Gold World News Flash |
- Andrew Maguire provided testimony of bullion market manipulation, but apart from an accident the next day he all but disappeared… He claims to be legally gagged, but what case is he involved in?
- Double or Nothing
- Investing in Gold When Governments Take Action
- Broad Dollar Index Continues Sinking Lower
- US Dollar Update
- Jim's Mailbox
- Gold Seeker Closing Report: Gold and Silver Rise With Stocks and Oil
- New York Sun: Von NotHaus is Guilty But Bernanke is Innocent?
- Gold's record surge -- a rejection of capitalism?
- Gold Key to Financing Gadhafi Struggle
- For week ending 18 March 2011
- Silver Will Go To $100
- Congressman: "We're In Libya Because Of Oil"
- Financier Armstrong released after record imprisonment for contempt
- Good thing this isn't happening in the U.S. too
- Things
- When Gadhafi falls, does Libya's gold get leased at 1% per year?
- Worldwide Inflation Is Hitting Home
- Utah's Gold Coin Return
- Utah's Gold Coin Return
- Good Rocks in Bad Times
- Mickey Fulp: Double or Nothing
- New Oil Spill in Gulf ... 100-Mile Slick
- Broad Dollar Index continues sinking
- Gold & Silver Outlook, 2011
- Silver and Gold Prices Today Sort-of/Kind-of Broke Out to the Upside
- Aussie Boom at Risk
- Gold comes within a whisker of its all-time high
- International Turmoil: How the physical gold market is likely to be affected
- Huge psyops from FT sets stage for vilification of gold – to cover Britain's HUGE gold mistake
| Posted: 21 Mar 2011 07:08 PM PDT Share this:
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| Posted: 21 Mar 2011 06:06 PM PDT The peripatetic Mercenary Geologist Mickey Fulp covers a lot of territory in this Gold Report exclusive interview. He touches on why he looks forward to a correction in gold, and what criteria he uses to evaluate the "best of the best" stocks that he presents in his periodic Musings. Among them—if he can't see a double within 12 months, Mickey will walk on by.
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| Investing in Gold When Governments Take Action Posted: 21 Mar 2011 06:02 PM PDT I was kind of amused at the CNBC headline that read "Welfare State: Handouts Make Up One-Third of US Wages," as if this is something new. I mean, where have these CNBC weenies been the past decade?
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| Broad Dollar Index Continues Sinking Lower Posted: 21 Mar 2011 04:45 PM PDT Dear CIGAs, The Broad Dollar index is a much wider or "broader" representation of the plight of the US Dollar on the global markets as the basket from which the index is created is more representative of the globe than the smaller basket of currencies that comprise the USDX. Even at that, it still shows a very similiar pattern to the USDX and is also now technically within striking distance of its 2008 low having broken downside support near 97. It is highly unlikely that gold will not make a new lifetime high if this support level near 95 fails. I can easily see it above $1500 were this to occur. I also believe that the US Dollar is at levels that are now necessitating it to be watched very closely by the US monetary authorities. In much the same manner as the Yen went flying to the upside, so too the Dollar could go crashing to the downside if the speculators decide to sit on it in earnest. While the Fed and the US officials WANT a lower Dollar, they do not want a Dollar crash. Sometimes it is easier to talk about such things than to actually accomplish it. Should the Dollar carry trade increase in intensity, every hedge fund on the planet would be arrayed against the G7. That would be weird to say the least as the G7 monetary officials do not want the Yen any higher yet if they are not careful they may end up pushing the Dollar past the point of no return. What an awful stinking mess! Click chart to enlarge in PDF format with commentary from Trader Dan Norcini For further market analysis and commentary, please see Trader Dan's website at www.traderdan.net
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| Posted: 21 Mar 2011 04:42 PM PDT US Dollar Update Dear CIGAs, As has been the pattern over the last view trading sessions, the US Dollar has become the whipping boy for the global forex trading crowd. Today is was strength in the Euro which sent it lower. Talk is picking up that the next move in regards to interest rates by the ECB will be to raise them. That contrasts sharply with the situation around the US Dollar where rates will remain low for the immediate future. Given this fact, it is difficult to make a case for the Dollar right now as it moves ever closer to a long term inflection point on the charts. It is sitting only a mere 40-45 points from this support level with the RSI not yet in oversold territory. That alone is rather foreboding. Each blip higher in the Dollar has kept the RSI in a defined downtrend as indicated by the inability to break the downtrend line shown on that indicator. I also happen to believe that is one of the reasons that made it easy for the G7 to agree to a round of coordinated intervention. It might have also been to help the Dollar also! Had the Yen not been taken down, the Dollar would have crashed through a major support level. Click chart to enlarge in PDF format with commentary from Trader Dan Norcini For further market analysis and commentary, please see Trader Dan's website at www.traderdan.net
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| Posted: 21 Mar 2011 04:38 PM PDT Iran bought gold to cut dollar exposure Don't forget about China. Their purchases will be disclosed long after the fact. Iran has bought large amounts of gold in the international market, according to a senior Bank of England official, in a sign of how growing political pressure has driven Tehran to reduce its exposure to the US dollar. Andrew Bailey, head of banking at the Bank of England, told an American official that the central bank had observed "significant moves by Iran to purchase gold", according to a US diplomatic cable obtained by WikiLeaks and seen by the Financial Times. Source: ft.com
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| Gold Seeker Closing Report: Gold and Silver Rise With Stocks and Oil Posted: 21 Mar 2011 04:00 PM PDT Gold climbed to as high as $1434.84 in early New York trade before it fell back off a bit into the close, but it still ended with a gain of 0.7%. Silver surged to as high as $36.17 before it also fell back off, but it still ended with a gain of 2.71%.
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| New York Sun: Von NotHaus is Guilty But Bernanke is Innocent? Posted: 21 Mar 2011 03:44 PM PDT By C. Powell The New York Sun today editorializes brilliantly about the ironies in the conviction of Liberty Dollar founder Bernard von NotHaus. The editorial begins: "Here is a thought experiment concerning two men who have issued money. One issued gold and silver coins that will today bring more in dollars than he charged for them. The [...]
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| Gold's record surge -- a rejection of capitalism? Posted: 21 Mar 2011 01:43 PM PDT More like a yearning for a return to capitalism. * * * By John Melloy http://www.cnbc.com/id/42200235/ The gold trade has been pretty clear-cut for the last 30 -- even 1,000 -- years. The yellow metal with a nice weight to it has been a store of value against inflation. But something changed 2 1/2 years ago in the middle of the financial crisis. From 1976 to November 2008, when the consumer price index went up, so did gold, according to analysis by Alan Newman, editor of the Corsscurrents newsletter. Since then, gold has gone up when the CPI has contracted (deflation) or expanded (inflation). It begs the question: What does a purchase of gold represent? Surprisingly, many traders said it means an almost nihilistic rejection of our global market system. It keeps going up because more and more people don't want to play in a capitalist system where banks are still too big too fail, the Federal Reserve buys Treasuries in the open market, and countries openly, and in a coordinated fashion, try to devalue paper assets right before our eyes. ADVERTISEMENT Prophecy Resource Spins Off Platinum/Palladium Venture: Company Press Release, January 18, 2011 VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy. PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding. Following the transaction: -- Prophecy will own approximately 90 percent of PCNC. -- PCNC will consolidate its share capital on a 10 old for one new basis. -- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp. -- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings. Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000. For the complete announcement, please visit: http://prophecyresource.com/news_2011_jan18.php "I think of gold as a protest vote in the ballot box of capitalism," said Nicholas Colas, ConvergEx Group chief market strategist. "You don't necessarily think your candidate is going to win, but you want the people reading the election results to know you aren't happy with any of the pre-packaged choices." Bullion futures closed less than 1 percent from a record close Monday, up more than 80 percent from when its correlation with CPI ended, which coincidentally occurred during the aftermath of the biggest financial crisis since The Great Depression. "We see as much uncertainty about the future as we have seen in decades," wrote Newman in his latest newsletter. "Doubts about the housing market, the financial condition of consumers, the federal government, state governments, and municipalities are still quite apparent." Newman added, "The frauds of the complicit nature of Wall Street have shredded the confidence of investors." Last week the G-7 announced a coordinated effort to weaken the yen to boost Japan's economy in the wake of the tragic earthquake. The move has caused a breakdown in the dollar, which has already been on a downtrend since our own Federal Reserve began the purchase of $600 billion in Treasuries in order to keep interest rates artificially low. These interventions have made gold the asset class for those who feel this isn't really a free market played by the rules, so therefore paper assets aren't worth what Wall Street says they are. "The current price of gold represents a growing mistrust of all fiat currencies and, more specifically, a demotion of the U.S. dollar from its position as the safest asset," said Jim Iuorio, managing director of TJM Institutional Services. Add in geopolitical tension and it's hard to think of a scenario where gold goes down. That's what has some traders worried about it. "It is a trade that is called both a deflation hedge and an inflation hedge depending on whom you are listening to," said Josh Brown, money manager and author of The Reformed Broker blog. "For this reason, we can say gold is a trade with many different types of holders involved for a spectrum of different reasons and rationales. It will be fun watching them all try to squeeze through the exit at the same time." After all, unlike equities, which pay dividends and have a break-up value, or bonds, which have a principal and monthly coupon payments, gold is worth only as much as the next person is willing to pay for it. "Gold has no valuation, no metrics, no commercial use," said veteran commodities trader Dan Dicker. "It's the world's most respected ponzi scheme." Join GATA here: An Evening with Bill Murphy and James Turk 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, 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
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| Gold Key to Financing Gadhafi Struggle Posted: 21 Mar 2011 01:28 PM PDT By Jack Farchy and Roula Khalaf Financial Times, London Monday, March 21, 2011 http://www.ft.com/cms/s/0/588ce75a-53e4-11e0-8bd7-00144feab49a.html The international community has hit Mommar Gadhafi with a raft of sanctions and asset freezes aimed at cutting off his funding. But the embattled Libyan leader is sitting on a pot of gold. The Libyan central bank -- which is under Colonel Gadhafi's control -- holds 143.8 tonnes of gold, according to the latest data from the International Monetary Fund, although some suspect the true amount could be several tonnes higher. Those reserves, among the top 25 in the world, are worth more than $6.5 billion at current prices, enough to pay a small army of mercenaries for months or even years. While many central banks hold their gold reserves in international vaults in London, New York, or Switzerland, Libya's bullion is in the country, said people familiar with the country's activities in the gold market. U.S. and European govern...
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| Posted: 21 Mar 2011 01:14 PM PDT Technically Precious with Merv So, why hasn't gold shot up through the roof with all that's been going on lately? It's a good thing I'm a technician and don't have to come up with a WHY, as I don't have a clue why. Let's just go ahead and see where we are and possibly which way the wind is blowing. But first, the Merv's Venture 30 Index. S&P/TSX Venture 30 Index Since the development of my Merv's Penny Arcade Index I have often been asked if there is an ETF based upon this Index that speculators can buy and take advantage of its spectacular performance. Unfortunately there is no such ETF available. Well, this week there was an announcement in the media that just might satisfy these speculators. The news in this week's media (well, one of the news) was the introduction of the Global X S&P/TSX Venture 30 Canada ETF traded on the NYSE Acra (and hopefully soon on the TSX) with the symbol TSXV. This ETF is based upon the S&P/TSX Venture 30 Index, which is a...
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| Posted: 21 Mar 2011 01:02 PM PDT |
| Congressman: "We're In Libya Because Of Oil" Posted: 21 Mar 2011 01:01 PM PDT
Congressman Ed Markey said today:
Could that possibly explain why we're not letting the Arab League states take care of Libya? Remember that Alan Greenspan, John McCain, George W. Bush, a high-level National Security Council officer and others say that the Iraq war was really about oil. And according to French intelligence officers, the U.S. wanted to run an oil pipeline through Afghanistan to transport Central Asian oil more easily and cheaply. And so the U.S. told the Taliban shortly before 9/11 that they would either get "a carpet of gold or a carpet of bombs", the former if they gree
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| Financier Armstrong released after record imprisonment for contempt Posted: 21 Mar 2011 12:29 PM PDT Financier Martin Armstrong Released After 11 Years in Jail By Zeke Faux and David Glovin http://www.businessweek.com/news/2011-03-15/financier-martin-armstrong-r... Financier Martin Armstrong, jailed since January 2000 on civil and criminal charges stemming from what prosecutors said was a $700 million Ponzi scheme, was released from prison last week. Armstrong, the founder of now-defunct Princeton Economics International Ltd., will be confined to his home until his time in federal custody ends in September, said Chris Burke, a spokesman for the U.S. Federal Bureau of Prisons. Armstrong is permitted to leave for work and will check in periodically at a halfway house in the Philadelphia area. "I would like to thank everyone who has stood by me these many years," said a letter under Armstrong's name posted on the website MartinArmstrong.org. "What I have seen is the deep corruption that lingers through the political-financial system that threatens the future of my family and friends." ... Dispatch continues below ... ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Armstrong was jailed a record seven years for defying a judge's order to produce gold bars, coins, and other assets. His detention for contempt in a high-security Manhattan prison was the longest of its kind in a federal white-collar civil case. In 2006 Armstrong was sentenced to five more years in prison after pleading guilty to conspiracy in a related criminal case. He has repeatedly challenged his guilty plea. The former money manager built his reputation on his theory that economic cycles recur over centuries. His firm, which was based in Princeton, New Jersey, operated from an office overlooking Tokyo's Imperial Palace and grew to manage as much as $3 billion. Thomas Sjoblom, a lawyer who represented Armstrong when he was jailed for contempt, didn't immediately respond to a phone call and e-mail seeking comment. Armstrong's daughter didn't immediately respond to an e-mailed request for comment. Armstrong was charged in 1999 with defrauding mostly Japanese investors out of more than $700 million. In December 2001, Republic Securities, now a unit of HSBC Holdings Plc, pleaded guilty to helping Armstrong swindle Japanese clients and paid $569 million, then the largest reimbursement by any corporation to investors victimized in a fraud. Two ex-Republic employees and a former Armstrong worker also pleaded guilty. In the civil case, the Securities and Exchange Commission and the Commodity Futures Trading Commission sued Princeton Economics and Armstrong in 1999. The judge in that case jailed Armstrong in January 2000 for contempt after Armstrong refused to surrender $14.9 million in gold bars and rare coins. Armstrong said he didn't have them to turn over. While in prison, Armstrong said, he spent lengthy periods in isolation. A violent attack left him hospitalized in intensive care. Armstrong spent his first 7 1/2 years in a high-security federal detention center in Manhattan and the remainder of his sentence in a prison camp in New Jersey. The criminal case is U.S. v. Armstrong, 99-cr-997, U.S. District Court, Southern District of New York (Manhattan). Join GATA here: An Evening with Bill Murphy and James Turk 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 The Gold Standard Now: It Can Work Today a dollar is worth 80 percent less than it was 40 years ago, and less than 5 percent of its value a hundred years ago. We deserve a dollar that is as good as gold, a dollar that will hold its value from year to year so we can be financially secure and our economy can generate more and better jobs. For most of America's history, our dollar was literally as good as gold. But on August 15, 1971, our politicians destroyed the link between gold and the dollar. They destroyed the foundations of our economic system. A new Internet site, TheGoldStandardNow.org, provides news and cutting-edge analysis about this most important issue and explains how the gold standard worked in the past and how it can work in the future. Visit us today: http://www.thegoldstandardnow.org/about/137-welcome-newsmax
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| Good thing this isn't happening in the U.S. too Posted: 21 Mar 2011 12:20 PM PDT They'd tell us if it was, wouldn't they? * * * UK Households Face Biggest Income Fall Since 1970s as Inflation Bites By Emma Rowley http://www.telegraph.co.uk/finance/budget/8396640/UK-households-face-big... Britons are suffering their biggest drop in living standards for 30 years, according to a new report by the Institute for Fiscal Studies (IFS). The average household's "real" income -- what is coming in after inflation is taken into account -- will have fallen by 1.6 percent over the three years to the end of 2011, the influential think-tank said ahead of Wednesday's budget. In contrast, over the previous half a century, real incomes rose an average 1.6 percent a year, or 5 percent every three-year period. The study flags up the fragility of the UK's economy as it struggles out of the deepest recession since the 1930s. ... Dispatch continues below ... ADVERTISEMENT The Gold Standard Now: It Can Work Today a dollar is worth 80 percent less than it was 40 years ago, and less than 5 percent of its value a hundred years ago. We deserve a dollar that is as good as gold, a dollar that will hold its value from year to year so we can be financially secure and our economy can generate more and better jobs. For most of America's history, our dollar was literally as good as gold. But on August 15, 1971, our politicians destroyed the link between gold and the dollar. They destroyed the foundations of our economic system. A new Internet site, TheGoldStandardNow.org, provides news and cutting-edge analysis about this most important issue and explains how the gold standard worked in the past and how it can work in the future. Visit us today: http://www.thegoldstandardnow.org/about/137-welcome-newsmax The current decline marks the first drop in the average household's income over any three year period since the early 1990s, and represents the most dramatic fall seen since the start of the 1980s, the report said. The squeeze signals a loss for the average household of L360 a year, said the IFS, a hit totalling L1,080 over the three-year period. The IFS said the drivers of the fall in living standards were lower employment and people receiving less interest from their savings, as well as tax and benefit changes and stagnating real earnings -- pay after the eroding effects of inflation are taken into account. The decline means households are likely to be about 6 percent worse off than they would have been if the recession had not stopped incomes from rising normally, the think-tank said. The IFS warned that the situation is unlikely to improve soon, given the government's L111 billion austerity programme. James Browne, the report's author, said: "With real earnings growth slow, and more tax increases and benefit cuts to come, household incomes are likely to remain stagnant for some time." Household incomes will probably still be below their 2008 level in 2013, he predicted, putting incomes on track for the biggest fall over a five-year period since the early 1970s. A major factor behind the drop in living standards is the failure of people's earnings to keep pace with inflation, stressed the IFS, echoing the recent warning from Mervyn King, the governor of the Bank of England. Mr King said that the January VAT rise and other inflationary pressures meant that prices would likely outstrip pay again this year, leaving real wages no higher than they were six years ago. Not since the Depression-hit 1920s has a fall of such scale taken place, said the central banker. The problem is that the sluggish economic recovery and the weak jobs market means workers are in no position to demand pay rises to keep up with over-target inflation, so earnings are effectively being eroded. Figures out on Tuesday are expected to show that the squeeze continues. Economists predict that the Government's preferred measure of inflation, the consumer prices index (CPI), hit 4.2 percent in February, more than double the 2pc target and up from 4pc the previous month. January's VAT rise, the climbing oil price and other spikes in commodity prices are pushing up the cost of living in the UK. The retail prices index (RPI) measure, which includes more housing costs, should also edge up, from 5.1 to 5.2 percent. However, despite over-target inflation, the Bank of England has been reluctant to raise interest rates from their record 0.5 percent low, amid concerns doing so could slow growth dangerously and would do little to counter global pressures driving up the oil price and, as a result, the UK's inflation rate. The IFS study found that the poorest households are seeing real incomes fall by 2.1 percent between 2008 and 2011, a drop of L182 per year. The richest households fared relatively worse -- although they may feel the hit less -- seeing a fall of 3.8 percent over the three years, equivalent to an annual decline of L2,230. Join GATA here: An Evening with Bill Murphy and James Turk 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 Resource Spins Off Platinum/Palladium Venture: Company Press Release, January 18, 2011 VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy. PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding. Following the transaction: -- Prophecy will own approximately 90 percent of PCNC. -- PCNC will consolidate its share capital on a 10 old for one new basis. -- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp. -- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings. Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000. For the complete announcement, please visit: http://prophecyresource.com/news_2011_jan18.php
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| Posted: 21 Mar 2011 11:30 AM PDT The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! March 21, 2011 02:35 PM The “Terminally Ill” U.S. Dollar is teetering and very close to a major breakdown. At the same time there’s a chance it can reverse. But even if it did, the only party who doesn’t know it’s dead in the end is the dollar. [LIST] [*]What recovery? [*]I’ve spoken often about how China will use it’s position as a major creditor to further its own gains against the U.S. [*]Hard to disagree with Ron Paul. [*]When you read this, only one word comes to mind [/LIST] [url]http://www.grandich.com/[/url] grandich.com...
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| When Gadhafi falls, does Libya's gold get leased at 1% per year? Posted: 21 Mar 2011 11:26 AM PDT Or does it go straight to Morgan Chase? * * * Gold Key to Financing Gadhafi Struggle By Jack Farchy and Roula Khalaf http://www.ft.com/cms/s/0/588ce75a-53e4-11e0-8bd7-00144feab49a.html The international community has hit Mommar Gadhafi with a raft of sanctions and asset freezes aimed at cutting off his funding. But the embattled Libyan leader is sitting on a pot of gold. The Libyan central bank -- which is under Colonel Gadhafi's control -- holds 143.8 tonnes of gold, according to the latest data from the International Monetary Fund, although some suspect the true amount could be several tonnes higher. Those reserves, among the top 25 in the world, are worth more than $6.5 billion at current prices, enough to pay a small army of mercenaries for months or even years. While many central banks hold their gold reserves in international vaults in London, New York, or Switzerland, Libya's bullion is in the country, said people familiar with the country's activities in the gold market. ... Dispatch continues below ... ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf U.S. and European governments have frozen billions of dollars in Libyan assets, as sanctions have hit the central bank, sovereign wealth fund, and state oil company. But Libya's gold reserves may provide Gadhafi with a lifeline -- if he can sell them. To raise large amounts of money, bankers said, Gadhafi would have to transport the bullion out of Libya. Before violence broke out the gold was stored at the central bank in Tripoli. But since then it may have been moved to another location, such as the southern city of Sebha -- within reach of the borders with Chad and Niger. The political turbulence in the Middle East – besides boosting the price of gold to a record $1,444 a troy ounce -- has highlighted the property that has for centuries made gold so appealing to criminals, investors and dictators alike: It does not rely on a government for its value. Following the revolution in Egypt, the country banned gold exports for four months in order to prevent officials of the former government from moving their wealth abroad. At the same time, Iran has been quietly stocking up on gold in recent years, in an apparent attempt to shift away from the U.S. dollar and thus protect its reserves from risk of seizure. Other significant buyers of gold include China, Russia, and India. No international bank or trading house is likely to buy gold with any hint of a link to the Libyan regime, bankers said. "Physical trading houses are now quite reluctant to deal with countries that have been involved with conflict -- they don't know who's on the end of the trade," said one banker. But Gadhafi could transport the gold to Chad or Niger, where the gold could be swapped for currency transferred into a bank owned by the Libyan Foreign Bank -- a branch of the central bank. "If a country like Libya wants to make its gold liquid, it would probably be in the form of a swap -- whether for arms, food, or cash," said Walter de Wet, head of commodities research at Standard Bank. In addition to the gold reserves, Gadhafi may also have hoarded some cash from oil sales outside of the traditional channels. Join GATA here: An Evening with Bill Murphy and James Turk 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 The Gold Standard Now: It Can Work Today a dollar is worth 80 percent less than it was 40 years ago, and less than 5 percent of its value a hundred years ago. We deserve a dollar that is as good as gold, a dollar that will hold its value from year to year so we can be financially secure and our economy can generate more and better jobs. For most of America's history, our dollar was literally as good as gold. But on August 15, 1971, our politicians destroyed the link between gold and the dollar. They destroyed the foundations of our economic system. A new Internet site, TheGoldStandardNow.org, provides news and cutting-edge analysis about this most important issue and explains how the gold standard worked in the past and how it can work in the future. Visit us today: http://www.thegoldstandardnow.org/about/137-welcome-newsmax
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| Worldwide Inflation Is Hitting Home Posted: 21 Mar 2011 11:01 AM PDT
This article originally appeared in The Daily Capitalist. Whichever way you look at it, price inflation is climbing:
From the BLS:
This is not surprise to readers of The Daily Capitalist ("A Note on Inflation: It's Here"). A recent article by Austrian theory economist Frank Shostak put it very succinctly:
One need only look to the Fed's efforts at quantitative easing to see that they have injected massive amounts of money into the economy by purchases of US Treasury debt and paper issued by GSE's such as Fannie, Freddie, plus various privately issued mortgage backed securities. This has shown up in all indices of money supply measurement (M1, M2, and True (Austrian) Money Supply). For example this chart measures the CPI against the implementation of QE1 and QE2 (ongoing):
As you can see, the blue line, CPI, correlates well with the injection of money into the economy starting in November, 2008 for QE1 and in August, 2010 for QE2 (orange vertical lines). M2 (red) and M1 (black) rise and fall in tandem in relation to quantitative easing. Lest I am accused of confirmation bias or logical or empirical fallacies, the essence of Austrian theory is that an increase in money supply is in itself "inflation," and price inflation is one of its many negative results. There is an historical correlation between money supply and prices. The time lag varies, but the correlation is positive. And, as Dr. Shostak put it, it is easy to understand why. The big question as I discussed in my last article is whether or not there is sufficient money expansion from QE to cause price inflation. That is a money supply question. The Fed injected about $2.1 trillion up to June, 2010. Since then it has injected another $300 billion. The way to see this is through the Fed's balance sheet. They inject money into the system by buying assets on the open market. Lately they have been allowing certain mortgage-backed asset purchased in QE1 to expire on maturity and have been using that money and QE2 to buy US Treasury paper freshly issued by the government (monetization of federal debt). Here is a chart illustrating this:
To illustrate the emphasis the Fed has placed on Treasurys, these two charts show what is happening. The first chart shows the GSEs, etc, debt declining, and the second chart shows the increase in purchases of Treasurys.
I think the answer to my question, is that there is enough new money being pumped into the system to cause price inflation and the money supply indices demonstrate that. That is why we are seeing the CPI trend upward. The impact has been modest at present. This is one reason for the spike in food and oil prices (but not the sole reason). The reason we are not seeing higher inflation here#800000;">1 is that while the money supply has been expanding somewhat modestly as a result of QE, QE lacks the multiplier effect of bank credit expansion. M2 has increased only 4.1% in the past 12 months, and True Money Supply 2 has increased 10.3%. Look at the last 12 months of the Fed balance sheet, above. Bank lending is still in a funk:
The Fed's language may sound more cautious on inflation lately, but their goals are unchanged. The Fed would love to see more inflation because they confuse price inflation with economic expansion. This is of course a serious error that they make. They will continue to pump money into the system through quantitative easing. They believe that as long as wages remain subdued (they declined 0.5% in February, reflecting a trend of declining wages since June, 2010) and as long as capacity utilization remains low, they can print money without fearing significant price inflation. But that is about to change. But there is more to the story than just the Fed: the rest of the world (that counts) is inflating too. Eurostat (Europe's official statistical service) just announced that price inflation for the eurozone in February was up 2.4%, the highest since October, 2008. For the EU itself, it was up 2.8%. Germany had the highest increase in two years in February (0.5%) and 2.1% for the year. Output prices (at the factory gate; similar to our Producer Price Index) were up 5.3% for the eurozone. Most of these increases, according to the ECB, were driven by oil prices. ECB President Jean-Claude Trichet said, "The governing council remains prepared to act in a firm and timely manner to ensure that upside risks to price stability over the medium term do not materialize." I am sure he means well, but he should look at his own house to discover the reason for price inflation. If prices are going up because of supply/demand issues, what, pray tell, is the "proper price" for goods? If it is due to monetary inflation, then he needs to look in the mirror for the cause. China is having an even greater problem as their price inflation index rose 4.9% each in January and February. The last National People's Congress said the official price inflation rate should be 4% (up from 3% last year) which is a tacit admission that they have a problem controlling it. The People's Bank of China raised bank reserve requirements to 20% (10% here), the sixth rise in a year. They have also raised the lending and deposit rates three times since October. Housing prices are still rising. Of course, they flooded the economy with money and credit after their last housing bust. You've got to appreciate the naiveté of the Mandarins as they believe they can dictate the economic efforts of 1.5 (?) billion people. The point is that major economies of the world have been substantially pumping new money into their economies and it is having an impact on world prices, especially commodities, including oil and food. Too many pieces of paper chasing the same amount of goods. They are poised to step on the monetary brakes as China is doing now. We are seeing the impact of worldwide inflation on commodities and food here. Spillover, if you will, as a result of a coordinated international effort to revive national economies with monetary stimulus. So, while we can't get price inflation off the ground here, the world's inflation is creeping into our prices. Worldwide inflation will continue to put pressure on prices and impact our economy. At the same time money supply will continue to grow from QE input (true inflation). Both factors are contributing to price inflation. Inflation in turn is putting greater negative pressure on real savings (savings resulting from organic production, not from money printing) which is the reason why employment growth remains sluggish. Worldwide inflation is currently helping US exporters. As these inflating economies appear to grow they have been buying what appear to be cheap US products as a result of a cheap dollar (another impact of monetary inflation). One wonders what will happen to exporters as other nations tighten money supply to combat inflation; it can't be good. Since manufacturers, especially exporters, have been leading our economy, a combination of factors seems to be working against them. The prospect of eventual reduced foreign demand from slowing foreign economies will hit exporters hard, despite a declining dollar. And a shrinking pool of real savings at home sets limits to economic growth here. I believe the Fed and the government will respond to this with more fiscal and monetary stimulus. The result will be more inflation and economic stagnation.
#800000;">1. Other statistics show that the CPI is actually much higher than the official BLS report; see "A Note On Inflation: It's Here".
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| Posted: 21 Mar 2011 10:51 AM PDT |
| Posted: 21 Mar 2011 10:51 AM PDT |
| Posted: 21 Mar 2011 10:47 AM PDT |
| Mickey Fulp: Double or Nothing Posted: 21 Mar 2011 10:39 AM PDT Source: Karen Roche of The Gold Report 03/21/2011 The peripatetic Mercenary Geologist Mickey Fulp covers a lot of territory in this Gold Report exclusive interview. He touches on why he looks forward to a correction in gold, how some of his favorites in the still-hot rare earth element (REE) sector are faring, which company is ready to step up as a leader among the next generation's crop of REE juniors and what criteria he uses to evaluate the "best of the best" stocks that he presents in his periodic Musings. Among them—if he can't see a double within 12 months, Mickey will walk on by. The Gold Report: Returns from some of the companies you've written about since you launched Mercenary Musings in the summer of 2008 have been nothing short of astonishing. While some of the price appreciation came with the markets recovering from their 2008 lows, we see doubles, triples, quadruples, five and sixbaggers—even one twentybagger. Now that the markets have rebounded, how much ...
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| New Oil Spill in Gulf ... 100-Mile Slick Posted: 21 Mar 2011 10:33 AM PDT
A new 100-mile slick has been spotted in the Gulf, only 30 miles from the site of the Deepwater Horizon. See this, this, this, this, this, this, this, this, this, this and this and this: The Coast Guard says that it is probably "silt" instead of oil. While definitive chemical tests have not yet been conducted, and so silt can't be ruled out, many witnesses said that the substance had an oily smell. Moreover, it is hard to place too much confidence in the Coast Guard's opinion since, as I wrote last year:
Whether the slick is silt or oil, the important point - as I noted last year - is that big oil spills will keep happening if we keep on drilling in hard to get to locations without demanding that the rigs be operated safely. Indeed, the oil spills in the Gulf and the existence of unsafe nuclear power plants follow the exact same pattern as the financial crisis: As long as big companies know the government will bail them out if there's a "meltdown" and will help them cover up the scale of the accidents, as well as the fraud and corner-cutting which led to the disaster, they'll keep doing dangerous things which put our economy, our environment and our health at risk. The Japanese government is deferring to Tepco, just like the American government deferred to BP. As long as there is corporate socialism for the too big to fails and "tough love" for the rest of us, the big boys will continue to get into trouble. As long as the government uses claims of "national security" to protect the big energy companies and big banks, there won't be the transparency needed to ensure a free market and reasonable public accountability. Oh, and by the way, the effects of the Deepwater Horizon spill did not magically disappear. Here is a roundup of some of the news from the Gulf of Mexico from the first couple of weeks of March:
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| Broad Dollar Index continues sinking Posted: 21 Mar 2011 10:30 AM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] The Broad Dollar index is a much wider or "broader" representation of the plight of the US Dollar on the global markets as the basket from which the index is created is more representative of the globe than the smaller basket of currencies that comprise the USDX. Even at that, it still shows a very similiar pattern to the USDX and is also now technically within striking distance of its 2008 low having broken downside support near 97. It is highly unlikely that gold will not make a new lifetime high if this support level near 95 fails. I can easily see it above $1500 were this to occur. I also believe that the US Dollar is at levels that are now necessitating it to be watched very closely by the US monetary authorities. In much the same manner as the Yen went flying to the upside, so too the Dollar could go crashing to the downside if the speculators decide to sit on it in earnest. While the...
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| Gold & Silver Outlook, 2011 Posted: 21 Mar 2011 10:29 AM PDT |
| Silver and Gold Prices Today Sort-of/Kind-of Broke Out to the Upside Posted: 21 Mar 2011 10:29 AM PDT Gold Price Close Today : 1426.20 Change : 10.30 or 0.7% Silver Price Close Today : 36.002 Change : 94.2 cents or 2.7% Gold Silver Ratio Today : 39.61 Change : -0.771 or -1.9% Silver Gold Ratio Today : 0.02524 Change : 0.000482 or 1.9% Platinum Price Close Today : 1746.90 Change : 23.30 or 1.4% Palladium Price Close Today : 747.40 Change : 16.50 or 2.3% S&P 500 : 1,298.38 Change : 19.18 or 1.5% Dow In GOLD$ : $174.46 Change : $ 1.35 or 0.8% Dow in GOLD oz : 8.440 Change : 0.065 or 0.8% Dow in SILVER oz : 334.33 Change : 4.86 or 1.5% Dow Industrial : 12,036.53 Change : 178.01 or 1.5% US Dollar Index : 75.42 Change : -0.219 or -0.3% SILVER and GOLD PRICES today sort-of/kind-of broke out to the upside. Don't get all sweaty, now, they still need to confirm the move with higher closes, but certainly it's a start. To clarify for y'all the issues, consider: the deadly double top. A B-wave or upward reaction that's part of an A-B-C corrective wave, can appear very, very strong. It can make a double top. That is a fatal cap on any market, followed by loads of down-time. On the other hand, if it clears that last top, then it has broken out upward, and we just don't know until (a) it confirms the breakout with a close 2% above it, or (b) it makes the double top then fails to pierce and breaks down. I am not ashamed to admit I don't know yet which way 'twill break. The GOLD PRICE closed over its 20 DMA ($1,416.50) on Comex, adding $10.30 to $1,426.20 -- above $1,425 resistance. And the MACD may be turning up. There's a good chance that gold will clear $1,435 and make another large rally, $1,500, maybe $1,600, but first it must clear $1,435. However, today probably marked the end of an upleg, so gold might fiddle sideways a day or two before continuing upward. A close below $1,405 negates all that upward hopefulness. That silver is relentless. Since last Wednesday's low about 3360c it has climbed to a high today at 3618c. Comes gave it another 94.2c today [sic] for a 3600.2c close. Silver's strength has taken the gold/silver ratio back down near its low. Closing ratio today was 39.614. Even if silver aims to move higher from here, tomorrow it will likely remain calm or even fall a bit, trying to digest the last days' gains. Rubbing in what I wrote on Friday about never selling a bull market position -- if you had looked at silver and gold last week, you'd have bet respectable money they were headed lower. If so, and you had sold your long-term bull market position, you'd be keening, wailing, and mourning today. As I said, if you can pick the primary trend and ride it, that's plenty profitable enough. Don't worry about catching the little zigs and zags of trading. What a difference perspective makes! Portfolios and plans it makes or breaks! Behold, the Dow Jones Industrial Average. Up a monstrous (in its Middle-English sense) 178.01 points or 1.5% to 12,036.53. Wow-O-wow. Sounds peppy, don't it? Until you look at a chart and the numbers. Dow's recent peak was around 12,400. Today's high roughly reaches a little less than the common 61.2% correction. And gazing at the graph even one who cannot ken Picasso grasps at once the INTACT downtrend line from that February high. Yes, yes, it did touch the 20 day moving average (12,048.75) today, but didn't close through it. Closed by pennies above the 50 DMA (12,022.13). Stocks remain locked in a downtrend, paid cheerleaders notwithstanding. I'd as soon buy stocks now as take a goblet of wine from the hand of Lucretia Borgia. Fellow mushrooms, what do y'all want to bet that all the central banks are working together to squash the yen's rise? From 128.79 cents per 100 yen (77.645 yen per dollar) to 123.35 (81.07 yen per dollar). 'Tain't no accidents in currency exchange rates. US DOLLAR INDEX lost another 21.9 basis points (0.28%) today and now trades at 75.42. Clearly the Japanese earthquake has helped speed the dollar along its journey to the center of the earth. 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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| Posted: 21 Mar 2011 10:26 AM PDT |
| Gold comes within a whisker of its all-time high Posted: 21 Mar 2011 10:24 AM PDT by Frank Tang Gold trimmed early gains, following oil, but the metal stayed within a whisker of its record $1,444.40 an ounce set on March 7. A 1 per cent rise in oil prices was enough to stoke inflation worries that helped keep gold aloft, analysts said. Silver soared nearly 3 per cent on strong industrial demand and near-term supply tightness, more than recouping last week's sharp losses. "Tensions in Libya are prompting people to move money out of dollar-based assets and going for the safe play, which is buying gold and silver, as both are benefiting in a really big way today," said Zachary Oxman, managing director of TrendMax Futures. … Reflecting bullishness among silver producers, Primero Mining Corp said it bought call options at an average strike price of $39 to cover its silver sales agreement to another miner, Silver Wheaton. Total COMEX futures turnover was about 15 per cent below its 30-day average and Friday's volume. U.S. futures volume has been weaker than usual after a spike following last Tuesday's sharp downward move. … Adam Hewison, president of MarketClub.com, said his technical models indicated gold could remain in a trading range as it builds up energy for its next upward move. [source]
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| International Turmoil: How the physical gold market is likely to be affected Posted: 21 Mar 2011 10:12 AM PDT by Peter A. Grant The first quarter of the new year has been a tumultuous one, marked by geopolitical unrest in North Africa and the Middle East, major natural disasters in New Zealand and most recently in Japan, and of course ongoing economic turmoil throughout much of the industrialized world. This has resulted in rather extreme market volatility, amid fits of risk aversion associated with broad-based uncertainty about the likely impact of recent events. Most importantly, our hearts go out to the people of the world who are suffering right now; be it due to political repression, natural disaster or economic hardship. However, in this increasingly interconnected world, it is important to remember that events on the other side of the world can indeed have a significant impact right here at home. Faced with the harsh reality that global markets have no sympathy, savers and investors the world-over need to make decisions that protect their interests an...
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| Huge psyops from FT sets stage for vilification of gold – to cover Britain's HUGE gold mistake Posted: 21 Mar 2011 10:04 AM PDT Gold key to financing Gaddafi struggle MK: To cover the embarrassment of Gordon Brown – committing what some consider to be the worst trade of the century – selling 1/2 of Britain's gold at $250 (a multi-decade low), Britain is now engaging in a full scale pysops attempting to equate gold with bad guys. Share [...]
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