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- The Day of Gold-Plated Public Sector Pensions are Numbered
- Gold Mining Stocks Trendpower
- Oil Shock and the U.S. Dollar
- 4 Ways to Profit Now From $100 Oil
- The Implications of The U.S. Dollar Testing Lows While Precious Metals Soar to New Highs
- Bailing Out of Gold Miners
- The Looming Muni-Bond Meltdown: Profit From the Collapse - And From the Rebound
- SLV ishares Silver Calls - Looks bullish (shocking)
- Gold bars worth $1.9M sought by police
- Silver Outweighs Gold
- Taps for the Dollar
- China Gold Demand Voracious - Chinese Yuan Gold Standard?
- Euro-Gold Drops 1% in 30 Mins as Trichet Vows "Strong Vigilance", Possible Rate-Hike in April
- Raid Coming....
- America’s Secret $365 Billion Asset: GOLD
- Bang Bang, Maxwell Silver Hammer
- <p>A grotesque transfer of wealth</p>
- Boise County files for bankruptcy
- China "Attacks The Dollar" - Moves To Further Cement Renminbi Reserve Currency Status
- The Dollar Collapse Will Shock the World: James Turk
- Despite rising gold price, Barrick won't hedge anymore, CEO says
- A Conspiracy with a Silver Lining
- The Silver Log [03.01.2011] - Silver in Two different markets
- Paul jousts with Bernanke but presses no gold questions
| The Day of Gold-Plated Public Sector Pensions are Numbered Posted: 03 Mar 2011 07:08 AM PST The 'workforce elite' in America today are public sector employees and they, led by state and municipal unionized workers, are now in open revolt to preserve their special status, and the status quo. Wisconsin is the current case study in what happens when the government, a monopoly service provider, confronts the fact that the taxpayer is tapped out and can't take it anymore – and there simply isn't enough money anymore. Those realities are going to result in major adjustments in worker incomes, future pensions and benefits and their overall standard of living. Let me explain. Words: 1958 | ||
| Posted: 03 Mar 2011 07:00 AM PST 24hgold | ||
| Posted: 03 Mar 2011 06:59 AM PST Evariste Lefeuvre submits: The traditional way of analyzing the link between an oil shock and the USD goes back to Krugman (1983). There are two channels through which higher oil prices will impact the dollar: 1. Relative demand for goods: if US oil imports are bigger than OPEC imports of US goods and services (due, for instance, to a high domestic saving rate in oil exporting countries), the USD will fall in the wake of an oil shock. 2. Relative demand for assets: if OPEC members invest their surpluses in USD denominated assets, the oil shock may be neutral on the USD. Note that many oil exporters actually peg their currency against USD. Some have baskets (Russia) and may diversify (EUR), which has a negative impact on USD. According to Krugman, assets matters for the short run and goods for the long run (it take time before the country adjusts Complete Story » | ||
| 4 Ways to Profit Now From $100 Oil Posted: 03 Mar 2011 06:56 AM PST Igor Greenwald submits: My calendar is getting crowded. Tomorrow has been designated another Day of Rage in Iraq, despite 23 deaths in the last one. March 11 is bigger still, marking the first such event in oil kingpin Saudi Arabia. And every day is now a day of rage in Libya, Yemen, Oman, and Bahrain. I have no idea what the turnout — or the consequences — will be next week in Saudi Arabia, and neither do the absolutist kingdom's secret policemen, nor the activists who started the relevant Facebook page. One of the more amusing rumors to spring from the popular Arab uprising has Saudi King Abdullah planning to buy Facebook to squelch the protests. From that extra-long limb, it's just a short jump to the Israeli underground bunker being used to orchestrate the unrest, as the Yemeni president claims. There was another, much more ominous rumor circulating Wednesday about the violent Complete Story » | ||
| The Implications of The U.S. Dollar Testing Lows While Precious Metals Soar to New Highs Posted: 03 Mar 2011 06:55 AM PST Jeb Handwerger submits: The gold (GLD) and silver (SLV) meteor keeps soaring in the skies over Wall Street as the US dollar (UUP) is parachuting into new lows. The spot price of silver this week broke $34.40, zooming into a record high area unseen since 1980. On March 1, gold followed its poorer brother by breaking out at $1425. The US dollar is challenging all-time lows. It does not take a PhD from Princeton to realize that there may be a problem here. Maybe the recent radical central bank actions should be reconsidered? True, 401(k)'s look good, but it has come at the expense of significant dollar debasement. The million dollar question: Stampede or showdown? Will gold and silver continue to stampede into new highs making considerable gains or will the struggling dollar reaching record lows make a showdown, putting a ceiling on the precious metals rise? Some naysayers claim that there is Complete Story » | ||
| Posted: 03 Mar 2011 06:48 AM PST Hard Assets Investor submits: By Brad Zigler Earlier this week, we pondered the implications of company officers buying a certain junior mining stock. The article ("Insiders Buy A Gold Junior; Should You?") featured a chart showing the relative performance of mining stocks — collectively represented by the Market Vectors Gold Miners ETF (GDX) and the Market Vectors Junior Gold Miners ETF (GDXJ) — to gold itself. Gold Miners' Relative Strength Vs. Gold As the chart indicates, juniors are slumping, but established producers have been positively (or, more accurately, negatively) anguid compared with bullion. Just ask an owner of Kinross Gold Corp. (KGC) or Newmont Mining Corp. (NEM), which are both top 10 holdings of the GDX portfolio. Kinross is down 17.7 percent this year alone, while Newmont's off 10.9 percent. Long-term owners of these stocks have piggybacked on bullion's good fortunes, but more recent acquirers have been disappointed with the issues' recent performance. For Complete Story » | ||
| The Looming Muni-Bond Meltdown: Profit From the Collapse - And From the Rebound Posted: 03 Mar 2011 05:22 AM PST Shah Gilani submits: Hedge funds are stalking the $2.9 trillion municipal-bond market like an alley cat stalks a mouse. In their public statements, Wall Street shills continue to dismiss warnings about "deadbeat states," and the horrific impact that budgetary shortfalls at the state and local level are going to have on this stodgy slice of the debt market. Anyone who tries to buck this Wall Street view is ridiculed and dismissed as a financial Cassandra. Behind the so-called "velvet rope," however, some hedge funds not only believe that financial catastrophe looms in the muni-bond market; they're positioning themselves for the kill ... and for the obscene profits they'll reap when this "inevitable" disaster strikes. But why should hedge funds be the only beneficiaries? I'm going to outline a strategy that promises at least two very generous hedge-fund-style plays related to municipal bonds. At the very least, you can use these strategies to protect Complete Story » | ||
| SLV ishares Silver Calls - Looks bullish (shocking) Posted: 03 Mar 2011 03:03 AM PST Nothing has changed, bets being placed for an increase again come April contract. | ||
| Gold bars worth $1.9M sought by police Posted: 03 Mar 2011 01:55 AM PST Toronto police are appealing to the public to help them find $1.9 million in distinctive gold bars they say were "fraudulently obtained." The bars were bought in Montreal sometime between Feb. 9 and Feb. 11, a police release says. A "fraudulently obtained" bank draft in the amount of $1,895,751 was used to purchase the bars, police said. The purchase included 75 gold bars, weighing 10 ounces each, that were manufactured by the Perth Mint in Australia. Investigators allege Senthuran Kanapathipillai, 32, of Toronto, had one of the gold bars and was charged with possession of property obtained by crime. Police say Thevarajah Thambipillai, 55, of Toronto, tried to sell one of the bars and was charged with possession of property obtained by crime. "Members of the public working in the jewelry and metal industry are being advised of the possibility that persons may attempt to pass these fraudulently obtained gold bars at their places of business," police said. The bars bear the symbol of the Perth Mint on one side and kangaroos imprinted on the back, police said. The Canadian Bankers Association is offering a $50,000 reward for anyone who can provide information that leads to the recovery of the bars, and the arrest and conviction of anyone involved. End of Story ContentBack to accessibility links http://www.cbc.ca/news/canada/toront...d-bars682.html | ||
| Posted: 03 Mar 2011 01:47 AM PST | ||
| Posted: 03 Mar 2011 01:44 AM PST Delta Global Advisors | ||
| China Gold Demand Voracious - Chinese Yuan Gold Standard? Posted: 03 Mar 2011 01:41 AM PST | ||
| Euro-Gold Drops 1% in 30 Mins as Trichet Vows "Strong Vigilance", Possible Rate-Hike in April Posted: 03 Mar 2011 01:19 AM PST | ||
| Posted: 02 Mar 2011 11:38 PM PST Watch out below. Buy the dips, wouldn't doubt $33.50 coming soon. Weekly chart needs to be painted again...how this is correlating with the $US just getting SMOKED is beyond me. Wow. UPDATE: Rumors of another margin hike tomorrow, this is getting way out of hand for Blythe. Oh, and Copper didnt get the memo that gold/silver did. UPDATE: Trichet thinks hes going to raise rates (highly | ||
| America’s Secret $365 Billion Asset: GOLD Posted: 02 Mar 2011 11:36 PM PST Gross, On Wednesday March 2, 2011, 2:19 pm EST With the U.S. facing large, structural deficits, analysts of all stripes are taking an inventory of the nation's assets and liabilities. Mary Meeker, famed for her coverage of Internet stocks, has produced a long presentation on the nation's balance sheet, as if it were a private-sector company. Historian Niall Ferguson suggests in Newsweek that the U.S. start selling off some of its assets. "The U.S. government currently has $233 billion worth of non-defense 'property, plant and equipment'," he noted. Plus there's land, power-generating assets and roads. (As if somebody would buy I-95). On Tuesday, word came that President Obama is set to propose setting up a board to look at whether the U.S. can sell off some of its real estate holdings, a move that might raise some $15 billion. But they're missing a big source. To quote the Seinfeld character Kenny Bania: "That's gold, Jerry. Gold!" For a good chunk of its modern history, the U.S. was on the gold standard. That meant the Treasury and central bank had to keep a ready supply of the metal on hand in case anybody wanted to turn in paper money for bullion. While the U.S. left the gold standard for good in 1973, it has held on to its stash of what economist John Maynard Keynes called a "barbarous relic." And so there's lots of it lying around, in Fort Knox in the fortress-like Federal Reserve Bank of New York, in various U.S. Mint operations. Some of it is used to make gold coins. But most of it is in bullion. Tons of it As of January 31, the government had 2.9 million troy ounces of gold coins and nearly 259 million troy ounces of gold bullion, for a total of 261.5 million troy ounces. (There are 14.583 troy ounces in a pound). The government's reports on gold holdings can be seen here. The gold stash represents an enormous storehouse of value. That's because the government carries gold on its balance sheet at a book value of just $42.2222 per troy ounce, which was the price of gold in 1973 when Richard Nixon decoupled it from the U.S. currency. But gold trades today at about $1,433 per troy ounce. The upshot: Although it is loath to admit it, the U.S. has about $375 billion worth of gold. The Red, White and Yellow Metal So what should be done with this asset? At the very least, the U.S. should consider marking its position to the market, rather than to the 1973 price of gold. If the Fed and the Treasury were to write up the value of their gold holdings, it would certainly improve the ratio between national assets and national liabilities. (Meeker's dire analysis, for example, doesn't seem to account for the present-day value of the nation's gold.) Other countries may already be moving in that direction. The Financial Times reported on Tuesday that Italian banks are pressuring the Italian central bank to do just that with its reserve gold. The reasoning: Italy's banks hold shares in the central bank. Having those shares reflect the market value of the assets held by the central bank might spare private banks from having to raise fresh capital. (While we're at it, here's another asset the taxpayers have that frequently goes uncounted: The Strategic Petroleum Reserve currently has 726.5 million barrels, divided between 292.5 million barrels of sweet crude and 434 million barrels of sour crude. With oil at $100 per barrel, that's worth $72.65 billion.) For obvious reasons, the U.S. needs to hold on to its emergency supply of oil. But why not consider selling at least some of the gold? The International Monetary Fund in 2009 authorized the sale of about 13.7 million ounces, or about 12 percent of its holdings. It has since sold a large chunk of its holdings (200 metric tons) to India's central bank, and in February 2010 began to sell gold into the market. Those sales haven't hampered the ability of the IMF to perform its role, and they haven't sandbagged the gold market. The U.S. isn't going back to the gold standard anytime soon (sorry, Ron Paul & Co.) and it costs money to secure the heavy metal. We need the money badly, and we'd be selling into a very hot market. Critics (including Rep. Paul) have charged that policies of the Federal Reserve have hurt consumers and taxpayers by boosting the money supply and contributing to the rise in price of hard assets like gold. But America's taxpayers collectively own nearly 9,000 tons of the precious metal. If the government simply marked this asset to current market values, taxpayers would become among the biggest beneficiaries of the rise in gold. Of course, there are plenty of good reasons not to sell off our national treasure. Asset sales are a classic one-shot technique — they improve the current year fiscal situation while papering over recurring structural problems. Plus, even if the U.S. were to dump all its gold tomorrow at the current price, the revenues would only cover a small chunk of this year's deficit. And while currencies come and go, gold has been the agreed-upon storehouse of value for millennium. Ultimately, it's a bad idea to hold a clearance sale on the nation's gold for the same reason it would be to sell off Yellowstone Park or the Tennessee Valley Authority. All represent valuable assets that were intended to be held in trust for future generations. http://finance.yahoo.com/news/Americ...&sset=&ccode= | ||
| Bang Bang, Maxwell Silver Hammer Posted: 02 Mar 2011 09:59 PM PST
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| <p>A grotesque transfer of wealth</p> Posted: 02 Mar 2011 08:43 PM PST From Ireland to America, the financial meltdown is all to clear to see. Bill Bonner looks at where all the money went and who's to blame. | ||
| Boise County files for bankruptcy Posted: 02 Mar 2011 08:30 PM PST Image:  Here's Scott's second story of the day which was posted on the idahostateman.com website yesterday. In a move rare in the United States and perhaps unprecedented in Idaho, Boise County is filing for federal protection against a multimillion dollar judgment. "This was not our first option. This was our last option," said Jamie Anderson, chairwoman of the three-member Boise County Board of Commissioners. "This protects us so we can continue to operate." | ||
| China "Attacks The Dollar" - Moves To Further Cement Renminbi Reserve Currency Status Posted: 02 Mar 2011 08:30 PM PST Image:  Reader Norbert Wangnick was the first one through the door with a Bloomberg story on this...but I'm going to use the zerohedge.com link for it that reader 'David in California' sent me...as TD's preamble is worth the read. | ||
| The Dollar Collapse Will Shock the World: James Turk Posted: 02 Mar 2011 08:30 PM PST Image:  Interviewed yesterday by King World News, GoldMoney founder and GATA consultant James Turk remarked that since gold has been rising even as the dollar has been steady, the dollar's collapse likely would cause gold to soar -- and a dollar collapse looks imminent to Turk. | ||
| Despite rising gold price, Barrick won't hedge anymore, CEO says Posted: 02 Mar 2011 08:30 PM PST Image:  I've ripped this Bloomberg story, along with Chris Powell's preamble, from a GATA release yesterday... Interviewed by Bloomberg Television's Adam Johnson at the BMO Capital Markets Global Metals and Mining Conference in Hollywood, Florida, Barrick Gold CEO Aaron Regent insisted that the company, once infamous for hedging its gold production to help central banks control the gold market, won't hedge anymore despite gold's rising price. | ||
| A Conspiracy with a Silver Lining Posted: 02 Mar 2011 08:30 PM PST SLV adds 2,277,591 troy ounces of silver. U.S. Mint reduces delivery of silver eagles. Royal Canadian Mint no longer taking orders for silver Maple Leafs. China "Attacks The Dollar"...and much more. ¤ Yesterday in Gold and SilverThe gold price trading action on Wednesday was pretty quiet. The low came during the lunch hour in Hong Kong...and from that point, didn't do much until just after the London a.m. gold fix. Then the gold price began to rise slowly but steadily...hitting its zenith [$1,441.30 spot] just minutes before lunchtime in New York. From there it got sold off, but recovered a bit going into the close...and finished up about three bucks from Tuesday.
Silver's trading pattern was virtually a carbon copy of gold's...except that silver's low price print occurred around the London open at 8:00 a.m. GMT. Silver's high tick [$35.02 spot] was at the same time as gold's...and the post-high price action in silver was identical to gold's...except that silver closed down a few pennies from Tuesday.
The world's reserve currency rose about fifteen basis points beginning at the Far East open...with the high price of the day [around 77.17 cents] coming shortly after 3:00 p.m. Hong Kong time...7:00 a.m. in London. Then, for the next eight hours, the dollar fell about sixty-five basis points, with its low coming shortly after 10:30 a.m. Eastern. From there it recovered about ten basis points going into the New York close. To say that the dollar's fall precipitated the gold rally is more than a bit of stretch...as the gold rally began after the dollar began its decline...and ended about ninety minutes after the dollar's low price was in.
In a word, I'd say that the gold and silver stocks traded nervously yesterday. The HUI was all over the place on both sides of unchanged...and closed a hair in the black, up 0.17%.
The CME's Daily Delivery Report was a big surprise again yesterday...as the thought of zero deliveries in both gold and silver was not a scenario that ever entered my mind...but that's what the report showed. I don't remember a delivery report like this...ever. What is going on under the hood of the silver and gold market is starting to make me nervous. Here's the link to yesterday's report so you can see it for yourself. The GLD ETF reported no change for the second day in a row...but over at the SLV ETF, it was a different story entirely as 2,277,591 troy ounces of silver were added. That's a fairly large chunk...and Ted says that they're owed many millions more. The U.S. Mint also had their first sales report of the new month...and they reported selling 6,000 one-ounce gold eagles...but no silver eagles. While on the subject of silver eagles...here's a chart that Washington state reader S.A. sent my way yesterday. One of these days even $37 silver eagles are going to seem cheap. I hope you have your share.
One more thing about silver bullion coins before I move on. I forgot to mention in this column yesterday that the Royal Canadian Mint is no longer taking orders for silver Maple Leafs at the moment. This development shouldn't surprise anyone. And the news is out that the U.S. Mint has now reduced its delivery schedule for silver eagle coins. The story on that is in the 'Critical Reads' a bit further down. Over at the Comex-approved warehouses, it was a busy day for them on March 1st...as 1,217,844 ounces of silver were taken in at Brink's, Inc...and 262,616 ounces were shipped out of HSBC USA...for a net addition of 954,266 troy ounces. Ted Butler figures that they're getting ready to deliver a big shipment off the exchange...and had to bring in the silver to do it, as none of current owners were prepared to sell at these low prices. The link to the action is here.
¤ Critical ReadsSubscribeJPMorgan Fighting 10,000 LawsuitsI have a lot of stories today...even more than yesterday...and a lot of them are well worth your time. Yesterday I ran a short cnbc.com piece about the 10,000 lawsuits that had been filed against JPMorgan. Well, here's another story on this, but this one shines far more light on it. The New York-based bank's legal woes range from individual actions against JPMorgan Chase to class actions with "potentially millions" of litigants to "regulatory/government investigations."The suits include common law tort and contract claims, statutory antitrust claims, securities claims and consumer protection claims, the bank said in its 10-K filing with the Securities and Exchange Commission. Gee, I wonder what "regulatory/government investigations" and they may be referring to? Silver perhaps? It's a short read, which is well worth your time...and I thank GATA board member Adrian Douglas for sharing this with us...and the link to the story, posted over at thestreet.com, is here.  Fed Treasury Purchases `Monetizing Debt,' May Spur Inflation, Hoenig SaysThis is no surprise, of course, but it's nice to hear it come from someone at the Fed. "Yes, we are monetizing debt," Hoenig said in a speech to the Council on Foreign Relations in New York yesterday. "You buy bonds and you monetize debt. Right now, a lot of that is going into excess reserves so it is not having an immediate effect on inflation. It will initiate inflationary impulses. It takes time." They're out of time, as price inflation because of currency debasement is now rampant on the planet. I thank reader Scott Pluschau for sending this my way...and the link to the Bloomberg story is here.  Boise County files for bankruptcyHere's Scott's second story of the day which was posted on the idahostateman.com website yesterday. In a move rare in the United States and perhaps unprecedented in Idaho, Boise County is filing for federal protection against a multimillion dollar judgment. "This was not our first option. This was our last option," said Jamie Anderson, chairwoman of the three-member Boise County Board of Commissioners. "This protects us so we can continue to operate." I'm sure they won't be the last county to hide behind Chapter 9 bankruptcy laws...and the link is here.  China "Attacks The Dollar" - Moves To Further Cement Renminbi Reserve Currency StatusReader Norbert Wangnick was the first one through the door with a Bloomberg story on this...but I'm going to use the zerohedge.com link for it that reader 'David in California' sent me...as TD's preamble is worth the read. An announcement appeared shortly after midnight on the website of the People's Bank of China. Reuters provides a simple translation and summary of the announcement: "China hopes to allow all exporters and importers to settle their cross-border trades in the yuan by this year, the central bank said on Wednesday, as part of plans to grow the currency's international role. In a statement on its website www.pbc.gov.cn, the central bank said it would respond to overseas demand for the yuan to be used as a reserve currency. It added it would also allow the yuan to flow back into China more easily." This piece of news received a mere two paragraph blurb on Reuters...and not much more on Bloomberg...and was thoroughly ignored by the broader media. This is a longish read...but it's well worth your time, as this will pretty much drive a stake through the heart of the U.S. dollar in the long term...and maybe even in a shorter time frame than that. The link is here.  The Dollar Collapse Will Shock the World: James TurkInterviewed yesterday by King World News, GoldMoney founder and GATA consultant James Turk remarked that since gold has been rising even as the dollar has been steady, the dollar's collapse likely would cause gold to soar -- and a dollar collapse looks imminent to Turk. James gave that interview long before the previous story on China's attack on the dollar was in the public domain, so his dollar collapse may come sooner than even he expects. Time will tell. The link to this short blog is here...and it's a must read.  Saudi Arabia sends tanks to riot-hit BahrainMy next story was one that I stole out of yesterday's King Report. Eyewitnesses reported seeing "15 tank carriers carrying two tanks each heading towards Bahrain" along the 25-km King Fahd causeway, which links the small island nation of Bahrain to Saudi Arabia. The story is posted over at the en.rain.ru website...and the link is here.  Paul jousts with Bernanke but presses no gold questionsThat's the title from the GATA release on this story...but I'm going to use the zerohedge.com piece that was sent to me by reader George Findlay...as the TD's preamble is worth the read. The Zero Hedge title reads "Watch The Highlight Of Today's Congressional Hearing: Ron Paul vs. The Bernank"...and the link is here.  U.S. Mint reduces delivery of silver eaglesThis was the story I mentioned further up in this column in the 'Yesterday in Gold and Silver' section. This is a GATA release...and I'm posting this in order to save myself the trouble of writing the preamble...as Chris Powell has already done the | ||
| The Silver Log [03.01.2011] - Silver in Two different markets Posted: 02 Mar 2011 08:30 PM PST Image:  Here's an absolutely fascinating video clip from reader 'Don in Virginia'...and it's the SECOND video on the page...right below the one with Glenn Beck...at least that's where it was located when I posted it early this morning. It's amazing...and I've watched it a couple of times to see if I could pick any holes in his presentation...and I couldn't. It has to do with buying and selling the opening and closing prices of SLV over the years. This is a must watch...and you need to pay attention...plus watch it right to the end.& | ||
| Paul jousts with Bernanke but presses no gold questions Posted: 02 Mar 2011 08:30 PM PST Image:  That's the title from the GATA release on this story...but I'm going to use the zerohedge.com piece that was sent to me by reader George Findlay...as the TD's preamble is worth the read. The Zero Hedge title reads "Watch The Highlight Of Today's Congressional Hearing: Ron Paul vs. The Bernank"...and the link is here. |
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