Gold World News Flash |
- Richard Russell - Fight Against Deflation Will Kill the Dollar
- J.P. Morgan Getting Squeezed In Silver Market? (SLV, JPM)
- Paul Brodsky: Dollar will be devalued against gold at $8,000
- The Fed Has a $110 Billion Problem with New Benjamins
- Big Squeeze Is On In Gold and Silver
- Jim Rickards - Swiss Bank Client Denied His $40 Million in Gold
- Murray Pollitt: Kaput for Europe
- Oil Demand’s Triumphant Return
- You Have To Be Kidding Me...
- Get your gold out of the banking system, Rickards tells King World News
- Gold Seeker Closing Report: Gold Sets a New All-Time Closing High While Silver Tops $30
- In the News
- Real Estate Sales Reflect Waning Demand
- Hourly Action In Metals From Trader Dan
- Deciphering The Inflation Scorecard: Why Gold?
- Cheviot's gold conference in London Jan. 27 will have big GATA component
- Cheviot's gold conference in London Jan. 27 will have big GATA component
- Guest Post: Fact, Fiction And Finally The Fix
- AUDJPY-ES Divergence Heading Back To Sloppy Summer Levels
- Will The Gold Price Blast Through and Shoot Skyward? Silver Strongly Looks That It Intends To Move Higher
- Peter Brimelow: Is gold in a perfect (bullish) storm?
- Government Can’t Even Print Money Properly
- At YouTube, the 'Downfall' of gold and silver price suppression
- At YouTube, the 'Downfall' of gold and silver price suppression
- Inflation Expectation Tuesday: What’s Doctor Copper Predicting For the Markets?
- Silver outperforms and Bush tax cuts extended in very quiet trading session
- State-Run China Securities Journal Says China May Hike Rates Over The Weekend
- Gold extends run to record
- Dear Bernanke, Here's Your Guide To What's Really Making Gold Explode
- CBS Allows Fed to Spread Disinformation Unchallenged
- Ben Bernanke on 60 Minutes: Doesn't rule out QE3
- Ben Davies - Massive Short Squeeze at Hand in Gold Market
- “It is widely known that J.P. Morgan (JPM) holds a giant short position in silver.”
- Obama and GOP Make A Deal For the Great American Giveaway
- Keiser Report: Silver's Up – Keep it Up!
- Danger of Deflation Depends on Your Definition of Deflation
- First Reggae Crash JP Morgan Buy Silver vid – best watched stoned on quality sensimilla (*)
- MONDAY Market Excerpts
- Gold futures surge to record $1,429.40 on currency concerns
- Brodsky on Gold
- Gold hits new all time high . . . Take a deep breath, close your eyes and listen . . .
- BEST VIDEO OF THE DAY AWARD!!!! Oh yea, have to give this one 3 stars (***)
- The 3475% Gold Analysis Difference Between Pro...
- Gold Daily and Silver Weekly Charts
- WikiLeaks and the National Debt
- Will Year-End Tax-Loss Selling Have an Impact on Gold, Silver Investors?
- Fiscal Discipline and Unintended Consequences
- Riding the Commodity Bull
- Rick Rule: Riding the Commodity Bull
- More Gold Gains Ahead
| Richard Russell - Fight Against Deflation Will Kill the Dollar Posted: 06 Dec 2010 10:14 PM PST Finally, I like the long-term fundamentals of gold better than I like the long-term fundamentals for the Dow. The Dow is denominated in dollars, and frankly, I'm very concerned about the future of the dollar. The actual number of dollars has been expanding, year after year, and dollar creation has even been accelerating recently. The more dollars being created, the less the dollar will be worth in purchasing power. And that, in a nutshell, is the reason I like gold. The fight against deflation is bashing the dollar, and if it continues it will literally kill the dollar.
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| J.P. Morgan Getting Squeezed In Silver Market? (SLV, JPM) Posted: 06 Dec 2010 10:01 PM PST It is widely known that J.P. Morgan (NYSE: JPM) holds a giant short position in silver. Furthermore, some observers are accusing the bank of acting as an agent for the Federal Reserve in the market - every tick higher in the price of silver undermines confidence in the U.S. Dollar. A lower silver price helps keep the relative appeal of the U.S. dollar and other fiat currencies high.
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| Paul Brodsky: Dollar will be devalued against gold at $8,000 Posted: 06 Dec 2010 09:58 PM PST Paul Brodsky of QB Asset Management in New York made a comprehensive case for investing in gold and predicted that the U.S. Federal Reserve eventually will devalue the dollar against a gold price of as much as $8,000. Brodsky's presentation has just become available to GATA and you can find the text of it here:
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| The Fed Has a $110 Billion Problem with New Benjamins Posted: 06 Dec 2010 09:29 PM PST According to a person familiar with the matter, the bills are the most costly ever produced, with a per-note cost of about 12 cents—twice the cost of a conventional bill. That means the government spent about $120 million to produce bills it can't use. On top of that, it is not yet clear how much more it will cost to sort the existing horde of hundred dollar bills.
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| Big Squeeze Is On In Gold and Silver Posted: 06 Dec 2010 06:01 PM PST Gold and Silver swept all obstacles aside Monday, pushing already steep rallies into hyperdrive. Even a firm dollar failed to check the buying spree. At the opening bell, we were looking for Comex February Gold to surge to at least $1425; however, by day's end it had done even better, rallying $24 to peak intraday at 1429.40. And although March Silver fell 11 cents shy of our minimum projection of 30.465, there was such power behind the nearly $1.00 rally that the target seems all but guaranteed to be reached during the night session.
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| Jim Rickards - Swiss Bank Client Denied His $40 Million in Gold Posted: 06 Dec 2010 05:00 PM PST  In an exclusive King World News interview, Jim Rickards told KWN that he was informed that a client of a major Swiss bank requested to take his one ton of physical gold that he owned outright out of the bank, and the bank would not give him his gold. The client had to use his lawyers and threaten to go public in order to eventually get his gold.
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| Murray Pollitt: Kaput for Europe Posted: 06 Dec 2010 04:31 PM PST 12:27a ET Tuesday, December 7, 2010 Dear Friend of GATA and Gold: In his latest market letter, Murray Pollitt of Pollitt and Co. in Toronto reflects on the bailout frenzy in Europe and the future of the European Union and the euro. His letter is titled "Kaput" and GATA is grateful to be able to post it here: http://www.gata.org/files/MurrayPollitt-12-01-2010.pdf CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Opportunity in the gold coin market Swiss America Trading Corp. alerts GATA supporters to an opportunistic area of the gold coin market. While the gold bullion market has been quite volatile lately and as of November 29 gold has risen only $7 per ounce over the last month, the MS64 $20 gold St. Gaudens coin has risen about 10 percent in the same time. The ratio between the price of these coins and the price of gold is rising. If you'd like to learn more about the ratio and $20 gold coins, Swiss America can e-mail you a three-year study of it as well as other information. Swiss America also can provide a limited number of free copies of "Crashing the Dollar," a book written by Swiss America's president, Craig Smith. For information about the ratio between the $20 gold pieces and the gold price and for a free copy of "Crashing The Dollar," please call Swiss America's Tim Murphy at 1-800-289-2646 X1041 or Fred Goldstein at X1033. Or e-mail them at trmurphy@swissamerica.com and figoldstein@swissamerica.com. Join GATA here: Yukon Mining Investment e-Conference http://theyukonroom.com/yukon-eblast-static.html Vancouver Resource Investment Conference http://cambridgehouse3.com/conference-details/vancouver-resource-investment-conference-2011/15 Cheviot Asset Management Sound Money Conference Phoenix Investment Conference and Silver Summit Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Prophecy Drills 71.17 Metres of 0.52 percent NiEq Prophecy Resource Corp. (TSX-V: PCY) reports that it has received additional assays results from its 100-percent-owned Wellgreen PGM Ni-Cu property in the Yukon, Canada. Diamond drill holes WS10-179 to WS10-182 were drilled during the summer of 2010 by Northern Platinum (which merged with Prophecy on September 23, 2010). WS10-183 was drilled by Prophecy in October 2010. Highlights from the newly received assays include 71.17 metres from surface of 0.52 percent NiEq (0.310 percent nickel, 0.466 g/t PGMs + Au, and 0.233 percent copper) and ended in mineralization. For more drill highlights, please visit: http://prophecyresource.com/news_2010_nov29.php
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| Oil Demand’s Triumphant Return Posted: 06 Dec 2010 04:23 PM PST Lost in the shuffle of the European debt woes, a second round of quantitative easing and gold's record run has been the resurgence in global demand for oil. Global oil demand is strong; in fact, it has never been stronger. Oil demand during the third quarter of this year was up 3.7 percent, the fourth-straight quarter of growth.
Who's behind this increase in demand? Emerging markets. You can see from the chart that global oil consumption has bounced well off of early 2009 lows and now exceeds pre-crisis consumption levels. Consumption in the developed world, represented in the chart by the Organization for Economic Co-Operation and Development (OECD) countries, has been flat for the past 18 months and remains roughly 8 percent below 2007 levels.
While developed world demand has flatlined, emerging markets have captured a significant share of global oil consumption over the past three years—narrowing the usage gap between the two from roughly 12 million barrels per day in 2007 to 4 million barrels per day currently. This week, Dr. Fatih Birol of the International Energy Agency presented his bullish long-term outlook for oil demand to analysts at Barclays, predicting that global energy demand will grow by 36 percent between 2008 and 2035. Birol says China and India will lead the way but the Middle East won't be far behind. He gave three reasons for the demand leadership of emerging markets: Economic growth, population increases and heavy fuel subsidies in many countries will give consumers a buffer from rising oil prices. Chinese oil demand is expected to grow at the fastest rate of any country in the world at 10.4 percent this year. Figures on China's share of global oil demand growth range between 25-40 percent but there's no question that there is still substantial room for Chinese demand to grow. Fabulous growth in auto demand will likely be the catalyst for China. Birol says that 700 out of every 1,000 people in the U.S. and 500 out of every 1,000 in Europe own cars today. In China, only 30 out of 1,000 own cars and Birol thinks that figure could jump to 240 out of every 1,000 by 2035. When Japan hit $5,000 of GDP per capita, oil demand grew at a 15 percent annual rate for the next ten years, according to oil-industry consultant firm PIRA. It was a similar story for South Korea. China reached the $5,000 GDP per capita mark in 2007 but oil demand has only grown at a 7 percent compounded annual growth rate. This highlights China's superior growth potential if China is to catch up to historical patterns. Macquarie expects global oil demand to grow by 2.3 percent on a year-over-year basis in 2011, which the firm says would be met with drawdowns in oil stockpiles, higher prices and an OPEC response. However, OPEC's ability to control the oil market is in a precarious state. Ten of the cartel's 12 countries will produce less oil in 2011 than they did in 2008, with Iraq and Nigeria the only countries expected to see production increases. OPEC still controls 40 percent of the world's oil supply but its spare capacity peaked in the early 1980s and is projected to fall an additional 2 million barrels per day in 2011, leaving the cartel with little ability to manipulate production as demand continues to grow. Rising demand from emerging markets and a lack of maneuverability by OPEC should result in a very tight global oil market. We expect oil prices to continue trending upward throughout 2011. Regards, Frank Holmes, P.S. For more updates on global investing from me and the U.S. Global Investors team, visit my investment blog, Frank Talk. Oil Demand's Triumphant Return 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: 06 Dec 2010 04:21 PM PST The Washington Post reported this evening that Obama and congressional Republicans have reached an agreement for the extension of all tax breaks set to expire on Dec. 31, AND a 13 month extension of jobless benefits. I believe now that those who qualify for jobless bennies can now get them for 3 years and 7 months. What the heck is the difference between welfare and unemployment insurance? Seriously. And how do our policy-makers propose to pay for this? Oh wait, Bernanke was on 60 Minutes last night explaining how our Government's excessive spending will be funded: MORE MONEY PRINTING. It just amazes me when I still get comments like "isn't gold too high to buy now?" LOL. Let's see, would I rather hold something that has been used as honest currency for the better part of 5,000 years or a piece of paper that loses value everyday because its supply increases everyday. As long all global fiat currencies continue to increase rapidly in supply, it will take more of each of those currencies to buy an ounce of gold. It's really that simple. The bull market in gold/silver will be over when both metals are reinstated as the global reserve currency. This will likely entail a significant upward revaluation of the price of gold/silver to a level which is representative of the marginal level of global wealth. I've seen estimates from well-respected analysts of what this price level could be that range from $8,000-$38,000/oz. Here are some great quotes I wanted to share. The first one was sent to me by a reader of this blog: "...silver and gold have their value from the matter itself, they have first this privilege; that the value of them cannot be altered by the power of one nor of a few Commonwealths; as being a common measure of the commodities of all places. But base money may easily be enhanced or abased." - Thomas Hobbes "Building gold as the basis of solvency has been used through history...Having a corresponding amount of solvency is a necessary precondition and indispensible safeguard in the long-term strategy for the internationalization of the yuan," -Xia Bin, advisor to the Peoples Bank of China "The printing of money makes gold more valuable. You don't have to be a genius to figure this out...I think gold is the reserve currency today. There is not a currency in the world that it hasn't appreciated against by at least 300 per cent. And it has beaten every stock market. You can't even rent a safety deposit box in Germany because they are all full of gold and silver." Eric Sprott, Srott Asset Management. 
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| Get your gold out of the banking system, Rickards tells King World News Posted: 06 Dec 2010 04:17 PM PST 12:14a ET Tuesday, December 7, 2010 Dear Friend of GATA and Gold: Interviewed by King World News, market analyst and scholar Jim Rickards of Omnis Inc. says he knows of a gold investor who recently had to struggle for a month with a Swiss bank to arrange return of his gold -- not a futures contract receipt but real gold that had been put on deposit at the bank. Only the gold owner's threat to restore to legal action and the news media pried the gold loose, Rickards says. He concludes that the bank didn't have the gold it should have had and that this shorting is endemic to the Western banking system. He advises gold investors to use "private non-bank storage" for their gold to get it outside the banking system and expects that at some point governments may seek to freeze gold in the banking system. Rickards argues that the United States will return to some sort of gold standard in a deliberate and studied way or will be forced to return to gold with chaotic and disruptive suddenness. A non-deflationary gold price then likely will be in the many thousands of dollars per ounce, Rickards says. Rickards also rates Federal Reserve Chairman Ben Bernanke a bigger threat to national security than the terrorist Osama bin Laden, insofar as bin Laden is on the run while Bernanke still stills at the pinnacle of power. The interview with Rickards is 21 minutes long and you can listen to it at King World News here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/12/7_J... Or try this abbreviated link: CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Join GATA here: Yukon Mining Investment e-Conference http://theyukonroom.com/yukon-eblast-static.html Vancouver Resource Investment Conference http://cambridgehouse3.com/conference-details/vancouver-resource-investment-conference-2011/15 Cheviot Asset Management Sound Money Conference Phoenix Investment Conference and Silver Summit 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 Drills 71.17 Metres of 0.52% NiEq Prophecy Resource Corp. (TSX-V: PCY) reports that it has received additional assays results from its 100-percent-owned Wellgreen PGM Ni-Cu property in the Yukon, Canada. Diamond drill holes WS10-179 to WS10-182 were drilled during the summer of 2010 by Northern Platinum (which merged with Prophecy on September 23, 2010). WS10-183 was drilled by Prophecy in October 2010. Highlights from the newly received assays include 71.17 metres from surface of 0.52 percent NiEq (0.310 percent nickel, 0.466 g/t PGMs + Au, and 0.233 percent copper) and ended in mineralization. For more drill highlights, please visit: http://prophecyresource.com/news_2010_nov29.php
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| Gold Seeker Closing Report: Gold Sets a New All-Time Closing High While Silver Tops $30 Posted: 06 Dec 2010 04:00 PM PST Gold extended last Friday's late after hours strength and rose to as high as $1418.68 in Asia before it fell back to $1410.10 in London, but it then rose to a new session high of $1420.64 by late morning in New York and ended with a gain of 0.73% at a new all-time closing high. Silver climbed to $29.298 in Asia before it fell back to $29.457 in London, but it then rose to a new 30-year high of $30.058 in New York and ended with a gain of 2.34%. Both metals have risen to new highs in todays after hours access trade as well.
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| Posted: 06 Dec 2010 02:52 PM PST View the original post at jsmineset.com... December 06, 2010 07:42 PM My Dear Friends, Gold is clearly on its way to $1,650 and beyond. I have told you for many years that there was no PRACTICAL solution to the problems created by OTC derivative manufacturers and distributors namely our beloved "banksters." By practical I meant a solution that itself would not cause more dislocations than the problem to which it was applied already has. Now you see political realities both in taxation and quantitative easing. Friends, there is no practical way out of this problem – none. We are going to inflate and spend as the entire Western world financial/political managers again try to kick the can further down the road. No further proof is required. Regards, Jim The New York Times December 6, 2010, 6:26 pm Deal on Bush Tax Cuts Trims Payroll Levy By JACKIE CALMES AND DAVID M. HERSZENHORN President Obama closed in on a deal with Congressional Republicans on Monday to e...
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| Real Estate Sales Reflect Waning Demand Posted: 06 Dec 2010 02:52 PM PST View the original post at jsmineset.com... December 06, 2010 07:32 PM I’ve (Real Retail Sales) Fallen And Cannot Get Up The real up trend in retail sales broke in 2007. For lack of a better description, they have fallen and cannot get up since 1999. This trend, reflective of waning demand, deteriorating credit creation, and currency devaluation, cannot be repaired by stimulus or QE. S&P Retail Index (Retail) to Gold Ratio: Survey Says: Holiday Spending Beats Expectations The numbers are in for Black Friday, Small Business Saturday and Cyber Monday — and they are looking good for retailers. By Rieva Lesonsky Posted 12/ 6 10 at 12:30 PM | I did my share of helping the economy by participating in the Triple Crown of holiday shopping: Black Friday, Cyber Monday and the new Small Business Saturday. But what about the rest of you? Overall, how did sales stack up? Here’s a closer look at how retailers are faring this holiday season. Black Friday Rakes in th...
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| Hourly Action In Metals From Trader Dan Posted: 06 Dec 2010 02:52 PM PST View the original post at jsmineset.com... December 06, 2010 11:47 AM Silver was the star of the precious metals complex today as it shot higher in the face of a stronger Dollar and a mixed performance by the overall commodity sector. Its strength helped to pull gold higher particularly when it cleared $30 for the first time since many moons ago. I have been receiving emails from some detailing the efforts to squeeze Morgan. If you track the daily open interest figures without looking at the larger picture, it can be oftentimes a bit unclear as to what is going on, mainly because the actions of spreaders can cloud the short term picture. It is revealing, however, when you look at the weekly silver chart and compare that to the COT chart over the same timeframe. The big commercial-end user- producer class peaked its net short position in early September as did the net long position of the managed money (hedge funds). Since that time silver has rallied nearly $9 excluding the last f...
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| Deciphering The Inflation Scorecard: Why Gold? Posted: 06 Dec 2010 01:44 PM PST Hard Assets Investor submits: By Brad Zigler Each Friday, the Desktop is given over to an Inflation Scorecard - a checklist of indicators that track the strength of the U.S. dollar. Complete Story »
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| Cheviot's gold conference in London Jan. 27 will have big GATA component Posted: 06 Dec 2010 01:41 PM PST 9:38p Monday, December 6, 2010 Dear Friend of GATA and Gold (and Silver): Cheviot Asset Management's Sound Money Conference, to be held at Guildhall in London (http://www.guildhall.cityoflondon.gov.uk/) on Thursday, January 27, 2011, will have a big GATA component. In addition to your secretary/treasurer, speakers will include GoldMoney founder and GATA consultant James Turk; GATA supporter, Gold Rush 21 conference speaker, and Mexican Civic Association for Silver President Hugo Salinas Price; international journalist, provocateur, and gold and silver price suppression scheme scourge Max Keiser; and commodities trader and GATA whistleblower to the U.S. Commodity Futures Trading Commission Andrew Maguire (or at least his body double). A two-minute video in which Cheviot partner Ned Naylor-Leyland announces the conference can be found at the Cheviot Internet site here: http://www.cheviot.co.uk/news/video/2010/12/the-cheviot-sound-money-conf... The conference invitation can be found here: http://www.gata.org/files/CheviotSoundMoneyConferenceInvite.pdf Admission to the conference will be free but reservations are required. They may be made by writing to Cheviot's Bernadette Duffey here: Bernadette.Duffey@cheviot.co.uk Or to Cheviot's Naylor-Leyland here: Ned.Naylor-Leyland@cheviot.co.uk 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 Join GATA here: Yukon Mining Investment e-Conference http://theyukonroom.com/yukon-eblast-static.html Vancouver Resource Investment Conference http://cambridgehouse3.com/conference-details/vancouver-resource-investment-conference-2011/15 Cheviot Asset Management Sound Money Conference Phoenix Investment Conference and Silver Summit 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 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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| Cheviot's gold conference in London Jan. 27 will have big GATA component Posted: 06 Dec 2010 01:41 PM PST 9:38p Monday, December 6, 2010 Dear Friend of GATA and Gold (and Silver): Cheviot Asset Management's Sound Money Conference, to be held at Guildhall in London (http://www.guildhall.cityoflondon.gov.uk/) on Thursday, January 27, 2011, will have a big GATA component. In addition to your secretary/treasurer, speakers will include GoldMoney founder and GATA consultant James Turk; GATA supporter, Gold Rush 21 conference speaker, and Mexican Civic Association for Silver President Hugo Salinas Price; international journalist, provocateur, and gold and silver price suppression scheme scourge Max Keiser; and commodities trader and GATA whistleblower to the U.S. Commodity Futures Trading Commission Andrew Maguire (or at least his body double). A two-minute video in which Cheviot partner Ned Naylor-Leyland announces the conference can be found at the Cheviot Internet site here: http://www.cheviot.co.uk/news/video/2010/12/the-cheviot-sound-money-conf... The conference invitation can be found here: http://www.gata.org/files/CheviotSoundMoneyConferenceInvite.pdf Admission to the conference will be free but reservations are required. They may be made by writing to Cheviot's Bernadette Duffey here: Bernadette.Duffey@cheviot.co.uk Or to Cheviot's Naylor-Leyland here: Ned.Naylor-Leyland@cheviot.co.uk 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 Join GATA here: Vancouver Resource Investment Conference Cheviot Asset Management Sound Money Conference Phoenix Investment Conference and Silver Summit 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 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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| Guest Post: Fact, Fiction And Finally The Fix Posted: 06 Dec 2010 01:37 PM PST
Submitted by Davos Sherman Okst Fact, Fiction And Finally The Fix Fiction: In this 60 Minutes clip Bernanke tells Scott Pelley, “The other concern I should mention is that inflation is very, very low…” Fact: There is massive inflation!
Fiction: ‘Unemployment is 9.8%, if we didn’t take these drastic measures it would be 25% like it was during the Great Depression.’ Fact: Unemployment is, once again at “depressionary” levels - pushing 25%.
Fiction: In this video Bernanke says about the biggest bubble in the world (the housing bubble) which he never saw and still denies: “I guess I don’t buy your premise it’s a pretty unlikely possibility we’ve never had a decline in house prices on a nationwide basis.” “…never had a decline in house prices on a nationwide basis.” Fact: Housing prices have declined on a nationwide basis.
Hearing The Bernanke fiction that he is 100 percent certain he can stop hyperinflation was as reassuring as hearing his continued commitment to continue Quantitative Easing. I know hyperinflation is ugly. I know stopping this train wreck years ago would have been the correct thing to do. The fact is – we are beyond any fix. Things like cutting government spending will only increase unemployment. We are bankrupt when: What we take in with taxes doesn’t pay the bills. When we borrow and that and the taxes still don’t pay the bills. Now we counterfeit so we don’t default. Game over! I know re-valuing the dollar would have been faster and less painful. But the facts are that we have a professor who studied the Great Depression and if he doesn’t know that housing prices declined, or that there is massive inflation now, or that unemployment is at “depressionary” levels - then we have to realize that correcting what he messed up isn’t going to happen. The guy is either working for an elite few – or, more likely – he’s an economic imbecile. Whatever the case is – I’m happy. The only way the economy is going to get fixed is if consumers (who make up 67% of GDP) consume. Right now consumers are either maxed out, working part time hours in their full time positions, or they are unemployed. Consumers have shed 600 billion in debt, 20 billion was of that was willingly. On a governmental level: Our debt – on and off balance sheet will choke the life out of any prosperity. The clock MUST be reset. That is the ONLY fix. The Bernanke just pulled the reset lever. Gold and silver are still affordable. If you missed my read “Nobel Award in Darwin Economics” this chart should explain a lot.
If you think there will be deflation I’d encourage you to look at money as seashells and look at The Bernanke as the gold miners on pages 96 & 97 of “Mean Markets and Lizard Brains” book. Basically it explains that the habitants of the highlands of Papa New Guinea used seashells as a currency. Gold miners from Australia wanted to hire them to mine gold, the highlanders didn’t want paper money - they wanted shells. Plane loads of shells were flown in. Supply increased, their purchasing power crumbled, they experienced hyperinflation. Our dollar will be re-valued vis-`-vis unstoppable hyperinflation. Old debt will be washed away. Consumers will once again be able to consume. In Summary: My faith in the 5Gs: (G*(religious edit)d, Gold, Guns, Grub & The Government Will Continue to Screw It Up) remains strong.
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| AUDJPY-ES Divergence Heading Back To Sloppy Summer Levels Posted: 06 Dec 2010 01:29 PM PST
The current divergence in the AUDJPY-ES pair is reminding us of the great divergences seen in the during the summer just after the temporary DE Shaw stat arb desk unwind threw every correlation pair out of whack for hours. And with the telecom and commodity subsectors of the CSI undergoing a drubbing, we are confident that the AUD, especially following the earlier lack of action by the RBA, will continue to face ongoing weakness. And sooner or later that means that dollar funded shorts (USDJPY/AUDUSD) which have been the primary source of purchasing power in the US market, will need to be unwound. In the meantime, a compression trade here seems quite attractive.
And here is Bloomberg discussing the possibility of Chinese tightening, noted here earlier:
Of course, it wouldn't be the mainstream media if it didn't try to somehow paint monetary tightening as a positive (!) event. From Dow Jones:
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| Posted: 06 Dec 2010 01:08 PM PST Gold Price Close Today : 1422.70 Change : 9.90 or 0.7% Silver Price Close Today : 29.705 Change : 0.464 cents or 1.6% Gold Silver Ratio Today : 47.89 Change : -0.421 or -0.9% Silver Gold Ratio Today : 0.02088 Change : 0.000182 or 0.9% Platinum Price Close Today : 1722.20 Change : -7.60 or -0.4% Palladium Price Close Today : 755.25 Change : -9.00 or -1.2% S&P 500 : 1,223.12 Change : -1.59 or -0.1% Dow In GOLD$ : $165.96 Change : $ (1.43) or -0.9% Dow in GOLD oz : 8.028 Change : -0.069 or -0.9% Dow in SILVER oz : 382.50 Change : -0.73 or -0.2% Dow Industrial : 11,362.19 Change : -19.90 or -0.2% US Dollar Index : 79.57 Change : 0.242 or 0.3% The GOLD PRICE high today was $1,426.70 a double top with the 9 November intraday top at $1,424.40. Does that constitute a double top, or will gold blast through this price and shoot skyward? The market will have to tell us. The RSI is high, but not nearly as overbought as it was in September and October. The MACD is headed up and has plenty of room to climb. Boundaries are $1,426.70 on the upside and $1,380 on the downside. On the Comex gold made a new high close at $1,415.30 (up $9.90) higher than November 9th's $1,406.80. The vulnerable area is $1,410. In overnight trading and most of today that $1,410 was the unfailing backstop. Cracking that, then $1,405 would put gold on the defensive. The SILVER PRICE ran wild today. Comex closed up 46.4c at 2970.5c, but in the aftermarket it is trading at 3011c. The floor is at 2950c, so silver must not fall past that. Upside, your guess is as good as mine: 3060c, 3450c, 3950c? Pick a number. Yet silver share's gold's vulnerability. Although today it closed above the previous intraday high of 2933c, nothing says that cannot be a double top. True, looking at the chart from the November low at 2502c until today, silver strongly impresses upon my mind that it intends to move higher. By the way, because the GOLD SILVER RATIO at 47.25 is relatively low now, you ought to be favouring gold in new buying. Whether the peak here, or with gold at $1,600, the reaction will come and on that reaction gold will buy many more ounces of silver than it does today, and offer us an opportunity to swap gold for silver and reap more ounces. Numerous readers have asked me about using GOLDMONEY.COM to swap. Sure, do it, swap your GoldMoney.com gold for GoldMoney.com silver, and I would do it soon. Gold Listening to myself I realize that I seem to be fighting an uptrend. Maybe, maybe, but this rally is flashing so many warning signs -- long life, height, speed of rise, dropping physical silver premiums, MACD and RSI (for silver) very high -- that it disturbs my tranquillity and leaves my complacency chastened and smarting. I've been planning four years to make a swap, and today the ratio hit my target of 47.50 to swap silver for gold. I reckoned not with wholesale dealers. Clearly they have absorbed a lot of silver in recent weeks, and refineries are backed up until February. So over the weekend they dropped the bid on US 90% silver coin. Worse, I have loads of customers who are lined up to swap silver for gold, yet I can't get anybody to buy it in the quantities I have for sale. Oh, I was able to do the IRA swaps, because they have only bullion and the spread didn't widen on bullion. I thought I had covered every base and planned for every quirk, but this one slapped me in the face like a sprung tree branch. I think we will just have to swallow the poor price and execute the trades anyway, because what we are seeing in physical silver -- sharply lower premiums and large dealers reluctant to buy -- argues for a top, not a continuation. The US DOLLAR INDEX today is trading at 79.571, up 24.2 basis points (0.31%), with the ratty euro and the raggedy yen down about 0.40%. The dollar bounced up after colliding with its 20 DMA (79.28), and looked right pert. Euroland, which a couple of weeks ago was synonymous with The Promised Land, now suffers rolling paranoia as the crisis monkey jumps from bankrupt country to bankrupt country. Will Portugal crash next? Or Spain? Or Italy? Or Hungary? With the dollar, at least, if California goes hooves up in bankruptcy, the dollar won't fly apart. If Ireland or Portugal turns white side up, who knows whether the Euro will survive? On the one hand, somebody must pay off all the bonds and paper the German banks hold, on the other, the German people don't like bailing out everybody else (assuming they know not that the Euro bailout actually bails out their banks, and not Ireland or Portugal). STOCKS have stalled. Dow today closed 11,362.19, down 19.90, while the S&P scratched 1.59 to 1,223.12.. If silver and gold are dangerous right now, stocks are lethal, the puffer fish sushi ("fugu") of investments. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2010, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't. 
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| Peter Brimelow: Is gold in a perfect (bullish) storm? Posted: 06 Dec 2010 12:55 PM PST By Peter Brimelow http://www.marketwatch.com/story/is-gold-in-a-perfect-bullish-storm-2010... NEW YORK -- A good week for gold -- especially because China finally seems to be chiming in. On Friday, gold for February delivery finished at $1,406.20, only $3.10 below the November 9 record close, having risen $42.20 or 2.94% on the week. The gold shares responded with enthusiasm, with the Gold Bugs Index (HUI) leaping nearly 8%. In recent years, gold shares have not always conformed bullion's action. When it happens, it's generally regarded as bullish. Significantly, this was not just a move in U.S. dollars. In fact, gold in sterling, euros, and yen hit record highs during the week. Of course the week also saw plenty of alarming economic and financial news from both Europe and America, all tending to cast doubt on the commitment of the European Central Bank and the Fed to the integrity of their respective currencies. ... Dispatch continues below ... ADVERTISEMENT Opportunity in the gold coin market Swiss America Trading Corp. alerts GATA supporters to an opportunistic area of the gold coin market. While the gold bullion market has been quite volatile lately and as of November 29 gold has risen only $7 per ounce over the last month, the MS64 $20 gold St. Gaudens coin has risen about 10 percent in the same time. The ratio between the price of these coins and the price of gold is rising. If you'd like to learn more about the ratio and $20 gold coins, Swiss America can e-mail you a three-year study of it as well as other information. Swiss America also can provide a limited number of free copies of "Crashing the Dollar," a book written by Swiss America's president, Craig Smith. For information about the ratio between the $20 gold pieces and the gold price and for a free copy of "Crashing The Dollar," please call Swiss America's Tim Murphy at 1-800-289-2646 X1041 or Fred Goldstein at X1033. Or e-mail them at trmurphy@swissamerica.com and figoldstein@swissamerica.com. Australia's usually very sober webzine The Privateer was even moved to make a joke: "On Sunday, December 5, the venerable CBS 'current affairs' program 60 Minutes will be airing an interview with Fed Chairman Ben Bernanke. We suggest a suitable intro would be the helicopter scene in 'Apocalypse Now,' complete with the full soundtrack." That's a reference to Bernanke's famous graphic endorsement of inflationary policies. However, the news that most excited the gold bugs came not from the Atlantic basin but from China, and may not yet have been fully appreciated by the market. The head of the Shanghai Gold Exchange told a conference there that Chinese imports of gold for 2010 through October were 209.7 tonnes, compared to 45 tonnes for the whole of 2009. This is a bombshell -- and not just because China has never disclosed its gold imports before. One of the correspondents at Bill Murphy's LeMetropoleCafe website said that he had "always been skeptical of the Chinese demand story in world gold-price formation, on the grounds that Chinese production growth has kept pace with reported consumption -- and a 45-tonne import number for 2009 vindicates this stance. ... But 209 tonnes in 10 months is a horse of a different color. ... It means China might actually be capable of getting into India's league as an importer." India, of course, has long been the world's largest importer of gold by a wide margin. Veteran gold observer Jeff Christian of CPM Group told the Wall Street Journal: "Everybody in the gold market knew there was a surge in investment demand, but they didn't know it was China." Standard Bank offered some calculations on Friday concluding that investment demand for gold in China "may be as high as 180 tonnes in 2010 -- a rise of 70 percent year over year." What's happening? The Shanghai official attributed the surge to inflation fears amongst the Chinese public. These are not going to be assuaged any time soon. Not to be upstaged, according to LeMetropoleCafe, an official of the Bombay Bullion Association on Friday suggested that Indian imports this year might be 700 tonnes, 46 percent above last year. A strong rupee this week apparently enabled the Indians to keep buying from overseas. UBS reported on Thursday above-average sales to India. The bugs argue that because of this Chinese and Indian news, gold is in a radically different posture than it was around the end of 2008. Then, Western buying motivated by the financial crisis was met by heavy selling from traditional importing markets. Now, in contrast, the importers are buying. As a LeMetropoleCafe correspondent remarked on Friday, gold seems to have met a perfect (bullish) storm. Support GATA by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Prophecy Drills 71.17 Metres of 0.52 percent NiEq Prophecy Resource Corp. (TSX-V: PCY) reports that it has received additional assays results from its 100-percent-owned Wellgreen PGM Ni-Cu property in the Yukon, Canada. Diamond drill holes WS10-179 to WS10-182 were drilled during the summer of 2010 by Northern Platinum (which merged with Prophecy on September 23, 2010). WS10-183 was drilled by Prophecy in October 2010. Highlights from the newly received assays include 71.17 metres from surface of 0.52 percent NiEq (0.310 percent nickel, 0.466 g/t PGMs + Au, and 0.233 percent copper) and ended in mineralization. For more drill highlights, please visit: http://prophecyresource.com/news_2010_nov29.php
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| Government Can’t Even Print Money Properly Posted: 06 Dec 2010 12:41 PM PST As a metaphor for our troubled economic and financial era -- and the government's stumbling response -- this one's hard to beat. You can't stimulate the economy via the money supply, after all, if you can't print the money correctly. Because of a problem with the presses, the federal government has shut down production of its flashy new $100 bills, and has quarantined more than 1 billion of them -- more than 10 percent of all existing U.S. cash -- in a vault in Fort Worth, Texas, reports CNBC. "There is something drastically wrong here," one source told CNBC. "The frustration level is off the charts." [Related: Money fair showcases $100,000 bill] Officials with the Treasury and the Federal Reserve had touted the new bills' sophisticated security features that were 10 years in the making, including a 3-D security strip and a color-shifting image of a bell, designed to foil counterfeiters. But it turns out the bills are so high-tech that the presses can't handle the printing job. 
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| At YouTube, the 'Downfall' of gold and silver price suppression Posted: 06 Dec 2010 12:27 PM PST 8:23p ET Monday, December 6, 2010 Dear Friend of GATA and Gold (and Silver): If you can stand just one more subtitle parody of Hitler's bunker freakout scene from the movie "Downfall," a pretty good one based on the ongoing struggle against gold and silver price suppression has been posted at YouTube, and it mentions not only GATA but also our trouble-making compatriots Eric King, Ted Butler, Zero Hedge, and Max Keiser. Just be warned that the language is even cruder than anything you'd hear from the mining guys in the Pan Pacific hotel bar on the last night of the Vancouver conference. The video is titled "Crash JP Morgan, Buy Silver -- Max Keiser vs. Jamie Dimon" and you can find it here: http://www.youtube.com/watch?v=I0mhX9hpq3g&feature=player_embedded CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Support GATA by purchasing a colorful GATA T-shirt: 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 Drills 71.17 Metres of 0.52% NiEq Prophecy Resource Corp. (TSX-V: PCY) reports that it has received additional assays results from its 100-percent-owned Wellgreen PGM Ni-Cu property in the Yukon, Canada. Diamond drill holes WS10-179 to WS10-182 were drilled during the summer of 2010 by Northern Platinum (which merged with Prophecy on September 23, 2010). WS10-183 was drilled by Prophecy in October 2010. Highlights from the newly received assays include 71.17 metres from surface of 0.52 percent NiEq (0.310 percent nickel, 0.466 g/t PGMs + Au, and 0.233 percent copper) and ended in mineralization. For more drill highlights, please visit: http://prophecyresource.com/news_2010_nov29.php
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| At YouTube, the 'Downfall' of gold and silver price suppression Posted: 06 Dec 2010 12:27 PM PST 8:23p ET Monday, December 6, 2010 Dear Friend of GATA and Gold (and Silver): If you can stand just one more subtitle parody of Hitler's bunker freakout scene from the movie "Downfall," a pretty good one based on the ongoing struggle against gold and silver price suppression has been posted at YouTube, and it mentions not only GATA but also our trouble-making compatriots Eric King, Ted Butler, Zero Hedge, and Max Keiser. Just be warned that the language is even cruder than anything you'd hear from the mining guys in the Pan Pacific hotel bar on the last night of the Vancouver conference. The video is titled "Crash JP Morgan, Buy Silver -- Max Keiser vs. Jamie Dimon" and you can find it here: http://www.youtube.com/watch?v=I0mhX9hpq3g&feature=player_embedded CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Support GATA by purchasing a colorful GATA T-shirt: 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 Drills 71.17 Metres of 0.52% NiEq Prophecy Resource Corp. (TSX-V: PCY) reports that it has received additional assays results from its 100-percent-owned Wellgreen PGM Ni-Cu property in the Yukon, Canada. Diamond drill holes WS10-179 to WS10-182 were drilled during the summer of 2010 by Northern Platinum (which merged with Prophecy on September 23, 2010). WS10-183 was drilled by Prophecy in October 2010. Highlights from the newly received assays include 71.17 metres from surface of 0.52 percent NiEq (0.310 percent nickel, 0.466 g/t PGMs + Au, and 0.233 percent copper) and ended in mineralization. For more drill highlights, please visit: http://prophecyresource.com/news_2010_nov29.php
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| Inflation Expectation Tuesday: What’s Doctor Copper Predicting For the Markets? Posted: 06 Dec 2010 12:15 PM PST Inflation Expectation Tuesday: What's Doctor Copper Predicting For the Markets? Copper is often called Dr Copper as the metal is considered a bell-weather for the world economy due to its close correlation to economic growth (used by many industries, copper typically rallies when the world economy is growing). Indeed, one of the first signs that the market was going to rally rather than fall off a cliff during the Euro Crisis Round 1 in June came from Copper. As the below chart shows, the metal bottomed in June, preceding the stock bottom by almost a month. Since that time, the correlation between stocks and copper has strengthened to the point that today, the two assets are trading together on a near tick-for-tick basis:
With that in mind, today I want to focus on the metal for signs of what's to come in the markets. The first and most important item to note is that copper is coming up against long-term resistance. A breakout here would indicate the "inflation trade" is prepared to explode higher in a major way.
Is this a sure thing? Not necessarily, copper has actually just formed a rising bearish wedge pattern in the last six months. These patterns tend to be topping patterns which preclude sharp sell-offs down to the base (in copper's case 2.80 per pound) when broken. As you can see, copper broke this pattern in early November. This latest rally has brought copper up to test the broken trend-line. A rejection here would likely precede a sharp sell-off back down to $3.70 per pound. And if we take out the downward support line (green line above) then we're going down in a BIG way.
Keep your eyes on the Doctor, he may be flashing a warning signal to stocks. On that note, I recently published a 2010 Crisis Report designed to profit from the return of systemic risk to the markets. My thinking here is simple: even a relatively small amount of money could be turned into a literal fortune by a few concentrated options trades during times of Crisis. Indeed, consider the returns you would have made by taking out puts in early 2008 before the Crash happened? Even a mere $1000 investment could have returned tens of times that amount or more as the world panicked and collapsed. Well, we've got another opportunity brewing in the market today. No matter how the mainstream media spins it, the European monetary system is teetering on the brink of collapse. There is absolutely NO WAY that European countries like Greece, Ireland, and Spain will EVER be able to pay back their debts. Moreover, Europe's citizens have proven to be less than enthusiastic about losing their social benefits to bail out the banks. On that note, a full-scale bank run is scheduled to begin today in Europe.
Do you think Europe's banks (which are already on the hook for tens of billions in bad loans) are adequately capitalized to handle this? Me neither. That's why my 2010 Crisis Report is designed to place four concentrated bets on Europe collapsing in the coming weeks. And I'm giving this report away for FREE to subscribers of my options trading newsletter Rapid Fire Options Alert. To pick up a copy today (which you can keep even if you choose to cancel your subscription)… Normally the goal of Rapid Fire Options Alert is to produce double and triple digit profits as quickly as possible by trading one specific option at a time. However, the trades suggested in my 2010 Crisis Report are meant to be held for several months. Indeed, I view buying these trades today as the equivalent of buying puts on the S&P 500 back in July 2008. Good Investing! Graham Summers PS. I have to be honest, I personally believe Rapid Fire Options Alert is the lowest risk options newsletter on the planet.
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| Silver outperforms and Bush tax cuts extended in very quiet trading session Posted: 06 Dec 2010 12:11 PM PST | ||||
| State-Run China Securities Journal Says China May Hike Rates Over The Weekend Posted: 06 Dec 2010 12:00 PM PST
To all those who are considering buying the futures on the long-ago priced in news of the tax cut extension, we would like to caution that according to the state-run China Securities Journal (which is the same as prophet Jon Hilsenrath telling the great unwashed what the Printing God is about to do with near 99.9% accuracy), China may raise interest rates this weekend. Some additional color from Dow Jones: "Given the central bank set a precedent by raising interest rates right before the release of the consumer price index (previously), there's a 'sensitive policy window' before and after this weekend." If the hike is confirmed (and it is in line with our expectations, that China will hike first before it revalues the CNY any more) look for the greatest marginal credit bubble to promptly collapse, dragging down the US and EU with it, proving that all those who are preaching that Decoupling 2.0 is so different this time, are as always, merely Econ Ph.D.'s.
The original article can be found here.
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| Posted: 06 Dec 2010 11:33 AM PST SAN FRANCISCO (MarketWatch) — Gold climbed to record settlement territory Monday on uncertainty about European sovereign debt and the potential for more U.S. dollar weakness.
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| Dear Bernanke, Here's Your Guide To What's Really Making Gold Explode Posted: 06 Dec 2010 11:30 AM PST Goldstock Analyst's John Doody explained these factors in a presentation at the Hard Assets Conference in San Francisco.
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| CBS Allows Fed to Spread Disinformation Unchallenged Posted: 06 Dec 2010 11:22 AM PST Fed Chief Ben Bernanke, basically, told America last night that the trillions he pumped out into the world economy, because of the 2008 financial meltdown, was necessary to save us all from a depression. Ben also reassured America and the world Quantitative Easing (QE), or printing vast amount of dollars, will not have an inflationary downside. He told 60 Minutes reporter Scott Pelley he is "100%"sure inflation will remain under control and will not soar higher. In my opinion, what Mr. Bernanke said could not be further from the truth. Most of the world's financial leaders from places like China, Russia, Germany and Brazil all think what the Fed is doing is a very bad idea.
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| Ben Bernanke on 60 Minutes: Doesn't rule out QE3 Posted: 06 Dec 2010 11:12 AM PST The plan has drawn a major backlash from both conservatives and global leaders. Critics argue the policy of low interest rates will artificially devalue the dollar, and feed long-term inflation and asset bubbles.
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| Ben Davies - Massive Short Squeeze at Hand in Gold Market Posted: 06 Dec 2010 11:06 AM PST "We are on the verge of seeing a potential massive squeeze in the gold market. We witnessed this last month, and it appears to be rehearsing for the same play this month. Physical demand out of Asia is overwhelming the egregious paper gold shorts. If we are thinking this for gold, it is cubed for silver."
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| “It is widely known that J.P. Morgan (JPM) holds a giant short position in silver.” Posted: 06 Dec 2010 11:05 AM PST Is J.P. Morgan Getting Squeezed in Silver Market? Share this:
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| Obama and GOP Make A Deal For the Great American Giveaway Posted: 06 Dec 2010 11:01 AM PST
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| Keiser Report: Silver's Up – Keep it Up! Posted: 06 Dec 2010 10:56 AM PST Share this:
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| Danger of Deflation Depends on Your Definition of Deflation Posted: 06 Dec 2010 10:50 AM PST John Mauldin of Frontlinethoughts.com reports that "the number of people on food stamps continues to rise. As of the end of August, a total of 42,389,619 people were receiving food stamps under the SNAP program. This was an increase of 553,379 people over July's number, or an increase month-over-month of 1.32%." Most horrifically, "The year-over-year increase was 6,147,762 people or 17%." By this time, my heart is breaking from the sheer misery inherent in those numbers, and I am screaming in Loud Mogambo Outrage (LMO) at the damage caused by the Federal Reserve creating so much money for the last few decades that it created bubbles in stock markets, bubbles in bond markets, bubbles in the sizes of government, gargantuan derivatives markets and housing bubbles, all of which are in various stages of panic and loss, all made worse by more people not working and who can't buy food! And this does not even mention inflation in the prices of food and energy, which are going up in alarming ...
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| First Reggae Crash JP Morgan Buy Silver vid – best watched stoned on quality sensimilla (*) Posted: 06 Dec 2010 10:43 AM PST Share this:
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| Posted: 06 Dec 2010 10:22 AM PST Gold prices settle at fresh record high The COMEX February gold futures contract closed up $9.90 Monday at $1416.10, trading between $1409.80 and $1422.40 December 6, p.m. excerpts: see full news, 24-hr newswire…
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| Gold futures surge to record $1,429.40 on currency concerns Posted: 06 Dec 2010 09:56 AM PST By Yi Tian and Pham-Duy Nguyen … Gold priced in euros and U.K. pounds also rose to records, and silver futures extended a rally to a 30-year high. … "Further currency debasement is the new norm," said Matthew Zeman, a metal trader at LaSalle Futures Group in Chicago, said before the close of the Comex. "As long as that stands, investors are going to buy metals as a hedge against paper money. Gold has clear sailing to go much further from here." … Unemployment may take five years to fall to a normal level, and Fed buying of Treasury securities beyond the $600 billion announced last month is possible, Bernanke said in an interview broadcast yesterday by CBS Corp.'s "60 Minutes" program. Germany rejected calls to increase the European Union's 750 billion-euro ($1 trillion) aid fund or introduce joint bond sales, signaling refusal to bear more costs to stamp out the debt crisis. Gold is poised for a 10th annual gain after governments spent trillions of dollars and kept interest rates low to bolster economies. [source]
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| Posted: 06 Dec 2010 09:50 AM PST "…the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S, government can also reduce the value of a dollar in terms of goods and services, which is equivalent to
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| Gold hits new all time high . . . Take a deep breath, close your eyes and listen . . . Posted: 06 Dec 2010 09:32 AM PST Share this:
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| BEST VIDEO OF THE DAY AWARD!!!! Oh yea, have to give this one 3 stars (***) Posted: 06 Dec 2010 09:29 AM PST Hi Max, Your site is a daily read for me and I've been studying gold and silver and the crashing empire for a few years now. Here's an anthem I wrote for your Crash JP Morgan campaign. My mailbox was flooded shortly after I uploaded it to youTube. People are angry at the banks and [...]
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| The 3475% Gold Analysis Difference Between Pro... Posted: 06 Dec 2010 09:06 AM PST SafeHaven
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| Gold Daily and Silver Weekly Charts Posted: 06 Dec 2010 08:54 AM PST | ||||
| WikiLeaks and the National Debt Posted: 06 Dec 2010 08:52 AM PST by Addison Wiggin - December 6, 2010
 “The American response to the publication of our diplomatic cables suggests,” writes sociologist Norman Birnbaum in response to the drivel of WikiLeaks revelations we couldn’t escape last week, “that their central message, in this country, cannot be heard.”That message: “Our imperial apparatus persists in an increasingly impossible task -- the extension of our power in a world which resists it. “That the [world] resistance is often uncoordinated; that it is a consequence of the fact that the world is experienced by other peoples on their own terms, has surely occurred to many in our political elite. But they are incapable, however educated and experienced they may be, of acting on their insight.” In other words, the nature of the system is such that even the people who recognize there’s a problem can’t act to correct it. So it goes for the members of Congress who know Uncle Sam is broke.  We witnessed that phenomenon last week firsthand while gobbling down some rather tasty Gulf shrimp.In our lunch meeting with 12 Republican reps in Ron Paul’s office, whose names we’ll respectfully withhold to protect the guilty, the members agreed they didn’t support the war in Afghanistan… but when the time came, they’d fund it anyway. Almost to a member, they agreed QE2 was a bad idea and would support efforts to keep the dollar strong, but felt powerless to get their ranking members to go along. One, shockingly, asked, “Umn, before we continue, what is QE2?” Also, tasked with casting their votes on the very subject that day, they argued extending tax cuts to the middle class was a good idea. Most would later go ahead and vote against it. “The Empire has a logic all its own,” we wrote in Empire of Debt in 2005. It’s less of a profound insight than acceptance of fate… and a suggestion that you’d be wise to plan accordingly.  The immediate litmus test comes early next year, when Uncle Sam once again bumps up against the official debt ceiling. It’s $13.8 trillion this morning. The ceiling is set at $14.3 trillion.Whenever this happened in the past, Congress simply voted to pass a new ceiling into law. Some of the new Tea Party delegates have pledged to vote against it. “Whether we like it or not,” incoming House speaker John Boehner has stated hoping to squelch the movement, ”the federal government has obligations and we have obligations on our part... We’re going to have to deal with it as adults.” Our suggestion to the group: Vote “no”… shut down the government for a few days, as they did in 1995, and at least signal to the holders of trillions of U.S. dollars on foreign shores that there’s at least a few members with a backbone left in the elected body. “Ha!” one member laughed. “Fat chance.” Only in Washington can dealing with your debts by paying them off be considered childish. The “adult” thing to do, apparently, is to commit fraud by diluting the currency until its worthless… and wipe your debts clean with the paper.  Major U.S. stock indexes opened down as the week began this morning.To hear MarketWatch tell it, this is a reaction to Ben Bernanke’s appearance last night on 60 Minutes. The prospective money quote: “It’s certainly possible,” says Bernanke, that the Federal Reserve will pursue “QE2” more aggressively than it is already doing if the economy continues to look weak. Alas, how feeble the collective memory can be. A month ago, Bernanke published an Op-Ed in The Washington Post stating the exact same thing… and the market rallied. Either stock traders aren’t buying Bernanke’s BS on QE2 Part Deux… or there’s no real reason the market’s down today and the writer at MarketWatch found himself under a tight deadline with nothing real to report.  Jonas Elmerraji of our small-cap team votes for the latter. “Sometimes major events do move markets -- quite often, in fact,” Jonas writes, pointing out the obvious, “but most other times, journalists are just grasping at straws.”Since this is what gets our fingers to tingle, we recap some examples Jonas furnished from late last week.
“With Christmas coming up this month, I'm just waiting for some financial pundit to say that a year-end slump in toymakers was due to Santa Claus outsourcing labor.” To gauge market movement, Jonas prefers to use the STORM system he’s perfected throughout 2010. It lets you break all of Wall Street’s rules (legally), while generating gains anywhere from 216-1,294%. Jonas explains how it works right here.  “Despite obvious risks,” says Strategic Short Report’s Dan Amoss, “the stock market continues to float on hope. Today's environment reminds me of late 2007, when the market made new highs right into the face of the biggest credit crisis in history.“Back then, pundits wrote off the bankruptcies of the subprime mortgage boiler rooms as a small component of GDP. Today, bulls are trying to convince themselves that the global economy is not addicted to government spending and credit growth. It is, and soon we'll see how successful the nongovernment, nonbanking segments of the economy are at propping up economic activity. “Last week's rally could reverse in a heartbeat. The biggest near-term risk for financial markets is the continued popular (and ultimately political) outrage in Ireland and the rest of Europe about implementing austerity measures solely to prop up a hopelessly rotten banking system.” If the environment now is like late 2007, that bodes very well for Dan’s readers -- who collected average gains of 99% as stocks fell during 2008. You can join their ranks here.  Gold is starting the week right where it ended last week, in record territory around $1,417. Not bad, especially in light of dollar strength -- the dollar index is up nearly half a percent, to 79.8.Silver could set a 30-year high today… Right now, an ounce goes for $29.81.  Here’s a comforting thought as you begin year-end tax planning: 48,800 prison inmates nationwide filed fraudulent claims for 2009 refunds totaling $130 million.We know they’re fraudulent because the returns didn’t even bother to include any information about wages It gets better: The IRS paid $112 million of those claims, according to a new report from the Treasury Inspector General for Tax Administration. Bonus irony: Actor Wesley Snipes reports to federal prison in Pennsylvania on Thursday to begin a three-year sentence for tax evasion.
 “How can foreign aid be only $13 billion per year,” writes a reader replying to Thursday’s edition. “When last I checked, Egypt gets $2 billion per year, Mexico (which shouldn't need a penny out of the U.S.) gets foreign aid plus regular bailouts plus all those ‘remittances’ from illegal aliens who send their untaxed money offshore and collect welfare for their supposedly ‘U.S.-born’ kids? Something doesn't add up here.“But the point is whether it's ‘only’ $13 billion or more, we should not be spending that money to begin with, and we should certainly not be spending it when we don't have it. Cut it out! “Cut welfare -- irresponsible procreation should not entail some dysfunctional ‘right’ to live off taxpayers for years. Welfare should never be paid to noncitizens -- and welfare does not go to children; it goes to parents! “Eliminate half of the alphabet soup agencies (starting with Gropers Inc., aka the Thuggery Society of America). And ground That Stinker's plane(s) -- he spends more on traveling per month than any predecessor spent in a year. A thousand White House staffers for a week in the Caribbean? Give us taxpayers a break. “Now, those proposals combined could start cutting a nice a little chunk out of the bloated budget. Thirteen billion dollars here, $30 billion there, a half-trillion somewhere else, and pretty soon it adds up to real money.”  “I enjoy reading the various opinions expressed in your newsletter and thought the following suggestion may be of help,” writes another: “A pie chart showing the various entitlements and expenditures would provide a greater perspective of how deep this problem is.“From that point, we could begin the process of resolution if any and where to start. People are only getting bits and pieces, and not the whole picture.” The 5: Here’s a pie chart assembled by Wikipedia. You can click on the image to make it bigger:
Remember: Only 57% of this budget is paid for by tax revenue. The other 43% is debt. You want to eliminate 43% of spending? You can zero out unemployment, food stamps, Medicaid and all other welfare programs… and that’s only 24%. Assume we accommodate the demands to “keep government’s hands off my Medicare” (and Social Security), and assume the Pentagon is untouchable… and that immediately puts 51% of all spending off-limits. Heck, the best the Obama deficit commission could come up with was $3.9 trillion in savings over the next 10 years. So that’s an average $390 billion per year… or just 11% of the 2010 budget. (And the revenue projections assumed we’d have no recessions for the next 10 years.) And the plan still couldn’t get the required 14 out of 18 members to sign on for the plan to be formally recommended to Congress. So for folks obsessed with foreign aid, assistance to illegal immigrants and a lavish White House travel budget… sorry, it’s gonna take a lot more than that.  After a reader wrote in on Friday saying, “China is massively subsidizing U.S. standards of living. The Chinese government is doing all Americans a huge favor”… we got this reply:“Really? I didn’t know they were so kind and generous! I’m sure they are doing this just because they believe the old maxim of from each according to their abilities, to each according to their needs. “The reality is that there is a symbiotic disease here, and neither the Chinese are healthy, nor any of the West. Perhaps your commentator prefers the Chinese chronic alcoholic husband to the American heroin addict wife. I think they BOTH have problems, though I suspect it’s easier to dump the alcohol….”  “I believe that the monoliths of all walks have to fall as did the great dinosaurs from the prehistory,” writes a reader in Argentina, carrying on a similar line of thought. “Large government has to fall, large banks have to fall, large corporations and companies have to fall, and they should all be allowed -- encouraged, even -- to fall as do the big trees in the forest that then allow the light in for the seedlings to start anew.“Leaving aside the more than mere metaphors of the natural world to which we -- and all we do -- belong, from a technical point of view, there are ideal sizes, and methinks that the ideal sizes for the USA have long been exceeded for all the mentioned operators. “Politicians in the U.S. are trying to avert the inevitable pain, but ignorant -- maybe -- of the fact that they are just delaying it and building greater pain down the road. “So ‘from the ashes,’ as the cliche goes, the new country (or countries... even better) will rise. For this to happen, however, the old one will have to die. It should not be kept on the Chinese ventilator it currently lives on. This should be cut off to let nature run its course.” The 5: Given our experience of late, we’re not so sure we have any choice in the matter. Cheers, Addison Wiggin The 5 Min. Forecast P.S.: China’s gold imports are set to increase fivefold this year. Totaling 45 million metric tons in 2009, the total through October of this year is already 209.7 metric tons. Yet at least some gold is also leaving China -- including a small lot of 2003 China tenth-ounce Guanyin 50 Yuan Gold Proofs that our friends at First Federal recently secured. Learn about these extraordinary coins right here. Full disclosure: Under our business relationship with First Federal, we may be compensated if you buy. That relationship is what makes it possible for us to alert you to these opportunities.
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| Will Year-End Tax-Loss Selling Have an Impact on Gold, Silver Investors? Posted: 06 Dec 2010 08:40 AM PST What has been completely overlooked or not mentioned during this sizable run up in stock market profits, including the precious metals sector, is the imminent advent of tax-loss selling. Every year around this time, as sure as snow falls in Vermont, more than ever, there are reasons why this unmentioned event is apt to at least modestly affect stocks before the year end, especially precious metals. Gold has risen over 18%, silver has shown a rise above 50% on the year. Price are reaching new highs, but can they be maintained? I believe we may see more volatility as a breakout on GLD must be monitored especially as investors who have made impressive gains may decide to take profits before the end of the year. The reasons for this are manifold. Tax-loss selling is an annual event. It takes on added significance in that investors have the shadow of increased taxation looming ominously. So tax-loss selling is apt to be more severe, in view of the possibility that the Fed has already murmured that there may be a tax increase. Not to worry they say, the Fed will try to make it "gradual." Already the Debt Reduction Commission is on record as citing the need to increase taxes and saying they agree with the bold steps to save the economy. In 2009, China has dealt with imported inflation from the eurozone and the United States which have both had to essentially print money to save the markets. Both currencies came under pressure this year as investors fled to precious metals. The US and European economies are weakening with high unemployment yet food costs and hard assets are soaring. This current economic situation could exacerbate, affecting the quality of life for many. Right now we are in the midst of a euphoric period reminiscent of the phrase "happy days are here again." Oddly enough the rosy news is occurring smack in the middle of the holiday season. Do not be misled: tax-loss selling will occur as investors rethink 2011 and the investment challenges ahead.{FLIKE}A most important factor that is occurring as 2010 winds down and 2011 looms is that the Federal Reserve Board is launching a full-on offensive on the American economy called QE2, impacting every household. This action is a latter-day version of the Battle of the Bulge in World War II. The bulge is not in the average citizen's pocket; it's in how much it's going to cost global investors and their portfolios. QE2 is nothing more than a metaphor for the profligate printing of dollars. We can not avoid this having a significant effect on every one of us; it will prompt many to take profits now in 2010 as the price of gold challenges new highs. Many have large profits, and investors should be aware year-end profit taking.
In 2009, GLD moved from a low of approximately $80 a share to $120. In December of 2009, we saw some profit-taking without any warnings except extremely overbought readings. Be careful as this recent break to new highs has not shown much enthusiasm. Most of the excitement has been in silver, uranium, and some top-quality junior miners.
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| Fiscal Discipline and Unintended Consequences Posted: 06 Dec 2010 08:40 AM PST It's no secret Ron Paul is expected to chair the Monetary Policy Subcommittee starting next year, and that he intends to properly audit the Fed and US gold reserves as initial steps in attempting to return America to some degree of ...
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| Posted: 06 Dec 2010 08:33 AM PST Global Resource Investments Founder Rick Rule is always generous in sharing his wit and wisdom. In this Gold Report transcript of his Friday, Dec. 3, webcast, he covers a lot of territory and provides plenty of tips for investors as they face the extreme volatility he foresees. Despite the volatility, Rick believes the secular commodities bull market will continue its charge.
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| Rick Rule: Riding the Commodity Bull Posted: 06 Dec 2010 08:30 AM PST Source: The Gold Report 12/06/2010 Global Resource Investments Founder Rick Rule is always generous in sharing his wit and wisdom. In this Gold Report transcript of his Friday, Dec. 3, webcast, he covers a lot of territory and provides plenty of tips for investors as they face the extreme volatility he foresees. Despite the volatility, Rick believes the secular commodities bull market will continue its charge. Read on to find out what he says you need to stomach the highs and lows in this investment arena. This article covers the precious metals part of Rick Rule's interview. Look for Rick's thoughts on energy Tuesday on [I]The Energy Report.[/I] Jeff Howard (CEO, Global Resource Investments): Rick, let's start with the precious metals markets because it's been a glorious time the last three months or so, and it may be a good opportunity to get your thoughts on where we're going from here. So starting with gold, you know we've always joked over the years that when you ...
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| Posted: 06 Dec 2010 08:11 AM PST Market Blog submits: By David Berman If you're still kicking yourself over missing the rush into gold stocks, relax: Despite seeing record highs, Martin Roberge, portfolio strategist and quantitative analyst at Dundee Securities, believes that there is still plenty more upside left in these precious metals equities. Complete Story »
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In an interview with CBS' 60 Minutes over the weekend, Bernanke signaled that the central bank could expand its $600 billion bond purchase program to address the high unemployment rate. "We're not very far from the level where the economy is not self-sustaining," he told CBS. Fueling inflation sentiment, this announcement, coupled with ongoing uncertainty about the euro-zone's ability to contain its debt crisis, helped gold futures finish in positive territory…
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