Gold World News Flash |
- Market Update for 26 August 2011
- Pyramid of Capital System – Where are we in it?
- More billion dollar AGW disasters this year than ever before
- Peter Schiff: Dollar Crisis to Intensify Gold & Silver Demand
- Minor Raid on Silver and Gold / Huge Problems With French Bank Societe Generale
- Gold Seeker Closing Report: Gold and Silver End Slightly Lower
- Silver Update: “Silver Event Horizon” August 29th, 2011
- Operation False Flag: A Modern Primer
- A Dispirited Fed Chairman Emerges From Jackson Hole
- GoldMoney's Turk interviews investor in Pan Asia Gold Exchange
- Hide Your Liberty Dollars, The Secret Service Is Coming!
- There Is No Bubble in Gold
- Treasure Chest 2 – Game Changer
- Gold: The Big Picture
- Stop! Put Down the Gold and Walk Away
- Gold Stocks Inch Closer to Major Breakout
- I won't show you mine if you won't show me yours
- Part 2 of Resource Clips interview with GATA Chairman Bill Murphy
- I'm Personally Pursuing Some of the Greatest Values I've Ever Seen
- How The Economy Quietly Entered A Recession On Friday, And Why The GDP Predicts A Sub-Zero Nonfarm Payroll Number
- Strong Pockets are Ready to Buy Gold Anywhere Under $1,750
- Max receives some chocolate gold!
- Soaring Gold Prices Bring Cheers, But in India, Tears Too
- Gold Rallies the Youth Vote
- Silver May Be Better Bet Than Gold
- FLASHBACK: The Silver Perspective
- Peter Schiff - Dollar Crisis to Intensify Gold & Silver Demand
- “The next big move is going to be huge and it’s going to be up.”
- Gold Daily and Silver Weekly Charts
- Record Prices Spawn New Wave of China Gold Bugs
| Market Update for 26 August 2011 Posted: 29 Aug 2011 05:45 PM PDT Mark J. Lundeen [EMAIL="Mlundeen2@Comcast.net"]Mlundeen2@Comcast.net[/EMAIL] 26 August 2011 What a week for the markets! Gold and silver reversed their down trends while the Dow Jones' bear market indicators continue waving their red flags. Let's first take a look at gold and silver. Gold has been remarkable, as we clearly see in its Bear's Eye View Charts (BEV Charts). The Bear's Eye View is based on percentage declines from a data series' Last All-Time Closing Highs. The formula used in the BEV plots below looks like this. (Data Point / Last All-Time High)-1 This formula converts each all-time high (BEV Zero) in the series into a Zero% (never more), and expresses all other values * not * a new all-time high as a precise negative percentage * from * its last all-time high. The BEV chart provides a unique insight into a market, one that looks at the market the way Mr. Bear does: how large a percentage of the bulls' gains he can claw back from them. This bein...
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| Pyramid of Capital System – Where are we in it? Posted: 29 Aug 2011 05:34 PM PDT This poster hangs in the office of a Nobel Prize winning economist. Filed under: austerity, Bank of America, bullion traders, Buy Gold, Buy Silver, Capitalism, commodity futures contracts, commodity futures trading, Corrupt government, currency systems, Economic crisis, european market turmoil, Eurozone, federal reserve chairman ben bernanke, federal reserve system, financial turmoil, french banks, futures market, [...] 
This posting includes an audio/video/photo media file: Download Now |
| More billion dollar AGW disasters this year than ever before Posted: 29 Aug 2011 04:27 PM PDT Bill McKibben: Will Hurricane Irene Be a Wake-Up Call about Climate Change?
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| Peter Schiff: Dollar Crisis to Intensify Gold & Silver Demand Posted: 29 Aug 2011 04:08 PM PDT from King World News:
Peter Schiff continues: Read More @ KingWorldNews.com
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| Minor Raid on Silver and Gold / Huge Problems With French Bank Societe Generale Posted: 29 Aug 2011 04:01 PM PDT by Harvey Organ, Good evening Ladies and Gentlemen: It has been the custom of the bankers, these past several months, to whack gold and silver following expiration of options of the gold and silver contracts. The reason of course is to try and discourage the owners of these options from putting up the 100% of the contract price and taking delivery. It never ceases to amaze me the childish games these doorknobs are playing. The price of gold finished the comex session today at $1788.40 for a loss of $5.90. The price of silver lost 41 cents to $40.54. Let us head over to the comex and assess the damage today. The total gold comex OI fell by a huge 9957 contracts with gold skyrocketing in regular hours and zooming to $1820.00 in the access market. The final registered OI rests at 504,668. The bankers must have covered many shorts as they were scared the resistance level of $1800 gold would not hold. They panicked. Read More @ HarveyOrgan.Blogspot.com
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| Gold Seeker Closing Report: Gold and Silver End Slightly Lower Posted: 29 Aug 2011 04:00 PM PDT Gold rose over $30 in afterhours access trade on Friday and held over 1% higher in Asia today before it fell in early New York trade to as low as $1778.78 by about 10:15 AM EST, but it then bounced back higher in the last few hours of trade and ended with a loss of just 0.36%. Silver dropped to as low as $40.415 before it also rebounded, but it still ended with a loss of 1.12%.
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| Silver Update: “Silver Event Horizon” August 29th, 2011 Posted: 29 Aug 2011 03:50 PM PDT |
| Operation False Flag: A Modern Primer Posted: 29 Aug 2011 03:49 PM PDT by our good friend Silver Shield
Definition: When governments or organizations (usually connected to the former) stage highly sophisticated attacks on their own or foreign soil with the purpose of placing the blame on a desirable enemy foreign or domestic, one who has otherwise done no wrong. Essentially a setup, it provides the government entity with an excuse via fabricated evidence in complicity with media to fulfill its various agendas (i.e. war or law making). As false flag operations gain further ground and frequency, the better you know their history, the sooner you can recognize when they are about to happen or as they occur. It is a fact that essentially every single war since the Spanish-American War of 1898 has included the use of a false flag operation as an excuse to enter into conflict. The lies have become uncovered after the fact, too late to prevent mass death and destruction. As practically the only anti-war candidate, Ron Paul recently pointed out such a fact to the other puppet candidates during a debate. The other candidates are heartily calling for World War III which could possibly destroy the planet by dressing up an Iranian invasion, whereas Paul points out that the Iraq war (which has massacred over one million Iraqis) was based on an utter and complete fabricated lie. Obviously, upon discovery of such a lie, the only logical conclusion would be to end the war and persecute the liars. However, the true controllers of this media-complicit false flag operation merely replaced the lie with another more pliable excuse to fool the fluoride-head public, such as the Truman-Johnson-Bush-Clinton-Bush-Obama-(Clinton) Doctrine of "spreading freedom and democracy" to countries fighting against communism, I mean, terrorism.
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| A Dispirited Fed Chairman Emerges From Jackson Hole Posted: 29 Aug 2011 03:48 PM PDT This article originally appeared in the Daily Capitalist.
A thoroughly chastened and discouraged Fed Chairman Ben Bernanke gave his annual speech last Friday at the Fed conference in Jackson Hole, Wyoming. After reading this year's speech, and then re-reading last year's speech, I found his tone gloomy and dispirited. This is a far cry from the younger, more confident Ben Bernanke who in 2002 told Milton Friedman at his 90th birthday party that Milton was right about the Fed causing the Great Depression and "we won't do it again." Of course Milton was right about the Fed but for the wrong reasons, which could be part of our problem. If you have followed Bernanke's speeches over the years, at least since the Crash of '08, you will get a flavor of the man. Like all Chairman his tone has to be sober, reservedly confident, and in control. Unlike The Oracle, Chairman Alan Greenspan, who gave little clarity or direction at all, Dr. Bernanke has tried to be more "transparent" in communicating Fed policies. It is my impression that while he has tried to exude confidence, he is now clearly discouraged. As well he should, since none of the Fed's "suite of tools" have worked as intended and almost every forecast the Fed has given since the Crash has been wrong. This malaise seems to have infected the leaders of other central banks as well as they convened with the Chairman last weekend. Perhaps there is something in the air at Jackson Hole. Dr. Bernanke is always quick to remind us that the actions of the Fed were responsible for saving the world and averting disaster at the critical moment during the "Panic." It got him on the cover of Time. The only problem is that he has no way to prove that. The few papers I have seen on the topic (Blinder& Zandi; Brave and Genay; Gagnon, Raskin, Remache & Sack) have not been very convincing. Of course our own David Stockman has plenty to say about that topic (here and here). If we even give him that point for the sake of argument, then nothing since then has worked. It's got to be discouraging for him. This latest speech is Exhibit No. 1.; he announces basically nothing new. It is what he didn't announce that was significant, much to the regret of an anxious Wall Street. What has changed is his tone. Here are some quotes I picked out of this year's and last year's Jackson Hole speeches to give a comparison in his tone and outlook. I don't think I'm cherry-picking comments, but these quotes do illustrate my point:
I will let you go back and read all the forecasts made last year that were wrong, but here is an example: "Despite the weaker data seen recently, the preconditions for a pickup in growth in 2011 appear to remain in place." I need not remind you that industrial production has fallen for the past 13 months. Also recall that the big fear last year was deflation and Dr. Bernanke opened the door to QE2. Their one "triumph" over the year: they licked the deflation thing – July 2011 CPI +3.6% and PPI +7.2%. This year Dr. Bernanke expressed the Fed's dismay for so badly misjudging the economy and the forces behind our boom and bust: "we have learned that the recession was even deeper and the recovery even weaker than we had thought." That kind of misjudgment is what destroy economies. It gets worse though. The Fed has long maintained, and Dr. Bernanke reiterates it in this speech, that the cause of the recession was the financial "meltdown." That is akin to saying the sickness of our patient is due to the fever rather than its cause. The Fed as an institution has no clue why we have economic malaise. If it did perhaps there is something they could do to help us recover. What caused our recession/depression is the Fed itself. By manipulating the money supply they create cycles that lead to false booms based on money steroids, and we go bust when the money drug is withdrawn. The result is a huge supply of things people don't want (this time, houses and commercial real estate) and the burden of debt. This is the Forever history of the boom-bust cycle. This is something the Austrians figured out a long time ago (Mises, Theory of Money and Credit, 1912). Yet Dr. Bernanke, after all the Fed's failures, says ingenuously:
Ignore for the moment that this sounds exactly like central economic planning. This statement is exactly the opposite of what they are achieving. Here though, is the frustrating part for Dr. Bernanke personally:
I would like to think this is a revelation by Dr. Bernanke, leading him to question his econometric neo-Keynesian-Monetarism, but instead he has concluded that "economics" just doesn't work this time. He acknowledges that "normally" economies can recover by themselves, which they do. He is puzzled though why this "virtuous circle" of restoration is not occurring now. It is "unusual" he says. It is unusual if you don't understand why it's happening. The rest of his speech is devoted to chastising our politicians for being fiscally irresponsible. We are witnessing the failure of contemporary economics on a grand scale. These policies are being played out on the worldwide stage much to the same result. Europe is experiencing a culmination of years of failed policies. What concerns me greatly is the next step. It doesn't look likely that the Fed will embrace Austrian theory economics. Instead they will try the same things again. ZIRP has been continued to 2013. Perhaps the Fed will reduce interest on excess reserves, or not pay interest at all, in order to encourage banks to lend. Perhaps it will pursue "Operation New Twist" and roll its portfolio over into even longer term maturities. Perhaps it will reduce bank reserve requirements temporarily (assuming it could get by Dodd-Frank and Basel III). Then there is QE3, more monetary stimulus through direct injections of cash into the financial markets. If there is one thing that Dr. Bernanke believes in it is his Monetarist view of the Great Depression. That view says the Fed caused the depression because it reduced money supply which dried up credit. The other view that Dr. Bernanke believes, a neo-Keynesian view, is that by pushing money into the economy in times of a "liquidity trap" people will spend the money, stimulate new economic activity, and thus, a recovery. Dr. Bernanke understands that QE is a last option monetary weapon and that it should not be overused, lest "inflation" get out of hand. Presently, in the view of the Fed, "inflation" has been moderate. Thus there should be no great harm from a bit more "inflation" since quantitative easing will stimulate growth. By this reasoning there is no reason to not do more quantitative easing. The next step after "dispirited" is desperation. It is our belief that the economy will continue to stagnate with creeping price inflation. It is difficult to predict how long this period will continue, but we look to things like industrial production, manufacturing, money and credit, and the real estate markets to give us an indication of the path of economic growth. Presently these indicators are negative in our book; the economic forces that would allow recovery are moving too slowly. What this means is that during the presidential election cycle, politically sensitive economic indicators such as unemployment will remain negative. This will result in a lot of pressure on the Fed and Dr. Bernanke to "do something." Like all former Fed Chairmen, it will be hard for Dr. Bernanke to resist these calls from politicians. He will earn his moniker as "Helicopter Ben" and unleash more quantitative easing, a dangerous and regressive policy. Like most drugs it becomes less effective over time. It will further destroy real capital and delay recovery.
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| GoldMoney's Turk interviews investor in Pan Asia Gold Exchange Posted: 29 Aug 2011 03:39 PM PDT 11:36p ET Monday, August 29, 2011 Dear Friend of GATA and Gold: The new Pan Asia Gold Exchange and its potential to affect gold trading worldwide are the subjects in GoldMoney founder James Turk's interview with an investor in the exchange, Richard Poulden, director of Power Capital Financial Trading. The interview took place during GATA's Gold Rush 2011 conference in London on August 5. It's a little more than six minutes long and you can watch it at the GoldMoney Internet site here: http://www.goldmoney.com/video/poulden-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: http://www.gata.org/node/16 ADVERTISEMENT Prophecy Platinum Drills 49.5 Meters Grading 1.27 g/t PGM+Au at Yukon Wellgreen Project Company Press Release Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces results from its 2011 drilling program for its first completed hole on the Wellgreen Project in the Yukon Territory, Canada. Borehole WS11-184 encountered 472.6 meters of mineralization grading 0.43% The geology transitioned from blebby disseminated to net-textured to massive sulphide approaching the footwall contact grading 6.3% nickel, 1.7% copper, 2.7 grams per ton platinum, 1.6 grams per ton palladium, 0.17 grams per ton gold, and 3.4 grams per ton silver. The drilling zones and results are tabulated here, with more information: http://www.prophecyplat.com/news_2011_aug22_prophecy_platinum_wellgreen_...
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| Hide Your Liberty Dollars, The Secret Service Is Coming! Posted: 29 Aug 2011 03:21 PM PDT by our good friend Mac Salvo
You may remember Bernard von NotHaus, purveyor of the gold/silver backed "Liberty Dollar," who was convicted of making, possessing, and selling his own coins, as well as conspiracy against the United States. The lead attorney on the case made it a point to refer to Mr. NotHaus' dealing as a special form of domestic terrorism. Since the coins NotHaus was selling have been deemed to violate Federal counterfeiting statutes, they are now considered contraband by the US Attorney and Secret Service. Coin World explains:
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| Posted: 29 Aug 2011 02:26 PM PDT Dear Extended Family, As the volatility of gold rises, a two day $200 reaction should not be considered anything out of the ordinary. A hard sideways chop is the present scenario. There is no top in gold. There is no bubble in gold. Truth be known, what will vault the price of gold Continue reading There Is No Bubble in Gold
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| Treasure Chest 2 – Game Changer Posted: 29 Aug 2011 02:18 PM PDT Thank you to everyone who donated in support of continuing this blog for a fourth year! Donations were rolling in last Tuesday pretty much on par with my other two fundraisers. But then on Wednesday, with the $100 plunge in the price of paper promises of future gold, the flow of donations pretty much dropped off a cliff. So I'd also like to thank the CME for messing up my fundraiser. Thanks
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| Posted: 29 Aug 2011 02:01 PM PDT With gold having 'gone parabolic' in the weeks leading up to this week's top, the question arises as to whether or not gold's long-term bull market has ended. After all, upside blow-offs usually occur during the final phases of major rallies. Read More...
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| Stop! Put Down the Gold and Walk Away Posted: 29 Aug 2011 01:14 PM PDT from The Daily Bell: FINRA Warns Investors To Avoid Gold Stock Scams … The rise in gold prices and interest in the metal and the mining industry has also produced its share of scams, warns the Financial Industry Regulatory Authority, known as FINRA. FINRA is calling its latest investor alert "'Gold' Stocks – Some Investments Mine Your Pocketbooks," in order to warn investors about scams that promote gold stock. The alert aims to provide information on how to invest in legitimate gold investments. FINRA is the largest non-governmental regulator for all securities firms doing business in the U.S. – KITCO
Free-Market Analysis: So the US-based Financial Industry Regulatory Authority (FINRA) has decided to warn investors about gold and mining stocks. It had to happen. The powers-that-be don't like gold and silver at all. This is a well-established fact and a fundamental dominant social theme: Don't invest in gold and silver because neither metal provides the promise and futurity of a bluechip stock. Investors like the famous Warren Buffett (often discussed in these pages) have been especially skeptical about gold and silver as an investment. Buffett, for instance, bought and sold silver in the middle of the first decade of the 2000s and later admitted that he sold too soon.
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| Gold Stocks Inch Closer to Major Breakout Posted: 29 Aug 2011 12:33 PM PDT In recent commentaries we’ve discussed the relative strength of the gold stocks and in particular the relative strength of the large miners. This relative strength comes at a time when the sector is nearing a potentially historic breakout. We’ve written about this breakout before but now the gold shares are closing in and it could only be a matter of days. GDX, our proxy for large-caps is now, after almost a year of trading in a tight range, only 3-4% away from new all-time high territory. Meanwhile, ZJG, the Canadian junior gold ETF, though lagging behind, is in great position to follow GDX to new highs. To get a feel for how the gold shares could perform after the breakout, consider one of the most classic breakouts. In late 1982 and 1983 the DJIA broke past 1000. This came after a 16-year consolidation. The retest came in early 1984 and the gradual move back to 1300 formed a cup and handle type pattern that facilitated an explosive move from 1300 to 2700 i...
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| I won't show you mine if you won't show me yours Posted: 29 Aug 2011 12:29 PM PDT 8:26p ET Monday, August 29, 2011 Dear Friend of GATA and Gold: Coin World's Paul Gilkes reports today that federal officials have changed their position and are now threatening to confiscate as "contraband" any Liberty Dollars displayed publicly. Gilkes writes: "Jill Rose, chief of the criminal division for the U.S. attorney's office in Charlotte, North Carolina, told Coin World Aug. 24 that the Liberty Dollar medallions are confiscable as contraband regardless if they are being exhibited for educational purposes only." The Coin World report is headlined "Liberty Dollars May Be Subject to Seizure" and you can find it here: http://www.coinworld.com/articles/liberty-dollars-may-be-subject-to-seiz... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Lewis E. Lehrman on How to Solve the U.S. Debt Problem Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program. Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust. To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata
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| Part 2 of Resource Clips interview with GATA Chairman Bill Murphy Posted: 29 Aug 2011 12:14 PM PDT 8:14p ET Monday, August 29, 2011 Dear Friend of GATA and Gold: The second part of the recent Resource Clips interview with GATA Chairman Bill Murphy has been posted here: http://resourceclips.com/2011/08/29/bill-murphy-on-venezuelas-gold/ CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Lewis E. Lehrman on How to Solve the U.S. Debt Problem Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program. Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust. To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata
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| I'm Personally Pursuing Some of the Greatest Values I've Ever Seen Posted: 29 Aug 2011 12:06 PM PDT By Dr. Steve Sjuggerud Monday, August 29, 2011 "What's so special about this one?" a lawyer asked me this week. Some associates and I are looking at buying a bankrupt waterfront housing development from a bank, for pennies on the dollar. It's an incredible property. And when you add up all that was invested, including roads and infrastructure, it literally is pennies on the dollar. This lawyer specializes in real estate litigation – working out major bankruptcies and foreclosures. He's been a busy man lately. We laid the map of the waterfront development out on the lawyer's conference room table. "Steve, I could show you a dozen other bust waterfront developments from here to the Georgia border that are just like this one. Some banks are just desperate to get rid of this stuff at any price," he said. "Not all of them. But some, for sure." The picture appears bleak in housing. "The housing market is showing little sign of recovery," the New York Times wrot...
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| Posted: 29 Aug 2011 12:01 PM PDT While the key market moving event from last Friday may have been Bernanke's Jackson Hole speech which merely left the door open to future QE episodes, the most important event from an economic standpoint was the first GDP revision Q2, which dropped from preliminary 1.3% to a sub stall speed, in real terms, 1.0%. What is just as important is that as the following chart from Bloomberg demonstrates, the YoY change in real GDP, which is now at 1.5%, is a slam dunk indicator of recession: "Since 1948, every time the four-quarter change has fallen below 2 percent, the economy has entered a recession. It's hard to argue against an indicator with such a long history of accuracy." Bernanke agreed that "growth has for the most part been at rates insufficient to achieve sustained reductions in unemployment." And while Bernanke is shifting dangerously into Greenspan territory with the open-ended interpretation of his statement, another thing that is more actionable is the observation that virtually every time real YoY GDP has dropped below 1.5%, this has led to a negative nonfarm payroll number. Granted, the result may not be as shocking as what the Philly Fed implied vis-a-vis this Friday's NFP, but we believe a subzero print in the August labor report will convince the three Fed holdouts that the time for yet another monetary intervention is here (Arab Spring part deux consequences be damned). Real GDP YoY:
And Real GDP YoY vs NFP:
Also, below is a complete compendium of all the mecroeconomic charts that matter this week:
And lastly, sealing the deal for the "recession" argument is the following data from John Lohman which finds that the collapse in real-time economic data over the past three months is the sharpest in history. To wit: Another day, another disappointing real-time indicator declines AND is below consensus estimates. In fact, every manufacturing index for the month of August has missed expectations and signaled further weakness. As Bernanke, the IMF, and most Wall St. economists cling to the notion of a second-half acceleration, the rest of us are witnessing a deterioration in global growth which is unprecedented.
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| Strong Pockets are Ready to Buy Gold Anywhere Under $1,750 Posted: 29 Aug 2011 10:59 AM PDT Gold Price Close Today : 1788.40 Change : (5.70) or -0.3% Silver Price Close Today : 40.546 Change : (0.406) or -1.0% Gold Silver Ratio Today : 44.11 Change : 0.298 or 0.7% Silver Gold Ratio Today : 0.02267 Change : -0.000154 or -0.7% Platinum Price Close Today : 1824.00 Change : -8.70 or -0.5% Palladium Price Close Today : 756.15 Change : -5.85 or -0.8% S&P 500 : 1,210.08 Change : 33.28 or 2.8% Dow In GOLD$ : $133.38 Change : $ 3.37 or 2.6% Dow in GOLD oz : 6.452 Change : 0.163 or 2.6% Dow in SILVER oz : 284.60 Change : 9.04 or 3.3% Dow Industrial : 11,539.25 Change : 254.71 or 2.3% US Dollar Index : 73.69 Change : -1.010 or -1.4% The GOLD PRICE backed off last Friday's panic/euphoria and fell $5.70 on Comex to close at $1,788.40, still above crucial $1,750 support. Last week's double key reversals still scream that very strong pockets are ready to buy gold anywhere under $1,750, and the closer it gets to $1,700, the deeper they dig in their pockets. Short term support now stands at $1,775: any nose-poke below that will carry gold to $1,750. Up above $1,800, $1,825, and $1,850 place barriers to any rise. Maybe that tumble last Wednesday marked the top of gold's rally- or maybe NOT. Gold will tell us this week. What you are watching is the Nice Government Men trying to transmogrify a raging panic into a "slow burn panic." Not as exciting, but lasts longer. Today the SILVER PRICE traded in a range between 4135c and 4028c. Comex dropped off 40.6c. The SILVER PRICE has traced out a range between 4150c and 4000c. It may be rolling over to the downside, but has to break 4000c first, and fight a tough battle to sink through all that support between 4000c and 3880c In both SILVER and GOLD PRICES we may be entering another frustrating trading range period like the one from 1 May through mid-July. If we are watching a correction, then the GOLD PRICE will target its 50 DMA ($1,644) and silver it's 200 DMA (now 3488c). This week will instruct us. Gold/Silver ratio rose again to 44.108, near the range top. That whispers trouble for silver, but rising stocks (rising risk appetite) whispers sweet dreams for silver. Picture simply isn't clear yet. I hope all y'all on the east coast survived the hurricane well and sound. Meanwhile, storms continue to blow through markets. Dow today broke through 11,300 resistance to close at 11,539.25, up 254.71 or 2.26%. S&P500 rose more, 33.28 points (4.75%) to 1,210.08. This brings the Dow up to the mid-August intraday high at 11,529.67, and clears the 20 day moving average at 11,260, but remains far below the 200 DMA at 11,988. Next resistance comes at 11,862.53, intraday low in June. But greater resistance lurks between 11,900 and 12,100. By no means am I convinced that stocks are about to shoot for the moon. Rather, the Dow might just as easily collapse again at 11,550/11,600 and resume its fall. Either it is now bumping up along the bottom of the Jaws of Death megaphone formation, or it will rise to the neckline of the Head and Shoulders top around 12,000. Either way, bodacious new prices lie not in its future. Stocks -- the Ghost of Christmas Past visiting you in your sleep. US DOLLAR INDEX dropped a nothing 10.1 basis points (0.13%), and remains in its tight trading range. Must violate 73.40 to move lower. In Europe today they were smoking more crack. How do I know? The Euro rose to a new high for the move at 1.4506, up 0.06%, but remains range bound. If it ever breaks out upside, it might be tomorrow. Nothing has changed in the Hall of Illusions. Yen finally dropped a bit, down 0.28% at 130.09c/Y100 (Y76.87/$). 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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| Max receives some chocolate gold! Posted: 29 Aug 2011 10:38 AM PDT We’ll be interviewing Isa Blumi soon for Thursday’s Keiser Report.
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| Soaring Gold Prices Bring Cheers, But in India, Tears Too Posted: 29 Aug 2011 09:34 AM PDT [Ed Note: This story illustrates the gargantuan cultural differences in how the average Indian values precious metals versus the average American.]
Gold may be a glittering investment opportunity on account of a sustained upward spiral in prices, but the meteoric ascent has brought tears to many families in Kerala, where gifting ornaments to brides for their marriage is a common practice. With gold breaching the Rs 20,000-mark for a sovereign recently, market figures show there has been no let-up in retail buying, as gold is an integral part of marriage, cutting across caste and community divides in Kerala. According to market leaders, an average of 60-70 tonnes of gold is sold annually in the state, contributing around Rs 200 crore to the state exchequer in tax. "The rich people, to a certain extent, are aware of the upsurge in gold price and will make advance buying plans to meet their present or future requirements. But what will the lower middle class or working class people do if the trend continues?"Josco Jewellers Executive Sales Head Joy George said. "We see many touching scenes these days like parents of prospective brides breaking into tears at jewel shops finding their plans and calculations going awry," George said
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| Posted: 29 Aug 2011 09:29 AM PDT "Cable news is scaring the crap out of me," tweeted Bloomberg TV Washington correspondent Lizzie O'Leary, "and I WORK in cable news." Yet for all the bluster, Irene turned out to be about as exciting as a cage match between a St. Bernard and a tortoise on a hot day. That is to say, well, underwhelming. Wall Street's investment banks were not deluged by storm surge… as had been hoped by many on Main Street. There was no damage at the New York Stock Exchange. Unless you count the water tracked in by traders this morning, careless enough to forget they'd donned their galoshes. The mere fact the Apocalypse had been averted sent up the major indexes 1.5% this morning. That, or the early news announcement pop diva Beyonce is pregnant. (Hey, you can't be too sure these days!) Gold moved up big on Friday "on the belief that the Fed's September meeting would offer even more monetary stimulus," says Euro Pacific Capital's Michael Pento. After we went to press with our Irene forecast issue, gold powered its way up $50, to $1,830. Over the weekend, it settled back to $1,805. Still, gold sits higher this morning than it's been any time in history before this month. "The chairman's 'tools' all offer different variations of the same idea," Pento continues, critical of the Fed's insinuation they can add stimulus to the economy when needed. "That is, what is the best way to destroy our dollar?" On Oct. 6, 2008, through the Economic Stabilization Act of 2008, the Fed began paying interest on excess "reserve balances" at banks, as well as on the cash reserves required for daily operations. The stabilization act is credited with being one of the many reasons banks have been reluctant to lend: They get paid by the Fed to hold on to excess capital. "This next meeting," Pento speculates, "will most likely produce a reduction in interest paid on excess reserves, in an effort to force banks into" lending those reserves out. "Just imagine," Pento goes on, "the amount of inflation you'll get when banks are compelled to start loaning money through the drive-through window." That, too, will be a good day to own gold. Every year since 2002, Gallup pollsters have asked 1,000 or so Americans what they believe is the best long-term investment. This year, for the first time, gold was added to the list of possibilities… along with more "conventional" assets like stocks, bonds, bank CDs and real estate. This year, gold assumed the top spot:
Not a majority, to be sure, but a convincing plurality. Even more noteworthy was the demographic breakdown. Gold tops all political affiliations, income levels, age cohorts and genders:
The age progression is what caught Byron King's eye. "Age is correlative," he says. "Baby boomers are turning into gold bugs," and so is Generation X. The older Silent Generation? "They're already there." Meanwhile, real estate is waaaaay out of favor. So much for "buying as much house as you can afford," as many old-timers were thought to have believed until yesterday. On any ordinary day, we might be inclined to view the Gallup poll with suspicion… even derision. Even the pollster seemed skeptical of the results: "That one in three Americans see gold as the best long-term investment," said Gallup chief economist Dennis Jacobe, "may indicate a bubble in the value of this precious metal." But the numbers might well have been skewed by when the poll was taken. Stocks had just reached 11-month lows, while gold had been on an almost nonstop run-up for seven weeks, from $1,500 to $1,750. Gallup's website doesn't post the results from previous years, but somehow we suspect Mr. Jacobe was not saying the same thing about real estate in 2006… nor would he have of tech stocks in 1999, were there a survey taken that year. Perhaps the most compelling argument from the polling data to refute the "bubble" argument: the breakdown by income. The middle class sees gold as the best long-term investment by a far wider margin than those polled with higher incomes. How many people living on middle-class incomes have actually bought gold? The pollsters didn't follow up… but our scientific wild-ass guess is "not much." Folks with incomes of $30,000-75,000 aren't responsible for pushing gold into record territory this month. The conventional "smart money" is still investing in the last bull market… and, comparatively, loaded up on equities, and even real estate. Worldwide, the percentage of financial assets comprising gold bullion, ETFs and mining stocks is minuscule:
That tiny bar on the right doesn't even begin to approach those previous peak levels until institutional investors get back in the gold game. "Expectations of dramatic monetary easing in Europe and more QE from the Fed will keep a strong bid under gold prices," our short strategist, Dan Amoss, writes. "These bids for gold are coming from institutions and the central banks of emerging markets." Indeed, central banks purchased 69.4 metric tons of gold during the second quarter of 2011, according to the World Gold Council. That's quadruple the year-ago figure. Mexico and South Korea were the big purchasers. With these factors gathering, Dan concludes, "it's easy to imagine gold trading in a range of $1,800-2,200 in 2012." Addison Wiggin Gold Rallies the Youth Vote 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.
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| Silver May Be Better Bet Than Gold Posted: 29 Aug 2011 09:21 AM PDT by Myra Saefong
Both gold and silver have made big moves higher so far this year, but silver's gains of more than 30% year to date are more impressive than gold's 25% climb and, likely, will continue to be. "Own gold and silver as soon as you can," Alex Cowie, editor of Diggers and Drillers, said in a recent report for Daily Reckoning Australia. But "I would choose silver over gold." According to Cowie, the Commitment of Traders report "says buy silver." The fewer open positions on silver there are, the more bullish the set up because there are "loads of potential buyers out there who haven't entered the market," he explained. The gold-to-silver ratio also favors silver, he said. Gold is roughly 15 times more rare than silver in nature and right now, you need about 44 ounces of silver to buy one ounce of gold. That ratio is heading back to where it belongs and could close in on its long-term mean of 15. At the same time, there's no more silver to spare and investment demand for the white metal is soaring, said Cowie. "There isn't even enough silver bullion in the world to supply one ounce per Chinese citizen," he said. "It doesn't take much imagination to see where this is heading." Read the Original @Marketwatch.com
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| FLASHBACK: The Silver Perspective Posted: 29 Aug 2011 09:03 AM PDT When I produced the micro-doc 'The Silver Perspective' on September 28, 2010, silver was trading at a mere $21.50. I said at the time that silver was such an undervalued bargain that it nearly defied belief. Flash forward 11 months and silver has almost doubled in price. The amazing thing is that even at current prices, if I were to re-make 'The Silver Perspective' today (other than the current metal prices I quote), I wouldn't change a word. "The gains investors have made to date have been stunning. But as the bankers are forced to cover their short positions and the true value of these precious metals is once again rediscovered, the pricing moves for gold and silver in the years ahead, will be talked about for generations."
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| Peter Schiff - Dollar Crisis to Intensify Gold & Silver Demand Posted: 29 Aug 2011 08:57 AM PDT  With gold and silver continuing their consolidation, today King World News interviewed Peter Schiff, CEO of Europacific Capital. When asked about the action in gold Schiff stated, "We had a pretty big move in a short period of time, so gold could mark time and digest some of those gains. I think there still is a lot of money that is going to be moving into the market, particularly if we get a breakdown in the dollar vs other currencies. If the dollar falls below that 70 area, I would expect to see across the board dollar weakness accelerate. That weakness, in turn, would feed into the gold market as well as other commodities."
This posting includes an audio/video/photo media file: Download Now |
| “The next big move is going to be huge and it’s going to be up.” Posted: 29 Aug 2011 08:55 AM PDT Embry – Incredible Physical Gold Demand, Premiums Exploding
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| Gold Daily and Silver Weekly Charts Posted: 29 Aug 2011 08:48 AM PDT |
| Record Prices Spawn New Wave of China Gold Bugs Posted: 29 Aug 2011 08:44 AM PDT from Reuters
Record gold prices, rather than denting China's enthusiasm for bullion, have emboldened investors to plough more money into gold bars and riskier bullion-based derivatives. August is traditionally a slow month for Chinese jewellers, but many shops in Shanghai visited by Reuters reported surprisingly solid gold sales over the last few weeks, with shoppers unfazed by gold's stellar price gains over the past few months. "The surge in prices has sparked another gold-buying craze. The 50 gram and 100 gram gold bars were selling like hot cakes," said Ms. Liu, a store manager at Shanghai's major jeweller Lao Feng Xiang, who said gold sales this month were up at least 30 percent from a year ago.
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With gold and silver continuing their consolidation, today King World News interviewed Peter Schiff, CEO of Europacific Capital. When asked about the action in gold Schiff stated, "We had a pretty big move in a short period of time, so gold could mark time and digest some of those gains. I think there is still a lot of money that is going to be moving into the market, particularly if we get a breakdown in the dollar vs other currencies. If the dollar falls below that 70 area, I would expect to see across the board dollar weakness accelerate. That weakness, in turn, would feed into the gold market as well as other commodities."
Dominant Social Theme: Gold is a barbarous relic.
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