Gold World News Flash |
- Weekly metals review and audio of Sprott, Embry interviews at King World News
- Warning for Silver Investors
- Michael Pento: Here is Why Gold & Mining Shares Will Soar
- Greek prime minister George Papandreou under fire amid rumours that creditors are about to pull the plug
- Michael Pento - Here is Why Gold & Mining Shares Will Soar
- Broken Markets (by Intervention and Manipulation)
- Silver Update 9/9/11 - ABCs
- Economic Roadkill
- Sean Corrigan On The Tenth Anniversary
- Greece Debt Default On Deck.... Stock Market Anxious...
- Fed 'Twisting' Will Stimulate Economic Activity for Bond Market Traders
- Bank Of Countrywide Asbestos
- Saab on Brink of Collapse
- More Free Gold From SilverGoldBull
- Shockwaves Felt In Markets for a Decade
- Sky's the Limit for Precious Metals Now: Eric Sprott
- Weekly Bull/Bear Recap: September 6-9, 2011
- Eric Sprott: “We're Heading Over the Cliff Here. The Only Thing Likely to Survive is Precious Metals”
- Gold Withstands Massive Attack / Global Bourses Falter
- WikiLeaks Cable Confirms: U.S. & Europe Trying to Suppress Price of Gold
- The Best of the Week
- Gold Stocks Prognosis: Catalyst, Please
- More on Solyndra – The next move
- Sell Euro to Buy Australian Dollar
- Silver Update 9/8/11 – Wimpy Economics
- 9/11 and the War on Terror: Polls Show What People Think 10 Years Later
| Weekly metals review and audio of Sprott, Embry interviews at King World News Posted: 10 Sep 2011 01:57 PM PDT 9:55p ET Sunday, September 10, 2011 Dear Friend of GATA and Gold (and Silver): The King World News weekly precious metals review finds Bill Haynes of CMI Gold and Silver reporting a quiet week on the retail front but futures market analyst Dan Norcini shaking his head at brazen intervention in the gold market by central banks. You can listen to their commentary at the King World News Internet site here: http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/10_KWN_W... Meanwhile, audio of the recent King World News interview with Sprott Asset Management CEO Eric Sprott has been posted here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/10_E... And audio of the recent King World News interview with Sprott Asset Management's chief investment strategist, John Embry, has been posted here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/10_J... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Be Part of a Chance to Discover Multi-Million-Ounce Gold and Silver Deposits in Canada Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600. 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% nickel equivalent from surface to the footwall contact. Within this larger swath of mineralization the hole encountered 49.5 meters of 1.27 grams per ton platinum group metals plus gold, 0.71% nickel, and 0.45% copper (or 1.11% nickel equivalent). 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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| Posted: 10 Sep 2011 12:05 PM PDT |
| Michael Pento: Here is Why Gold & Mining Shares Will Soar Posted: 10 Sep 2011 10:47 AM PDT from King World News:
Michael Pento continues: Read More @ KingWorldNews.com
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| Posted: 10 Sep 2011 08:26 AM PDT Greece on verge of default as doubt grows over €8bn bailout Is this thing gonna collapse this weekend? Seems like we’re building up to ‘Lehman’ moment.
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| Michael Pento - Here is Why Gold & Mining Shares Will Soar Posted: 10 Sep 2011 08:23 AM PDT  With stocks markets reeling and gold closing the week near the $1,800 level, today King World News interviewed Michael Pento, CEO of Pento Portfolio Strategies. When asked where he sees things headed, Pento stated, "Chicago Fed President Charles Evans said earlier this week that the central bank should increase its target rate for inflation above the current 2% level in an effort to get the economy back on track. Imagine that, the Fed actually believes what the economy really needs is more of the inflation that brought it to its knees in the first place."
This posting includes an audio/video/photo media file: Download Now |
| Broken Markets (by Intervention and Manipulation) Posted: 10 Sep 2011 08:18 AM PDT
By thetrader.se
It was a "strange" Friday session. European Trading started off in a quite no volume HFT manner, as is usual during these days. As news flow started increasing during the course of the day, investors had to digest news of Stark resigning, Greece going bust, Trichet's confusing conference from Thursday, Italian banks halted, renewed spikes in European CDS prices etc. Suddenly the boring session turned into mini Flash Crashes across Assets. As the Euro started sliding, the DAX accelerated the fall, JPY began trading very flashy, while safe heaven Gold lost 50 USD in 5 minutes. The Market is starting to show some very "disturbing" patterns. Manipulation and Intervention is causing an ever increased volatility in the Market, and risks bringing the system down. With correlations at historical highs, highest correlation levels in the SPX since the crash of 87, all moves are even more exaggerated by the HFT Community. The Market Microstructure is broken by the multiple interventions and manipulations of Assets. We are risking the big breakdown as resonance in the Market increases.
"After rallying nearly 100 USD last week from 1795 to 1895 with demand coming from the official sector and some leveraged players rebuilding length following the severe prior correction we traded to new all time highs of 1922 on Tuesday shortly before the Swiss Franc intervention. The immediate aftermath was in complete contradiction to prior recent episodes of intervention and what anyone would have expected. Instead of spurring a further gold price rally on the basis that it was one of the few remaining safe haven "currencies" we saw a 50 USD collapse in minutes. The source of this flow seems hard to pin down with some speculating over whether "authorities" were concerned about the signals of an accelerating gold price and its impact on other fragile markets. Soon after, much of the losses were recovered but the psychological damage had been done and there followed a series of liquidations from within the leverage space with gold closing down 50 USD on the day. This was then exacerbated by a near 60 USD flash crash within 2 minutes during the Asian session." Goldman Sachs
The first of several min Flash Crashes in the DAX on Friday.
Late into the European Trading session, the JPY started the Flashy behavior. If the above mentioned is due to Interventions and/or (lack of) Manipulations we don't know, but these patterns are not good for trying to create a stable environment for investors. We can't but agree with Jessie, the Market is run by Psychopaths among Us. We are rather concerned with the big Black Swan event around the corner, which will be magnified by the HFT Community, and ultimately create the big Panic. This market has recently started bringing down even the highly experienced Traders. Let's see what next week has to offer.
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| Posted: 10 Sep 2011 07:20 AM PDT
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| Posted: 10 Sep 2011 07:05 AM PDT Economic Roadkill
Courtesy of guest author MIKE WHITNEY Originally published at CounterPunch If you really want to know what's going on with the economy, you should take a look at the Fed's Consumer Credit Report that was released on Thursday. Yes, it's a real snoozer, but it does reveal the truth behind all the "recovery" hype. So, let's cut to the chase: When unemployment is high and wages are stagnant, the only way the economy can grow is through credit expansion. That's why economists pay so much attention to the credit report, because it lets them see if we're making progress or not. Right now, we're not making any headway at all. Of course, the cheerleading media see things differently. Here's a clip from an article in Bloomberg that puts a positive spin on a truly dismal report:
Hooray! The US consumer is off the canvas and borrowing again. Let the celebration begin! Not so fast. The uptick in credit spending is entirely attributable to subprime auto loans and government-backed student loans, both of which are a mere extension of the same Ponzi-finance scam that put the global economy into cardiac arrest. Every other area of credit expansion is on-the-ropes. Commercial banks, finance companies, credit unions, savings institutions, nonfinancial businesses, and pools of securitized assets are all flatlining. No progress at all. In other words, the only way to induce tightfisted consumers to spend money they don't have is by either seducing them with "No-down, easy-pay, 60-month-no-interest" financing or by hoodwinking them about the 6-figure income they'll net after they finish their college education at Lunkhead U. Case in point; check out this article on subprime auto loans in Reuters:
We haven't even paid for the last subprime meltdown, and we're on to the next? Might a little regulation be a good idea here? Maybe some standardized loans so the banksters running these loan-laundering operations don't blow up the system again and come around begging for more bailouts? Oh no, of course not. That would be an intrusion on the divine workings of the free market. Bottom line: Yes, it is possible to boost credit if one is willing to lend gobs of money to anyone who can fog a mirror, but is that really an indication of "economic recovery" or just more proof that the system is staggeringly out-of-whack? And then there's the student loan biz, as big a fleecing operation as ever existed. This is where the real pros hang-out now, luring their prey with promises of hefty salaries after they graduate and then loading them up with enough debt to make their eyes pop out. But, hey, let's not forget the upside of all this chicanery; all that fleecing beefs up the Fed's Credit Report and makes it look like the economy is bouncing back. That's got to be worth something, right? And, besides, everyone is "doing it"; fleecing college kids, that is. Here's an excerpt from an article in The Atlantic:
Do you think these pillars of rectitude would ever dream of warning our kids that they might they might be getting in-over-their-heads, that they might want to reconsider what they're doing so they don't spend the rest of their lives trying to get out of the red? Nah. It's not my problem, they figure. Besides why rock the boat. If these kids ever figure out that they just flushed $100,000 down the latrine for a mid-level management job at Herfy's that pays $22K per year with no-time-off, they might just go ape and torch our lovely new sports pavilion. We can't have that, now can we? Here's more from another article in The Atlantic:
Young people are just the latest subset of victims in Big Capital's endless search for roadkill. No sense getting all huffy about it. But it does help to shed a little light on underlying condition of the economy vis a vis the Fed's Credit Report. Indeed, credit is expanding, but only in the areas where the sinister lifting of consumer protections (deregulation) has allowed finance vultures to do their dirty work. As for the economy, it still stinks. But, then, you already knew that. ***** See also Michael Panzner's Another Disaster in the Making Here's a graph from Michael:
Picture credit: Image (top) from www.michiganimaging.com Image (bottom) from http://users.frii.com/donlight/archive/97arc.htm Via: Worms & Germs Blog. Learn what to do when you find a dead animal on the road here. Okay, okay, here's a hint about what not to do:
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| Sean Corrigan On The Tenth Anniversary Posted: 10 Sep 2011 05:54 AM PDT Sean Corrigan of Diapason Securities, on the ten year anniversary, a look back on the day after. A Modest Craft Sept 12 2001 It is at times like these that we in the financial sector are humbled in the presumption of our own importance and of the meaning of our works. Daily, we chase the ebb and flow of symbols and numbers across the screens and ticker tapes of the world, seeking to distill from them a fleeting pattern, or to recognize within them some more enduring form. Rarely, if ever, amid the hubbub of the trading room or the raw intensity of the Pit, do we reflect on the power of such symbols. We crane for each flickering change in a terse alphanumeric—USZ1, DELL, CPI +0.2%, DAX +150—each of us striving uselessly, but compulsively, to see it before our peers do, or, with a little more purpose, to interpret it more quickly than they. These electronic lights represent a stock, a bond, a currency; of that much we remain aware. But the stocks or bonds themselves are but symbols: a claim to the ownership of a minuscule fraction of some sprawling enterprise, or a right to receive payment from it in days to come. Again, that payment—in dollars, or euros, or yen—is another symbol: a sign that men have "laboured the earth," in Jefferson's trenchant phrase, and that they seek to exchange the fruits of those labours for our own. This is where the chain of ciphers and sigils leads us at last, then—to the efforts of ordinary men and women going about their daily lives, working at one thing, the thing at which they are most competent, in order to swap their efforts for other things, for a whole diversity of things, made, in turn, by countless, faceless others doing what they are good at, too. By such free and open exchange, best conducted using fair and honest chains of symbols so that no man is unwittingly deluded or knowingly defrauded in the act, we each seek to serve our enlightened self-interest and satisfy both basic needs and wider aspirations. We find the opportunity where we are most rewarded, and we send out our labours into the vast, teeming, immaterial, immanent Market that is our world. And—O Mirabile—what things come back, in what profusion, pouring in from all corners of the globe, from people we have never seen, whom we will never see, and who equally are oblivious to our very existence also. This is the majesty of the free market, of capitalism, this self-organizing scheme that most fully utilizes our jewelled planet's greatest resource—humanity itself—so that the masses of today live better than all the fearsome khans and haughty emperors of old. But on Tuesday, out of a clear autumnal sky, all this was put at deadly hazard by earnest men, albeit men whose earnestness had been twisted into suicidal hatred by the potent brew of fanaticism and despair. By their intricate assault on the good people of the U.S., these men showed that they were versed in the power of symbols all too well. To attack the Pentagon—a cabbalistic form, if ever there was one—was shocking enough, displaying what guerrilla fighters have shown from time immemorial: that all of Caesar's legions cannot guard against the man who fears nothing but to fail, and who holds his life most gloriously spent in depriving his enemies of theirs. But far more shocking yet was the strike deep into the very heart of trade, of commerce, and of finance that those few crammed canyons of soaring steel and glittering glass at the tip of Manhattan represented, not just to America, but to the entire world. This was not just an abomination: in many ways, it was a deliberate act of sacrilege. In tens of minutes, before unbelieving eyes staring from the streets below or gazing in horrid fascination at TV screens across the globe, fireball billowed into smoke and then collapse: crushing, utter, complete and roaring collapse. As though struck from where they stretched unto the very portals of some jealous god to choking dust and stumbling rubble, they fell in ruinous descent, and Hope itself seemed perished. The Twin Towers, standing symbolically over Wall Street, were a 1,300-foot rendition of those two, short verticals that transform a mere "S" into a dollar, transmuting it to a symbol for work and wealth and well-being across the Earth. The enormity of the towers' swift destruction has been such as to suspend analysis. We have yet to truly register what has been done, how many lives have been lost in screaming (if mercifully brief) terror, how many countless other lives will bear the mark of what was wrought, shivering in the cold snatch of fear each time they see the suddenly naked skyline of New York. It would be heartening to think that sober wisdom will now occasion restraint in the councils of the powerful, that the understandable desire for retribution, for lex talionis, to be invoked neither will lead to rash and unjust acts that only serve to excite more hatred, nor open up the way for the ever-eager State to intrude more insidiously in people's lives at home, while snarling ever more belligerently at foes—real or imagined—abroad. It would be heartening to believe that in America of all nations, the brash, young, self-confidence of its people will swiftly reassert itself, that temperance will season justice, and that this brief, vicarious brush with mortality will give rise to a more measured outlook on life. It would be heartening to think that, having been shocked by just how fragile is the framework on which we build our dreams, we will become less prone to forcing them upon others. Our fear must be that, in a world already made fractious and divided by the inexorable, UN-inspired, left-liberal-sanctioned politicizing of race and creed and gender, a world made insecure by the erosion of freedom and the imposition of alien values by the Guardians of our global Platonic republic, yet more discord is sown. We must also fear that, in a world made resentful by seeing the fruits of its labours channelled to vainglorious corporate demi-gods who strut the stage like Achilles simply because a hyperactive credit system has grossly inflated their stock price, Capitalism is made to take the blame. Capitalism is about the better production of wealth and its distribution through unrestricted exchange. It is about the multiplication of output that comes about by the division of labour. It is about the preservation of capital—those mental and physical tools that build each successive flight on our long stairway out of penury and deprivation—and it achieves that preservation only by the common virtue of thrift and the duty of stewardship on one hand, and by the banishment of envy and the sanctity of property upon the other. Capitalism is about "labouring the earth" more fruitfully so that fewer men go needy, so that the next fanatic finds less willing recruits, so that amid bustling commercial intercourse, barriers of class and race and ignorance are dissolved into mutual respect and benefit. Capitalism is nothing to do with the agents of the Crown who sail alongside the honest argosies of trade. Capitalism is nothing to do, either, with the forced acceptance of any creed or code of law, save that of the honest self-interest by which both buyer and seller achieve an increment of value in their exchange. For we must realize that Capitalism, this most certain route to prosperity devised by man, is also the victim of the exactions of the State and the depredations of the credit system. Why else, even before yesterday's barbaric deeds, were we increasingly in peril of our livelihoods, our investments, and our savings? Sadly, that is a verity too rarely glimpsed when the battle ensigns of the fleet and the Jolly Rogers of the corsairs are concealed amid the merry, ingenuous bunting of the mass of ordinary merchantmen seeking innocently to ply their trade. From this passing meditation on these matters, which this week's dark happenings have prompted, we shall soon return to the business of chasing symbols and trying to make sense of them. That is, after all, our modest craft in the rich whirl of the market. For today, we pray for the maimed and the bereaved. We are anxious for the path of the economy and our immediate prosperity. We fret that liberty will once again be the most enduring loser. In memoriam, Sean Corrigan Chief Investment Strategist Diapason Commodities Management S.A.
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| Greece Debt Default On Deck.... Stock Market Anxious... Posted: 10 Sep 2011 05:24 AM PDT Late this morning, after the market started recovering from its early move lower to start the day, there was news from Germany that Greece was likely to default by some time next week. The Dow fell two hundred points in a very short period of time as traders and investors started removing themselves from long plays. Hard to blame them, of course, as this type of news, should it become fact, would be devastating for markets around the world. The market spent the rest of the day spinning and churning once we got to -300 on the Dow. There was no collapse past that initial move lower off the news, but no real rally either.
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| Fed 'Twisting' Will Stimulate Economic Activity for Bond Market Traders Posted: 10 Sep 2011 05:22 AM PDT The consensus view is that after adjourning from its September 20-21 meeting the FOMC will announce a plan to lengthen the maturity structure of its securities portfolio by increasing the proportion of longer-maturity securities in the portfolio. Importantly, the size of the overall securities portfolio is likely to be held constant. Thus, shorter-maturity securities will be sold and/or allowed to run-off and be replaced with a like dollar amount of longer-maturity securities. Presumably, the intended purpose of these securities transactions is to push down yields on longer-maturity securities. The FOMC most likely would prefer that the yields on shorter-term securities remain at their current very low level, but would not be terribly disturbed if these yields drifted up a bit as more of these shorter-maturity securities were dumped into the market from the Fed's portfolio. The presumed purpose of this "twisting" of the shape of the yield curve is to stimulate the demand for longer-lived real assets such as houses, durable consumer goods, business capital equipment and nonresidential real estate by lowering the interest rates on longer-term fixed rate loans and securities.
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| Posted: 10 Sep 2011 05:02 AM PDT Ten days ago Zero Hedge presented the idea of applying an Asbestos-type settlement to the neverending lawsuits against Bank of America which if continue at the current rate will result in the swift and brutal end of the massively undercapitalized bank by a thousand Rep and Warranty litigation cuts. Yesterday, we were happy to see that the idea has received far broader billing, and is being taken up by non other than Reuters: "When some look at all of the litigation arising from Bank of America's big role in the U.S. mortgage mess, they start thinking of asbestos and how thousands of lawsuits arising from that cancer-causing product brought down many manufacturers more than a decade ago. The solution back then to dealing with claims filed by more than 750,000 workers exposed to asbestos was the creation of dozens of "asbestos settlement trusts," which have paid out tens of billions dollars in damages. Some of them are still going strong today. The asbestos trusts were seen as an innovative approach to deal with seemingly endless litigation and provide a measure of compensation to sick workers and their families. The system for dealing with claims also allowed some of the hobbled manufacturers to emerge from bankruptcy largely free of the crushing weight of lawsuits." In other words, the choices for Bank of America are now two: either it prepares for a slow, painful, insolvency as all of its cash is bled out in litigation fees and "one-time" lawsuit charges, or, almost just as bad, it funds a massive trust, ringfencing all past, current, and future claims, and which is funded...by nearly all of Bank of America's equity. Yes, the end result will be a near wipe out of the existing Bank of America stock, but it will not be bankruptcy! In essence, what BAC will do is a bankruptcy remote "prepackaged bankruptcy" in which it spins off its contingent liabilities, with an equity buffer of whatever the litigants choose (most likely up to about 95% of the firm's current equity value), and proceeds to grow as a simple bank (with or without Merrill) and fund itself through retained earnings, in the process shedding off the "cancer" that are $1.2 trillion in toxic mortgages. The result of this would be a BAC share price of under $1 but that is inevitable. The alternative: freefall chapter 11 and technically 7 (which will never be allowed by the administration, sorry Chris Whalen), means BAC trades to $0.00, and the status quo system of crony communism is finished. As a reminder, from Zero Hedge:
And some more from Reuters on the theoretical underpinnings of this idea..
And practical...
To be sure, an Asbestos resolution is not a magic bullet, and will still cost existing equity (and Buffett) virtually their entire investment:
Alas, Buffett's idiotic investment betting on yet another taxpayer funded bailout has derailed the train for the time being:
So for the time being the litigation push is delayed. Although likely not for long: BAC will soon need to access the capital markets very aggressively, which means its stock will plunge even more on daily headline risk:
One thing is certain: anyone calling for a prompt return of BAC to a $20/30/share price is certainly insane (we refer to Dick Bove's appearance on Fox News yesterday), and should never get media exposure again (just as a media desperate Dick Bove had promised months ago only to have not one but two daily showing on the ponzi channels in an attempt to get more gullible Americans to follow Buffett in throwing their money down the black hole). Also certain is that no matter what one believes, the Bank of America matter is one of cash flows: not enough (A) coming in, and more than enough (B) leaving. Regardless of how one spins it, as long as B>A, the stock price will drop ever more until bankruptcy eventually becomes an inevitability. As such any attempts to stop the bleeding should be enforced. However, pathetic attempts such as the $8.5 billion settlement only provoke and infuriate the plaintiff class (at least those who are not desperate in imposing a Res Judicata) and make any real cash retention options next to impossible. In the meantime, two things are certain: all else equal (and with Bernanke around, they never are), the stock will continue dropping, and the CDS will continue widening until it is too late.
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| Posted: 10 Sep 2011 04:55 AM PDT David Jolly TAKING a bleak view of Saab Automobile's prospects for recovery, a Swedish court has rejected the troubled car maker's application for protection from creditors. The decision sharply narrows its room for maneuvering and pushes it a step closer to financial collapse. Saab employees have not been paid for August, and the company's unions had been considering legal action that could have forced the company into liquidation when the bid for protection from creditors was announced on Wednesday. One of Saab's unions will decide within a few days whether to ask that Saab be declared bankrupt, said Leif Hakansson, a spokesman for the IF Metall North Alvsborg union. ''We regret that Saab Automobile is not going to get the time it needs until the funding from Pang Da and Youngman arrives,'' he said in a statement. 
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| More Free Gold From SilverGoldBull Posted: 10 Sep 2011 04:42 AM PDT
If there is one thing we have learned about our good friends at SilverGoldBull.com it is that they not only like selling gold and silver to people, but they also like giving it away. So when we announced that Great Panther Silver had offered to take over from SGB as this year's sponsor of our "Miners Challenge", it was not a surprise to see a note in my inbox a few days later from Bobby Belandis of SilverGoldBull. It seems that SGB has once again gotten the "itch" to give away some more of their bullion. While Great Panther has brought a bunch of its silver to give away in our miners contest, SilverGoldBull has decided to give away some of its gold. This will be very convenient for those members of our audience who want to win prizes from both contests – but don't want their own "silver/gold ratio" to get out of whack. Bobby noted that SGB was hosting this contest on their own site this time, rather than on our site. My reply was that this would not be a problem, as Bullion Bulls Canada readers are neither "too proud" nor "too lazy" to follow the SilverGoldBull banner to their site to register. Regular readers know our modus operandi for these contests: we make people work for their prizes. You either have to pick the best miner, ask us some challenging question, or simply do a lot of posting on our site. On the other hand, SilverGoldBull is making winning free gold on their site as easy as possible. Here are the contest details: - Sign up for a FREE account to be entered in their monthly draw for a 1-oz Gold Maple Leaf - Those with existing accounts need to log-in at least once a month to remain eligible - Only one "account" per person - No purchase necessary Once people have registered for their free, SilverGoldBull account then they instantly become eligible for exclusive discounts which SGB offers their clients (along with their promo codes). They will also receive free "Market Alerts" and "Precious Metals Market News". Of course this contest is not for everyone. Some people are simply "immune" to the aesthetic appeal of these beautiful metals, and are not impressed by the 5,000 year track-record of gold as a perfect vessel for storing one's wealth. Other people already have their homes filled with clutter – and simply have no space to store these 1-oz coins. However, for those of you who do find these beautiful, glittering coins attractive; who do want to protect your wealth by having it stored in gold (or silver); and who can find "space" for one (or more) of these 1-oz Maples, what are you waiting for? |
| Shockwaves Felt In Markets for a Decade Posted: 10 Sep 2011 04:35 AM PDT John Beveridge THE September 11 terrorist attacks of a decade ago continue to reverberate in financial markets. And with the benefit of hindsight, we can see that the attacks and the reaction to them played a big role in laying the groundwork for the Global Financial Crisis that is still being felt and the very costly -- in human and economic terms -- wars in Afghanistan and Iraq. In the days following the disaster, there were many people claiming that this turning point in history would spark an immediate and apocalyptic economic meltdown in the US. It is easy to see where those assessments sprang from, even though they turned out to be wildly wide of the mark -- or at the least a little premature. After the first plane ploughed into the twin towers of the World Trade Centre, trading on the New York Stock Exchange was delayed. After the second plane crashed and the towers began to collapse, the world's biggest and most influential exchange was closed for the day and did not reopen until the following Monday. Ironically, the concerns about debt levels have seen more money flow into US Treasuries, forcing down yields and making it easier and cheaper for the US to raise even more debt. Here in Australia, we have been partly insulated from the economic after-effects of September 11 and the financial crisis, thanks to our exposure to growing Asian economies. However, we are far from immune, with share prices still trading in the doldrums, continuing consumer uncertainty and now a cautious savings culture. 
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| Sky's the Limit for Precious Metals Now: Eric Sprott Posted: 10 Sep 2011 03:51 AM PDT ¤ Yesterday in Gold and Silver About an hour after I filed my Friday column in the wee hours of the morning, the bullion banks launched another coordinated attack on the precious metals that began at precisely 11:00 a.m. BST in London. In about thirty minutes they had peeled about $45 off the gold price before the selling stopped. A rally of sorts developed starting at 1:00 p.m. in London...which was 8:00 a.m. Eastern time right on the button. This rally took the price back up to just about Friday's close, before it got sold off again. Then a smallish rally developed in the thinly traded New York Access Market...and gold only finished down $11 spot on the day. It doesn't take a masters degree in common sense to figure out that if 'da boyz' hadn't shown up in London...and probably in New York at times during their trading day...gold would have finished the week in spectacular fashion. Volume was pretty chunky. Silver's price path was very similar to gold's...and...
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| Weekly Bull/Bear Recap: September 6-9, 2011 Posted: 10 Sep 2011 03:41 AM PDT Submitted by Rodrigo Serrano of Rational Capitalist Speculator Weekly Bull/Bear Recap: September 6-9, 2011 Bull + US International Trade improved substantially in July and doesn't support the argument for a double-dip recession. The trade deficit (=Exports-Imports) narrowed to $44.8 billion from $51.6 billion in June, a decline of 13.1%. This is the largest percentage decline since February 2009. Exports shot up to record highs. April, May, and June deficits were also revised lower and will result in an upward revision to GDP. + The Non-Manufacturing ISM number points to a surprisingly resilient economy. A reading of 53.3 for August is higher than expected and, more importantly, is higher than the 52.7 reading for July. Note that the service industry makes up close to 90% of the economy. The jobs related subindex reading of 51.6 shows continued expansion in payrolls. This result confirms that the economy hasn't entered recession. + Obama announces his stimulus plan. This time it is centered on jobs which is exactly the prescription our economy needs. Among the most prominent details: a 50% slashing in payroll taxes to help small businesses and workers, much needed help for state and local governments, and an invitation for private money to participate in rebuilding America. This package is different than the 2009 stimulus. It would be much more effective. + An end to the tightening cycle in China is at hand. Inflation is increasingly under control. The Chinese economy has survived the cycle in growth mode. The arguments for a soft-landing are gaining strength. China's economy will continue to power the global economy and the bears are setting themselves up for bankruptcy as the market powers higher in the coming weeks. + The Euro will make it through this period of turbulence. Germany's Constitutional Court rules in favor of the government and deems aid packages for the Eurozone within the guidelines of the German Constitution. Though the process is painful, the path for the Eurozone is one towards fiscal union — a United States of Europe. Continued progress will lift the single most damaging headwind threatening the global recovery. + While the result may be skewed a bit by seasonal adjustments, a strong rise in industrial production in July for Germany shows that global demand is still online and the global economy remains in growth mode. Perhaps a better signal of continued global economic growth can be found in Australia, where GDP outperformed analyst expectations. Bear - Swiss authorities pledge unlimited buying of contra-currencies to weaken the Franc and is a shot across the bow in the ongoing global Currency War. A strengthening Franc has materially damaged Switzerland's export sector. Its Central Bank has had enough. But, will they be able to conquer market forces? Ask the Japanese (they seem to be the example on so many levels these days). The devaluation race just shifted into a higher gear. - The EU pressure cooker is whistling. Merkel is losing significant support for her bailout policies. How can she continue to dole out taxpayer money if her country's economy is in danger of entering recession? She's striking a more hard-lined tone towards Greece on further aid, while behind the scenes, her government is making preparations for a possible Greek default (how's that for confidence?). The problem is that political-will in Greece and Italy is wilting in the face of strikes and unrest. Meanwhile, Trichet makes official the obvious, "downside risks have intensified". The tightening cycle in the region has been put on hold and the Central Bank seems to be in disarray. Austerity is wrecking havoc on the periphery. Italian officials are tempering their GDP view, which is likely to miss government forecasts. Spain isn't producing encouraging economic data. Let's not even mention Greece (…oops, just did). - OECD cuts growth forecasts for the U.S and Japan. The report is alarming in that it essentially paints a picture of a giant global stall. Mirroring the IMF, one can see how dependent investors have become on monetary and fiscal stimulus. This is NOT normal. Economies are suppose to grow on their own, yet pleas for all sorts of stimulus drives home the point of just how weak the patient really is. More morphine please. - The jobs market remains in the doldrums as jobless claims rise versus expectations of a decline. Applications for unemployment insurance rose to 414,000 from an upwardly revised 412,000 (was 409,000). The 4-week moving average, a better measure of the metric as it smooths out weekly distortions, moved higher by 3,750 to 414,750. This is the highest level in more than 1 month. - Fannie Mae releases its widely followed National Housing Survey. The results are disappointing and contradict the hopium and kool-aid that the bulls can't get enough of. More than 75% of respondents say the economy is on the wrong track. From Doug Duncan, vice president and chief economist of Fannie Mae, "I believe the public was looking at the U.S. debt, deficit, and the ensuing political struggle with one eye, and looking at Europe and their sovereign debt issues with the other eye, and saying: 'This is not what we want.'" This result closely mirrors the recent Bloomberg Confidence survey. - Consumption continues to suffer. The bulls keep ignoring blatant signals of consumption weakness (don't own WMT). Meanwhile, let's take a look at this week's ECRI reading. Still supportive of the bear's views, falling from -4.4 to -6.2.
(Source: dshort.com)
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| Posted: 10 Sep 2011 03:04 AM PDT King World News has just released an interview with Eric Sprott: Chairman, CEO & Portfolio Manager of Sprott Asset Management.
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 Withstands Massive Attack / Global Bourses Falter Posted: 10 Sep 2011 02:15 AM PDT by Harvey Organ: Good morning Ladies and Gentlemen: [...] Gold closed the comex session at $1856.40 for a gain of $2.00. Silver faltered to the tune of 91 cents to $41.56. The price of gold as I promised you on Thursday night would be extremely volatile and I did not disappoint you with that. The morning fix of gold at 3 am Friday morning was $1879.50. It hit its zenith at over $1880.00 a few minutes before that. It then began to swoon and hit its nadir at around 6 am at 1822.30. It then started its assault again rising to 1851.50 which became the afternoon London fix. Another wave of selling brought gold to around $1840 when our gold bugs again took charge and gold never looked back. It finished the comex session at $1856.40 and in the access market it gained another $2.00 to close out the gold book at $1858.60. It seems the entire planet was aware of the gold manipulation including Goldman Sachs who are now long in gold as they have not been shy commenting on the manipulation of gold by authorities. Silver was hit because of its label as an industrial metal. The Dow suffered a big loss of over 303 points.(2.69%) Read More @ HarveyOrgan.Blogspot.com
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| WikiLeaks Cable Confirms: U.S. & Europe Trying to Suppress Price of Gold Posted: 10 Sep 2011 02:14 AM PDT WikiLeaks’ release of a U.S. State Department internal embassy cable on the subject of Beijing's plan for undermining the U.S. dollar’s reserve status*through the gold market clearly exposes both the clandestine operations at the Fed/Treasury as well as reveals who's been sleeping with the enemy. [Here are the details.] Words: 539 So says Dominique de Kevelioc de Bailleul ([url]www.beaconequityresearch.com[/url])**in an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited ([* ]), abridged (…) and*reformatted*below**for the sake of clarity and brevity to ensure a fast and easy read. The author's views and conclusions are unaltered and no personal comments have been included so as to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.*The author*goes on to say: In a piece of news that certainly delights GATA, Wikileaks p...
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| Posted: 10 Sep 2011 01:57 AM PDT Synopsis: Welcome to the weekend edition of Casey's Daily Dispatch, a compilation of our favorite stories from the week for the time-stressed readers. Dear Reader, Welcome to the weekend edition of Casey Daily Dispatch, a compilation of our favorite stories from the week for the time-stressed readers. Of course, if you want to read all of the Daily Dispatches from the week, you may do so in the archives at CaseyResearch.com.
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| Gold Stocks Prognosis: Catalyst, Please Posted: 10 Sep 2011 01:54 AM PDT http://www.caseyresearch.com/editorial.php?page=articles/gold-stocks-prognosis-catalyst-please&ppref=TBP422ED0911A It's probably the #1 question on every gold investor's mind right now: Why are gold stocks underperforming gold? Aren't they supposed to bring us leverage to the gold price? Yes, they are, and their performance been both disappointing and puzzling. There are some exceptions, to be sure, but in the majority of cases the [...]
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| More on Solyndra – The next move Posted: 10 Sep 2011 12:37 AM PDT
In any Chapter 11 filing the senior lenders have preference. This means that if there are any liquidation proceeds Senior Creditors get their money back first. It is important to note that those same senior lenders have significant influence regarding how the company's assets are disposed of. In the case of Solyndra, the senior lender is also the largest equity owner, Argonaut Ventures, an investment vehicle controlled by George Kaiser. Argonaut got the preferential position when it agreed to make a $75mm term loan to Solyndra back in February of 2011.
In the layer cake of creditors the highest tier is the DIP (Debtor in Possession). This loan is only granted after a chapter filing. It is approved by the court and as a result stands first in line. The DIP lender has significant sway in the timing and the manner of assets sales. Not surprisingly, the proposed provider of the DIP is Argonaut. (The deal calls for a 15% rate and an $80,000 front end fee. Not bad for a four-week loan) The Debtor has filed a plan with the court. The CFO, W.G. Stover Jr, has filed this petition. This document is the company's plan for what should happen next.
The plan put forward is a four-week sale of the company. The logic behind this very rapid schedule is that Solyndra is still burning cash at the rate of $1mm a week. How long will the $4mm DIP financing last? Four weeks. The terms of the DIP makes it a sure thing that Solyndra is going to be sold ASAP. That sounds good. But not for the DOE. The one-month period is a very short time frame. The likely result will be that no serious alternative buyer will appear. Should that happen, the senior creditor will get all of the assets of the company at the end of 30 days. That would be Argonaut. It's possible that Argonaut will end up owning a company that lists $850mm in assets for less than $100mm. A bankruptcy attorney who is knowledgeable about the Solyndra case has contacted me. I thought I'd share his thoughts with you. His words describe the situation much better than I:
The secured lender will seek to bid for the assets via a credit bid, where they don't have to put new money on the table - their existing secured loan becomes their bid. The second item that pops out is the dual track marketing - where they will market Solyndra as a whole and as pieces. The affidavit talks about a 4 week marketing runway - that's crazy short even for a podunk company with 1/10th the size. No one can do Due Diligence in 4 weeks. It leaves the DIP lender in a great spot. The company will claim they don't have the cash to survive a longer marketing runway, and then they will throw their hands up 4 weeks later and say that the horrible deal on the table is the best and only option (and usually for good measure they throw in that it will preserve jobs, they always throw that in) - and at that point the shitty contrived deal is the only option. Judge bangs his gavel down and the deal is done, and all legit, sanctioned by the bk process itself - everyone was given an opportunity to object in court, provided you can afford 700 dollar an hour bk attys. Okay, after all of that you have to conclude that Argonaut stinks in this. They are sitting in the catbird seat with the preferential position. They have the courts (and the lawyers) on their side. What possible option could the US Government have to stop this from happening? That's easy. All they have to do is accuse the existing management of fraud. No BK judge would accept the petition of a former corporate officer regarding the disposition of company assets if that same officer was under the cloud of fraud charges. I think this must be the reason that both the company's headquarters and senior officers homes (including the CFO) have been raided by the FBI. There is a clue in the affidavit submitted to the court:
It's simply not possible for the folks at DOE who were part of these meeting to not have realized that Solyndra was headed for the garbage can. They had to be lawyers. They are not stupid. There had to have been memos and phone calls back to the DOE and ultimately with the President during August on the failing status of the company. If during that month they had any suspicions of wrongdoing or fraud by the company's officers they would have alerted DOJ and the FBI raids would have happened before the company filed a bankruptcy petition. The business about raiding homes is just a smoke screen. In the next week the Court will rule on the proposal for a four week sale and the $4mm Argonaut DIP. If that plan is approved, what is left of Solyndra will go to Argonaut and the US DOE will suffer a loss of 100% of its $528mm loan. As part of this process DOE will file a brief. That brief has to be a smoking gun that forces the judge to deny the company's/Argonauts plan. That brief HAS to have some teeth in it. The only teeth that has merit is that the people who ran the company were crooks and lied to the DOE. The problem with that contention is that there is so much evidence to the contrary. It should be interesting to see what the DOE has to say. It will be very interesting to see how the judge rules. I'll be watching/writing. . 
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| Sell Euro to Buy Australian Dollar Posted: 09 Sep 2011 11:59 PM PDT Given that many know Merk Investments as "euro bulls", arguing that the euro can thrive despite all the turmoil in the Eurozone, we wanted to share with our investors and the public that in our hard currency strategy, currently with over $700 million in assets, we sold over U.S. $90 million worth of euros late Thursday to re-allocate to the Australian dollar. This re-allocation was an acceleration of a recent trend to deploy euro holdings elsewhere. The strategy is now underweight in euros.
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| Silver Update 9/8/11 – Wimpy Economics Posted: 09 Sep 2011 08:39 PM PDT From BrotherJohnF Filed under: BrotherJohnF, bullion traders, Buy Gold, Buy Silver, COMEX, commodity futures trading, commodity trades, Corrupt government, currency systems, Economic crisis, euro system, European banks, european market turmoil, federal reserve chairman ben bernanke, federal reserve system, financial repression, financial turmoil, futures market, global financial crisis, gold bullion, gold currency, gold price, Gold price [...] 
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| 9/11 and the War on Terror: Polls Show What People Think 10 Years Later Posted: 09 Sep 2011 06:00 PM PDT
#000099;">Polls Show that Americans Think We Overreacted, Overspent and Weakened Ourselves Through the War on TerrorAs the Brooking Institution reported yesterday, Americans that the government overreacted and overspent in reaction to 9/11:
(Incidentally, top American military leaders agree, saying that the war on terror has weakened our national security). Rasmussen has repeatedly noted that Americans are strongly opposed to further military or other types of intervention in Arab countries:
This was true for Libya. And it is true elsewhere. For example, the overwhelming majority of Americans are also opposed to intervention in Syria. #000099;">Polls Show Widespread Doubt About Official ExplanationsThe results of polls on peoples' beliefs about 9/11 around the world might surprise you:
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With stocks markets reeling and gold closing the week near the $1,800 level, today King World News interviewed Michael Pento, CEO of Pento Portfolio Strategies. When asked where he sees things headed, Pento stated, "Chicago Fed President Charles Evans said earlier this week that the central bank should increase its target rate for inflation above the current 2% level in an effort to get the economy back on track. Imagine that, the Fed actually believes what the economy really needs is more of the inflation that brought it to its knees in the first place."
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Bigger profits off lower credit scores. Now where have we heard that load of malarkey before?
Eric has over 40 years of experience in the investment industry and manages over $10 billion. He has been stunningly accurate in his writings for over a decade, and is one of the most respected industry professionals who accurately foresaw the current crisis. Eric chronicled the dangers of excessive leverage as well as the bubbles the Fed was creating, while correctly forecasting the tragic collapse. Sprott Asset Management is one of the top firms in the world. The firm has become well known not only for its performance, but also for creating a gold and now silver trust.
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