Gold World News Flash |
- Pan American CEO - End Users Having Trouble Getting Silver
- Germany faces its awful choice as Spain wobbles
- Gold Is the World’s Premier Currency, According To The Markets
- Gold vs. the Euro
- There Is No Head and Shoulders Pattern in Gold
- Irish Bailout Still Not a Done Deal
- IMF says it sold less gold in October
- German bank's analyst urges gold transparency, praises GATA
- Fiat Evolution Part III
- Sean Boyd - Gold Headed to $2,000, Silver $60 to $75
- Gold Seeker Closing Report: Gold and Silver Start the Week with Gains
- EU Buys Ireland on Cyber Monday, Comes with Free Shipping, 6 Pack of Guinness, and Plenty of Broken Dreams
- Senate fails to repeal $600 tax-filing requirement
- Doug Casey’s Secret to Finding Winning Stocks
- Chinese Selloff Intensifies As Traders Expect Imminent Rate Hike Following China State Council Comments
- Silver Prices Surging on Near-Record Demand
- Simon Black Advocates Leaving America As The "Most Effective" Way To Fight ...
- Crash JP Morgan_buy silver
- In The News Today
- Jim?s Mailbox
- Social issues, corruption fears cloud Afghan gold mine development
- The Footnote On The Irish Bailout Plan
- The Gold Price Needs to Close Clean Through $1,366, then $1,380, to End Speculation
- Many (Most) Missing The Silver and Gold Bull Run
- The European Debt Crisis at a Glance
- Silver Wheaton Remains a Strong Buy
- Got Gold Report - Brief COT Update
- Market Recap: 11.29.2010
- MONDAY Market Excerpts
- Gold, No Bearish Head and Shoulders Pattern
- Time to Sell Bonds
- China, Russia Flee the Dollar
- Wikileaks Next Target: "A Big US Bank"
- Stock Market Small Late Reversal...Nothing To Get Excited About...
- U.S. Dollar Rally, Gold and the Art of Speculation
- IMF's gold sales slowed 40 pct in Oct. vs Sept.
- Guest Post: Musing Of A Bank Run
- Silver good. Beer bad.
- European bond trouble worsens despite bailout for Ireland
- The Long and Short of Treasury Bond Yields
- Hey this is cool – MKC has no relationship with Scottsdale: “The blogs are heating up with the google trend “Crash JP Morgan Buy Silver” so we've created this offering to attract everyone – especially first time silver buyers
- Silver can cure your portfolio, and maybe colds too
- How has gold been faring in non-dollar terms — and where next?
- Gold to $2,000, silver to $60 without world's collapse, Agnico CEO Boyd says
- Gold to $2,000, silver to $60 without world's collapse, Agnico CEO Boyd says
- Gold imports jump in India
- Restoring the US Economy and a Sneak Peak at Our New Documentary
- COT Gold, Silver and US Dollar Index Report - November 29, 2010
- Downstream Value in Rare Earths - Jon Hykawy
- Why I Sold My Gold
| Pan American CEO - End Users Having Trouble Getting Silver Posted: 30 Nov 2010 04:01 AM PST  With gold and silver continuing to digest recent gains, King World News interviewed Geoff Burns, CEO of Pan American Silver. When asked if he had heard about tightness in the silver market Geoff stated, "Anecdotally Eric, I mean when you talk to some of the fellows who actually trade the physical, they can relate stories where they are actually having trouble getting their hands on quantity. Particularly for some of the end users who are looking for real product, not the investment guys, but the actual elctronics manufacturers, etc. who need physical silver in order to make their products."
This posting includes an audio/video/photo media file: Download Now |
| Germany faces its awful choice as Spain wobbles Posted: 29 Nov 2010 11:09 PM PST This is the sort of game-changer that may now be required to save EMU and the Monnet dream. Germany must contemplate doing for Euroland what it has done for its own Volk in the East over the last 20 years – pay big transfers – or watch its strategic investment in the post-War order of Europe collapse with a bang, and in hideous acrimony. Tough call.
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| Gold Is the World’s Premier Currency, According To The Markets Posted: 29 Nov 2010 08:53 PM PST 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.
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| Posted: 29 Nov 2010 06:51 PM PST Colin Peterson submits: So I think everyone knows that I am short-term bearish or at least ambivalent about gold. Last night, I was been thinking about gold versus euros, that is short euros (FXE) and long gold (GLD). Here's a three year chart of the gold/euros trade. You'll notice that there has been a new breakout in the chart. Complete Story »
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| There Is No Head and Shoulders Pattern in Gold Posted: 29 Nov 2010 06:06 PM PST In the past week I've seen more than a few mentions of the potential head and shoulders pattern in Gold. A head and shoulders pattern occurs when a market forms three peaks and the middle peak is noticeably higher than the left and right peaks. However, that is not enough for the pattern to play out as projected in the textbooks. There are other important characteristics of this pattern, which many technicians ignore or are unaware of.
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| Irish Bailout Still Not a Done Deal Posted: 29 Nov 2010 06:01 PM PST After a long holiday weekend, U.S. stocks came stumbling out of the gate Monday, unable to determine how, or even whether, they should react to yet more "strength" in the dollar. We've wrapped the word "strength" in quotes because it is only in relationship to a euro enfeebled by financial crisis that the dollar could ever appear to be strong. And so it was yesterday, with the Dollar Index rallying to within 0.66 points of an ambitious, 81.80 target we'd sent out to subscribers the night before.
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| IMF says it sold less gold in October Posted: 29 Nov 2010 05:47 PM PST By Frank Tang and Lesley Wroughton http://af.reuters.com/article/metalsNews/idAFN2922871120101129 The International Monetary Fund has slowed the rate of selling its gold by 40 percent in October from the previous month, as interest among central banks to own the metal increased as a hedge against economic uncertainty. The IMF sold 628,000 ounces (19.5 tonnes) of gold in October as part of its previously announced open-market bullion sales plan, an IMF spokesman said on Monday. October's gold sales were sharply below the 1.04 million ounces sold in September, when nearly a third of the sale was going to Bangladesh. ... 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 The IMF said late last year it would sell 403.3 tonnes or one-eighth of its total gold reserves to boost its lending resources. The fund said the sale would avoid disruptions to the gold market. Many analysts expect world central banks as a group could become net buyers this year despite the IMF's gold sales, reversing a trend in the last several decades. Based on information from the IMF's Financial Statistics database, the spokesman said cumulative on-market sales of IMF gold to the end of October was 4.8 million ounces (148.6 tonnes). The sales were part of IMF plans announced in February to begin phased sales of 191.3 tonnes of gold in the open market this year. Gold previously sold directly to central banks were 222 tonnes to India, 200 tonnes to Mauritius, 10 tonnes to Sri Lanka, and 10 tonnes to Bangladesh. Gold prices hit an all-time high of $1,424.10 early this month before retreating. The rally was driven in part by expectations that the Federal Reserve would buy back U.S. Treasuries to stimulate economic growth. However, gold's rally appeared to stall despite concerns about the fiscal health of euro zone economies after a bailout on debt-stricken Ireland and rising tensions on the Korean peninsula. On Monday, spot gold traded at around $1,365 an ounce. Still, the metal has rallied more than five-fold from about $250 an ounce back in 2001. 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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| German bank's analyst urges gold transparency, praises GATA Posted: 29 Nov 2010 05:29 PM PST 1:22a ET, Tuesday, November 30, 2010 Dear Friend of GATA and Gold: The chief market analyst for Bremer Landesbank in Bremen, Germany, Folker Hellmeyer, was interviewed this month by Lars Schall for ChaosTheorien.com and commented on the manipulative concentration of participants in the gold and silver markets, urged repatriation of Germany's gold from the United States and greater transparency with central bank gold reserves, and called GATA and the proprietary Internet site of GATA Chairman Bill Murphy (LeMetropoleCafe.com) "the best provider of news regarding bullion in general for the past 10 years." The interview is headlined "I Don't Want Speculation; I Want Clear Investment" and you can find it at ChaosTheorien here: 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 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
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| Posted: 29 Nov 2010 05:17 PM PST  In Part I, I discussed the emerging US Fiat Model, and in Part II, I described the emerging EU Fiat Model. But as the current Euro crisis plays out, we may see the EU following in the footsteps of Ben Bernanke - that process is unfolding right now. The overall theme of this series of posts is that we have entered a new era. An era of fiction, an era of success without failure, of backstops and bandages. It is an era of suspended disbelief; of delaying a cruel and unavoidable reckoning of reality. Things will look as they always have. Most people will sense something is amiss, but will never fully appreciate the sea change that is occurring. Policymakers will temporarily succeed in creating an atmosphere of business as usual; that things are OK and we'll get through it. They will temporarily succeed, but long term, their failure is certain. The Sovereign Bond Markets are Dead; Long Live the Sovereign Bond Markets! Historically, sovereign bond markets have been a source of funding for government activities. This remains true for the individual EU member states, but not for the US Federal Government. Unlike the EU member states, the US issues its own free floating currency and denominates its debt in its own currency. So if the US needs money, it prints it, or in modern times, a keyboard stroke credits an account. But the US maintains a bond market to control the amount of money and influence the cost of money in the global financial system. By having the world reserve currency, the US must continually create money to keep up with the growing world economy. This has been described as the "exorbitant privilege," that is, to a degree, the US can export its inflation and get a free lunch in the process. Other countries can not do this. The Primary Dealers which are the Commercial Banks (which ares also shareholders in the Federal Reserve System) always make sure that US Government debt is purchased. They pick up any slack, so to speak. Thus, and I want to make this clear, there will never be a failed US Government auction! So not only does the debt not finance US Government spending, but the system is created so that the debt is always sold. Always. As I mentioned in Part I of this series, QE2 is really a replacement of a normal, healthy, functioning private banking sector and a normal, healthy, functioning sovereign bond market. The US never really relied on foreign bondholders such as China to finance it's debt. (See my post Part I) Furthermore, the interest the Federal Reserve now accumulates from Treasury purchases is mostly returned to the government. The US government is essentially receiving an interest free "loan." This is turn affects all interest rates, so in a way, yes there is a free lunch. But that too will end. I will explain below. The EU, on the other hand, is in shackles. Each country needs to go to the sovereign bond market as a begger. And if the sovereign bond market doesn't like the way the government is managing its budget, the interest rates soar. And so, we have seen Greece and Ireland backstopped by the IMF, EU, and ECB. There will be more. Portugal is likely next, and Spain isn't too far behind. Thus, the Sovereign Bond Market in the Western World at least, is dead, but it is also still "functioning." It is a walking zombie, or a comatose patient on life support. It is dead in the US because without the Federal Reserve buying up Treasuries from the Primary Dealers, there would be a failed auction. The Federal Reserve is now the largest holder of US debt. Fiat money in the US has now evolved into a complete fiction. The housing industry, and soon to be state budgets, will all be supported by a fictional monetary system controlled by the Fed. Price discovery? Please.... There is no such thing. Jim Rickards recently addressed this: The Sovereign Bond Market is just about dead in the EU, because without the IMF, EU, and ECB, there would be a flood of government insolvencies and European-wide Banking collapses. The ECB has been actively trying to keep rates low by buying up government debt by, you guessed it, creating money out of thin air. And so, Sovereign Bond Markets are a fiction. They are on artificial life support and will remain so until the system collapses. And no one is admitting this!!! Here's an example of a typical politician/economist's rhetoric : Greek Finance Minister George Papconstantinou recently said that the extension of the repayment period of IMF/EU loan funding would allow Greece to go to the international markets for funding next year. What is he smoking?!!! Greece's debt to GDP percentage will be much WORSE next year. Does he believe that Greece will get an interest rate below 9%? And I'm being optimistic with the 9% figure. If your GDP grows less than the interest on your debt, you are INSOLVENT, or soon to be. Think about it. If your debt is growing at 6% (if you're lucky), but your GDP is growing at 2% (if your're lucky) how do you think that story will end? Do these economists own calculators? Do they understand the laws of mathematics? But this isn't a Greek thing, it affects Ireland, Portugal, and soon Spain, and maybe even France. The US and Modern Monetary Theory - Avoiding the Laws of Thermodynamics There are many out there that smugly preach that the US will never have a failed auction, and thus, things are just peachy. Many describe themselves as Modern Monetary Theorists (MMT'ers) They have a right to be smug because they are some of the few people that understand how the US system actually works. Most others are clueless. Many have been right about this crisis, but for the wrong reasons. But what the MMT'ers ignore are the geopolitical consequences of basing your monetary system on a "free lunch" paradigm. They also ignore the convenient fact that the US has the world's reserve currency - for now. I mention this because MMT'ers think in a sterile, economic environment. By ignoring the geopolitical consequences of such a monetary system, they ignore the ultimate end game. That's why I like to focus this blog on the " interwoven fields of geopolitics, economics, and monetary theory" as I write in the intro to my blog. Because that's how the real world works. So what do I mean by the geopolitical constraints of a monetary system? Well, let's forget how money is created for a moment. Let's look at why we have money. Money is used to allocate the world's resources - who gets what and why. Money is used to build armies and fight wars. Money is used to control others. So the more money you can create, the more you can consume and control, compared to others. Guess what? China and Russia know about the US's dirty little secret. They understand that having the world's reserve currency gives the US an economic advantage over them. They also understand that QE2 is the next phase of the evolution of Fiat Money that gives the US the ability to continue business as usual despite skyrocketing budget deficits and a national debt that will never be manageable. And what is China and Russia doing about it? They are increasingly ignoring the US dollar. They are entering into non-dollar denominated bilateral agreements. They are openly challenging US economic hegemony. They are calling for the end of the US economic free ride. I write about this in more detail in my post: The Next Largest Nuclear Powers, China and Russia, Openly Challenge US Economic Supremacy. Thus, the US debt-based paper dollar will likely meet its end through geopolitics, not a failed government auction, as most believe. MMT'ers completely ignore this variable in their analysis. My belief is that things will get extremely complicated within the next two years. Current geopolitical bullying evidenced thru the North/South Korean confrontation and the closer ties between Russia and Germany, and Russia and China, tell me that the process to a new monetary system is accelerating. The EU is an Utter Clusterfuck - The Two Roads to Hell (sorry due to time constraints, to be continued tomorrow!) 
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| Sean Boyd - Gold Headed to $2,000, Silver $60 to $75 Posted: 29 Nov 2010 04:05 PM PST Regarding silver Sean stated, "Silver on a percentage basis is going to do better than gold over the next year or two. Gold will attract money into the precious metals space and silver will be a big beneficiary of that. And if gold is at $2,000, then silver could be $60 to $75."
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| Gold Seeker Closing Report: Gold and Silver Start the Week with Gains Posted: 29 Nov 2010 04:00 PM PST Gold fell over $10 to as low as $1355.49 by about 10AM EST, but it then jumped up to as high as $1368.43 in the next hour and a half of trade and ended with a gain of 0.06%. Silver fell to as low as $26.505 before it also rallied back higher in late trade and ended near its late session high of $27.235 with a gain of 1.31%. Both metals have also risen to new highs in after hours access trade.
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| Posted: 29 Nov 2010 03:44 PM PST
Hells yeah, Money McBags is back from his Thanksgiving break where he basted some turkeys, watched consumers run up more debt during Black Friday sales that they won't be able to pay off until the dollar hyperinflates to whatever is just below infinity (perhaps Bernankity), and furiously read Wikileaks to learn that the US had a nuclear fuel standoff with Pakistan, was weary of Chinese computer hacking, and never puts the toilet seat back down after using it.
The big news on the Street today was that the market faltered despite strong holiday sales on everything from computers, to cars, to Ireland. Black Friday sales were up 6.4% and the market hopes consumers build on that with Cyber Monday, Five Finger Discount Tuesday, and "Oh Shit What are We Going to Do with All of this Inventory" Wednesday. As mentioned, the market failed to rally on this because congress returned to work (which means the economy is that much closer to combusting) and Ireland's bailout became official for the 3rd time. Ireland will be getting 85B Euro under the conditions that they don't spend it all in one place, stop giving loans to people who can't pay them back (other than themselves, which is weird logic there, but the EU must know what they are doing, right?), and lend Jill Kelly to the IMF for just one night so the IMF can conclude their proper due diligence.
Of the 85B euro, 17.5B will be coming from the Irish government through money it has already raised by selling bonds and as proceeds from the pride of Limerick Tanya Trianta's car wash and Irish bagpipe booth. Of the rest, 22.5B will come from the IMF and 45B will come from bilateral loans from European nations (and the loans are so bilateral that they love other loans of the same denomination) and from two rescue funds set up by the EU in the Spring for either a rainy day or when shit is blowing up.
The debt will come with interest rates ~6% (or 0% once Ireland's economy doesn't recover and they can't afford to pay interest) and Ireland has said they will try to cut the budget deficit from 32% of GDP to 3% of GDP by 2014 and hopes like the Special Olympics, they simply get credit for trying. That said, this is all completely cockposterous as with budget cuts coming (and not just because they were manipulated by Claire Tully), Ireland's growth will be more strangled than OJ Simpson's career (or his loved ones), so how the fuck are they going to cut that much in to their debt? Seriously, this is more of a contradiction than the liar's paradox and not because it doesn't make sense, but because they are all going to be fucking liars.
With the austerity plan aiming to cut $15B euro of spending over the next 3 years (which means HBO will be shut off in all government buildings and if Prime Minister Brian Cowen wants second breakfast and third lunch he will have to return to the Shire), Ireland is as likely to cut their deficit to 3% of GDP as Leslie Neilsen is to marry Crystal Mccahill (and not because he couldn't have her, but because he's dead, but surely you understood that, and yes, Money McBags will stop calling you Shirley). Luckily, the EU is already willing to extend Ireland's deficit target until 2015 (until next year when they extend it to 2016), as the slippery slope has already been fucking slipped on and is set to leave Europe with more than just a broken coccyx.
But it's not just Ireland, as once again the cost of debt in Spain and Portugal has risen from "too high" to "too fucking high" as Spain and Portugal may need a bailout worse than one of Stephen Seagal's assistants. Noted turd in the punchbowl Nourel Roubini said Spain is the big elephant in the room (though they clearly aren't standing in the same room as Lexington Steele) because there is not enough official money to bail Spain out (until more is printed, duh). As Roubini said: “..the stress tests were not stressful enough, if not a total fudge” before adding, "and that fudge was packed with care by Europe as they tried to keep this their dirty little secret.“
But then the master of disaster, the prince of pessimism, the modern day nabob of negativity, and the spitter in the oral scene if you will, had the quote of the month as he said this about QE2: "The problems of the economy are not problems of liquidity, but problems of credit insolvency, and therefore monetary policy cannot resolve this.” And yes the bolding is intentional because when The Bernanke reads the award winning When Genius Prevailed tonight (and believe Money McBags, he will), Money McBags wants to make sure Benny B sees that quote and doesn't miss it while skimming the column for the latest Sofia Vergara boob shot or the link to take him back to dickflash.
In the US, macro news was lighter than repeat traffic to any site dealing with the Blue Waffle (and google that at your own peril) with the only real news being that President Obama proposed a two year freeze in Federal work pay which means most Mailmen and tranny porn screeners will cost the American people only $150k a year in perpetuity.
In the market, Morgan Stanley's Mary Meeker was hired by Kleiner Perkins after she spent 4 years on a 424 page research report that concluded mobile technology was the next big thing. Holy shit, excuse Money McBags while he punches himself in the nuts over that one. Wow, he now anxiously awaits her next opus to be published around 2015 concluding that "the suns is really hot" to be followed up by her 2020 piece de resistance concluding that "Tits Sell." And Money McBags thought Cindy Margolis was the most washed up chick on the internet.
In stock news, there weren't a lot of big movers (or as they are known as on the award winning When Genius Prevailed, Gabourey Sidibes) today. Fed Ex delivered ~4% returns to investors after an upgrade from Credit Suisse because Credit Suisse finally figured out that people around the world need shit delivered. Walmart announced that they intend to buy 51% of South Africa's Massmart which is already being protested by South Africa's largest labor union. So jjust to clarify how shitty Walmart treats employees, a country that didn't find Apartheid oppressive until 1994 immediately found WMT's labor tactics to be too onerous, so umm, yeah. And finally, SBUX told Kraft to eat a venti dick as they claim Kraft has been mismanaging sales of SBUX coffee in grocery stores.
If you missed it, the award winning When Genius Prevailed turned one last week and celebrated in typical Money McBags fashion with plenty of insight, analysis, and Sofia Vergara.
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| Senate fails to repeal $600 tax-filing requirement Posted: 29 Nov 2010 03:39 PM PST By Stephen Ohlemacher http://news.yahoo.com/s/ap/us_health_care_repeal WASHINGTON -- The Senate on Monday rejected an effort to reduce tax-related paperwork for businesses when lawmakers couldn't agree on whether they would make up the revenue the new requirement was expected to produce. The filing requirement is part of President Barack Obama's health care overhaul but not related to health care itself. It is expected to help the government collect an estimated $19 billion in taxes on underreported income over the next decade, and that revenue has been slated to help pay for changes in the health care system. Under the new law, nearly 40 million U.S. businesses would start filing tax forms in 2012 for every vendor that sells them more than $600 in goods. Many Democrats who supported the filing requirement now acknowledge that it would create a paperwork nightmare, but whether to make up for the lost revenue has divided senators who agree it should be repealed. ... Dispatch continues below ... 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 Senators tried twice on Monday to amend an unrelated food safety bill to repeal the filing requirement. Both proposals, one by Sen. Max Baucus, D-Mont., and another by Sen. Mike Johanns, R-Neb., failed to get the necessary two-thirds majority. The Johanns amendment would make up the lost revenue by requiring the Obama administration to tap unspent money in various federal accounts. "Billions of taxpayer dollars sit in unspent accounts and a very small percentage of those funds would give small businesses a much-needed break from the impending tax paperwork tsunami," Johanns said. The Baucus proposal was not paid for. Democrats argued that the health care law would still reduce federal borrowing, even without the filing requirement. The nonpartisan Congressional Budget Office estimates that the new health care law will reduce federal budget deficits by $143 billion over the next decade. Repealing the filing requirement would mean smaller savings. Businesses already must file Form 1099s with the IRS when they purchase more than $600 in services from a vendor in a year. The new provision would extend the requirement to the purchase of goods, starting in 2012. The goal of the provision was to prevent vendors from underreporting their income to the Internal Revenue Service. The filing requirement would hit about 38 million businesses, charities and tax-exempt organizations, many of them small businesses already swamped by government paperwork, according to a report by the National Taxpayer Advocate. It would also create an avalanche of paperwork that could strain the IRS itself, wrote the advocate, an independent watchdog within the IRS. The House voted in July against repealing the requirement, when House members could not agree on how to make up the lost revenue. The food safety bill would increase Food and Drug Administration inspections of food processing facilities, give the FDA power to order recalls of tainted products and require farmers and manufacturers to follow stricter standards for keeping food safe. Senators voted to move forward with the bill Monday and are expected to vote on final passage Tuesday. 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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| Doug Casey’s Secret to Finding Winning Stocks Posted: 29 Nov 2010 03:17 PM PST Editorial Link: http://www.caseyresearch.com/editorial/3865?ppref=TBP104ED1110B I've been asked "What's the secret of finding winning gold, silver, and other natural resource stocks?" more times than I can even begin to count. And for over 20 years, my answer has remained pretty much the same: the Eight Ps. The Eight Ps is a relatively simple question-and-answer process we use [...]
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| Posted: 29 Nov 2010 02:38 PM PST
In a surprising reversal, the Shanghai Composite has dropped 3% in early trading following a statement by the China State Council which on Monday said it will revise penalties to crack down on price violations to tackle inflation, which has been interpreted by traders as an imminent December rate hike. Per Dow Jones: "Shanghai Composite Index down 2.5%3.0% at 2793.95, faces immediate support at 2750 level. "There has been heightened expectations for an interest rate hike soon, which exacerbated earlier weakness in the index from sovereign debt concerns from Europe as well as a stronger U.S. dollar," says Wang Junqing, analyst from Guosen Securities." More importantly key stat arb pairs such as the AUDJPY and the ESZ/NDZ are being dragged below the surface. On an indexed basis, the ES will soon take out the intraday lows per the AUDJPY. For Brian Sack's sake, we hope the Fed has its midnight crew in tow as this could get ugly fast. We will be following.
Elsewhere a former PBoC head published comments calling for faster cooling, and for the government to begin fighting runaway inflation. One of the mechanisms proposed is CNY reval. Of course, with all the pressure from DC on the CNY, China is far more likely to hike the deposit rate before it actually is seen as acceding to Schumer's demands (to wit: Tuesday CNYUSD fixing at 6.6762 compared to 6.6700 on Monday). From Market News:
Finally, Reuters China, citing, China International Capital Corporation, had this to say (whoever has a better translation please chime in):
h/t London Dude
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| Silver Prices Surging on Near-Record Demand Posted: 29 Nov 2010 02:21 PM PST Silver prices have soared 60 percent in 2010, driven in large part by a strong investment demand, "This is probably the strongest demand there's been in the last 25 years,"
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| Simon Black Advocates Leaving America As The "Most Effective" Way To Fight ... Posted: 29 Nov 2010 02:16 PM PST The government beast in your home country feeds on debt and taxes, and the best way to win is for bright, productive people to move away with their ideas, labor, and assets. This effectively starves the beast and accelerates its collapse. Then, when the smoke clears, you can move back and help rebuild a free society.
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| Posted: 29 Nov 2010 12:27 PM PST Share this:
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| Posted: 29 Nov 2010 12:00 PM PST View the original post at jsmineset.com... November 29, 2010 09:51 AM Jim Sinclair’s Commentary Peter Schiff makes an interesting comparison. Jim Sinclair’s Commentary Please review this important video. Putin speaks on the Euro. Russia and China takes this opportunity the crisis gives to get closer to Euroland. Historically when everyone runs from a situation Russia and China take the opportunity to benefit. The banksters will move to Euroland to profit from a much closer economic relationship with Russia and China. The West has no concept of this. 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 c...
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| Posted: 29 Nov 2010 12:00 PM PST View the original post at jsmineset.com... November 29, 2010 09:38 AM US dollar Strength Will Disappear As Fast As It Materialized CIGA Eric Scott, The strength in the US Dollar, an illusion revealed by the global strength in gold, will disappear as fast as it materialized from media-driven hype. "Connected" players are repositioning against the hype into strength right now. The duration of operation Euro take down depends on the quantity of contracts or amount of ‘fuel’ controlled by the weak hands. The secular trends of up gold, stocks, euro, and down U.S. dollar will resume when this fuel is exhausted. Turn off the TV and follow the money. COT figures, due later today, will reveal the trail of bread crumbs to follow. Regards, Eric Eric - Given the current and potential bailouts Roubini is referring to, is it probable we see a further period of pseudo-strength in the USD accompanied by weakness in gold and shares? IOW – weakness until capital finishes i...
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| Social issues, corruption fears cloud Afghan gold mine development Posted: 29 Nov 2010 11:23 AM PST (Reuters) — The hills around dusty Nor Aaba are laced with gold but villagers have blocked work on a new mine in a dispute over jobs, a warning that Afghan plans to ramp up mining may bring trouble as well as treasure. Security and corruption problems that have made fighting the insurgency and setting up a credible central government so difficult reach right up to this steep, isolated valley just a few miles from the Tajik border in northern Takhar province.
The mine contract promises work, roads, schools and clinics to an impoverished area and eventually $4-5 million a year in tax revenues to the government. None of it has arrived and the locals in an otherwise peaceful area are unhappy. "The people are angry at the government, at the company and we have decided that no excavation will take place until our demands are met," said Mir Ahmad, a village leader. … obstacles include a raging insurgency that makes transit and security big headaches, weak infrastructure that hinders shipment of ore and monitoring of remote sites like Nor Aaba, weak rule of law meaning limited protection for ordinary citizens, and massive corruption in both the private sector and government. [source] RS View: Warren Buffett is infamous for his old wisecrack about the supposed folly of digging up gold in one place only to redeposit it elsewhere. It makes a nifty soundbite for the likes of paper-pushers on Wall Street and at CNBC, but does a disservice in discounting the important role it has the power to play (think California Gold Rush, for example) in bringing development/settlement to otherwise wild and untamed regions. And even in those instances where there is a great will behind it, prizing loose the desired treasure is no certain or easy feat.
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| The Footnote On The Irish Bailout Plan Posted: 29 Nov 2010 11:20 AM PST
We very much enjoy the view of Michael Cembalest (CIO, JPM Private Bank) when it comes to the sensitive topic of geopolitics, as it tends to provide that incremental perspective over and above what otherwise his and other banks would skirt around due to conflicts of interest (after all they are banks). Today, in his Eye on the Market report, Cembalest looks again at the Irish bailout. And while his summary of the 4 key dynamics (in his opinion) is certainly spot on, it is his footnote that caught our attention, as it carries in it the most pertinent information: namely, that since its bankruptcy and currency devaluation, Iceland's economy and stock market have surged, unbound by the shackles of a zombie monetary system and exponentially growing debt. Ireland, to the contrary, can only hope for at best a gradual decline in its economic output instead of an outright collapse now that European Commission council is the country's new politburo. It can also, at best, hope that its pension fund will have a few penny farthings left for the aging population once it is done rescuing Europe's banks. It is precisely this option that a formerly democratic country refused to offer its citizens, and is the reason why its entire government should be tried for treason: instead of using empirical evidence that default and devaluation is the best outcome, Ireland crumbled to the interests of a few parasite plutocrats, which have just their own interests in mind, and never those of the host nation (which ends up being abused and discarded like a used condom off the side of the road). The key issues on the Irish bailout per Cembalest:
This is all well-said and very coherent. But it is not what we want to highlight. What we do want to emphasize is the comparison of Ireland to Iceland. Aka footnote one:
This is nothing less than yet another example that in the great collapsing game of Keynesian fundamentalist's dilemma, he who defect, defaults and devaluate first is the winner. Congratulations Iceland. To everyone else: enjoy the eventual revolutions. They are now inevitable, courtesy of your favorite neighborhood parasite banker.
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| The Gold Price Needs to Close Clean Through $1,366, then $1,380, to End Speculation Posted: 29 Nov 2010 11:13 AM PST Gold Price Close Today : 1366.00 
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| Many (Most) Missing The Silver and Gold Bull Run Posted: 29 Nov 2010 11:05 AM PST France Seizes €36bn of Pension Assets Hungary Follows Argentina in Pension-Fund Ultimatum, `Nightmare' for Some
This posting includes an audio/video/photo media file: Download Now |
| The European Debt Crisis at a Glance Posted: 29 Nov 2010 11:00 AM PST Let's look at how the European debt situation developed. When Europe brought out the euro in 2002, it changed everything. All of a sudden, you could lend money to Ireland or Greece without having to worry about the Irish pound or the Greek drachma. They were all using the euro, which was managed by the Germans. So why not lend to one of these peripheral states of Europe and earn a little more interest? Things began to change fast. Interest rates in Spain and Ireland dropped. People started buying houses. Builders began putting them up all over the place. Prices were going up. It was similar to what happened in the US, but amplified. Ireland, for example, had always been a relatively poor country. But by 2007, rising house prices had turned the Irish – on paper – into the richest people in Europe. Bust follows boom. Always has. Always will. And when the bust came to Europe, its banks were holding a remarkable amount of mortgage debt. The trouble was, debtors didn't have enough income to pay it. In a panic, investors dumped bank stocks…figuring the banks would go bankrupt. But in stepped governments. They tried to halt the correction. They gave guarantees. They made commitments. The told the world that they would make sure senior lenders got their money. But how? The governments were deeply in debt themselves. But that didn't stop them. They went ahead – to varying degrees – and guaranteed bank debt. And so here we are. Ireland guarantees its bankers' debt. Europe guarantees Ireland's debt. And who guarantees Europe's debt? And why do they bother? Why not just let the speculators take their losses? "There will be no haircut on senior debt," said Olli Rehn, EU commissioner for economic and monetary matters. They made the decision to invest of their own free will. It's gone against them. Shouldn't they be permitted to learn from their mistakes? Why not? We have never heard a good explanation. And we have a suspicion that no one else ever has either. Instead, it is more of an implied threat…whispered…too terrible to think about. "Pssst… They're TOO BIG TO FAIL." Oh yeah? Why? What, exactly, would happen? Weak banks would fail. They'd be quickly taken over by stronger banks. Government debt that was too closely connected to the weak banks would fail too. Paper currency may even collapse, if people feared "the whole system" was coming down. Governments may have to come out with a gold-back currency – one that people could trust. Then, unable to borrow more, they would have to live within their means. And the surviving banks would know better than to take risks bigger than they could cover. Would that be so bad? Bill Bonner The European Debt Crisis at a Glance originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
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| Silver Wheaton Remains a Strong Buy Posted: 29 Nov 2010 10:59 AM PST Super Stock Screener submits: By Atif Masood Silver Wheaton (SLW) is the largest silver streaming company with a market capitalization of $12.20 billion. Over the last nine months, the company’s stock has posted a blockbuster performance (see Chart 1 below). Click to enlarge  Source: Yahoo Finance Future Profits Future profits will be driven by silver production volume, low cost of production and silver prices. Impressively, Silver Wheaton has been able to increase its silver production by approximately 49% over the last nine months. Increased production combined with rising silver prices have been the catalyst for the firm’s success. The company anticipates that by the end of 2013 its production will rise to 38 million ounces of silver and 59,000 ounces of gold. In comparison, this year’s forecasted production is 22 million ounces of silver and 28,000 ounces of gold. Silver Wheaton has already entered into 15 long term silver purchase agreements and two long term precious metal purchase agreements. Through these agreements the company will acquire silver production at $4 per ounce and gold production at $300 per ounce. Finally, metals prices could continue climbing if inflation does rise, as several economic pundits suggest. The implication is that Silver Wheaton’s margins could widen in coming years. Click to enlarge  Source: Yahoo Finance With the strong prospects of widening profit margins, Silver Wheaton should become a core portfolio holding. This also compliments the Buy recommendation from Super Stock Screener’s Ranking System, which is based on a separate set of criteria that are mainly financial statement anomalies. Therefore I recommend that investors continue to buy shares of Silver Wheaton. Disclosure: No positions. Complete Story »
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| Got Gold Report - Brief COT Update Posted: 29 Nov 2010 10:55 AM PST The CFTC Commitments of Traders (COT) Report was finally released at 15:30 this Monday afternoon, delayed from its usual Friday time by the Thanksgiving holiday here in the U.S. We will get to a brief update for Got Gold Report subscribers in just a moment, but first for everyone, just below is our closing table for the prior week updated to reflect today's COT data.
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| Posted: 29 Nov 2010 10:51 AM PST
A summary of the day's key developments in equities, vol, FX, rates, credit, and commodities. The biggest highlights of the day by far was that despite two POMOs, stocks closed once again red on a POMO day.
FX Focus from Talking Forex: EUR/USD Compiled by Goldman, Talking Forex and Zero Hedge
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| Posted: 29 Nov 2010 10:05 AM PST Gold chops higher on sovereign risk concerns The COMEX February gold futures contract closed up $3.20 Monday at $1367.50, trading between $1354.50 and $1370.00 November 29, p.m. excerpts: see full news, 24-hr newswire…
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| Gold, No Bearish Head and Shoulders Pattern Posted: 29 Nov 2010 10:03 AM PST In the past week I’ve seen more than a few mentions of the potential head and shoulders pattern in Gold. A head and shoulders pattern occurs when a market forms three peaks and the middle peak is noticeably higher than the left and right peaks. However, that is not enough for the pattern to play out as projected in the textbooks. There are other important characteristics of this pattern, which many technicians ignore or are unaware of.
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| Posted: 29 Nov 2010 10:00 AM PST Every time a frightening headline jolts the financial markets, investors flock to the relative "safety" of US Treasury bonds. But just how safe is a "safe" Treasury bond? The most insidious and dangerous part of the global debt story is hiding in plain sight. US Federal debt is now roughly 85% of American GDP, according to "official" figures. But after including the present value of future liabilities like Social Security and Medicare, US debt-to-GDP soars to nearly 500%. This kind of debt could push even the world's most powerful nation down the slippery slope to default. If China, Japan and other big foreign American creditors abandoned the Treasury market, bond prices would plunge and bond yields (which move inversely to price) would soar. Tellingly, bond prices have been dropping already, despite the Fed's massive $900 billion quantitative easing ($600 billion of new money and $300 billion from maturing securities) initiative designed to keep bond prices high and yields low. US Treasury debt was once regarded as the safest in the world, but that is changing faster than most realize. Earlier this month the yield on 30-year Treasury bonds climbed briefly above 30-year fixed-rate mortgage securities. This bizarre configuration still persists, which means that the market views John Q. Mortgage-Holder as a safer credit than Uncle Sam. This is not a bullish development. The Fed's announcement of its $600 billion quantitative easing (QE) program was a shot aimed squarely at China in retaliation for the Middle Kingdom's refusal to let the yuan float. In effect, the Fed is "exporting inflation" to China. Here's how: Low interest rates and a cheaper dollar encourage assets to flow into China, pushing up the prices of Chinese stocks, commodities and real estate. This causes China's workers – the source of cheap labor responsible for the bulk of China's growth – to demand higher wages, thereby reducing China's competitive advantage. Chinese CPI has accelerated to 4.4% on an annual basis and is quickly becoming a big problem. China's criticism of Helicopter Ben's latest round of quantitative easing is directly related to the inflation the US is now exporting to China. Ben has given them a choice: increase the value of your currency or inflate. Neither choice is very attractive. The Chinese need exports to maintain a high growth rate, currently 9.6% per year. They also need rapid growth to dampen potential domestic unrest. The vast majority of Chinese are rural and poor. Until these folks are integrated into the economy, China will remain trapped between the need for growth and the threat of growth-killing inflation. Like a cornered animal, this makes China potentially dangerous – especially when the policies of one of its biggest customers are fueling this inflation. The Chinese are already busy trying to counteract the inflationary effects of Ben Bernanke's QE2. They've raised both interest rates and reserve requirements at banks – the latter numerous times. They've also tried to slow the influx of foreign money through capital controls and to slow inflation through price controls. The one thing they haven't tried is selling their massive holdings of US Treasury debt. At almost $900 billion, China is the biggest holder of US Treasury securities. Selling some of this hoard would send some return fire Ben Bernanke's way. We can't think of a better way for China to rid oneself of dodgy US debt then to sell it right back to the American Federal Reserve. Should China start selling, bond prices could drop fast. Perhaps the best clue to the future of bond prices is the market itself. Bond prices began falling in August after Ben Bernanke's infamous Jackson Hole, Wyoming announcement of the Fed's QE program. Subsequent rallies have failed to take out old highs, establishing a new downtrend in the process. The proper way to trade a downtrend is to use corrective rallies as selling opportunities.
Short-selling US Treasury debt is difficult to do for individual investors. However, we can use the T-bond options traded on the CME to construct a trade with both limited risk and the potential for a nice return. Our 115-00 downside objective is not unreasonable, especially when you consider that this is precisely where T-bonds were trading back in April of 2010, just prior to the "flash crash" in stocks. Longer-dated options in bonds can be a bit thin, so patience may be required. Regards, Steve Belmont Time to Sell Bonds originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
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| Posted: 29 Nov 2010 10:00 AM PST The 5 min. Forecast November 29, 2010 01:54 PM by Addison Wiggin [LIST] [*] Giant bears gone wild... what it means for the U.S. dollar... and your standard of living... [*] Irish bailout terms set… stock market vigilante Dan Amoss on why a “dramatic debasement” of the euro is coming [*] Middle East intrigue: Iranian nuke scientists killed, Saudi king pushes for U.S. attack on Iran [*] The app-killer? Our tech maven Ray Blanco on the next Internet revolution [*] Readers sound off on South Korean ingrates and “effective” airline security [/LIST] While you and 78 million other American families gobbled down turkey over the long holiday weekend, China and Russia were engaged in their own unsavory activity on the other side of the planet: First, China and Russia will start bypassing the dollar in their trade with each other. Russian Prime Minister Vladimir Putin and Chinese Premier Wen Jiabao have agreed ...
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| Wikileaks Next Target: "A Big US Bank" Posted: 29 Nov 2010 09:54 AM PST
Honest distributor of leaked data or a clever PsyOps front, one can not deny that whatever it is, Wikileaks does share some unique information with the world (as to how it is interpreted is a different story). Yet for the most part, the bulk of the organization's recent exposures have focused on the US military and away from the private sector, and thus away from that which is really important in today's world: money (of a paper representation thereof). Which is we read with interest in the latest Julian Assange interview with Forbes' Andy Greenberg that next on the docket of Wikileaks disclosure is not some facebooky look into the gossip world of international espionage or the foreign service, but something far more tangible and relevant: "A Big US Bank." From the interview:
One needs to ask whether this is what we need: after all the US public already has enough public data to convict the executives of all the banks for numerous consecutive life sentences as is. It almost seems that nothing short of photographic evidence of some very (in)famous bank CEOs have underage sex while filming snuff movies, dressed in drag, killing puppies and recording their market manipulation conversations with Brian Sack will even rattle the Rip van Winkle formerly known as Eric Holder. But then again, we can hope... As for Assange's reason for coming to public with the bank exposition:
While we refuse to pass judgment on Assange's character, and his motivations, it appears that he may have finally figured out that to enact change in a country, you have to go not after the politicians or even the military industrial complex. After all both of those are puppets for the moneyed interests. One has to go after the very heart of the financial oligarchy. Money always has made the world go round, never more so than in the US currently. Perhaps Assange can redeem himself of all attacks on his persona if he does succeed in disclosing something that is beyond mere watercooler talk and actually leads to at least one major prosecution. After all, the US' own regulatory and enforcement mechanisms are corrupt beyond repair, and completely unable to do so on their own... (and yes, we certainly hope it is not Lehman Brothers, although the bank in question is most certainly going to get the Lehman treatment. The question is who will benefit from this disclosure, and now that Goldman's FICC desk is no longer the gold mine it used to be, there are some suggestions)
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| Stock Market Small Late Reversal...Nothing To Get Excited About... Posted: 29 Nov 2010 09:52 AM PST We saw the market come off its lows today. To many this will seem as if the selling is finally over. I'd be very careful with that type of thinking since all the market did was rally a bit after the dollar hit major resistance on its daily chart at the 200-day exponential moving average. At the same time its daily chart was hitting strong resistance, its oscillators got overbought on both the 60-minute and daily charts. So it was no real surprise to see the market find a reversal off the lows late day. None of this makes the market bullish short-term. It could lead to a small rally over the next day or so, but it's incredibly unlikely we'll see much to the upside here.
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| U.S. Dollar Rally, Gold and the Art of Speculation Posted: 29 Nov 2010 09:49 AM PST The rally in the dollar over the past few weeks serves as a good illustration of what it takes to be a good speculator. I can remember when I was new to the art of speculation. It was the early 1970s, and Richard Nixon, unilaterally and illegally, abolished the U.S. gold standard (or at least the slender, connection to gold which still existed at that time and was known as the Bretton Woods System).
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| IMF's gold sales slowed 40 pct in Oct. vs Sept. Posted: 29 Nov 2010 09:45 AM PST by Frank Tang and Lesley Wroughton
The IMF sold 628,000 ounces (19.5 tonnes) of gold in October as part of its previously announced open-market bullion sales plan, an IMF spokesman said on Monday. October's gold sales were sharply below the 1.04 million ounces sold in September, when nearly a third of the sale was going to Bangladesh. The IMF said late last year it would sell 403.3 tonnes or one-eighth of its total gold reserves to boost its lending resources. … Based on information from the IMF's Financial Statistics database, the spokesman said cumulative on-market sales of IMF gold to the end of October was 4.8 million ounces (148.6 tonnes). The sales were part of IMF plans announced in February to begin phased sales of 191.3 tonnes of gold in the open market this year. [source] RS Note: The original Reuters article has errors on the official sector totals. The following represents my corrections to the figures based on official IMF statistics. – Gold previously sold directly to central banks were 222 tonnes (of which, to India went 200 tonnes, to Mauritius went 2 tonnes, and 10 tonnes to Sri Lanka all during the initial off-market phase of sales reserved for official sector participation only, and then most recently 10 tonnes to Bangladesh during the open market phase of sales.)
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| Guest Post: Musing Of A Bank Run Posted: 29 Nov 2010 09:26 AM PST
Submitted by Joe W¨ges Musing of a Bank Run
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| Posted: 29 Nov 2010 09:19 AM PST "I should have bought that silver instead of beer." Share this:
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| European bond trouble worsens despite bailout for Ireland Posted: 29 Nov 2010 09:05 AM PST Contagion Strikes Italy as Ireland Bailout Fails to Calm Markets By Ambrose Evans-Pritchard http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8169225... Spreads on Italian and Belgian bonds jumped to a post-EMU high as the selloff moved beyond the battered trio of Ireland, Portugal, and Spain, raising concerns that the crisis could start to turn systemic. It was the worst single day in Mediterranean markets since the launch of monetary union. The euro fell sharply to a two-month low of E1.3064 against the dollar, while bourses slid across the world. The FTSE 100 fell almost 118 points to 5,550, while the Dow was off 120 points in early trading. ... 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 "The crisis is intensifying and worsening," said Nick Matthews, a credit expert at RBS. "Bond purchases by the European Central Bank are the only anti-contagion weapon left. It needs to act much more aggressively." Investor reaction comes as a bitter blow to eurozone leaders, who expected the E85 billion (L72 billion) package for Ireland agreed over the weekend to calm "irrational markets." While the Irish rescue removed the immediate threat of "haircuts" for senior bondholders of Irish banks, it leaves open the risk of burden-sharing from 2013 on all EMU sovereign bonds and bank debt on a "case-by-case" basis. Traders said bond funds have been dumping Club Med bonds frantically to comply with their "value-at-risk" models before closing books for the year. Yields on 10-year Italian bonds jumped 21 points to 4.61 percent, threatening to shift the crisis to a new level. Italy's public debt is more than E2 trillion, the world's third-largest after the United States and Japan. "The EU rescue fund cannot handle Spain, let alone Italy," said Charles Dumas, from Lombard Street Research. "We may be nearing the point where Germany has to decide whether it is willing take on a burden six times the size of East Germany or let some countries go." Italy distanced itself from trouble in the rest of southern Europe early in the financial crisis, benefiting from rock-solid banks, low private debt, and the iron fist of finance minister Giulio Tremonti. But the crisis of competitiveness never went away and the country has faced a political turmoil for weeks. If Portugal and Spain have to follow Ireland in tapping the EU's E440 billion bailout fund -- as widely feared after Spanish yields touched 5.4 percent -- this will put extra strains on Italy as one of a reduced core of creditor states. The rescue mechanism has had the unintended effect of spreading contagion to Italy, and perhaps beyond. French lenders have $476 billion of exposure to Italian debt, according to the Bank for International Settlements. In Dublin, Fine Gael, Labour, and Sinn Fein have all vowed to vote against the austerity budget in early December, raising doubts over whether the government can deliver on its promises to the EU. Echoing the national mood, Sinn Fein leader Gerry Adams said it was "disgraceful" that the Irish people should be reduced to debt servitude to foreign creditors of reckless banks. "The costs of this deal to ordinary people will result in hugely damaging cuts," he said. One poll suggested a majority of Irish voters favour default on Ireland's bank debt. Popular fury raises the "political risk" that a new government elected next year will turn its back on the deal. Premier Brian Cowen said there was no other option. "We are not an irresponsible country," he said, adding that Brussels had squashed any idea of haircuts on senior debt. Irish ministers say privately that Ireland is being forced to hold the line to prevent a pan-European bank run. There is bitterness over the EU-IMF loan rate of 5.8 percent, which may be too high to allow Ireland to claw its way out of a debt trap. Interest payments will reach a quarter of total revenues by 2014. Moody's says the average trigger for default in recent history worldwide has been 22 percent. "The interest bill is enormous. The whole process lacks feasibility," said Stephen Lewis, from Monument Securities. Olli Rehn, the European economics commissioner, said Ireland is in better shape than it looks, recording the EU's strongest growth in industrial output in September as the IT and drug industries boost exports. "Ireland's real economy has not gone away. It is flexible, open, has strong fundamentals, and has the capacity to rebound relatively rapidly. The Irish are smart, resilient, stubborn people, and they will overcome this challenge," he said. 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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| The Long and Short of Treasury Bond Yields Posted: 29 Nov 2010 09:00 AM PST "Prices are liars," says Passport Capital's investing ace, John Burbank. But even liars sometimes tell the truth. Trying to discriminate between the liars and the truth-tellers is every investor's most essential – and most difficult – task. Some bull markets are the real deal; others are simply bear markets that would fail a polygraph test. Consider some of the bull markets of the moment… Stocks, gold, bonds, grains, oil, Chinese real estate and Sarah Palin's popularity have all been in rally mode for months, if not years. Which ones are lying? Your California editor has no definitive answers, but he has a few heartfelt guesses… The truth-tellers: gold, grains and oil. The little-white-liars: stocks and Sarah Palin's popularity. The pathological liars: Chinese real estate and bonds. Jim Chanos, the insightful short-seller who has amassed a fortune by identifying – and betting against – fatally flawed companies like Enron and Tyco, considers the Chinese real estate market to be a disaster in the making. "It is Dubai times 1,000…or worse," says Chanos. "Bubbles are best identified by credit excesses, not valuation excesses. And there's no bigger credit excess than in China." By extension, Chanos believes Chinese stocks are better sold than bought. His arguments are persuasive. But today's edition of The Daily Reckoning will not address the validity or fallacy of the bull market in Chinese real estate. Instead, your editors will turn their skeptical gaze toward the bull market in bonds – and in particular, the bull market in Treasury bonds. The US Treasury market has been rallying – more or less – for the last 30 years. Back in 1981, when then-Federal Reserve Chairman, Paul Volcker, was battling to contain hyperinflation, 30-year bond yields topped 15%. Twenty-seven years later, during the crisis of 2008, the 30-year yield plummeted to an all-time low of 2.55%. Over this identical timeframe, one-year T-bill yields plummeted from a high of 14.93% to a low of 0.19%. That is a bull market! But a fascinating – and perhaps telling – divergence has developed between the 30-year yield and short-term Treasury yields: the 30-year yield is climbing, short-term yields are not…at least not very much. As a result the yield curve – i.e. the spread between long- and short-term rates – has reached its steepest level in three decades.
To express this divergence a little differently, the 30-year yield hit its all-time low two years ago, and has soared from 2.55% to 4.17%. The one-year yield hits its all-time low two weeks ago, and has barely budged since then. According to dusty, old economics textbooks, a rapidly steepening yield curve portends resurgent inflation. But according to the esteemed academic, Ben Bernanke, a steepening yield curve is a sign that his battle against deflation is "succeeding." We trust the textbooks more than the academic…especially because the academic insists on fighting an enemy that he, alone, can see. Most of the educated world considers the threat of deflation to be as real as the threat of fire-breathing dragons. Nevertheless, Ben Bernanke, our well-intentioned knight, draws his shimmering QE2 from its sheath and strides into the T-bond market to vanquish his mythological enemy. Ben's quest will certainly "succeed," but he will probably lop off the head of the bond market in the process. Remember, prices are liars. And in the Treasury bond market, the short end of the curve can lie much more easily than the long end, thanks to Bernanke's QE2 campaign. Because Bernanke's bond-buying quest is focusing on the short end of the curve, he is distorting prices. "The Federal Reserve's plan to buy $600 billion of US government debt will focus about 86 percent of its purchases in notes due in 2.5 years to 10 years," Bloomberg News relates, "leaving the so-called long bond as the security that most closely reflects expectations for inflation." "We live in a time in which market distortions are higher than usual," our colleague Chris Mayer observes. "This thought really hit me when I saw something that I probably never should have seen: For the first time ever, the rate on 30-year mortgages slipped below that of 30-year Treasury bonds. In effect, the market was saying that an individual looking to borrow against his home is a better credit risk than the US government." This "market distortion," Chris explains, is the direct result of the Fed's meddling at the short end of the curve. "The usual spread between 30-year mortgages and the 30-year Treasury bond has been around 1.3 percentage points in recent years," says Chris. "Therefore, assuming the Fed can't continue its manipulations forever, it's a good bet that mortgage rates will rise after QE2 wraps up." It's also a pretty good bet that long-term rates will continue rising as Bernanke's deflation-fighting escapade "succeeds." Eric Fry The Long and Short of Treasury Bond Yields originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
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| Posted: 29 Nov 2010 08:50 AM PST Support the Silver Movement – If everyone bought 1 ounce of silver, it would break the back of the banks that are being investigated for manipulating the silver market. MK: Is Scottsdale a good place to buy silver? Share this:
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| Silver can cure your portfolio, and maybe colds too Posted: 29 Nov 2010 08:47 AM PST Bacteria Turned into 'Silver Bullet' to Combat Flu By Richard Gray http://www.telegraph.co.uk/science/science-news/8068742/Bacteria-turned-... Bacteria turned into "silver bullet" to combat flu Scientists have discovered that they can attach tiny studs of silver to the surface of otherwise harmless bacteria, giving them the ability to destroy viruses. They have tested the silver-impregnated bacteria against norovirus, which causes winter vomiting outbreaks, and found that they leave the virus unable to cause infections. The researchers now believe that the same technique could help to combat other viruses, including influenza and those responsible for causing the common cold. ... Dispatch continues below ... 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 Professor Willy Verstraete, a microbiologist from the University of Ghent, Belgium, who unveiled the findings at a meeting of the Society for Applied Microbiology in London last week, said the bacteria could be incorporated into a nasal spray, water filters, and hand washes to prevent viruses from being spread. He said: "We are using silver nanoparticles, which are extremely small but give a large amount of surface area as they can clump around the virus, increasing the inhibiting effect. "There are concerns about using such small particles of silver in the human body and what harm it might cause to human health, so we have attached the silver nanoparticles to the surface of a bacterium. It means the silver particles remain small but they are not free to roam around the body." The bacteria used, Lactobacillus fermentum, is normally considered to be a "friendly" bacteria that is often found in yogurts and probiotic drinks that can aid digestion. The researchers found that when grown in a solution of silver ions, the bacteria extrete tiny particles of silver, 10,000 times smaller than the width of a human hair, which stud the outside of the cells. Although the bacteria eventually die as a result of the silver, they remain intact and the dead cells carrying the silver particles can then be added to solutions to create nasal sprays or handwashes. The researchers also found they could be fixed onto other surfaces such as water filters or chopping boards, which can harbour viruses. Norovirus typically causes 90 per cent of the gastroenteritis cases around the world and is normally spread through poor hygiene or in contaminated food. Last winter it affected an estimated one million people in England and Wales and forced many hospital wards to be closed. Influenza is a respiratory infection that normally spreads through the air when infected individuals sneeze and it is breathed in by those around them. Although there are some drugs to treat flu viruses, they are not commonly prescribed. Nasal sprays carrying silver-studded bacteria might provide an alternative, according to Professor Verstraete. Silver nanoparticles are already used in antimicrobial fabrics for sportswear clothing as they can help to reduce the growth of bacteria that can lead to the clothes smelling. But there have been widespread concerns about applying such tiny particles in ways that could lead to them getting inside the human body. Silver is already known to cause damage to the liver, kidneys, and lungs in large enough amounts and there are fears that the small size of the particles could allow it to pass into other parts of the body and cause harm. Professor Verstraete, however, claims that by attaching the silver to the outside of the Lactobacillus fermentum bacteria, the silver is fixed onto a larger object that cannot pass into other parts of the body. He is now working with drug giants Janssen and Johnson & Johnson to develop the technology to tackle other viruses. He also hopes to identify new types of bacteria that can pass through the gut while carrying the silver particles, allowing them to tackle infections there. Dr Michael Dempsey, a biologist at Manchester Metropolitan University who has studied the affects of silver nanoparticles on microorganisms, said: "A nanoparticle contains around 15,000 atoms of silver, according to some recent research from China on how they work. This means a high concentration of silver atoms come into contact with the micro-organism, punches a hole in its wall, and destroys it." 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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| How has gold been faring in non-dollar terms — and where next? Posted: 29 Nov 2010 08:37 AM PST In the past, jewellery demand has crumbled in the face of high and volatile prices; this time price-resistance seems to have dwindled and jewellery (and coin and bar) demand Is holding up. by Rhona O'Connell … The physical market has remained robust. Although scrap flows certainly picked up once gold was above $1,400 in the first part of November, there is also clear evidence of physical interest on price dips. Investors (which includes purchasers of "investment-grade" jewellery in East and South Asia and the Middle East, as well as coin and bar purchasers in Europe and North America) have taken a pragmatic view about the difference between "Price" and "Value" (our thanks to Oscar Wilde for this one) and are, in the main, keeping the faith with gold in anticipation of more financial and economic craters ahead of them. Demand in China has been particularly robust as investors hedge against increasing inflationary pressures and the government continues to streamline the domestic market. … Reports from Mumbai that Indian gold imports are expected to reach 750 tonnes this year, almost 200 tonnes more than in 2009, are not quite borne out by the demand figures released by the World Gold Council (using numbers compiled by GFMS Ltd), but they are not that far off…. Which brings us to the question of what gold has been doing in "local" currencies. …… while international dollar weakness enhanced gold's upward move, the story is, of course, by no means solely a tale of the dollar as risk-hedging is also key. Gold has made new highs in a number of currencies during November, including rupees, renminbi and Turkish lire, while in euro and Swiss franc terms the records were posted in June. Despite these high prices in important consuming nations, the overwhelming sentiment remains positive and it is arguable, therefore, that this recent bull market differs from a number of its predecessors…. [source]
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| Gold to $2,000, silver to $60 without world's collapse, Agnico CEO Boyd says Posted: 29 Nov 2010 08:36 AM PST 4:30p ET Monday, November 29, 2010 Dear Friend of GATA and Gold: In an interview today Sean Boyd, chairman and CEO of Agnico Eagle Mines Ltd., a longtime GATA supporter and one of the few gold and silver mining executives who has always believed in his products as money, tells Eric King of King World News that gold could go to $2,000 per ounce and silver to $60 or $75 per ounce without the collapse of civilization. Excerpts from the interview can be read at the King World News Internet site here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/29_S... Or try this abbreviated 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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| Gold to $2,000, silver to $60 without world's collapse, Agnico CEO Boyd says Posted: 29 Nov 2010 08:36 AM PST 4:30p ET Monday, November 29, 2010 Dear Friend of GATA and Gold: In an interview today Sean Boyd, chairman and CEO of Agnico Eagle Mines Ltd., a longtime GATA supporter and one of the few gold and silver mining executives who has always believed in his products as money, tells Eric King of King World News that gold could go to $2,000 per ounce and silver to $60 or $75 per ounce without the collapse of civilization. Excerpts from the interview can be read at the King World News Internet site here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/29_S... Or try this abbreviated 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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| Posted: 29 Nov 2010 08:24 AM PST by Shivom Seth … Total Indian gold imports for the first three quarters of the year have already exceeded last year's FY number by almost 100 tonnes and analysts expect the full year number to break 750 tonnes. … In October, we exceeded the 2009 import levels. Consumer demand has been so high and continues to be, despite the high prevailing price of gold," said Manikbhai Dolakia, a bullion trader, operating out of Zaveri Bazaar in South Mumbai. … The WGC report notes that in the third quarter, total domestic demand including jewellery and investment was 229.5 tonne against 179.6 tonne a year ago. This was despite the stunning 23% rise in the price of gold. [source]
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| Restoring the US Economy and a Sneak Peak at Our New Documentary Posted: 29 Nov 2010 08:02 AM PST As you may know, we've been filming a documentary on entrepreneurship in the bailout and stimulus period after the Panic of '08. We've been following, among other folks, the trials and tribulations of undersea salvage superstars Greg Stemm and Mark Gordon, in their quest to win the rights to market $500 million in coins they've recovered from a shipwreck off the coast of Gibraltar. As longtime readers of our various publications well know, the Odyssey story is pretty fascinating in its own right… But tomorrow you have a chance to catch part of the film production in action. Working with Dan Rodricks, host of "Midday", a show on WYPR, our local NPR station, we've invited a panel of "experts" to answer a timely question: How can we re-ignite the fires of entrepreneurship that made America "the most competitive economy in the world" for much of its history? Among the guests are two Vancouver favorites, president of Odyssey Marine Mark Gordon and venture capitalist Juan Enriquez. Mr. Enriquez, among other groundbreaking projects, helped finance the mapping of the human genome nearly a decade ago. Also joining us on the panel, University of Virginia professor Saras Sarasvathy, whose work details the process by which founder of the Grameen bank – a gentleman who won the Nobel Prize for developing a program of "micro-loans" to women in Bangladesh – overcame seemingly insurmountable roadblocks to achieve his dream of providing capital to the world's poorest citizens. The show airs live tomorrow between Noon and 2 PM EDT. If you want to listen in, here's where to go. We'll have cameras whirring away in the background. You just won't be able to see them. The podcast will be available after the program, if you're not available to stream it "live". Addison Wiggin Restoring the US Economy and a Sneak Peak at Our New Documentary originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."
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| COT Gold, Silver and US Dollar Index Report - November 29, 2010 Posted: 29 Nov 2010 07:51 AM PST COT Gold, Silver and US Dollar Index Report - November 29, 2010
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| Downstream Value in Rare Earths - Jon Hykawy Posted: 29 Nov 2010 07:44 AM PST The Gold Report submits: 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 and the companies he believes have the best chance to deliver them at a profit. Jon Hykawy, who was part of a panel at the recent Forbes and Manhattan Resource Summit in West Palm Beach, FL, says: Rare earth-equipped motors are the lightest, most efficient motors possible for powering these hybrid and electric cars in the future and that doesn't seem to be something that's going to change. Complete Story »
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| Posted: 29 Nov 2010 07:44 AM PST Wall Street Cheat Sheet submits: By Elliot Turner Since the dawn of this financial crisis, my portfolio has included an allocation to gold via the SPDR Gold Trust ETF (GLD). I viewed this as an important element of stability and protection and I believed in a longer-term story taking hold. Last week, I kissed the precious metal goodbye for now and this is my explanation as to my reasoning. Complete Story »
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The euro dropped as much as 1.3% today against the dollar on speculation that Spain and Portugal may be next to ask for aid. Gold futures for February delivery rose 0.2% on the Comex. "If your currency is declining in value, there's a move to get into something that will hold its value, and gold is that instrument at the moment," commented Frank Lesh, trader at FuturePath Trading LLC. Gold has gained 25% this year to date, and touched a record $1,424.30 an ounce in New York on Nov. 9…
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