Gold World News Flash |
- Gold Technical Outlook: Looks Set For Upside Break
- ES Futures Retest Overnight Lows as European Credit Opens Ugly
- In A Year of Massive Change, Gold’s Status Remains Unchanged
- Gold Market Update
- The Economic Terror of 9/11
- HSBC's David Bloom: "Gold Is The Only Safe Haven Asset That Will Not Do QE, Put In Capital Controls Or Complain"
- HSBC's David Bloom: "Gold Is The Only Safe Haven Asset That Will Not Do QE, Put In Capital Controls Or Complain"
- Stocks/Commodities May Get Hammered If Dollar Rallies
- Gold Is Never Easy
- Jim's Mailbox
- Central banks and the gold price
- In a Year of Massive Change, Gold's Status Remains Unchanged
- Gold and Silver were brought here by comets and asteroids
- Jim Rickards: Gold Rise to Continue on Fed Manipulation
- Gene Arensberg: Nothing paper can be a safe haven
- QB Asset Management's report on gold's hidden value and price suppression
- THE NOOSE IS TIGHTENING
- Things That Make You Go Hmmm - Such As The Keystone Cops At The Helm Of The Eurozone
- Guest Post: Gold Technical Outlook: Looks Set For Upside Break
- Outlook for the Dollar – short/intermediate and long term
- Jim Rickards - Gold Rise to Continue on Fed Manipulation
- GOLD: An Inside Look
- Guest Post: Obama Jobs Plan - "Screw Future Generations"
- Morgan Stanley Releases The Definitive Gold Stocks Report
- Got Gold Report – Mining Shares ‘Only Thing Working’
- EURUSD Opens Gap Down To 1.3598
- Gold's rise to continue with Fed's manipulations, Rickards tells King World News
- Silver is set for an even greater upward run than gold
- The Economic Terror of 9/11 and What Really Happened
- Max Keiser on Radio Five Live – David Cameron is a hoodie, buy gold!
| Gold Technical Outlook: Looks Set For Upside Break Posted: 11 Sep 2011 07:53 PM PDT Dips to $1700 should be considered (dare we say) 'golden' opportunities to buy setting short term targets at $1875.
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| ES Futures Retest Overnight Lows as European Credit Opens Ugly Posted: 11 Sep 2011 06:38 PM PDT After a brief push back above Friday's lows, ES is back down to the early overnight lows (-17pts) just in time for the opening of Europe. Early runs on ITRX Main show +10bps at 198/200bps, XOver breaking 800bps (+35bps), and SovX +23bps to 333bps - not pretty (and worse than simply catch up to late Friday's demise). Financials continue to bear the brunt but non-financials are getting dragged out now more and more.
Gold and Silver are leaking sideways to lower but WTI futures have already broken below Friday's lows (as has copper). TSYs are 2-3bps lower in yield (and 2s10s30s is 2-3bps lower). The risk-basket CONTEXT implies around 1129 (with ES at 1126 for now) but things are moving fast as the JPY crosses are very jumpy. All-in-all, what Mr. Trichet we are sure would describe as stability.
UPDATE: 2Y EU Soverigns are generally leaking higher in yield (ITA +20bps, IRE +7bps, ESP +6bps, FRA +4bps, GER unch). PTE 2Y -33bps and GRE -98bps - but these are trading on price not yield at this point and are gappy as anything.
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| In A Year of Massive Change, Gold’s Status Remains Unchanged Posted: 11 Sep 2011 06:10 PM PDT The year 2011 has been a tumultuous one for market participants and non-participants alike. In just the last few months we've witnessed record extremes in the weather in the U.S., revolutions in the mid East region and exceptionally high levels of volatility in global financial markets.
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| Posted: 11 Sep 2011 06:06 PM PDT Gold continues to look as though it is marking out an intermediate top area, with several additional bearish developments having manifested over the past week. One is the powerful breakout in the dollar, which was predicted on the site in the article The Great Dollar Shocker just days before it occurred. Could the dollar and gold rise at the same? yes, they could, especially if the dollar's gain is largely due to the demise of the euro, but a strong dollar does mean that gold will be battling headwinds.
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| Posted: 11 Sep 2011 06:04 PM PDT Last month we marked the 40th anniversary of the Federal Reserve Note being a completely unbacked fiat currency. This month marks another major event in the demise of the US dollar, September the 11th.
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| Posted: 11 Sep 2011 04:25 PM PDT We asked last month:
HSBC's head of foreign exchange strategy – David Bloom – says yes. Bloom told BBC last week:
And he told the Telegraph today:
For an in-depth background on gold, see this, this, this, this, this, this, this, this and this.
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| Posted: 11 Sep 2011 04:25 PM PDT
We asked last month:
HSBC's head of foreign exchange strategy – David Bloom – says yes. Bloom told BBC last week:
And he told the Telegraph today:
For an in-depth background on gold, see this, this, this, this, this, this, this, this and this.
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| Stocks/Commodities May Get Hammered If Dollar Rallies Posted: 11 Sep 2011 04:15 PM PDT Saying an asset class may be "hammered" may seem like a colorful way to express an opinion, but the table below shows stocks and commodities were indeed hammered during a sharp U.S. dollar rally that occurred in the period August 2008 ... Read More...
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| Posted: 11 Sep 2011 03:59 PM PDT Dear Extended Family, I am on the road once again. I am one hour from departure to Tanzania. A great deal of rescheduling had to be made but it all worked out. My Toronto meeting with a high level delegation from Tanzania was postponed because of the national tragedy involving the sinking of a Continue reading Gold Is Never Easy
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| Posted: 11 Sep 2011 03:43 PM PDT Hi Jim, The weekend news on Greece sounds foreboding. Common sense dictates that gold should be slicing through all resistance with the speed of lightening. But that's assuming there's any common sense left on the planet. Best regards, CIGA Black Swan Dear Black Swan, It will once this violent chop resolves itself. Regards, Continue reading Jim's Mailbox
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| Central banks and the gold price Posted: 11 Sep 2011 03:40 PM PDT Alasdair MacLeod
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| In a Year of Massive Change, Gold's Status Remains Unchanged Posted: 11 Sep 2011 02:00 PM PDT Gold typically outperforms at the two extreme ends of the long-term cycle: during hyper inflation and during hyper deflation. Gold's strong performance during hyper inflation is easy to understand; its outstanding performance during hyper ... Read More...
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| Gold and Silver were brought here by comets and asteroids Posted: 11 Sep 2011 02:00 PM PDT 24hGold
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| Jim Rickards: Gold Rise to Continue on Fed Manipulation Posted: 11 Sep 2011 01:03 PM PDT from King World News:
Jim Rickards clients include private investment funds and banks, government directorates around the globe in national security and defense and he has worked directly with the Fed and US Treasury. Jim is also a KWN resident expert and author of the extraordinary new book, "Currency Wars: The Making of the Next Global Crisis."
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| Gene Arensberg: Nothing paper can be a safe haven Posted: 11 Sep 2011 01:00 PM PDT 9p ET Sunday, September 11, 2011 Dear Friend of GATA and Gold: Commenting today on the devaluation of the Swiss franc, Gene Arensberg of the Got Gold Report writes: "No 'paper' and no bureaucrat or central bank promise is safe anywhere in the world. It was not in the past, it is not safe now, and certainly will not be safe looking ahead. In a global printing press currency war there are no saver prisoners taken, but also, eventually, no winners." From an investment perspective, Arensberg writes, mining shares are the "only thing working." That's the headline on his GGR commentary here: http://www.gotgoldreport.com/2011/09/got-gold-report-mining-shares-only-... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix to Present at Investment Conference at Waldorf Company Press Release The chief executive officer and the communications director of Golden Phoenix Minerals Inc. (OTC Bulletin Board: GPXM) will speak at the Rodman & Renshaw Global Investment Conference at the Waldorf Astoria Hotel in New York City on Tuesday, September 13. The CEO, Thomas Klein, and the communications director, Robert Ian, will address the conference from 2:50 to 3:15 p.m. at the hotel. The conference's keynote speakers include former Vice Presidents Dick Cheney and Al Gore and former Secretary of State Henry Kissinger. "At this conference Golden Phoenix will introduce its royalty mining growth strategy to a global investment audience," Klein says. "With rising gold prices, industry consolidation, and central banks becoming net buyers of gold, we believe that the investment demand for emerging and diversified gold producers like Golden Phoenix offers the potential for significant growth." 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 offer the potential for exploration upside with the backing of production and future royalty streams. For information about the conference, including last-minute room and schedule changes, please visit: http://www.rodmanandrenshaw.com/conferences?id=164 For the complete press release, please visit: http://goldenphoenix.us/press-release/golden-phoenix-to-speak-at-rodman-... 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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| QB Asset Management's report on gold's hidden value and price suppression Posted: 11 Sep 2011 12:46 PM PDT 8:44p ET Sunday, September 11, 2011 Dear Friend of GATA and Gold: Our friends Lee Quaintance and Paul Brodsky at QB Asset Management in New York have just written a brilliant report, titled "Your Gold Teeth," on the hidden and suppressed value of gold and the manipulation of the gold market. They maintain, in part: "The amount of gold ounces represented on futures exchanges vastly exceeds the amount of deliverable gold in the world, and the perpetual rolling of front-month contracts insures that very little physical gold actually changes hands. Further, claims for gold represented by other derivative vehicles off futures exchanges but priced off futures, such as ETFs, gold swap agreements, and even fully-paid-for yet unallocated gold held in storage, cannot be satisfied. "We do not have a problem with gold futures per se (in contrast to many gold fans who decry naked shorting), because for every seller of gold claims there must be a buyer. But it is important to recognize that the leverage inherent in gold futures changes its character; physical gold is a real asset while gold futures are financial assets. Like other financial asset markets, the paper gold market is grossed-up with leverage but its open interest nets out at equilibrium pricing. "This does not mean that equilibrium pricing in gold futures necessarily represents 'fair pricing.' We believe participants in gold futures include: 1) speculators at every level of sophistication who buy and sell them seeking financial gain from either price changes or, at times, positive carry; 2) banks that create unreserved credit denominated in baseless money, that short gold futures because they have incentive to sustain the current monetary system and maintain control over credit distribution, and 3) sophisticated international purchasers of physical gold that short futures to keep the benchmark price low so they can amass more physical bullion. "If the preponderance of sellers of gold futures enjoys far better funding terms than do their buyer counterparties, then it would seem logical there would be great advantage to sellers to maintain prices lower than they would otherwise be if funding of futures were equitable." QB Asset Management has graciously consented to GATA's sharing its report with you here: http://www.gata.org/files/QBAMCO-YourGoldTeeth2-08-2011.pdf CHRIS POWELL, Secretary/Treasurer 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 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
This posting includes an audio/video/photo media file: Download Now | ||||
| Posted: 11 Sep 2011 12:33 PM PDT Governments, banks and the ruling elite are getting more desperate. They will do anything to retain their power. The endgame is in site. Banks, Governments Move To Restrict Personal Gold Bullion Purchases Mac Slavo September 9th, 2011 This week we returned from a trip to the Eurozone where we met with a host of different [...]
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| Things That Make You Go Hmmm - Such As The Keystone Cops At The Helm Of The Eurozone Posted: 11 Sep 2011 12:33 PM PDT After the earlier sheer amusement from Jim O'Neill, we shift to pure entertainment of a more macabre variety, as Grant Williams submits his diary chronicling the last five days in the collapse of the Eurozone (and much more). "I am writing this piece on the Monday of a week in which the sheer number of potential catalysts in Europe is extraordinary and so, by way of a change, and as a social experiment of sorts, I am going to write this edition of Things That Make You Go Hmmm..... diary-style in order to catalogue a week's worth of lack of cohesion, absence of unity, misalignment, mixed messages and u-turns as conjured up by the modern-day Keystone Cops at the helm of the Eurozone. This may mean we run a bit longer than usual, but you can always just read the days you care about... Hopefully I'll see you all at the end of the week..." Here are the people fighting for the survival of their jobs, their careers, and their legacy:
Things that Make You Go Hmmm- September 11, 2011
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| Guest Post: Gold Technical Outlook: Looks Set For Upside Break Posted: 11 Sep 2011 12:08 PM PDT Submitted by Chris Capre of 2ndSkiesForex Gold Technical Outlook: Looks Set for Upside Break Looking at the weekly chart on Gold (vs. USD), the sell-off from two weeks ago at the rejection of $1900 was impressive not so much in how much it dropped in a single week, but on how well it recovered. The following act in the next week was a solid weekly gain of 3.4% from an opening price of $1822 - 1864 closing towards the highs suggesting buyers were holding into the weekend and thus not taking profits. The following week was a sell-off but very mild in nature and a third week of price rejecting off the weekly lows. Three weeks of selling and three weeks of strong rejections off the lows clearly communicating to us anytime the shiny metal is sold off, buyers are eager to come back in. And each time, they are doing so with more confidence because every time, they are buying at a higher price suggesting they are happy to take any dips as an opportunity to buy (or invest/hold) more gold. This clearly communicates the underlying buyers are not afraid of the short term effects CME margin hikes may have on it or their futile (and puerile for that matter) attempts to manipulate something the market clearly wants to have and to hold. If they were afraid, they'd simply wait for a longer or deeper correction but the elevated buying rejections/levels suggests traders and holders appetite has not been satiated and continues to be part of their desired palette. As a trader and quantitative technician, this all communicates continued upside pressure and a likely breakout (and close) above the $1900 barrier is coming soon to a market near you. We feel whoever is attempting to depress the prices (albeit sovereigns or manipulators alike) will soon have to yield the $1900 barrier and a close above it. It should be noted that Gold (vs. USD) has only closed down on a weekly basis 13x this year out of 37 weeks (35% of the time). Of those 13x it closed down, only 5x (38%) did it close the following week down. We suspect this week will follow the majority pattern of another up-close on a weekly basis with renewed interest (not like people needed a reason) as a result of the Greek Tragedy (which looks set to bring down the Euro), a Moody's downgrade of France (vis-Ã -vis Credit Agricole being exposed to €21B+ in Greek Debt) thus adding to the 3,00 reasons people would flock to gold faster than geese flying south after seeing a cold front. *On a historical note, it does seem ironic that the culture which spawned European and Western civilization seems set to bring it down (at least economically).
We suspect either this week or at best by the end of Sept., we will see a weekly close above the $1900 barrier and this technical break of the highs will only encourage traders and holders another upside run is about to begin. Dips to $1700 should be considered (dare we say) 'golden' opportunities to buy setting short term targets at $1875.
*Authors Note: The last time we wrote an article here on Zero Hedge, there were many comments on how we wrote an article devoid of macro, fundamental or economic reasons to be involved in Gold. Shame on us. We would like to note this article is simply about providing a technical outlook on what we see happening with the underlying order flow and where trading opportunities are, along with where we see prices going short term. The strategies one has to employ for trading, investing or holding physical gold are completely different and have unique time horizons. For the record, we own physical gold, but also trade gold on a short term basis either daily or weekly. This article merely attempts to provide a technical perspective on what we see happening in Gold vs. USD over the next few days or weeks and that is all. There are plenty of articles here commenting about the various reasons to own physical gold and hold for the upside gains which we see clearly over the horizon. However, for the trading community, a technical perspective is often useful and is the heart of what this article aims for.
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| Outlook for the Dollar – short/intermediate and long term Posted: 11 Sep 2011 11:28 AM PDT The outlook for the U.S. Dollar in the short, intermediate and long term is completely at the mercy of fiscal and monetary policy that develops from Congress and the Federal Reserve. If the Federal Reserve stays the course with no QE3 (or any under the table substitute) then it is likely that in the [...]
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| Jim Rickards - Gold Rise to Continue on Fed Manipulation Posted: 11 Sep 2011 10:09 AM PDT in the longer run the safe haven aspects of gold will become even more apparent. The relentless push higher in gold will accelerate with volatility along the way.
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| Guest Post: Obama Jobs Plan - "Screw Future Generations" Posted: 11 Sep 2011 09:15 AM PDT
Submitted by Jim Quinn of The Burning Platform Obama Jobs Plan - "Screw Future Generations"
Friday morning the Schuykill Expressway was jammed again due to an overturned car at Belmont Avenue. My first thought was how anyone could turn their car over at the usual 25 mph speeds on the Schuykill Expressway. My second thought was that I was damned to having to take the route from 69th Street in Upper Darby down Chestnut Street (aka The 30 Blocks of Squalor) to work. I was still steamed by Obama's $450 billion "JOBS" plan. His new plan was touted as an infrastructure plan when it is nothing but a "screw future generations" plan. Do these politicians have no shame? Obama and his minions will tell you that Social Security is a fantastic program. It should not be touched. They declare that it is self funding. That is a bold faced lie. The Social Security Trust Fund has a $17.5 trillion unfunded liability. This is why: "A male average earner who retired at age 65 in 2010 paid out $345,000 in total Social Security and Medicare taxes, but will receive $417,000 in total lifetime benefits ($464,000 for a woman). A much bigger disparity in taxes versus benefits occurs for couples. In the case of a household with only one wage earner, the taxes paid out were $345,000, but the benefits received by both parties will be $778,000. For two-earner couples where one earned the average wage and the other earned a low wage ($19,400), tax payout was $500,000, but benefits will be $800,000. Those who retired in decades past saw much bigger returns for their payroll tax investment. But clearly this situation is not sustainable. It's like putting all your expenses on a credit card knowing full well you don't have the means to pay it back." – Bankrate.com We have 10,000 people every day turning 65 years old for the next 19 years. These people will be taking $70,000 to $150,000, on average, more out of the Social Security Trust Fund than they put in. This worked just fine when there were 16 workers contributing for every 1 retiree in 1950. It doesn't work so well when there is only 3 workers for every 1 retiree, as there is today.
The twits that present themselves as journalists in the MSM have been foaming at the mouth over the description of Social Security as a ponzi scheme by Rick Perry. How could this man tell the truth about FDR's beloved legacy? After trying to poke holes in Perry's truthful assessment of this bankrupt program, the pundits declare it isn't a ponzi scheme because Social Security isn't voluntary, and a ponzi scheme is. These morons are right. Social Security is a ponzi scheme with a gun pointed at your head by Federal Government thugs. That is a much more accurate description. The party that presents Social Security as a well run outstanding example of government at its finest has decided the best way to create jobs is to double down on you paying even less in payroll taxes than you did this year. We know for a fact the average person will get between 25% and 125% more than they paid into Social Security. The Obama plan last year and again this year is to drastically reduce the amount paid into the Trust fund, so you can have the privilege of consuming the same amount of food and energy at a much higher price. Brilliant plan! It is amazing how liberals and Keynesians can have such disregard and scorn for future generations who will be handed this bill with no means to pay. The Republicans went along with the 2011 payroll tax cut of 2%. They will go along with the 3.1% payroll tax cut. You see, this is how politics works. Since the payroll tax was "temporarily" cut, whoever lets the payroll tax cut expire will be declared a tax hiker. Therefore, the "temporary" payroll tax cut will be extended indefinitely, further impoverishing future generations. Meanwhile, how many jobs did the first payroll tax cut create? How many will the extended and increased payroll tax cut create? None! Obama is using the George Bush tax rebate check method of destroying the country. Both decided to address a government spending problem by reducing revenues. This is par for the course and explains why the economy is teetering on the verge of collapse. The Obama plan consists of $225 billion to screw future generations so we can spend today. It also includes $62 billion to pay people who aren't employed for 99 more weeks, even though Federal Reserve studies have proven that extending unemployment keeps the unemployment rate 1% higher. Paying people for almost two years while they are not employed is somehow supposed to "create" jobs. Then we have the traditional $70 billion transfer from our Chinese lenders to Timmy Geithner and then into the pockets of state government union workers across the land. Obama needs those votes in 2012. Why should states be required to adapt their budgets to reality when their sugar daddy can keep supplying the candy?
The last chunk of change in the Obama stimulus plan will be $100 billion for some more shovel ready infrastructure jobs. This line was used to snow the American public back in January 2009 when Obama's $800 billion porkulus bill was rammed through with no Republican votes in the House and only two RINO votes in the Senate. I'm sure you've benefitted greatly from the first round of shovel ready jobs. I know the $300,000 funneled to my township to double the size of a parking lot at our local park, which will be utilized on possibly 3 days per year, created a huge boom as the multiplier effect promised by Keynesians revitalized our local economy.
As I drove down Chestnut Street through West Philadelphia on Friday I observed the result of Obama's previous infrastructure stimulus plan. Prior to Obama's 2009 stimulus, Chestnut Street between 69th and 39th (30 Blocks of Squalor) was pocked with potholes and the sidewalks were crumbling, uneven and littered with trash. This entire stretch of highway was repaved with a thin layer of blacktop in the spring of 2010. Wheel chair ramps were built on every corner of these thirty blocks. Another example of government at its finest, as the Americans with Disabilities Act was only passed twenty years prior. The insanity of installing wheel chair ramps on every corner without repairing the lopsided, crumbling, trash strewn sidewalks leading to the wheel chair ramps is lost on the government drones. A little over one year since this fine example of Obama infrastructure spending I was able to make some revealing observations that can be applied to our country in general. I counted the number of holes that had been dug in the newly paved street as I slowly proceeded down this 30 Blocks of Squalor. I was able to do this because the City of Philadelphia government drones are incapable of properly timing the green lights to allow for a smooth flow of traffic. In the space of 30 blocks there were 20 holes that had been dug and refilled. It seems you can make a highway appear shiny and new by putting a thin veneer of blacktop on the surface but below the street you still have rotting water pipes and decaying sewer systems. This symbolizes the thin veneer of big government solutions for America's deeply rooted fiscal problems. Short-term Keynesian ephemeral stimulus injections are chosen over long term structural fixes. The result is the true infrastructure of this country continues to deteriorate, spring leaks and rupture at the most inopportune times. The politicians will continue to try and give the appearance of fixing the structural problems in this country, while putting nothing but useless patches on broken systems and using hype and misinformation to sell their glossy veneer of deception as solutions. Obama has chosen to screw future generations in order to try and get re-elected in 2012. What a great American visionary leader he has proven to be.
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| Morgan Stanley Releases The Definitive Gold Stocks Report Posted: 11 Sep 2011 09:01 AM PDT
Everything you always wanted to know about the future of gold stocks and much more is now answered in this 79 page monster of a report just released by Morgan Stanley, which finally joins the crowd and goes megabullish on gold stocks, by estimating that "currently c.$1500/oz of value is accounted for in reserves in the ground – so, at a $1800-1900/oz gold price, this leaves $400-500/oz for stakeholders, of which shareholders come last (after debt servicing and tax/royalties). While this is a blunt tool, we do believe it provides a good illustration how the sector has historically discounted the spot gold price, but currently does not seem to believe that the current $1800/oz gold price will hold. Thus, we believe an opportunity exists to invest in reserves in the ground rather than bullion (ETF)." So for those who do not wish to chase bullion at record prices (although with currency collapse increasingly imminent, that is probably not a lot), here is MS' conclusion: "Broadly, on stock performance we would make the case for: i) primarily, operating delivery; hence, which stocks look to offer value in their reserves through volume growth and cost reduction. ii) secondly, in the extremes of gold price movement, operating gearing can, but generally does not, supersede operating delivery; theoretically, higher operating gearing generally implies lower quality assets associated with difficult cost/volume control, hence our caution in looking at operating gearing in isolation from operating delivery and track record. iii) thirdly, valuation (but need to adjust for regional risk factors, by-product discount to rating, track-record and risk of delivery). Apparent valuation anomalies can rapidly be erased by big movements in the gold price or failure to deliver to operational expectations. Stocks screening favourably on a balanced gold price outcome (and rated OW by Morgan Stanley analysts) include ABG, ABX, BVN, PMTL. While several of the growth stocks (RRS, KGC, GG) screen less well, delivery on the operating expectations would likely be positive stock drivers." Of course, as much as we like gold and its derivatives, Morgan Stanley's outright push is nothing short of an attempt to get investors to move away from physical into a stock certificate deliverable (and hence, "confiscatable") which is ultimately in the hands of the DTC: something, which, with the world on the edge of complete insolvency, we would hardly advocate. Report summary:
Full report attached:
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| Got Gold Report – Mining Shares ‘Only Thing Working’ Posted: 11 Sep 2011 08:57 AM PDT HOUSTON (Got Gold Report) – The Swiss apparently got tired of the Franc being a 'safe haven' in a world of no such thing, so they hitched their paper currency to a much sicker inmate in the currency leper colony, the Euro, with a 1.20 upper limit. Then they made really, really sure that traders would believe it, causing a blitzkrieg exodus from the formerly safe paper to other monetary non-safety. The momentary mayhem resolved itself in a much cheaper (devalued) franc -- and a higher greenback in minutes, which stood in as the suddenly least sick member of the asylum. One gets the impression that the wealth that has flown into U.S. dollars did so not because dollars are more desirable than the "CHF" (Swiss Franc), but instead dollars were merely a liquid place to run to in a time of crisis. U.S. dollars are the convenient foxhole in an air raid, with the foxhole occupants looking all around for somewhere better to escape to. Dollars may be a earthen depression one can hide in temporarily, but some likely will travel to a better fortified air raid shelter in gold and silver. Trouble is that a great deal of wealth in Europe had migrated to the CHF precisely because it was 'safe.' The message of this past week: "Think again, Mr. Wealth, no 'paper' and no bureaucrat or central bank promise is safe anywhere in the world. It was not in the past, it is not safe now, and certainly will not be safe looking ahead. In a global printing press currency war there are no saver prisoners taken, but also, eventually, no winners." It may not sink in right away for everyone, but the desperate move by Switzerland to tie its monetary heritage to a possibly dying currency is yet one more nail in the post Bretton Woods floating fiat currency experiment coffin. Let's label this particular nail the capricious central banker nail and be glad we trust hard assets, not governments and central bankers. It may not manifest immediately or even visibly at first, but Switzerland's action is very supportive of precious metals, especially of gold. The propensity of wealth still parked in the former banking powerhouse and all across the continent of Europe to buy gold just got a boost … in size. Europe in a Tight Spot Speaking of crisis, the news out of Europe has that 'nervousy,' out of control sense about it, we all felt here in the U.S. in 'ought-eight,' and we have to wonder if the words of Jim Rogers will end up being prophetic. In case one missed it, in a linked CNBC interview we posted in the VultureInReview section on Friday, the flamboyant, seemingly always irritated Rogers said that it was time that the banks just went bankrupt, so we can start over. (Link to the interview.) What a mess … again. For some reason we are reminded of a scene from the movie "O' Brother Where Art Thou" where George Clooney's character says, "Damn, we're in a tight spot!" We wonder if the Europeans feel about like Clooney did in the clip just below. We Americans certainly did in oh-eight. Youtube link: http://www.youtube.com/watch?v=-dR45pdEqW4
Clooney managed to make good his escape thanks to unexpected but timely help from an unexpected source, as seen in the video clip, but there can be no assurance that there will be a rescue forthcoming in Brussels, Paris, Frankfurt or Athens. Europe does indeed seem to be in a tight spot. O' Brother indeed, the "Odyssey" continues. Mining Shares – Only Thing Working However, there is at least one burgeoning bright spot - at least so far. Just recently, with gold gyrating in a volatile high-consolidation between roughly the high $1700s and the low $1900s, we have a brand, spanking new breakout attempt for one of the most popular big-cap mining stock indexes. Vultures, be sure to see the new HUI chart links on the subscriber pages for that. It is not just that the HUI is breaking out that is impressive, it is that it is breaking out now, with so much negative energy flying that makes it doubly interesting. We began the last full report, the one we penned just before leaving on our attempted 'hiatus,' with: "If it seems like things have gone from bad to worse, they have since our last full GGR three weeks ago. Unstable, uncertain markets are never fun, mostly because people have a nasty habit of hitting the sell button on so many things when fear and panic is in the air. At the same time buyers understandably lock up and wait or lower their buy targets because by doing so they are rewarded with even lower, sometimes even irrationally lower prices for doing so. – Bargain hunting paradise has arrived thanks to Team Obama, the U.S. Congress and the European Union." With the woefully undervalued Big Miners attempting a breakout, in a crisis, they could get the coveted moniker of "the only thing working," where portfolio managers end up flocking to them because their brethren and colleagues who already own them are doing well while everything else turns to excrement. If so, we have to believe that will ultimately be supportive of the smaller, less liquid and more speculative miners and explorers we love to game here at Got Gold Report – if the world manages to pull a Clooney this time, or perhaps later, once the new global Charlie Foxtrot has peaked. More in a moment, but first here is this week's closing table: *** Table comments: Gold down for the week in greenbacks but up in Euros. More buying pressure than selling pressure for gold and silver ETFs. Highest ever close for gold on a COT date. COMEX commercials add to net short positions into then higher metals prices. Big Miners actually outperform, a little, but smaller miners and explorers tread water. USD explodes higher as the CHF manipulated with a new Euro peg at 1.20 (good luck there Switzerland). ICE commercial traders flip to net short the US dollar. Higher GSR, not such a good sign short term. Ted spread higher and looking more worrisome. Higher highs and lows for gold and silver, but it didn't feel like it. COMEX open interest falls by Thursday, hinting at a bit less opposition (than in the COT report, although up slightly from the previous Thursday). *** The smaller miners might get trounced again, ala 2008, but we sincerely doubt they will stay that way … again. We believe a good deal of "bad" has already been priced into many of them, the result of people with memories of three years ago still fresh enough to matter. Still a Vulture Bargain target-rich paradise, in other words … for now. Before we move into the "meat" of this report, we wish to acknowledge and remember our fallen Comrades and fellow Americans on this tenth anniversary of the attack we all know as "9-11." Everyone except the religious zealots who live for chaos has probably figured it out, but the one clear message that should be ringing clear to America's enemies is that you really don't want to kick a big, very powerful sleeping dog. Because if you do there will be harsh, painful and certain consequences – no matter how long it takes. Much more below for our valued Vultures Got Gold Report First things first, the Got Gold Report – the full report – is published biweekly at least 24 times per year. Between reports we communicate more regularly on the GGR web log, which is always free and open to the public, or in our COT Flash reports and Vulture Bargain Hunter reports reserved exclusively for subscribers. COT Flash reports appear on off weeks for the Got Gold Report when there are what we consider important changes in the commitments of traders reports which cannot wait until the next full report. Vulture Bargain offerings appear ad hoc as there are developments we feel merit comment for and in the resource company issues we track closely. Our aim is to briefly summarize our positioning for the gold and silver markets, and also to highlight a few of the dozens of indicators, ratios and graphs we keep in constant touch with. Vultures, after logging in, please see the commentary in our numerous technical charts located in their own section of the password-protected subscriber pages. We update most of the Got Gold Report linked charts each week, sometimes even the weekends when we don't publish the full report. Changes to the linked charts are almost always completed by 6:00 pm ET on Sunday evening (except when Monday is a holiday) and occasionally during the week as events unfold. To continue reading, please log in or click here to subscribe to a Got Gold Report Membership.
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| EURUSD Opens Gap Down To 1.3598 Posted: 11 Sep 2011 08:27 AM PDT
If there is one currency which can move almost 1000 pips lower in 10 days, the EUR it is. After Chinabot gave up on supporting the broken currency, whose viability is only better to the even more doomed US Dollar, but not before an epic run to safety sends the USD into a Volkswagen-like historic short squeeze, and after Goldman openly called for QE from the ECB (and not just the EFSF monetization foreplay which now looks like it may not even pass) the currency has taken out pretty much all support levels, and at the current rate may tumble to sub 1.30 in the next 72 hours. Gold opens in less than 2 hours: the latest response to the flight from fiat should be amusing.
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| Gold's rise to continue with Fed's manipulations, Rickards tells King World News Posted: 11 Sep 2011 08:27 AM PDT 4:21p ET Sunday, September 11, 2011 Dear Friend of GATA and Gold: Writing exclusively for King World News, geopolitical analyst James G. Rickards, who spoke at GATA's Gold Rush 2011 conference in London last month, argues that central bank manipulation of the bond and currency markets is likely to push volatility into the equity markets, which, because of high-frequency trading and leveraged exchange-traded funds, are already "unstable and perhaps just one snowflake shy of an avalanche." Rickards adds that stock market volatility may pressure gold with margin calls on accounts that will be forced to sell gold to cover losses elsewhere, but over time gold will be even more widely perceived as a safe haven. Rickards' commentary is headlined "Gold Rise to Continue on Fed Manipulation" and you can find it at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/11_Ji... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Lewis E. Lehrman on How to Solve the U.S. Debt Problem Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program. Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust. 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
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| Silver is set for an even greater upward run than gold Posted: 11 Sep 2011 08:16 AM PDT This implies that if gold reaches $6,200 per ounce, silver will peak at between $620 and $930 per ounce.
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| The Economic Terror of 9/11 and What Really Happened Posted: 11 Sep 2011 07:54 AM PDT Last month we marked the 40th anniversary of the Federal Reserve Note being a completely unbacked fiat currency. This month marks another major event in the demise of the US dollar, September the 11th. While we've been on a one way road to monetary ruin since at least 1913 the response to the events of September 11, 2001 have greatly accelerated the process.
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| Max Keiser on Radio Five Live – David Cameron is a hoodie, buy gold! Posted: 11 Sep 2011 07:14 AM PDT Stacy Summary: Audio clip from today’s Radio Five Live special on the global financial crisis. The intro to the story is about 2 minutes . . . Download show here For more download & listening options, visit Archive dot org
This posting includes an audio/video/photo media file: Download Now |
With extraordinary volatility in stock markets and continued strong accumulation of physical gold, Jim Rickards put together the following piece exclusively for King World News. One of the reasons Rickards has gained worldwide recognition is because of his ability to forecast ahead of time key moves by both the Fed and central planners.
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