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property 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

Gold Continues to Trace Out Possible Bearish Head and Shoulders Pattern Posted: 27 Nov 2010 03:43 AM PST Gold continues to act as one would expect when tracing out a bearish head and shoulder pattern.  It’s not finished yet and may not but it does require careful attention over the next week or so. It’s the U.S. Thanksgiving week-end and most people are in holiday mode.  Having lived over a dozen years in the U.S. I’ll go along with that.  This week is just the facts, little commentary.

Wall Street Journal congratulates World Gold Council on its gold ETF Posted: 27 Nov 2010 03:35 AM PST A brief and grudging acknowledgment of GLD's doubters shows up at the bottom. * * * Behind Gold's New Glister: Miners' Big Bet on a Fund By Liam Pleven and Carolyn Cui The Wall Street Journal Thursday, November 27, 2010 http://online.wsj.com/article/SB1000142405274870362820457561860253551450... The innovation that opened gold investing to the masses and helped spur this year's record-breaking bull market was hatched in an act of desperation by a little-known gold-mining trade group. The World Gold Council, created to promote gold, was fighting for survival. Its members—global gold-mining companies—were frustrated with the council's inability to stem two decades of depressed prices and find buyers for a growing glut of the yellow metal. Eight years ago, they were considering withdrawing funding from the trade group, a move that would have effectively shut it down. Chris Thompson, the group's chairman, figured the council needed to expand the pool of gold buyers, particularly in the U.S. The idea of trading gold on an exchange had been floating around for years, but various hurdles had prevented it from taking off in America. ... Dispatch continues below ... ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property 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 What the council eventually managed to create in those dark days surpassed its wildest dreams: SPDR Gold Shares, the exchange-traded fund launched in November 2004. The fund, known by its ticker symbol GLD, has ballooned into a $56.7 billion behemoth. Today, GLD is the fastest-growing major investment fund ever, according to research company Lipper Inc., and one of the most active gold traders in the market. Its presence has helped gold -- which settled down 0.33% in New York trading Wednesday, at $1,372.90 a troy ounce -- triple in price in recent years to fresh all-time highs this month. As the world's largest private owner of bullion, GLD is soaking up $30 million of gold daily, stored in a London vault that now holds the equivalent of about six months' worth of the world's entire gold-mining production. GLD has won fans who say it has democratized the gold market, paving the way for investors of all stripes to get direct exposure to the precious metal. Its nearly 1 million investors include ordinary individuals, institutions like Northern Trust Corp. and billionaire hedge-fund managers like John Paulson. But skeptics argue GLD could become a Godzilla-like beast if the gold rally reverses sharply. They say its buying has already turbo-charged gold prices, exposing the market, and legions of small investors, to a rapid fall. Smaller copycat funds add to the risk. "We tell our clients to watch out for it, because it's there, and it's a real risk," said Jeffrey Christian, founder of CPM Group, which advises major investors worldwide on gold. The questions come as ETFs in general are coming under heightened scrutiny about whether they distort markets. ETFs are wildly popular and growing fast, spanning stocks, bonds and hard assets. But they have made it possible for far more money to rush in and out of previously illiquid markets. GLD shares trade on the New York Stock Exchange, as well as in Tokyo, Hong Kong, Singapore and Mexico City. Each share represents one-tenth of an ounce of gold. That, in effect, gives shareholders the right to their share of proceeds from selling a full bar, minus fees. Before GLD issues new shares, it takes in the necessary gold to back them. On days when there are more sellers than buyers of GLD shares, the fund offloads some of its gold. Created under the auspices of the World Gold Council, the fund relies on a number of partners. It is marketed under the banner of State Street Global Advisors, which has fund-selling expertise. HSBC PLC stores and protects the gold bars. Bank of New York Mellon Corp. handles daily operations, such as calculating the fund's net asset value. For all its size and breadth, fund managers say, it's relatively simple to operate. BNY Mellon, for instance, needs roughly a dozen employees to run the fund day-to-day. That has helped make it a windfall for all involved. The gold council, which spent $14 million developing the fund, has reaped about $150 million from its inception through Sept. 30. Its revenue is a percentage of net asset value, set at 0.15%. State Street has the same terms and also collected about $150 million in that time. Both are on track to bring in more than $80 million in the coming year if GLD stays at today's size. The success owes much to timing. The council launched the fund as interest in gold was picking up, first because of inflation worries and then as a safe-haven against financial disasters. Since then gold prices have more than tripled from $444.80, setting a record high -- though not adjusted for inflation -- of $1,409.80 on Nov. 9. The recent rally has been driven by many factors, of which GLD is just one. The U.S. dollar has steadily lost value, so some investors have bought gold as a hedge against the greenback. Tapping new ore veins is getting harder. Gold has benefited at once from fears of economic stagnation after the financial crisis and concern that government spending on the recovery will trigger inflation. GLD, though, is widely seen as amplifying those trends. Buying fund shares is easier and cheaper than investing in gold futures or buying coins. And GLD has now locked up nearly 1,300 metric tons of the world's gold supply, making the market tighter. The fund's impact has won it a following in the gold industry. "It's got the gold price up," said Nick Holland, chief executive of Gold Fields Ltd., a major mining company and a member of the gold council. "That's got to be good." Calculating the impact of GLD and its brethren is far from an exact science. But industry observers including Mr. Christian and Philip Klapwijk of GFMS Ltd. estimate gold-backed ETFs have probably added about $100 to $150 an ounce to the price of gold as a result of the incremental increase in demand. Translated, that would mean gold-backed ETFs have increased the value of the bullion that gold miners will produce this year by up to $9 billion. Many investors believe gold has much further to rise. But after a 10-year, one-way ride, others worry there could be a violent reversal down the road. The gold market hasn't been severely tested since GLD and similar, but far smaller, bullion-backed funds were launched. And many GLD investors aren't experienced in gold investing. Between 60% and 80% of GLD investors had never bought gold before, estimates Jason Toussaint, managing director of the council. No one knows how those newcomers might react in a sharp downturn. If GLD shareholders get spooked by drops in the gold price and sell en masse, the fund would have to dump metal to meet redemptions, possibly accelerating declines by prompting others to sell even more. Because GLD trades on an exchange, any selloff would be immediately visible, unlike typically opaque bullion sales. "We are more concerned about these issues than we were initially," said Scott Malpass, chief investment officer for University of Notre Dame Asset Management, which started buying GLD shares in 2005 and now has about $70 million invested. "It can turn on a dime. It can happen very quickly." For now, Mr. Malpass thinks the advantages of investing in gold outweigh the risks and the fund is properly managed. In the fund's planning stages, the world's miners had modest ambitions. Gold prices were just starting to stir from a 20-year bear market and many companies were struggling to break even. Hurdles to gold abounded. It was hard to purchase, store and insure. Some investors chose to own stocks of gold miners. The council had long focused on gold jewelry, which represented over 80% of demand but exposed the industry to economic downturns. In 2002, after the Sept. 11 terrorist attacks, jewelry demand for gold dropped 11%. Attracting investors, the industry concluded, was the way to go. Mr. Thompson, the chairman, wanted a CEO for the council who would have credibility with American investors to help implement the vision. He zeroed in on James Burton, who at the time headed the California Public Employees' Retirement System, one of the biggest institutional investors in the world. Calpers had no direct investments in gold. In July 2002, Mr. Burton flew to meet Mr. Thompson in London. Mr. Burton was skeptical, but curious. Their discussions lasted 12 hours—including talks over a round of golf, two rounds of beers and meals. Mr. Thompson gave an overview of the gold market, and a pitch for why the moment was ripe to attract retail investors. By the end, Mr. Burton was hooked. In August 2002, Mr. Burton, who had left Calpers, took over the gold council and immediately slashed 60% of the 108-person staff, closed half of the 22 offices and set about creating what became GLD. The gold council wanted a product that ordinary investors could buy and sell just like a stock. The challenge was to make shares track the gold price, much like an index fund. The eventual solution was to create a trust to serve as the legal owner of GLD's gold bars. Products were launched in Australia and the U.K. But getting a U.S. version took longer than the council expected. The mining community backed the idea, but worried it might cannibalize demand for gold-mining stocks. Since it was to be the first U.S. fund entirely backed by a physical commodity, regulators also sought to understand how the concept would work. The Securities and Exchange Commission spent months seeking information about the product and the gold market, say Mr. Burton and Mr. Thompson. The gold council also needed to hire assorted players -- a trustee, a marketing agent, and a vault operator. That process wasn't seamless, either. Barclays PLC worked for months on the project, then withdrew and built its own fund, the iShares Gold Trust, which also holds bullion. Barclays sold the iShares exchange-traded fund business to BlackRock in June 2009, and its smaller gold fund has since become an intense competitor. The council also wasn't sure how successful the fund would be, and paid UBS Securities $4 million for underwriting the first 2.3 million shares of GLD, according to regulatory filings. UBS declined to comment. "I thought it would take a lot more marketing effort to convince people to buy gold in a securitized form," said Mr. Burton. But as GLD opened, the pent-up investor demand erupted. The fund hit $1 billion in assets in three trading days, and $10 billion in just over two years. "It grew pretty quickly," said Jim Ross, head of exchange-traded funds for State Street. The firm manages 120 exchange-traded funds, as of Sept. 30, and the SPDR S&P 500 fund is the only one larger than GLD. "The fact that's our second-most successful product is still surprising to me, frankly," Mr. Ross said. The sniping at GLD also began early. Some gold investors questioned whether the fund held as much bullion as it said it did, eventually prompting the council to post on its website audit reports by an independent firm, Inspectorate International Ltd., which conducts two counts each year of GLD's gold bars in London. A segment of the gold-investing community still prefers to secure a personal stash. Some want to be able to get their hands on their bullion in a hurry, particularly in the event of a severe crisis. Gold-vault operators are cutting fees to lure such investors. Rivals also highlight worst-case scenarios the fund could face. Ben Davies, chief executive of London-based Hinde Capital, which oversees a gold fund, noted that GLD's bullion isn't insured. If the gold "is lost, damaged, stolen, or destroyed," the trust "may not have adequate sources of recovery," according to the prospectus. Mr. Toussaint said the council believes HSBC's security measures and the bank's other liability coverage provide protection. "That's the whole reason we put it in a vault in the first place," he said. Despite GLD's success, even those involved in the fund acknowledge the rally will eventually end. "We don't believe gold is always going to go up," said State Street's Mr. Ross. "No investment does." * * * Support GATA by purchasing a colorful GATA T-shirt: http://gata.org/tshirts Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: http://www.goldrush21.com/ * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit:http://www.gata.org/node/16 ADVERTISEMENT 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

Weekly precious metals review at King World News Posted: 27 Nov 2010 03:16 AM PST 11:13a ET Saturday, November 27, 2010 Dear Friend of GATA and Gold (and Silver): The weekly precious metals market review at King World News features Bill Haynes of CMI Gold and Silver, Dan Norcini of JSMineSet.com, and Gene Arensberg of the Got Gold Report. It's 20 minutes long and you can listen to it here: http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/11/27_KWN_... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. 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: http://gata.org/tshirts Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: http://www.goldrush21.com/ * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16 ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property 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

Silver (and Gold) May Be Set-Up To Launch and the HUI To Do A Moonshot Posted: 27 Nov 2010 02:45 AM PST Friday's action in the metals was quite predictable and a look "behind the headlines" reveals some interesting information.  I had mentioned to several colleagues after this week's option expiry, in which the cartel failed to slam the metals below key call option strike prices, that if a lot of the in-the-money call holders exercised and took delivery of their contracts the metals might get slammed during Wed/Fri low volumn trading.  I guess it was another lucky guess on my part per yesterday's ambush. As it turns out, Monday is "first notice" day for December gold/silver.  What this means is that anyone with a long position has to either sell their position by yesterday's access close OR have an account that can 1) to accept delivery (most online trading futures accounts to not allow this) and 2) if the account can take delivery, it has to be fully funded to accept a delivery notice as of Friday evening.  What typically happens leading into the day before first notice is that the cartel will make an aggressive attempt to force the market lower knowing that many smaller traders will be natural sellers going into the day before first notice.  Moreover, the thin volumn on Wed/Fri makes this task a lot easier - ergo yesterday's action. With this as the context, a couple of data points in silver and gold could make next week very interesting - to the upside.  First, as of Wednesday, there were 28,000 open silver contracts.  Yesterday's ambush may have forced most of those to sell (see the previous paragraph).  Preliminarily, and I do not put a lot of faith in the Comex "prelimary" open interest report, only about 7900 December silver contracts liquidated.  That would mean about 105 million ounces are standing for potential delivery.  The Comex would default if this were to play out like that.  It is likely that the silver contract liquidation was closer 20,000 contracts.  We'll find out Monday mid-morning.  That would leave 8k contracts standing, or 40mm ounces.  That is still about 80% of the silver reported to be available for delivery. If that scenario plays out, the price of silver is going to explode over the next couple of weeks. The second interesting piece of data was reported yesterday evening by zerohedge.com.  Right at the close of the afternoon electronic trading session, someone bought 2000 contracts of February gold.  I don't think I've ever seen something like that in 9 years of doing this sector exclusively.   That is an enormous purchase.  It was either desperate short-covering ahead of news that could propel the metals higher next week or a very big player has decided to square off against the egregiously corrupt maneuvers of JPM/HSBC.  You can read about that trade and some interesting volatility color here:  LINK Are gold stocks poised to stage a big move higher? The answer to this depends on which the way metals move.  I've posted a chart which shows the ratio of the HUI to gold over the past year.  The chart shows the relative price performance between mining stocks and gold.  As you can see, the ratio is roughly in the middle of its trading range for the past year.  It has bumped up against resistance again and appears to be headed lower.  If this is the case, the mining stocks are likely to outperform gold/silver for awhile.  (click on chart to enlarge) If my trading scenario for higher gold/silver outlined above plays out, the mining stocks should really start to move higher in December.  From a technical/fundamental standpoint, I would argue that the metals are set up to rally big-time.  We have already seen that the Fed/Treasury are willing to do whatever it takes in terms of monetizing the system in order to stimulate a big holiday season and keep the economy from collapsing.  Furthermore, the Fed typically injects a lot of extra short-term liquidity into the banking system via repos in December for several reasons, not the least of which is to fuel a year-end/January-effect rally in the stock market.  Gold and silver will smell this if it occurs again and will outperform the stock market to the upside.  The mining stocks will do that times-2.   In addition, with Europe melting down again and the geopolitical climate heating up (see the Koreas, the U.S./China battleship tension and the China/Russia currency announcement), I think we can expect a considerable flood of global money to seek shelter from fiat currencies and reckless Government policies everywhere.  Layer on top of that the Islamic world returning from an extended religious hiatus, which will likely create a bullish influence on the metals.  And finally, the sentiment indicators in the precious metals, using several metrics, have plummeted in the past week.  From a contrarian perspective, this is usually quite bullish. So, will the metals/mining stocks move a lot higher in December?  I have no idea - anything can happen.  I would suggest though that the conditions are set up for a possible significant move higher.  If that is the case, you want to be positioned accordingly because once this freight train leaves the station, you will have a hard time convincing yourself to jump on board. This posting includes an audio/video/photo media file: Download Now

Hugo Salinas Price: Silver money for Mexico Posted: 27 Nov 2010 02:34 AM PST 10:30a ET Saturday, November 27, 2010 Dear Friend of GATA and Gold (and Silver): Hugo Salinas Price, president of the Mexican Civic Association for Silver, argues that his idea for an undenominated silver coin circulating as regular currency in Mexico would help China transform its growing problem of inflation into wealth-building for that country's vast population as it drew on China's long history of monetary silver. Salinas Price's essay is titled "Silver Money for China" and you can find it at the Internet site of the Mexican Civic Association for Silver, Plata.com, here: http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?fiidarticulo=1... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property 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: http://gata.org/tshirts Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: http://www.goldrush21.com/ * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit:http://www.gata.org/node/16 ADVERTISEMENT 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

The Gold Price Isn't About Gold! Posted: 27 Nov 2010 02:09 AM PST Since 2000, the gold price has risen from $300 to $1,400 an ounce. There are several more important reasons than its being 'just a commodity.' The strongest driving force behind gold's rise in the last four years has been investment demand. As a commodity, it doesn't tarnish, it's a great conductor, and makes good looking jewelry. But these reasons are not the reasons why people invest in gold.

Riots in Hungary, Argentina . . . Ireland, Greece, Iceland, UK, Spain . . . Is there a common theme here? Why not decapitalize the global financial terrorist syndicate BUY SILVER! Posted: 27 Nov 2010 01:01 AM PST Hungary Follows Argentina in Pension Fund Ultimatum Share this:

KWN Weekly Metals Wrap – Euro Gold Nears Record Posted: 27 Nov 2010 12:51 AM PST HOUSTON – Gold managed to turn in an increase in the USD price this Thanksgiving week of a net $10.29 the ounce, closing at $1,363.62 on the Cash Market, but that was as the U.S. dollar index (DXY) raced upwards a big 195 basis points from the 78.40s to a last print Friday of 80.35 on escalating anxiety over sovereign debt in the Eurozone. Meanwhile, gold in euro terms advanced about €41.00 to a €1,030 handle, within €21.00 of its all time record high set in June. As wealth once again flees the largest European member of the "fiat currency leper colony," some of that wealth flowed into the just as sick U.S. leper colony inmate, the greenback, but an increasing amount decided to seek safe harbor in the only real money on the planet....

In The News Today Posted: 26 Nov 2010 11:40 PM PST View the original post at jsmineset.com... November 26, 2010 06:25 PM Jim Sinclair’s Commentary There is so much happening now that any thought other than self protections is madness. The dollar is no safe haven. Gold will trade at and above $1650. Putin: Russia will join the euro one day Vladimir Putin said it is "quite possible" that Russia will one day join the eurozone and create a currency that would eclipse the US dollar as the global reserve standard. By Louise Armitstead 5:30PM GMT 26 Nov 2010 Speaking at a conference in Germany the Russian prime minister, who is in the country for talks with Chancellor Angela Merkel, said he was convinced the euro would stabilise and strengthen despite the current sovereign debt crisis. He said: "Yes, there are problems. But the economic policy of the European Central Bank and of the governments of leading European economies … convinces me that the stability of the euro will be ensured." He added: "We know there a...

How the U.S. Government Guaranteed the Coming Global Food Crisis Posted: 26 Nov 2010 11:31 PM PST Porter Stansberry with Braden Copeland write: Over the last several years, I've written constantly on the growing likelihood of a global currency collapse. The governments of Europe and the United States have accumulated debts so large they can't ever hope to repay them, except with currencies whose value will be inflated away by money-printing.

Bernanke Rolling the Dice: America's Financial Dilemma Posted: 26 Nov 2010 11:18 PM PST There is no question that the world is at a boil. Germany is drawing anger; N. Korea has attacked S. Korea; flaying about the FED’s Mr. Bernanke blames China for America’s sad economic and financial dilemma; five suits, class action and RICO, have been filed against JPMorgan Chase and HSBC for having manipulated silver prices and class actions are rumored to be in process for naked shorting, which has been rampant in the market for years, a felony hedge fund investigation of insider trading, which the SEC has absolutely refused to pursue.

11 Statistics Show Just How Far the Economy Has Deteriorated Posted: 26 Nov 2010 11:13 PM PST Economic Collapse writes: Are you better off today than you were four years ago? Unfortunately, most Americans are not. Both political parties have controlled the White House during the last four years – Barack Obama has been in office for nearly two years and before him it was George W. Bush – and yet no matter what politicians we send to Washington D.C. things just seem to keep getting worse. We buy more than we produce, we spend more than we bring in, we have 18 times as many "problem banks" as we did 4 years ago, the number of Americans on food stamps continues to set a new all-time record every month and we are living in the greatest debt bubble in the history of the world. But at least the majority of Americans are still prosperous enough to enjoy a happy Thanksgiving inside a warm, comfortable home. Unfortunately, if things keep going the way they are going, we are going to experience a national economic nightmare that nobody will be thankful for.

World At A Boil With War And Economic Crisis Posted: 26 Nov 2010 07:00 PM PST Koreas prepare for war, Fed beyond point of no return, silver manipulation charges, Ireland in economic collapse, pondering foreclosuregate, more Madoff fallout, TSA patdowns despised,

U.S. Reality Check: China, Russia Drop the Dollar Posted: 26 Nov 2010 11:36 AM PST The exponential implications of bilateral trade settlement against the U.S. dollar are huge.

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