Gold World News Flash |
- Silver Market Update: Clive Maund
- Steady as She Goes
- Gold Market Update
- Rising Gold Prices, Weak Economy Boost Mining Projects
- Gold - 4 Hour chart update and comments
- The Weimar hyperinflation - 1923 – Germany
- Silver Update: Short Age: August 15, 2011
- Turk - A Gold Breakout Above $1,810 Could Come at Any Time
- Silver Market Update
- Jim Rickards & the Euro Gold Standard
- Gold Seeker Closing Report: Gold and Silver Gain Almost 1%
- In A CNN Interview, Ron Paul Discusses The Media's Blackout Of His Presidential Candidacy, And Many Other Things
- In A CNN Interview, Ron Paul Discusses The Media's Blackout Of His Presidential Candidacy, And Many Other Things
- Ongoing Developments In Nuclear And Rare Earth Stocks
- Technical Analysis Put to the Test
- Abandoning the gold standard was a seminal moment, and one were now all paying for
- Gold Finishes Comex Session At $1755.50 / Silver Also Rebounds / Dollar Index Falls Badly
- Egon von Greyerz: "Too Late To Jump On The Goldwagon? "
- Egon von Greyerz: "Too Late To Jump On The Goldwagon? "
- Hedge fund SAC puts $628 million into gold ETF options
- Lew Rockwell: Death of the Dollar
- Full audio of King World News interview with Jim Rickards
- Gold Mining Companies Too Good to Pass Up
- Grandich Client Sunridge Gold
- Egon von Greyerz: Too late to jump on the gold wagon?
- Gold and Silver Mining Stock Important Technical Signals
- Termination Patterns Brewing in Brazil, Russell 2000, and the S&P 500
- Gold Price Today Simply Refused to Take a Back Seat
- Gold Up, Dollar Down. What's New?
- FMX Connect Gold Options Report - August 15, 2011
| Silver Market Update: Clive Maund Posted: 15 Aug 2011 07:52 PM PDT Evidence that a big rally is brewing in silver is provided by the latest COT chart, the Commercials are getting out of the way, which signals a rally...
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| Posted: 15 Aug 2011 06:52 PM PDT The Gold Speculator
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| Posted: 15 Aug 2011 06:10 PM PDT Gold has shown impressive strength over the past couple of weeks having risen as high as the $1800 area. On our 6-year chart we can see how it has punched through the resistance at the upper boundary of an important inner trend channel, and despite now being hugely overbought, appears to have its sights set on the outer trend channel boundary now in the $1900 area before this strong upleg is done.
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| Rising Gold Prices, Weak Economy Boost Mining Projects Posted: 15 Aug 2011 06:05 PM PDT Suffocated by staggering unemployment and economic woes, many mining jurisdictions around the world are finding the nearly $1,800/ounce gold too good to pass up. Joe Mazumdar, a senior mining analyst with Haywood Securities in Vancouver, talks to The Gold Report about it in this exclusive interview.
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| Gold - 4 Hour chart update and comments Posted: 15 Aug 2011 06:01 PM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] I've moved back over to a 4 hour chart for the time being to try to get a bit tighter view of the recent trading range that gold has been carving out over the last few sessions. The chart resistance and support levels being created detail the range as gold is still finding buyers on dips below $1740 but has not yet been able to clear $1780. If it pushes through $1780, it looks to me to have enough momentum to try to take another shot up towards $1800. How it reacts there will be extremely important. The overall chart pattern is still being dominated by that big down day from last week after the market pushed through $1800 but then failed to hold that level after subsequently setting back. Bulls would not want to see this market spend much time below $1730 or so before rebounding as that would portend a drop towards $1700 initially. Volume is easing somewhat ( a welcome relief I might add) r...
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| The Weimar hyperinflation - 1923 – Germany Posted: 15 Aug 2011 05:45 PM PDT Bullion Vault
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| Silver Update: Short Age: August 15, 2011 Posted: 15 Aug 2011 04:59 PM PDT |
| Turk - A Gold Breakout Above $1,810 Could Come at Any Time Posted: 15 Aug 2011 04:21 PM PDT My expectation is that silver is going to outperform gold this week, which would be the first time that has happened in a few weeks.
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| Posted: 15 Aug 2011 04:17 PM PDT Silver held up surprisingly well during the stockmarket collapse - you will recall that we had expected it to take more of a beating - no doubt assisted by gold's sparkling performance, so that now, having held above strong support ... Read More...
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| Jim Rickards & the Euro Gold Standard Posted: 15 Aug 2011 04:04 PM PDT Rickards goes on to say that he is bullish on the Euro only because they have the second largest amount of gold behind the U.S.
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| Gold Seeker Closing Report: Gold and Silver Gain Almost 1% Posted: 15 Aug 2011 04:00 PM PDT Gold climbed $5.79 to $1746.54 in Asia before it fell to as low as $1732.35 by a little after 8AM EST in London, but it then rose to as high as $1755.90 in New York and ended with a gain of 0.75%. Silver traded at as low as $38.822 in Asia before it rose to as high as $39.603 in New York and ended with a gain of 0.77%. At the time of writing, both metals are rising to new highs in afterhours access trade as well.
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| Posted: 15 Aug 2011 03:53 PM PDT Yesterday ago presented the mass media' self disclosure that it was ignoring Ron Paul for this reason or that. Today, Paul, whose support base has suddenly become the target of some aggressive lateral grab tactics by fellow GOP presidential candidates, was interviewed by CNN's Piers Morgan, in an Q&A seeking, among others, to find why it is that Paul, who to everyone's great dismay (not ours) may actually be the GOP's top candidate for the presidential position, is being slighted in his own view. Paul's take: "they're afraid of me, they don't want my views out there, they're too dangerous, we want freedom and we're challenging the status quo, we want to end the war, we want a gold standard, and their view is that people just can't handle all this freedom, they want dependency, they want socialism and welfarism, so I think they don't like to hear our views, but I think we'll make the best of it and we'll do very well." Paul proceeds to cover his relationship with Bachmann (disagrees with her views, as she is "not as far from the status quo as he would like her to be"), why Paul's anti-war program is a challenge not just to GOPers but to Obama as well, with his numerous war fronts, how Paul at 75 is finally resonating with the majority of the US population, but most important is Piers Morgan's question on how Paul plans on becoming one of the fold and "making himself more electable", confirming precisely the bias that the idiot media holds against what can easily be the most honorable candidate in not just the GOP's but all party ranks. Paul's response: "why should someone soften their viewpoint on defending the rule of law and defending the constitution: that would be foolish. Extremists have been in charge for the last 4 years since they've been allowed to print money at will, so that's why we have overextended ouselves overseas, that's why we have inflation, depressions, inflations."...etc. When the mainstream media, and when Rick Perry, understands what Paul is talking about, that i when America will be worthy of a good president. Until then, it will have to make do with whoever win the popularity context in any given day, regardless of the amount of lies uttered in process. After all, as Morgan makes it all too clear, it is all just about "being electable" ... the same reason America is currently on the verge of the end.
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| Posted: 15 Aug 2011 03:53 PM PDT
Yesterday ago presented the mass media' self disclosure that it was ignoring Ron Paul for this reason or that. Today, Paul, whose support base has suddenly become the target of some aggressive lateral grab tactics by fellow GOP presidential candidates, was interviewed by CNN's Piers Morgan, in an Q&A seeking, among others, to find why it is that Paul, who to everyone's great dismay (not ours) may actually be the GOP's top candidate for the presidential position, is being slighted in his own view. Paul's take: "they're afraid of me, they don't want my views out there, they're too dangerous, we want freedom and we're challenging the status quo, we want to end the war, we want a gold standard, and their view is that people just can't handle all this freedom, they want dependency, they want socialism and welfarism, so I think they don't like to hear our views, but I think we'll make the best of it and we'll do very well." Paul proceeds to cover his relationship with Bachmann (disagrees with her views, as she is "not as far from the status quo as he would like her to be"), why Paul's anti-war program is a challenge not just to GOPers but to Obama as well, with his numerous war fronts, how Paul at 75 is finally resonating with the majority of the US population, but most important is Piers Morgan's question on how Paul plans on becoming one of the fold and "making himself more electable", confirming precisely the bias that the idiot media holds against what can easily be the most honorable candidate in not just the GOP's but all party ranks. Paul's response: "why should someone soften their viewpoint on defending the rule of law and defending the constitution: that would be foolish. Extremists have been in charge for the last 4 years since they've been allowed to print money at will, so that's why we have overextended ouselves overseas, that's why we have inflation, depressions, inflations."...etc. When the mainstream media, and when Rick Perry, understands what Paul is talking about, that i when America will be worthy of a good president. Until then, it will have to make do with whoever win the popularity context in any given day, regardless of the amount of lies uttered in process. After all, as Morgan makes it all too clear, it is all just about "being electable" ... the same reason America is currently on the verge of the end.
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| Ongoing Developments In Nuclear And Rare Earth Stocks Posted: 15 Aug 2011 03:46 PM PDT As our loyal subscribers are well aware, Gold Stock Trades has long been beating the drums for attention to be paid to the ongoing developments in nuclear (URA) and rare earth stocks (REMX). An important feature of our service is to focus our investment spotlight on what must be considered a vital factor in our modus operandi. Gold Stock Trades may be early in our sectors under review, but as we say in our masthead. . .we anticipate opportunities. The search for possible long term winners may be a lonely road in the short term, but that is precisely the path we find attractive. Better to get on at ground level then buy at the fiftieth floor when much of the profits are already reflected. Gold Stock Trades mines for winners where gains are geometric as well as incremental. Our venues are the roads less taken yet more profitable than the distracting detours of the daily players who are bogged down by the trees that obfuscate the verdant forest where the big winners reside. Four baggers are hard to come by, but they are there for the investors who can stay on the long term trend. One of our credos is patience and fortitude. Gold Stock Trades are for those visionaries joining us in our search for profit multiples. Today's markets offer us a prime example of the validity of our mission statement, "to boldly go where no one has gone before." Seemingly obscure, but vital news items attract our eagle's panoramic sweep. Example: At one point Gold Stock Trades occupied the loneliest of perches. Hourly the media blasted barrages of negative gloom and doom stories regarding the demise of nuclear power and the shortcomings of rare earth development. We sensed that much of this news were contrived to sell advertising. Thus today an important arm of China-The Hanlong Bank-announces that they are casting a covetous eye on a seemingly obscure nuclear miner-Bannerman Resources Ltd. (TSX:BAN; ASX:BMN), domiciled in Australia and owning two huge uranium deposits in Namibia. Read between the lines, the main property is located next door to Rio Tinto's (RIO) Rossing Mine, one of the largest uranium deposits in the world. Bannerman's Management is resisting the Chinese offer of $.61 a share, claiming China is taking advantage of its low share price due to the negative publicity that befell the global uranium market post-Fukushima. (It is important at this point to highlight the very same Hanlong Bank just signed an enhanced agreement with one of our favorite and long followed equities-General Moly.) Gold Stock Trades refused to buy the nuclear bashing and chose to wrap fish in yesterday's newspaper. We remain more steadfast than ever as we muse over the rest of the story. Might it be that China is prescient? As we write the following story is coming over the wires: "China Set On Nuclear Path." The Chairman of China's main energy agency states unequivocally, "Nuclear Power is a choice of must. . .we stay firm on our nuclear plans." Exactly what is China's (FXI) strategy? They are actively building 28 nuclear plants to reach 40 gigawatts by 2015. The Chairman felt shutting nuclear facilities was ill advised and precipitous. He claimed that the few nations that are abandoning nuclear are succumbing to fear and irrationality. It is as if humanity should stop eating because someone choked on a bite of food. He emphasized that China has no choice but to continue proceeding full speed ahead on its nuclear highway. Similarly, there has been a significant development in another sector that we have been following for some time: The Rare Earths. Avalon (AVL), one of our earliest selections, just announced agreements with three major unidentified Asian companies in a memorandum of understanding (MOU). These companies are agreeing to provide capital and technical know-how in exchange for future first call on production. It is not a mere coincidence that this announcement surfaces at the same time that Avalon updates a very positive pre-feasibility study and begins the bankable feasiblity. It can only add additional spice to the wooing. Today, there are an abundance of important developments pertinent to GST subscribers. Example: Major industrial producers concerned about having ready availability of critical rare earths are making alliances with miners. Siemens, Europe's largest engineering firm, has entered into an important deal with Lynas (LYSCF.PK). We are witnessing end users partnering with miners to secure future supplies in assuring availability for uninterrupted production. This burgeoning trend will continue with more and more strategic relationships between industrial giants and rare earth miners. Molycorp (MCP) just announced that they will partner with Hitachi (HIT) to produce permanent magnets. Gold Stock Trades has been predicting these milestones for a long time. It is understandable that some of our readers might be champing at the bit. Our studies reveal the rare earths and nuclear stocks are in basing formations, ready to break out of the starting gate. We will continue to keep our subscribers au courant. Stay tuned.
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| Technical Analysis Put to the Test Posted: 15 Aug 2011 03:35 PM PDT
 Tea leaf reading (i.e. technical analysis) is not a hard science, but it beats the efficient market hypothesis in my opinion. One has to start somewhere when trying to learn how to trade and invest. For example, Gold is in a beautiful, clear and undeniable secular uptrend. Easy to see and hard to dispute unless you are a paperbug. I would like to show a chart and predict an outcome based solely on technical analysis. Now, I admit, I am cheating a little since I know something about the fundamentals being that my soul is stationed in the area of interest related to this instrument, but nonetheless, the charts speak louder than my understanding of the fundamentals in my opinion. The chart is a 1 year daily chart of "high yield municipal debt" (i.e. junky local government U.S. debt) thru today's close:  My prediction is not wishy-washy. I believe a major decline will occur in this instrument and I don't think we will make it thru August before it begins. Let's see if technical analysis works in real time. Of course, if it doesn't, one could certainly argue that it is the practitioner that is at fault rather than the art...  ![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif) 
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| Abandoning the gold standard was a seminal moment, and one were now all paying for Posted: 15 Aug 2011 03:06 PM PDT Telegraph
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| Gold Finishes Comex Session At $1755.50 / Silver Also Rebounds / Dollar Index Falls Badly Posted: 15 Aug 2011 02:43 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: Gold closed today up by a full $13.20 to finish the comex session at $1755.50. Silver also behaved quite well rising by 20 cents to $39.30. The USA index faltered badly today dropping into the high 73 handle. Right now the USA index is trading at 73.88 down 69 cents. The gold market is certainly reacting to the extremely bullish COT report which showed the bankers covering their short positions in a rising gold environment. We are getting close to a systemic banking failure as we will have a failure to deliver metals at both the LBMA and Comex. Right now at 5 pm gold and silver are trading at these prices: Read More @ HarveyOrgan.Blogspot.com
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| Egon von Greyerz: "Too Late To Jump On The Goldwagon? " Posted: 15 Aug 2011 02:26 PM PDT From Egon von Greyerz of Gold Switzerland Too Late To Jump On The Goldwagon? The Stealth Market in GoldGold has gone up for 12 straight years in a stealth market. In the last ten years gold has had a compound annual growth of 20.5%. This is an absolutely outstanding return but investors should not look at gold as an investment but as money. Gold reflects governments' deceitful actions in totally destroying the value of paper money by printing unlimited amounts of it. With gold up 7 times since the bottom in 1999, is it too late to jump on the Goldwagon?  The answer to the above question is a categorical NO. Virtually no major investor group has participated in gold's spectacular rise. In spite of a seven fold increase in the gold price, only circa 1% of world financial assets are invested in gold. Whenever I talk to major institutional investors, not only do they not own gold, but they don't understand gold either. I was speaking at a conference for Family Offices recently where there were circa 250 family office managers present representing substantial funds. Not only did no one own gold, but they had no understanding of gold's role as an investment class or the fact that measured in real money, i.e. in gold, their investments were declining precipitously. It must be unprecedented that an important asset class can go up for such a long period with so few investors participating. In my view this is the most bullish sign ever for gold. The mess the world is in will lead to unprecedented money printing in the US, EU, the UK and many more regions. And gold will continue to reflect the destruction of paper money. In addition, investors will increasingly mistrust paper gold and invest in physical gold only. Due to the very limited availability of physical gold, the increase in demand can only be satisfied at substantially higher prices. Gold price projectionThere are many ways to project how high the gold price can reach. Adjusting gold for real (not the published, manipulated) inflation the price would be circa $7,500. At the recent GATA conference, Adrian Douglas put forward a target of $53,000 an oz based on M3. He said that that out of every 33 oz of gold traded 32 oz are paper gold, which would lead to a price projection of $53,000 also, if all trading were backed by physical gold.  All of the above projections are subjective and therefore somewhat arbitrary. However, whatever method is used, gold is undervalued on any measure. We are not just talking about a substantial undervaluation but more importantly that paper money is likely to be totally destroyed in the next few years with the gold price reflecting this obliteration. It is absolutely impossible to forecast how much money will be printed but the flood of paper could lead to many zeroes being added to the gold price just like in any hyperinflationary economy. For example, in 1923 in the Weimar Republic gold reached 100 trillion marks. Gold (and silver) is a critical asset to hold in order to preserve wealth against such a hyperinflationary destruction of paper money. Physical versus Paper GoldCirca 96% of all gold trading is paper. For anyone who demands delivery, there will be no gold to deliver. At the GATA conference in London Jim Rickards stated that currency wars will lead to the US government taking back (confiscating) whatever gold it has lent to bullion banks as well as gold it holds for other nations (most of Germany's gold is said to be held in New York). He also mentioned a potential 90% windfall tax on gold. In a subsequent King World interview (click to listen), Eric King discussed with Rickards that the US government has keys to Via Mat's US vaults. It is of course not possible to predict what desperate governments will do, nor is it possible to protect yourself against every eventuality. What is very clear is that simple action can and will give investors a better chance of preserving wealth:
Gold Making New HighsGold has recently made new highs against most currencies. In addition, after longer consolidations, the Dow is breaking down against gold (down 85% in 12 years), and gold is breaking up against both Oil and the Swiss Francs.    These break outs are potentially very significant and will most probably lead to a strong up-move in the gold price in the next few months. Kicking the CanThe world is in an absolute mess, economically, financially, politically and morally. And let me be very clear; this has been evident for at least 10-15 years. The only thing that has not been clear is how long governments and central banks could deceive the people by kicking the can down the road in an endless creation of worthless pieces of paper that they call money. The lone voices of some market analysts, forecasting that the manipulation and mismanagement of the people's wealth would end in disaster, have for long been silenced by the establishment in order to betray the gullible masses. Intellectually dishonest and corrupt politicians and bankers have devised a system which has created perceived, debt-based wealth for the people whilst buying votes and generating massive wealth for the bankers. But this Ponzi scheme is now coming to an end. When printed money can only be repaid with more printed money and when there are no buyers for the worthless debt instruments created by governments except for the government itself, then we have reached the end of the road with a "can too big to kick".  BEFORE  NOW Two years' ago in the summer of 2009, I wrote an article called "The Dark Years Are Here" which outlined the likely consequences of the excesses of the last century. Let us just look back to understand the historical perspective. Throughout history there have been regular periods of credit creation and money printing resulting in a collapsing currency. This happened for example as the Roman Empire was disintegrating starting circa mid 200 AD. So destruction of money is not a new phenomenon as Voltaire said already back in 1729 "Paper money eventually returns to its intrinsic value – ZERO". But so far in history these events have normally been limited to one country or region. Never before in history has there been a financial system which has made it possible for the whole world to simultaneously create unlimited amounts of debt. The graph below shows the effect of this money creation in the US but the same applies for many parts of the world. Between early 19th century and early 20th century there was virtually no inflation. A house cost the same in 1910 as in 1810. But then in 1913 the fraud in the financial system started. Private bankers in the US created a private central bank owned by the bankers and for the benefit of the bankers. This was when the Federal Reserve Bank was created with ultimate power to print money and thus destroy the value of paper money. This was the most perfect way for private bankers to control financial markets with the total blessing of the government. Thus started a worldwide credit manufacturing scheme that eventually will lead to a collapse of the financial system. In order to inflate this bubble even faster, Nixon abolished gold backing of the dollar exactly 40 years ago on August 15 1971. Nixon should not have been impeached for Watergate but instead for destroying the world financial system and world economy for many generations. Since the closing of the gold window in 1971, total US Debt (private and public) has gone from $10 trillion to almost $60 TRILLION today.   US DEBT CEILINGWhat has taken place in Washington in the last few weeks is absolutely disgraceful. Irresponsible politicians have been spending months bickering about the debt ceiling and disagreeing until the very end how to solve a crisis that will bring the US down. It is appalling that they, out of self-interest, take this issue to the wire when the country is in the process of going under. The whole procedure is only about political posturing and buying votes rather than caring about the good of the country. The politicians are rearranging the deckchairs on the Titanic whilst the country is sinking into the abyss. The debt ceiling is totally irrelevant. US Federal debt has increased every year since 1961. Thus for 50 years the debt has gone up yearly and during that time the debt ceiling has been raised 79 times! The real issue is that the US is bankrupt and raising the debt ceiling only exacerbates the gravity of the country's problems. What they should have agreed instead is a substantial reduction of the debt ceiling. But that doesn't buy any votes. Another debt rise agreed of $2.4 trillion (in two stages) will probably last a year at best. Proposed spending cuts of $2.1 trillion will almost certainly never happen but if they do they will be after 2013 and probably mainly take place at the end of a 10 year period starting from now. In the meantime the debt is likely to increase by tens of trillions of dollars. Sadly it doesn't matter what the reckless politicians do. This situation is unsalvageable. The exponential growth in debt in the last 100 years has created a false prosperity by mortgaging the future for many generations for the benefit of current consumption. Wealth based on credit does not only steal from future generations but creates the wrong values based on debt, greed and materialism. Values such as honesty, integrity, courteousness, righteousness, respect and kindness have totally disappeared in large groups of the population. And the family is no longer the kernel of society. Recent social unrest and riots in the UK is an inevitable consequence of this social decadence. With youth unemployment at 25% in many countries and as high as 50% in the major cities, this problem will become unmanageable in the next few years. Failing economies and empty stomachs will exacerbate the situation dramatically. Also, since government (and the bankers) control the system by creating money out of thin air, major resources in the economy are transferred from the productive and innovative private sector to the totally inefficient, unproductive and bureaucratic public sector. The public sector only consumes wealth and does not produce anything. By taking invaluable resources from the private sector, consuming most of what it takes and then giving the rest to the most unproductive part of society (the weak, sick, unemployed, work shy etc.), government perpetuates the worst part of the economy and destroys the ability of the nation to expand.  The point I am making is that the last 100 years are exceptional in history because this period is based on an unprecedented worldwide debt creation and money printing but not on the natural laws of supply and demand or saving and investment. Exceptional things never last since the laws of nature can only be broken for a limited period. And we have now come to the end of the world's largest, government sponsored, Ponzi scheme ever. The consequences will be felt in all aspects of society and most likely last for a very long time, at least for several decades and maybe longer. EuropeAdd to the US debacle, the problems in Europe which are almost of the same severity. The European money markets are now starting to seize up as pressure mounts on the Italian, Spanish and French banking systems. It will be impossible for the milk cow of Europe to continue to support all the weak European countries. Initially the EU will accelerate the money printing because of political pride. But like all grandiose political unions, the EU will eventually break up.
Courtesy BOB – Daily Telegraph The world is now staring into the abyss and we are most likely entering the Dark Years which I wrote about two years ago. The consequences will almost certainly be unlimited money printing and a hyperinflationary depression.
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| Egon von Greyerz: "Too Late To Jump On The Goldwagon? " Posted: 15 Aug 2011 02:26 PM PDT
From Egon von Greyerz of Gold Switzerland Too Late To Jump On The Goldwagon? The Stealth Market in GoldGold has gone up for 12 straight years in a stealth market. In the last ten years gold has had a compound annual growth of 20.5%. This is an absolutely outstanding return but investors should not look at gold as an investment but as money. Gold reflects governments' deceitful actions in totally destroying the value of paper money by printing unlimited amounts of it. With gold up 7 times since the bottom in 1999, is it too late to jump on the Goldwagon? The answer to the above question is a categorical NO. Virtually no major investor group has participated in gold's spectacular rise. In spite of a seven fold increase in the gold price, only circa 1% of world financial assets are invested in gold. Whenever I talk to major institutional investors, not only do they not own gold, but they don't understand gold either. I was speaking at a conference for Family Offices recently where there were circa 250 family office managers present representing substantial funds. Not only did no one own gold, but they had no understanding of gold's role as an investment class or the fact that measured in real money, i.e. in gold, their investments were declining precipitously. It must be unprecedented that an important asset class can go up for such a long period with so few investors participating. In my view this is the most bullish sign ever for gold. The mess the world is in will lead to unprecedented money printing in the US, EU, the UK and many more regions. And gold will continue to reflect the destruction of paper money. In addition, investors will increasingly mistrust paper gold and invest in physical gold only. Due to the very limited availability of physical gold, the increase in demand can only be satisfied at substantially higher prices. Gold price projectionThere are many ways to project how high the gold price can reach. Adjusting gold for real (not the published, manipulated) inflation the price would be circa $7,500. At the recent GATA conference, Adrian Douglas put forward a target of $53,000 an oz based on M3. He said that that out of every 33 oz of gold traded 32 oz are paper gold, which would lead to a price projection of $53,000 also, if all trading were backed by physical gold. All of the above projections are subjective and therefore somewhat arbitrary. However, whatever method is used, gold is undervalued on any measure. We are not just talking about a substantial undervaluation but more importantly that paper money is likely to be totally destroyed in the next few years with the gold price reflecting this obliteration. It is absolutely impossible to forecast how much money will be printed but the flood of paper could lead to many zeroes being added to the gold price just like in any hyperinflationary economy. For example, in 1923 in the Weimar Republic gold reached 100 trillion marks. Gold (and silver) is a critical asset to hold in order to preserve wealth against such a hyperinflationary destruction of paper money. Physical versus Paper GoldCirca 96% of all gold trading is paper. For anyone who demands delivery, there will be no gold to deliver. At the GATA conference in London Jim Rickards stated that currency wars will lead to the US government taking back (confiscating) whatever gold it has lent to bullion banks as well as gold it holds for other nations (most of Germany's gold is said to be held in New York). He also mentioned a potential 90% windfall tax on gold. In a subsequent King World interview (click to listen), Eric King discussed with Rickards that the US government has keys to Via Mat's US vaults. It is of course not possible to predict what desperate governments will do, nor is it possible to protect yourself against every eventuality. What is very clear is that simple action can and will give investors a better chance of preserving wealth:
Gold Making New HighsGold has recently made new highs against most currencies. In addition, after longer consolidations, the Dow is breaking down against gold (down 85% in 12 years), and gold is breaking up against both Oil and the Swiss Francs. These break outs are potentially very significant and will most probably lead to a strong up-move in the gold price in the next few months. Kicking the CanThe world is in an absolute mess, economically, financially, politically and morally. And let me be very clear; this has been evident for at least 10-15 years. The only thing that has not been clear is how long governments and central banks could deceive the people by kicking the can down the road in an endless creation of worthless pieces of paper that they call money. The lone voices of some market analysts, forecasting that the manipulation and mismanagement of the people's wealth would end in disaster, have for long been silenced by the establishment in order to betray the gullible masses. Intellectually dishonest and corrupt politicians and bankers have devised a system which has created perceived, debt-based wealth for the people whilst buying votes and generating massive wealth for the bankers. But this Ponzi scheme is now coming to an end. When printed money can only be repaid with more printed money and when there are no buyers for the worthless debt instruments created by governments except for the government itself, then we have reached the end of the road with a "can too big to kick". BEFORE NOW Two years' ago in the summer of 2009, I wrote an article called "The Dark Years Are Here" which outlined the likely consequences of the excesses of the last century. Let us just look back to understand the historical perspective. Throughout history there have been regular periods of credit creation and money printing resulting in a collapsing currency. This happened for example as the Roman Empire was disintegrating starting circa mid 200 AD. So destruction of money is not a new phenomenon as Voltaire said already back in 1729 "Paper money eventually returns to its intrinsic value – ZERO". But so far in history these events have normally been limited to one country or region. Never before in history has there been a financial system which has made it possible for the whole world to simultaneously create unlimited amounts of debt. The graph below shows the effect of this money creation in the US but the same applies for many parts of the world. Between early 19th century and early 20th century there was virtually no inflation. A house cost the same in 1910 as in 1810. But then in 1913 the fraud in the financial system started. Private bankers in the US created a private central bank owned by the bankers and for the benefit of the bankers. This was when the Federal Reserve Bank was created with ultimate power to print money and thus destroy the value of paper money. This was the most perfect way for private bankers to control financial markets with the total blessing of the government. Thus started a worldwide credit manufacturing scheme that eventually will lead to a collapse of the financial system. In order to inflate this bubble even faster, Nixon abolished gold backing of the dollar exactly 40 years ago on August 15 1971. Nixon should not have been impeached for Watergate but instead for destroying the world financial system and world economy for many generations. Since the closing of the gold window in 1971, total US Debt (private and public) has gone from $10 trillion to almost $60 TRILLION today. US DEBT CEILINGWhat has taken place in Washington in the last few weeks is absolutely disgraceful. Irresponsible politicians have been spending months bickering about the debt ceiling and disagreeing until the very end how to solve a crisis that will bring the US down. It is appalling that they, out of self-interest, take this issue to the wire when the country is in the process of going under. The whole procedure is only about political posturing and buying votes rather than caring about the good of the country. The politicians are rearranging the deckchairs on the Titanic whilst the country is sinking into the abyss. The debt ceiling is totally irrelevant. US Federal debt has increased every year since 1961. Thus for 50 years the debt has gone up yearly and during that time the debt ceiling has been raised 79 times! The real issue is that the US is bankrupt and raising the debt ceiling only exacerbates the gravity of the country's problems. What they should have agreed instead is a substantial reduction of the debt ceiling. But that doesn't buy any votes. Another debt rise agreed of $2.4 trillion (in two stages) will probably last a year at best. Proposed spending cuts of $2.1 trillion will almost certainly never happen but if they do they will be after 2013 and probably mainly take place at the end of a 10 year period starting from now. In the meantime the debt is likely to increase by tens of trillions of dollars. Sadly it doesn't matter what the reckless politicians do. This situation is unsalvageable. The exponential growth in debt in the last 100 years has created a false prosperity by mortgaging the future for many generations for the benefit of current consumption. Wealth based on credit does not only steal from future generations but creates the wrong values based on debt, greed and materialism. Values such as honesty, integrity, courteousness, righteousness, respect and kindness have totally disappeared in large groups of the population. And the family is no longer the kernel of society. Recent social unrest and riots in the UK is an inevitable consequence of this social decadence. With youth unemployment at 25% in many countries and as high as 50% in the major cities, this problem will become unmanageable in the next few years. Failing economies and empty stomachs will exacerbate the situation dramatically. Also, since government (and the bankers) control the system by creating money out of thin air, major resources in the economy are transferred from the productive and innovative private sector to the totally inefficient, unproductive and bureaucratic public sector. The public sector only consumes wealth and does not produce anything. By taking invaluable resources from the private sector, consuming most of what it takes and then giving the rest to the most unproductive part of society (the weak, sick, unemployed, work shy etc.), government perpetuates the worst part of the economy and destroys the ability of the nation to expand. The point I am making is that the last 100 years are exceptional in history because this period is based on an unprecedented worldwide debt creation and money printing but not on the natural laws of supply and demand or saving and investment. Exceptional things never last since the laws of nature can only be broken for a limited period. And we have now come to the end of the world's largest, government sponsored, Ponzi scheme ever. The consequences will be felt in all aspects of society and most likely last for a very long time, at least for several decades and maybe longer. EuropeAdd to the US debacle, the problems in Europe which are almost of the same severity. The European money markets are now starting to seize up as pressure mounts on the Italian, Spanish and French banking systems. It will be impossible for the milk cow of Europe to continue to support all the weak European countries. Initially the EU will accelerate the money printing because of political pride. But like all grandiose political unions, the EU will eventually break up.
Courtesy BOB – Daily Telegraph The world is now staring into the abyss and we are most likely entering the Dark Years which I wrote about two years ago. The consequences will almost certainly be unlimited money printing and a hyperinflationary depression.
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| Hedge fund SAC puts $628 million into gold ETF options Posted: 15 Aug 2011 01:15 PM PDT Watch them expire worthless a day before gold's next explosion. * * * SAC's Steve Cohen: Gold Bug? By Shira Ovide http://blogs.wsj.com/deals/2011/08/15/sacs-steve-cohen-gold-bug/ Has one of the world's biggest hedge-fund managers turned into a gold bug? SAC Capital Advisors L.P., the hedge fund run by Steven Cohen, disclosed a new position in options on the gold exchange-traded fund, SPDR Gold Trust. The investment, options that allow SAC Capital to buy shares of the gold ETF at a defined point in time, is valued at $628 million, the single largest value of equity positions disclosed by SAC Capital, according to the hedge fund's quarterly snapshot of its U.S. investment holdings. ... Dispatch continues below ... 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: Cohen disclosed the holdings in a regulatory filing Monday that showed the hedge fund's U.S. stock, options, and other positions as of June 30. As of March 31, he disclosed no holdings of the gold ETF. Gold is considered a hedge against market panic or volatility, and recent market turmoil has helped drive up the value of the commodity to near-record highs on a non-inflation-adjusted basis. The gold ETF, meanwhile, ended Monday's session at $171.80 a share, up about 24% since the end of 2010. It's unclear how much SAC Capital paid for its ETF options. Among SAC's other quarterly disclosures, the hedge fund decreased its stock position in Newmont Mining Corp. to 2.18 million shares from 4.6 million at the end of march. He also cut his holdings in retailer BJ's Wholesale Club Inc., which has agreed to be acquired, to about 996,000 shares from more than 2.8 million at the end of March. Cohen also more than doubled his stock holdings in Apple Inc. to 598,000 shares. He also slashed his holdings in General Electric Co. to 680,319 shares from 6.89 million at the end of March. SAC Capital also disclosed a small position of 20,000 shares in LinkedIn, the social-networking company that had its IPO in May. 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 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_...
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| Lew Rockwell: Death of the Dollar Posted: 15 Aug 2011 01:02 PM PDT Lew Rockwell, chairman of Ludwig von Mises Institute, tells us who's to blame for the death of the dollar.
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| Full audio of King World News interview with Jim Rickards Posted: 15 Aug 2011 12:41 PM PDT 8:41p ET Monday, August 15, 2011 Dear Friend of GATA and Gold: Audio of the full interview done today by King World News with geopolitical analyst James G. Rickards, who spoke at GATA's Gold Rush 2011 conference in London August 4-6, has been posted, and it covers a lot more about the dollar and gold than could be included in the interview summary dispatched to you this morning. You can listen to the interview here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/8/15_J... CHRIS POWELL, Secretary/Treasurer 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 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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| Gold Mining Companies Too Good to Pass Up Posted: 15 Aug 2011 12:09 PM PDT Suffocated by staggering unemployment and economic woes, many mining jurisdictions around the world are finding the nearly $1,800/ounce gold too good to pass up. Joe Mazumdar, a senior mining analyst with Haywood Securities in Vancouver, tells The Gold Report in this exclusive interview which projects are primed to see the light of day in the face of rising gold prices and a dearth of other industry.
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| Posted: 15 Aug 2011 12:01 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 15, 2011 03:59 PM I spoke with Sunridge Gold’s CEO to see if SGC was still worthy of my “Mamma Mia” status. PG:******** Thanks for taking the time to talk today Michael.* I know that you are going full speed right now with your projects in Eritrea where it is evident that Sunridge has had a lot of success on the ground. How long has Sunridge been in Eritrea and can you give my readers a brief overview of your projects? MH:******* We have been involved in Eritrea since 2004 and yes, we have had tremendous success with our exploration programs. Our exploration efforts have focused on finding VMS deposits and to date, we have defined 3 VMS deposits and 1 shear zone gold deposit. All 4 of the deposits defined so far are in either a feasibility study or a prefeasibility study stage. Debarwa, a copper-gold-zinc- silver VMS...
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| Egon von Greyerz: Too late to jump on the gold wagon? Posted: 15 Aug 2011 11:54 AM PDT 7:55p ET Monday, August 15, 2011 Dear Friend of GATA and Gold: Having attended GATA's Gold Rush 2011 conference in London, Egon von Greyerz of Matterhorn Asset Management in Zurich quotes a couple of the speakers as he gives a negative answer to the question: "Too Late to Jump on the Gold Wagon?" Gold, von Greyerz argues, is completely underowned even as its ratio to the world money supply is far below historical norms. Von Greyerz's commentary can be found at the Gold Switzerland Internet site here: http://goldswitzerland.com/index.php/too-late-to-jump-on-the-goldwagon-q... 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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| Gold and Silver Mining Stock Important Technical Signals Posted: 15 Aug 2011 11:41 AM PDT Gold Stock Trades has maintained a strong hand on signaling the completion of the basing process in mining stocks (GDX) in relation to gold(GLD) and silver (SLV) bullion prices. Right now it will suffice to alert readers that one of the most salient technical signals is occurring right now-The dreaded death crosses are being transmuted into euphoric crosses of gold.
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| Termination Patterns Brewing in Brazil, Russell 2000, and the S&P 500 Posted: 15 Aug 2011 11:40 AM PDT The action of the last few days has created rising bearish wedges in Brazilian ETF, S&P 500, and the Russell 2000.
Let's start with Brazil as it's become THE international "risk" market, leading all the other BRIC countries in the market (Brazil is blue, Russia green, China red, and India purple).
With that in mind, have a look at Brazil's ETF which is forming something of a rising bearish wedge pattern. This is a termination pattern which means when it breaks it will likely be down and wipe out most of the gains of the last week.
Now, this pattern does have a bit of upside left in it. But we could just as easily take out the bottom trendline in which case, we're on our way to new lows.
In the case of the S&P 500, this pattern is far more pronounced and rapidly nearing its apex.
As for the Russell, we're right at the apex.
When you combine these patterns with the light volume that has occurred throughout this latest move upwards as well as the fact it's moving on rumors (seriously, Eurobonds? You think Germans are going to support this?), we're very likely going to see a reversal in the near future culminating in new lows for the year.
Remember, while all the focus is on the Fed and its response to the markets, the US economy continues to worsen. This morning's Empire Manufacturing numbers were terrible. Add to this the recent market rout (which will impact sentiment surveys going forward) as well the all but guaranteed terrible 3Q earnings we'll be seeing soon, and we've got a real economic downturn on our hands.
And people are viewing stocks as a great buy today?
We went for this same scheme back in 2008. At that time the US economy was clearly breaking down, the banking system was collapsing, and yet people were buying every dip and viewing every negative announcement with rose colored glasses.
We all know how that turned out.
On that note, if you haven't already taken steps to prepare yourself and your portfolio for the next leg down, I've just published Five Reports devoted to detailing precisely what will unfold during the Second Round of the Great Crisis and how to profit from it.
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| Gold Price Today Simply Refused to Take a Back Seat Posted: 15 Aug 2011 11:19 AM PDT Gold Price Close Today : 1755.50 Change : 15.30 or 0.9% Silver Price Close Today : 39.298 Change : 0.197 or 0.5% Gold Silver Ratio Today : 44.67 Change : 0.166 or 0.4% Silver Gold Ratio Today : 0.02239 Change : -0.000084 or -0.4% Platinum Price Close Today : 1813.00 Change : 17.00 or 0.9% Palladium Price Close Today : 744.00 Change : 0.00 or 0.0% S&P 500 : 1,204.49 Change : 25.68 or 2.2% Dow In GOLD$ : $135.22 Change : $ 1.37 or 1.0% Dow in GOLD oz : 6.541 Change : 0.066 or 1.0% Dow in SILVER oz : 292.20 Change : 4.00 or 1.4% Dow Industrial : 11,482.90 Change : 213.88 or 1.9% US Dollar Index : 73.86 Change : -0.657 or -0.9% GOLD PRICE today simply refused to take a back seat. Friday it made a low at $1,724, but today the low came at $1,732.20. After closing Comex at $1,755.50, up $15.30, it relentlessly elevated in the aftermarket to $1,766.10, the high for the day. Let's talk about maximum downside. Chart shows a gap at $1,675, so that might be a target. Before that, $1,720 is stubborn support. Further down, $1,625 will catch gold, then below that lies the 50 DMA at $1,587.54. However, I am not yet willing to count the panic past and GOLD defeated. Any close over $1,800 turns gold's face skyward. A close below $1,725 turns it down decisively. SILVER on Comex closed at 3929.8c, up 19.7c, but that tells only a short part of the tale. After Comex closed the SILVER PRICE kept on bulling ahead, nearly 60 more cents to 3991, well above the 20 day moving average at 3965c. I remind y'all the 20 DMA serves as the trip wire for POSSIBLE upmoves. Possible because the crossover must be confirmed by higher closes. The SILVER PRICE keeps on refusing to roll over and play dead. I understand that this sort of range trading frustrates intensely, but we merely have to endure it. Y'all ought to be accumulating both silver and gold. Forget about corrections -- they will come and go, 5%, 10%, or 30%, yet we don't look at those, but at the unseen goal, the triple, quadruple, or quintuple. Ride the primary trend, forget about the rest. In an example of near-perfect government stupidity, France, Spain, Italy, and Belgium have banned short selling of financial (read "bank") stocks. Of course, determined investors will find other creative ways to short the sector, maybe even by shorting the euro, but statistics from earlier bans show that they are hopelessly ineffective to stop price slides. Worse yet, bans add uncertainty to the market and cripple the market's ability to discover an accurate price based on true value. As usual, the world's bank-controlled puppet governments act to cripple markets and prop up the banks. Were I a depositor in French, Spanish, Italian, or Belgian bank I'd pull out my money so fast the suction would rip the paper off their walls. The ban virtually guarantees that the banks are so rotten they cannot withstand the action of a free market. Otherwise, why protect them? If governments subsidized air, we'd all be suffocating in ten days. I'm only a natural born fool from Tennessee, and even I know that. STOCKS had a big day, cavorting like goats in August up 213.88, up 1.9% on the Dow to 11,482.90. S&P cavorted, too, up 25.68 or 3.03% to 1,204.49. Did this surprise y'all? After a waterfall the size of Victoria Falls, there'll come some kind of bounce. But I will warn y'all that the waterfall has not reached its bottom pool, but is only bouncing off the rocks. Reaction may reach 11,860, maybe even the 200 dma 11,993.51, maybe even 12,000, but gravity has stocks firmly in hand now, and will work his will. I bet a lot of y'all don't know about goats in August, do you? Stocks -- they are the pool of cool alkaline water in the Investment Desert. The US DOLLAR INDEX tumbled 65.7 basis points today (0.85%) to 73.864. That fits the Nice Government Men's need to contain the dollar's rise and the euro's fall and the yen's rise. However, it doesn't change the dollar chart. Last low was 73.82, one before that was 73.42, and wanting a close below that, the dollar remains in an embryonic uptrend. The euro, the currency with the electrical connections in its neck like the Frankenstein monster, found an outlet today, plugged in, and jumped 1.35% to 1.4442. Japanese Yen today dropped a tee-tiny bit, to 130.17c/Y100 (Y73.82/$). Still near all time highs. On 15 August 1971 President Tricky Dick Nixon imposed a 90 day wage and price freeze, a 10% import surcharge, and closed the gold window ending the convertibility of dollars into gold for foreign nations under the Bretton Woods Agreement. Bretton Woods was worse than a three-legged mule, expensive to feed with no real benefit, but it was an agreement, a word-giving. Nixon launched the nations of the world of floating exchange rates and wholly irredeemable fiat money. Si monumentum quaeris, circumspice. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2011, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. 
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| Gold Up, Dollar Down. What's New? Posted: 15 Aug 2011 11:01 AM PDT It was only fitting that, today, on the 40th anniversary of Nixon "closing the gold window", the yellow metal rose and the trade-weighted U.S. dollar fell – they've been doing this for quite some time as illustrated in the two charts below.
The first graphic above from this excellent WSJ op-ed by Lewis E. Lehrman (see this item for a comprehensive list from earlier today) is, of course, not the international value of the dollar, but rather the effect of inflation on the currency's purchasing power. It is important to note that its slowing descent in the early-1980s had more to do with a deluge of cheap imports and a re-jiggered inflation calculation than any act of U.S. policy makers.
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| FMX Connect Gold Options Report - August 15, 2011 Posted: 15 Aug 2011 10:52 AM PDT From FMX Connect Gold Options Report - August 15, 2011 Market Recap: The S&P 500 extended its rally on Monday, closing at 1204.49 for a gain of 2.18% on the day. The dollar index was down sharply (73.872, -.985%) on lackluster manufacturing data while German Chancellor Angela Merkel's and French president Nicolas Sarkozy's scheduled meeting for tomorrow strengthened the euro. Gold and treasury bonds were the safe-haven assets of choice, with investors' enthusiasm for currencies like the Swiss franc and Japanese yen dampening on the threat of intervention. Gold traded lower overnight but trended upward the rest of the day. The knee-jerk reaction to last week's margin hike is over, and speculators are beginning to feel more comfortable buying again. The options term structure is haphazard, with calendar relationships mispriced up and down the curve. October and February trade in line with what could potentially be an emergent contango curve, yet December and its serial brethren trade above that. We can only guess why this hasn't been slammed yet; probably too many people are preoccupied not making money or taking lower-lying fruit to not take advantage of these trades. The GLD market-makers are back-to-backing same expiration across different assets. Comex locals are trying to lock in profits to make margin calls. The dealers are hoping their gamma covers their short call positions and longs are hitting bids trying to lock in profits. In the meantime, the volatility curve looks like a maimed seagull. What we can decipher from this is if the market settles down we think a contango curve will resume itself with October as the low point, December coming in line and the curve sloping upward through December 2012. If the market spikes higher we think October will lag December in performance. October is in liquidation mode now. September is not even worth mentioning. The trading today was consistent with the last three days, with one exception: Dealers bought calls. Dealers bought them in fence form, but they were careful to sell volatility in premium while covering their short calls. Examples include the 1700/2000 Risk Reversal and other structures of that type that sold premium yet bought skew. Remember the December 2000 Call is a 15 delta item now, hardly a typical skew option, yet it has premium of over $22. Volatility is by no means cheap. Simultaneously, it is by no means unjustified. Directional Commentary: Options: Up until today, between the call liquidation and the straddle selling we would have said the market was poised for a quick sell-off or a slow move higher. Today's risk reversal trading by dealers makes us lean toward the latter, and at a slightly faster pace. Our technical analysis below highlights levels to watch. Options just don't show us washing out right now. Perhaps another two or three margin raises will do the trick. Conclusion: Mildly Bullish Technical: Gold shrugged off the two-day engulfing pattern from Friday, settling up $15 on the day and trading higher through the close. For all intents and purposes gold remains in a range and is looking for a settlement below 1720 or above 1785 to initiate the next leg. Interestingly, bullion did not test breakout area we previously described, suggesting that there may be strong buying interest in the 1730 area (our other indicators support this assertion). If gold fails to break out of this range on the upside it should test 1720. A move through 1720 or 1685 should prompt moves to the 1685 and 1825 strikes respectively. Long-term this market remains bullish, but short-term we think there is more potential to the downside (especially if the CME is ready to hike margins again). Conclusion: Sideways to Bearish
Active Options V 1600 P Z 1700/2000 Fence Z 1800/1900/2000 C. Butterfly
ATM Volatility Curve:
As of 3:00 P.M.
Volatility Smile:
***From NYMEX Settlement
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