saveyourassetsfirst3 |
- Texas governor Rick Perry says try Ben Bernanke for treason
- Top investor Zulauf: Own gold and cash… Get out of stocks
- Did Things Just Get Better or Worse?
- 5 Things that May Drive the EUR/USD
- Europe Officially on Recession Alert
- GLD Is Challenging SPY for the ETF Crown
- Relative Strength of Gold Stocks Signals the Future
- Silver Update, poised for a rally?
- The Case for $25,000 per Ounce Gold
- Newcrest Mining riding the gold bull
- Continued Volatility
- Dead 40 Years Ago, the Gold Standard Is Back
- The Nixon shock heard 'round the world' - Lewis Lehrman
- Rickards sees gold being revalued to $7,000
- Gold's breakout above $1,800 could come any time, Turk tells King World News
- Gold will be part of dollar-reserve system's reform, Davies tells CNBC
- Demand for real metal is crushing paper, Ben Davies tells CNBC Asia
- Hedge fund SAC puts $628 million into gold ETF options
- Sales of gold up on eBay amid stock market turmoil
- US Mint Suspends Sales of 2011 Commemorative Gold Coins
- 'There Is No Unlimited Support' - German Finance Minister Wolfgang Schäuble
- Gold price held up by sick dollar
- Outlook for Gold "Positive" following "Euro Stagnation"
- Both Sides Shoot The Messenger
- Gold & Silver Market Morning, August 16, 2011
- The Sucking Sound of Liquidity Draining From the Eurobank Market
- Today’s Winners and Losers
- Fear Index approaches 3%
- The Market Dynamics That Sent Gold Past $1800
- Bahrain‘s gold traders under pressure
| Texas governor Rick Perry says try Ben Bernanke for treason Posted: 16 Aug 2011 07:31 AM PDT From Economic Policy Journal: Well, well, it appears that Rick Perry has read Ron Paul's book, "End the Fed," but just to prove he has a screw or two loose, he tells an Iowa group that if Bernanke prints any more money, then Bernanke would be treated "pretty ugly" in Texas. Here's the Think Progress take: Texas governor Rick Perry, who entered the presidential campaign on Saturday, appeared to suggest a violent response would be warranted should Federal Reserve Chairman Ben Bernanke "print more money" between now and the election. Speaking just now in Iowa, Perry said, "If this guy prints more money between now and the election, I dunno what y'all would do to him in Iowa, but we would treat him pretty ugly down in Texas. Printing more money to play politics at this particular time in American history is almost treasonous in my opinion." Treason… Read full article (with video)… More on Ben Bernanke: Jim Rogers: Bernanke and Geithner are sending us to "fiscal Armageddon" The great Richard Russell's take on Ben Bernanke and gold Bernanke knew his policies would trigger a crisis |
| Top investor Zulauf: Own gold and cash… Get out of stocks Posted: 16 Aug 2011 07:30 AM PDT From Pragmatic Capitalism: Felix Zulauf was profiled in this week's Barron's, and the bearish fund manager is now beginning to sound downright apocalyptic. The problem is, he's had the macro picture nailed far better than most others. He recently told the magazine: "I predicted in the Midyear Roundtable ("Buy Low, Stay Nimble," June 13) that the stock market would go to a low in the fall. The next few weeks will be extremely volatile. I expect the market to go below the latest lows in September. The central bank will come in to provide liquidity, but timidly at first because the Fed was bashed for QE2. After the fall low, equities will… Read full article… More on gold: Why the biggest gold rallies in history are yet to come The stars could be aligning for a spectacular gold rally Eric Sprott: Why gold is soaring now |
| Did Things Just Get Better or Worse? Posted: 16 Aug 2011 05:49 AM PDT By Brian Dolan: Did things just get better or worse?Regular readers will know we have been cautioning since early June that risk markets (stocks, commodities, JPY-crosses, CHF-crosses and commodity currencies) were ripe for a serious setback as incoming data consistently disappointed and optimistic outlooks needed to be tempered. We think the declines of the past two weeks constitute that pullback, though we were somewhat surprised by the speed and degree of some of the declines. At this point, we think markets have broadly adjusted to the more sluggish global recovery we had projected and we're cautiously optimistic that the worst of the downturn is behind us. We also think markets likely overshot to the downside this past week and we're leaning toward upside corrective potential in coming weeks. It's too soon to sound the all-clear, but a number of key developments have occurred that suggest to us that markets should stabilize at Complete Story » |
| 5 Things that May Drive the EUR/USD Posted: 16 Aug 2011 05:42 AM PDT By Andrei Tratseuski: Market participants are jumping on the risk appetite mentality after a volatile week. Despite negative notations in the market place, risk appetite vehicles are rallying against the United States dollar. However, there are some positive and negative notations which may cause profound movements in the euro currency pair. 1) A drop in risk of peripheral nations – the European Central Bank has been aggressively buying bonds from larger peripheral nations – Italy and Spain- in hopes to drive down the yield and squeeze a run on larger economies. A rising yield suggests more risk; lower yields suggest lower risk – a EUR/USD positive. Furthermore, Credit Default Swaps of Italy and Spain – a protection against a default – has dropped tremendously. All of the following measures are suggesting that the ECB will act at any hindsight of problems in nations "too big to bailout." The European Central Bank bought as Complete Story » |
| Europe Officially on Recession Alert Posted: 16 Aug 2011 05:18 AM PDT According to the German statistics institute, growth in that nation virtually ground to a halt, registering 0.1% form April thru June. This reading was drastically weaker than the 0.5% growth expected by the consensus of economists. France's growth in the second quarter was zero. What Can Be Expected Going Forward?The severe financial markets turmoil surrounding the sovereign debt crisis in Europe can be expected to have a chilling effect on business and consumer sentiment throughout the continent. This should cause economic activity to slow in the third quarter of 2011. Indeed, one should not be surprised if there are some negative GDP prints in Europe in the third quarter of 2011. ConclusionGiven its fiscal woes, Europe simply cannot afford a recession right now. A collapse in tax receipts would cause all fiscal targets to be violated and the sovereign debt crisis playing out in debt markets could escalate Complete Story » |
| GLD Is Challenging SPY for the ETF Crown Posted: 16 Aug 2011 05:08 AM PDT By Benzinga: Not surprisingly, gold's recent ascent amid a weak market where investors' confidence in other asset classes has been shaken has been a boon for ETFs backed by holdings of physical gold, namely the SPDR Gold Shares (GLD). For years, GLD has been the second-largest ETF in the world by assets behind the SPRD S&P 500 Trust (SPY). SPY can also lay claim to being the first ETF introduced in the U.S. and while it will always be able to brag about that, SPY's days as the world's biggest ETF appear numbered. At the end of July, SPY had roughly $27 billion more in assets under management than GLD, but SPY has seen its AUM haul plunge from $93.3 billion at the end of last month Complete Story » |
| Relative Strength of Gold Stocks Signals the Future Posted: 16 Aug 2011 01:42 AM PDT |
| Silver Update, poised for a rally? Posted: 16 Aug 2011 12:26 AM PDT The 6-month chart for silver shows HUGE upside potential, with a powerful uptrend starting from right where we are now. If the interpretation of the wave count is correct (this can be a big "if" of course, but it does look very clear at this point), then the point we are at now is close to the trough of the wave 2 reaction that should now immediately lead to a strong wave 3 uptrend, all this following the 3-wave A-B-C correction shown on the chart. Even without reference to wave theories the chart certainly looks encouraging as silver managed to break above the quite strong resistance in the $39.00 - $39.50 zone on its wave 1 advance which is now functioning as a support level, in addition to which its moving averages are now in bullish alignment and it is not overbought on short to medium-term oscillators as made clear by the RSI and MACD indicators on the chart. Everything appears to be in place for a big rally to get going - "all systems go" as they used to say. Click here to see...  |
| The Case for $25,000 per Ounce Gold Posted: 15 Aug 2011 11:53 PM PDT I guess this guy is bullish.  Monday, August 15, 2011 The Case for $25,000 per Ounce Gold EconomicPolicyJournal.com Gold is trading off a bit from its recent high of $1,800 per ounce. This does not surprise me. Whenever a stock or commodity picks up strong momentum, short-term traders jump in for the ride. These short-term traders hold no fundamental understanding of why a commodity or stock is going up, they are just along for the price action. Since they have no fundamental underpinning for their purchase, when there is some short-term downward pressure, they sell because of that downward pressure. Indeed, in the EPJ Daily Alert I have warned that a $500 per ounce drop in the price of gold could occur. It could occur now, or when gold hits $2,500 per ounce. But this selling will have no relevance to the long-term price of gold,which likely will be much higher. Here is my case for a much higher gold price. It has often been said that gold climbs with the price level that 100 years ago you could buy a very nice suit for an ounce of gold and that you can do the same today. That was true, but I think things are about to change. Over the last roughly 50 years, gold has been accumulated by gold bugs. As prices climbed, gold bugs saw their incomes climb as well and thus they had more money to spend on gold. Thus, the price of gold climbed roughly in line with the price level. This is now changing. The gold bugs are still in the game, but they have company. Central banks have become net buyers of gold, as have many others. The crises in Europe has caused many overseas to seek gold out. And in the United States, the possibility for many new gold buyers emerging is very strong. During the inflation of the 1970's, gold climbed in price, but this only really started after President Ford made gold once again legal to own in the United States. It took much of the 1970's for people to realize that gold was an important inflation hedge. But now after we have that lesson under our belt and the recent decade long climb in gold from roughly $250 per ounce to $1,800 per ounce, most in America understand that gold is a very important inflation hedge. Yet the number of Americans who actually own gold is likely under 10%. The question must be asked, "What happens if price inflation really accelerates at some point, as it is likely to do?" The answer most likely is that many more will flock to gold. In the old days, if price inflation pushed prices up over a few years by 100%, gold would likely climb by as much. Based on its present level it would climb to roughly $3,000 area, as gold bugs continued their steady buying. But what if the next massive price inflation brings with it a flight away from the dollar as a reserve currency and causes the number of owners of gold in the United States to climb from under 10% to, say, 50%? This would result in huge new demand for gold. Instead of stopping at $3,000 per ounce, gold would be a multiple of that price. $25,000 per ounce would not be out of the question. It's possible that the new demand for gold could be so great that an ounce of gold instead of resulting in buying one good suit, could allow you to buy two or three good suits. Bottom line: Greater price inflation is likely to boost the price of gold, just because of more gold buying from gold bugs, but the next great wave of inflation is likely to result in lots of new buyers. Stepped up buying by central banks, buying by the very wealthy and buying by the average American. Will such a price inflation come? The United States is already pumping money at very strong levels, six percent plus. The euro crisis may result in printing by the European Central Bank, which will magnify on a global scale price inflation. The printing in the United States will likely be enough to push gold much higher. If the ECB does the same, we could be very near global inflation---something never seen on this planet before. If global inflation occurs, $25,000 per ounce may be a conservative estimate as to where gold climbs. In other words, don't sell your gold coins just yet, in the next round of inflation, there is likely to be a huge new group of lawyers, doctors, corporate executives and business owners buying gold. They will drive the price to currently unimaginable levels. http://www.economicpolicyjournal.com...unce-gold.html |
| Newcrest Mining riding the gold bull Posted: 15 Aug 2011 11:00 PM PDT Australia's largest gold producer, Newcrest Mining, remains optimistic about future gold price developments. Yesterday the mining giant reported its financial results for the last twelve months ... |
| Posted: 15 Aug 2011 09:57 PM PDT We believe the up and down swings will continue but the trend will continue down for a few weeks. Dow Jones Industrial Average: Closed at 12669.02 +125.71 on 25% of normal volume. Support is 11250 and resistance is 11300. Momentum is down but price has recovered above and near the magnet trading number of 11250 support. Expect more volatility and selling for the balance of the month with some spurts of tiny rallies. These won't mean much as the down trend continues until September 1. S&P 500 Index: Closed at 1178.81 +6.17 with volume off 30%. Momentum is down and we expect more selling for the balance of this month. Support is 11750 and resistance is 12,000. There was so much confusion in the trading volatility this week most investors are wary of doing anything. We concur and suggest that with the exception of day traders (which we are not) investors should stay on the sidelines waiting for real support and a definitive trend. We could see a new base on the cycles and time at the beginning of the last week in August. S&P 100 Index: Closed at 531.37 +2.70 with about 15% of normal volume on falling momentum. Support is 525 and resistance is 540-550. These are larger company shares and they tend not to trade as often as the other indexes. Look for a gradual drift downward to support at 500 to 520 in a trading range. Stay out. Nasdaq 100 Index: Closed at 2182.05 +14.98 on normal volume and supporting momentum. These signals are telling us that as the leader, this index would base and buy first. We should watch the Nasdaq 100 for leadership for the other indexes. Last year in August the price based and consolidated during the last week of August about one week ahead of the stock indexes. Price is now supported on a stronger price point but we would not be buyers until we can see both volume and momentum turn solidly higher. There is way too much risk throughout the globe right now to take chances too early. 30-Year Bonds: Closed at 136.94 +1.72 after a large run up from 125.00 to 138-139 on the long bonds. The peak is in and these bonds are sold back two points. Resistance is 136.50-137.50 and support is 135.00. Watch for the bonds to continue to be volatile as global credit moves swiftly in both directions; especially from Europe. New lower support for the intermediate term is 132.00. GDXJ Junior Gold Miners: Closed at 35.00 -0.83 but now firmly supported with a triple bull bottom at 32.5. Volume is normal after rising to extremes on volatility. Resistance is 35.51 on the 200 day moving average and support is today's close at 35.00. The XAU chart is beginning to show life with the supporting and tiny rise of the metal to shares ratio, which is 90% accurate. Do not rush in to buy PM shares too quickly. We would rather see some new and stronger support, which should come in about one trading week. Gold: Closed at 1745.60 -18.40 today after having a large rally this week of nearly 100 points. December futures touched 1818 and the low today was 1745. While the gold rally has begun for fall, we must be wary of influences outside this market especially from bonds, currencies and credit. The US Dollar is stuck near 74.00 but is under severe pressures to sell lower. This is the time when gold normally takes off in a many months rally all the way to next spring with several profit-taking corrections in the cycle middle. I am wary of one more correction of substance before the fall rally begins in earnest. Hold your long positions on spreads, options and futures with the proper stops and risk control. Look to add more trades after Labor Day or when we give an alert signal. Silver: Closed at 39.11 rising one point today and doing better than gold. Momentum is still down but could be turning around to the plus side. Price is above all moving averages and has formed some stronger bases in the 37-38 trading range. Support is 38.85 and resistance is $40. Silver needs more recovery time as it heals up from the -$15 battering on the big sell recently. Longer range positions are good but give your self enough time and hold out for good technical prices. Do not be too quick to buy. US Dollar: Closed at 74.60 and is trading in a tighter range between $74-75. Price of 76.41 on the 200-day average is higher and hard resistance. The other averages are all surrounding the close and the 74-75 trading range. Watch for the dollar to go sideways for the balance of August and prepare to sell lower after Labor Day. Crude Oil: Closed at 85.27 -0.33 after coming back up from a very hard selling event. Oil was at 75 or so and bounced back on falling reserves and being oversold. Oil is trading between 84.50 and 88.50 for now. We expect prices to rise this fall on tighter reserves and rising inflation. There is hard resistance at 88.50-92.50. Our longer view is for 103, 106, 108, 110, 112 and 120. Goldman Sachs forecasts 130 with no dates. CRB Index: Closed at 326.34 +5.91 on falling momentum that should base and rise in about another week. Oil will help and grains are coming in higher with some softs like sugar and cotton beginning to firm. Worries on China so far are unfounded. China-Aussie ore imports are going soft but the exports from China are higher than ever. Support is 320 and resistance is 332 on the 200-day average. Expect the CRB to rise with most of the index basket supporting this index this fall. - Traderrog         This posting includes an audio/video/photo media file: Download Now |
| Dead 40 Years Ago, the Gold Standard Is Back Posted: 15 Aug 2011 09:15 PM PDT ¤ Yesterday in Gold and SilverThe gold price got sold off about sixteen bucks during the first two hours of trading in the Sunday night electronic market in North America. Once gold began to trade in the Far East in their Monday morning, a smallish rally began that took it back to just about unchanged. From there, it began a slow decline...and by the time that the Comex opened in New York at 8:20 a.m. Eastern time, gold was down a bit more than $10 from its Friday afternoon close. Then a rally began that continued almost unabated for the rest of the New York trading day...both Comex and electronic...and gold finished on its absolute high of the day, which was up $19.90 spot from Friday. Volume was light.
Silver's price action was pretty directionless throughout most of Monday...and only showed signs of life in the New York Access Market once Comex trading was done at 1:30 p.m. Eastern. The silver price almost closed above the $40 mark...but just couldn't quite make it...but did finish up 85 cents on the day. Volume was extremely light...with the emphasis on extremely.
The dollar vacillated between 74.60 and 74.40 up until shortly after 6:00 a.m. Eastern time...and then fell about 80 basis points in less than four and a half hours. The bottom was in just before 10:30 a.m. in New York...and closed just off its low. Once again, there was no sign of this dollar decline in the gold or silver price. As I've said before, the price of the precious metals has basically decoupled from the dollar...and is acting as a currency in its own right.
With gold down a bit at the opening of the equity markets at 9:30 a.m. Eastern, it was no surprise that the gold and silver equities started the day in negative territory. But that didn't last long. Most of the gold stock's gains came by 2:15 p.m. Eastern time...and then traded sideways from there. The HUI finished up a very respectable 2.82%.
Virtually all the silver stocks finished well into the plus column yesterday...and that's certainly reflected in Nick Laird's Silver Sentiment Index, which was up a chunky 4.16%
(Click on image to enlarge) The CME's Daily Delivery Report showed that 50 gold, along with 52 silver contracts, were posted for delivery tomorrow. The surprise in silver was that the issuer/short seller was all Jefferies once again. That's 202 silver contracts they've had to deliver in the last two business days...and that's a hair over a million ounces. And, as always, it should come as no surprise that the Bank of Nova Scotia and JPMorgan were the two biggest receivers/stoppers once again. There were no reported changes either in GLD or SLV yesterday. After reporting no sales on Friday, the U.S. Mint had a pretty decent sales report on Monday. They sold a whopping 20,500 ounces of gold eagles...along with 4,000 one-ounce 24K gold buffaloes...and 640,500 silver eagles. Month-to-date totals are as follows: 76,000 ounces of gold eagles...14,000 one-ounce 24K gold buffaloes...and 1,959,500 silver eagles. Gold eagle/buffalo sales in August so far, have far exceeded all of July's sales...and it's only the 15th of the month. I sure do hope you're getting your share, dear reader. The Comex-approved depositories reported receiving 595,006 troy ounces of silver on Friday...and only shipped 972 ounces of the stuff out the door. As I am wont to do, here are a couple of paragraphs that I stole from silver analyst Ted Butler's weekend commentary to his paying subscribers. "In silver, there was also a massive reduction in the total commercial net short position of some 9,300 contracts, or the equivalent of 46.5 million ounces, one of the largest weekly reductions ever. The raptors (the smaller commercials apart from the big 4 and the 5 thru 8) accounted for 7,500 contracts of the total weekly reduction (80%), with the big 4 (read JPMorgan) responsible for 1,400 of the 9,300 total contracts bought back. Not that we were at bearish extremes in the silver COTs to start with, but this puts us squarely back into bullish territory. Based upon the extreme opposite movements between gold and silver prices in the reporting week, I am certain that a significant number of long silver/short gold leveraged spread trades were blown out, adding to the big decline in silver speculative long positions." "Just like occurred in gold, the tech funds sold in silver as the commercials bought. But that is where the similarities end. Whereas gold experienced a stunning rally in the reporting week, silver had a sharp loss of more than $3. In gold, the commercials panicked as they bought back; in silver, it was business as usual in that the commercials rigged prices deliberately lower to induce speculative long liquidation. Here as well, there are important lessons for the regulators. In addition to the obvious collusive pattern of the commercials trading in unison, it is clear that the silver raptors forced the silver market sharply lower through HFT and other dirty tricks for a highly visible purpose. Silver suddenly dropped $3 for a very specific reason – so that the raptors could get long silver, which they did by increasing their long position from 1,500 contracts to 9,000. It can't be any clearer that the silver raptors collusively rigged the price artificially lower for the sole purpose of buying thousands of contracts. I'm trying hard not to insult the regulators for not seeing this, but it's difficult not to." Here's a nifty chart that Nick Laird over at sharelynx.com sent me on the weekend. It shows the percentage gains and losses of the Dow and S&P going back to the year 2000. Plotted against that, in all its magnificence, is the percentage gain in the gold price over the same period of time. Any questions concerning this chart...and its meaning or significance...should be forwarded to Jon Nadler at Kitco.
(Click on image to enlarge) In a similar [pardon the pun] vein here is the S&P vs. Gold chart starting from last September. This arrived in my in-box yesterday...and I thank Washington state reader S.A. for sharing it with us.
I remember four or five years ago when a story on gold came out so seldom that you could count them on the fingers of one hand in a one month period. They are now arriving in my in-box at that rate per hour! That's the excuse I'm using for the boat load of stories that I have for you again today. I have come to dread my Tuesday column, because there are three days worth of stories to post. In the 'old days'...a gold story on the weekend was unheard of. Now it's commonplace. So gird your loins, as everything that is listed under "Critical Reads" today is exactly that. It still makes as nervous as a long-tailed cat in a room full of rocking chairs, as we're over $300 above gold's 200-day moving average...and I'm still on the look-out for "in your ear." Rickards sees gold being revalued to $7,000. Gold will be part of dollar-reserve system's reform: Ben Davies. Global markets face a new 'danger zone' - Robert Zoellick. M2 Money Supply Explodes. ¤ Critical ReadsSubscribeU.S. M2 Money Supply ExplodesAs this chart of the M2 measure of money supply shows, it has gone on to experience a gigantic surge in the past seven weeks. M2 has risen almost $420 billion since the week of June 13th, on average almost 60 billion per week. To put this in perspective, annual M2 growth has averaged about 6% per year since 1995, and growth at this rate would translate into about $10 billion per week. In other words, M2 normally would have grown by $10 billion a week, but instead has grown six times faster. M2 has never grown this fast in a seven week period for at least the past 50 years. No matter how you look at it, this is a major event. This short blog, complete with an excellent graph, is posted over at scottgrannis.com...and I thank reader Bob Fitzwilson [who I had the great pleasure of meeting in person in London last weekend] for sending it along. The graph is worth the trip all by itself...and the link is here.  More Down Coming: Carl SwenlinIt's not often I get to post something by Carl Swenlin...who has been around since dirt. But reader U.D. sent me this short piece that was posted over at financialsense.com on Saturday. Carl says that "Considering the rapid deterioration of both price and internals, I think that a continuation of the decline to much lower levels is probable. That is to say that we'll probably see support at pervious bear market lows tested before we'll see this year's highs exceeded." That's a big 10-4 good buddy...and the link to this short read, which is headlined Percent Buy Index [PBI] Deeply Oversold, is here.  Global markets face a new 'danger zone' - Robert ZoellickWorld Bank chief Robert Zoellick has said that investors have lost confidence in the economic leadership of several key countries, warning global markets were in a "new danger zone" as a result. Zoellick said a convergence of events in the United States and Europe had rattled investors in countries already struggling to cap sovereign debt issues and unemployment...and I think that those events combined with some of the other fragilities... have pushed us into a new danger zone. And I don't say those words lightly." This story was posted in the Sunday Telegraph...and I thank Roy Stephens for sending it to me. The link is here.  "A Hair Trigger Away from Economic Calamity" - CFTC Commissioner Bart ChiltonHere's a 14-minute therealnews.com video with everyone's favourite CFTC commissioner. It's worth the listen...and I thank reader Randall Reinwasser for sharing it with us...and the link is here.  Germany's Angela Merkel faces eurobond mutinyGerman Chancellor Angela Merkel's coalition partners are threatening a withdrawal from government if she agrees to eurobonds or any form of fiscal union to prop up southern Europe. The simmering revolt in the Bundestag makes it almost impossible for Mrs. Merkel to offer real concessions at Tuesday's emergency summit with French president Nicolas Sarkozy. "We are categorical that the FDP-group will not vote for eurobonds. Everybody must understand that there is no working majority for this," said Frank Schäffler, the finance spokesman for the Free Democrats (FDP). Well, with everyone at daggers drawn, it should be an interesting meeting. This story was posted late last night over at The Telegraph...and it's well worth the read. The link is here...and I thank Roy Stephens one more time.  'There Is No Unlimited Support' - German Finance Minister Wolfgang SchäubleIn a SPIEGEL interview, German Finance Minister Wolfgang Schäuble talked about his opposition to euro bonds, the limits to European solidarity and the need for governments to reduce their debt burdens.... SPIEGEL: Mr. Schäuble, have you bought any gold yet? Schäuble: My private financial situation is such that I don't need to worry about my investments. I don't have much to invest. SPIEGEL: Many people are worried about their savings. They're losing their trust in their currencies and in their governments' crisis management, in the US as well as in Europe. The price of gold is rising as a result. Can you understand this mistrust? And it goes straight down hill from there. This is another Roy Stephens offering from yesterday...and the link is here.  |
| The Nixon shock heard 'round the world' - Lewis Lehrman Posted: 15 Aug 2011 09:15 PM PDT  Here's a short article from yesterday's edition of The Wall Street Journal. For all you newbie gold bugs under the age of 60...this is an absolute must read...and for all us over that number, it's an excellent refresher. The WSJ story is posted in the clear in this GATA release...and the link is here. |
| Rickards sees gold being revalued to $7,000 Posted: 15 Aug 2011 09:15 PM PDT  In an audio interview yesterday with Eric King of King World News, geopolitical analyst James G. Rickards, who spoke at GATA's London conference, reviews President Nixon's severing of gold from the dollar in 1971...and speculates that gold will be officially revalued to $7,000. Whenever Jim Rickards is talking, I'm listening. I had the privilege of having breakfast with Jim a week ago Sunday when we were both in London at the GATA conference...and he's one smart guy. The link to this must listen audio interview is here. |
| Gold's breakout above $1,800 could come any time, Turk tells King World News Posted: 15 Aug 2011 09:15 PM PDT  GoldMoney founder and GATA consultant James Turk, who spoke at GATA's Gold Rush 2011 conference in London last weekend, has been sticking his neck way out with price predictions all summer and seeing them come true. Today Turk does it again in an interview with King World News: Gold above $1,800 by the end of the month. Turk says he is "amazed" by the demand for real metal and thinks silver is about to play catch-up. I just love it when Chris does my work for me...as he did here again. |
| Gold will be part of dollar-reserve system's reform, Davies tells CNBC Posted: 15 Aug 2011 09:15 PM PDT  Here's a Ben Davies double header. The preamble and title is also courtesy of Chris Powell. Hinde Capital CEO Ben Davies, who spoke at GATA's London conference, was interviewed today on CNBC Europe about gold's likely reincorporation into the international monetary system. The recent sequential financial crises, Davies said, show a "huge dollar burden being passed around." Gold, he said, will be part of the reform of the dollar reserve system. The interview with Davies is eight minutes long and you can watch it at the CNBC archive here. |
| Demand for real metal is crushing paper, Ben Davies tells CNBC Asia Posted: 15 Aug 2011 09:15 PM PDT  Fresh from his appearance at GATA's Gold Rush 2011 conference in London, Hinde Capital CEO Ben Davies flew to Asia and ended up on CNBC Asia in Singapore, where he got a minute to explain to that part of the world the difference between paper gold and real metal and how demand for the latter is crushing the former. I stole the introduction and the headline from a GATA release. The segment is a little less than four minutes long and you can watch it at the CNBC archive here. |
| Hedge fund SAC puts $628 million into gold ETF options Posted: 15 Aug 2011 09:15 PM PDT  Here's a story from yesterday's edition of The Wall Street Journal that's headlined "SAC's Steve Cohen: Gold Bug?". SAC Capital Advisors L.P., the hedge fund run by Steven Cohen, disclosed a new position in options on the gold exchange-traded fund, SPDR Gold Trust. The investment, options that allow SAC Capital to buy shares of the gold ETF at a defined point in time, is valued at $628 million, the single largest value of equity positions disclosed by SAC Capital, according to the hedge fund's quarterly snapshot of its U.S. investment holdings. |
| Sales of gold up on eBay amid stock market turmoil Posted: 15 Aug 2011 09:15 PM PDT  Gold and silver sales on eBay had already been rising steadily over the past several years -- so much so that eBay Inc. created a special area in May to make it easier for buyers to find sellers. Now, activity on that part of the site, the Bullion Center, is intensifying as consumers unnerved by the economic uncertainty flock to gold in hopes it will be a stable investment. "When people are coming down to the question, `Do they want to have cash in the bank or gold in their hands?' the answer is they'd rather have gold or silver," said Jacob Chandler, CEO of Great Southern Coins, the largest seller of precious metals on eBay. |
| US Mint Suspends Sales of 2011 Commemorative Gold Coins Posted: 15 Aug 2011 09:15 PM PDT  Raging gold prices are disrupting United States Mint gold coin sales. The bureau on Friday stopped selling commemorative gold coins just three days after a similar suspension was implemented throughout collector pieces, including the American Gold Eagles, American Gold Buffalo and each of the First Spouse Gold Coins. The suspensions came as melt values of the coins raced toward their retail prices. |
| 'There Is No Unlimited Support' - German Finance Minister Wolfgang Schäuble Posted: 15 Aug 2011 09:15 PM PDT  In a SPIEGEL interview, German Finance Minister Wolfgang Schäuble talked about his opposition to euro bonds, the limits to European solidarity and the need for governments to reduce their debt burdens.... SPIEGEL: Mr. Schäuble, have you bought any gold yet? Schäuble: My private financial situation is such that I don't need to worry about my investments. I don't have much to invest. SPIEGEL: Many people are worried about their savings. They're losing their trust in their currencies and in their governments' crisis management, in the US as well as in Europe. The price of gold is rising as a result. Can you understand this mistrust? |
| Gold price held up by sick dollar Posted: 15 Aug 2011 09:15 PM PDT Stocks and commodities gained yesterday as traders returned to "risk" assets. The silver price was a beneficiary of this move, moving from under $39 per troy ounce to an intraday high of ... |
| Outlook for Gold "Positive" following "Euro Stagnation" Posted: 15 Aug 2011 09:01 PM PDT |
| Both Sides Shoot The Messenger Posted: 15 Aug 2011 09:00 PM PDT Dollar Collapse |
| Gold & Silver Market Morning, August 16, 2011 Posted: 15 Aug 2011 09:00 PM PDT |
| The Sucking Sound of Liquidity Draining From the Eurobank Market Posted: 15 Aug 2011 08:52 PM PDT As much as the dot com era conditioned US individual investors to focus on stock market movements, credit markets are where the real action lies. Deterioration in the bond markets almost without exception precedes stock market declines (although debt instruments can also send out false positives). In the stone ages of my youth, the rule of thumb was a four-month lag. In 2007, that guide was not at all bad. The bond market turn began in June 2007 (yours truly took note of it then, see here for the critical development, but was not convinced it was the Big One until corroborating data came in in July). The stock market obligingly peaked in October 2007. Now given the extraordinary degree of government interventions, turns are not as obvious, market upheavals have repeatedly been beaten back, and relationships between stock and bond market price movements are likely to be less reliable than in the past. But one thing that is a clear danger signal is liquidity leaving the banking system. It's like the preternatural calm when the water leaves the beach, revealing much more shore than usual, before the tsunami rolls in. A very good overview at the end of last week by the International Financing Review highlighted one clear danger sign: many mid tier banks in Europe are unable to get funding in interbank markets and are increasingly dependent on the ECB. The whole piece is very much worth reading. Key extracts:
FT Alphaville also took up the theme of Eurobank financing stress, citing Morgan Stanley analyst Huw van Steenis, who points out that the 5 year CDS of Eurobanks are trading wider than they did in 2008 and provided this cheery chart:
And the journalist from (Graham) Greeneland, John Dizard, also points that the system is close to going into a critical state:
Dizard also points out that the Eurozone isn't prepared to enter into broad scale bank recapitalization programs; they'll have to take place on a country by country basis. Yet he argues that the concerns are still overdone, for the Fed would ride to the rescue with swap facilities in a crisis, so US money market funds can keep their funding of Eurobanks (via repos) in place. Yet it does not appear that money market funds are all that sanguine. They've been pulling back from European banks for a while; the dry up of funding to medium-sized banks described in the IFR article is in part due to their newfound caution. And one can't forget how public hostility can impede action. The reason the authorities didn't bail out Lehman was that it was politically unacceptable to do so. And I'm not saying a rescue was the right answer, but relying solely on a private sector solution and not considering a resolution or a good bank/bad bank structure was remarkably short-sighted. Here again, a failure to appreciate the downside may again lead to sluggish responses and tactical rigidity that could prove deadly in a crunch.
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| Posted: 15 Aug 2011 06:31 PM PDT GDX gained by 2.84% while GDXJ gained by 2.94% and SIL gained by3.46%.
Here are today's best performing Silver stocks:
Here are today's worst performing Silver stocks:
Here are today's best performing Gold stocks:
Here are today's worst performing Gold stocks:
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| Posted: 15 Aug 2011 06:15 PM PDT James Turk's Fear Index rose to 2.96% in July on the back of a rising gold price that outpaced a growing money supply. After hitting a record low of just 0.90% in 2001, the Fear Index has risen ... |
| The Market Dynamics That Sent Gold Past $1800 Posted: 15 Aug 2011 05:49 PM PDT Sk Options Trading |
| Bahrain‘s gold traders under pressure Posted: 15 Aug 2011 05:42 PM PDT |
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