Gold World News Flash |
- SGT & Chapman: Silver, Gold, Tyranny & Solutions
- David Morgan: $75 Silver Looming
- $100 Up Days For Gold To Become Routine
- Being Positioned And Prepared For The Unexpected
- A Vote of 'No Confidence'
- A Vote of 'No Confidence'
- Gold Surpasses Platinum
- Guest Post: Gold Surging - Buy Mining Stocks? Not So Fast, Says Frank Barbera
- Gold Up $41, Hits Record $1761
- Gold Seeker Closing Report: Gold Gains $50 While Dow Drops 600
- Morgan analyst sees gold at $2,500 by year-end
- If you think gold is flying now, wait for QE3, Turk tells King World News
- Peter Grandich comments on GATA's London conference
- An Acceleration in Gold has Begun
- $1760 Gold
- Fed Has Some Tricks Left, but None Are Magic
- Stock rout continues in Asia; Gold extends to record high 1747.14.
- Futures Rout Accelerates: Emergency Fed Announcement Possible
- Gold soars over $1,700 on debt fears, equities tumble
- Follow Global Indexes
- Special Update 10:00PM EST
- We’re Now Back at November 2009 Levels… Are the Bulls Listening Now?
- Gold!
- Gold Price Closed at $1710.20
- Things Will Get Worse
- Notes From the Underground
- Gold and Silver Break Higher As ECB to Accelerate Euro Debasement
- Brace for Impact
- Gold Skyrockets To Record Levels / Dow Plummets 634.76 Points
- SGT Speaks With Chapman About Silver, Gold & Tyranny
| SGT & Chapman: Silver, Gold, Tyranny & Solutions Posted: 08 Aug 2011 06:36 PM PDT |
| David Morgan: $75 Silver Looming Posted: 08 Aug 2011 06:00 PM PDT The Gold Report
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| $100 Up Days For Gold To Become Routine Posted: 08 Aug 2011 05:56 PM PDT Gold is a small part of most investment portfolios despite a decades long uptrend. Investment advisers have either routinely dismissed gold as part of an investment portfolio or recommend only a token position as a hedge. This is likely to change as gold gains recognition as a safe haven alternate currency. As investors rush to [...]
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| Being Positioned And Prepared For The Unexpected Posted: 08 Aug 2011 04:58 PM PDT Tweet
Reading time: 5 – 8 minutes
I recently finished two weeks in London which ended with the GATA Gold Rush 2011 conference. I was in the room during the taping of the Jim Sinclair interview. How right has he been all along! The flat I rented in London was about two tube stops from the Tottenham riots. Now I am in Athens headed to the islands for an enjoyable two weeks. With all the turmoil I often wonder: Do the riots follow me or do I follow the riots? One common theme on RunToGold is to assess the probability and gravity risks, analyze potential solutions or plans and then take action with provident living principles which may lead to survivalism in the suburbs or some other form of life hedge. UNITED STATES LOSES TRIPLE A RATING In April Treasury Secretary Timothy Geithner was asked concerning the risk of the U.S. losing its triple-A credit rating: Secretary Geithner replied, "No risk of that." Then the politicians bickered about the debt ceiling and came to a faux resolution. On 5 August 2011 the Wall Street Journal reported: S&P removed for the first time the triple-A rating the U.S. has held for 70 years, saying the budget deal recently brokered in Washington didn't do enough to address the gloomy outlook for America's finances. It downgraded long-term U.S. debt to AA+, a score that ranks below more than a dozen governments' Boom, Boom, Pow!
In 2009 Mr. Sinclair said of my liquidity pyramid: "A very good, simple and clear representation of the problem lacking a practical solution." Before his interview at the GATA conference I wanted to thank him for his gracious compliment. Regarding the liquidity pyramid Mr. Sinclair remarked, "Perfect."
PREPARATION, CONFIDENCE AND CALM I have received a tremendous increase in comments and emails from readers and friends. They all seem to want expert advice from someone who knows what is going on. Why do you think I wrote hundreds of articles on Run To Gold? When the time for performance comes the time for preparation has passed. I really wish I could provide some advice for those 'caught between a rock and a hard place' who are watching their pensions and retirement accounts evaporate. But I am off swimming in the beautiful islands of the Mediterranean Sea and do not have ready access to the phone. Those darn crazy gold bugs do not look so crazy now. How right was Mr. Sinclair when he called $1,650 gold a decade ago when it was around $265? Good thing his thin skin is gold-plated. But I have already written about the evaporating Euro, how retirement accounts could boost Treasuries and as I wrote in 18 January 2009 why and how the Treasury bubble will burst: As the yields on Treasury Bills approach 0% they have the return of cash but do not have the benefits of cash as they may be impregnated with counter-party risk or have decreased liquidity. In other words, Treasury Bills and cash have the same benefit profile but not the same safety and liquidity profile. The Wall Street Journal reported 4 August 2011 that "Bank of New York Mellon Corp. on Thursday took the extraordinary step of telling large clients it will charge them [0.13%] to hold cash." Now the FRN$ moves one step closer to evaporating. Why pay 0.13% to hold FRN$ when you can pay a 0.18% storage fee to hold unencumbered allocated insured gold? Is it really wise or prudent to save five basis points to be in a potentially worthless fiat currency while being an unsecured creditor of an institution(s) that has needed trillions in bailouts? Treasuries are not looking so risk-free are they?
CONCLUSION What is happening is no real surprise to those who understand monetary science and basic economic law. I laid out the case years ago in my book The Great Credit Contraction. Those persuaded have likely ensconced themselves within a financial forcefield of silver and gold. As the storm rages and intensifies they feel no particular urgency or panic. They are prepared for Winter and can remain solvent much longer than the market can remain chaotic. After all, the melting point for gold is 1,947.52 °F which may be its FRN$ after this latest up leg. For those who are new, I recommend Apmex for coins because of their A+ BBB rating and low premiums and GoldMoney if you want a third-party to store your metals. DISCLOSURES: Long physical gold, silver and platinum with no interest in DOW, S&P 500, the problematic SLV ETF, gold ETF or the platinum ETFs. Copyright © 2008. This article was published on http://www.RunToGold.com by Trace Mayer, J.D. on August 8, 2011. This feed is for personal and non-commercial use only. Applicable legal information and disclosures are available. The use of this feed on other websites may breach copyright. If this content is not in your news reader then it may make the page you are viewing an infringement of the copyright. Please inform us at legal@runtogold.com so we can determine what action, if any, to take. If you are interested in how to buy gold or silver then you may consider GoldMoney.(Digital Fingerprint: 1122aabbLittleBrotherIsWatching3344ccdd) Copyright © 2011 RunToGold.com. This Feed is for personal non-commercial use only. If you are not reading this material in your news aggregator then the site you are looking at may be guilty of copyright infringement. Please contact legal@runtogold.com so we can take legal action immediately. Plugin by Taragana
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| A Vote of 'No Confidence' Posted: 08 Aug 2011 04:57 PM PDT A Vote of 'No Confidence'Here's a terrific post by Jesse discussing the financial market's reaction to Downgrade U.S.A. - Ilene Courtesy of Jesse's Cafe Americain
Investors do not need a ratings agency to tell them what to think about the US sovereign debt status. The Treasury market is broad and deep, and the facts about the US financial situation are reasonably available, although sometimes hard to retrieve through the fog of rhetoric and deception. Specialist agencies like S&P are needed to rate more obscure financial instruments and entities without a wide following or deep and liquid markets. And the US ratings agencies have shown themselves perfectly willing to produce 'ratings on demand for pay' over the last ten years for their large financial customers. And nothing appears to have changed. So today we saw Treasuries rally sharply even on the longer end of the curve where the downgrade occurred. How about that! But it was perfectly understandable.
Why? Because the message was not about the quality of the Treasuries, which the market already knows much better than the bureaucratic paper pushers at S&P. Rather, the implications were about the outlook for the US economy, and not the Wall Street carny game. And that outlook for the real economy is becoming increasingly dire. The reasons for this should be obvious by now, and it is not because of the long term debt situation. Here is a review of some of the changes in the past twelve years that have taken the US from surplus to disaster. We saw a remarkable flight to the safety of gold, but much less in the more industrially popular silver, and a serious sell off in the commodities. That was the clear sign that this market action was a comment on the economy, with its slack demand and stagnant wages, the dire condition of the average American family, and the dysfunctional nature of the economy. And for the first time in a while, there was a feeling that the US government has lost its bearings and its ability to respond effectively even in the face of a common cause and emergency, and it was expressed dramatically. Obama came on television to speak. And after he said his piece, the losses in the equity markets doubled. Why is this? Because the President may be many good things, and have many good qualities, but he is most surely not a leader, and does not possess an overweening moral principle or vision which he can communicate and achieve. What does he stand for, and who or what does he really support? The best way to be thrown under the bus is to be one of his supporters and constituents. He is the very profile of a modern corporate manager, heavily laced with the moral timidity of a professional bureaucrat. He could not carry Franklin Roosevelt's leg braces. I would not hold him to this higher standard if he had not chosen to pursue the leadership of the Presidency in times of crisis. But he did. And he sold out faster than a hooker when the fleet comes in. The President's response to this latest crisis is familiar, to have the Congress choose yet another bipartisan commission, similar to the ones that have failed to reach any practical consensus so far, and delegate the problem to them, hoping for the best.
And what makes this situation even worse is that as bad as this President may be, his opposition are largely created from the same mold, the same lobbyist infested cesspool, and are unprincipled servants to power, beholden to creeps, crooks, and sociopaths who pay them and reward them with power, to the detriment of the American republic. There are wide expectations that the Fed will 'do something' tomorrow. I doubt they will do anything, but they may say something. This is what Wall Street wants. If they do not get it, and the markets begin to move downward with some momentum, look for yet another hastily tossed together crisis response to come out later in the week. Hostage-taking pays in this environment. The downgrade was a vote of no confidence in the leadership of the US, across the board: Democrats and Republicans, the Banks and Wall Street, the Regulators and the Fed, and their partners in the corporations, the mainstream media, the economists, and big business. In a parliamentary government, the leadership of the US would have fallen this week. This is what the market is saying. The pity will be if the Fed does announce QE3, and the market rallies, and it is quickly forgotten, business as usual. For then it is just a reckoning delayed. The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustained recovery.
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| Posted: 08 Aug 2011 04:57 PM PDT
A Vote of 'No Confidence'Here's a terrific post by Jesse discussing the financial markets' reaction to Downgrade U.S.A. - Ilene Courtesy of Jesse's Cafe Americain
Investors do not need a ratings agency to tell them what to think about the US sovereign debt status. The Treasury market is broad and deep, and the facts about the US financial situation are reasonably available, although sometimes hard to retrieve through the fog of rhetoric and deception. Specialist agencies like S&P are needed to rate more obscure financial instruments and entities without a wide following or deep and liquid markets. And the US ratings agencies have shown themselves perfectly willing to produce 'ratings on demand for pay' over the last ten years for their large financial customers. And nothing appears to have changed. So today we saw Treasuries rally sharply even on the longer end of the curve where the downgrade occurred. How about that! But it was perfectly understandable.
Why? Because the message was not about the quality of the Treasuries, which the market already knows much better than the bureaucratic paper pushers at S&P. Rather, the implications were about the outlook for the US economy, and not the Wall Street carny game. And that outlook for the real economy is becoming increasingly dire. The reasons for this should be obvious by now, and it is not because of the long term debt situation. Here is a review of some of the changes in the past twelve years that have taken the US from surplus to disaster. We saw a remarkable flight to the safety of gold, but much less in the more industrially popular silver, and a serious sell off in the commodities. That was the clear sign that this market action was a comment on the economy, with its slack demand and stagnant wages, the dire condition of the average American family, and the dysfunctional nature of the economy. And for the first time in a while, there was a feeling that the US government has lost its bearings and its ability to respond effectively even in the face of a common cause and emergency, and it was expressed dramatically. Obama came on television to speak. And after he said his piece, the losses in the equity markets doubled. Why is this? Because the President may be many good things, and have many good qualities, but he is most surely not a leader, and does not possess an overweening moral principle or vision which he can communicate and achieve. What does he stand for, and who or what does he really support? The best way to be thrown under the bus is to be one of his supporters and constituents. He is the very profile of a modern corporate manager, heavily laced with the moral timidity of a professional bureaucrat. He could not carry Franklin Roosevelt's leg braces. I would not hold him to this higher standard if he had not chosen to pursue the leadership of the Presidency in times of crisis. But he did. And he sold out faster than a hooker when the fleet comes in. The President's response to this latest crisis is familiar, to have the Congress choose yet another bipartisan commission, similar to the ones that have failed to reach any practical consensus so far, and delegate the problem to them, hoping for the best.
And what makes this situation even worse is that as bad as this President may be, his opposition are largely created from the same mold, the same lobbyist infested cesspool, and are unprincipled servants to power, beholden to creeps, crooks, and sociopaths who pay them and reward them with power, to the detriment of the American republic. There are wide expectations that the Fed will 'do something' tomorrow. I doubt they will do anything, but they may say something. This is what Wall Street wants. If they do not get it, and the markets begin to move downward with some momentum, look for yet another hastily tossed together crisis response to come out later in the week. Hostage-taking pays in this environment. The downgrade was a vote of no confidence in the leadership of the US, across the board: Democrats and Republicans, the Banks and Wall Street, the Regulators and the Fed, and their partners in the corporations, the mainstream media, the economists, and big business. In a parliamentary government, the leadership of the US would have fallen this week. This is what the market is saying. The pity will be if the Fed does announce QE3, and the market rallies, and it is quickly forgotten, business as usual. For then it is just a reckoning delayed. The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustained recovery.
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| Posted: 08 Aug 2011 04:55 PM PDT |
| Guest Post: Gold Surging - Buy Mining Stocks? Not So Fast, Says Frank Barbera Posted: 08 Aug 2011 04:27 PM PDT Submitted by Chris Martenson Gold Surging: Buy Mining Stocks? Not So Fast, Says Frank Barbera With the astonishing recent price rise in gold, many investors are asking themselves: is now the time to move capital into mining stocks? Frank Barbera, respected precious metal mining stock expert and editor of the Gold Stock Technician newsletter, has a viewpoint that will likely surprise many. While extremely bullish in the longer term, Frank sees too many risks in the near term and advises smart money to wait. He cautions: "I've been watching the mining stocks since 1983 so a fair amount of time that I spent watching the group. I have a wide variety of unique technical indicators on the sector and as I started to see the stock market topping out over the last two to three weeks I wrote my readers a note to say the mining stocks are also very overbought. Mid July we saw one of the second most overbought readings on the XAU, on the arms index in five years. And that kind of reading is a big warning and so I'm not surprised to see them going down. The last letter I put out I told subscribers that I thought the mining stocks could get cut in half in here and I'm going to stick with that. I think we're looking at a 30 to 50 percent decline over the next six months. The XAU, which recently peaked out at around 220, I think you could see that close to 110 before this decline is complete. So, now, why is that? Really, the truth seems to be that a lot of these assets have been very, very highly correlated and that mining stocks are a "risk on" asset. Now there are a lot of very competent analysts out there that have been strongly recommending them, pointing to the idea that the stocks are, quote, "cheap". When you look at Barrick Gold or Newmont Mining you see 13, 12 times earnings, multiples relative to cash flow that are near multi-decade lows. I don't disagree with any of that. I think that the mining stocks are a great value on the fundamentals. On the other hand the equity market looks like it could be heading for a very substantial decline and I think that mining stocks – they have not shown the ability, at least not yet, to decouple from the equity market. Now, clearly nothing is cast in stone and I sort of evaluate this day to day but, you know, if you look at the past data it really suggests that they're going to get hit if the market goes down. And, at some point I think what you'll see is I'm looking for a bear market in equities over a period of a couple of months. I think during that period of time you will see gold go through the roof, the physical metal. I also think you'll see some nice upward progress in silver. I'm in the camp where I think silver is going to act like a monetary metal. Sure they may pull back here in the short term but I think there's a real opportunity there for silver to turn the corner especially if we get another Jackson Hole special come the end of August with Dr. Bernanke and more QE. I think silver will light up like a firecracker. But, the mining stocks, they need to simply fall to a bigger discount to the underlying metal. And, at some point then if we end up getting into a really strong dollar movement of the downside I think that's when you might down the line a bit you see the mining stocks turn. Now I also want to make another point that's very important. I think that ultimately this shakeout in the mining stocks, we don't have to put numbers on it but let's call it a substantial decline. Once that decline is over I think they will reach a low probably into the first quarter of next year in 2012 and from that point I think you'll see a multiyear bold market in the mining stocks where they play catch up to where they should be and then to where metal prices will be. So I think that it's going to be very volatile and right now they're decoupling and that decoupling may stretch out dramatically but then they'll eventually catch up. So I still see an enormous opportunity there but I think that mining stock investors may have to wait awhile to capitalize on that opportunity." Also in this interview:
Click here to listen to Chris' interview with Frank Barbera (runtime 40m:45s): Report a Problem Playing the Podcast
Or start reading the transcript below: Chris Martenson: Welcome to another www.chrismartenson.com podcast. I am, of course, Chris Martenson and today we are talking with Frank Barbera one of the top experts on precious metal mining companies and editor of the very well respected Gold Stock Technician newsletter. In his analysis for investors, Frank overlays a macro outlook on top of a highly rigorous technical analysis and employs a market-timing approach to reduce the inherent volatility within this very high beta sector. So for many years now, Frank has also managed private equity capital most notably for the Caruso Fund with particular focus on precious metals, energy, currencies, all things of, I know, intense interest to our listeners here. Frank, we're delighted to have you here. With all the recent action in gold, we have a lot to talk about. Frank Barbera: You bet Chris. Thank you for having me. Chris Martenson: Oh, my pleasure. Now, you know, gold's up a 180 dollars an ounce since early July. What do you see as some of the key drivers behind this? You know, how much momentum does this run up have in your estimation? Frank Barbera: Well, strangely enough, you know, I know there are a lot of people out there who are saying that gold could be a bubble and that maybe it's going to come down sharply. Right now, I would strongly disagree with that. I think when you take a survey of what's going on in the world and you look at Europe. Europe is in the midst of a major banking crisis, a banking crisis that could have widespread contagion from not only Europe but back to the United States through the credit default markets. And the U.S. also has, as we've seen now, major debt problems and a very difficult situation in terms of an economy that seems to be relapsing back into recession and that, once again, is putting massive pressure on the Federal Reserve to try and do something to ameliorate what looks like is shaping up to be another hard landing. You look at all of these factors and what it adds up to is gigantic uncertainty. And it is that uncertainty which is under painting the move higher in precious metals. Another important point which your listeners should really take into consideration is the fact that this is a climate where because global growth is slowing, short term interest rates especially here in the United States are really locked at zero. Now, depending on what metric of consumer prices you want to look at – let's say we take this fairly horrible CPI that's constructed at 2% inflation. Right now you have negative real rates in the United States. And if you go back over a historic period of time and you look at negative real rates and the price returns on gold, gold does very, very well as long as short term rates are in negative territory. Now when short term rates are normalized and they move above the rate of inflation that at that point can become a problem for gold. I don't see any way that that's going to happen for the longest period of time especially when you start to look at some of the recent economic data that's coming out of the States. We see very weak employment. We see GDP backward revisions as far as 2003; they went back just recently to downwardly revise the GDP data, the recent quarter coming in at about 0.38 with final demand at around 0.08. So you have a comatose growth situation here in the United States. No growth, chronically high structural employment - that is a situation where it's impossible to see how short term interest rates are going to start to move up. So I think negative real rates are here to stay and gold will continue to surge. Right now, Chris, the other thing that's really amazing about all this is like you said, we've had this strong move up in precious metals prices, in gold prices. But remarkably, from a technical point of view we really have not seen any kind of bullish enthusiasm. It's slowly starting to creep into the market over the last day or two but I look at dollar-weighted call-to-put options data each day and that tells me a lot about how much money is flowing into calls and how much money is flowing into puts. And, right now, even though we've gone to $1660 on the gold price we have not seen those call-to-put ratios move up to readings near two and a half or three to one, which would typically tell us we're getting into a frothy market. They've been hovering around 160, 170, and that tells me that there's still plenty of room to go. Also, on a momentum basis, if you look at moving average convergence, divergence, which is called MACD or RSI. We're seeing strong momentum confirmation by the move up in the precious metals - outstanding relative strength. To me this tells me that gold could easily surge in coming weeks towards the 1800 level and I have really very little doubt in my mind that we'll see 2000 over the next two to three months. So I think the price is going sharply higher from here. Chris Martenson: So against that though we see that the USD is up about a full tick today, up almost 1.4% at 75. It looks like a decent pop for the day but it seems almost maybe stuck in a range. How are you looking at the dollar now which is the anti-gold? Frank Barbera: Well, that's a good point and I'm glad you brought that up. The one caveat I would have with gold in the short term is that you could see a very short-lived pull back. So this is not something that I think investors should really be terribly worried about but I could see something, for example, like the GLD pulling back towards maybe the 155 to 160. We're at 160 right now but about the 155 to 156 area. So you could have a couple more days of strength in the dollar and you might get a few more days of short-term weakness in the gold price but I think within a couple of days were going to make another low in the gold market and then from there the price will turn higher and begin another large trending move to the upside. So in the very short term I do think we're going to see a little bit more dollar strength. The dollar index is at about 75.02 as we speak here on a Thursday morning up about a buck. I think you could see a push up towards about 77.5 maybe 78 over the next four to five days. And, now there's one other little caveat. The dollar is showing a very, very weak pattern. When we talk about poor quality rallies this is really the textbook definition of a poor quality rally. So I'm not really that sure that we'll even make a move to 77 but I'm allowing for the possibility that it could do that over maybe the next week or so. That could correlate to some kind of a short-term period of weakness in the gold price and at that point then I think we'll probably start to see signs of a reversal back to the downsize in the dollar and a reversal back to the upside in gold. So, you know, one of the things I would really recommend to listeners is to not worry too much about short term moves. This is one of those times you really have to think big picture. If you're very concerned about getting the best price, break up the capital that you have into smaller increments and dollar cost your way into the market in stage tranches because trying to put too fine a point on any of these markets right now is not the greatest idea. But, for what it's worth I do think we'll see a little more bounce in the dollar and short term pullback in gold and then I think gold will reverse higher. Click here to read the rest of the transcript.
Note: Listeners interested in the conclusions expressed within this interview will also want to read Chris' recent report on The Screaming Fundamentals For Owning Gold And Silver, which takes a deep dive into the data behind the supply and demand imbalances in the bullion markets.
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| Gold Up $41, Hits Record $1761 Posted: 08 Aug 2011 04:16 PM PDT While the massive drubbing across risk assets has modestly subsided, the global investing herd has finally realized that in the absence of shifting money into bonds (or even in addition to), there is a certain shiny yellow metal that may be just as good a store of value (granted, inedible) that despite a lack of cash flows (and who needs cash flow in a fiat based exchange system which will soon be wiped out anyway), is probably just a good substitue and as of this night is providing 1761 reasons as to why it is becoming increasingly obvious that if anybody listened to Hugh Hendry's presentation from last year in which he suggested people panic, it is the central planners. Should the Fed proceed with announcing QE3 tomorrow in the form of Operation Twist 2, gold will likely resume it vertical ascent to $2,000 which may be breached as soon as Friday. Alternatively, should Bernanke keep mum and disappoint everybody, all bets are off, across every single asset class.
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| Gold Seeker Closing Report: Gold Gains $50 While Dow Drops 600 Posted: 08 Aug 2011 04:00 PM PDT Gold rose to a new all-time high of $1714.88 in Asia before it retraced back to $1691.15 at about 10AM EST, but it then rose to a new record high of $1718.79 by early afternoon in New York and ended with a gain of 3.24%. Silver climbed to as high as $40.32 in Asia before it dropped back to $38.42 by late morning in New York, but it then rallied back higher in the last couple of hours of trade and ended with a gain of 2.53%.
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| Morgan analyst sees gold at $2,500 by year-end Posted: 08 Aug 2011 03:55 PM PDT By Andrea Hotter http://online.wsj.com/article/BT-CO-20110808-714003.html LONDON -- JP Morgan has become the latest bank to up its forecast for spot gold prices, hiking its estimates by a whopping 39% and predicting the precious metal to reach at least $2,500 a troy ounce by the end of the year. This is almost $800 per ounce higher than current levels, which represent an all-time high. The U.S. bank had previously expected spot gold to be at $1,800 per ounce by year-end. The move will come amid very high volatility, the bank's Colin Fenton said, and is being driven by "rising probability of a reflaring of financial crisis." ... Dispatch continues below ... ADVERTISEMENT Lewis E. Lehrman on How to Solve the U.S. Debt Problem Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program. Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust. Lehrman says: Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust." To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata Earlier Monday, Goldman Sachs raised its forecast for gold, saying its economists now place a one-in-three chance of a U.S. recession that would most likely occur within the next six months. But its prices are significantly lower than JP Morgan's, with Goldman predicting a spot prices of $1,645 per ounce in three months and $1,730 per ounce by six months. Gold soared higher overnight and has become an investor favorite amid deteriorating economic conditions in the euro zone and the U.S. Friday's downgrade of the U.S. credit rating from AAA to AA-plus by ratings agency S&P triggered the most recent strength in gold, which leapt over $70 from Friday's low to peak at $1,715.29/oz earlier Monday. Morgan Stanley, ANZ, UBS, MF Global, and Barclays Capital last week all upgraded their gold price forecasts, while producers like Barrick Gold, AngloGold Ashanti, and Randgold Resources have been making bullish statements in support of further rises in recent days. But JP Morgan said it isn't just gold that will benefit from the financial malaise. Commodities geared toward Asia, investment, and inflation will outperform commodities anchored more to the growth prospects and local supply chains of the United States. "The bullish basket includes Brent crude oil, gas/oil, gold, raw sugar, copper, corn, and wheat," said JP Morgan's Fenton. "The bearish basket includes WTI crude oil, RBOB gasoline, aluminum, zinc, and North American natural gas." He singled out sugar, noting that dollar weakness and rising inflation expectations open the upside for raw sugar prices to surge far higher than would otherwise be likely, perhaps doubling or more in a spike. But he cautioned that "sugar rallies tend to be brief, violent, and difficult to time." Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: 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: 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
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| If you think gold is flying now, wait for QE3, Turk tells King World News Posted: 08 Aug 2011 03:48 PM PDT 11:40p ET Monday, August 8, 2011 Dear Friend of GATA and Gold (and Silver): GoldMoney founder and GATA consultant James Turk, who spoke at GATA's Gold Rush 21 conference in London and whose repeated predictions of a summer explosion in gold are starting to look understated tonight, tells King World News that gold will keep flying for a while, the more so if the Federal Reserve responds to the world market crashes by launching a third round of "quantitative easing." An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/8_Tur... CHRIS POWELL, Secretary/Treasurer 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 Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: 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: ADVERTISEMENT Lewis E. Lehrman on How to Solve the U.S. Debt Problem Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program. Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust. To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata
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| Peter Grandich comments on GATA's London conference Posted: 08 Aug 2011 03:37 PM PDT 11:36p ET Monday, August 8, 2011 Dear Friend of GATA and Gold: Market analyst Peter Grandich, who spoke at GATA's recent Gold Rush 2011 conference in London, comments about it tonight as a preface to the latest edition of the Grandich Letter. You can find it here: http://www.grandich.com/2011/08/special-update-1000pm-est/ CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum Reports 10.97 Million Ounces Inferred An independent resource report on the Wellgreen project in the Yukon Territory in Canada has just confirmed that it as one of the largest platinum group metals projects in Canada and one of the few outside South Africa, Prophecy Platinum Corp. Chairman John Lee says. The report, compliant with Canadian National Instrument 43-101, was written by geologist Todd McCracken of Wardrop Engineering Inc., a Tetra Tech company. It incorporated drill data from 701 diamond drill holes (182 surface and 519 underground) totaling more than 53,222 metres. Using a 0.4 percent nickel equivalent cutoff grade, the Wellgreen deposit now contains a total inferred resource of 289.2 million tonnes at an average grade of 0.53 g/t platinum, 0.42 g/t palladium, 0.23 g/t gold (1.18 g/t PGM and gold), 0.38 percent nickel, and 0.35 percent copper. Separately, the deposit also contains an indicated resource of 14.3 million tonnes at an average grade of 0.99 g/t platinum, 0.74 g/t palladium, 0.52 g/t gold (2.25 g/t PGM and gold), 0.69 percent nickel, and 0.69 percent copper. Prophecy Platinum Corp. trades on the Toronto Venture Exchange under the symbol NKL, on the pink sheets in the United States as PNIKD, and in Frankfurt as P94P. For the complete press release on the Wellgreen report, please visit: http://prophecyplat.com/news_2011_july14_prophecy_platinum_new_resource_... Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: 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: ADVERTISEMENT Golden Phoenix Q2 2011 Conference Call Posted at Company Internet Site The second quarter 2011 conference call of Golden Phoenix Minerals Inc. (GPXM) has been posted at the company Internet site for immediate playback. The call includes updates on the start of gold production at the company's Mineral Ridge gold project in Nevada, the letter of intent to acquire the Santa Rosa gold mine in Panama, and the company's due-diligence efforts to secure a senior stock exchange listing. The conference call is 18 minutes long and you download an mp3 of it here: http://www.goldenphoenix.us/audio/GPXMCC071211.mp3 Or play back the call here: http://goldenphoenix.us/conferencecalls/ Golden Phoenix is a U.S. mining company with international exposure to gold, silver, and strategic metals. The company's business model combines project generation and royalty mining that offers the potential for exploration upside, coupled with the backing of production and future royalty streams. View company videos here:
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| An Acceleration in Gold has Begun Posted: 08 Aug 2011 03:08 PM PDT In recent months we've been talking and writing about a potential acceleration in Gold. The chart said we were close and in all honesty Gold has actually been in a state of gradual acceleration since the 2008 low. Read More...
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| Posted: 08 Aug 2011 03:06 PM PDT |
| Fed Has Some Tricks Left, but None Are Magic Posted: 08 Aug 2011 03:05 PM PDT By JON HILSENRATH The objective: to keep the damaged postbubble economy from drifting into zombie-land. Now, stock markets are gyrating and the economic outlook is growing dimmer. S&P's downgrade of U.S. debt is a reminder that the financial system is one shock away from more instability. As Mr. Bernanke prepares to lead a meeting of the Fed's policy committee Tuesday, he must be asking himself: Are there any rabbits left? The answer: Yes. But some of them are very small. Some might bite. And he's reluctant to pull them out until he is sure the audience is ready. [source]
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| Stock rout continues in Asia; Gold extends to record high 1747.14. Posted: 08 Aug 2011 02:33 PM PDT
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| Futures Rout Accelerates: Emergency Fed Announcement Possible Posted: 08 Aug 2011 02:32 PM PDT The last time we had a modestly comparable collapse in overnight trading, a certain futures trader from SocGen whose gimmickry had been uncovered, caused the Fed to lower its Fed Funds rate in an emergency meeting first thing in the morning. Which is why we wonder, should the ongoing rout accelerate, to an extent driven by the decimation in the Korean Kospi, down -9.5% at last check, but also due to increasing worries the Fed may not announce QE3 tomorrow (or if it does, it will be OT2-like and won't have any actual LSAP component to it), whether Bernanke will be forced to have an emergency address with market in the morning, around 7 am, in order to prevent what is shaping up to be a market collapse of epic proportions. And certainly not helping matters is either Chinese inflation coming in hotter than expected, (see prior post), nor the fact that in the People's Daily, PBoC advisor Xia Bin said that China doesn't rule out "normal market operations" to promotes is own interested when necessary amid the US debt turmoil. "China should set up an overseas investment committee to accelerate the strategic use of foreign exchange, Xia said, according to the report. This committee should organize storage of strategic materials, Xia said, according to the report. The country should allow and encourage companies to purchase foreign exchanges with the yuan, the report said, cited Xia as saying." Wait a minute, you may ask, how does that work without China floating the Yuan? The answer: precisely. So while we wonder just what punitive measures China will take to make sure America behaves, here are the futures. We will update this chart if anything insane occurs.
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| Gold soars over $1,700 on debt fears, equities tumble Posted: 08 Aug 2011 02:30 PM PDT August 08 (Reuters) — Gold surged more than 3 percent on Monday, surpassing $1,700 an ounce for the first time after Standard & Poor's cut the top-notch AAA credit rating of the United States, setting off an investor stampede for safety. In a rout reminiscent of the 2008 financial crisis, Wall Street plunged nearly 7 percent and other commodities collapsed as panicky investors sought refuge in bullion and U.S. Treasuries. Analysts scrambled to revise up gold forecasts and gold volatility spiked as options traders put on bullish bets. [source]
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| Posted: 08 Aug 2011 02:22 PM PDT
Below is a link from bloomberg that will let you follow all indexes globally. See link here.
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| Posted: 08 Aug 2011 02:10 PM PDT The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! August 08, 2011 06:04 PM My working vacation in LONDON was filled with news of wild financial markets, riots and unrest in several London areas, and two uninvited phone calls to my hotel room in the wee hours of the morning from a misguided person who assumed reaching out to me 24/7 worldwide for personal advice comes with reading my blog. WRONG! The GATA London conference was superb. There were virtually no sales pitches of any kind from the speakers and instead conference goers were blessed with a wealth of insights, data and outlooks by which even yours truly were enlightened. I want to again thank GATA for not only a top-notch conference, but for being one of the very few who remained aggressively bullish on gold from the time I first went long just above $300. I truly believe they helped me stay long. GATA is the 21st century David vs. Go...
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| We’re Now Back at November 2009 Levels… Are the Bulls Listening Now? Posted: 08 Aug 2011 02:03 PM PDT For months now I've been warning about the stock markets facing a devastating collapse. I cited mutual fund cash levels, systemic leverage, derivatives exposure, and on and on.
And yet, despite the clear data points and research I presented, I was told I was crazy. I even had readers from bearish websites write me to tell me that my "sky is falling" warnings were "crap."
And then this happened (I've added the recent drop in overnight futures).
Stocks are now back to November 2009 levels. In plain terms, the last year and a half may as well have not happened. The second half of QE 1, QE lite, and QE 2… literally everything the Fed has done since the end of 2009 has been wasted money.
Yes, we will get a sharp short-covering at some point. But the damage is done. Even QE 3 won't bring the market back. We're going to new lows… as in sub-600 on the S&P 500. Many folks are going to lose everything.
On that note, I've just published a five-report series devoted to detailing precisely what steps to take to prepare your personal finance and loved ones for what's happening.
All told, these reports show…
§ The best, easiest way to turn market collapses into triple digit gains. § My proprietary Crash indicator which caught the 1987 Crash, the Tech Bust, the 2008 Collapse, and this most recent Crash. § Which two inflationary investments will perform best as the US Dollar implodes (one of them handpicked by an investing legend). § How to prepare and profit during the coming US debt default, and… § How to prepare you family and loved ones for the coming civil unrest, food shortages, and more (including what supplies to buy, where to buy them, and what prices you should pay).
All in all we're talking about over 30 pages of actionable tips and strategies covering all the bases for surviving the ongoing financial and economic carnage. I've yet to see anything as detailed, specific, and wealth preserving out there.
And I'm giving away all of this information absolutely FREE. That's no strings attached, no gimmicks, you simply download your copies of the reports. That's it.
To do so, go to http:www.gainspainscapital.com and click on Free Special Reports.
Good Investing!
Graham Summers
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| Posted: 08 Aug 2011 01:45 PM PDT
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| Posted: 08 Aug 2011 01:25 PM PDT Gold Price Close Today : 1,710.20 Change : 61.40 or 3.6% Silver Price Close Today : 39.37 Change : 1.18 or 3.0% Platinum Price Close Today : 1,723.60 Change : 4.50 or 0.3% Palladium Price Close Today : 727.50 Change : -13.25 or -1.8% Gold Silver Ratio Today : 43.44 Change : 0.27 or 1.01% Dow Industrial : 10,809.85 Change : -634.76 or -5.9% US Dollar Index : 74.52 Change : -0.75 or -1.0% Franklin Sanders has not published a commentary today, if he does we will update this page. 
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| Posted: 08 Aug 2011 01:14 PM PDT Dear Friends, CIGA John Williams notes the following: - Dollar Debasement Accelerates Dangerously - U .S. Rating Downgrade Will Have Unhappy Ripple Effects - QE3 Likely Will Be Indicated This Week - Payroll and Unemployment Improvements Were Not Statistically Meaningful - July Unemployment Rates: 9.1% (U.3), 16.1% (U.6), 22.7% (SGS) - Broad Money Supply Continue reading Things Will Get Worse
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| Posted: 08 Aug 2011 01:08 PM PDT Dear Friends, Remember the key number is $1,764 Today the ECB launched Quantitative Easing as we all know will go to infinity. Gold got a second kick up from the combination of Moody's recognition that an A rating has little to do with municipalities that issued structured debt and QE to Infinity via the Continue reading Notes From the Underground
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| Gold and Silver Break Higher As ECB to Accelerate Euro Debasement Posted: 08 Aug 2011 01:04 PM PDT by GoldCore, Market Oracle: Gold in USD terms is 2.5% higher after the weekend U.S. downgrade and is higher against all currencies and trading at USD 1,706.40 , EUR 1,195.90 , GBP 1,039.20, CHF 1,039.20 per ounce and 132,549.00 JPY. Gold’s London AM fix was USD 1,709.75, EUR 1195.21, GBP 1,040.94.
Cross Currency Rates
There has been massive intervention by the ECB in the Spanish and Italian bond markets. 10 year yields have plummeted by more than 12% from above 6% to 5.27% and 5.34% respectively. Other peripheral bond markets have fallen but Portuguese and Irish yields are only slightly lower. 5 year CDS have also fallen sharply for Spanish and Italian debt but falls in other markets were slighter and the cost to ensure French debt increased by 7 basis points. There is increasing talk of a French downgrade and some are wondering why the UK has not been downgraded. Gold is up 2.6% in euro terms to nearly EUR 1,200/oz which is not a ringing endorsement of the ECB’s intervention. Non debase-able silver has surged nearly 4% and is back just below $40/oz. European Bond Market Monitor
It is quite possible that there was also intervention in equity markets as well as European indices fell sharply on the open prior to sharp reversals and going positive early morning. If there was intervention (by Working Group on Financial Markets or the ‘Plunge Protection Team’) in equity markets they were futile as equities have resumed their downward trend. The FTSE, DAX and CAC are down 1.9%, 2.9% and 2.5% respectively and US futures are showing 2% to 3% losses. Is this intervention another short term panacea in a long line of short term panaceas? It certainly looks like it. Piling more debt on top of already humungous debt levels will prolong and likely deepen the global debt crisis. It makes contagion more likely as the balance sheet of the ECB is now being infected by the peripheral European countries. The electronic creation of hundreds of billions of euros to bail out bankrupt countries is currency debasement which has a long history of not working out to well. What is needed is debt forgiveness and debt restructuring and a gradual deleveraging and downsizing of the balance sheets in the banking sector and financial system. Taxpayers should not be further burdened. This is unjust and will inevitably prolong and delay a recovery. Those with little or no knowledge of financial, economic and most importantly monetary history continue to warn that gold is or may be a bubble. They should be urging diversification but alas do not understand diversification or gold. They focus exclusively on the nominal dollar price and fail to consider the price in euros and other fiat currencies. XAU-EUR Exchange Rate
They do not adjust for the significant inflation of the last 31 years. Gold’s real record high in 1980 was $2,400/oz. They do not compare gold’s price performance in last 10 years with that of its last bull market in 1970’s. Considering gold purely in terms of price is misguided anyway as what is more important is gold’s value. Gold’s value is as a safe haven asset that cannot go bankrupt, as financial insurance and as a store of value. Many today know the price of everything and the value of nothing. This is especially the case with gold. Click Here for the original source. http://www.marketoracle.co.uk/Article29752.html
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| Posted: 08 Aug 2011 01:02 PM PDT Dear Friends, Please take time to read Greg Hunter's latest posting on usawatchdog.com titled "Brace for Impact." Jim Sinclair By Greg Hunter's USAWatchdog.com"Brace for Impact." I have thought about this economic collapse title for months. I held onto it and figured I would know when the right time was to put it out Continue reading Brace for Impact
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| Gold Skyrockets To Record Levels / Dow Plummets 634.76 Points Posted: 08 Aug 2011 12:52 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: Today was a humdinger of a day. Gold closed the comex session at $1710.00 up a huge $50.10. Silver on the other hand rose by only $1.29 as this metal is trying to assert itself as money and not just an industrial commodity. At 5:45 pm here are the following gold and silver prices: gold: $1717.20 As most of you are aware, the Dow plummeted by 634 points or 5.5%. The nasdaq fell even further, down 174.72 points or 6.9%. The reason for the fall is of course, the USA downgrade by Standard and Poor's. I thought that the market would go down 200 points. The shock of 634 points is certainly frightening to many hedge funds. Read More @ HarveyOrgan.Blogspot.com
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| SGT Speaks With Chapman About Silver, Gold & Tyranny Posted: 08 Aug 2011 12:27 PM PDT |
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