Gold World News Flash |
- Paradigm Shift: New Hampshire Nuke Plant Labor Union Votes to Buy $100,000 in Physical Gold & Silver
- Paper Currencies Finally Redeemed for Gold
- MUST WATCH: Porter Stansberry's Gold Debate With an Uneducated Fella
- Traders brace for Venezuela gold transfer
- S&P downgrades Venezuela (Chavez to nationalize S&P?)
- Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 6% and 8% on the Week
- Richard Russell: Expect Mass Entry Into Gold By Retail Public
- Thom Calandra: Hot money chasing metals equities
- Stocks and Gold Point to a Hellish Outcome
- Armageddon Can Wait
- Gold/Silver Ratio
- The Zen of Resource Speculation
- Market Analysis: How to Prepare for "Economic Depression"
- Gold Overbought
- Dow/Gold Ratio Falls to Post-87 Crash Low
- Gold Overbought, Could Fall by $300
- HP: Grow UP, Already
- This Week the Gold Price Told us Very Loudly that it Intends to Make a New Leg Up
- U.S. Dollar May Assist in Managing Gold & Silver Holdings
- Tyler Durden's picture Interactive Brokers Warns Gold Margin Hike Imminent, CME Next?
- The End of the World Is Nigh!
- The Great Stocks Vs. Gold Round Trip
- Silver Has a Great Day
- Richard Russell - Expect Mass Entry Into Gold By Retail Public
- As Gold Hits New Highs, Middle America Falls
- Silver update 8/19/11 America The Beautiful
- Peter Schiff on Record Gold Prices: “I Told You So!”
- Jim Sinclair Interviewed by James Turk
- Waiting for De Gaulle
- Crises Close to Home
| Posted: 19 Aug 2011 05:35 PM PDT by SGT I just received this message from Joe Verrette, a reader of SGTreport and want to pass it along.
Thanks for the message Joe. The tide is shifting friends, Americans are starting to wake up to the destruction of their currency. And very soon this trickle into physical precious metals will turn into a stampede. Are you ready? ~ SGT
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| Paper Currencies Finally Redeemed for Gold Posted: 19 Aug 2011 05:33 PM PDT By: John Browne Friday, August 19, 2011 The basic unwillingness of politicians to face economic and financial realities has caused the United States and European Union to face currency collapse. The politicians are content literally to paper over the problem with massive amounts of newly printed currency. This means that savvy investors, facing major real losses, are turning increasingly to gold. In essence, even though currencies are no longer on a gold standard, they are increasingly being “redeemed” for gold in the marketplace. For decades, fiscally irresponsible US Administrations have gradually reduced the world’s richest nation, with a currency perceived as ‘good as gold,’ to the position of the largest global debtor, with a debased currency. Furthermore, US stock markets have offered little real return. Indeed, the Dow stands just below 11K, down over 3K ...
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| MUST WATCH: Porter Stansberry's Gold Debate With an Uneducated Fella Posted: 19 Aug 2011 04:58 PM PDT There's an old saying that goes like this: Better to remain silent and be thought a fool than to speak out and remove all doubt. Never has that been more true than in the case you are about to see. James Altucher, the Managing Director at Formula Capital engages in a "gold debate" with Porter Stansberry in what can only be described as a drooling fool's parade on Mr. Altucher's part. SGTreport isn't sure exactly what Mr. Altucher could be qualified to manage the direction of over at Formula Capital, but in our opinion, clients of Mr. Altucher should strongly consider giving Mr. Stansberry a call first thing Monday morning. By the way, take special note of the last 30 seconds in which Stansberry goes full tilt bullish on Silver. ~ SGT
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| Traders brace for Venezuela gold transfer Posted: 19 Aug 2011 04:47 PM PDT London-Caracas Financial Times Bullion traders are preparing for one of the largest transfers of physical gold in recent history after Hugo Chavez, Venezuela's President, ordered the country's gold reserves to be returned to Caracas. Venezuela's central bank is the world's 15th largest holder of gold, with 365.8 tonnes, of which some 211 tonnes, worth $12.3b-billion [...] 
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| S&P downgrades Venezuela (Chavez to nationalize S&P?) Posted: 19 Aug 2011 04:34 PM PDT From Globe & Mail S&P downgrades Venezuela Lucky for Standard & Poor's that it doesn't have an office in Venezuela. It would probably be nationalized if it did. The U.S. ratings agency, in the midst of some controversy in the United States after its downgrade of U.S. debt, and among the agencies that aren't particularly [...] 
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| Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 6% and 8% on the Week Posted: 19 Aug 2011 04:00 PM PDT Gold rose to a new record high of $1876.93 by about 6:45AM EST before it fell back off a bit in New York, but it still ended with a gain of 1.66%. Silver soared to as high as $42.60 and ended with a gain of 4.01%.
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| Richard Russell: Expect Mass Entry Into Gold By Retail Public Posted: 19 Aug 2011 03:29 PM PDT from King World News:
My inclination is to ride the gold bull market until it provides a classic ending. That means sitting through many a coming correction and perhaps extended periods where gold does little or nothing. In other words, I may be doing something stupid but I'm sitting." Russell continues: Read More @ KingWorldNews.com
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| Thom Calandra: Hot money chasing metals equities Posted: 19 Aug 2011 03:03 PM PDT 11p ET Friday, August 19, 2011 Dear Friend of GATA and Gold: Financial writer Thom Calandra, who spoke at GATA's Gold Rush 2011 conference in London this month, tonight reflects on resource conferences, mining company shares, and GATA's work. His commentary is headlined "Hot Money Chasing Metals Equities" and you can find it at Stockhouse here: http://www.stockhouse.com/Columnists/2011/August/19/Hot-money-chasing-me... 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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| Stocks and Gold Point to a Hellish Outcome Posted: 19 Aug 2011 02:30 PM PDT Bill Bonner View the original article. August 19, 2011 01:15 PM Wow…another whack. Wall Street got whacked hard yesterday. It had begun to look as though things were getting back to normal. Then…whammo! Yesterday, the Dow took a 419 point hit. Gold rose $28 to close decisively above $1,800. We keep an eye on stocks and gold. Stocks measure the value of America's businesses. Gold measures the value of America's – and the world's – money. What are these measures telling us? That we're on the road to Hell! Of the two measures, gold is harder to figure out. Stocks are obvious. America's businesses aren't worth 20 times earnings. They're not worth that much because we're in a Great Correction. And after the action of last week…and yesterday…it is becoming clear that this correction will probably last a long time. Layoffs are increasing. Home sales are falling. And consumer prices are rising at a 6% annual rate. The New York Times: The Philadelphia Federal Re...
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| Posted: 19 Aug 2011 02:30 PM PDT Bill Bonner View the original article. August 19, 2011 10:43 AM Until August 15, 1971, wealth was tallied in units of a real and natural thing – gold. It measured out the world's other real things – its resources and its output. Its main advantage was that it couldn't be diddled. That turned the authorities against it; they couldn't make more of it. Nuestra Senora de Atocha, a Spanish galleon, sank in a storm off the Florida coast in 1622. When it was found in the 1970s, its treasure of gold doubloons was just as valuable as it was when the ship left Havana 350 years before. But, post 1971, we have a new, avant-garde money system. Wealth is counted up in pieces of paper…or as electronic 'information.' Each unit has no real value of its own. It only represents a claim against real goods and services. And each year, it purchases fewer of them. What is most remarkable about this freakish new money system is that it is always on the road to Hell but never seems to get there. Sinc...
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| Posted: 19 Aug 2011 01:26 PM PDT YouTuber 'BigDad06' interviews Jeff Nielson of Bullion Bulls Canada about the history of the gold/silver ratio. Stand by for more margin hikes in gold and silver and the link is here. Hugo just nationalized his gold mines and now he wants his gold back from JP Morgan, is this fool crazy? The link is here.
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| The Zen of Resource Speculation Posted: 19 Aug 2011 12:01 PM PDT By Louis James, Casey International Speculator Whenever gold and silver hit a correction, those are the times that try men’s souls. But they are also a classic case of making volatility our friend. And there should be terrific bargains ahead on great stocks, if the market corrects from recent highs. It enables you to go long at prices as low as, or sometimes even lower than, those paid by speculators who picked winning plays early – but with the advantage of hindsight about the results of those companies’ exploration and development efforts. You get a combination of lower risk and lower prices. How cool is that? (As my children say.) This is exactly the kind of environment in which we were able to scoop up shares in companies like Osisko, International Tower Hill and Detour Gold for tiny fractions of their current prices, back in the crash of 2008. I’m not saying we’ll see another crash like 2008 this year – but we might, and eventua...
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| Market Analysis: How to Prepare for "Economic Depression" Posted: 19 Aug 2011 12:00 PM PDT The Gold Report: John Williams, government economist and editor of ShadowStats, put it this way: "The financial markets remain unstable and the U.S. dollar is viewed increasingly as the investment currency of last choice. . .Any cosmetic actions taken pre-2012 election likely only will add to the long-term inflation and dollar-debasement problems." Considering these market conditions, is this a buying opportunity for equities or a good time to take refuge in gold and silver bullion as they continue their climb north? How are you adjusting your investing positions in light of global geopolitical and financial unrest? Nana Sangmuah, Clarus Securities analyst: All indicators point to weakening global macro-economic framework that has stoked the safe haven demand for the bullion. Despite the good run so far, I expect to see some volatility going forward and there will be some pullbacks in the near term. To stay a winner depends on when you jumped on the bullion band wagon. A better way to...
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| Posted: 19 Aug 2011 11:54 AM PDT Adam Hamilton August 19, 2011 2948 Words Gold has enjoyed an amazing rally in recent weeks, catapulted higher by the extreme fear sparked by the sharp stock-market correction. Naturally such big and fast gains have led to a surge in gold's popularity among investors and speculators, as everyone loves a winner. But gold prices flow and ebb like everything else, and this metal has become very overbought today. Many gold enthusiasts' hackles will bristle at the mere idea of gold being overbought. They will counter with many fundamental reasons why gold is heading higher, or argue that current newsflow will spark escalating buying. But gold's long-standing bullish fundamentals do not override short-term technicals. When any price rallies too far too fast, including gold's, the odds balloon for an imminent retreat. As a hardcore contrarian, I started recommending phy...
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| Dow/Gold Ratio Falls to Post-87 Crash Low Posted: 19 Aug 2011 11:46 AM PDT by Adrian Ash BullionVault Friday, 19 August 2011 Today's gold buyers might still get to look early birds as this depression wears on... GROWTH or defense...stocks or gold? Intra-day noise aside in summer 2011, Mr.Market's choice looks plain. gold prices have jumped so far this summer. Dropping through 6.0 ahead of Friday's New York opening, the Dow/Gold Ratio hasn't been this low since early 1989, back when world equity markets were recovering from the Great Crash of Black Monday 1987. That slump itself had taken the Dow/Gold Ratio all the way down to 3.6, with gold prices rising to nearly $500 per ounce as the Wall Street index sank to 1776 points. Growth, of course, was only taking a pause in late 1987 – a quick breather before the real race to perfection of the late 1990s. Today, in contrast, the Dow/Gold Ratio could still go a lot further down. Or so says history. Trading a little over its century-long average of 10.0 today, the ratio bottomed during...
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| Gold Overbought, Could Fall by $300 Posted: 19 Aug 2011 11:45 AM PDT Gold has enjoyed an amazing rally in recent weeks, catapulted higher by the extreme fear sparked by the sharp stock-market correction. Naturally such big and fast gains have led to a surge in gold’s popularity among investors and speculators, as everyone loves a winner. But gold prices flow and ebb like everything else, and this metal has become very overbought today.
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| Posted: 19 Aug 2011 11:44 AM PDT Anger and frustration are the two emotions pulsing through my veins as I write this. HP, once the symbol of innovation, is being dismantled by its high-pedigreed board and the CEO of the hour (I truly hope his tenure will be measured in hours, not years). I vividly remember the early 2000s, when Carly Fiorina, then CEO of HP, engineered the HP merger with Compaq. She argued that the merger was a must for HP's future to be bright. Walter Hewlett, the son of one of the founders, was publicly opposed to it, and I remember the drama of the proxy fight, the TV interviews and arguments from both sides, and the finale – Walter Hewlett lost and the merger went through. But it was not the finale, because nine years and two CEOs later HP has announced that the PC business, the one it so desperately wanted just a decade ago, is too hard a business and that it will look for ways to get rid of it. Almost in the same breath HP announced that it will kill WebOS devices, a business it acquired in April 2010 for $1 billion; and management, possibly missing the irony in those two announcements, went ahead and announced another acquisition, which this time will for sure transform the company. HP will buy Autonomy, a UK software company, for $10 billion. I understand $10 billion doesn't sound like a lot of money in today's post-trillion-dollar-bailout world, but it is plenty for HP, especially considering what that money bought. There are many ways to illustrate how expensive and meaningless to HP's future this acquisition is: $10 billion is about a fifth of HP's market capitalization, while Autonomous will contribute 0.7% to HP's revenues, and 2.7% to its earnings; and HP paid 10x revenues and about 25 times earnings. Leo Apotheker, HP's CEO, bragged about Autonomy: "Autonomy has grown its revenues at a compound annual growth rate of approximately 55% and adjusted operating profit at a rate of approximately 83% over the last 5 years." Keith Backman, a sell-side analyst from BMO Capital, asked a very pertinent question about Autonomy: "… metrics that you threw out for Autonomy, particularly on top-line growth, included a lot of acquisitions for Autonomy. What's the organic growth rate that Autonomy has achieved lately?" Leo did not have an answer, whereupon HP's stock started to drop. HP had reported an OK quarter, expectations were already low (its stock was at about 6x times 2011 estimates, which remain intact), and Dell had already lowered guidance a day before; so no one was surprised when HP lowered its revenue guidance for 2011 by a few percentage points. Management said that since it will pay for Autonomy from cash on the balance sheet, it will not be buying much of its stock in the near future, and then they mentioned that this acquisition will be accretive. Yes, accretive! Nothing to worry about. This transaction is accretive only for illiterates in economics and those short on common sense. HP is using cash on the balance sheet to pay for this transaction, and thanks to the Federal Reserve this cash yields zero and thus brings zero income. As long as Autonomy's income is greater than zero (I am oversimplifying a little) then it will be accretive (at least on a cash basis). However, this assumes that HP's cost of capital is equal to the return it receives on its cash. Which is not the case, as that would ignore such minor details as the time value of money, inflation, the risk premium (after all, unlike the US government, HP cannot print money and doesn't have nuclear weapons) and, simply, opportunity cost. Any investment HP makes today should be compared against an opportunity set that includes its own stock, which at 6x times earnings results in about a 16% yield (cost of capital). In fact, if HP used $10 billion to buy its own stock, its earnings per share and dividend would jump by 16%. Autonomy will not be able to match this return, by a long mile. I don't need to have a great imagination to envision another conference call in August 2015, where a new CEO decides that the software business is too difficult, and HP needs to come back to its roots (maybe going back to making calculators) and will spin off the software business into a new company, take an enormous charge, and then maybe announce an acquisition that the same highly pedigreed board will rubber-stamp. HP's valuation has not changed that much – the PC business only represents about 16% of operating profit, so even if HP gives it away, earnings power will not decline greatly. HP should still be able to get a decent price for it, as there has got to be a Chinese company out there swimming in US dollars that wants to put them to work before they become worthless. HP's core businesses, will be slightly impacted by the global economic weakness, but the company should maintain its earnings power largely intact. Autonomy reduced HP's value by about $3; but with my lack of confidence in management, I'd not buy HP at a P/E higher than 10, which would bring the stock to the mid to high 40s. HP's stock sold off not because the company disappointed Wall Street but because Wall Street grew tired of the overpriced "must-have" acquisitions. Wall Street has smartened up and assumed that this acquisition, as with many other "transformative" acquisitions, will do nothing of the sort. And so, today we are faced with a decision: buy, hold, or sell. At 4.6 times earnings HP is not a sell; but considering that the company is still trying to figure out what it wants to be when it grows up, it is hard to add to our holdings of the stock; so unfortunately this company has turned into a hold. Vitaliy N. Katsenelson, CFA, is Chief Investment Officer at Investment Management Associates in Denver, Colo. He is the author of The Little Book of Sideways Markets (Wiley, December 2010). To receive Vitaliy's future articles by email, click here or read his articles here. Copyright Vitaliy N. Katsenelson 2011. This article may be republished only in its entirety and without modifications.
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| This Week the Gold Price Told us Very Loudly that it Intends to Make a New Leg Up Posted: 19 Aug 2011 11:38 AM PDT Gold Price Close Today : 1,848.90 Gold Price Close 12-Aug : 1,740.20 Change : 108.70 or 6.2% Silver Price Close Today : 4242.8 Silver Price Close 12-Aug : 3910.1 Change : 332.70 or 8.5% Gold Silver Ratio Today : 43.577 Gold Silver Ratio 12-Aug : 44.505 Change : -0.93 or -2.1% Silver Gold Ratio : 0.02295 Silver Gold Ratio 12-Aug : 0.02247 Change : 0.00048 or 2.1% Dow in Gold Dollars : $ 120.95 Dow in Gold Dollars 12-Aug : $ 133.86 Change : $ (12.92) or -9.6% Dow in Gold Ounces : 5.851 Dow in Gold Ounces 12-Aug : 6.476 Change : -0.62 or -9.6% Dow in Silver Ounces : 254.96 Dow in Silver Ounces 12-Aug : 288.20 Change : -33.24 or -11.5% Dow Industrial : 10,817.65 Dow Industrial 12-Aug : 11,269.02 Change : -451.37 or -4.0% S&P 500 : 1,123.53 S&P 500 12-Aug : 1,178.81 Change : -55.28 or -4.7% US Dollar Index : 73.993 US Dollar Index 12-Aug : 74.579 Change : -0.586 or -0.8% Platinum Price Close Today : 1,876.00 Platinum Price Close 12-Aug : 1,796.00 Change : 80.00 or 4.5% Palladium Price Close Today : 750.00 Palladium Price Close 12-Aug : 743.55 Change : 6.45 or 0.9% This week the GOLD PRICE told us very loudly that it intends to make a new leg up. Not only did it gain US$108.70 this week for a new all time dollar high today (3 in the last 3 days), but the GOLD PRICE also closed at a new high in Euros (e1,287) and yen (Y141,700). Another face of the new phase: the GOLD PRICE is climbing against ALL fiat currencies. Y'all need not remind me how overbought gold is. The RSI and MACD both tell me that. But yesterday to all the rest of the panic, Venezuela's Hugo Chavez ordered foreign depositories to send Venezuela's gold home (Venezuela is the world's 15th largest gold holder), 211 metric tonnes or 6.783 Million Ounces (Moz). Bank of England holds 99 tonnes of that (3.183 Moz), while the rest is scattered amongst the usual suspects: JP Morgan Chase, Barclays, HSBC, Standard Chartered, BNP Paribas, and Bank of Nova Scotia. Some speculate that Chavez has precipitated a "short squeeze," i.e., is forcing those short gold to deliver. Nothing quite drives the price of anything like shorts scrambling to deliver, covering at any price. I am of course not accusing ancient, hoary, and respectable institutions like the BoE or JP Morgan or BNP of shorting gold they were supposed to be storing -- why, perish the thought! Yet how else does one account for gold's perpendicular rise? Cheery Chavez also nationalized all the private gold producers in Venezuela, which casts a pall over the gold mining community. Also reminds owners of gold stocks what the words "political risk" mean. Bound to make it harder for miners to borrow and float shares, if only for a while. So today the GOLD PRICE rose $30 to a new all time high of $1,848.90. Yes, it's high, parabolic, and overbought, but how much higher will panic drive it? $2,000? $2,050? $2,100? Higher? I bought some at $1,854, and will buy more. The SILVER PRICE gobbled down a colossal 332.7c this week, rising 8.5% to close Comex today 4242.8. I knew once it got thru 4100c resistance it would jump, but 174.1c in one day? Time I got up this morning SILVER had already burst thru 4150c (about 6:45 New York time), then it shot clean to 4250c. It backed off a little on the open, rose to 4250c again, reacted after testing that ceiling, then bulldozed from 4140c the rest of the day to trade at 4289c in the aftermarket. Technically silver's close today takes it above the last intraday high (4229c) and clears the way for another test of 5000c. Unlike GOLD -- get this -- the SILVER PRICE is NOT overbought and has only this week crossed its 20 DMA (3988c). Plenty of room for a sprint to 5000c. Panic has grown with the week. The GOLD PRICE rose an astounding $108.70 or 6.2%, while the SILVER PRICE rose 332.7c or 8.5%. Dow lost 4.7%, S&P500 4.7%. We are now seeing volumes near what we saw in the 2008 panic, and wholesalers are stretching out delivery. Stocks fell off the cliff at 11,300 on Thursday. Hard for me to ken how anyone might still argue stocks are coming back in the next decade or so. Stock decline looks like a completed 4 waves beginning another down leg. Dow in Gold Dollars passed a new milestone this week, falling below G$$124.03 (6.00 ounces). Closed today at G$120.95, or 5.851 oz. Let me make clear what that means. For 5.851 oz you could buy one share of all the stocks that make up the Dow Jones Industrial Index -- 10,817.5/$1,848.90 = 5.851. Dow in silver ounces likewise has fallen to a new low. Now you need on 254.96 ounces to buy the Dow, while at the top in 2001 you needed 2,560. Do y'all understand that we are entering a new phase of development? That everything is moving faster, more violently, with more volatility? You must protect yourself. Ask, and linger over the meditation: with the stock market collapsing, WHAT WILL BEN DO? Will he stay on the wagon, or will he reach for that jug labeled "QE3"? Stocks -- your ticket to a retirement under an interstate overpass in a splendid cardboard shack with access to fine dumpster dining. One face of the new phase is that instead of falling with stocks in this panic, GOLD has risen, meaning that flight capital is fleeing into gold this time, not US dollars. More astonishing, SILVER is accompanying GOLD up, not following stocks down. O, brave new world! Losing a modest 25.1 basis points, the US DOLLAR INDEX now flirteth with 74, in fact, 73.993. It dropped 0.32% today, but point to watch is that it seems to have bottomed Wednesday and today confirmed that bottom. Whichever Nice Government Men are managing it are laboring mightily to keep it beneath its 20 day moving average, now 74.28. Unless it breaks 73.40, they'll be hard pressed to corral it, faced by a panic. Euro rose 0.45% today to close 1.4394, but remains in a downtrend. Only closes above 1.4697 and 1.4940 can change that. Personally, I think y'all will see 1.2000 first. Yen made an new all time intraday high today and closed at 130.65c/Y100 (Y76.54/$). Pity the NGM working for the Bank of Japan. On 19 August 1848 the gold discovery in California was reported in the New York Herald. YESTERDAY I encouraged y'all to go back and review the crisis recommendations I made earlier. The date was wrong, so I am reprinting the recommendations from 5 August below: HERE ARE THE RECOMMENDATIONS FROM 5 AUGUST 2011. Europe will drag the US into crisis. Here are my suggestions for self-protection: 1. Get liquid. Pay down debt as much as you can. Sell non-performing investments, like stocks, or investments that will suffer from depression or inflation. 2. Close out leveraged positions. Markets are way too volatile for that. 3. Hold on to silver and gold. 4. Hang on to cash anticipating great bargains in a crisis. Remember gold went to $700 and silver to 880c. Gold/silver ratio went to 84, offering a great gold to silver swap. Not expecting those numbers again, but we might see the analogs. 5. Fill up propane tanks, home gasoline or diesel tanks. 6. Stock up on food -- long term storage food, not smoked oysters and tomato soup. Rice, for instance. Dehydrated food. MREs. 7. Stock up on ammo. 8. Get out of the city, or at least have a country place waiting to receive you. Don't be fooled by my calm words, either. Y'all are reading the equivalent of an air raid siren, and y'all had better run for cover. 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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| U.S. Dollar May Assist in Managing Gold & Silver Holdings Posted: 19 Aug 2011 11:00 AM PDT Inexperienced investors in the commodity markets should keep in mind that while gold and silver look good now, silver dropped 59% in the last bear market and gold fell 32%. Both silver and gold held up better than stocks (and the dollar) early in the last bear market (as they are now), but eventually deflationary fears caught up with precious metals. Risk management is required for all positions, even “safe” positions like gold and silver. We own both gold and silver, but it is important that we understand the downside potential of any asset.
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| Tyler Durden's picture Interactive Brokers Warns Gold Margin Hike Imminent, CME Next? Posted: 19 Aug 2011 10:39 AM PDT Courtesy of ZeroHedge The first shot was just fired in today's battle with daily record gold prices. IB always tends to be a few minutes ahead of the CME. And following last week's 22% margin hike in gold, we are confident the CME will do everything in its power to pull a "silver" on gold. [...] 
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| Posted: 19 Aug 2011 10:23 AM PDT User submitted - Original Article Charles E. Rexford Do I really believe the end of the world is near? As for the financial word – Yes, I do! We are all watching the financial indexes whipsaw back and forth with our money. The magnitude of market moves have not been seen in recent times, so what do we do? I personally have not been overly affected by the recent financial negativity. I am not in the equities markets; I got rid of my unwanted house long ago and have plenty of Gold and Silver already. When the time comes and the U.S. population is truly desperate, I will be there to buy property at pennies on the dollar. Now, this may sound harsh, but this is exactly what the upper Class –Royal Elitist Class (REC) are doing. I am taking a page out of their manual and will use it to my benefit. The western economic order as you knew it is dying, how will you protect yourself and your family from what is about to come? If you read Chapter's 1 & 2 on We, the Human Robots Blog, then you would already know what is occurring and why. If you recall, I outlined some of the causes of our current mire. The toxic derivatives created by the slimy, cretin's we call The Big Banks. I discussed how these same banks still hold trillions of dollars worth of toxic garbage on their books, while our leaders forced us to buy it back (our tax money) from the banks at prices well over the true value. Therefore, it is now obvious to most that The Big Banks, our federal Government and the Multi-national corporations work hand-in-hand to steal the wealth of everyone else except their class (REC). I think we can all officially call ourselves Serfs, as we are losing our wealth faster than the blink of an eye. When will we wake up? How can we defeat them? There are ways to protect ourselves from these dire circumstances. There are 5 strategies that I am personally employing that hurt them where it counts. 1) Get Out of the Markets 2) Buy Physical Gold and Silver 3) Stop Being An Oblivious Consumer 4) Make Your House A Home 5) Find Way To Reduce Your Tax Obligation 
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| The Great Stocks Vs. Gold Round Trip Posted: 19 Aug 2011 10:14 AM PDT August 19 (BusinessInsider) — When priced in gold stocks have now returned to where they were at the market's low-point, back in 2009. Actually, we're even worse now.
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| Posted: 19 Aug 2011 10:12 AM PDT |
| Richard Russell - Expect Mass Entry Into Gold By Retail Public Posted: 19 Aug 2011 10:08 AM PDT  With gold hitting new all-time highs and silver surging to $43, the Godfather of newsletter writers Richard Russell had this to say in his latest commentary, "Gold -- I've been receiving many calls to the effect, 'Should I sell my gold now?' My answer is that I don't have the ultimate answer to that question. My thinking is that gold has been in a decade-long (bull) market. Most extended bull markets end with a third-phase period of torrid speculation and a mass entrance by the retail public. So far, we have seen neither. My inclination is to ride the gold bull market until it provides a classic ending. That means sitting through many a coming correction and perhaps extended periods where gold does little or nothing. In other words, I may be doing something stupid but I'm sitting."
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| As Gold Hits New Highs, Middle America Falls Posted: 19 Aug 2011 09:59 AM PDT The economic uncertainty of the U.S. is now evident for the entire world to see, but for many Americans, it has been apparent for quite some time. Economic despair has been spreading across our nation and it can be seen by the rising number of middle class Americans losing their homes. In some cases, joblessness and inability to pay rent has forced people to live in their cars, shelters, or on the sidewalk.
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| Silver update 8/19/11 America The Beautiful Posted: 19 Aug 2011 09:23 AM PDT From BrotherJohnF Filed under: Buy Gold, Buy Silver, COMEX, commodity futures trading, commodity trades, consumer protection act, Corrupt government, European banks, european market turmoil, Eurozone, federal reserve chairman ben bernanke, federal reserve system, international monetary system, jp morgan chase, market manipulation, Mining, Questionable ETF, SEC Chairwoman, silver dollar coins, silver futures, Stock market, Trading silver [...] 
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| Peter Schiff on Record Gold Prices: “I Told You So!” Posted: 19 Aug 2011 09:19 AM PDT With the decline of the world economy, many investors are flocking to the precision metal: gold. Many say buying gold is a safe haven from worldwide inflation and gold will keep its value over any paper money. Will gold continue to increase in value? Peter Schiff, president of Euro Pacific Capital, tells us more about the precious metal.
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| Jim Sinclair Interviewed by James Turk Posted: 19 Aug 2011 09:13 AM PDT Dear CIGAs, James Turk of www.GoldMoney.com was kind enough to interview me on recent events in the Gold market. Please check out the interview below as a weekly review. Jim Sinclair interviewed by James Turk August 8th, 2011 | Author: Michael Piromgraipakd In this GoldMoney segment, James Turk, Director of The GoldMoney Foundation, Continue reading Jim Sinclair Interviewed by James Turk
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| Posted: 19 Aug 2011 09:13 AM PDT August 19 (The New York Sun) — Governor Perry's remarks on Chairman Bernanke's debasement of the dollar were greeted with widespread complaints owing to the governor's raucous tone. So how could he have better made his case? For an example, we commend none other than Charles De Gaulle. We comprehend that the general-turned-president of Free France is renowned for his haughtiness and, for that matter, his mixed view, to put it mildly, of America. Let's lay that aside for the moment and feature the prophetic remarks he made in February 1965, warning of the incipient monetary crisis that would, absent a return to gold-backed money, engulf the world. When these columns speak of our hope that some leader of our time will address this issue, this is the kind of talk for which we are hankering. PG View: In 1965 De Gaulle called for a return to an "indisputable monetary base," one that "does not bear the mark of any particular country." He of course was referring to gold. As was pointed out in a Forbes article early in the week on the 40th anniversary of President Nixon closing the gold window, "over the last four thousand years, the only period in which humanity has not consistently based its currency in metal, specifically gold, is the last forty." And look what that has wrought…
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| Posted: 19 Aug 2011 08:56 AM PDT Addison Wiggin – August 19, 2011
The uniquely obnoxious bunch at CNBC's Fast Money posted a web article this morning with the headline "Is Gold the Only 'Safe-Haven' Investment Left?" So we must be getting somewhere in the frothy cycle leading up to a bubble…  Still, the answer appears to be in the affirmative. The spot price for the yellow metal is up to $1,850 — a $200 move in two weeks. Heh, if you trade gold futures, be on guard for an increase in margin requirements.
Looking at the charts, Alan concludes, "Higher highs and higher lows set a course to move… higher… from here." His readers already took 125% gains in six weeks on part of a silver play last month… and the rest of the position is set for another solid gain between now and the end of next week. Don't feel bad if you missed out. Alan's always on the lookout for opportunities. You can join him here.
Big losses in Asia and Europe — many indexes are at two-year lows — seem to have rested this Friday on the other side of Atlantic. The Dow and the S&P are down slightly after yesterday's big losses, and the Nasdaq is actually up a bit.
As August drags on, the dire straits of state and local governments are making themselves known in ways both sublime and ridiculous. Please, take your time and enjoy. They get better as The 5 rolls on…
"Gov. Jerry Brown and state lawmakers," explains the Los Angeles Times by way of background, "patched up the final $4 billion of California's budget shortfall this year by hoping for a windfall economic recovery." "Those hopes are now fading fast." "Every drop in revenues puts us closer to the drastic trigger cuts that could be imposed next year," state controller John Chiang told the paper. Result in California's case: A cut to education spending that could trim the school year by up to seven days in some districts.
The problem, according to Fitch? Not enough money to make good on all the pension and health care promises made to retired state workers. And even if there were enough money… there wouldn't be enough left over for other priorities like property tax relief, schools and public works. As a recent study discovered fully funding state and local pensions in New Jersey would require taxing every household an extra $2,475 every year for the next 30 years. That's enough to put New Jersey No. 1 on the Pension List — one of three measures we used to assess the economic health of all 50 states. Where does your state stand, and which states are best prepared to weather an economic storm? Answers in our special report, American Oases. Access here.
True, the agreement doesn't actually cut spending; it only cuts the rate of growth in spending. But the prospect of "less" money from Washington still has state governments on edge — especially with the flood of money from the 2009 stimulus bill now reduced to a trickle. "Some lawmakers worry," reports The Miami Herald, "that less money for Florida will further handcuff state budget writers, who have relied on federal money — plus $2 billion in new fees and cigarette taxes in 2009 — to piece together a state budget that is $4.6 billion smaller than that of 2006." Florida actually looks pretty good on The Handout List — our name for a measure of how much each state counts on Washington to help make ends meet. So if they're worried there, they must be really worried in places where for every $1 sent to Washington, more than $1 comes back. TIME – Maryland, for instance, the state in which our headquarters reside, is hoping to remain one of nine states still boasting a AAA credit rating.  "We believe that Maryland's prudent fiscal management will be viewed positively by the rating agencies as they review the states," says a nervous-sounding state treasurer Nancy Kopp. She's nervous because Standard & Poor's issued a statement this week about state credit ratings. It included an implied warning for states — like Maryland and Virginia — that are close to Washington's orbit. "We expect that many of these obligors, particularly those with relatively low levels of funding interdependencies with the federal government… should be able to retain ratings above the U.S…." That would not include Maryland, which collects $1.30 for every $1 sent to Washington. By the way, you might be surprised at the states that show up at the top of the Handout List. A lot of them have a reputation for running a tight ship. But in reality, they're actually beneficiaries of generous D.C. handouts. 
Central Falls declared bankruptcy on Aug. 1, facing a $5 million deficit in a $17 million budget. City retirees are now kicking in 20% of their health insurance. The library, shuttered earlier this year, has reopened — part-time, with volunteers. Because Central Falls is broke, Rhode Island's state government has picked up most of the legal tab. One-third of the total to date has gone to a law firm where Gov. Lincoln Chafee's chief of staff used to be a partner. Yikes… No wonder Rhode Island is in the Top 10 on the Debt List — another indicator we used to prepare American Oases.
The city hopes to shave $500,000 off a $2.7 million annual streetlight bill… by removing 2,400 lights. "Officials spent hundreds of hours determining which lights to remove to make sure adequate light remains," reports The Associated Press. Were those hundreds of overtime hours? How about the hundreds more they'll need to remove the lights?
In years gone by, the state budgeted $13 million a year to bury some 12,000 people on public assistance. But this year's budget was only $1.9 million, and that money ran out on Monday. More than 600 funeral homes have been notified they can no longer count on the state to pick up the bill. "Funeral directors have been advised to look for money from city or county governments," reports Chicago's NBC station. Heh.
According to a police memo, 98% of the calls turn out to be false alarms… and the manpower and salaries used to answer false alarms is needed to patrol the streets instead. During a 24-hour span last Friday and Saturday, 16 people in Detroit were shot. Seven died. Which brings us to the other phenomenon that seems to accompany a poor economy and strapped state and local governments: Violence.
Last weekend, gunfire wounded three teenagers in an entertainment district ironically called Country Club Plaza. The mayor happened to be in the area at the time; in a case of further irony, he was delivering a speech about large numbers of teenagers congregating in the entertainment and shopping areas. He had to hit the deck. "They basically forced me into the flowerbeds by the Cheesecake Factory," Mayor Sly James said of his bodyguards. As we mentioned on Wednesday, Philadelphia imposed a similar curfew last weekend. There it was a response to the "flash mob" phenomenon of young people cleaning out stores or robbing people on the street. "This summer, spontaneous incidents of group violence — dubbed 'flash robs' — have happened in Minneapolis, Chicago, Cleveland, New York and Washington, among other cities," says a report from CNN this morning, as if to answer our reader who asked earlier this week why the phenomenon isn't getting mainstream media attention. "We're at a point where everyone understands the power of a flash mob," California psychologist Jeff Gardere tells CNN. "People inevitably started thinking this was accessible to them, and, of course, it is — everyone has a phone." "You've got a group that feels angry and powerless, and they're trying to assume a sense of power." Once again, our recent forecast is coming true faster than even we anticipated. But you shouldn't feel helpless. Along with a vivid description of the problem, we lay out a five-part solution set. You can see it for yourself here.
From Marysville, Calif., comes word of three drivers getting ticketed… because they honked their horns in support of a picket line at a local factory. That's $233 a whack for "improper use of a horn." According to the state vehicle code, the horn should be used only to give "audible warnings." After this list, we feel like we need a good belt of a vile sorghum distillate…
Two months ago, Diageo bought a majority stake in Shui Jing Fang, a premium baijiu label. Word is they've already found a distributor in Los Angeles.  "Baijiu hasn't been explained or distributed well" outside mainland China, says Diageo's Lee Harle. "Just like people will not accept factory-made mapo tofu, they no longer want the Disneyland version of [baijiu]." When you compare your product to any kind of tofu, you know you have an uphill climb…
The 5: We've been at this long enough to know there's always a "but…" "What I can't understand," the reader confirms our suspicion, "is how you claim to be nonpartisan but gleefully bash away at Obama with all this baloney about black buses and such when it is painfully obvious that our current economic problems were specifically caused by the Bush administration, which inherited a surplus." "You did point out Bush's failing at the time, but now you seem to have sprouted tea leaves. Obama's policies are actually to the right of Richard Nixon's, if you examine them closely." The 5: Heh. You have to admit the black buses are a hoot. But the president hasn't tried to impose wage-price controls as Nixon did, we'll give you that. "I am tempted to accuse you guys of racism," the reader plays his final hand. "Unless, of course, you really do want to see a nut job like Perry become president, in which case I can only assume you are planning to move elsewhere and hope to quicken the descent of the United States into chaos." The 5: Fine. You clearly haven't been reading very closely over the past seven years then, either. We do want to thank you, however, for reminding us what a waste of time it is to comment on anything remotely political in The 5.
"That is the whole point," the reader goes on. "Even if the Tea Partiers put in the president, and even if the Republicans controlled both bodies of Congress, they all would be shaking in their boots looking at the probability of change, real change. He would never be confirmed. "And that, friends, is what you write about every day, the corruption and lack of sense in government affairs. "I would say that the zombies in America don't have the intellectual capacity to even understand Ron Paul, but they do understand that they will be cut off at the knees if he were elected. "The chances of Ron Paul being elected president (I will vote for him) and him being appointed as Fed chairman are about the same either way." The 5: What do the Tea Partiers stand for anyway? Fiscal rectitude? In a Washington Post poll last spring, 70% of self-identified Tea Partiers opposed any cuts to Medicare and Medicaid. "Keep your government hands off my Medicare," indeed.
"Seriously, is there a possibility for an Agora Financial spinoff that could bring together those of us who are not free-meat-crazed zombies in way that we could actually have enough impact on the politics and crazy taxation that are choking all of us some to bring about enough real change to free us all?" "Perhaps I'm dreaming, but if there's any hope, let me know and sign me up!" The 5: We were asked the same question in Vancouver. We're not sure exactly what you have in mind. Gary Gibson hosts thousands of kindred spirits Whiskey & Gunpowder. That's about as close as we get to a political action committee. Oy. Have a good weekend, Addison Wiggin P.S."Normally, I don't get involved in timing plays, short-term trades or swing trades," says Ray Blanco of our tech and biotech team. "However, sometimes it is apparent that big things can happen to a company in the near term, and if we don't move quickly, we can miss out on the opportunity to 'get in while the getting in is good.'" "I've been looking at this company for months. I've been reading research reports, examining the technology and talking to knowledgeable investors that have maintained a large stake in the company for many years. I think the company presents us with an excellent long-term investment." In fact, it fits in perfectly with the view Ray and Patrick Cox take of technology and the role it will play in a post-crisis America… as they explain right here.
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With gold hitting new all-time highs and silver surging to $43, the Godfather of newsletter writers Richard Russell had this to say in his latest commentary, "Gold — I've been receiving many calls to the effect, 'Should I sell my gold now?' My answer is that I don't have the ultimate answer to that question. My thinking is that gold has been in a decade-long (bull) market. Most extended bull markets end with a third-phase period of torrid speculation and a mass entrance by the retail public. So far, we have seen neither.
Gold hit a new record again today.
Silver is moving up even more powerfully today, cresting $42.
"A number of things remain supportive for silver," says our resource trader Alan Knuckman.
Today's follow-up meltdown anticipated for U.S. stocks hasn't materialized, not as of this writing anyway.
And thus… on a slow news day, with the president on vacation in Martha's Vineyard, and nearly one-fifth of the U.S. House on a lobbyist-sponsored trip to Israel, we turn our gaze from the folly of Washington… and focus instead closer to home.
Just as they needed it most, California tax revenue came in $539 billion below the most recent forecasts — about a 10% shortfall.
Fitch downgraded New Jersey's credit rating yesterday. It was AA. Now it's AA-. That's three steps below AAA. The outlook, however, was revised from negative to stable.
Even states in relative fiscal health are facing a crunch, thanks to the debt ceiling agreement in Washington. 
Proving it costs a bundle of money to go bankrupt, lawyers have charged the city of Central Falls, R.I., $1.2 million since the city filed for receivership in May 2010.
Rockford, Ill. — where unemployment runs 11.6% — is saving a little money by yanking streetlights out of the ground.
In a truly macabre move, the state of Illinois announced this week it will no longer pony up for funerals of the indigent.
Starting Monday, police in Detroit will no longer answer calls from automatic burglar alarm calls unless the alarm company verifies there's a problem.
Kansas City, Mo., will enforce a 9 p.m. curfew tonight for anyone under 18 in five sections of the city.
And what Friday afternoon would be complete without at least one addition to the ever-popular list of fines for petty crimes, noncrimes and disobedience?
After our, um, mixed experience drinking baijiu while in China earlier this year, we're not sure what to make of this news: The spirits maker Diageo is looking to distribute it beyond China and Hong Kong.
"I have been following you over the last seven years and have found your observations astute and, obviously, pretty accurate."
"Oh, yeah, I agree," writes the reader who suggested yesterday that Ron Paul would have more impact as Treasury Secretary or Fed chairman than as president. We wondered who would appoint him, or how he'd have to bend to get someone to appoint him.
"When is Bill Bonner running for president?" a reader asks after seeing his "presidential" address. "Or is the nation so full of zombies that too few would wake up enough to vote for him when he gives a speech like that?"| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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