Gold World News Flash |
- Buy Silver at $40, $50, $60 . . . It's going to $500 Silver, so yea!
- Vanadium, Gray Metal Driving Green Revolution?
- Will Silver Become Money Like Gold Again?
- Breakouts in Gold and Silver Prices
- In The News Today
- What The Gold Market Is Saying To You
- A Note From Dean Harry Schultz
- Jim?s Mailbox
- Hourly Action In Gold From Trader Dan
- Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 3% and 7% on the Week
- “I have attached a photo of my silver Piggy Bank.”
- Gold Is Sending A Signal That The Monetary System Is In Grave Danger
- The answer is Gold.
- Guest Post: A Day In The Life Of A “Homegrown Terrorist”
- Silver Price rose 7.6% this Week, the Gold Price Rose 3.2%
- What's moving silver's price to $40? It's not Jon Nadler
- Beware the Ides of May
- Records Falling Everywhere
- Stopping Inflation, the Federal Reserve Way
- “The new reserve currency will be a virtual currency (an average of the major currencies). It will be (remotely) tied to gold via a worldwide M3 type liquidity.”
- Toxic Dollar: Why Nobody Seems to Want US Currency
- Soros Speaks
- Gold settles at record; silver ends at $40.61 an ounce
- Terra Ventures Declares Dividend-In-Kind of 7,500,000 Shares of Novus Gold Corp.
- Presenting The Administration's Spin On The Dying Dollar
- Traders are warning of a dramatic change in dollar selling. They fear central banks from the Middle East may force their Asian rivals to more aggressively drive the dollar down
- SOMETHING HAS TO GIVE
- Bring The Gold
- Gold Daily and Silver Weekly Charts
- Handicapping the Rare Earths Stampede
| Buy Silver at $40, $50, $60 . . . It's going to $500 Silver, so yea! Posted: 08 Apr 2011 07:19 PM PDT Share this:
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| Vanadium, Gray Metal Driving Green Revolution? Posted: 08 Apr 2011 06:47 PM PDT Vanadium, a gray metal mainly used as an additive to steel, could see a jump in demand as new technologies emerge in energy storage. In this exclusive interview with The Gold Report, Jonathan Lee, a battery materials and technology analyst with Toronto-based Byron Capital Markets, talks about which vanadium producers are ready to grapple with the prospect of increasing demand from the adaption of "green" uses.
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| Will Silver Become Money Like Gold Again? Posted: 08 Apr 2011 06:18 PM PDT We have always referred to silver as the 'long shadow' of gold because its price moves with gold's. When the gold price rises, silver rises more. When the gold price falls, silver falls further, but they move in sync. Why?
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| Breakouts in Gold and Silver Prices Posted: 08 Apr 2011 06:15 PM PDT The story of gold is as rich, lustrous and complex as the metal itself. It is as ancient as the Egyptian Pharos and modern as the mirrors coated with gold which astronomers use to capture images of the universe. The metal's mounting value is connected directly to its economic role as a stable alternative to paper currencies, and its rise should speak volume about the health of the global monetary system.
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| Posted: 08 Apr 2011 05:26 PM PDT View the original post at jsmineset.com... April 08, 2011 08:21 PM Jim Sinclair’s Commentary Gold is about debt, not business. Gold Is Still Cheap Despite Record Surge: Marc Faber The Federal Reserve’s money-printing policies continue to make gold an attractive investment even though it has hit a succession of new highs recently, Marc Faber, author of the Gloom Boom & Doom report, told CNBC. More…...
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| What The Gold Market Is Saying To You Posted: 08 Apr 2011 05:26 PM PDT View the original post at jsmineset.com... April 08, 2011 05:20 PM My Dear Friends, There are a number of different interests in the gold market. The majority of these interests are satisfied by my publishing of the Angels as their only real purpose to be in this market of "What Is Happening Now" is for profit before they move on to the next. There is a minority that knows what the gold market is saying to them. There is a minority that knows the world has changed and the sheeple sleep on. There is a minority that will take the next step. That minority will truly succeed. If I have helped you make many millions of dollar, take out $500,000 and get off the grid. Those that remain on the grid have missed the entire program. Your gold will help you but life in a failed distribution experience will not be pleasant. Regards, Jim Dear Jim, Your advice has been carefully noted over here in England. I first bought Gold in 2004 when I read an article about peak oil. I studied ...
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| A Note From Dean Harry Schultz Posted: 08 Apr 2011 05:26 PM PDT View the original post at jsmineset.com... April 08, 2011 09:48 AM Dear CIGAs, From the April Edition of the Aden Letter, Dean Harry Schultz says: [INDENT]"This is the first time old friend Jim Sinclair has said hyperinflation is "assured" – IE, certain, not just possible or likely. Jim says: "The madness will not stop. The situation is over the edge. The damage is done. Hyperinflation is assured." I'm afraid Jim is right. Governments could have prevented it, but didn't want to pay the price. Fiat currencies will pay the price. The US dollar will both waterfall and lose its reserve currency status which in turn will ignite rampant inflation. Jim adds: "The new reserve currency will be a virtual currency (an average of the major currencies). It will be (remotely) tied to gold via a worldwide M3 type liquidity. It won't be convertible (will be used between central banks, not you and I). Today's existing currencies will continue to be used but valued one to the other. A measure will b...
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| Posted: 08 Apr 2011 05:26 PM PDT View the original post at jsmineset.com... April 08, 2011 09:47 AM The Message From The Gold Market CIGA Eric It wasn’t long ago when the newswire were populated with headlines suggesting caution towards gold. Now that prices have soared, fear has been replaced with greed. That's how it works. That’s why it's best to ignore the headlines and listen to the message of the markets. Message of the Market: (1) Gold is clearly attempting to break upper trading channel from 2001. The probability of parabolic or accelerating trend increases substantially once the linear channel has been broken. A quick review of the silver chart illustrates what’s taking place in the gold market right now. (2) The retest of resistance as support tends to follow a technical breakout. (3) Gold and silver are becoming increasingly volatile. Get used to it. Gold London PM Fixed Headline: and Mining Gold Prices at New Record, Silver Hits $40 Gold prices were hitting a new reco...
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| Hourly Action In Gold From Trader Dan Posted: 08 Apr 2011 05:26 PM PDT View the original post at jsmineset.com... April 08, 2011 09:37 AM Dear CIGAs, 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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| Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 3% and 7% on the Week Posted: 08 Apr 2011 04:00 PM PDT Gold rose to a new all-time high of $1474.74 by a little after noon EST before it fell back off a bit into the close, but it still ended with a gain of 1.01%. Silver climbed to a new 31-year high of $40.613 in the last minutes of trade and ended with a gain of 2.71%.
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| “I have attached a photo of my silver Piggy Bank.” Posted: 08 Apr 2011 03:01 PM PDT To: keiserreport@rttv.ru Subject: Some Hard Physical Silver to support the SLA Max and Stacy, Have been buying Silver for many years now and are educating my young children in the value of real money and what it means. So when they get pocket money and have enough we go down to the Perth Mint and [...]
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| Gold Is Sending A Signal That The Monetary System Is In Grave Danger Posted: 08 Apr 2011 02:24 PM PDT When a country's public debt exceeds 90% of GDP, that is the magic number. You get to 90%, there is no way back, and that is the number that the U.S. is going through pretty much as we speak. It is also the number which the UK has gone through; all of the PIGS are going through it, as well. They are all going past the 90% debt to GDP ratio. Obviously, Japan is miles past it already. It's up to 200%+. There does not appear, in the historical analysis, to be any great likelihood of getting back from that level of debt safely. There is this strong evidence that above 90% debt to GDP, you will experience either a cataclysmic default or some form of very serious inflation." So observes Paul Tustain, gold market analyst and founder of BullionVault. In his view, gold serves as a beacon who's price is currently signalling the monteary system is in grave danger. He and Chris discuss the primary factors driving the price of gold and smart strategies for investors looking to build or maintain their holdings of the metal. 
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| Posted: 08 Apr 2011 01:12 PM PDT
How do you crack a currency calamity?
The Corrections Society is bursting with inefficiencies that should have been rooted out by recessions long ago. Today big government and big business share the same bed and insatiable addiction to money printing. It must be cured if we are to move into any genuine period of prosperity.
Safe and Sound The world needs a financial system that preserves confidence again. Small business owners deserve a stable currency to accurately plan for the future. Instead in its place, a relentless flood of paper money offers no reliable medium of exchange. There is little security in dollars to preserve purchasing power or store value. The lack of currency confidence worldwide is increasing at an unsettling rate. Eventually the same politicians that bought elections and reelections with promises and easy money will admit paper money is not working as the basic component of the monetary system. Citizens will seek an alternative currency and many are already turning to gold. Gold, through the centuries has proven to be unmatched as a standard of measurement, a medium of exchange, and store of value. The more distressed conditions become, the more of people’s money governments will try and get their hands on. The rate at which money seeks gold as a less detectable form of capital preservation will continue to mount.
The Adversary Our generation will finally begin to understand inflation is the enemy, a slayer of freedom and culture. It has a long history of taking away from former nations in prior inflationary advances. A collapse and depression is likely inevitable in order to reset the system and clear the economic vices of the past. When mutual funds collapse, small investor’s anger will fuel the masses. Even though failures in the banking and insurance industries are evident citizens are still unprepared. A massive reshuffling of fortunes is approaching. As the currency continues to break down, the number of people who decide to take delivery of commodities futures will escalate. Gold and silver will rise above the burn and monetary skeletons of the Keynesian romantics.
The Flood The advances from investing in gold are representative of a hedge against inflation and deflation. The ultimate goal of owning will be to have trading power at the end of the currency calamity. Until a return to gold, fiat currency will be in crisis. The people with a board to surf the next wave will be those who survive the coming economic tsunami. As we have seen, stock prices can rise but the main trend of the stock market measured in gold will be down. A significantly higher price for gold will be the solution to wash out the sea of paper money.
The King There will be a homecoming to a currency connected to gold. The visiting paper tigers go home loser and take rightful place and just value of zero. The world will realize the need to turn the clock back to what made it great. All things paper are flagging measured
~MV
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| Guest Post: A Day In The Life Of A “Homegrown Terrorist” Posted: 08 Apr 2011 11:58 AM PDT
Submitted By Giordano Bruno of Neithercorp Press A Day In The Life Of A “Homegrown Terrorist” There was a time when having one’s name listed in the despised ranks of those villains that governments often categorize as “terrorists” involved quite a bit of leg work, as well as an ominous running resume of death, destruction, and general mean spiritedness. Of course, if one examines the history of every modern country which eventually disintegrated into despotism, the definition of who the “enemy” is tends to become rather broad rather quickly. That is to say, the more criminal the leadership of a country becomes, the easier it is for the average person to find himself labeled a criminal by that same leadership. Today, one does not need to blow up buildings, take hostages in political motivation, send anthrax through the mail, or even wave a gun around in a public place to be considered a terrorist threat. In fact, a man could never leave his house and still find himself under suspicion as an enemy of the state. The Department of Homeland Security has released numerous standardized guidelines to law enforcement offices across the country which are meant to make it “easier” for police and others to identify a possible terrorist. If you were to take at face value such documents as the now famous MIAC Report, the Virginia Fusion Center Report, the DHS’ “see something, say something” campaign, the Enemy Belligerents Act, the post trial statements of the Department Of Justice in the Liberty Dollar case, or the wild spewing rhetoric of establishment mouthpiece organizations like the SPLC, then you would discover that a likely terrorist is: Anyone who talks frequently about the Constitution, or ill of the government Basically, ANYONE who dissents through independent political organization or protests through non-participation in the corrupt system might as well be Al Qaeda… http://www.constitution.org/abus/le/miac-strategic-report.pdf I could go on for pages with this stuff, but I think you get the picture. In a world where refusing a naked body scan at the airport earns you intimidation and a demeaningly thorough pat down, it is clear that now wherever we go we are all considered “suspects”. Why would I turn down a naked body scan, one might ask? Well obviously because I have something to hide; namely my genitalia from the prying eyes of the TSA. To be frank, my privacy and the privacy of all Americans is more important than your safety. Get over it. America is moving closer to financial derailment, and with that kind of destabilization often follows the escalation of what we call the “police state”; a governmental framework that is designed specifically to protect the longevity of the core system that created the disaster in the first place, remove civil liberties one bite at a time while demonizing any person who dares to question the necessity of the system, and institute new social dynamics meant to acclimate the public to the loss of the freedom and prosperity they once enjoyed. That is, to condition them to accept the loss as “inevitable” and for the “greater good”. Most unsettling but absolutely predictable has been the recent tapping of the SPLC and ever present establishment front man Mark Potok as the on camera media hit squad against organizations like Liberty Dollar, and anyone else attempting to promote alternative methods of currency and commerce outside of the corporately controlled economy. U.S. Attorney Anne Tompkins’ post trial statement in the case against von NotHaus that “Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism” was just the beginning. Potok has now come forward stating: “He (von NotHaus) is playing on a core idea of the radical right, that evil bankers in the Federal Reserve are ripping you off by controlling the money supply,” said Mark Potok, spokesman for the group. “He very much exists in the world of the anti-government patriot movement, whatever he may say. That’s who his customers are.” http://news.yahoo.com/s/ap/us_liberty_dollars_raid Here’s what I love about Mark Potok; his ability to vomit unsupported accusations and make absurdly false associations all while making the absolute truth sound “insane” to the useful idiots out there in TV land. First off, how does Potok define the “radical right”? It sounds scary, but what does it mean? Who gets to decide what the radical right is? The SPLC? Is a right wing radical or extremist anyone who just happens to disagree with Mark Potok’s world view, or the global elitist vision of the future? Potok routinely haunts the transmissions of MSM networks to squat on our television screens and unleash a putrid torrent of Ad hominem attacks without ever having to actually qualify what he says. It truly is awe inspiring. His style of propaganda comes from a long tradition of Alinsky-esque dishonesty in debate. When the SPLC argues a point, their goal is not to get to the truth of a matter, or to explore the complexity of an issue, it is to oversimplify the issues, to ridicule the opposition and taint their image in the minds of audiences before the audience ever gets a chance to hear the other side of the story. How often does Potok utter phrases like “radical”, “extremist”, “terrorist”, “white supremacist”, or hot button names like “Timothy McVeigh” while discussing legitimate activist groups like the Ron Paul campaign, Oath Keepers, the Tea Party Movement, anti-Federal Reserve groups, etc? The purpose behind this is to condition average Americans to automatically interpret the terminology as being mutually related. To hear Oath Keeper, for instance, and think “Timothy McVeigh”. This tactic of false association invariably leads to more generalized definitions of criminality, or terrorism, and then to more intrusive legal actions and legislation. The Liberty Dollar case is now being used by the DOJ in an effort to set a precedent, which would make it easier for the government to prosecute any barter network utilizing gold and silver as competing currencies to the dollar. The message is clear; you are not allowed to change the system. You are not allowed to buck the system or criticize the system. You are not even allowed to walk away from the system. You will sit down, you will shut up, and you WILL participate, whether you like it or not. This philosophy is typical of autocratic nations around the globe. The citizenry is denied the ability to actively have a say in their own government because the parties involved refuse to represent them, or even stoop to abusing them, then, they are denied the option to protest this lack of representation, and then, they are also denied the choice of opting out and walking away. A slightly more extreme example of this would be the Chinese propensity for hating the Tibetan people and wishing they would disappear, while also shooting Tibetan natives who take the hint and attempt to leave the country by hiking over the border. Thus, the people are not just an enemy to be silenced or run off, they are also property which must be fenced in and subjugated. Potok condescendingly attacks the idea of the Federal Reserve ripping people off and controlling the money supply as “radical” (both accusations are true and have been well documented Ad Nauseum by numerous financial analysts from both sides of the political spectrum. I challenge Potok to debate me or any other alternative economist on this in depth). But the real kick is that Anne Tompkins and Mark Potok both connect the movement towards any barter and trade away from the Federal Reserve controlled construct as being an extremist endeavor which will supposedly wreak havoc on the mainstream economy. This casts millions of Americans into the role of domestic terrorist without them ever lifting a finger in anger or violence. Again, you are not allowed to have your own economy, or your own money. You have to play by the rules, their rules, and become a part of the team. Being that I apparently seem to fit many of the DHS/SPLC selected characteristics of a homegrown terrorist, and most of the people I know, work with, and are friends with, do as well, I feel it is incumbent upon me to give you a personal peak into the everyday existence of such a “dangerous affront” to civilized society. For all you terrorism voyeurs out there, let’s delve into the deep dark recesses of the life and psyche of the average establishment nominated homegrown extremist… 7:00 AM: I wake up this morning and every morning with thoughts on how I may better expose the Federal Reserve and the fetid, morally bankrupt corporate bankers who constructed it. Drink orange juice. Change out of my Gadsden Flag pajamas and jump into the shower. Sing the lyrics to Jimi Hendrix’s ‘All Along The Watchtower’. Rinse. Repeat. 8:00 AM: I jot down my immediate thoughts for the next terroristic macroeconomic analysis article I plan to complete later in the day with my long horrifying trigger happy terrorist fingers on my terrorist built supercomputer. I also eat a blueberry muffin, probably heated to sumptuous perfection by bakers of the terrorist persuasion. As you know, we are everywhere. Booga booga… 9:00 AM: Go out for my five mile jog. Have to stay in tip top condition if Homeland Security plans to hunt me down for all those goods and silver I’ve been trading on the evil right wing extremist ultra maxi secret black market. Flea markets, farmers markets, garage sales, private exchanges of eggs and milk, all under the nose of the IRS! You name it, I sully the “pristine” nature of the Federal Reserve system with it. 10:00 AM: Arrive at my day job where I talk to fellow employees and even employers CONSTANTLY about the stagflationary threats to the U.S. economy, the inherent tyranny of the central banking philosophy, the complete idiocy of the Keynesian methodology, the risk of Treasury depreciation and the loss of the greenback’s world reserve currency status, along with the need for sound money initiatives, localized commerce, state sovereignty legislation, and personal defense. Somehow, they have not yet realized that I am a terrorist. Mark Potok needs to get his message out there more effectively… 6:00 PM: Arrive home from a hard day’s work. Make dinner devoid of artificial sweeteners, chemical preservatives, and high fructose corn syrup. For some reason, I care about my overall health and shudder at the prospect of feeding from the corporately produced slop trough, which only seems to slowly morph any unsuspecting human being into a 300 pound boil infested bottom feeding kankle troll with the logical and intuitive capacity of a sea monkey. Watch rerun of Three’s Company (Hey, that show is funny…) 7:00 PM: Sink into couch for some much needed rest. 7:15 PM: Get up off of couch and start my second job as a terrorist writer. We are indeed relentless. 11:00 PM: After spreading my vicious propaganda about how the leaderships of both major political parties support nearly the same exact legislation and only seem to disagree in rhetoric, or when the particular issue is ultimately unimportant to the progression of globalization, as well as the inevitable downfall of the American financial system facilitated by the deliberate creation of the derivatives crisis by the Federal Reserve and global banks like JP Morgan, Goldman Sachs, HSBC, etc, I then have a shot of whiskey. Sometimes its depressing being a terrorist, and you have to take the edge off. 12:00 AM: I now answer many emails from other would be terrorists across the country who have been wiled by the undeniably rich and sexy allure of the lifestyle. Being labeled a terrorist is truly fun and exciting. Being constantly aware of the Godzilla-like rampage of international banks and the Fed across the ruins of our monetary system while half of the public is more concerned about what kind of Gordita they want from Taco Bell is immensely comforting. All the extra attention we receive from such highly placed individuals as Janet Napolitano makes us feel like celebrities. I imagine any group in history who has been singled out by government for their political and social views or their desire to fix the obvious inadequacies of their authority structure has felt the same way……fabulous. 1:00 AM: Time to sleep. Warm milk? Check. Air conditioning at optimum temperature? Check. Bed spread neatly folded for easy access? Check. Low playing mood music? Check. Loaded semi-automatic pistol under pillow? Check. (This is actually true in some cases, and you know what? I salute those people.) Commence operation Sheep Count. Try to supplant the concerns and the tensions of a world tomorrow that could be drastically different and even more frightening than the one we live in today. Worry that I should be sleeping less and working more to prepare others for what is coming. Hoping that my belief in the greater potential of mankind is not a waste, and that my efforts will yield something better for those generations that follow my own. Yes, I am an extremist, and a deviant. I will never stop pursuing the tidings of liberty, regardless of the cost. I am a madman. However, this makes me wonder, what does it mean to be deemed a madman in a society run by madmen? What does it mean to be judged a deviant in a nation dominated by deviants? Why is it that a so called “terrorist” in an atmosphere of dread and tyranny always seems to end up being but a man who only seeks to be free? You can contact Giordano Bruno at: giordano@neithercorp.us
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| Silver Price rose 7.6% this Week, the Gold Price Rose 3.2% Posted: 08 Apr 2011 11:25 AM PDT Gold Price Close Today : 1,473.40 Gold Price Close 1-Apr : 1,428.10 Change : 45.30 or 3.2% Silver Price Close Today : 4060 Silver Price Close 1-Apr : 3773.7 Change : 286.30 cents or 7.6% Gold Silver Ratio Today : 36.29 Gold Silver Ratio 1-Apr : 37.84 Change : -1.55 or -4.1% Silver Gold Ratio : 0.02756 Silver Gold Ratio 1-Apr : 0.02642 Change : 0.00113 or 4.3% Dow in Gold Dollars : $ 173.69 Dow in Gold Dollars 1-Apr : $ 179.15 Change : $ (5.46) or -3.0% Dow in Gold Ounces : 8.402 Dow in Gold Ounces 1-Apr : 8.667 Change : -0.26 or -3.0% Dow in Silver Ounces : 304.93 Dow in Silver Ounces 1-Apr : 327.97 Change : -23.05 or -7.0% Dow Industrial : 12,380.05 Dow Industrial 1-Apr : 12,376.72 Change : 3.33 or 0.0% S&P 500 : 1,328.17 S&P 500 1-Apr : 1,332.41 Change : -4.24 or -0.3% US Dollar Index : 75.869 US Dollar Index 1-Apr : 75.854 Change : 0.02 or 0.0% Platinum Price Close Today : 1,810.90 Platinum Price Close 1-Apr : 1,768.50 Change : 42.40 or 2.4% Palladium Price Close Today : 796.25 Palladium Price Close 1-Apr : 774.50 Change : 21.75 or 2.8% Lo! the SILVER PRICE rose 7.6% this week, the GOLD PRICE rose 3.2%, stocks spun their wheels noisily and slung mud everywhere without ever gaining any traction, the white metals jumped, and the US Dollar Index proved once again that only a fool trusts Ben Bernanke. The SILVER PRICE swelled 2.7% today, 105.8c, to close Comex at 4060c. Like Humphrey Bogart brushing through one of those bead curtains in a North African bar, silver brushed past 3965c resistance overnight. By the time New York opened it was already trading at 4020c. When silver bears tried to sell it off, they merely wasted their money and silver brushed them aside, too, and kept on climbing. I reckon silver looked around and figured that if it was this easy to clear 4000c, it might as well go for 4100c. It did, and now is trading around 40.90. The GOLD PRICE wasted no time once it jumped the barrier at $1,460 - 1,465. Might as well add another ten bucks! $14.90 higher gold closed at $1,473.40. GOLD/SILVER RATIO touched a new low today at 36.29. How much further can they rise? The gold price won't slow down before it hits $1,525, maybe $1,600, and the silver price has no ceiling above except a bull market trendline about 4600c. If you don't have some, you'd better buy some. Of both. Next week they will rise more. That US DOLLAR INDEX finally found the trap door in the floor and fell through it today. Yep, made a new low at 74.848, and a new low close, and trades now at 74.869, down 71.6 basis points from yesterday. Since the last low occurred in March at 75.25, one is forced to conclude that the Dollar will pay a visit to the December 2009 low at 74.23, or maybe go whole-hog for the 70.70 low. Yen now has fallen to 84.73/$ (118.02c/100 yen), suggesting it will fall much further. In a burst of logic, common sense, and insightful judgment the euro jumped up 1.24% today to 1.4483 on news that Portugal has gone paws up and must go begging to Brussels for a bail-out. Not much, $100 billion or so. Yea, man, this is the sort of event that inspires confidence in me about the euro. Looney. Dollar will move lower, which paves the way for higher silver and gold prices. STOCKS have rounded a double top this week, and put in another ragged performance today to prove it. Week's high came at 12,450.93 for the Dow, which illustrates how important it is to insist that a new high exceed the last high by 2%. Back in February the Dow topped at 12,391.29, and this week's 12,450.93 high didn't even approach the 12,639 needed for a 2% betterment. Now the Dow has resumed its old habit of making a broadening or megaphone top, with flat or slightly higher highs and lower lows. Stocks are really going to shine and outperform every other investment -- in about 5 - 10 years after they have completed their bear market. Until then they remain a croker-sack swimsuit in the Shop Of Attractive Investment Swimwear. Here's an addition to my comments yesterday about the US government shutting down. EVEN IF it does shut down, it won't make as much difference as a gnat's eyelash. For 50 years, nay, eighty, they have built a structure that must inflate and spend, or die. If they close a day, a week, a month, makes no never-mind, they will return and spend and inflate some more. They can do no other. Joe Stalin said that no ruling class voluntarily leaves the stage of history. This one won't, either. Even when they are shoved aside, they will still be posturing and play-acting. This is the same government that tells you it's okay to drink radioactive milk but dangerous to drink raw milk. Are y'all really going to miss 'em? Clearly some of y'all suffer from definitional confusion, since y'all expressed surprise or reservations about my calling the usurpation in Washington the "yankee government." First of all, it's an IMPERIAL yankee government, because the US has become an empire, no longer a federation of republics and certainly not a (har-de-har-har) "democracy." Second, y'all can't tell the difference between a "yankee" and a "northerner." A yankee is somebody who knows everything about everything and is not backward to tell you how they do it up north, even when you never ask him and surely don't want him to tell you. In other words, a meddling, bullying, busybody. A "northerner" on the other hand, is someone unfortunately born north of the Mason Dixon line. Most people from up North are "northerners", while Washington is full of yankees -- some of 'em even from the South. On this day in 1935 the New Deal (also known as the "Raw Deal") congress approved the WPA or Works Progress Administration to create make work jobs and thus relieve unemployment. Back then Americans were no dupes, so even the fellows who got the jobs leaning on shovels re-named it "We Piddle Around." Y'all enjoy your weekend. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2011, 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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| What's moving silver's price to $40? It's not Jon Nadler Posted: 08 Apr 2011 11:01 AM PDT What's Moving Silver's Price to $40? By Alix Steel http://finance.yahoo.com/news/Whats-Moving-Silvers-Price-to-tsmf-9553051... NEW YORK -- Silver prices hit $40 an ounce. This was the bullish signal many traders were waiting for and price targets now range from $45 to $50 for 2011. Voracious investment demand and turmoil in the Middle East-North Africa region have been pivotal to silver's pop, but don't tell the whole story. Silver prices have a reputation of being manipulated, volatile and less liquid. Silver hit a record high of $50 an ounce in 1980 after the famous (or infamous) Hunt brothers bought the metal aggressively for seven years -- at one time owning more than 200 million ounces of silver. The silver bubble burst soon thereafter shedding 50% of its value almost immediately, and over the last 30 years the metal has traded as low as $4 and as high as $36.74 an ounce. ... Dispatch continues below ... ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Along with gold, silver prices are at the mercy of investment demand, safe-haven buying, inflation fears, momentum trading and price manipulation. Silver prices are also cheaper than gold offering cash strapped buyers a cheaper safe haven alternative. But the one thing that silver prices have going for them that gold doesn't are oodles of industrial demand. Indeed, silver can be found in a plethora of products, from iPads to cars to solar panels, making it the perfect metal for those wanting a hedge against currency debasement as well as exposure to a global economic recovery. David Morgan, founder of Silver-Investor.com, says he could see silver prices as high as $45 in 2011 "and if things get really crazy we could go beyond that." Silver is also at the mercy of stocks. When equities plummet, investors are often forced to sell silver for cash, but any significant dip can trigger a wave of buying as investors purchase silver at "cheaper" prices, resulting in a strong tug of war. Because fewer people own silver than gold, the market is smaller, which results in violent price action. Here are five fundamental factors that will contribute to silver's strong price moves in 2011 and why many analysts think silver's bubble is far from bursting. ... 5. Price Manipulation Price manipulation is the most controversial theory that has circulated among gold and silver bugs for 20 years. Some argue that precious metal prices have been illegally suppressed over the last two decades by central banks, governments and trading houses. The Gold Anti-Trust Action Committee, or GATA, is the biggest complainant and mainly points to the "hugely disproportionate short positions," according to Chris Powell, secretary and treasurer of the organization. The manipulation headline has been gaining traction of late after trader Brian Beatty filed lawsuits at the end of October against JPMorgan and HSBC for conspiring to "suppress and manipulate" silver prices on the Comex. The allegations are particularly noteworthy because HSBC and JPMorgan are custodians of the physically backed exchange-traded funds like the ETFS Physical Silver and iShares Silver Trust, which means the big banks, in charge of storing the metal investors are buying, are being accused of manipulating the prices. The drama continues. A Chicago law firm, Cafferty Faucher, filed a lawsuit at the end of December against HSBC and JPMorgan accusing the two of using their positions as silver holders to purposefully suppress the silver price so they could profit from their short positions. The Commodity Futures Trading Commission is now investigating the possibility of criminal activity in manipulating the silver futures market, particularly at JPMorgan. JPMorgan had been trying to combat these allegations by reducing its huge silver short position. However, in the latest bank participation report, short contracts on the Comex have risen by 6,762 in 2011 as banks bet against silver's crazy rally. Subsequent unwinding, forced or otherwise, could trigger more rallies. The opposition, however, is just as passionate. "There's no vested interest on anybody's parts to suppress prices here," says Jon Nadler, senior analyst at Kitco.com. "The allegations remain at that level, simply allegations." Nadler argues that despite the rumored manipulation, prices have still climbed. "If this is suppression, I think it's completely ineffectual, and let me have more of it," Nadler says. Philip Klapwijk executive chairman of GFMS Research Group, says there is "nothing to these allegations." He thinks they will continue to be chatter for silver prices in 2011 but that they will just be a lot noise. "If there was a massive short position, the degree to which those shorts are under water is now quite extraordinary." ... 4. Gold and Silver Ratio Many investors use the gold/silver ratio to determine where silver prices will head. The ratio refers to how many ounces of silver it takes to buy one ounce of gold. If the ratio is high it means that silver prices have slipped. If the ratio falls, silver prices are outperforming gold. The ratio has come down from over 60 to 36.75. According to 2010 closing prices, the ratio was 46, meaning it took only 46 ounces of silver to buy one ounce of gold. At the beginning of 2010, the ratio was 65. In 1980, a previous high for both metals when gold was $850 an ounce and silver was $50, the ratio was as low as 17. Some bullish experts say that if gold and silver were to reach that ratio again, silver should be north of $80. "If you moved to even 30:1, you would have a considerable swing in the value of the silver properties relative to gold," says Rob McEwen, CEO of U.S Gold, who, with two silver and gold deposits in Nevada and a silver deposit in Mexico, has a vested interest in higher metal prices. Klapwijk says that the current ratio makes silver expensive in comparison to gold. This ratio is "not sustainable level in the long run" and will move up over time to up to 50. That doesn't necessarily mean that silver prices have to sell off, it just means that silver might not outperform gold but instead will lag the yellow metal. Randall Warren, chief investment officer at Warren Financial Service, also thinks this ratio could correct. He argues that the 100 year average is about 50. If that ratio were to resume at today's prices, silver should trade around $30. Warren is much more bullish on the ratio over the long-term. He thinks the ratio could hit 30 by the end of 2011, which would imply "longer-term higher silver prices by the end of 2011." David Morgan argues that the ratio could fall as low as 16:1, which would put silver at $90, but says once that happens silver's bubble could be ready to pop. "Most of us think it will do similar to what it did in 1980. When silver really accelerates during the final phase of the market, which we're not in by the way, we're actually in the second phase" and the ratio falls to 16:1. "That could suggest strongly that that's it for the metals for a while." Morgan says this could happen anytime between 2012-2015. ... 3. Currency Debasement The most popular reason to own silver is as a hedge against inflation. The theory is as paper currency loses value, silver will retain its purchasing power, making it a safe place to preserve one's wealth. While many investors talk about silver's inverse relationship to the U.S. dollar, BullionVault's head of research Adrian Ash prefers to categorize it more broadly as "anti-currency." The same applies to gold. "They are stateless, they don't have the burdens of debt, which any multinational currency has. They are a long-term story," Ash said, in describing their attributes. Echoing Ash, Philip Klapwijk says that all three major internationally-traded currencies: the euro, yen and dollar, have generated some degree of "suspicion" from investors amid sluggish economic performance, "very" unattractive short-term interest rates and growing, massive sovereign debt obligations. Chuck Butler, president of EverBank World Markets, expects the U.S. dollar to show another round of weakness in 2011, providing continued support for silver. Some analysts like Oliver Pursche, portfolio manager of the GMG Defensive Beta Fund, are even calling for the possibility of QE3 and QE4. Even 'dormant' inflation is picking up in the U.S., with core consumer prices up 1.1%, versus a year ago, 2.1% if you count food and energy, which every other country does. Despite the European Central Bank's recent rate hike, real rates are still a negative 1.35% in the eurozone, which means the euro is still worth less in the bank and hard assets are worth more. Silver prices have shrugged off rate hikes from the EU and emerging market economies. as well. Ash was unfazed by rate hikes arguing that central banks would have "to raise interest rates by a long way before it really makes a difference for cash savers." ... 2. Industrial Demand The industrial demand behind silver prices grew 20.7% in 2010 and is expected to be strong in 2011 but not remarkable. Industrial demand staged such a big comeback as the global landscape recovered and was the first catalyst for higher gold prices, according to GFMS' recent Silver Survey. "This year, this type of news will not be quite as unequivocally good," GFMS' Klapwijk said. "We've had such a significant rebound in industrial demand for silver that gains will be somewhat harder to come by this year compared to 2010." Meanwhile, BullionVault's Ash has heard complaints about high silver prices from industry representatives, because the pass-through of these high prices are hurting their customers. Ash wonders whether the industry will begin looking for silver substitutes, especially in newer uses such as solar panels and chips -- if prices become unfavorable. "Has silver gotten over the fact that it's an industrial metal primarily?," asked Ash. EverBank's Butler sums up his expectations of industrial demand for silver this year as "steady -- nothing phenomenal, but nothing that's weak." The one thing silver does have going for it is a slew of new products never before imagined that use the metal, like iPads. "We've seen in the last year the growth in that type of use increase about 18%," says Phillips Baker, CEO of Hecla Mining, one of the largest silver producers in the world. Baker, in fact, credits steady industrial demand with keeping silver prices afloat as investment demand ebbs and flows. Japan's devastating earthquake and its repercussions could also provide a floor for silver prices as there will be high demand for the metal as the country is forced to rebuild itself. ... 1. Investment Demand Silver investment popped 40% to 279.3 million troy ounces in 2010 led by a 24% increase in ETF holdings and coin and metal demand, which popped 28%. This trend looks set to continue in 2011. Traditionally, silver investing was reserved for the fringe precious metal buyer, who thought global wealth would be eradicated and that silver and gold would be the only currencies left standing. However, as the financial crisis rocked global markets at the end of 2008, a trend started to develop of regular investors allocating a certain amount of their portfolios into precious metals, although mostly gold, silver was included. The biggest physically backed silver exchange-traded fund in the U.S., SLV, held 6,524.93 tons the Friday before Lehman Brothers declared bankruptcy and how holds 11,192 tons, or 360 million ounces. The SLV added 1,428.60 tons just in 2010 alone while its smaller competitor the SIVR grew its holdings 81% to 16,627,688.2 ounces. The advent of physically backed silver ETFs over the past five years has given investors an easy way of speculating on silver. One share of the SLV is equal to one ounce of silver. If investors start piling into the ETFs, the funds must add more silver, taking more silver out of the open market and triggering higher prices. But the reverse is also true. There have been reports of shortages of silver backed up by backwardation on the Comex, where the spot month trades higher then future months. The shortage is said to be a combination by strong demand as well as production shortfalls. Short contracts on the Comex increased 24% in 2011 and if silver prices keep rallying, the shorts might be forced to cover their positions, which could be a catalyst for higher prices. Klapwijk thinks $50 is a realistic price target for 2011. But the fun might stop there. "One would expect to see fairly significant profit-taking at $50 an ounce," says Klapwijk, "because I do think that is a target for ... early investments in the metal. That could lead to a lot of volatility." But the thing with silver is that most retail investors still don't own it, most news outlets don't even write about it, which is one of the fundamental reasons silver bulls think the price will skyrocket. "We're going to go into a period like the high tech market where there is a mania," says Rob McEwen, CEO of U.S. Gold, who thinks the market is about half of the way there. There have been other signs that investment demand is on the prowl, which was critical to silver's killer rally in 2010. According to Patricia Cauley, director of metal products at the CME, open interest in contracts for silver grew 9.2% in 2010 versus 8.6% for gold. Open interest contracts illustrate the new buyers in the market. Average daily trading volume was 76,000 contracts for silver in the fourth quarter of 2010 , which doubled from the third quarter and is up 82% from the same period a year earlier. Cauley says this points to a "renewed interest in silver.... As we see the price of gold keep going up. The poor man's gold has come back." The silver trade might hit some more snags over the long-term. First of all, investors are paying almost three times as much for an ounce of silver than they did in the beginning of 2009, so the "easy" money has already been made. The monster rally might scare off those who haven't bought the metal yet. Silver prices are also very volatile. Because the market is thinner, a big buyer or hoarder can really affect prices. Silver's industrial component can also leave it vulnerable to signs of an economic slowdown especially in emerging market countries. There is also a lot of pressure on investor demand to support high silver prices. The above ground supply of silver is increasing annually, mine production grew 2.5% in 2010. Although industrial demand and new products are sopping up some supply, "heavier lifting is called for this year from the investor community just to keep the game alive," says Klapwijk. He estimates that several billion dollars of investment inflows are needed. Billions of dollars of new investment inflows at recent record prices isn't impossible just daunting and puts a heavy burden on investors and traders to keep silver prices afloat. Join GATA here: An Evening with Bill Murphy and James Turk https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT 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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| Posted: 08 Apr 2011 10:54 AM PDT syndicate: 0 Author: David Galland Synopsis: David Galland muses about today's headlines and addresses the potential for a significant correction in commodities occurring around the "ides of May." Dear Reader, Given all the late-breaking news from what a reporter might term an "active" news cycle, I suspect that today's edition of these musings will turn out to be something of a hodge-podge. Here are just a few of the headlines that catch the eye… Precious Metals Breaking Out to New Highs. As I write, gold is at $1,473 and silver, gasp, $40.61. We knew the precious metals would keep moving to new highs, and so they have. But are they overdue for a breather? More on that topic momentarily. NATO Bogged Down in Libya. At the beginning of the latest round of Western metal tossing into th...
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| Posted: 08 Apr 2011 10:54 AM PDT The 5 min. Forecast April 08, 2011 01:20 PM by Addison Wiggin – April 8, 2011 [LIST] [*]Gold and silver set records, silver tops $40… Why one market veteran sees a May 16 catalyst for $2,000+ gold before year-end [*]Oil at new highs, corn at all-time record and more fallout from a tanking dollar… again… [*]Shortages of bullion blanks, botched collector issues: Ron Paul puts U.S. Mint under the microscope [*]Paint job or taint job? 1,000 steps forward to prove how desperate they are to avoid foreclosure [*]Plus, a few answers to your questions about fees and average contract size in Strategic Currency Trader [/LIST] 0:00 — As we do more prep work this morning for our "Fight or Flight" symposium in Vancouver, we see a massive flight from the dollar… into tangible assets. At 75.2, the dollar index has slumped this morning to a 15-month low. Gold has reached an all-time high of $1,474. Silver broke through $40 overnig...
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| Stopping Inflation, the Federal Reserve Way Posted: 08 Apr 2011 10:31 AM PDT I was explaining to my boss that firing me would not solve the company's problems, as the corporate rot goes a lot farther than that, mostly due to the stupid Human Resources department hiring so many morons, a dismal fact I have proved over the years by merely asking each one, in turn, "Do you own any gold and silver to protect yourself from the horrendous inflation in prices that is guaranteed by the evil Federal Reserve creating so impossibly much money, and which will destroy the currency, the economy, and everyone who is not an owner of the aforesaid precious metals, to wit, gold and silver, or are you some kind of moron?" The data shows that they are all morons, and their stupid responses fell into one of three groups. Either they ignored me completely, replied with something rude and/or threatening, or admitted that they have not been buying gold and silver. Of course, being the nice guy that I am, always ready to help a friend or a neighbor in need, I generously informed ...
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| Posted: 08 Apr 2011 09:59 AM PDT A Note From Dean Harry Schultz Share this:
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| Toxic Dollar: Why Nobody Seems to Want US Currency Posted: 08 Apr 2011 09:50 AM PDT Traders are warning of a dramatic change in dollar selling. They fear central banks from the Middle East may force their Asian rivals to more aggressively drive the dollar down. In 10 months, the Dollar Index has lost 14% because the world keeps accumulating dollars it doesn't want and sells them. Asian central banks are key. Many Asian central banks have been forced into waging wars to keep their currencies from appreciating because of the influx of investors to emerging markets. They sell waves of their own currencies into the market in an attempt to keep exports competitive. [source] PG View: Ongoing weakness in the dollar, along with competitive currency devaluations around the world will continue to underpin the gold market.
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| Posted: 08 Apr 2011 09:31 AM PDT
Unlike the last time a bunch of men gathered at Bretton Woods to determine the monetary fate of the world and set the stage for globalization, this time around the prevailing activity was a casting call for the role of the new Emperor Palpatine. Yet despite that (or maybe because of) George Soros appeared in full Open Society regalia and spoke to Bloomberg TV about how importing foreign asset collateral (also known as exporting debt) through "globalization" is still the name of the game. And obviously while the Hungarian billionaire would not disuss the true purpose for his presence in Bretton Woods, he did have some words of caution for China bulls: "while the big banks under direct central control are in fact refusing to lend, there is a shadow banking system that is growing out of control. There is a real danger there of wage price inflation because prices have gone up, particularly real estate prices have gone up because there was a real estate boom." But to those concerned about the key issue at play, namely the future of the reserve monetary system, some could interpret the following statement by Soros, as a tacit agreement that the end of the dollar is fast approaching: "cautionary words for the dollar: "There's a big question whether the U.S. dollar should be the main reserve currency and in fact it no longer is because it maybe accounts for two-thirds of the monetary reserves. The euro is an alternative and there's a lot of diversification into other currencies and even more into commodities. Not only gold, but actually oil is now an asset class for investors. That has put some upward pressure on the commodities." Of course what actually is decided in B-W will be made clear over the next year or so, once the decision makers have already placed their bets accordingly and pull the rug from under the market.
On stimulus vs. austerity and whether U.S. debt impacts the world:
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| Gold settles at record; silver ends at $40.61 an ounce Posted: 08 Apr 2011 09:27 AM PDT By Claudia Assis and Nick Godt Gold for June delivery advanced $14.80, or 1%, at $1,474.10 an ounce on the Comex division of the New York Mercantile Exchange, a settlement record. Bullion traded as high as $1,476.20 an ounce, an intraday record high. Gold had reached such milestones the previous four sessions. The metal rose 3.2% on the week, its highest five-day gain since early December and its third weekly gain in a row. "Two words, the dollar and inflation," said Frank Lesh, a broker and analyst with FuturePath Trading in Chicago, of gold's rally. "I'll tell you when it will correct: when the dollar quits going down. This tit for tat in Congress right now just makes us look bad, and it's reflected on the dollar." Silver for May delivery, gained $1.06, or 2.7%, to $40.61 an ounce, its highest price since early 1980 and a fifth session of gains. Spot silver set an intraday record of $50.35 in January 1980. Investors priced out of gold have flocked to silver. The metal gained 7.6% this week. Yearly gains for silver have reached 31%, dwarfing gold's 3.7%. The run for gold and other commodities also lifted copper prices, which traded 1.9% higher. May copper added 9 cents to $4.50 an ounce. [source] RS View: OMG… they've always quoted copper by the pound, and here we're seeing it quoted by the ounce! Perhaps the upward march of metal prices has forced copper to step up and serve a new role as the poor man's silver… [Thank the Good Gods of Humor for blessing us with these occasional typos in the media.] ALSO… Gold rises to record high Gold was set for its biggest weekly gain in four months, drawing support from renewed euro zone sovereign debt fears amid Portugal's financial crisis and inflation jitters as crude oil and corn hit new highs this week. Bullion broke above key resistance on technical charts and could target above $1,500 an ounce. The metal has risen more than 10 percent since late January when political unrest began to flare in the Middle East and North Africa. … Gold remained far below its all-time inflation-adjusted high, estimated at almost $2,500 an ounce set in 1980 as a result of heightened geopolitical pressure and hyperinflation. "With the expected future inflation being higher in this low interest rate environment, investors are more inclined to have some contributions to commodities as an inflation hedge," said Hakan Kaya, commodities portfolio manager at Neuberger Berman, which manages about $190 billion client assets. The gold-to-silver ratio — the number of silver ounces needed to buy an ounce of gold — fell to a 28-year low near 36 on Friday. "One would expect silver to outperform in this environment because it bears a higher risk than gold on a volatility basis," Kaya said. [source]
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| Terra Ventures Declares Dividend-In-Kind of 7,500,000 Shares of Novus Gold Corp. Posted: 08 Apr 2011 09:25 AM PDT Terra Ventures Inc. (TSX-V:TAS, "Terra" or the "Company") is pleased to announce that its board of directors has declared a special dividend-in-kind (the "Dividend") of the Company's entire holding of 7,500,000 common shares (the "Novus Shares") in Novus Gold Corp. (TSX-V:NOV, "Novus") to its shareholders of record as at April 29, 2011 (the "Record Date").
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| Presenting The Administration's Spin On The Dying Dollar Posted: 08 Apr 2011 08:57 AM PDT
Wondering what chart is in the memo that expert Fed reporter Steve Liesman just may have received with instructions to spin (literally) for public consumption? Wonder no more.
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| Posted: 08 Apr 2011 08:52 AM PDT Toxic Dollar: Why Nobody Seems to Want US Currency Share this:
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| Posted: 08 Apr 2011 08:31 AM PDT Gold blasted through $1,472 this morning to an all time high. Silver broke $40 for the first time since the Hunt Brothers cornered the market in 1980. Brent crude broke through $124 and WTI is catching up at $112. Agricultural commodities are going off the charts. WTF!!! It certainly feels like a mild case of [...]
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| Posted: 08 Apr 2011 08:27 AM PDT Share this:
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| Gold Daily and Silver Weekly Charts Posted: 08 Apr 2011 08:18 AM PDT |
| Handicapping the Rare Earths Stampede Posted: 08 Apr 2011 08:15 AM PDT Over the past couple of months, we've learned plenty about the future of Chinese demand for rare earths. Bottom line is that the Chinese will likely become net-importers of rare earths within three years – certainly within five years. What does this mean for rare earths? Chinese export volumes will continue to decline. Not only will there be less Chinese rare earths product for sale, but the Chinese will compete for at least some of the very same rare earths product as everyone else. Big problem, right? Let me state it another way. There's not enough rare earths to go around! Not based on the current production numbers, and the future supply-demand trends. Hence the price will EXPLODE for some rare earths elements, particularly the "heavy" rare earth elements (HREE). Hold that thought. Meanwhile, the US political class in Washington, DC is barely beyond waking up to the issue. Last fall, I heard a sitting Member of Congress – who serves on the Science & Technology Committee – say that he became aware of the rare earths issue when he "read about it in the New York Times." Oh really? How reassuring. (In my investment letter, Energy & Scarcity Investor, I've been analyzing the rare earths since March 2008, and have recommended numerous winning investment ideas based on those analyses). Of course, there are people within the US Department of Energy, the Geological Survey and other agencies who've been following the problem for a while. But the point is that US rare earths policy is amorphous. It's still crystallizing. As a student of both Clausewitz and the Periodic Table, my opinion is that there's more of a US plan for bombing Libya than there is for dealing with the looming shortages and price spikes in the rare earths space. Looking ahead, and to paraphrase The Mogambo Guru, "We're doomed." Over the next 24 months or so, the world will experience a bad case of rare earths sticker shock. We'll see space shuttle trajectories for rare earths prices, especially the "heavy" (HREE) product. There are more and more news articles about rare earths. But you'll probably see even more. And everyone's going to be an expert. Your barber, the cab driver, the shoe-shine guy will tell you how to make money in rare earths. This coming rare earths phenomenon will attract more and more hot money into the investment space. Stand by for lots of stock market froth, and maybe a humongous bubble. But that's not happening just yet… If the Chinese are going to import rare earths product within, say 3 or 4 years, then the timeline is that non-Chinese producers need to do something NOW! That is, non-Chinese players need to hold an assayed ore body, and plan mine operations – now. They need to be building facilities – now. They need to get the hydro-metallurgy nailed down – now. They also need to work out agreements with eventual users – like, not now but yesterday! There's no time to lose. Thing is, the West is way behind the curve on all of this. Three years out, from now, is the blink of an eye in development terms. What's that tune? "Tardy to the Party?" Over the past three years or so, the Chinese have tightened export quotas. The actual, physical volumes are plummeting. And, as I mentioned above, the Chinese are going to buy rare earths from non-Chinese sources. Yikes. This means there's a mad rush – a stampede! – by Western firms to come up with ways to get rare earths into production, the sooner the better. Let's handicap this race. Some of the likely winners in this stampede are stocks I have recommended to the subscribers of Energy & Scarcity Investor. As such, I cannot divulge their names here in The Daily Reckoning. But I can discuss a couple of former recommendations, like Molycorp. Early this week, Molycorp made a strategic move. Molycorp paid not quite $90 million for a 90% interest in a former Soviet rare earths plant in Estonia. This is a "leapfrog" kind of deal. It gives Molycorp an up and running facility – while Molycorp rebuilds its old facilities at Mountain Pass – in mining-friendly California. (I'm just kidding about that "mining-friendly" thing.) This Estonian plant is the Silmet facility, which is optimized for light rare earths (LREE), which is coincidentally much of what Molycorp has at Mountain Pass. Silmet is also an important producer of the exotic elements niobium and tantalum – from Russian ore. The Silmet plant is modest in scale – about 3,000 tons per year – but at least it's up and running. There's a long-term workforce. There's also something critical at Silmet, which is a strong history of making the hydro-metallurgy work. Sometimes, though, when it gets cold in the winter, the chemical equilibrium at Silmet goes out of whack. Then it takes weeks to get things working again. Whoops. So Silmet advances Molycorp's game, in many respects. Still, I should note, for several years Molycorp has promoted itself as an "American" rare earths play. Molycorp management has racked up double-diamond elite status, flying to Washington, DC to plant Old Glory on top of Capitol Hill and trumpet the Mountain Pass redevelopment. Yet now Molycorp is buying a former Soviet LREE plant, in Estonia that uses Russian ore? Go figure. Does this mean that Molycorp is hedging its bets? Things might not go as well as planned with the California schedule? It's possible. Again, time will tell. Whatever happens in California – and ANYTHING can happen in California! – it's accurate to say that the Silmet news stunned the markets. Molycorp paid $9 million cash for the Silmet plant, plus 1,593,419 MCP shares valued at $50.21 each. Over the past week, Molycorp shares have soared from the mid-$50s to near $69 each, so the sellers are making out very well. The rare earths sector is heating up very quickly. Watch this space! Regards, Byron King Handicapping the Rare Earths Stampede originally appeared in the Daily Reckoning. The Daily Reckoning recently featured articles on stagflation, best libertarian books, and QE2 .
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against gold. The shaky foundation is crumbling, and those that relied on paper, like pension funds are in sad shape. Assets like stocks and land continue to tumble when priced in gold. As more pieces of paper money are needed to buy each ounce of gold, its price will increase.
April 8, 2011 MarketWatch) — Fears of rampant inflation and U.S. dollar weakness added fuel to gold's fire on Friday, pushing the metal to a record high, and took silver to a close above $40 an ounce, its first in three decades.
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