Gold World News Flash |
- News That Matters
- Bob Chapman: $8,000 Gold & $500 Silver, MINUMUM: SGT Interview
- Gold Seeker Closing Report: Gold and Silver Gain Over 2% More
- DOW: GOLD RATIO & THE SECULAR BEAR MARKET
- Silver Update: “Grifters” August 22nd, 2011
- Gold Price Hits $1900
- Gold Bullion Moves Parabolic: Look For Mining Stocks To Play Catch Up
- Monthly Gold Chart with some Price Projection levels
- Charles Oliver: Value Propositions in Turbulent Times
- Animal Spirits and Unemployment
- Rob Kirby… took this picture today at 2:30 pm at 44 King St. W. – Scotia's Head Office This is the line up for PRECIOUS METAL only.
- Japanese PM Naoto Kan Is Out August 30
- Did the Fed Buy the Market to Stop the Collapse?
- Indian Gold Imports May Reach Record 1,000 Tons as Investment Demand Rises
- GLD vs. SPY
- Is Another Big Bank Collapse Brewing?
- Hugo Chavez Wants His Gold
- Gerald Celente: Gold is the Wisest Asset
- James Turk interviews Ben Davies during GATA's London conference
- Peter Schiff: When Silver Breaks $50 Shorts to Propel it to $75-$100
- FED Handed Out $1.2 Trillion to Wall Street Aristocracy
- Gold Reaches Elliott Channel – Probability of Correction Increased
- Ennio Morricone – Ecstasy of Gold
- Gold Price Cracks $1,900: New Record on Safe-Haven Buying
- The Neverending Story of a “Gold Bubble”
- Gold Soars As Trading Reopens, Hits $88 Away from $2000
- Gold Over $1900
- Is Resource Nationalism on the Rise?
- You’re Gonna Need MORE Than Gold…
- The Devil Is In The Details...Speaking Of The Devil (per my earlier post)
| Posted: 22 Aug 2011 07:08 PM PDT
Ft.com Andy Coulson, the former editor of the News of the World who has been arrested on suspicion of involvement in phone hacking, received significant payments from News International after he took up his role under David Cameron as the Conservative party's communications chief in 2007. http://ftalphaville.ft.com/thecut/2011/08/23/659806/coulson-received-now-payments-as-tory-aide/ Goldman Sachs chief executive Lloyd Blankfein has hired high-profile Washington lawyer Reid Weingarten, Reuters says, citing an unnamed government source, as the Justice Department continues to investigate the bank. Goldman Sachs shares fell almost 5 per cent on after the report reignited concerns that the bank's legal headaches may return http://ftalphaville.ft.com/thecut/2011/08/23/659766/goldman-shares-fall-on-blankfein-lawyer-report/ The China Flash PMI index suggests the country's manufacturing sector could shrink in August, for the second month in a row. Bloomberg reports the HSBC/Markit Economics purchasing managers' index was 49.8 in August after a final reading of 49.3 for July. http://ftalphaville.ft.com/thecut/2011/08/23/659726/china-pmi-flash-suggests-second-negative-month/ A son of Muammar Gaddafi who rebels said they had captured appeared with cheering supporters in Tripoli, says Reuters, giving a boost to forces loyal to the veteran leader trying to fight off insurgents who say they control most of the capital. Saif al-Islam, http://ftalphaville.ft.com/thecut/2011/08/23/659721/rebels-battle-to-control-tripoli/ Gold has climbed back to all-time highs as a rally on Wall Street fizzles amid uncertainy about the price of oil, the direction of the Federal Reserve and the pace of economic growth, reports the FT's global market overview http://ftalphaville.ft.com/thecut/2011/08/22/659631/risk-rally-fails-to-gain-traction/ Angela Merkel, German Chancellor, has repeated her country's refusal to join other eurozone states in issuing joint "eurobonds" as protection from the debt crisis, the FT reports. "The markets want to force us into doing certain things http://ftalphaville.ft.com/thecut/2011/08/22/658981/germany-defies-call-for-eurobonds/ Libya could return to the global oil market within weeks after the rebels appeared to be on the brink of victory, but the full resumption of output is months, if not years, away. Libya produced about 1.6m barrels a day of oil before the start of the civil war, but the six-month conflict has reduced the flow to just 50,000 b/d, according to industry estimates. http://www.ft.com/intl/cms/s/0/3e3e2974-ccd7-11e0-88fe-00144feabdc0.html#axzz1VpA0w13T Rich families around the world face a choice between surrendering privacy around their investments and significant legal risk as a consequence of new US rules designed to improve hedge fund transparency. Offices established to manage family wealth need only a tenuous connection to the US to be required to register as an investment adviser with the Securities and Exchange Commission. A family that fails to do so runs the risk of punitive damages if sued in US courts by estranged family members or disgruntled employees, lawyers warn. http://www.ft.com/intl/cms/s/0/f5f8ecde-cbf1-11e0-9176-00144feabdc0.html#axzz1VpA0w13T The European Central Bank bought eurozone government bonds at a brisk pace last week, despite opposition from Germany's Bundesbank, which on Monday broadened its criticism of steps taken to shore up Europe's monetary union. The €14.3bn spent was less aggressive than the €22bn of purchases in the previous seven days but still the third-largest weekly amount since the programme was launched in May last year. http://www.ft.com/intl/cms/s/0/d1cd36b4-ccc6-11e0-b923-00144feabdc0.html#axzz1VpA0w13T Wsj.com Last fall, a group of leading anticorruption activists in India had reached a dead end. Their appeals to authorities to crack down on graft after a wave of high-profile scandals were going unheeded. They needed a figurehead to galvanize the masses and shame the government into action. One of the activists traveled to a rural outpost in western India to enlist Kisan "Anna" Hazare, a military veteran best known for turning a village that was stricken by drought and hooked on alcohol into a model of economic development. In Mr. Hazare, the movement tapped a leader whose austere lifestyle and history of nonviolent protests, including fasts, recalled the spirit and tactics of modern India's most iconic founding father, Mohandas "Mahatma" Gandhi.http://online.wsj.com/article/SB10001424053111904279004576524251574234220.html?mod=WSJEUROPE_hpp_MIDDLETopNews Swiss supermarkets are planning further price cuts to tackle the soaring Swiss franc which is driving food shoppers over the border into Germany and France. Retailers like the cooperatives Migros and Coop, as well as discounter Denner, have already cut prices of food, drinks and household and personal care items by up to 20%. Now they plan further reductions in the coming weeks which will extend to other products. http://online.wsj.com/article/SB10001424053111903327904576524740292236386.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews Portugal is starting to feel the pain of the government's deficit-cutting drive, raising the prospect of social unrest in a country that has endured three years of austerity with only sporadic and small protests. Compared with other euro-zone countries caught up in Europe's debt crisis, Portugal has been a haven of calm. Greece has seen violent protests while in Spain, tens of thousands of people took to the streets in May and June demanding political change. http://online.wsj.com/article/SB10001424053111903461304576524392772951396.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews The number of American households that fell behind on their mortgages increased slightly in the second quarter from the previous quarter, according to a survey released Monday, an unwelcome sign for the U.S. economy. After falling for most of the year, the figures offer the latest indication of how the slumping job market threatens to create new problems for housing. Mortgage delinquencies, while still down from their year-earlier levels, have now edged up in two consecutive quarters after hitting a plateau last year, according to the Mortgage Bankers Association.http://online.wsj.com/article/SB10001424053111903461304576524213444138314.html?mod=WSJASIA_hpp_LEFTTopWhatNews Marketwatch.com Reuters.com Altogether, there are now almost 46 million people in the United States on food stamps, roughly 15 percent of the population. That's an increase of 74 percent since 2007, just before the financial crisis and a deep recession led to mass job losses. At the same time, the cost doubled to reach $68 billion in 2010 — more than a third of the amount the U.S. government received in corporate income tax last year — which means the program has started to attract the attention of some Republican lawmakers looking for ways to cut the nation's budget deficit. http://www.reuters.com/article/2011/08/22/us-usa-poverty-foodstamps-idUSTRE77L45Z20110822 Bloomberg.com Japan's two-year bonds yielded the least relative to overnight lending rates between banks in nine months on speculation the Bank of Japan will add to monetary easing to counter the yen's advance against the dollar. The spread fell to 4.9 basis points yesterday, the least since Nov. 4. The two-year overnight-index swap rate, an indication of what traders expect the Bank of Japan's key interest rate will average during the period, sank to 0.05 percent, the least since Oct. 5. The comparable U.S. rate slid to 0.07 percent on Aug. 11, a level not seen since Dec. 2001. http://www.bloomberg.com/news/2011-08-22/spread-dropping-to-nine-month-low-signals-more-easing-by-boj-japan-credit.html Hong Kong's inflation surged to the fastest pace since 1995, encouraging workers to press for higher pay even as the economy teeters on the edge of recession. The consumer price index rose 7.9 percent from a year earlier after a 5.6 percent increase in June, the government reported on its website yesterday. Excluding distortions caused by a public housing subsidy, prices rose 5.8 percent.http://www.bloomberg.com/news/2011-08-22/hong-kong-s-worst-inflation-since-1995-may-boost-recession-risk.html Cnbc.com The Federal Reserve will take action if the economy weakens substantially and deflation reappears, a senior Fed official said in an interview with Japan's Nikkei business daily published on Tuesday. St. Louis Fed President James Bullard said he would support action if that occu | ||
| Bob Chapman: $8,000 Gold & $500 Silver, MINUMUM: SGT Interview Posted: 22 Aug 2011 05:22 PM PDT Back again, SGT talks to Bob Chapman of The International Forcaster about precious metals and current events.
| ||
| Gold Seeker Closing Report: Gold and Silver Gain Over 2% More Posted: 22 Aug 2011 04:00 PM PDT Gold climbed to a new record high of $1894.40 in Asia before it fell back to $1857.80 by a little after 8:30AM EST, but it then rallied back higher in New York and ended near its earlier high with a gain of 2.15%. Silver soared to as high as $44.022 before it pulled back to $42.46, but it also rallied back higher in New York and ended near its earlier high with a gain of 2.55%.
| ||
| DOW: GOLD RATIO & THE SECULAR BEAR MARKET Posted: 22 Aug 2011 03:59 PM PDT As I have been warning investors for many months, stocks have now entered stage III of the secular bear market. Gold on the other hand is now in the final parabolic phase of a 2 1/2 year C wave advance. My best guess was that we would see a Dow:gold ratio of between 5-6 before this C wave ended. The ratio was at 5.71 as of today. For reasons explained in the nightly reports I think we may still have a little further to go on the downside for stocks and a little further upside in gold. So it's entirely possible that we could see a Dow gold ratio of 1:5 before the trends reverse.  Cyclically the stock market is now in the middle of the timing band for an intermediate bottom. Presumably a sharp bear market rally in stocks will trigger a regression to the mean, profit-taking event in the precious metals market (the D-wave). D-Wave's almost always test, and sometimes marginally penetrate the 200 day moving average. I've illustrated in the chart above a rough guess as to where I expect the countertrend rally in stocks and the D-Wave correction in gold to retrace. Keep in mind that the fundamentals for gold have not changed. A D-Wave is simply a profit-taking event triggered by an unsustainable parabolic rally. It has nothing to do with fundamentals. Once the D-Wave has run its course gold will enter a sharp snapback rally (the A-wave), after which it should consolidate for the remainder of the bear market in stocks. Stocks on the other hand, after what should be a very convincing bear market rally, will roll over and continue down into a final four year cycle low, probably in the late summer or early fall of 2012. Depending on whether or not the Fed tries to fight the cleansing process stocks should either test the March 09 lows, or if Bernanke tries to stop the bear market with another round of quantitative easing, we could see the March 09 lows breached. Either way I expect that 2012 will go down as one of the worst years in human history. Certainly in the same category as 1932 if not worse.       
This posting includes an audio/video/photo media file: Download Now | ||
| Silver Update: “Grifters” August 22nd, 2011 Posted: 22 Aug 2011 03:50 PM PDT | ||
| Posted: 22 Aug 2011 03:48 PM PDT Gold Price Close Today : 1,888.70 Change : 39.80 or 2.1% Silver Price Close Today : 43.32 Change : .89 or 2.1% Platinum Price Close Today : 1,905.70 Change : 30.80 or 1.6% Palladium Price Close Today : 764.85 Change : 16.30 or 2.1% Gold Silver Ratio Today : 43.60 Change : 0.01 or 1.00% Dow Industrial : 10,854.65 Change : 37.00 or 0.3% US Dollar Index : 73.99 Change : -0.17 or -0.2%  Editors Note: Franklin Sanders has not published any commentary today. If publishes it later it will appear here. 
| ||
| Gold Bullion Moves Parabolic: Look For Mining Stocks To Play Catch Up Posted: 22 Aug 2011 03:15 PM PDT Uncertainty and fear are the mother's milk of the metal's market. Our pundits, politicians and professors have given us plenty of reasons to question whether these supposed savants are steering with a working compass. One day headlines proclaim, "Bernanke Ready To Do More If Needed". Then we later read that the Professor is playing down the possibility of additional quantitative easing due to internal dissent. This cold water is being doused on the markets after evoking these hopes. How can the bourses be anything but unsettled by such erratic behavior emanating from Washington's mavens and Europe's Pundits? An old blues song keeps playing in the subconscious: "First You Say You Do and Then You Don't, Precious metals thrive on equivocation in high places. Ergo volatility and obfuscation. There are plenty of exogenous factors that are present in the market mix, such as the debt ceiling, downgrades from the S&P, the persistent Euro-Zone travails, and let's not forget the constant rumblings from the Middle East cauldron. A sector of the world although presently unnoticed may soon resume its position on the global market stage. At my firm, we intend to write more about this particular area as we expect it to exert a profound impact on the financial markets going into the second half of 2011. Gold Stock Trades has alerted its subscribers to the breakout in precious metals and critical pivot point of $52.50 on the Market Vectors Gold Miners ETF (GDX). This move may encounter ebbs and flows on its way to its destined heights. Constant vigilance for possible entry points on the way up are advised. Let's look at the record. Our technical studies reveal an upward arc despite the diversions of day-to-day turbulence. Volume on the pullbacks are only merely above average. These volumes were significantly less than recorded during recent breakouts, indicating institutions may be adding miners as a safe haven.
For many weeks $52.50 was our line in the sand. That has held. I would like to review this chart as a precaution to those who panic out at exactly the wrong times. Notice on the chart the weekly inverted hammer which occurred at that critical area, the second week of June. Weekly inverted hammers are common around bottoms of corrections as it indicates a large number of speculators who began shorting as GDX tested and made a fake breakdown, momentarily penetrating 2011 lows. At that time many were calling an end to the precious metals market and began shorting. However, we saw a trap — many were caught. Short covering rallies morphed into authentic breakouts as the long term trend followers returned, this after the 200-day was regained on excellent volume. Some of the major miners such as Goldcorp (GG), Newmont (NEM) andBarrick (ABX) exhibit the powerful technical and fundamental characteristics of potential precious metal leaders. The weekly long term downtrend in the US dollar (UUP) is intact as it threatens reaching new lows. Through the first half of 2010, we were dealing with Euro debt concerns and the run-up last summer in the US dollar showed it still maintained a safe haven status. Conversely in 2011, we have had a confluence of black swans globally, especially with the Euro (FXE) and the U.S. dollar is not catching a bid and is still hovering around record lows. We are seeing parabolic moves in gold (GLD) and silver (SLV) in 2011, as more investors realize the validity of precious metals as a safe haven. Soon investors will realize miners are sitting on assets increasing in value, which have not yet been reflected in their share price. Stay tuned to my daily bulletins.
| ||
| Monthly Gold Chart with some Price Projection levels Posted: 22 Aug 2011 03:02 PM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Gold has shown continued strength going into the Asian session this evening. In the process of so doing, it has reached the upper limits of the pitchfork extensions shown on the chart. I have chosen the monthly upon which to do some analysis so as to get the long term picture and point out several things which merit mentioning. Notice that the dark green center line has acted as the upper boundary for the entire move since the reaction that occured in the gold price in late 2009, early 2010. All subsequent rallies met this line and held below it until this month when price exploded through the center line alerting that the trend higher in gold was now accelerating. The three red outer lines and the single blue outer lines are projected levels where we can expect to see some resistance form. Thus far the two red lines nearest to the center have failed to cap the price rise. We are currently tr...
| ||
| Charles Oliver: Value Propositions in Turbulent Times Posted: 22 Aug 2011 02:11 PM PDT The Gold Report: We recently witnessed violent market swings in the wake of U.S. officials reaching an 11th-hour agreement to raise the debt ceiling, the downgrading of the U.S. debt and a little positive news on the unemployment front. In fact, for the first time ever, the Dow recorded four straight days of ups and downs exceeding 400 points. What kinds of moves are you making in your funds during this upheaval, and what philosophies or strategies are governing your decisions? Charles Oliver: I'm generally continuing to follow a long-term strategy. I believe we're in a bull market in gold, so basically I'm pretty much staying long for the course in the Sprott Gold & Precious Minerals Fund. I'm trying to upgrade and improve the portfolio on a continuing basis. One of my themes for the last six to nine months has been increasing my large-cap component due to concerns about the overall economy and fear about pullbacks such as those we've been seeing, and improving liquidity prior to thi...
| ||
| Animal Spirits and Unemployment Posted: 22 Aug 2011 02:09 PM PDT The Internal Contradiction of Short Term Stimulus The debate over whether or not continued deficit spending should be pursued is often characterized as a choice between the short term beneficial effect of Keynesian stimulus as against the long term growing, and ultimately unsustainable, government debt to which continued stimulus would contribute. If one accepts the view, propounded by Keynes' biographer Lord Skidelsky, that "The government…is the only agency that can prevent total spending in the economy from falling below a full or acceptable employment level. If private spending is depressed, it can restore total spending to a reasonable level by adding to its own spending or reducing taxes" then the choice is indeed a conundrum. Proponents of the position articulated by Lord Skidelsky have advocated a form of "jam today" approach; pursue fiscal stimulus today, but pair it with a commitment to impose austerity during the "medium term". This is thought to be an elegant solution that enables the government to nurse the economy back to growth without jeopardizing its solvency. It implements Keynes' recommendation that "The boom, not the slump, is the right time for austerity at the Treasury." This view, however, assumes there to be a reliable relationship connecting increases in aggregate spending to increases in employment; that is the point of the quote from Lord Skidelsky above. The absence of such causality would undermine the case for deficit spending. In its absence, government might boost GDP, for a time, without increasing employment, in which case the recovery would be "jobless" and its only accomplishment would be to boost measured output for a few more quarters while further burdening government with debt.It is one of the salient facts of our current situation that, in the US at least, such a linkage appears not be operative as it is experiencing a jobless recovery. John Hicks' Doubt One can find, within the citadel of Keynesian theory, an explanation for why this may have occurred. Sir John Hicks, the creator of the "IS-LM" model which has served as the core of Keynesian economics since he published it in 1937 [1] , came to question the implicit linkage between spending and employment embodied in his model. In a 1980 article [2] , Sir John recognized that the decision to hire in response to an increase in demand depended upon expectations about how permanent would be the increase in demand; "An excess [of demand] which is expected to be quite temporary may have no effect on input [hiring]; it is not only the current excess, but the expectation of its future which determines action". Sir John had rediscovered the insight of the great 19th century political economist John Stuart Mill that "demand for commodities is not demand for labor". Sir John uncovered an irony at the very center of the Keynesian approach. An economic downturn may be caused by a decline in confidence triggering a decline in private spending, but in order for Keynesian stimulus to generate employment, a certain level of "Animal Spirits" is required; businesses will only hire if they expect demand to last. In our present predicament, the imperative to begin reducing government debt in the not too distant future places in question a belief that current deficit spending will lead businesses to conclude the boost in demand will be long lasting. What to Do Now In spite of this, many economists persist in calling for more stimulus, primarily because they cannot think of what else to do, which more reflects the paucity of their imaginations than any real limitations. One obvious place to look is the constraining effects the accumulation of financial market and homeowner mortgage debt –built up in the run up to the crisis and made worse by the subsequent collapse in real estate values – has imposed on economic activity. The need of banks to hoard capital to cover losses and to meet tougher anticipated future capital requirements has led to the first protracted decline in US bank lending since the Great Depression. The ill effects of foreclosures and destruction of household wealth on consumer spending place a major drag on economic activity. Until something is done to restructure the balance sheets of the banking and mortgage sectors, growth and employment are unlikely to fully recover, regardless of the buoyancy of Animal Spirits. Keynes, above all economists, understood the role that expectations play in determining employment and, were he to consider our predicament, he may well question the efficacy of Keynesian stimulus. He would likely lead the search for other approaches, for, as he famously replied to an interviewer questioning the constancy of his views "When the fact change, I change my mind. What do you do, sir?". [1] Mr. Keynes and the Classics, Econometrica, April 1937, [2] IS-LM – an Explanation, Journal of Post-Keynesian Economics, Winter 1980-1 Posted by Dan Aronoff, via the The Sceptical Market Observer
| ||
| Posted: 22 Aug 2011 02:03 PM PDT Filed under: austerity, bullion traders, Buy Gold, Buy Silver, COMEX, commodity futures contracts, commodity futures trading, commodity trades, currency coins, federal reserve chairman ben bernanke, federal reserve system, Global finance, global financial crisis, gold bullion, gold price, international monetary system, jp morgan chase, market crash, price of gold, Recession, silver dollar coins, silver futures, Stock [...] 
This posting includes an audio/video/photo media file: Download Now | ||
| Japanese PM Naoto Kan Is Out August 30 Posted: 22 Aug 2011 01:53 PM PDT The latest update in this news-heavy night is that Japan's unpopular Prime Minister is out, after tellng his cabinet ministers that they have about one more week before packing up and looking for new jobs. As Reuters reports "The ruling Democratic Party of Japan is planning to pick a new leader on Aug. 29, setting the stage for parliamentary confirmation of a new premier and the selection of a new cabinet." We hope for the sake of the G7 that there is no massive crisis in the next 10 days, as a leaderless Japan will hardly provide confidence that any crisis can be circumvented. As for the Yen, it is hardly troubled and at last check was trading at 76.75 to the dollar. Not an all time record... but pretty close. From Reuters:
| ||
| Did the Fed Buy the Market to Stop the Collapse? Posted: 22 Aug 2011 01:51 PM PDT Now that the market has rolled over and erased most of the gains from last week, I can't help but wonder just why the market rallied at all. True, it was oversold… but the FOMC announcement wasn't exactly bullish (Seriously… ZIRP for another year was reason for an 8% rally in four days?).
I found it interesting that the New York Post published a story containing the following quote just 3 hours before the post-FOMC market ramp job started.
Back in October 1989, a guy named Robert Heller, who had just quit his post as a Fed governor, suggested that the government should purchase stock index futures contracts to calm the markets in times of distress.
"The Fed could support the stock market directly by buying market averages in the futures market, thus stabilizing the market as a whole," Heller wrote in an op-ed piece in The Wall Street Journal after saying the same thing in a little-noticed speech. "The stock market is certainly not too big for the Fed to handle."…
This is a rather odd turn of events… a former Fed official urges the Fed to step in and buy the stock market… just three hours before the markets mysteriously reverses and rallies hard on no real news of note.
This begs the question… did the Fed buy the market to put a floor under the collapse? There's no telling for sure. But it's rather odd that this article came out just three hours before the market magically reversed and exploded higher
If the Fed did actively buy the stock market to try and put a floor under it, we can assume three things:
1) The Fed is becoming truly desperate 2) The Fed realizes QE isn't helping 3) QE 3, if it arrives, will be coming later down the line
If the Fed did in fact buy the market two weeks ago, then the Fed is getting extremely desperate. We know the Fed has been supplying juice to key Wall Steet firms who then bought the market, but never before has it been so obvious that the Fed itself may have been buying the market.
Remember since March 2009, QE has been the primary tool the Fed used to deal with the Financial Crisis. QE 1 was something of a success in that in restored investor confidence in the system. However, as I've noted in previous articles, by the time we got to QE 2, the negative consequences of QE (inflation) far outweighed the positive consequences (stocks rising).
So the fact the Fed did not announce QE 3 two weeks ago but chose to buy the market (at least it looks that way), indicates then we're are DEFCON 1 RED ALERT for the entire financial system as it indicates that the Fed is abandoning its more traditional monetary tools and simply trying to buy the market it means the Fed is losing control of the system in a big way.
It also indicates that the Fed realizes that the benefits of QE come at too high of a cost for it to engage in more of this for now. Instead, the Fed will save QE 3 for a little further down the road as a final Hail Mary pass.
Which brings me to the most important point from yesterday's Fed FOMC: there were three dissenting votes (an 18 year high). This tells us that Bernanke's "inflate or bust" mentality is coming up against serious friction at the Fed. And it also tells us that there will be fierce resistance to QE 3 if the Fed chooses to unveil it down the road.
The take home point here is that the Fed is not as market friendly as before. There is growing dissent amongst Fed officials. And we're beginning to see signs of desperation.
In plain terms, the situation in the markets right now is very VERY dangerous. It is easily the most dangerous market I've ever seen. We are going to see greater losses and sharp rallies. But the overall trend is now down.
I warned to get defensive several weeks ago. That warning is even more important now. Many people will lose everything in this mess. Yes, everything. However, you don't have to be one of them. Indeed, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.
Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).
Best of all, this report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.
Good Investing!
Graham Summers
PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it's my proprietary Crash Indicator which has caught every crash in the last 25 years or the best most profitable strategy for individual investors looking to profit from the upcoming US Debt Default, my reports covers it.
And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com.
| ||
| Indian Gold Imports May Reach Record 1,000 Tons as Investment Demand Rises Posted: 22 Aug 2011 01:45 PM PDT By Swansy Afonso – Aug 20, 2011 2:19 AM ET Sat Aug 20 06:19:28 GMT 2011 Gold imports by India, the world's biggest consumer, may reach a record this year as investors seek a haven against inflation and volatility in stock markets, a traders' group said. Imports may be between 950 metric tons and 1,000 tons [...] 
This posting includes an audio/video/photo media file: Download Now | ||
| Posted: 22 Aug 2011 01:14 PM PDT As gold has soared close to $1,900 an ounce on market turmoil in recent weeks, the SPDR Gold Shares exchange traded fund GLD, has passed the SPDR S&P 500 SPY to become the largest ETF measured by net assets. Net assets in the gold fund Friday were $76.7 billion vs. $74.4 billion in the S&P [...]
| ||
| Is Another Big Bank Collapse Brewing? Posted: 22 Aug 2011 01:12 PM PDT Courtesy of goldentruth.com Take a look at the financials today. The BKX bank stock index initially spiked higher with the Dow/SPX and has since faded into negative territory today. Almost every big bank stock that I track is red. Bank of America stock opened briefly to the plus side and is now down over 6%. [...] 
This posting includes an audio/video/photo media file: Download Now | ||
| Posted: 22 Aug 2011 12:46 PM PDT Gold has hit new records when it comes to price and the president of Venezuela, Hugo Chavez, has decided to cash out. Chavez is asking the US, Britain and Switzerland to give him his $11 billion in gold reserves. What does this mean and why should we care? Adrian Salbuchi, author and researcher, gives us some insight on the decision made by Chavez.
| ||
| Gerald Celente: Gold is the Wisest Asset Posted: 22 Aug 2011 12:45 PM PDT | ||
| James Turk interviews Ben Davies during GATA's London conference Posted: 22 Aug 2011 12:23 PM PDT 8:25p ET Monday, August 22, 2011 Dear Friend of GATA and Gold: GoldMoney founder James Turk and Hinde Capital CEO Ben Davies, both speakers at GATA's Gold Rush 2011 conference in London this month, used an intermission to discuss the imbalances of the world financial system, gold's prospects, central bank intervention to weaken currencies, the likelihood of a von Mises-style "crack-up boom," and a lot more. The interview is 37 minutes long and you can watch it at the GoldMoney Internet site here: http://www.goldmoney.com/video/davies-turk-interview.html CHRIS POWELL, Secretary/Treasurer 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: 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_...
| ||
| Peter Schiff: When Silver Breaks $50 Shorts to Propel it to $75-$100 Posted: 22 Aug 2011 11:48 AM PDT from King World News:
They were criticizing him for owning all of these gold stocks. They showed his top ten holdings and they were all gold stocks, gold and silver stocks. They impugned his patriotism, his integrity. They said the reason Ron Paul was voting not to increase the debt ceiling was because he wanted to help his gold stocks, when of course, if the debt ceiling had not been raised the gold stocks would have gone down." Schiff continues: Read More @ KingWorldNews.com
| ||
| FED Handed Out $1.2 Trillion to Wall Street Aristocracy Posted: 22 Aug 2011 11:31 AM PDT Lately many investors have found refuge in investing in gold. With the decline of the US dollar on a global scale many Americans are speculating where is their money the safest? Should American citizens have confidence in the US stock market? Max Fraad Wolff, economist for the New School, tells us when and in what to invest in.
| ||
| Gold Reaches Elliott Channel – Probability of Correction Increased Posted: 22 Aug 2011 11:20 AM PDT courtesy of DailyFX.com August 22, 2011 09:48 AM 300 Minute Bars Prepared by Jamie Saettele, CMT “Analyzing structure from the July low suggests that a series of 4th and 5th waves should unfold. In other words, gold is headed higher but with corrections along the way. The latest correction ended just before the former 4th wave extreme at 1720 and price is expected to reach a new high before the next 4th wave begins. Look higher.” Gold has reached its Elliott channel therefore the 4th wave correction may begin soon. Support comes in at 1815/40. FXCM Expo Registration Trend Strength (M,W,D) – 3, 3, 3 Latest Video Weekly Forecast COT Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Monday), technical analysis of currency crosseson Wednesday and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forex Stream. A graduate of Bucknell University, he holds the C...
| ||
| Ennio Morricone – Ecstasy of Gold Posted: 22 Aug 2011 11:03 AM PDT
| ||
| Gold Price Cracks $1,900: New Record on Safe-Haven Buying Posted: 22 Aug 2011 10:43 AM PDT August 22 (International Business Times) — Gold ripped past $1,900 Monday to a new record, the upshot of enough fears about global wealth-destroying developments to erase any doubts that the world's oldest safe-haven investment remains the world's No. 1 safe-haven investment. Gold for December delivery, the most active contract traded on the CME Comex division of the New York Mercantile Exchange, hit $1,900.70 per ounce in electronic trading, up from Friday's closing price of $1,852.20. Gold is now up 33 percent this year and has been in a bull market run for more than a decade. [source] PG View: Spot gold has extended to a new all-time high in late trading at 1911.50.
| ||
| The Neverending Story of a “Gold Bubble” Posted: 22 Aug 2011 10:27 AM PDT Gold continued to make headlines last week, reaching nearly $1,900 an ounce on Friday before resting around the $1,850 level. Gold's 15 percent rise to new nominal highs over the past month has rekindled "gold bubble" talk from many pundits. Long-term gold bulls have been forced to listen to these naysayers since gold reached $500 an ounce. If you would have joined their groupthink then, you would've missed gold's roughly 270 percent rise since. That said, gold is due for a correction. It would be a non-event to see a 10 percent drop in gold. This would actually be a healthy development for markets by shaking out the short-term speculators while the long-term story remains on solid ground. Forty years ago this week, President Richard Nixon "closed the gold window," ending the gold-backed global monetary system established at the Bretton Woods Conference in 1944 and kicking off a decade of stagflation for the U.S. economy. At the time, $1 would buy 1/35th an ounce of gold. Today, $1 will net you about 1/1,178th an ounce of gold. Put differently, "One U.S. dollar now buys only 2 cents worth of the gold it could buy in 1971," says Gold Stock Analyst. This means that consumers have lost roughly 98 percent of their purchasing power compared to gold over the past 40 years. The U.S. dollar isn't the only asset gold has outperformed during recent decades. The yellow metal has also seen periods of relative strength against the S&P 500. This chart from Gold Stock Analyst pits the performance of gold bullion against the S&P 500 since 1971—you can see that gold immediately rallied following Nixon's announcement before peaking at $850 an ounce in 1980. At that price, one ounce of gold was 7.6 times greater than the S&P 500, according to Gold Stock Analyst. Gold's relative performance then declined for the next 20 years, with the S&P 500 taking the lead in 1992 and peaking at 5.3 times the value of gold in 1999. Currently, gold's value is roughly 1.6 times greater than the S&P 500.
Gold Stock Analyst points out that Federal Reserve Chairman Paul Volcker began steering the U.S. economy toward positive real interest rates in 1980 and Volcker's goal was met in 1992—the same year the S&P 500 overtook gold. In order for gold's relative value to return to 1979-1980 peak levels of 7.6 times the S&P 500, Gold Stock Analyst's John Doody says gold prices would have to hit the $10,000 mark. Obviously that scenario is unlikely, but it does put all this "gold bubble" nonsense into perspective. One point to pop the "gold bubble" talk is that negative real interest rates are poised to stick around for a while. We've previously discussed that negative real interest rates—one of the main drivers of the Fear Trade—have historically been a miracle elixir for higher gold prices. The magic number for real interest rates is 2 percent. That's when you can earn more than 2 percent on a U.S. Treasury bill after discounting for inflation. Our research has shown that commodities tend to perform well when rates fall below 2 percent. Take gold and silver, for example, which have historically appreciated when the real interest rate dips below 2 percent. Additionally, the lower real interest rates drop, the stronger the returns tend to be for gold. On the other hand, once real interest rates rise above the 2 percent mark, you start to see negative year-over-year returns for both gold and silver. It's important to point out that it's the political policies not political parties that drive this phenomenon. During the 1990s, when President Clinton was in office, there was a budget surplus and investors could earn more on Treasury bills (about 3 percent) than the inflationary rate (about 2). This gave investors little incentive to embrace commodities such as gold, and prices hovered around $250 an ounce.
Today, the Fed capped interest rates near zero back in 2008 and the federal budget deficit has ballooned to $1.4 trillion. In fact, both the deficit as a percentage of GDP (negative 11 percent) and federal government debt as a percentage of GDP (nearly 65 percent) are at the highest levels since 1950, Citigroup research shows. This has helped fuel gold's rise through $1,000, $1,500 and now $1,800 an ounce. This is only one side of gold's long-term story. Another point to pop the "gold bubble" talk is that we're entering what has historically been gold's strongest period of the year in terms of demand. In the past, gold prices have bottomed in August but recently gold's strong seasonal period has extended into the dog days of summer as the holy Muslim holiday of Ramadan moves forward on the calendar by 10 days each year. This year Ramadan began August 1. In its latest Gold Demand Trends report, the World Gold Council (WGC) confirmed that the Love Trade is burning bright in Asia. The WGC council said Chinese and Indian buyers continue to be the "predominant drivers" of gold demand, accounting for "52 percent of bars and coins and 55 percent of jewelry demand." China's demand grew 25 percent, while India saw an increase of 38 percent. WGC attributes this growth to "increasing levels of economic prosperity, high levels of inflation and forthcoming key gold purchasing festivals." But China and India aren't the only emerging markets feeling the love for gold. Vietnam, Indonesia, South Korea and Thailand – labeled by the WGC as the "VIST" countries – are additional key gold-consuming countries. The WGC's chart below shows a potential opportunity in increased demand for gold, especially in jewelry, in the VIST countries. In 2010, demand rose to 253 tons after a sharp drop in 2009. Jewelry demand, however, was historically low while investment demand grew considerably.
This strong tie to gold means that, as wealth among residents of Vietnam, Indonesia, South Korea and Thailand increases, price is less of a consideration, and gold will continue to be at the top of their shopping lists. At some point in the future gold prices will fall, that's for certain. However, don't expect it to happen soon. We believe the one-two punch of the Fear Trade and Love Trade will keep gold prices at elevated levels for another few years. Regards, Frank Holmes, P.S. For more updates on global investing from me and the U.S. Global Investors team, visit my investment blog, Frank Talk. The Neverending Story of a "Gold Bubble" originally appeared in the Daily Reckoning. The Daily Reckoning provides 400,000+ readers economic news, market analysis, and contrarian investment ideas. Follow the Daily Reckoning on Facebook.
| ||
| Gold Soars As Trading Reopens, Hits $88 Away from $2000 Posted: 22 Aug 2011 10:24 AM PDT We may have been pessimistic with our assumption that gold would reach $2000 in under a week. At the rate it is going, it may get there tonight: upon reopening, gold immediately soared from just south of $1900, to a new all time higher of $1912 as pent up buying interest took out every offer in the market. This time around silver is not far behind and after many were staunchly pushing shorts around the $44 price, the metal also snapped above the $44 barrier. The only question we have is whether the CME will hike margins before or after gold touches $2000. Since the stop loss orders there are likely quite aggressive, we hope our Comex friends would push gold a little lower before it takes off for its next target 5-digit target. Incidentally, those who are long spam and short gold may want to consider unwinding that trade at this point. Gold:
Silver:
| ||
| Posted: 22 Aug 2011 10:19 AM PDT | ||
| Is Resource Nationalism on the Rise? Posted: 22 Aug 2011 10:00 AM PDT Author: Vedran Vuk Synopsis: Signs suggest that resource nationalism is on the rise, especially with gold and silver seeing price increases. How far the trend may spread and what the damage might be remain to be seen. Also in today's issue: space aliens can save the U.S. economy! Dear Reader, You know that it's been a tough time in the markets when it's a relief to see hurricane news on Bloomberg's front page. I don't mean to underplay the severity of the danger posed to Florida, but things have been literally that bad in the economy worldwide. With at least a Category 3 hurricane blowing through the markets lately, there has been only one place for safe anchor: gold. At first, the yellow stuff was acting like a flight to safety. As the market dipped, it gained; and when the market surged forward again, gold retreated. However, the market is breaking t...
| ||
| You’re Gonna Need MORE Than Gold… Posted: 22 Aug 2011 09:27 AM PDT Everyday more and more people are waking up to the idea that they MUST own gold if they want to protect their assets from an out of control government. Owning gold is a great first step, but as history tells us, responsible people can and should do more before it's too late… History paints a bleak picture of the decline of Rome. Once warring consuls Antony, Lepidus, and Octavian were finished duking it out with each other in 31 BC, any semblance of the original Roman republic was gone forever. Successive emperors of Rome included men like Tiberius, a paranoid deviant with a lust for executions. He spent the last decade of his reign completely detached from Rome, living in Capri. Following Tiberius was Caligula, infamous for his moral depravity and insanity. According to Roman historians Suetonius and Cassius Dio, Tiberius would send his legions on pointless marches and turned his palace into a bordello of such repute that it inspired the 1979 porno film named for him. Caligula was followed by Claudius, a stammering, slobbering, confused man as described by his contemporaries. Then there was Nero, who not only managed to burn down his city but was also the first emperor to debase the value of Rome's currency. You know the rest of the story – Romans watched their leadership and country get worse and worse. All along the way, there were two types of people: the first group were folks that figured, "This has GOT to be the bottom, it can only get better from here." Their patriotism was rewarded with reduced civil liberties, higher taxes, insane despots, and a polluted currency. The other group consisted of people who looked at the warning signs and thought, "I have to get out of here." They followed their instincts and moved on to other places where they could build their lives, survive, and prosper. You're reading this because you probably fall into the latter category. You're aware of the problems. You can feel your civil liberties and economic opportunities slowly slipping away, all while the crop of national leadership grows more depraved with every election cycle. You want to do something about it. You want to take steps to protect yourself, your family, and your livelihood. Perhaps you've already started by investing in precious metals. Gold is a great hedge against inflation, political turmoil, and default – things I call "sovereign risk." You see, some of the world's largest governments are going broke, and these politicians will take any steps necessary in order to maintain the status quo: they will lie, they will steal, they will declare wars, they will bankrupt their people with hyperinflation… whatever it takes. This is the greatest risk we face today. Buying gold is a great start, but there is MUCH more that you can do. I'm an advocate of what I call planting 'multiple flags.' At its core, planting multiple flags means that you are diversifying your sovereign risk around the globe so that no single government has total control over your livelihood. Let me explain. Let's say you are from the US. If you live, work, bank, invest, register your business, own your property, store your gold, etc. within the US, and one little thing goes wrong, all of those assets and interests are at substantial risk. Any judge or bureaucrat could make them all disappear with a few mouse clicks. It needn't even be anything big. Maybe some three-letter agency suspects you of wrongdoing. Maybe your neighbor wants to sue you. Maybe they outlaw gold ownership (again). There are infinite possibilities, and infinite risks. When you plant multiple flags, you diversify those assets around the globe. Store your gold in Switzerland. Open a bank account in Hong Kong. Register your company in Singapore. Establish an emergency 'backup' residency in Chile. You can plant flags with just about any interest in your life – where you go to get high quality, cost effective medical care, where you set up your web servers for an online business, where you establish an international brokerage account, etc. This approach is NOT just for the super rich. In fact, I've helped all kinds of people to plant their own flags, young and old, rich and poor. Taking some simple steps to protect yourself will give you extraordinary peace of mind. You'll know that, without doubt, you have some savings socked away that NOBODY can touch. You'll know that you have a solid emergency backup plan. You'll know that everything you've worked for won't vanish in an instant. You're Gonna Need MORE Than Gold… originally appeared in the Daily Reckoning. The Daily Reckoning provides 400,000+ readers economic news, market analysis, and contrarian investment ideas. Follow the Daily Reckoning on Facebook.
| ||
| The Devil Is In The Details...Speaking Of The Devil (per my earlier post) Posted: 22 Aug 2011 08:57 AM PDT "Nobody lawyers up like this unless they are in deep shit" - my anonymous Wall Street source There's no honor among thieves and when rats are trapped in the corner, they fight back. Lloyd Blankfein just removed from "services available" one of the best DC-insider-connected defense attorneys, indicating some real shit could be hitting the fan at Goldman Sachs. This particular lawyer - who must be a serious piece of work if he's willing to prostitute his services defending servants of the devil - worked out deals for some real beauts: Bernie Ebbers of WorldCom, Enron's chief accountant and Roman Polanski. The speculation ranges from Justice Department inquiries into Goldman's highly fraudulent role in the mortgage market meltdown to likelihood that Blankfein and Goldman are both under heavy legal siege on both the civil and criminal fronts. Goldman stock plunged another 2.5% after the close, when that news report was released (conveniently) and is down roughly 40% year-to-date. Not only that, but an analyst report on Bank of America was circulated today that speculated that BAC needs to raise $40-50 billion in capital to remain solvent. If that report has merit, it will be interesting to see how BAC pulls that off because it's current market cap is around $65 billion. Short of Obama borrowing from Michelle's travel fund and using Taxpayer largess to fund BAC, I don't see smart money lending that kind of jake to BAC unless it were on a "super" senior secured DIP basis - Debtor-In-Possession bankruptcy financing. The above two events are marquee indicators of the disaster coming our way from the financial system... 
|
With gold trading above $1,890 and silver near the $44 level, today King World News interviewed Peter Schiff, CEO of Europacific Capital to get his take on where gold and silver are headed. Before we get to his thoughts on the metals, here is what Schiff had to say about the Barron's hatchet job on Ron Paul, "I thought it was interesting that critique, I don't want to call it an article, of Ron Paul in Barron's.
What drove gold's relative underperformance from 1980 to 1999? It was a shift in government policies, which have historically been precursors to change—a key tenet of our investment process here at U.S. Global Investors.
Since 2001, increased regulation in all aspects of life, negative real interest rates, welfare and entitlement expansion funded with increased deficit spending have created an imbalance in America's economic system. It's this disequilibrium between fiscal and monetary policies that drives gold to outperform in a country's currency.
Similar to China and India, the VIST countries have had a 2,000-year long relationship with gold which is intertwined in their culture, religion and economy. Jewelry and investment demand are one and the same, says the WGC: "The demand for gold as a store or accumulator of wealth, as an auspicious gift or as insurance against unforeseen risks, is to a large extent independent of the form it takes."
| 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 |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment