Gold World News Flash |
- GoldSeek.com Radio Gold Nugget: Dr. Stephen Leeb & Chris Waltzek
- Ira Epstein's Weekly Metal Report
- Oil Crisis Just Got Real: Sinopec (Read China) Cuts Off Oil Exports
- What Does $1,500 Gold Really Mean?
- Is Canadian Farmland the Best Investment of All?
- Freefalling Dollar Sends Silver Above $46
- Dollar Cycle
- Interview: Jim Sinclair on Gold and the World Financial System
- Markets enjoy biggest rally of 2011
- 20 Signs That A Horrific Global Food Crisis Is Coming
- A hidden overarching hand seeks the global Gold Standard as the bonafide solution
- Things That Make You Go Hmmm - Such As Gold...
- Gold Seeker Closing Report: Gold and Silver Rise Above $1500 and $45
- Gold and Stocks Rally But is it Time For a Little Pullback
- In The News Today
- Get rid of the dollar and all will be well. An “expert” says so
- Paging Dr. Rogers: Patient Federal Reserve Confetti Is Asystolic
- Silver: Eligible Versus Registered and About That Big Inventory Change at Scotia Mocatta
- Chris Martenson: The breakdown draws near
- A comprehensive interview with Jim Sinclair by Ron Hera
- It’s Official: China Will Be Dumping US Dollars
- Can a U.S. Investor hold his gold securely?
- Embry and Turk bullish, Moriarty bearish on silver
- 25% Of Scotia Mocatta's Silver Transferred From "Registered" To "Eligible" Status: A 45% Reduction In "Physical"
- The Gold Price Will Go Higher Before this Rally Ends
- The US BOND market has become the most important market on the Planet
- James Turk - We Live on the Edge of Chaos, Dollar to Plummet
- Closing Context Update: Up-in-Quality Continues
- The One Press Release That The S&P Will Never Issue
- Gold Goes Bass Fishing
| GoldSeek.com Radio Gold Nugget: Dr. Stephen Leeb & Chris Waltzek Posted: 20 Apr 2011 07:02 PM PDT GoldSeek.com Radio Gold Nugget: Dr. Stephen Leeb & Chris Waltzek
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| Ira Epstein's Weekly Metal Report Posted: 20 Apr 2011 06:07 PM PDT In my last report dated April 7, 2011 I mentioned that silver had taken over the role as leader in the precious metal market. That observation was nothing really new from a historic perspective. Silver took over leadership in 2008 when world economies came to their knees. Looking back, the events back than set in place events that have driven gold-silver ratio to where it is today. As I've mentioned in previous reports, silver has been seen as the "poor" man's way to play precious metals. Today the men that played it don't look so poor.
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| Oil Crisis Just Got Real: Sinopec (Read China) Cuts Off Oil Exports Posted: 20 Apr 2011 06:05 PM PDT
As if a dollar in freefall was not enough, surging oil is about to hit the turbo boost, decimating what is left of the US (and global) consumer. Xinhua, via Energy Daily, brings this stunner: " Chinese oil giant Sinopec has stopped exporting oil products to maintain domestic supplies amid disruption concerns caused by Middle East unrest and Japan's earthquake, a report said Wednesday. The state-run Xinhua news agency did not say how long the suspension would last but it reported that the firm had said it also would take steps to step up output "to maintain domestic market supplies of refined oil products". Oh but don't worry, those good Saudi folks are seeing a massive drop in demand... for their Kool aid perhaps. "Sinopec would ensure supplies met the "basic needs" of the southern Chinese special regions of Hong Kong and Macao, but they also should expect an unspecified drop in supply, Xinhua quoted an unnamed company official as saying." Now... does anyone remember the 1970s?
And another perspective on how China just gave Geithner and his inflation exporting dreams the biggest, baddest middle finger, from Global Times:
Translation: Shit just got real, and is about to manifest itself in limit ups in both regular, and black gold.
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| What Does $1,500 Gold Really Mean? Posted: 20 Apr 2011 06:04 PM PDT When the price of Comex gold futures kissed a record high $1,500/oz. Tuesday before settling back to the high $1,400s at day's end, and then topped the benchmark in early trading Wednesday, the smack sounded a lot like "I told you so." The Gold Report's expert contributors explain what this milestone means for investors going forward.
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| Is Canadian Farmland the Best Investment of All? Posted: 20 Apr 2011 06:01 PM PDT I alluded here earlier to a class of investable assets with the potential to grow in value more spectacularly, even, than gold or silver. In the guest commentary below, my friend Tom McCafferty, a commodity trader and author of numerous books, makes the case for Canadian farmland as the best place to sock away money for your grandchildren.
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| Freefalling Dollar Sends Silver Above $46 Posted: 20 Apr 2011 05:55 PM PDT
At this rate the Hunt Brothers all time high to be taken out within a week...or a day, right about the time the dollar suffers terminal implosion. The DXY is now below 74.
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| Posted: 20 Apr 2011 05:41 PM PDT Gold Scents
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| Interview: Jim Sinclair on Gold and the World Financial System Posted: 20 Apr 2011 05:37 PM PDT Hera Research
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| Markets enjoy biggest rally of 2011 Posted: 20 Apr 2011 05:22 PM PDT Stock markets around the world staged their biggest rally of the year while gold surged to a new high. 
This posting includes an audio/video/photo media file: Download Now | ||||
| 20 Signs That A Horrific Global Food Crisis Is Coming Posted: 20 Apr 2011 04:24 PM PDT
20 Signs That A Horrific Global Food Crisis Is ComingCourtesy of Michael Snyder, Economic Collapse
The entire global economy is predicated on the ability to use massive amounts of inexpensive oil to cheaply produce food and other goods and transport them over vast distances. Without cheap oil the whole game changes. Topsoil is being depleted at a staggering rate and key aquifers all over the world are being drained at an alarming pace. Global food prices are already at an all-time high and they continue to move up aggressively. So what is going to happen to our world when hundreds of millions more people cannot afford to feed themselves? Most Americans are so accustomed to supermarkets that are absolutely packed to the gills with massive amounts of really inexpensive food that they cannot even imagine that life could be any other way. Unfortunately, that era is ending. There are all kinds of indications that we are now entering a time when there will not be nearly enough food for everyone in the world. As competition for food supplies increases, food prices are going to go up. In fact, at some point they are going to go way up. Let's look at some of the key reasons why an increasing number of people believe that a massive food crisis is on the horizon. The following are 20 signs that a horrific global food crisis is coming.... #1 According to the World Bank, 44 million people around the globe have been pushed into extreme poverty since last June because of rising food prices. #2 The world is losing topsoil at an astounding rate. In fact, according to Lester Brown, "one third of the world's cropland is losing topsoil faster than new soil is forming through natural processes". #3 Due to U.S. ethanol subsidies, almost a third of all corn grown in the United States is now used for fuel. This is putting a lot of stress on the price of corn. #4 Due to a lack of water, some countries in the Middle East find themselves forced to almost totally rely on other nations for basic food staples. For example, it is being projected that there will be no more wheat production in Saudi Arabia by the year 2012. #5 Water tables all over the globe are being depleted at an alarming rate due to "overpumping". According to the World Bank, there are 130 million people in China and 175 million people in India that are being fed with grain with water that is being pumped out of aquifers faster than it can be replaced. So what happens once all of that water is gone? #6 In the United States, the systematic depletion of the Ogallala Aquifercould eventually turn "America's Breadbasket" back into the "Dust Bowl". #7 Diseases such as UG99 wheat rust are wiping out increasingly large segments of the world food supply. #8 The tsunami and subsequent nuclear crisis in Japan have rendered vast agricultural areas in that nation unusable. In fact, there are many that believe that eventually a significant portion of northern Japan will be considered to beuninhabitable. Not only that, many are now convinced that the Japanese economy, the third largest economy in the world, is likely to totally collapse as a result of all this. #9 The price of oil may be the biggest factor on this list. The way that we produce our food is very heavily dependent on oil. The way that we transport our food is very heavily dependent on oil. When you have skyrocketing oil prices, our entire food production system becomes much more expensive. If the price of oil continues to stay high, we are going to see much higher food prices and some forms of food production will no longer make economic sense at all. #10 At some point the world could experience a very serious fertilizer shortage. According to scientists with the Global Phosphorus Research Initiative, the world is not going to have enough phosphorous to meet agricultural demand in just 30 to 40 years. #11 Food inflation is already devastating many economies around the globe. For example, India is dealing with an annual food inflation rate of 18 percent. #12 According to the United Nations, the global price of food reached a new all-time high in February. #13 According to the World Bank, the global price of food has risen 36%over the past 12 months. #14 The commodity price of wheat has approximately doubled since last summer. #15 The commodity price of corn has also about doubled since last summer. #16 The commodity price of soybeans is up about 50% since last June. #17 The commodity price of orange juice has doubled since 2009. #18 There are about 3 billion people around the globe that live on the equivalent of 2 dollars a day or less and the world was already on the verge ofeconomic disaster before this year even began. #19 2011 has already been one of the craziest years since World War 2. Revolutions have swept across the Middle East, the United States has gotten involved in the civil war in Libya, Europe is on the verge of a financial meltdown and the U.S. dollar is dying. None of this is good news for global food production. #20 There have been persistent rumors of shortages at some of the biggest suppliers of emergency food in the United States. The following is an excerpt from a recent "special alert" posted on Raiders News Network....
So what does all of this mean? It means that time is short. For years, many "doom and gloomers" have been yelling and screaming that a food crisis is coming. Well, up to this point there hasn't been much to get alarmed about. Food prices have started to rise, but the truth is that our stores are still packed to the rafters will gigantic amounts of relatively cheap food. However, you would have to be an idiot not to see the warning signs. Just look at what happened in Japan after March 11th. Store shelves were cleared out almost instantly. It isn't going to happen today, and it probably isn't going to happen tomorrow, but at some point a major league food crisis is going to strike. So what are you and your family going to do then? You might want to start thinking about that.
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| A hidden overarching hand seeks the global Gold Standard as the bonafide solution Posted: 20 Apr 2011 04:19 PM PDT 50 FACTORS POWERING THE GOLD BULL Share this:
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| Things That Make You Go Hmmm - Such As Gold... Posted: 20 Apr 2011 04:00 PM PDT
Grant Williams shares: "I had been reading about gold as an investment but more importantly as a hedge against money-printing for some time and had dabbled in ETFs while I told myself that I would DEFINITELY buy some gold – real gold. Physical gold. Shiny, yellow, heavy gold. But of course, I didn’t. It was all too hard, frankly. Why go to all the trouble of researching, finding a bullion dealer, choosing between bars and coins and then plunking down your cash in return for a lump of gold when you could sit at home in front of your computer, click your mouse a few times and be the proud owner of some unallocated claim on a pool of gold that may or may not be there but that gives you exposure to any move in the gold price? You can buy exposure to gold during the commercial break of Grey’s Anatomy. Easy. The trouble with doing that, is that you then end up with a position. It becomes a number that you trade into and out of based on extraneous factors that may or may not have an effect on the underlying price. There aren’t many people who have taken a position in GLD (or SLV for that matter) who haven’t either been chased out of their position in a big down-move, or failed to pull the trigger on a buy-order because they felt the price had run too far." All this and much more in the latest edition of Things That Make You Go Hmmm (pdf) Hmmm Apr 20 2011
This posting includes an audio/video/photo media file: Download Now | ||||
| Gold Seeker Closing Report: Gold and Silver Rise Above $1500 and $45 Posted: 20 Apr 2011 04:00 PM PDT Gold rose to a new all-time high of $1505.89 by late morning in New York before it fell back off in afternoon trade, but it still ended with a gain of 0.3%. Silver soared to a new 31-year high of $45.387 before it also fell back off in late trade, but it still ended with a gain of 2%.
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| Gold and Stocks Rally But is it Time For a Little Pullback Posted: 20 Apr 2011 03:13 PM PDT It has been a very interesting week thus far. Monday kick started traders with a heart pounding equities sell off which sent money into the US Dollar, precious metals and bonds as the safe havens of choice. Read More...
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| Posted: 20 Apr 2011 03:09 PM PDT
Thought For The Evening: The 1979 style setup for a ballistic move in gold is setting up right now! Jim Sinclair's Commentary If QE, aka the "non-economic purchase of US Treasury bonds" ends, who will buy the bonds required to finance the deficit? Apparently not China. PBOC governor says foreign reserves excessive China's huge stockpile of foreign exchange reserves, the world's largest, have become excessive and the government must diversify investments using the reserves, Zhou Xiaochuan, governor of the People's Bank of China, said in comments published on Tuesday. The country's foreign exchange reserves swelled by nearly $200 billion in the first quarter of this year to more than $3 trillion, indicating hefty capital inflows, and the government has so far focused on investing mainly in US dollar assets, including US Treasures. "Foreign exchange reserves have exceeded our country's rational demand, and too much accumulation has caused excessive liquidity in our markets, adding to the pressure of the central bank's sterilization," Zhou was quoted by the official Shanghai Securities News as saying. "The State Council has required a cut in excessive accumulation and good management of the funds accumulated, including diversification of investments," Zhou was quoted as telling a forum at Tsinghua University in Beijing. To keep the yuan exchange rate stable in a capital account control system, the PBOC injects huge amounts of yuan into the banking system by buying foreign currencies from commercial banks.
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| Get rid of the dollar and all will be well. An “expert” says so Posted: 20 Apr 2011 02:23 PM PDT Dollar Replacement Beat Goes On … and On Share this:
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| Paging Dr. Rogers: Patient Federal Reserve Confetti Is Asystolic Posted: 20 Apr 2011 02:18 PM PDT
A few days ago Jim Rogers prudently warned that silver had entered parabolic mode and the the only case which would not lead to a collapse in silver prices (once silver hit $100 that is) is if the Federal Reserve note, or the liability to all those uber-valuable Fed assets known as Treasury Bonds (and of course Agencies, thank you QE1) became "confetti." Well, confetti is what we have. As of tonight, the dollar has just taken out the 2009 lows, and only the extreme carry trade which sustained the overall market into the biggest market crash ever, back in 2008 is now a lower point in the DXY index. In other words only a complete market wipe out, or an exogenous external event such as war, now that the market does not even blink at such black swans as civil wars, bankrupt European countries, nuclear catastrophes, and record earthquakes, can lead to some restoration in the purchasing power of the US currency. Incidentally, as the long term DXYchart below shows, the current dollar cash is by now means the most pronounced one. A far bigger one occurred in the mid 80s, when the dollar was cut in half from over 160 to 80, in a move that, as everyone who was alive back then and not merely some derivative of gaseous gallium metal and arsenic trichloride, recalls culminated with Black Friday. Oh yeah, gold just hit another record high.
And here is a thought experiment for everyone: if the Fed's chief liability - the Federal Reserve note - is plummeting in value, what does that mean for its chief asset - obligations issued by the United States of America...
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| Silver: Eligible Versus Registered and About That Big Inventory Change at Scotia Mocatta Posted: 20 Apr 2011 02:15 PM PDT
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| Chris Martenson: The breakdown draws near Posted: 20 Apr 2011 01:51 PM PDT 9:49p ET Wednesday, April 20, 2011 Dear Friend of GATA and Gold: Also taking a comprehensive and compelling look at the world financial situation this week is financial blogger Chris Martenson, who writes: "There are two entirely, completely, utterly different narratives at play here. One of them is that the economy is recovering, policies are working, and the vaunted consumer is either back in the game or close to it. "The other is that the world is saturated with debt, there's no realistic or practical model of growth that could promise its repayment, and the level of austerity required to balance the books is so far beyond the political will of the Western powers that it borders on fantasy to ponder that outcome. "If we believe the first story, we play the game and continue to store all of our wealth in fiat money. If we believe the second, we take our money out of the system and place it into 'hard' assets like gold and silver because the most likely event is a massive financial-currency-debt crisis." Martenson's commentary is headlined "The Breakdown Draws Near" and you can find it at Martenson's Internet site here: http://www.chrismartenson.com/blog/breakdown-draws-near/56594 CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Canuc Resources Pursues Ecuador and Nova Scotia Gold Projects Canuc Resources Corp. (TSX: CDA) has confirmed high-grade gold and the potential for large-tonnage, low-grade copper and gold mineralization at its primary asset, property in the historic Nambija gold mining district in southeastern Ecuador. Last November Canuc took an option on the Mill Village gold property in southwestern Nova Scotia, which includes two past-producing mines. Canuc plans to begin surface and underground exploration at Mill Village in the next several weeks, financed by $2 million recently raised through a private placement. To generate immediate income, Canuc is acquiring MidTex Oil and Gas Co., owner of a producing gas well and a lease on 320 acres in Stephens County, Texas. Canuc's CEO, Gary Lohman, has more than 30 years of experience in the mining industry, primarily as a geologist, and the company's officers include similarly experienced people. For more information about Canuc, please visit http://www.canucresources.ca/. Join GATA here: An Evening with Bill Murphy and James Turk World Resource Investment Conference Gold Rush 2011 https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: http://www.gata.org/node/16 ADVERTISEMENT 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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| A comprehensive interview with Jim Sinclair by Ron Hera Posted: 20 Apr 2011 01:43 PM PDT 9:42p ET Wednesday, April 20, 2011 Dear Friend of GATA and Gold: Ron Hera of Hera Research today has a comprehensive interview with gold and commodities trader and mining entrepreneur Jim Sinclair, who will be a speaker at GATA's Gold Rush 2011 conference in London in August. (See http://www.gata.org/node/9818.) Sinclair tells Hera that derivatives are bringing down the world financial system and forcing ever-more "quantitative easing" on the world, that the bankruptcy of states in the United States is equivalent to the bankruptcy of members of the European Union, that the end game for central banks will be a "virtual currency" linked to gold, that inflation is already under way and can't be stopped even if QE is stopped, that standards of living will fall sharply, and that the only protection for investors is in gold and commodities. The interview is headlined "Jim Sinclair on Gold and the World Financial System" and you can find it at GoldSeek here: http://news.goldseek.com/GoldSeek/1303311900.php CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Canuc Resources Pursues Ecuador and Nova Scotia Gold Projects Canuc Resources Corp. (TSX: CDA) has confirmed high-grade gold and the potential for large-tonnage, low-grade copper and gold mineralization at its primary asset, property in the historic Nambija gold mining district in southeastern Ecuador. Last November Canuc took an option on the Mill Village gold property in southwestern Nova Scotia, which includes two past-producing mines. Canuc plans to begin surface and underground exploration at Mill Village in the next several weeks, financed by $2 million recently raised through a private placement. To generate immediate income, Canuc is acquiring MidTex Oil and Gas Co., owner of a producing gas well and a lease on 320 acres in Stephens County, Texas. Canuc's CEO, Gary Lohman, has more than 30 years of experience in the mining industry, primarily as a geologist, and the company's officers include similarly experienced people. For more information about Canuc, please visit http://www.canucresources.ca/. Join GATA here: An Evening with Bill Murphy and James Turk World Resource Investment Conference Gold Rush 2011 https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: http://www.gata.org/node/16 ADVERTISEMENT 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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| It’s Official: China Will Be Dumping US Dollars Posted: 20 Apr 2011 01:36 PM PDT In case you missed it, earlier this week China announced that its foreign currency reserves are excessive and that they need to return to "reasonable" levels. In politician speak, this is a clear, "we are sick of the US Dollar and will be taking steps to lower our holdings." Remember, the US Dollar is China's largest single holding. And China has already begun dumping Treasuries (US Debt). This comes on the heels of China deciding (along with Russia) to trade in their own currencies, NOT the US Dollar. Not to mention the numerous warnings Chinese politicians have been issuing to the US over the last 24 months. In simple terms, China is done playing nice and is now actively moving out of US Dollar denominated assets. This is the beginning of the US Dollar's end as world reserve currency. The dimwits in Washington don't understand this because their advisors are all Wall Street stooges who don't think debt or deficits matter. After all, why would they? Their entire business model is now based on endless cheap debt from the US Fed. So it's only logically (in their minds) that the US as a sovereign state engage in the same strategies. What does this mean? We're on out own in terms of preparing for what's coming. The US Dollar has already taken out its 2009 low in the overnight futures session. We now have only one line of support before the US Dollar breaks into the abyss (all time lows). So if you're not preparing for mega-inflation already, you need to start doing so NOW. The Fed WILL continue to pump money into the system 24/7 and it's going to result in the death of the US Dollar. 
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| Can a U.S. Investor hold his gold securely? Posted: 20 Apr 2011 01:00 PM PDT The attention of the gold world was grabbed by the action of a the University of Texas Investment Management Co. that switched their gold investments to bullion and actually took delivery of around 20 tonnes of gold in the form of 6,643 gold bars, worth $987 million. It is now stored in a bank warehouse in New York. This event was treated as remarkable in the United States.
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| Embry and Turk bullish, Moriarty bearish on silver Posted: 20 Apr 2011 12:58 PM PDT 8:42p ET Wednesday, April 2o, 2011 Dear Friend of GATA and Gold (and Silver): The "perfect storm" is under way for silver, Sprott Asset Management Chief Investment Strategist John Embry tells King World News today, starting with J.P. Morgan Chase's uncoverable short position, combining with strong industrial demand and continuing monetary debasement. An excerpt from the interview can be found at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/4/20_Em... Or try this abbreviated link: Meanwhile, in another interview with King World News, GoldMoney's James Turk notes that Greece's financial situation is collapsing again and the dollar is not getting the support it got when this happened two years ago. Turk construes this as evidence that a "waterfall" decline in the dollar itself is imminent, with explosive consequences for the monetary metals. An excerpt from that interview can be found at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/4/20_Ja... Or try this abbreviated link: A contrary view can be found at 321Gold, where Bob Moriarty predicts an imminent crash in silver. "I might be off by a couple of days in silver and maybe a couple of bucks," Moriarty writes, but "the next major move in silver is down." Or that's what he predicted on March 25, with the silver price at about $37.50. Four weeks later the silver price is almost $8 higher, a 21 percent gain. But then maybe that's not a "major move." Moriarty's commentary is headlined "Is Silver Topping?" and you can find it at 321Gold here: http://www.321gold.com/editorials/moriarty/moriarty032511.html CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Resource Spins Off Platinum/Palladium Venture: Company Press Release, January 18, 2011 VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY)and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy. PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding. Following the transaction: -- Prophecy will own approximately 90 percent of PCNC. -- PCNC will consolidate its share capital on a 10 old for one new basis. -- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp. -- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings. Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000. For the complete announcement, please visit: http://prophecyresource.com/news_2011_jan18.php Join GATA here: An Evening with Bill Murphy and James Turk World Resource Investment Conference Gold Rush 2011 https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: http://www.gata.org/node/16 ADVERTISEMENT 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: 20 Apr 2011 12:14 PM PDT
Something interesting appeared in the daily NYMEX report of its silver warehouse stockpile data: Canada's largest bullion depository (and one of five total) reclassified a whopping 5.2 million ounces of silver from Registered to Eligible status. In order to get a sense of how big this amount is, which amounts to just under $238 million at today's fixing price, it represents just over 25% of the total silver stored at Scotia Mocatta, and about 5% of the total silver held across all depositories. The reason for this substantial shift is given as follows: "due to a reporting reclassification, 5,287,142 t oz was moved from Registered to Eligible." That's a pretty substantial reporting reclassification. Of course it could well be nothing but that, although one would imagine that a fat finger is somewhat unlikely when it comes to such a material amount. On the other hand, as those who follow the NYMEX data know too well, registered silver is actual physical Comex silver. Eligible on the other hand is sometimes called "someone else's silver" as it does not go through assays on exit/selling events. In other words, this is silver that can not be used to make delivery under a futures contract. As a result of this reclass, total registered silver dropped by 13% from 41.0 million ounces to 35.8 million. Assuming one does not have full faith in the simple error story, does this mean that deliverable silver just dropped by 13% overnight (this event occurred yesterday, but was reported as usual with a 24 hour delay)? And if so, is this effective transformation of physical to semi-paper silver indicative of what we may expect from other depositories in the next few days as the delivery notices start coming in? Snapshot of silver holdings (link):
For those who are confused about the distinction between the two categories, SilverAxis has done a good analysis:
We will follow this curious development which had not occured prior to silver entering its "parabolic" phase. P.S. For those curious, Scotia Mocatta had a comparable "glitch" affecting its gold stocks, where 13% of its registered gold mozzied off to eligible status. h/t DrDerivative
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| The Gold Price Will Go Higher Before this Rally Ends Posted: 20 Apr 2011 11:42 AM PDT Gold Price Close Today : 1498.30 Change : 3.80 or 0.3% Silver Price Close Today : 44.465 Change : 0.546 cents or 1.2% Gold Silver Ratio Today : 33.70 Change : -0.332 or -1.0% Silver Gold Ratio Today : 0.02968 Change : 0.000290 or 1.0% Platinum Price Close Today : 1804.00 Change : 32.50 or 1.8% Palladium Price Close Today : 760.75 Change : 29.05 or 4.0% S&P 500 : 1,330.36 Change : 17.75 or 1.4% Dow In GOLD$ : $171.82 Change : $ 2.16 or 1.3% Dow in GOLD oz : 8.312 Change : 0.105 or 1.3% Dow in SILVER oz : 280.08 Change : 4.17 or 1.5% Dow Industrial : 12,453.54 Change : 186.79 or 1.5% US Dollar Index : 74.36 Change : -0.678 or -0.9% The GOLD PRICE was stopped today by $1,505, but backstopped by $1,495. After all the back and forth, the gold price closed on Comex at $1,498.30 (Shades of the Nice Government Men, warding off the strong psychological mojo of a $1,500+ close!) up $3.80. Not much point discussing this, since y'all already know what I'm thinking. The gold price will reach at least the target from its inverse Head and Shoulders or $1,525, maybe $1,600. It's overbought some, but not like baby ducks at Easter time. We might get a correction lasting a couple of days, but then it will take off again, assuming it doesn't hit $1,525 before that. $1,502 in the aftermarket. The GOLD PRICE will go higher before this rally ends. Higher, I say. Here's a sample of how Comex closes alone can confound you. On Comex the SILVER PRICE ended at 4446.5c, up 54.6c. Not bad, but it ignores the silver price trading in the aftermarket above 4500c at 4524c right now. Nag, nag, nag! What nags me now is that those white metals, platinum prices, and palladium prices, have been lagging badly. They made highs for the move back in February, and lower highs in April. Today they rose a bit, but nothing like those February highs. If silver and gold prices are so garlicky, why aren't platinum and palladium, which appear to be markets that have rolled over and started down? Another thing I don't like is that discount on the wholesale buy price of US 90% silver coin. It has now reached $1.15 BELOW spot. Of course, that makes US 90% silver coin ("junk coin" in coin-dealer jargon) the very cheapest way to buy silver now, nearly $2.00 cheaper than .999 fine one oz silver rounds, so that's the only way to buy silver. But that widening discount often accompanies market tops. All this pokes me in the ribs to swap SILVER (the whitish one) for gold (the yellow one) right now, as this spikey action in silver is screaming that some sort of peak draweth night. But silver still is reaching for the moon. It's more overbought than cheap loud ties at Christmastime (I'm running low on metaphors here) but believe me, it is offering no other sign of topping out, except its extreme height. That does sort of sound silly, doesn't it, using its success as the strongest argument against it? It's possible the gold price can run on this rally to $1,600 and the silver price to $50. US DOLLAR INDEX reversed today, to the downside again. Began to weaken overnight, then broke 74.80 and sank like your mama's wedding ring that time you dropped it down the bathroom sink. Dropped 67.8 basis points to trade now at 74.351. What meaneth this moiling? Simply that the US dollar index has staged a strong reversal falling to a new low for the move, and pointing it prow toward 74.25 minimum, and much more likely, 71.25, maybe 70.70. 'Tain't good. The dollar's tergiversation sent that scabrous monster, the euro, gapping up for a marginal new high at 1.4542, up 1.26%. Trading now at 1.4521. Clearly the Fed is intent on lowering the US dollar's exchange rate. No accidents in currency exchange rates. The Japanese yen (as opposed, I supposed, to the FRENCH yen) closed at Y82.48/$ (121.24c/Y100). that's about flat with yesterday. STOCKS sprang the big surprise today. They ran up to the same high as April's, roughly roughly 12,450. Dow closed at 12,453.54 up 186.79 (1.52%). S&P rose 17.75 to 1,330.36, up 1.35%. So what if I have grabbed the wrong tail on this dog and stocks are not breaking down but have been making an inverse head and shoulders? Well, if that's so, stocks might hit 13,345 before this is over (height of head added to neckline). Ask me if I'm whimpering? Y'all already know the answer. If stocks gain 900 points, silver will gain twice as much, gold about the same. I lust for stocks the way some people lust for a root canal or bypass surgery. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com Phone: (888) 218-9226 or (931) 766-6066 © 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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| The US BOND market has become the most important market on the Planet Posted: 20 Apr 2011 11:20 AM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] It is my opinion that out of all the markets that the monetary officials are keenly interested in, some to the point of tinkering with constantly, no one market has become more important to them than the US Treasury market. Not even the Dollar has them as extremely on edge as the long bond in particular. The reason for this is twofold. First of all, since the Fed is engaging in QE2, they cannot afford to allow the bond market to break down technically on the price charts. That would send a signal to every single hedge fund computer algorithm in existence to slam this market down sharply lower. The resultant rise in long term interest rates would choke off the economic "recovery" and would utterly and hopelessly short circuit the very reason for their massive purchases of Treasuries, purchases which I might add have resulted in their balance sheet holding more Treasury paper than the total repor...
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| James Turk - We Live on the Edge of Chaos, Dollar to Plummet Posted: 20 Apr 2011 11:00 AM PDT  With gold and silver hitting new highs and the dollar breaking to new recent lows, today King World News interviewed James Turk out of London. When asked about the US dollar decline Turk stated, "Here we are right at the lows and in fact we are actually now probing the November 2009 lows on the dollar index. The interesting thing is that the low in 2009 on the dollar index that is when the Greek crisis started to unravel and people went into the dollar as a safe haven."
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| Closing Context Update: Up-in-Quality Continues Posted: 20 Apr 2011 10:23 AM PDT
From Capital Context  Sector performance open-to-close for the S&P shows Energy and Tech outperforming and Financials and Basic Materials underperforming. Headlines will crow of the strength in equities and credit markets today, and rightly so as on a close-to-close basis, this was one of the strongest days we have seen on both sides of the capital structure in a while. However, pouring our now-traditional water on that fire is the lack of high beta participation in credit, the underperformance of financials, and the clear continuation of the somewhat more risk-averse up-in-quality trade in credit and equity markets. As we discussed in this morning's Midday Movers , most of the action resulting in today's headline-grabbing performance was in the overnight session with both volume and momentum fading dramatically as the day wore on. The S&P drifted back to VWAP mid afternoon and stayed there until a late day surge up to the highs - perhaps on an excited anticipation of AAPL's results (and its knock on sentiment on every other tech stock). Either way, stocks were pretty much unch from their day-session opening levels until that last 30 minutes and we note that financials and basic materials were net losers on the day open-to-close in equity land and the former considerably more so in credit (e.g. WFC was 5bps wider open-to-close today ending at 79bps).
Very little changed in equities or credit from the lunchtime recap, as we suggested was likely, leaving equity markets the outperformer today (on a beta-adjusted basis over credit) and European sovereigns the lone underperformers. Credit indices modestly outperformed their underlying single-names and HY 3s5s flattened a little more (as did financials) but breadth was extremely positive (at around 13-to-1) with IG ripping back across the range to its tightest since inception and intrinsics at their tightest since 3/21 (sub 92bps). This was IG's largest close-to-close compression day on a relative basis since 3/18 (pre-roll technicals at play there) and 2/25 (less technically impacted) and the gappy nature makes us wonder if the plethora of sell-side research pumping vol strategies (in credit that is) has overloaded the boat a little with gamma. HY , on the other hand, is only back to 4/11 levels for its intrinsic value and shifted close-to-close by its largest since 4/1. While the move today was impressive on a close-to-close basis, we stuck in a very narrow range from open-to-close of only around $0.25 and closed well short of the contract's tightest levels around $103. There were some very juicy compressions in HY names though but it may be of note that the mortgage insurers (PMI, MGIC, and Radian) all underperformed quite considerably on such a good day overall (while MBIA was among the winners). HY3s5s intrinsics has now fallen 7bps in the last two days - somewhat at odds with the compression in the indices. Secondary bond trading confirmed the themes discussed so far with financials seeing net selling from the buy-side and another day of HY net-selling and IG net-buying pressure. Once again we also see the duration extension apparent in corporate bond land with 0-7Y bonds being net sold, 7-12Y the most aggressively bought and >12Y being bought. Looking at the data, it is apparent that buy-side firms are preferring extending duration (to reach for yield) in higher quality names and unwinding shorter-duration HY names. We think this makes sense here and it fits with our oft-discussed theme trades (up-in-quality, up-in-quality, 3s5s flattteners, and selectivity).
 The USD was the story of the day, losing 1% close to close relative to the majors and on a trade-weighted basis. Silver was the clear high beta play on this as Gold underperformed the greenback (close to close) albeit with both making new highs intraday. JPY crosses recovered from a midday slump to rally into the close - dragged-by or dragging the equity markets is unclear. DXY came very close to the 2009 lows that we discussed this morning leaving it very prone to a test and we note the FX forward-implied DXY curve - seen at the left - considerably more positive going forward than it was at the 11/26/09 lows (USD rate rises more likely now and priced into fwd curve?). Vol markets had an interesting day with VIX managing to hold above 15% on the close (lower close-to-close) but considerably higher open-to-close. Implied correlation increased also off the low open, got back to unch but slipped lower again into the close (more sector 'dis-correlation' from financials?). This is a theme we have discussed in some depth - the increase in dispersion - and while today was not a great example of less systemic moves in markets, it seems pros are starting to consider this a bigger possibility (and that fits with our view that 2011 is all about alpha as the easy beta trades have gone for now). Skews actually dropped modestly today in the S&P index vol space but nothing to write home about yet - more likely reactions to the gap in the S&P as opposed to thoughtful de-skewing (another great word!). Contextually , equities handily outperformed credit today but every sector (apart from financials) agrred on direction at the aggregate today (tighter in spreads and higher in stocks) with Energy and Tech the clear winners in the race of equity over credit. Financials was net losses in our universe of stocks while credit managed a small compression but that is close-to-close which tells a very different story from the trend we saw during the day session. Consumer credits (cyc and noncyc) saw vols rise relatively more on average than most sectors today but the relative drop in financial vols (on average in our universe) was interesting in connection with the index implied correlation in equity vol land. Equities followed the same pattern as stocks and vol today with higehr quality names performing best relative to lower quality names but there were still some with JNJ, MCD, and UTX (reported today) all seeing much more relative bidding in equity than credit - which makes some sense given their rock-bottom spreads and the much less codependent nature of the debt-equity relationship at those levels. At the other end we saw URI, PKG, CYH, DGX, and CSC outperform in credit relative to equities today. Bottom line for us today is that the themes are playing out still. Up-in-quality is continuing in credit even as stocks outperform and while today's ebulience will please many, we look to the more archaic for our clues to what is really going on behind the scenes (away from the algos).
Europe
 We write in detail on Europe's moves in this morning's Midday Movers , suffice it to say that little shifted after that leaving European sovereigns the major disappointers of the day (well actually mainly the peripherals). CEEMEA outperformed nicely and while Greece, Ireland, and Italy were a disaster, Italy and Spain managed to creep modestly tighter in 10Y yields (cash markets). Spain deteriorated modestly in CDS land but Italy compressed - though all saw their curves flatten somewhat - and we remind readers to check the earlier post for our thoughts (albeit very sarcastically) on the much-heralded success of the Spanish auction today (cough?yield up 30bps from prior auction?cough). Some of this had the feel of SovX index arb as the highest beta (PIIGS) protection was bought and intrinsics underperformed the index itself compressing off its 10bps wides. This index arb may help explain why financials in Europe never caught the cold of the sovereigns today but even though they ended tighter, the move was minimal at best and pretty much in line with non-financials. Financial senior-sub decompressed very modestly unable to break back below 100bps. Portuguese corporates underperformed (PORTEL and EDP) while banks and consumer names topped the outperformers. Asia All in all a pretty solid day in Asian credits with the majority tighter as both AXJ (Asia Ex-Japan) and Japan compressed with the latter the clear outperformer. We note the trend of AXJ-JAPAN compression is now almost two weeks old and 12bps long (from 35bp)s to 23bps and while TEPCO seems to be becoming a ward of the state - the 23bps premium (relative to a general discount) to AXJ seems like a cheap bullish bet here for those who think Japan is out of the woods. Japan CDS dropped 3bps to 82bps - its tighest since the earthquake - so it would appear perhaps that the Japan-AXJ trade has some legs there also. Australia continues to hover just wide of AXJ and with its considerable banking exposure, we have a slight bias to be short Aus credit and long AXJ credit in that pair - Aussie housing hasnt had the knock-on effect yet that we suspect will come the bank's way as rates rise and NIM drops. Index/Intrinsics Changes CDX16 IG -2.23bps to 92.52 ($0.09 to $100.28) (FV -1.75bps to 91.39) (6 wider - 117 tighter <> 65 steeper - 59 flatter) - No Trend. Spreads were tighter in the US as all the indices improved. IG trades 0.9bps wide (cheap) to its 50d moving average, which is a Z-Score of 0.3s.d.. At 92.52bps, IG has closed tighter on 85 days in the last 593 trading days (JAN09). The last five days have seen IG flat to its 50d moving average. HY trades 18.3bps wide (cheap) to its 50d moving average, which is a Z-Score of 0.5s.d. and at 434.73bps, HY has closed tighter on only 43 days in the last 593 trading days (JAN09). Indices generally outperformed intrinsics with skews mostly narrower. Comparing the relative HY and IG moves to their 50-day rolling beta, we see that HY underperformed by around 1.1bps (or 9%). Interestingly, based on short-run empirical betas between IG, HY, and the S&P, stocks outperformed HY by an equivalent 14.8bps, and stocks outperformed IG by an equivalent 3.5bps. Among the IG16 names in the US , the worst performing names (on a DV01-adjusted basis) were UnitedHealth Group Inc (+1bps) [+0.01bps], Fortune Brands Inc. (+0.82bps) [+0.01bps], and McDonald's Corporation (+0.66bps) [+0.01bps], and the best performing names were RR Donnelley & Sons Company (-6.47bps) [-0.05bps], Hartford Financial Services Group (-5.89bps) [-0.05bps], and GATX Corporation (-5.72bps) [-0.04bps] // (absolute spread chg) [HY index impact]. Among the HY16 names in the US , the worst performing names (on a DV01-adjusted basis) were Radian Group Inc (+32.62bps) [+0.29bps], PMI Group Inc/The (+34.81bps) [+0.28bps], and MGIC Investment Corp (+15.33bps) [+0.15bps], and the best performing names were MBIA Insurance Corporation (-111.58bps) [-0.77bps], Energy Future Holdings Corp. (-79.35bps) [-0.54bps], and K Hovnanian Enterprises, Inc. (-60.65bps) [-0.48bps] // (absolute spread chg) [HY index impact].
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| The One Press Release That The S&P Will Never Issue Posted: 20 Apr 2011 10:17 AM PDT
It took less than 48 hours for the market to completely shrug off S&P's warning about America's credit rating, even as the dollar: that prima facie indicator of US stability and viability, has just hit a fresh 16 month low. And while nothing anyone says has much of a chance to impact the market, which continues to move with a negative 1 correlation to the now default carry funding currency, the following is the press release that S&P should issue if it wants to truly bring attention to the US debt crisis. NEW YORK (Standard & Poor's) April 22, 2011--Standard & Poor's Ratings Services said today that it initiated ratings on the debt issues of the Federal Reserve System (commonly referred to as U.S. dollars) with a AAA/Negative Outlook. From John Lohman
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| Posted: 20 Apr 2011 09:50 AM PDT syndicate: 1 Author: Vedran Vuk Synopsis: The University of Texas purchased more than 600,000 ounces of gold for its funds… but how important is this really? Also in this edition: For the first time since 1936, American households are receiving more from the government than they are giving. Dear Reader, With so much government intervention and spending since the crisis, one has to think, "Where's the breaking point?" It's rather hard to quantify. But sooner or later, we'll know. In my opinion, it's the point where it no longer makes sense to produce wealth in the private sector. I'll give you a recent personal example. One of my best friends since junior high called me up with a business idea and wanted some advice. After he shared his idea, I was floored. I've heard plenty of business plans and ideas from fri...
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