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• Gold raid temporarily rebuffed, silver falls slightly..then huge raid in the access market.
• COT Silver Report - January 14, 2011
• True Inflation-Adjusted Rate Means Gold Should Be At $5,467!
• Reports of the Euro's Demise Are Greatly Exaggerated
• Silver ETF Impact 2
• Credit Agencies Are Out of Line in Warning on U.S. Debt
• Infosys' 3Q Results Underscore Setbacks for India as Outsourcing Destination
• Could be a Friday Double Payday – CFTC Position Limits
• US Mint Reports Unprecedented Buying Spree Of Physical Silver
• Official Sincliar/Seligman Party!!!
• George Soros’s Biggest Buy is Gold - $64 Million in the Last Quarter
• The Coming Flood of Yuan and Chinese Gold Demand
• Changing to a Silver Economy
• Why America is guaranteed to go bankrupt
• Ten ways America would be better off without the Federal Reserve
• Shocking poll finds China is now the world's top economic power
• Forget oil... this is the future of energy investing in the Middle East
• ATM Dispenses Gold!
• A Complete and Dismal Failure, But Not a Surprise
• Gold Optimists
• Gold Versus Defective Economists and Delusional Leaders on Drugs
• James Turk: Momentum Toward Hyperinflation Is Accelerating
• The golden wall of worry: The average gold timer is cautious...a good sign
• The Average Gold Timer is Cautious...a Good Sign: Mark Hulbert
• Will Growth Hamper Gold?
• The Moral and Prudential Algebra of Gold in 2011
• Gold "Attractive" as US Bonds Signal Inflation Amid 2011s "Race to the Bottom" in Currencies
• Open The Mint To Gold!
• The Root Cause of Unemployment : Part I : Destroying the Wage Fund
• 20 Shocking New Economic Records That Were Set In 2010
• Gold-Silver Ratio: Still constructive (destructive)
• The Growing Fiscal Disparity Between Insiders and Outsiders
• Precious Metals & the Dollar’s Next Big Move
• Persons of Interest
• George Soros Bought $64M in Gold in Q4
• 2011: Another Banner Year for Gold
• Metals Move Lower in Listless Trade
• Economic Ruination from Money Creation to Price Inflation
• More Than A Million
• Gold Seeker Closing Report: Gold and Silver End Mixed; Fall After Hours
• Gold Mining Stocks Trendpower

Gold raid temporarily rebuffed, silver falls slightly..then huge raid in the access market. Posted: 13 Jan 2038 10:13 AM PST

COT Silver Report - January 14, 2011 Posted: 14 Jan 2011 06:35 AM PST COT Silver Report - January 14, 2011

True Inflation-Adjusted Rate Means Gold Should Be At $5,467! Posted: 14 Jan 2011 05:16 AM PST Contrary to popular belief, Gold Prices have in fact tracked the true inflation rate very closely... and there is a very real possibility that we will have a short-term spike – a genuine investment bubble – in gold that takes us into the $5,000/oz to $8,000/oz range. Words: 748

Reports of the Euro's Demise Are Greatly Exaggerated Posted: 14 Jan 2011 05:10 AM PST Sudden Debt submits: Just like the premature announcement of Mark Twain's passing into the hereafter, breathless predictions of the euro's death are greatly exaggerated. In sharp contrast to this swirling maelstrom of half-truths, targeted innuendos and outright bull, this well-reasoned and comprehensive analysis of the situation by Paul Krugman stands out and is well worth reading. I do disagree with a few of Krugman's points, however. Like nearly every non-European, he perceives the euro mostly in technical/monetarist terms, instead of historical/socio-economic ones. It's like saying the U.S. Declaration of Independence was put together by a bunch of frustrated colonists solely for the purpose of avoiding King George's high taxes. He's definitely not alone in grossly underestimating the will of Europeans to integrate their separate nations into a cohesive, peaceful Europe, but as a Nobel laureate maybe he should know better. He mentions American economist Irving Fisher from almost 80 years ago, who claimed that economic crises deepen when incomes fall but debt remains unchanged. That was and remains true in theory. But in the case of the eurozone, today's secondary bond markets can be adapted as debt-reduction mechanisms. For example, with Greek government bonds trading at 50 or 60 cents on the euro, a pan-European entity (e.g. the ECB) can quickly step in, scoop them up and refinance the purchased amounts at cost. This is now being seriously considered by European leaders (but you heard it here first, eh?). He draws a parallel with Argentina's default and the peso's 1-to-1 peg to the U.S. dollar. Crucially, however, the euro is not a peg but a national and international reserve currency. No matter how "hard" and "irrevocable," Argentina's peg involved pesos, a national currency that was vulnerable to psychological pressure and loss of confidence. Furthermore, unlike the eurozone, Argentina's economy was not at all integrated with that of the U.S. For example, trade between Argentina and the U.S. in 2007 (exports plus imports) amounted to a mere 9.6% of Argentina's total foreign trade. Compare this to Greece, where 56% of its total foreign trade is with other EU nations. My take on the "European Crisis" is that it amounts to more than a storm in a teacup, but much less than a perfect storm capable of sinking the euro or the EU itself. It is United Europe's first real test, a challenge from which it will come through stronger and more confident. Despite the currently deafening cacophony of opportunistic sycophants, Europeans will soon start doing a bit of their own yelling: "Hell No, We Won't Go" (... quietly to the dustbin of history). Complete Story »

Silver ETF Impact 2 Posted: 14 Jan 2011 04:51 AM PST

Credit Agencies Are Out of Line in Warning on U.S. Debt Posted: 14 Jan 2011 04:48 AM PST Bob Mcteer submits: Something seems insulting about S&P and Moody’s (MCO) warnings on the U.S. credit rating. I don’t disagree that the U.S. fiscal situation has deteriorated significantly, and that something must be done about it sooner rather than later. However, coming from outfits that gave AAA ratings to mortgage-backed securities full of subprime mortgages, a warning on the U.S. sovereign credit just doesn’t set right. I guess all the people around the world who rush into U.S. Treasuries at the first sign of trouble anywhere are just fools. Greece and Ireland had no currencies or central banks of their own. They shared the euro and the ECB with 14 other countries, so their sovereign debt wasn’t entirely sovereign. The United States, by contrast, has the Federal Reserve and the dollar. It is often said that countries in such positions won’t default on their debt because they can always, as a last resort, inflate their way out of it. Complete Story »

Infosys' 3Q Results Underscore Setbacks for India as Outsourcing Destination Posted: 14 Jan 2011 04:39 AM PST Outsourcing Insider submits: By Audrey B. While India is undisputedly the current top outsourcing destination in the world, an appreciating rupee, increasing labor costs and higher attrition levels are now weighing heavily on outsourcers with their businesses in India. The country is already falling behind in terms of call center outsourcing with the emergence of the Philippines at the forefront, and now with the release of Infosys’ (INFY) quarterly results, it has made these setbacks more evident. India’s number two software exporter and outsourcing services provider, Infosys, released on the 13th of January its third quarter results for FY2011. The company reported a 14.2% rise in net profit, which fell behind analyst estimates, coming in at a profit of 17.8 billion rupees below the 18.2 billion estimate in a Reuters (TRI) poll. The company however still raised its dollar sales growth forecast for FY2011 in the year ending March to 25.7% - 26.1% from the 24% - 25% forecast in October. Complete Story »

Could be a Friday Double Payday – CFTC Position Limits Posted: 14 Jan 2011 03:40 AM PST As we write at 10:34 CT it is looking like we are in for a "Payday" on gold and silver, as both have moved below our trading stops. If that continues for an hour or so, or if either of them reaches our "hard stops" within that hour, we haul to the sidelines muy pronto. Having said that, these are valuable trades, not to be tossed overboard lightly, so we will give each of them the full hour's grace, subject to the hard stops. Coincidentally, this downward action for precious metals is occurring the day after the CFTC just voted to put their new position limit scheme for futures, options and some swaps out for public comment. ...

US Mint Reports Unprecedented Buying Spree Of Physical Silver Posted: 14 Jan 2011 02:40 AM PST US Mint Reports Unprecedented Buying Spree Of Physical Silver Submitted by Tyler Durden on 01/13/2011 14:23 -0500 Three days ago we noted that in just the first week of January, the US Mint had sold 2,221,000 ounces of silver "a number which if run-rated would be an absolutely all time monthly record," A quick glance at the tally today, shows that something very scary is going on. In the subsequent three days, the number has surged by 50% and has hit 3,407,000 ounces of silver! In just the first 12 days of the month we have already surpassed the total monthly sales of 9 separate months of 2010. And some additional observations on what is becoming a physical buying frenzy from CoinNews.net: An increase in 2010 Silver Proof Eagles and record-approaching 2011 Silver Bullion Eagles are the most interesting aspects in the latest US Mint sales report. The Proof Eagle coins have seen two weekly adjustments since they sold out in late December. The latest brings them up 3,644 to 860,000, which would seem like a natural stopping point. Collectors will have to wait until the July time frame for the 2011 Silver Proof Eagles to make their appearance, according to the US Mint. 2011 bullion eagles launched on January 3, 2011. Silver Eagles already have last year's January record in their sight. The coins have raced to 3,407,000 in less than two weeks after their latest weekly pick-up of 1,322,000. Until January 2009, the silver coins had never topped the 3 million mark during the first month of a year. Those record sales totaling 3,592,500 may get clobbered in mere days. The all-time monthly high of 4,260,000 which was just set in November could be the next victim. As a side note, the 3,407,000 sold this month includes 469,500 of the 2010-dated issues. The US Mint had buyers order one 2010 Silver Eagle for every five of the 2011?s. Bullion one-ounce 2011 Gold Eagles are running, but not sprinting like their silver counterparts. US Mint sales has their tally at 42,500 for a weekly increase of 29,000. As a comparison, buyers ordered 85,000 in January 2009. Inventory of the 2010-dated coins also remains. There were 53,000 at the start of the year. US Mint Authorized Purchasers must order one old for every four of the new ones. Mike Krieger presents the following disturbing observation on this trend: "In the first 12 days of January 3.4 million silver eagles have been sold. I have never seen anything like this. The amount of physical being taken off the market on this paper sell off is EXTRAORDINARY. We must be VERY close to the end." Whoever has adopted JPM's legacy paper silver short position is in for some very troubling days ahead. http://www.zerohedge.com/article/us-...hysical-silver

Official Sincliar/Seligman Party!!! Posted: 14 Jan 2011 02:35 AM PST This is the official GIM2 stop to celebrate Seligman/Sincliar's beautiful call. Only 6 more hours to 1650!!!!

George Soros’s Biggest Buy is Gold - $64 Million in the Last Quarter Posted: 14 Jan 2011 01:35 AM PST

The Coming Flood of Yuan and Chinese Gold Demand Posted: 14 Jan 2011 01:30 AM PST

Changing to a Silver Economy Posted: 14 Jan 2011 12:54 AM PST The main bottom line is that if the laws are altered, this opens up all sorts of possible alternative currencies in all sorts of situations where currency is now used. There would be nothing to stop manufacturers who supply stores with retail goods from paying their employees in Ag units that the employees then use to buy goods from the stores. The free market economy can quite easily transition to a silver economy or to an economy with multiple currencies based on other units of account or redemption, and they can all be on a 100% deposit or 100% fractional-reserve basis.

Why America is guaranteed to go bankrupt Posted: 13 Jan 2011 11:59 PM PST From Gonzalo Lira: ... I have the argument that explains why fiscal deficits happen. Moreover, I can explain why fiscal deficits occur in a democracy in a manner which is different from any other sort of regime. My theory can explain why fiscal debts in a democracy grow once they start, and I can explain why this growth in debt inevitably, inexorably leads to the bankruptcy of the democratic regime. Further, I can prove — by sound and valid argumentation — that the United States is going bankrupt right now because of this process. It’s an overall concept I’ve designated as the Democratic Bankruptcy Paradox: The paradox by which every democracy eventually goes bankrupt — regardless of the people’s will and intention of keeping it from going bankrupt. That’s why it’s a paradox: The citizens of a democratic state are supposed to control its destiny. They obviously do not want their nation to suffer bankruptcy — yet in spite of their will and intent, democratic states always go bankrupt. Always. This post will outline my proof of why this is so... Read full article... More on the "End of America": The bankruptcy of the United States is now certain Porter Stansberry: A major financial crisis has begun This little-known mistake is pushing America toward collapse

Ten ways America would be better off without the Federal Reserve Posted: 13 Jan 2011 11:58 PM PST From The Economic Collapse: The vast majority of Americans, including many of those who believe that they are "educated" about the Federal Reserve, do not really understand how the Federal Reserve really makes money for the international banking elite. Many of those opposed to the Federal Reserve will point to the record $80.9 billion in profits that the Federal Reserve made last year as evidence that they are robbing the American people blind. But then those defending the Federal Reserve will point out that the Fed returned $78.4 billion to the U.S. Treasury. As a result, the Fed only made a couple billion dollars last year. Pretty harmless, eh? Well, actually no. You see, the money that the Federal Reserve directly makes is not the issue. Rather, the "magic" of the Federal Reserve system is that it... Read full article... More on the Federal Reserve: BUSTED: Ben Bernanke caught in a MASSIVE lie Today's entertainment: The Fed's "Quantitative Easing" is finally explained The Fed just confirmed that "QE2" is nothing more than a secret bank bailout

Shocking poll finds China is now the world's top economic power Posted: 13 Jan 2011 11:43 PM PST From Financial Armageddon: A new nationwide poll by the Pew Research Center for the People & the Press reveals an interesting perspective on the global economic pecking order: Nearly half (47%) of Americans see China as the world's leading economic power, while 31% say the United States holds that position. As recently as February 2008, the positions of these two countries were reversed: 41% named the U.S., and 30% named China as the world's leading economic power. Few Americans (6%) place the countries of... Read full article... More on China: The real reason China is buying so much gold The amazing Chinese growth story you've heard nothing about GOLD CRAZY: New wave of Chinese money is set to slam the gold market

Forget oil... this is the future of energy investing in the Middle East Posted: 13 Jan 2011 11:38 PM PST From Marin Katusa, Casey’s Energy Report: As the conventional and cheap oil and gas start to dry up in the Middle East… a bigger, even better opportunity seeks to replace it. For many who aren't familiar with the region, the Middle East comes across as an updated version of Lawrence's Arabia, only with lots of oil. But this mosaic of cultures isn't made up of only Arabs or Muslims, and most Middle East countries are neither awash with heavily armed, rather excitable citizenry… nor with black gold, which is what we're interested in. Twenty-three countries comprise the Arab League, but only Saudi Arabia, Iraq, Kuwait, the United Arab Emirates (UAE), and Iran are major oil producers. No matter... With the exception of Kurdistan in northern Iraq, none of the oil heavies are currently open to U.S. investors anyway. We're digging for other finds, with three basic criteria. We're looking for countries in the Middle East that... Read full article... More on energy: Oil soars dangerously close to $100 Marc Faber: The three commodity investments you must buy now New BP leak in Alaska could disrupt more than 15% of U.S. oil production

ATM Dispenses Gold! Posted: 13 Jan 2011 10:59 PM PST If you're sick of just getting plain-old cash out of the ATM, head over to the Golden Nugget in Las Vegas, where you can withdraw funds from your account in the form of gold. From USA Today: "The GOLD to go" machine spits out 24-karat gold bars from 1 to 250 grams. And it can vend gold coins and bars with the Golden Nugget logo. The cost is constantly updated to reflect the ever-changing gold market. A computer inside the ATM keeps up with current prices." " A rep for the ATM company tells the paper that... See the rest of the article here: http://consumerist.com/2011/01/vegas...d-of-cash.html

A Complete and Dismal Failure, But Not a Surprise Posted: 13 Jan 2011 09:48 PM PST The stimulus and quantitative easing was predicted to be and has become a colossal failure, dooming future generations to debt without results. How many people in government actually believed this nonsense would work is moot. Some, at least, knew it wouldn't but it was the only way to defer a collapse. It has done just [...]

Gold Optimists Posted: 13 Jan 2011 09:47 PM PST A survey of more than 100 analysts show bullishness on gold. More and more economists, analysts and financial writers, 122 in fact, have taken the bold step of projecting the price at which gold will achieve its parabolic peak with 6 individuals claiming that the peak price will be realized sometime in 2011. Some have [...]

Gold Versus Defective Economists and Delusional Leaders on Drugs Posted: 13 Jan 2011 09:00 PM PST Midas Letter

James Turk: Momentum Toward Hyperinflation Is Accelerating Posted: 13 Jan 2011 08:27 PM PST Link:  James Turk: Momentum Toward Hyperinflation Is Accelerating Image:  My first gold-related story of the day is a blog posted over at King World News.  I'm just going to steal Chris Powell's intro from his GATA release...and post the link. Interviewed by King World News, GoldMoney founder and GATA consultant James Turk remarks that soaring inflation with commodities soon will prompt more increases in gold and silver prices. read more

The golden wall of worry: The average gold timer is cautious...a good sign Posted: 13 Jan 2011 08:27 PM PST Link:  The golden wall of worry: The average gold timer is cautious...a good sign Image:  My last offering of the day is courtesy of reader Scott Pluschau.  It's a piece from Wednesday that's posted over at the marketwatch.com website.  It's commentary by Mark Hulbert that's headlined "The golden wall of worry: The average gold timer is cautious...a good sign".  It might appear that way to the casual viewer of the gold market's gyrations over the last six weeks. read more

The Average Gold Timer is Cautious...a Good Sign: Mark Hulbert Posted: 13 Jan 2011 08:27 PM PST GLD ETF down another 204,951 ounces.  The golden wall of worry.Banks repossessed 1 million homes last year — and 2011 will be worse. Momentum Toward Hyperinflation Is Accelerating: James Turk...and much more. ¤ Yesterday in Gold and Silver Thursday's trading activity was another one of those days that made no sense whatsoever...at least no sense in free-market terms. For the second day in a row there was a big decline in the dollar.  On Thursday, that decline began at 2:00 a.m. Eastern right on the button...and really began to accelerated to the downside shortly before 7:00 a.m. in New York...with the bottom coming at half past lunchtime on the East Coast.  The drop was an eye-watering 120 basis point in the world's reserve currency from high to low.  That's 1.5%. Since Monday, the dollar has lost about 2.75% of its 'value'.  This is a monstrous decline for any currency...but for the world's reserve currency, it's almost a crash. Since their Monday lows to their closes yesterday, the CRB is up roughly 3.2% and the CCI is up 2.8%. What has gold done since its Monday low to its Thursday close at 5:15 p.m. Eastern?  It has risen a net $8.70...and silver is up a whole four cents. If you think that something does not compute here...you would be right about that. Both metals should have been screaming to the upside...but they were not...and the sell-offs at 9:00 a.m...plus the ones in electronic trading the moment that Comex trading ended at 1:30 p.m. Eastern time yesterday afternoon, reeked of price management by the 'usual suspects'. The gold price was under selling pressure right from the Far East open on Thursday morning...and that decline began to accelerate as the dollar decline began at 2:00 a.m. Eastern time.  However, at 7:00 a.m...when the dollar really fell of a cliff...gold began to rise quickly and went parabolic once trading began on the Comex yesterday morning.  That rally got hammered at 9:00 a.m. sharp...and gold got sold off until about 10:30 a.m.  From that low, it was a struggle for it to get back to Wednesday's closing price...and it didn't quite make it.  Then, the moment the Comex closed at 1:30 p.m...someone pulled the pin...and that, as they say, was that. Gold's high at the 9:00 a.m. peak was $1,394.10 spot...and the low, around 3:40 p.m. Eastern time, was $1,368.60 spot.    As is always the case, the silver price was more 'volatile'.  It, too, got sold off starting shortly after trading began in the Far East yesterday morning...and was down over 50 cents at noon in London...which is 7:00 a.m. in New York.  Silver, too, began to rally...just like gold...but ran into a JPMorgan-constructed wall at precisely 9:00 a.m. Eastern time.  After that, the silver price never had a ghost of a chance to recover...and when the Comex closed at 1:30 p.m. Eastern time...it was lights out.  Silver's high was $29.81...and it's low was $28.51...a $1.30 spread.    Here's the New York spot silver market on its own.  Just look at the precision of the JPMorgan-led bear raids at 9:00 a.m. and 1:30 p.m.  The NY spot gold chart looks similar...but the silver chart is more spectacular.  There's nothing free-market to be seen here.  And don't forget that the dollar was down 1.5% yesterday as well.    Platinum and palladium also got smacked at the same 9:00 a.m. time as gold and silver...but did not get hit after the Comex close.  That travesty was only visited upon silver and gold. I've already said everything about the dollar's Thursday performance that I'm going to.  Here's the graph.    Here's the 1-year dollar chart to put this week's dollar price action in some sort of perspective...and it ain't pretty.    The CME's Thursday delivery report showed that 32 gold contracts were posted for delivery on Monday.  JPMorgan was the only issuer out of its client account...and the Bank of Nova Scotia was the only stopper. The GLD ETF showed another decline...this one was reported as 204,951 ounces.  SLV showed no change.  The U.S. Mint had no sales report on Thursday. Over at the Comex-approved depositories, they reported receiving a net 530,040 troy ounces of silver on Wednesday.  The link to that action is here. Sponsor Advertisement New Pacific Metals Corp. reports on a re-evaluation of prior drill results from its 100% owned Tagish Lake Gold Property, Yukon Territory, Canada, which includes the Mt. Skukum Mine, a past gold producer, and two advanced stage projects: Skukum Creek and Goddell.  At Goddell, a team of New Pacific geologists has prepared a series of cross sections from data contained in prior NI 43-101 technical reports, revealing an intersection in drill hole 97-41 of 64.69 metres (38.42 m true thickness) grading 5.75 g/t gold; another three drill holes intercepted intervals greater than 30 metres long with grades in excess of 5 g/t gold. The new geological interpretation for the Goddell Project identifies a previously unrecognized target, the P.D. Zone, which remains open in all directions.  New Pacific is currently synthesizing results from over 120,000 metres of surface and underground drilling and more than 4,800 metres of underground workings, and is developing plans for an aggressive exploration and development campaign in 2011. New Pacific Metals Corp. is focused on near-term, high margin opportunities in Canada and China. Please visit our website to learn more about the company and request information. ¤ Critical Reads Subscribe Europe fears motives of Chinese super-creditor Today's first story comes from Europe.  I mentioned yesterday that Portugal dodged a bullet with their 'successful' bond auction...and that China was one of the big buyers.  That fact didn't get past Ambrose Evans-Pritchard over at The Telegraph...and here's a story that he posted late last night that's headlined "Europe fears motives of Chinese super-creditor".  This is a long piece for Ambrose...but it's worth the read.  I thank Roy Stephens for sharing it with us...and the link is here. View full GSD edition France and Germany veto increase in EU rescue fund Also in this column yesterday, I posted a story about a hoped-for increase in the European Union rescue fund.  Well, Germany and France shot that idea down in flames.  Here's another Ambrose Evans-Pritchard offering [courtesy of Roy Stephens] on this subject that's headlined "France and Germany veto increase in EU rescue fund".  This rejection once again exposes serious differences at the heart of the monetary union.  It's a slightly shorter piece than the first story of the day...and I think it's worth skimming...and the link is here. View full GSD edition The World from Berlin: 'Europe Has to Stop Appearing Like a Headless Chicken' Here's another story about the EU rescue fund...but this one is seen through Germany's eyes.  Roy Stephens dug this one up over at speigel.de yesterday...and the headline reads The World from Berlin: 'Europe Has to Stop Appearing Like a Headless Chicken'.  Being a farm boy back in my youth, I have first-hand experience with headless chickens...and understand this story all too well.  The link is here. View full GSD edition Banks repossessed 1 million homes last year — and 2011 will be worse Next is a story about U.S. real estate foreclosures that is posted over at msnbc.com...and it's courtesy of reader Phil Barlett.  The headline reads "Banks repossessed 1 million homes last year — and 2011 will be worse".  Lenders are poised to take back more homes this year than any other since the U.S. housing meltdown began in 2006.  About 5 million borrowers are at least two months behind on their mortgages...and more will miss payments as they struggle with job losses and loans worth more than their home's value, industry analysts forecast.  The link is here. View full GSD edition 2 dead, 4 injured in Chile gas hike protests Next is an AP story posted at businessweek.com that I stole from yesterday's King Report.  Earlier this week I reported about food price riots in Tunisia and Algeria.  Now it's gas price riots in southern Chile.  The headline reads "2 dead, 4 injured in Chile gas hike protests".  The link is here. View full GSD edition Brent Crude oil hits two-year high of $98 The price of oil has been rising steadily since last June...and the problems with the Alaska pipeline have certainly exacerbated the current situation.  Here's Roy Stephens last offering for today's column.  It's a piece out of Tuesday's edition of The Telegraph...and the headline reads "Brent Crude oil hits two-year high of $98".  "There are quite a few good reasons that could explain and verify the current high oil prices," says Myrto Sokou, analyst at Sucden Financial. "The recent shut in the key Trans Alaska pipeline, forecasts about heavy winter conditions in the US North East, as well as strong equity markets, could provide further support to crude oil prices. It might be fairly soon that we can see the oil prices back to the $100 level."  The link to the story is here. View full GSD edition James Turk: Momentum Toward Hyperinflation Is Accelerating My first gold-related story of the day is a blog posted over at King World News.  I'm just going to steal Chris Powell's intro from his GATA release...and post the link. Interviewed by King World News, GoldMoney founder and GATA consultant James Turk remarks that soaring inflation with commodities soon will prompt more increases in gold and silver prices. Excerpts from the interview are headlined "James Turk: Momentum Toward Hyperinflation Is Accelerating"...and the link is here. View full GSD edition US Mint Reports Unprecedented Buying Spree Of Physical Silver The next story has to do with the huge number of silver eagle sales that have occurred so far in January.  Reader 'David in California' sent me the following story headlined "US Mint Reports Unprecedented Buying Spree Of Physical Silver

Will Growth Hamper Gold? Posted: 13 Jan 2011 06:52 PM PST

The Moral and Prudential Algebra of Gold in 2011 Posted: 13 Jan 2011 04:50 PM PST

Gold "Attractive" as US Bonds Signal Inflation Amid 2011s "Race to the Bottom" in Currencies Posted: 13 Jan 2011 04:34 PM PST

Open The Mint To Gold! Posted: 13 Jan 2011 04:00 PM PST

The Root Cause of Unemployment : Part I : Destroying the Wage Fund Posted: 13 Jan 2011 04:00 PM PST Gold University

20 Shocking New Economic Records That Were Set In 2010 Posted: 13 Jan 2011 03:41 PM PST 2010 was quite a year, wasn't it?  2010 will be remembered for a lot of things, but for those living in the United States, one of the main things that last year will be remembered for is economic decline.  The number of foreclosure filings set a new record, the number of home repossessions set a new record, the number of bankruptcies went up again, the number of Americans that became so discouraged that they simply quit looking for work reached a new all-time high and the number of Americans on food stamps kept setting a brand new record every single month.  Meanwhile, U.S. government debt reached record highs, state government debt reached record highs and local government debt reached record highs.  What a mess!  In fact, even many of the "good" economic records that were set during 2010 were indications of underlying economic weakness.  For example, the price of gold set an all-time record during 2010, but one of the primary reasons for the increase in the price of gold was that the U.S. dollar was rapidly losing value.  Most Americans had been hoping that 2010 would be the beginning of better times, but unfortunately economic conditions just kept getting worse. So will things improve in 2011?  That would be nice, but at this point there are not a whole lot of reasons to be optimistic about the economy.  The truth is that we are trapped in a period of long-term economic decline and we are now paying the price for decades of horrible decisions. Amazingly, many of our politicians and many in the mainstream media have declared that "the recession is over" and that the U.S. economy is steadily improving now. Well, if anyone tries to tell you that the economy got better in 2010, just show them the statistics below.  That should shut them up for a while. The following are 20 new economic records that were set during 2010.... #1 An all-time record of 2.87 million U.S. households received a foreclosure filing in 2010. #2 The number of homes that were actually repossessed reached the 1 million mark for the first time ever during 2010. #3 The price of gold moved above $1400 an ounce for the first time ever during 2010. #4 According to the American Bankruptcy Institute, approximately 1.53 million consumer bankruptcy petitions were filed in 2010, which was up 9 percent from 1.41 million in 2009.  This was the highest number of personal bankruptcies we have seen since the U.S. Congress substantially tightened U.S. bankruptcy law several years ago. #5 At one point during 2010, the average time needed to find a job in the United States had risen to an all-time record of 35.2 weeks. #6 Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs, which is believed to be a new record low. #7 The number of Americans working part-time jobs "for economic reasons" was the highest it has been in at least five decades during 2010. #8 The number of American workers that are so discouraged that they have given up searching for work reached an all-time high near the end of 2010. #9 Government spending continues to set new all-time records.  In fact, at the moment the U.S. government is spending approximately 6.85 million dollars every single minute. #10 The number of Americans on food stamps surpassed 43 million by the end of 2010.  This was a new all-time record, and government officials fully expect the number of Americans enrolled in the program to continue to increase throughout 2011. #11 The number of Americans on Medicaid surpassed 50 million for the first time ever in 2010. #12 The U.S. Census Bureau originally announced that 43.6 million Americans are now living in poverty and according to them that was the highest number of Americans living in poverty that they had ever recorded in 51 years of record-keeping.  But now the Census Bureau says that they miscalculated and that the real number of poor Americans is actually 47.8 million. #13 According to the FDIC, 157 banks failed during 2010.  That was the highest number of bank failures that the United States has experienced in any single year during the past decade. #14 The Federal Reserve brought in a record $80.9 billion in profits during 2010.  They returned $78.4 billion of that to the U.S. Treasury, but the real story is that thanks to the Federal Reserve's continual debasement of our currency, the U.S. dollar was worth less in 2010 than it ever had been before. #15 It is projected that the major financial firms on Wall Street will pay out an all-time record of $144 billion in compensation for 2010. #16 Americans now owe more than $881 billion on student loans, which is a new all-time record. #17 In July, sales of new homes in the United States declined to the lowest level ever recorded. #18 According to Zillow, U.S. housing prices have now declined a whopping 26 percent since their peak in June 2006.  Amazingly, this is even farther than house prices fell during the Great Depression.  From 1928 to 1933, U.S. housing prices only fell 25.9 percent. #19 State and local government debt reached at an all-time record of 22 percent of U.S. GDP during 2010. #20 The U.S. national debt has surpassed the 14 trillion dollar mark for the first time ever and it is being projected that it will soar well past 15 trillion during 2011. There are some people that have a hard time really grasping what statistics actually mean.  For people like that, often pictures and charts are much more effective.  Well, that is one reason I like to include pictures and graphs in many of my articles, and below I have posted my favorite chart from this past year.  It shows the growth of the U.S. national debt from 1940 until today.  I honestly don't know how anyone can look at this chart and still be convinced that our nation is not headed for a complete financial meltdown....

Gold-Silver Ratio: Still constructive (destructive) Posted: 13 Jan 2011 01:21 PM PST If GSR maintains the bottoming posture (above EMA's 10 & 20) it will be constructive for a rise in the indicator and destructive for the momo's, pumps, pom pom squads, etc.  http://www.biiwii.blogspot.com Source: Gold-Silver Ratio: Still constructive (destructive)

The Growing Fiscal Disparity Between Insiders and Outsiders Posted: 13 Jan 2011 11:00 AM PST To the barricades! Today, we continue to explore our new idea. Alert readers have already figured out that it is not a completely new idea. The ancient Greeks toyed with it too. Really new ideas are extremely rare. In our modern version, it might be called the General Theory of Decadence...or the Cycles of Growth and Decline, or more playfully, the Unified Zombie Theory. Life goes on. Material progress accumulates. The story of human life on earth grows longer, and more interesting. We see no end to it. But each component part comes to an end. Each life, each economy, each company, each society and each civilization still shrivels, corrodes, and exterminates itself. The past must become history so that the future may become the present. It takes many downsides to make upside progress. And then, the progress - if there is any outside of real science and technology - is probably only barely positive...and painfully cyclical. One generation learns. The next forgets. We'll come back to this in a second... First, a look at the news: Dow up 83 points yesterday. Gold headed towards $1,400. And the Great Correction continues. As to Europe's debt problems, the press seems unable to make up its mind. "Portuguese bond sale boosts confidence," says The Financial Times. Oh yeah? "Portugal fails to quell fears with auction," counters The Wall Street Journal. The International Herald Tribune threw its lot with the FT: "Pessimists kept at bay in Portugal's bond sale." In short, who knows? Europe has too much debt. Just like America. Sooner or later, some of that debt will be written off. Or worse. Portugal is just like Illinois or California. Only smaller and less important. Meanwhile, in the US... "Housing weighs down the recovery," writes Mort Zuckerman in the FT. There are 5.5 million households with mortgages that are at least 20% higher than their houses' value, he says. Delinquencies are still rising. The loss so far is greater than in the Great Depression, adds Zillow. And the Case-Shiller numbers show it getting worse. But let's turn to murder for a minute... "Obama says polarized nation needs healing," says a headline at Yahoo! News. A guy goes off his head and starts shooting people in Arizona. The whole nation needs "healing," says the president. The media is full of argument on the subject. Are Rush Limbaugh and Sarah Palin to blame? Strident political rhetoric? Loose gun laws? Palin says she is a victim of "blood libel." The New York Times refers to a "climate of hate." Why are people so angry at one another anyway? Relax... Our theory explains it. When people are creating wealth they have little reason to get mad at one another. Sure, someone takes a shot at a Congressman from time to time, but it tends to be a personal matter. And the politico probably has it coming. Not so in the degenerate phase. When people try to live at each other's expense, it naturally gives rise to widespread rivalry and resentment. The poor want food-stamps, welfare and unemployment comp. The rich want tax cuts and government contracts. The feds try to give everything to everybody - especially to their insider friends. Then, they go broke and everyone gets mad. And more thoughts... Just take a look at the TSA's new peek-a-boo screening machines. They probably do no more for the safety of Americans than US troops in Afghanistan. But, like the war, they make some people rich. Government officials - including many ex-congressmen - pushed hard for the machinery...despite much evidence that it didn't work...and then went to work for the manufacturer. This kind of soft corruption is so ubiquitous that the media barely thought it newsworthy. But thanks to TSA, the wars in Iraq and Afghanistan, medicare, shovel-ready stimulus projects and hundreds of other initiatives, a lot of people are a lot richer than they were a few years ago. Naturally, with so many greasy bones on the ground, no wonder the dogs fight. And, naturally, the inside dogs are soon the envy of the outsiders. The insiders...smart, well-connected hustlers...are able to move fast and take advantage of the opportunities as they present themselves. The outsiders - the lumpen, the middle and lower classes, the taxpayers, mooches, and patsies - get the scraps...if there are any left. One phenomenon that has been much discussed is the widening gap between rich and poor. Some economists think the gap itself causes financial crises. Others think it is merely "unfair" and needs to be addressed by government. Often they believe it is a consequence of a lack of intervention on the part of government. The feds shouldn't have cut taxes on the rich, they say. Or, the feds should have regulated Wall Street more effectively. Almost no economists have been able to identify the real cause of this wealth disparity. But it is obvious. It is explained by our theory... As far as we know, this is the first time it has been explained. So pay attention: as a wealth-producing society degenerates into a wealth redistributing society...and then finally, a wealth-destroying society, the difference between insiders and outsiders becomes more pronounced. A man with the right connections in Washington can get a juicy contract. Soon, he can be sipping coffee in Potomac, along with your editor. He has a huge advantage over the hoi polloi. He can leverage his insider status into million-dollar paydays. On a larger scale, let's look at the work of the US Federal Reserve. This insiders' bank is supposed to be working for the good of all. It didn't even exist during much of America's most productive, wealth- producing history. But now it fiddles US money and interest rates. For whose benefit? Again, it is obvious... It lends to insider banks below the rate of consumer price inflation. It has been doing so off and on for decades, and consistently for nearly the last 10 years. Even with free money coming their way, the bankers still manage to lose money, pay themselves fortunes and occasionally go broke. And then, the Fed steps in to bail them out. Pretty nice deal, huh? Less obvious, the Fed's easy money policies encourage asset price speculation. Today, the Fed gives the bankers money. The bankers put the money to work where they think they can earn fast profits - not in difficult and risky new business ventures, but by betting against the Fed itself. They buy commodities. Emerging markets. And debt too. This speculation provides no jobs to the working classes. In fact, it hurts them. It raises the cost of food and energy. "World moves closer to food shock," says one headline. "India may ban wheat exports," says another. "Grain prices soar as US slashes outlook," adds The Wall Street Journal. Corn is at a 30-month high. Brent Crude oil hit $98 yesterday. And the poor working stiff is stuck. His income is falling. His costs are rising. Meanwhile, the very few, very rich get richer. Their portfolios bulge with financial profits... And their businesses enjoy relatively low labor costs. This is the kind of situation, left unchecked, that leads to revolution. In Germany, the hyperinflation of the '20s led to street fighting...and the rise of Adolph Hitler. In France, hunger in the late 18th century led to the guillotine. More to come... Regards, Bill Bonner. for The Daily Reckoning Australia Similar Posts: Freddie Mac's Main Man is in the News Britain's Financial Sector Winding Down Feds are Getting Plenty of Taxpayer Support Depression: Where Mistakes are Recognized and Corrected Maybe the "Cartoon" House Period is Over

Precious Metals & the Dollar’s Next Big Move Posted: 13 Jan 2011 10:00 AM PST There is a potentially big setup in precious metals sector along with the dollar which looks like it is about to unfold.

Persons of Interest Posted: 13 Jan 2011 10:00 AM PST Additional losses were noted in gold prices overnight following Thursday's late afternoon long-liquidation slump in values.

George Soros Bought $64M in Gold in Q4 Posted: 13 Jan 2011 10:00 AM PST Gold and silver have fallen in most currencies today but are higher in the 'commodity currencies' of Canadian, Australian and New Zealand dollars, and flat in Swiss francs.

2011: Another Banner Year for Gold Posted: 13 Jan 2011 10:00 AM PST Despite a rocky start – with prices dipping briefly under $1,360 an ounce on Jan. 7 – 2011 promises to be another stellar year as the metal's bullish price drivers continue at full throttle.

Metals Move Lower in Listless Trade Posted: 13 Jan 2011 10:00 AM PST Gold prices hint the corrective upswing has run out of steam and open the door for renewed selling. However, confirmation of a downward reversal requires a daily close below support at a rising trend line set from late October, now at $1,366.62.

Economic Ruination from Money Creation to Price Inflation Posted: 13 Jan 2011 09:00 AM PST John Rubino at Dollar Collapse.com obviously thinks, like I do, that inflation is a Terrible, Terrible Thing (TTT). To prove it, and to simultaneously prove to my wife, kids, relatives, co-workers and neighbors that I am not the "weirdest man who ever lived" as concerns inflation, I call him up on the phone! A man whom I assume is Mr. Rubino answers, "Hello?" and I say, "John! John, old buddy, old pal! This is Mogambo, calling to verify that you are scared out of your freaking mind about how inflation is rising all around the world because central banks, similarly all around the world, are creating more and more money, which causes inflation in prices, which is made worse for foreigners by us dumbass Americans having a trade deficit of over $600 billion a year, equaling a third of combined global trade deficits, which means that we are buying actual things from foreigners and exporting $600 billion dollars overseas, increasing their money supplies and thus increasing their inflation in prices, meaning that we should be buying gold and silver with fevered abandon, and how the usual reaction to impending starvation by the masses is such that we should be building fortresses in our backyards, bristling with guns and cannons, and maybe some of those cool Agent 007 James Bond devices like, you know, smoke screens, ejector seats, laser beams, and heat-seeking rockets, because (my voice rising to crescendo) We're Freaking Doomed (WFD) thanks to the foul Federal Reserve creating so, so, so much freaking much money that it boggles the mind ('boing!') to even contemplate a Quantitative Easing II to effect an increase in the US money supply (to monetize government debt, no less!) of a whopping $600 billion in the next six months, of which half will end up overseas in the accounts of foreigners thanks to the trade deficit, who will use the money to buy US assets, thus repatriating the cash back to the USA to do its inflationary havoc whilst we strangely export the ownership of means of production to what I assume are sinister foreign forces, probably aligned with Illuminati conspirators, New World Order bozos, rogue government agents, extraterrestrial forces, Satan, or something. I mean, who really knows?" He then replies, tellingly, "What? Who?" whereupon the line abruptly went dead, also proving that the CIA and/or the FBI and/or unknown government agents and/or aliens from outer space are not only tapping my telephone, but doing a poor job of it, too! Anyway, I think Mr. Rubino's position is clear when he headlines his recent essay "'Bring us Sugar!' US Inflation And the Rest of the World", with the rest of the essay being about inflation breaking out all over the place! And if there is one thing that a Junior Mogambo Ranger (JMR) knows, it is to buy gold and silver when inflation is rising, as it is, and will, because the Federal Reserve is creating lots and lots of money, which means, as proved 100% reliable by 4,500 years of history, that inflation in prices is Super Freaking Guaranteed (SFG), and the higher the increase in the money supply, the higher the inflation. And, by that selfsame 4,500 years, it's also proved that gold and silver will soar in value as all else Turns To Crap (TTC). And with that kind of guaranteed and easy decision-making, what can you say except, "Whee! This investing stuff is easy!"? The Mogambo Guru for The Daily Reckoning Economic Ruination from Money Creation to Price Inflation 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."

More Than A Million Posted: 13 Jan 2011 08:42 AM PST Mercenary Links Roundup for Thursday, Jan 13th (below the jump). 01-13 Thursday 2011 to top 2010 record of 1 million foreclosures Housing Distress Pits Neighbor Against Neighbor S&P Melt Up Price Momentum: A Once In Never Event Bullish Sentiment Back to Highs Jobless claims jump, wholesale food costs surge | Reuters U.S. Markets Weigh a Rise in Jobless Claims – NYTimes.com Chinese Inflation Rises, Threatening Higher Consumer Prices Europe fears motives of Chinese super-creditor – Telegraph China eases corporate rules on renminbi Euro Gains on Trichet Comments – WSJ.com `Huge' Chile Inflation Concerns Prompt Switch to Rate Increase Predictions Foreigners Bet $600 Million Against Chile Peso Following Intervention Plan Canadian Dollar Declines as U.S. Jobs Report Damps North American Outlook Kenya Cellphone War Shows Lure of Africa's Rising Middle Class – WSJ.com Hezbollah Forces Collapse of Lebanese Government – NYTimes.com Growth hopes push oil within reach of $100 Mexico To Invest In Refining Capacity As Fuel Imports Soar Brisbane Faces Cleanup of 'Postwar' Proportion – WSJ.com Economists Become More Upbeat – WSJ.com Bernanke Says Higher Interest Rates Reflect Improved Economy S&P, Moody's Warn On U.S. Credit Rating – WSJ.com Grain Prices Soar as U.S. Slashes Outlook – WSJ.com Farm Belt Gets Some Help From Food Prices – Real Time Economics – WSJ Almond Breeze, Silk Pure Almond Spark Fight in Dairy Case – WSJ.com TARP Inspector: Citi Remains 'Too Big to Fail' – WSJ.com Citigroup Bailout Based on `Fear of the Unknown' – Bloomberg European Central Banks Keep Rates on Hold – NYTimes.com Spain Passes Debt Test With Bond Sale – NYTimes.com Euro zone escalation fears ease after Spain auction | Reuters New Round of Bank Stress Tests Planned in Europe – NYTimes.com Court Approves $7.2 Billion Madoff Settlement – NYTimes.com Hedge funds: Macrobatics | The Economist Trader Pay Tops Brain Surgeons' and Shows Gap Weathers Crisis U.S. Airports May Soon Test Body Scanner With Better Privacy Secret Service Study Probes Psyche of U.S. Assassins Binge Drinking More Common Among Wealthier Americans ~ ~

Gold Seeker Closing Report: Gold and Silver End Mixed; Fall After Hours Posted: 13 Jan 2011 07:10 AM PST Gold fell $8.35 to $1377.80 in Asia and London before it spiked up to see a $6.74 gain at $1392.89 in early New York trade and then dropped back down to see a loss of $7.20 at $1378.95 by a little before 11AM EST, but it then rallied back higher into the close and ended with a gain of 0.06%. Silver dropped to $29.122 and jumped up to $29.765 before it fell back off for most of the rest of trade and ended with a loss of 0.81%. Both metals have fallen to new lows in afterhours access trade at the time of writing.

Gold Mining Stocks Trendpower Posted: 13 Jan 2011 07:00 AM PST 24hgold

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