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- Help Break the Bankers’ Price Suppression Schemes Against Gold & Silver
- 50 factors powering gold
- So does the gold/silver ratio mean anything anymore?
- Gold Could Top $1,505 and Silver Could Top $45.45 This Week
- India Markets Wednesday Wrap-Up: Markets Benefit From Strong Asia
- Gold Breaches Nominal High of $1,500/oz…
- $1,500 in the rearview: Gold surge gathering steam... Silver closing in on $50
- Don't worry about the U.S. debt rating... This is the truly frightening fact about Treasurys
- Jim Rogers issues an urgent warning on silver
- Gold Breaks $1500, Silver Hits 8th Record in 13 Days
- Can a U.S. Investor hold his gold securely?
- Margin Hike?
- DOLLAR CYCLE
- April 2, 1792 : The US Coinage Act
- Amaranth Kill Shot: 78 Trillion Dollar Derivatives Book Compliments of J.P. Morgan Chase
- Why outlaw private gold and silver coins?
- Is Marc Faber’s Gold Valuation Rationally Optimistic Or Just Insane
- 'We view silver as gold on steroids'
- ECB: increase of EUR 3 million in gold and gold receivables
- The Gold Dollar
- Morgan Stanley Default,Out of Tokyo
- Gold: Ratio Molehill vs USD Photocopier Mountain
- Reserve Classification Systems: Similarities and Differences
- 50 Factors Launching Gold
- The Oil Weapon is Wielded
| Help Break the Bankers’ Price Suppression Schemes Against Gold & Silver Posted: 20 Apr 2011 05:03 AM PDT |
| Posted: 20 Apr 2011 03:26 AM PDT |
| So does the gold/silver ratio mean anything anymore? Posted: 20 Apr 2011 03:22 AM PDT The ratio looks to be about 33 right now. I've always been told the historical low point to watch for is 40. If it gets to 40 or below, then it is time to start trading silver for gold. 33 is a LOT below 40 so it has me wondering if we are in a new normal and history can't really guide us or..... is it really time to cash out some silver and move it into something else? Seems like the ratio is so far from normal that we have to see some type of correction. Either silver coming down or gold going up a lot more. Gregg |
| Gold Could Top $1,505 and Silver Could Top $45.45 This Week Posted: 20 Apr 2011 02:27 AM PDT Yatin Karnik submits: U.S. gold rose to a record high for a fifth straight session on Tuesday, its longest string of record highs since January 7. The metal's rise was modest. Gold rose $1.00, or 0.07%, to close at $1496.00 an ounce. Gold prices hit an intraday low of $1487.50 and a high of $1500.08 an ounce. Gold prices are now above its Bollinger band's upper band. Relative strenght indicator is sitting at 71.54 Silver futures prices for June delivery, now the most active contrast, rose $0.56, or 1.29% for a fifth straight session as well, to close at $43.94 per ounce on the Comex in New York. Silver prices hit an intraday low of $42.74 and a high of $44.15. Both gold and silver made record highs and 31-year highs in Tuesday's session. Gold briefly touched a psychologically significant new all-time high of $1,500 an ounce in late afternoon trading. In recent Complete Story » |
| India Markets Wednesday Wrap-Up: Markets Benefit From Strong Asia Posted: 20 Apr 2011 01:57 AM PDT Equitymaster submits: The Indian stock market gained further ground during the closing stages and as a consequence ended the day strongly in the positive. The BSE-Sensex edged higher by about 350 points whereas the NSE-Nifty logged in gains to the tune of 110 points (up 1.9%). Gains were also seen in BSE Midcap and BSE Small cap indices, both of which closed higher by more than 1% each today. The advance to decline ratio stood firmly in favor of the former with almost all the stocks on the Sensex, save a couple, ending in the green. Most Asian indices also closed the day in the positive with stocks from Europe also witnessing a positive trend currently. The rupee was seen trading at Rs 44.4 to the dollar at the time of writing. Today's gains had more to do with global factors than local, we believe. Investors bought into Asian stocks, including India, Complete Story » |
| Gold Breaches Nominal High of $1,500/oz… Posted: 20 Apr 2011 01:50 AM PDT
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| $1,500 in the rearview: Gold surge gathering steam... Silver closing in on $50 Posted: 20 Apr 2011 01:03 AM PDT From Bloomberg: Gold rose above $1,500 an ounce to a record in New York and London as a weaker dollar and concern about debt and faster inflation spurred demand for an alternative investment. Silver reached a 31-year high. The dollar slipped as much as 1 percent against six major currencies, trading at a 16-month low, while a U.S. gauge of trader inflation expectations approached the highest level since 2008. Gold, which typically moves inversely to the greenback, has climbed this year as unrest in the Middle East and North Africa and Europe's debt crisis boosted demand. "The dollar has lost ground to its major counterparts," James Moore, an analyst at TheBullionDesk.com in London, said in a report to clients. "The mix of inflation, currency debasement, euro zone debt and Middle East and North African unrest continues to fuel investment demand." Gold futures for June delivery gained as much as $11.10, or 0.7 percent, to $1,506.20 an ounce and were at $1,501.20 by 8 a.m. on the Comex in New York. The metal for immediate delivery in London was 0.3 percent higher at $1,501.18 an ounce after reaching a record $1,505.65. The difference between yields on U.S. 10-year notes and Treasury Inflation Protected Securities, a gauge of trader expectations for inflation, today widened to as much as 2.66 percentage points. The spread reached 2.67 percentage points on April 11, the most in three years. Standard & Poor's lowered its U.S. credit-rating outlook on April 18, citing the widening budget deficit. 'Best Returns Around' European Central Bank policy makers are balancing the need for higher borrowing costs in countries like Germany, where the economy is booming, against soaring bond yields in the region's heavily indebted nations. Some ECB governing council members have signaled they will back more increases in borrowing costs after the central bank lifted its benchmark rate by 25 basis points from a record low on April 7. "With interest rates remaining low in most countries, there is little reason not to own gold, as the metal currently offers the best returns around," said Gavin Wendt, founding director with MineLife Pty. Coupled with the debt turmoil in Europe and violence in the Middle East, "it's a perfect storm for precious metals, including gold and silver." Freeport-McMoRan Copper & Gold Inc.'s Indonesian unit halted underground activities at the country's Grasberg mine after an accident killed one worker and left another missing, a spokesman said yesterday. Grasberg contains the biggest single gold reserve, according to the company's website. Silver Surges Silver for May delivery in New York climbed as much as 2 percent to $44.80 an ounce, the highest price since January 1980, the year futures reached a record $50.35. The metal was last up 1.7 percent at $44.67 and has surged 44 percent in 2011. An ounce of gold bought as little as 33.59 ounces of silver in London today, the least since August 1983, data compiled by Bloomberg show. Palladium for June delivery was up 3.2 percent at $754.75 an ounce. Platinum for July delivery gained 1.3 percent to $1,793.60 an ounce. To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net. To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net. More on gold and silver: A tiny European nation just stopped selling gold This weekend's gold news could change everything Gold blowout: Hits $1,500... Mania event could arrive soon... |
| Don't worry about the U.S. debt rating... This is the truly frightening fact about Treasurys Posted: 20 Apr 2011 12:53 AM PDT From Gonzalo Lira: So on Monday, Standard & Poor's cut its ratings outlook for U.S. sovereign debt – and the markets had what can only be described as a tizzy. Stocks fell – commodities rose – I noticed things were off when my gold ticker shot up a full percentage point in under sixty seconds. Yikes! (Well, actually, as far as my own portfolio goes, it was more like, Yay!) Tons of people started scratching their heads, stroking their chins, and pompously wondering what it all means... Read full article... More on interest rates: The most important news you didn't hear today What could happen to gold when interest rates rise Why the Federal Reserve could raise interest rates in a matter of months |
| Jim Rogers issues an urgent warning on silver Posted: 20 Apr 2011 12:45 AM PDT From Zero Hedge: Jim Rogers commented on the recent move by the University of Texas to take delivery of $1 billion in gold, saying the decision is long overdue, and has only occurred because everyone else is now buying... thereby taking metal out of circulation.He adds, "But where were these guys five, 10 years ago? That's when they should have been doing all this." Indeed, the momentum chasers never show up until it's too late. Then Rogers had some words of caution for silver bulls: "If silver continues to go up like it has been over the past two or three weeks, yes, it would get to triple-digits this year. And then we'll have to worry. It's not parabolic yet. I hope something stops it going up in the foreseeable future and we have a correction." There is one caveat... Read full article... More from Jim Rogers: Jim Rogers: "We're at a moment of truth for the dollar" Jim Rogers: How anyone can profit from the coming crisis Jim Rogers: "Staggering problems" are coming to America |
| Gold Breaks $1500, Silver Hits 8th Record in 13 Days Posted: 20 Apr 2011 12:27 AM PDT Bullion Vault |
| Can a U.S. Investor hold his gold securely? Posted: 20 Apr 2011 12:24 AM PDT |
| Posted: 19 Apr 2011 11:17 PM PDT Sure why not. When better than before a holiday and light trading today and tomorrow? Hopefully Gold holds $1500, if not the $us will try to march back to 75, you will get the dip, and buy it. Oh and DOW futures up 141. LOL |
| Posted: 19 Apr 2011 10:19 PM PDT For many months now I've been warning we were going to have a dollar crisis and that dollar crisis would drive the final leg up in this ongoing two year C-wave advance. We are now on the verge of the panic selling stage of this three year cycle. On Monday the dollar briefly rallied on the S&P downgrade of US debt (who knew?). That had the potential to mark the bottom of the current dollar cycle. But by this morning the dollar has given back all of those gains and then some. I've noted in the premium report that the dollar's daily cycle often turns on the employment report at the beginning of each month. The previous cycle bottomed one day after the March report and the current daily cycle topped on the April report.  If this pattern continues then we can probably expect the current dollar cycle to stretch for another 2 1/2 weeks into the May report (give or take a day or two either way). I seriously doubt gold is going to suffer any meaningful correction as long as the dollar is in free fall, so I expect we are going to see the gold cycle stretch also. If the dollar does continue lower into the May employment report before putting in the cycle low it would then be set up for a more normal duration decline into the final three year cycle low due on or around the June report.  Details in last nights subscriber report.        This posting includes an audio/video/photo media file: Download Now |
| April 2, 1792 : The US Coinage Act Posted: 19 Apr 2011 10:00 PM PDT History of Gold |
| Amaranth Kill Shot: 78 Trillion Dollar Derivatives Book Compliments of J.P. Morgan Chase Posted: 19 Apr 2011 09:40 PM PDT
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| Why outlaw private gold and silver coins? Posted: 19 Apr 2011 09:00 PM PDT |
| Is Marc Faber’s Gold Valuation Rationally Optimistic Or Just Insane Posted: 19 Apr 2011 09:00 PM PDT
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| 'We view silver as gold on steroids' Posted: 19 Apr 2011 08:25 PM PDT  Brian Ostroff, the managing director of Windermere Capital, a Canadian investment firm, said he was bullish about the prospects for all precious metals because the world's central banks were printing money. But he was particularly upbeat about silver. "We love silver. It has definitely come into the forefront. The physical market characteristics are very positive," he told the Gold Report. "Ultimately, we view silver as gold on steroids. When you're in these up-trend's and everyone's looking at precious metals, silver tends to perform much better [than gold]. |
| ECB: increase of EUR 3 million in gold and gold receivables Posted: 19 Apr 2011 06:57 PM PDT
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| Posted: 19 Apr 2011 05:00 PM PDT E. Mason |
| Morgan Stanley Default,Out of Tokyo Posted: 19 Apr 2011 04:59 PM PDT http://dcoda.amplify.com/2011/04/16/...tout-of-tokyo/ Go figure! The Japanese government is considering moviing to another city since Tokyo isn't all that safe these days...Bankers have fled the city. Now Morgan Stanley hands over the keys to a central Tokyo office building, defaulting on a $3.3 billion loan! TOKYO (Reuters) – A Morgan Stanley property fund failed to make $3.3 billion in debt payments by a deadline on Friday, handing over the keys to a central Tokyo office building to Blackstone (BX.N) and other investors, the largest repayment failure of its kind in Japan. It marks the latest fallout from a series of highly leveraged investments by Morgan Stanley (MS.N), one of the most aggressive investors in worldwide property markets before the global financial crisis. The $4.2 billion MSREF V real estate fund missed its April 15 deadline to repay 278 billion yen($3.3 billion) worth of debt packaged in commercial mortgage-backed securities on the 32-storey Shinagawa Grand Central Tower, a property which has seen its value plunge, two people involved in the transaction said. This is the largest repayment failure of debt packaged in CMBS in Japan, according to analysts and industry experts, bigger than the 112 billion yen that real estate investor K.K. daVinci Holdings failed to pay on the Pacific Century Place office building. |
| Gold: Ratio Molehill vs USD Photocopier Mountain Posted: 19 Apr 2011 04:47 PM PDT |
| Reserve Classification Systems: Similarities and Differences Posted: 19 Apr 2011 04:45 PM PDT gold mining news |
| Posted: 19 Apr 2011 04:42 PM PDT |
| Posted: 19 Apr 2011 04:18 PM PDT --What resilience! Markets took less than 24 hours to shake off the spectre of a sovereign-debt default by the United States government. Most of the major indexes finished up on Tuesday trading. The spot gold price is just dying to close over US$1,500. And even oil got in on the act and closed higher. --Speaking of oil, you might have missed the story earlier this week that Saudi Arabia—the world's biggest oil producer with the world's largest proven oil reserves—actually cut production of oil in March...by 800,000 barrels per day (bpd). Saudi Oil Minister Ali al-Naimi said the market was over-supplied at the time. --The Saudis cut daily production from about 9 million bpd in January to 8.2 mbpd in March. For the market to be in oversupply, oil producers would have had to have misread the strength of oil demand. And of course by late March, after Japan's 9.0 magnitude earthquake, tsunami, and nuclear crisis, you could easily make the "over supply" argument. Or at least, the "demand isn't as large as we thought" argument. --But there are two other possible explanations for the Saudi production cut that are not, shall we say, as direct. The first, suggested by DR reader Malcolm Martin, will be somewhat familiar to long-time DR readers. Malcolm writes:
--Is Malcolm right? It's possible. At the very least, he highlights a point we brought up in the last issue of the Australian Wealth Gameplan: the security of oil and energy supplies from the Middle East and North Africa is now...not so secure. It could be good old-fashioned depletion and the inability to replace reserves. Or it could be one final possibility. --The final possibility is that the Saudis are using oil as a weapon. They've done this before. One of the more interesting theories about the cold war is that it wasn't Ronald Regan, Margaret Thatcher, or John Paul II that defeated the Soviet Empire. It was Saudi Arabia! Check out the chart below and you'll see what we mean. --There are three periods on the chart to illustrate what could be examples of "the oil weapon" being used. At the very least, they're examples of the unique geopolitical sensitivity of the oil price. Let's unpack them. -- The first period, in the blue circle, saw oil rise 183% from $3.56 to $10.11. U.S. President Richard Nixon had "closed the gold window" in America in 1971. You couldn't redeem U.S. dollars for Fort Knox gold anymore. That's the year the world went on a de-facto dollar standard with the dollar as the world's reserve currency. --Part of oil's move, then, could simply be the inflation that ensued as the dollar was uncoupled from gold and real things began going up in price (or the dollar began going down in value). It's also possible OPEC managed the oil price to punish the United States for trying to buy oil with cheaper dollars. If someone were paying you with inflated currency, you'd raise prices too (even if they were selling you weapons as well). --And speaking of weapons, there was also the Yom Kippur War in 1973. Syria attacked Israel in the East in the Golan Heights and Egypt attacked in the West in the Suez. The war ended in a stalemate, but showed what a tinder box the world's biggest oil-producing region was, and would be for years to come. It's also possible that the higher oil price could have been the Arab world's way of punishing the U.S. for its regular support of Israel. --The red circle on the chart shows oil's rise during the Iranian Revolution. Oil went up 183% in the 18 months between January 1979 and July of 1980, from $14.05 to $39.55. This price rise coincided with high inflation all over the Western world. At least part of oil's gain, then, is attributable to inflation. --The doubt about the security of Iranian supplies was clearly a big factor. Iran is a founding member of OPEC. It has the world's third-largest proven reserves of oil (137 millionbarrels) and second-largest reserves of natural gas. And for you history buffs out there, we learned in our investigations for the next issue of AWG that the West's first oil ventures in the Middle East were conducted through the Anglo-Persian Oil Company in 1908. --The Anglo-Persian Oil Company represented the interests of the British government in Iran (Persia). The company had been granted a 60-year lease to look for oil in 1901. It pumped its first oil in 1908. And it represented Britain's focus on the Eastern part of the Gulf of Arabia, including Iraq and Kuwait. That left the Western part of the Gulf, and Saudi Arabia, to American interests. But that is a story for AWG subscribers for next week! --Our point is the Iranian Revolution ended the West's energy dominance in the Gulf. In some ways, all the wars since have been fighting over how much influence European and American powers will continue to exert over the region. Oil is either used as an economic weapon by producers, or effectively weaponised by outside interests who are willing to take it by force. But we digress. --The last circle on the chart is the strangest of all. It shows oil rising by 105.7% between March of 1986 and July of 1987. It went from $10.40 to $22.40—during a time in which there was no major armed conflict in the Middle East. Granted, this did come after the 1985 Plaza Accord between the G-5 nations in New York. Central banks in America, Japan, the UK, France, and West Germany agreed to intervene in the currency markets to strengthen the Yen and weaken the greenback. Why? --The U.S. trade deficit with Japan was a political hot potato at the time. The U.S. pressured its trading partners to allow a decline in the dollar to boost U.S. export competitiveness and close the deficit with Japan. It didn't really work. But it did, coincidentally (oh those unintended consequences) lead to a huge bubble in Japanese property and stocks as foreign capital flooded into Japan and drove assets up unsustainably high. --But does the 1985 Plaza Accord account for all of oil's gain? There is an argument—which we won't explore in detail here—that the Saudi's flooded the oil markets with surplus crude in the mid 1980s at the request of the U.S. Their aim was to use their surplus production capacity to push oil prices down below the cost of production of Soviet crude oil. --Crude oil was one of the only exports the Soviets could sell to raise foreign currency reserves. Without it, the Soviets would run out of money. This school of thought says that Reagan bankrupted the Soviets not by outspending them but by crashing the price of their main cash export. Whether it's entirely true or not, the Soviet Empire did collapse, surprisingly quickly, just a few years later. --As a side note, Reagan may have helped win the battle against the Soviets by losing the war against deficits. He cut taxes, but never seriously tackled U.S. spending, which led to large, structural, and permanent U.S .Federal deficits. They'll be permanent until the U.S .defaults and can't spend at all. --You can see that there's an intriguing argument that the Arab world has always used oil as a weapon, just as America has always used the dollar as a weapon. When you look at the chart of West Texas Intermediate Crude below, you can see that oil has again risen on Mid East tension (mostly Libya). But the Saudi oil production cuts came before Japan's earthquake and before Libyan oil production fell dramatically. So if the Saudis are using oil as a weapon, who are they using it against? --Tomorrow, we'll take up the issue of who the Saudi's might be targeting this time. And we'll do what we said we'd do yesterday, which is to talk about how inflation is already out of the bag here in this part of the world and how you might hedge against it. --For today, it's clear that oil is rising for a series of geopolitical AND monetary reasons. And we haven't even added warfare to the mix...yet. AWG readers stay tuned for the full story next week. --Finally, thanks for dobbing in the stock brokers who have been distributing our newsletters to their clients for free. We got plenty of feedback on who's doing it. We have the names of brokers in Melbourne, Perth, and Sydney who have either been passing the work off as their own or just distributing en masse. Apparently our work is not big in Adelaide, Hobart, or Brisbane! --We're following up with our lawyers on the best way to pursue these miscreants. We'll keep you posted. And thanks again. Dan Denning |
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