Gold World News Flash |
- FLASH: China knows about gold price suppression, and U.S. knows China knows (Wikileaks - 2009 cable)
- Raw Text: Beijing Embassy Cable; China's Gold Reserves
- GoldSeek.com Radio Exclusive: Transcript of Robert Kiyosaki Interview with Chris Waltzek about Gold, Silver, Debt, and Private Investing
- “Large gold reserves are also beneficial in promoting the internationalization of the RMB.”
- China knows that the U.S. government and its allies in Western Europe strive to suppress the price of gold, and the U.S. government knows that China knows, according to a 2009 cable from the U.S. Embassy in Beijing to the State Department in Washington.
- It’s All About the Jobs… and Gold
- "Black Friday" - The Great Gold Crash...Of 1869
- "Black Friday" - The Great Gold Crash...Of 1869
- David Morgan: “10 Rules for SILVER Investing” PART 2
- This Past Week in Gold
- FLASH: China knows about gold price suppression, and U.S. knows China knows
- HOLD ONTO YOUR SHORTS
- Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree
- Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree
- Haynes and Norcini review metals' week at King World News
- Gold Stocks, the Best Business For An Inflationary Environment
- What the "Crisis and Collapse" Crowd Is Missing About America
- Exactly Where We Are in This Gold Bull Market
- Has Gold Really Been So Manic?
- Jim Rickards: Investors Fleeing GLD into Physical Gold
- Gold's Rocket Ride Poised to Surge Even Higher
- Has Gold Really Been So Frantic?
- Latest GoldMoney article - Rocky Banks.
- No Gold Summer Doldrums, End of Action for Mining Stocks?
- Maximizing Profits from The Real Gold and Silver Bull
- Keiser Report: Greed of no Boundaries (E179)
- Harvey Organ's: The Daily Gold & Silver Report
- Economic Disaster
- How to Find Opportunities from Blood, Debt & Fears
- Economic Pain For Upholding A Broken System
| FLASH: China knows about gold price suppression, and U.S. knows China knows (Wikileaks - 2009 cable) Posted: 05 Sep 2011 04:23 PM PDT "According to China's National Foreign Exchanges Administration, China's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the United States and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the renminbi."
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| Raw Text: Beijing Embassy Cable; China's Gold Reserves Posted: 05 Sep 2011 02:01 PM PDT 3. CHINA'S GOLD RESERVES "China increases its gold reserves in order to kill two birds with one stone"
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| Posted: 04 Sep 2011 07:23 PM PDT Let's begin with gold. You know, 11 years after the bull market began, people are only now beginning to wake up to the explosive investment potential. You've been a big fan of the yellow metal now for at least 40 years. Tell folks what you turned you on to gold.
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| “Large gold reserves are also beneficial in promoting the internationalization of the RMB.” Posted: 03 Sep 2011 07:59 PM PDT Wondering why gold at $1850 is cheap, or why gold at double that price will also be cheap, or frankly at any price? Wikileaks Discloses The Reason(s) Behind China’s Shadow Gold Buying Spree The fund management industry handles the bulk … Continue reading
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| Posted: 03 Sep 2011 07:52 PM PDT FLASH: China knows about gold price suppression, and U.S. knows China knows
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| It’s All About the Jobs… and Gold Posted: 03 Sep 2011 05:55 PM PDT The Flat Earth (Employment) Society Let’s Do a Little Time Travel The Implications of an Older Workforce How Do We “Fix” the Employment Problem? Some Thoughts on Gold Europe, New York, Conferences, Etc. This week we briefly look at yesterday morning’s dismal unemployment report, then drop back and survey some other very eye-opening data on employment. Some groups are (surprise) doing better than others. What would it take to get us back to “normal,” whatever that is? I give you a link to some webinars I will be involved in and finish with the answer to the question I am asked most often, “What do you think about gold?” I tell all. There are lots of topics to cover, so let’s get started with no “but firsts.” (Note: this e-letter may print out rather long, as there are LOTS of charts and tables.) [B]The Flat Earth (Employment) Society[/B] Unless you were completely out of touch this wee...
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| "Black Friday" - The Great Gold Crash...Of 1869 Posted: 03 Sep 2011 03:37 PM PDT When one thinks of gold crashes, one typically visualizes a trading floor from the 1980s onward, predicated by Nixon's nixing of Bretton Woods 40 years ago, which removed gold from the list of accepted currencies and converted it into a government-manipulated pariah, whose core function was to be suppressed in an ongoing (failed) attempt to make the dollar the undisputed reserve currency (something even China comprehends). Well, readers may be surprised to discover that one of the first, and probably biggest on a relative basis, documented gold crashes was not 3 weeks ago, nor back in October 2008, nor any time since the advent of Nixon, or even the Federal Reserve, but over 140 years ago, on September 24, 1869 when a massive gold price manipulation scandal created a financial panic. That day, also known as "Black Friday", was the culmination of an attempt to corner the gold market following the latest, however brief, termination of the gold standard, when during the reconstruction period following the US Civil War, the US dollar was backed not by gold, but simply by credit (sound familiar). The result was a surge, and then collapse in gold. What is the take home, if any? Perhaps that any time the government attempts to interfere with gold's status as a natural safety currency, it is not only gold price discovery that suffers, but virtually every other asset class, as central planning once again tries to order capital flows, however inefficiently, always, and without fail, leading to financial catastrophe. The chart below demonstrates the intraday swing from that long ago Friday 142 years ago:
For those curious to learn about one of the first record gold price manipulations... and crashes, can do so below, courtesy of Wikipedia.
h/t Nolsgrad
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| "Black Friday" - The Great Gold Crash...Of 1869 Posted: 03 Sep 2011 03:37 PM PDT
When one thinks of gold crashes, one typically visualizes a trading floor from the 1980s onward, predicated by Nixon's nixing of Bretton Woods 40 years ago, which removed gold from the list of accepted currencies and converted it into a government-manipulated pariah, whose core function was to be suppressed in an ongoing (failed) attempt to make the dollar the undisputed reserve currency (something even China comprehends). Well, readers may be surprised to discover that one of the first, and probably biggest on a relative basis, documented gold crashes was not 3 weeks ago, nor back in October 2008, nor any time since the advent of Nixon, or even the Federal Reserve, but over 140 years ago, on September 24, 1869 when a massive gold price manipulation scandal created a financial panic. That day, also known as "Black Friday", was the culmination of an attempt to corner the gold market following the latest, however brief, termination of the gold standard, when during the reconstruction period following the US Civil War, the US dollar was backed not by gold, but simply by credit (sound familiar). The result was a surge, and then collapse in gold. What is the take home, if any? Perhaps that any time the government attempts to interfere with gold's status as a natural safety currency, it is not only gold price discovery that suffers, but virtually every other asset class, as central planning once again tries to order capital flows, however inefficiently, always, and without fail, leading to financial catastrophe. The chart below demonstrates the intraday swing from that long ago Friday 142 years ago:
For those curious to learn about one of the first record gold price manipulations... and crashes, can do so below, courtesy of Wikipedia.
h/t Nolsgrad
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| David Morgan: “10 Rules for SILVER Investing” PART 2 Posted: 03 Sep 2011 01:04 PM PDT |
| Posted: 03 Sep 2011 12:57 PM PDT Summary: Long term - on major buy signal. Short term - on mixed signals. Risk management has prevented us from taking on new positions until we have lower risks set ups, or after a correction. Read More...
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| FLASH: China knows about gold price suppression, and U.S. knows China knows Posted: 03 Sep 2011 11:59 AM PDT 6:47p ET Saturday, September 3, 2011 Dear Friend of GATA and Gold: China knows that the U.S. government and its allies in Western Europe strive to suppress the price of gold, and the U.S. government knows that China knows, according to a 2009 cable from the U.S. Embassy in Beijing to the State Department in Washington. The cable, published in the latest batch of U.S. State Department cables obtained by Wikileaks, summarizes several commentaries in Chinese news media on April 28, 2009. One of those commentaries is attributed to the Chinese newspaper Shijie Xinwenbao (World News Journal), published by the Chinese government's foreign radio service, China Radio International. The cable's summary reads: "According to China's National Foreign Exchanges Administration, China's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the United States and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the renminbi." ... Dispatch continues below ... ADVERTISEMENT Lewis E. Lehrman on How to Solve the U.S. Debt Problem Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program. Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust. Lehrman says: Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust." To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata It's hard to believe that, two years later, China is still leaving so much of its gold with the Federal Reserve Bank of New York and the Bank of England when even little Venezuela has publicly figured out the gold price suppression component of the Western fractional reserve banking system and is attempting to repatriate its gold from the Bank of England and various Western bullion banks: http://www.gata.org/node/10281 http://www.gata.org/node/10286 It is already a matter of record that China dissembled about its gold reserves for the six years prior to the public recalculation of its gold reserves in April 2009 that prompted the commentary in Shijie Xinwenbao. At that time China announced that its gold reserves were not the 600 tonnes it had been reporting each year for the previous six years but rather 76 percent more, 1,054 tonnes: ZeroHedge, which seems to have broken the story of the Beijing embassy cable this evening, comments: "Wondering why gold at $1,850 is cheap, or why gold at double that price will also be cheap, or, frankly, at any price? Because, as the following leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar's reserve status. Putting that into dollar terms is, therefore, impractical at best and illogical at worst. We have a suspicion that the following cable from the U.S. embassy in China is about to go not viral but very much global, and prompt all those mutual fund managers who are on the golden sidelines to dip a toe in the 24-karat pool." The ZeroHedge commentary can be found here: http://www.zerohedge.com/news/wikileaks-discloses-reasons-behind-chinas-... In addition to fund managers throughout the world, this cable may be of special interest to the gold bears CPM Group Managing Director Jeff Christian, who says he consults with most central banks and that they hardly ever think about gold, and Kitco senior analyst Jon Nadler, who insists that central banks have no interest whatsover in manipulating the gold price. In fact, of course, gold remains the secret knowledge of the financial universe, and its price is actually the determinant of every other price and value in the world. The Beijing embassy cable can be found here: http://cables.mrkva.eu/cable.php?id=204405 And, just in case, at GATA's Internet site here: http://www.gata.org/files/USEmbassyBeijingCable-04-28-2011.txt CHRIS POWELL, Secretary/Treasurer Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf
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| Posted: 03 Sep 2011 11:15 AM PDT Sounds about right to me. Bob Chapman puts timing on his forecast. I'm not quite as sure about timing, but I do see the stock market 30% lower in the next year, some version of QE3 implemented, and gold above $2,000. I expect the next year to be really bad. The Fed is shooting blanks [...]
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| Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree Posted: 03 Sep 2011 09:22 AM PDT Wondering why gold at $1850 is cheap, or why gold at double that price will also be cheap, or frankly at any price? Because, as the following leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar's reserve status. Putting that into dollar terms is, therefore, impractical at best, and illogical at worst. We have a suspicion that the following cable from the US embassy in China is about to go not viral but very much global, and prompt all those mutual fund managers who are on the golden sidelines to dip a toe in the 24 karat pool. The only thing that matters from China's perspective is that "suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB." Now, what would happen if mutual and pension funds finally comprehend they are massively underinvested in the one asset which China is without a trace of doubt massively accumulating behind the scenes is nothing short of a worldwide scramble, not so much for paper, but every last ounce of physical gold... From Wikileaks:
Perhaps now is a good time to remind readers what will happen if and when America's always behind the curve mutual and pension fund managers finally comprehend that they are massively underinvested in the one best performing asset class. From The Driver for Gold You're Not Watching (via Casey Research) You already know the basic reasons for owning gold Рcurrency protection, inflation hedge, store of value, calamity insurance Рmany of which are becoming clich̩s even in mainstream articles. Throw in the supply and demand imbalance, and you've got the basic arguments for why one should hold gold for the foreseeable future. All of these factors remain very bullish, in spite of gold's 450% rise over the past 10 years. No, it's not too late to buy, especially if you don't own a meaningful amount; and yes, I'm convinced the price is headed much higher, regardless of the corrections we'll inevitably see. Each of the aforementioned catalysts will force gold's price higher and higher in the years ahead, especially the currency issues. But there's another driver of the price that escapes many gold watchers and certainly the mainstream media. And I'm convinced that once this sleeping giant wakes, it could ignite the gold market like nothing we've ever seen. The fund management industry handles the bulk of the world's wealth. These institutions include insurance companies, hedge funds, mutual funds, sovereign wealth funds, etc. But the elephant in the room is pension funds. These are institutions that provide retirement income, both public and private. Global pension assets are estimated to be Рdrum roll, please Р$31.1 trillion. No, that is not a misprint. It is more than twice the size of last year's GDP in the U.S. ($14.7 trillion). We know a few hedge fund managers have invested in gold, like John Paulson, David Einhorn, Jean-Marie Eveillard. There are close to twenty mutual funds devoted to gold and precious metals. Lots of gold and silver bugs have been buying. So, what about pension funds?
According to estimates by Shayne McGuire in his new book, Hard Money; Taking Gold to a Higher Investment Level, the typical pension fund holds about 0.15% of its assets in gold. He estimates another 0.15% is devoted to gold mining stocks, giving us a total of 0.30% – that is, less than one third of one percent of assets committed to the gold sector. Shayne is head of global research at the Teacher Retirement System of Texas. He bases his estimate on the fact that commodities represent about 3% of the total assets in the average pension fund. And of that 3%, about 5% is devoted to gold. It is, by any account, a negligible portion of a fund's asset allocation. Now here's the fun part. Let's say fund managers as a group realize that bonds, equities, and real estate have become poor or risky investments and so decide to increase their allocation to the gold market. If they doubled their exposure to gold and gold stocks – which would still represent only 0.6% of their total assets – it would amount to $93.3 billion in new purchases. How much is that? The assets of GLD total $55.2 billion, so this amount of money is 1.7 times bigger than the largest gold ETF. SLV, the largest silver ETF, has net assets of $9.3 billion, a mere one-tenth of that extra allocation. The market cap of the entire sector of gold stocks (producers only) is about $234 billion. The gold industry would see a 40% increase in new money to the sector. Its market cap would double if pension institutions allocated just 1.2% of their assets to it. But what if currency issues spiral out of control? What if bonds wither and die? What if real estate takes ten years to recover? What if inflation becomes a rabid dog like it has every other time in history when governments have diluted their currency to this degree? If these funds allocate just 5% of their assets to gold – which would amount to $1.5 trillion – it would overwhelm the system and rocket prices skyward. And let's not forget that this is only one class of institution. Insurance companies have about $18.7 trillion in assets. Hedge funds manage approximately $1.7 trillion. Sovereign wealth funds control $3.8 trillion. Then there are mutual funds, ETFs, private equity funds, and private wealth funds. Throw in millions of retail investors like you and me and Joe Sixpack and Jiao Sixpack, and we're looking in the rear view mirror at $100 trillion. I don't know if pension funds will devote that much money to this sector or not. What I do know is that sovereign debt risks are far from over, the U.S. dollar and other currencies will lose considerably more value against gold, interest rates will most certainly rise in the years ahead, and inflation is just getting started. These forces are in place and building, and if there's a paradigm shift in how these managers view gold, look out! I thought of titling this piece, "Why $5,000 Gold May Be Too Low." Because once fund managers enter the gold market in mass, this tiny sector will light on fire with blazing speed. My advice is to not just hope you can jump in once these drivers hit the gas, but to claim your seat during the relative calm of this month's level prices. h/t Simon via TF Metals Report
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| Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree Posted: 03 Sep 2011 09:22 AM PDT
Wondering why gold at $1850 is cheap, or why gold at double that price will also be cheap, or frankly at any price? Because, as the following leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar's reserve status. Putting that into dollar terms is, therefore, impractical at best, and illogical at worst. We have a suspicion that the following cable from the US embassy in China is about to go not viral but very much global, and prompt all those mutual fund managers who are on the golden sidelines to dip a toe in the 24 karat pool. The only thing that matters from China's perspective is that "suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB." Now, what would happen if mutual and pension funds finally comprehend they are massively underinvested in the one asset which China is without a trace of doubt massively accumulating behind the scenes is nothing short of a worldwide scramble, not so much for paper, but every last ounce of physical gold... From Wikileaks:
Perhaps now is a good time to remind readers what will happen if and when America's always behind the curve mutual and pension fund managers finally comprehend that they are massively underinvested in the one best performing asset class. From The Driver for Gold You're Not Watching (via Casey Research) You already know the basic reasons for owning gold Рcurrency protection, inflation hedge, store of value, calamity insurance Рmany of which are becoming clich̩s even in mainstream articles. Throw in the supply and demand imbalance, and you've got the basic arguments for why one should hold gold for the foreseeable future. All of these factors remain very bullish, in spite of gold's 450% rise over the past 10 years. No, it's not too late to buy, especially if you don't own a meaningful amount; and yes, I'm convinced the price is headed much higher, regardless of the corrections we'll inevitably see. Each of the aforementioned catalysts will force gold's price higher and higher in the years ahead, especially the currency issues. But there's another driver of the price that escapes many gold watchers and certainly the mainstream media. And I'm convinced that once this sleeping giant wakes, it could ignite the gold market like nothing we've ever seen. The fund management industry handles the bulk of the world's wealth. These institutions include insurance companies, hedge funds, mutual funds, sovereign wealth funds, etc. But the elephant in the room is pension funds. These are institutions that provide retirement income, both public and private. Global pension assets are estimated to be Рdrum roll, please Р$31.1 trillion. No, that is not a misprint. It is more than twice the size of last year's GDP in the U.S. ($14.7 trillion). We know a few hedge fund managers have invested in gold, like John Paulson, David Einhorn, Jean-Marie Eveillard. There are close to twenty mutual funds devoted to gold and precious metals. Lots of gold and silver bugs have been buying. So, what about pension funds?
According to estimates by Shayne McGuire in his new book, Hard Money; Taking Gold to a Higher Investment Level, the typical pension fund holds about 0.15% of its assets in gold. He estimates another 0.15% is devoted to gold mining stocks, giving us a total of 0.30% – that is, less than one third of one percent of assets committed to the gold sector. Shayne is head of global research at the Teacher Retirement System of Texas. He bases his estimate on the fact that commodities represent about 3% of the total assets in the average pension fund. And of that 3%, about 5% is devoted to gold. It is, by any account, a negligible portion of a fund's asset allocation. Now here's the fun part. Let's say fund managers as a group realize that bonds, equities, and real estate have become poor or risky investments and so decide to increase their allocation to the gold market. If they doubled their exposure to gold and gold stocks – which would still represent only 0.6% of their total assets – it would amount to $93.3 billion in new purchases. How much is that? The assets of GLD total $55.2 billion, so this amount of money is 1.7 times bigger than the largest gold ETF. SLV, the largest silver ETF, has net assets of $9.3 billion, a mere one-tenth of that extra allocation. The market cap of the entire sector of gold stocks (producers only) is about $234 billion. The gold industry would see a 40% increase in new money to the sector. Its market cap would double if pension institutions allocated just 1.2% of their assets to it. But what if currency issues spiral out of control? What if bonds wither and die? What if real estate takes ten years to recover? What if inflation becomes a rabid dog like it has every other time in history when governments have diluted their currency to this degree? If these funds allocate just 5% of their assets to gold – which would amount to $1.5 trillion – it would overwhelm the system and rocket prices skyward. And let's not forget that this is only one class of institution. Insurance companies have about $18.7 trillion in assets. Hedge funds manage approximately $1.7 trillion. Sovereign wealth funds control $3.8 trillion. Then there are mutual funds, ETFs, private equity funds, and private wealth funds. Throw in millions of retail investors like you and me and Joe Sixpack and Jiao Sixpack, and we're looking in the rear view mirror at $100 trillion. I don't know if pension funds will devote that much money to this sector or not. What I do know is that sovereign debt risks are far from over, the U.S. dollar and other currencies will lose considerably more value against gold, interest rates will most certainly rise in the years ahead, and inflation is just getting started. These forces are in place and building, and if there's a paradigm shift in how these managers view gold, look out! I thought of titling this piece, "Why $5,000 Gold May Be Too Low." Because once fund managers enter the gold market in mass, this tiny sector will light on fire with blazing speed. My advice is to not just hope you can jump in once these drivers hit the gas, but to claim your seat during the relative calm of this month's level prices. h/t Simon via TF Metals Report
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| Haynes and Norcini review metals' week at King World News Posted: 03 Sep 2011 08:57 AM PDT 4:50p ET Saturday, September 3, 2011 Dear Friend of GATA and Gold: In the weekly precious metals review at King World News, Bill Haynes of CMI Gold and Silver reports that the coin and bullion market is stable, while futures market analyst Dan Norcini continues to dispute claims that there is a bubble in gold. Norcini also senses that the gold shorts are setting up defenses at $1,900. You can listen to the interviews at King World News here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/3_KW... Also at King World News, full audio of this week's interview with geopolitical analyst Jim Rickards has been posted here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/3_Ji... And full audio of this week's interview with geologist and mining entrepreneur Keith Barron has been posted here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/3_Dr... 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 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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| Gold Stocks, the Best Business For An Inflationary Environment Posted: 03 Sep 2011 08:49 AM PDT Buffett has always said that you should find a company that has pricing power that can offer protection in an inflationary environment. What he means with this is you should find companies which can pass higher costs on to its customers. He once said that the ideal asset in an inflationary environment is a royalty on someone else’s sales.
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| What the "Crisis and Collapse" Crowd Is Missing About America Posted: 03 Sep 2011 08:42 AM PDT By Dr. David Eifrig, editor, Retirement Millionaire Saturday, September 3, 2011 Judging by my reader feedback and conversations with friends and family, the consensus among investors is clear… People are terrified right now. When the news is filled with upheaval… like the euro debt crisis, anarchy in London's streets, the downgrade of America's credit, and the stock market's manic correction… it's easy to be swept away by fear. But if you've read DailyWealth for more than a month, you realize that investing during times of fear and panic is the way to huge investment returns… just ask the greatest investor of our time, Warren Buffett. Periods of turmoil and uncertainty are routine throughout history. But rather than crawl into a bomb shelter with just cash, gold, and canned food, the smart bet has always been on the triumph of human potential. Buffett reminded me of that recently. Since 1965, Buffett has regularly applied his techniq...
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| Exactly Where We Are in This Gold Bull Market Posted: 03 Sep 2011 08:40 AM PDT By Dr. Steve Sjuggerud Friday, September 2, 2011 "Son, I'm behind you in everything you do… But there's no way I'm buying any gold." My dad told me that back in 2002 (and in 2003… and in 2004…) "Son, I bought gold Krugerrands in the late 1970s, and I'm still down on 'em 25 years later. Gold is never going up." In the nearly two decades I've been analyzing investments, my dad bought just about everything I recommended. But he drew the line when I recommended gold in 2002. I thought, "Wow. Now this is what a bottom looks like… when even my dad doesn't trust me on this one." Back then, the gold story was simple to me… Gold is financial catastrophe insurance. When is catastrophe insurance the cheapest? When there hasn't been a financial catastrophe in decades. In the early 2000s, that's where we stood. So I recommended buying gold. It wasn't about being a gold bug. It was about buying something cheap. Back then, my parents bought...
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| Has Gold Really Been So Manic? Posted: 03 Sep 2011 08:38 AM PDT by Ben Traynor BullionVault Friday, 02 September 2011 There's been a lot of talk about how volatile gold's been this summer. The numbers tell a different story... GOING BY some of the recent headlines, you'd think gold prices had just gone through the most hectic and almighty summer. Yet volatility is running nowhere near the levels it hit when Lehmans collapsed in late 2008. Back then you had daily price swings– taken as the difference between the afternoon London Fix price one day to the next – coming in above 4%...above 5%...and, on two occasions (18 Sep. and 24 Nov.) even over 6%. In a single day. The biggest one-day move of summer 2011 – the 5.6% between August 23 and 24 – was, granted, a biggy. Also of note was the 3.4% move two days later as the price recovered. But these were exceptions. You have to go back to the first week of October 2009 for another move larger than 3%. And, of course, these are one day moves. Some days are exceptional – they do ...
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| Jim Rickards: Investors Fleeing GLD into Physical Gold Posted: 03 Sep 2011 08:32 AM PDT King World News has just released an interview with Jim Rickards: Sr. Managing Director for Omnis, Inc. & Author of "Currency Wars: The Making of the Next Global Crisis"
You can listen to the interview HERE. (On the left side of the page, half way down, click on the small purple logo that reads, "Listen to MP3 – CLICK HERE")
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| Gold's Rocket Ride Poised to Surge Even Higher Posted: 03 Sep 2011 08:28 AM PDT Gold continues to demonstrate its true strength. One month ago, Christopher Ruddy, chief executive officer and president of Newsmax, inquired as to the direction of the market.
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| Has Gold Really Been So Frantic? Posted: 03 Sep 2011 08:26 AM PDT There's been a lot of talk about how volatile gold's been this summer. The numbers tell a different story... GOING BY some of the recent headlines, you'd think gold prices had just gone through the most hectic and almighty summer.
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| Latest GoldMoney article - Rocky Banks. Posted: 03 Sep 2011 08:20 AM PDT This article is posted at GoldMoney.com Rocky Banks 2011-SEP-03
 There is a contrarian adage that when no one expects an event, it might happen, and when an event is commonly expected it might not happen. This could apply to the much-heralded banking collapse. But since the Bear Sterns and Lehman crisis the banks themselves have been busy rebuilding their core capital and adjusting their business activities in line with the new Basle III regulations and the Dodd-Frank Act in the US. In Britain, regulation of the banks has moved back from the FSA to the Bank of England, where it belongs. Both the banks and their regulators, having had a very nasty shock three years ago, have taken big steps to avoid a second crisis. It is not as difficult for central banks to prevent a collapse of the banking system as many observers believe. The key to it is to buy time, which the Bank of Japan did in the 1990s when it faced a collapse of the major Japanese banks. Banks are also major beneficiaries of monetary inflation, which partially justifies the quantitative easing policies of the Fed and Bank of England. Furthermore, financing governments has always been a lucrative activity, contributing to gross returns on capital of as much as 20% for the investment banks. It only requires a few years in this monetary environment to rebuild healthy capital ratios. Today, the European banks pose the biggest risk to the global financial system, as the sovereign debts of the weaker nations edge towards default. But even here, the ECB is not toothless, and can do much to prevent a Europe-wide banking crisis, working with national central banks to ensure liquidity is always available for the banks that need it. This is already happening with Greece’s banks, which have seen a steady withdrawal of deposits since Greece’s first bail-out. The real test will be an actual sovereign default, which is a genuine concern. But here again, money that is withdrawn from one bank perceived to be in trouble and deposited in a stronger competitor merely gets recycled to back to the first bank, if not through the money-markets, through the central bank. The ECB may have to copy the Bank of Japan twenty years ago, by pretending that banks’ individual problems don’t matter, because they are back-stopped by the central bank. After a while, depositors, bond-holders and investors might stop worrying, if only because nothing happens and the crisis is no longer news. However, it would be wrong to be complacent about the substantial risks facing the global banking system, and there is still the possibility of a second systemic crisis. But the bigger crisis by far, which is beyond anyone’s control is in government finances, which ironically, should continue to be a source of substantial profits for the banks – so long as they survive. 3 September 2011 Alasdair Macleod 
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| No Gold Summer Doldrums, End of Action for Mining Stocks? Posted: 03 Sep 2011 08:13 AM PDT This will be an August to remember – no summer “dulldrums” this year. Gold has risen roughly 12% this month and nearly 30% year to date. Gold prices had a trading range of more than $300 in August. Stocks are a different story. Wall Street ended the month with losses that came with an extended rout the first three weeks, with the current batch of gains only denting the damage. Since the start of July the FTSE 100 has lost 10.6%. The S&P is down 8.2%. The NIKKEI 225 has lost 8.8%, while the German DAX has plunged 22.6%. By contrast, gold prices have gained nearly 23% over the same period.
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| Maximizing Profits from The Real Gold and Silver Bull Posted: 03 Sep 2011 08:08 AM PDT “There has been a pattern developing in the Federal Reserve’s weekly money supply reporting, however, that is worthy of note, with surging M2 growth being reported in the Fed’s now-broadest money measure. The growth largely can be accounted for by an apparent flight from large time deposits and institutional money funds (officially ignored components of the Fed’s once-broadest money measure, M3). The cash flows here are suggestive of concerns over banking-system solvency (see Hyperinflation Watch). (Ed. note: Indeed, the U.S. M2 Money supply accelerated 2.2% in July, 2011 from the prior month; the fastest pace in 52 years.)
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| Keiser Report: Greed of no Boundaries (E179) Posted: 03 Sep 2011 07:53 AM PDT Max talks to Mike Maloney of GoldSilver.com about how high gold has to go to account for all the money printing since Bernanke took over the Fed.
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| Harvey Organ's: The Daily Gold & Silver Report Posted: 03 Sep 2011 07:21 AM PDT All Hands on Deck..Economy Imploding/DEFCON ONE imminent/gold and silver skyrocket
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| Posted: 03 Sep 2011 06:54 AM PDT Robert McRoberts Yep, we are ruining the earth. We have destroyed everything in our path. Why are we teaching kids to recycle but not doing it ourselves? We ship our garbage to Washington and they sort it out and ship it to China so they can build garbage to send back. We have shut down all things that have created jobs because some spoiled people thought it was ugly. We are fed so much bull! on how we are ruining the world. Why do we have any fish left in our streams if a gold mine is bad? Did the gold rush 120 years ago not turn over every rock in every stream and silt up every river from California to way past the Yukon? But yet we still had record runs up until the last few years of all these regulatory restriction. Why are there still fish in the streams the loggers of the 50's and 60's destroyed? Why is logging so bad -- our forest are so thick we can not walk through them. Mud slides happen were loggers have never logged. Why are we not training more workers in school to move up and lead our community? Sorry, but our fire chiefs should be locals. Our police chiefs the same - sure we may have to train them. Most of our city engineers are not even from here. Maybe we have sold are souls or we just don't think. We give no hope for the children in our community. Our teachers are not even from here. It seems as if we are just stupid, well I know we're not. We just sit back and hope it will get better. No one wants to be the one to speak up and stand out. Well that's just how I feel, and I'm speaking up. 
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| How to Find Opportunities from Blood, Debt & Fears Posted: 03 Sep 2011 06:51 AM PDT By Frank Holmes CEO and Chief Investment Officer U.S. Global Investors My long-time friend and mentor Seymour Schulich forwarded an email to me that puts today’s U.S. government debt mountain startlingly into context. By removing several zeros, one can place the debt situation in terms we all can understand—that of a family’s income and expenses. A family who takes in an annual income of $21,700 but spends $38,200 will soon be in dire straights. The large outstanding balance on the credit card only exacerbates the situation. Clearly, spending cuts need to be made, but eliminating only $385 from the family’s budget would be a drop in the bucket. Either a substantially higher amount of income needs to be made, or the family will have to learn to live with less. Of course, the fiscal situation is more complicated when it comes to a “family” of 311 million. It is only one part of a large conundrum for the global economy. Gold is ...
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| Economic Pain For Upholding A Broken System Posted: 03 Sep 2011 06:11 AM PDT by Bob Chapman, The International Forecaster:
Read More @ TheInternationalForecaster.com
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Jim's been a direct participant in many of the most significant financial events over the past 30 years including the 1981 release of hostages from Iran and was also principal negotiator for the gov. sponsored bailout of LTCM. His clients include private investment funds and banks, gov. directorates in nat'l security and defense. He's an advisor to the Committee on Foreign Investment in the United States and Support Group of the Director of National Intelligence and testified before Congress on the causes of the financial crisis.
We find it amusing that Mr. Bernanke in his press conference after the FOMC last week said, US bank exposure to Greece was minimal. We guess he forgot part of that $16.1 trillion and the credit default swaps from NYC banks to the tune of $150 billion. In addition we do not see the US and England escaping the fallout from Europe. From the very beginning 1-1/2 years ago we told Greece to default and that it was inevitable. Of course, the Greek government did not do that, because they wanted to hand their Illuminist friends Greek assets on a silver platter – that is public and private assets. When Greece goes eventually the other five will fall as well. Banks all over Europe are at risk even German savings banks, many US money market and pension funds have as much as 60% of their assets in instruments belonging to the six weaker nations. That represents a far greater risk than what Mr. Bernanke had admitted. The biggest question is what will the German Federal Court say? Investors had best check with their funds or adviser, or banks and S&L's to determine just how hard they can get hit. If the Court says it is ok, then in Germany it has to be voted on. It probably will be rejected and that creates a new set of problems.| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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