Gold World News Flash |
- Tourism-- Recession Prone industry
- Peter Schiff - Expect Over $250 Move in Gold to New Highs
- The Most Important Decision Bernanke Will Ever Make
- Misery Index Drives Gold Demand
- Should We Be Loading Up on Gold Stocks Now?
- The Global Debt Clock: A World Debt Comparison
- KWN Special - Is Silver the Next Apple?
- Gold Seeker Closing Report: Gold and Silver End Modestly Lower
- Australian Dollar Wyckoff 2.0 Review
- Sprott plans a gold bank without loans or leverage
- Silver Update: “Bottoming” October 17th, 2011
- Are Foreign Banks Losing Confidence in US Treasuries?
- Occupy Wall Street / Occupy Denver / Occupy Almost All Major Cities / Fraudulent Earnings Report on Citibank
- Michael Kosares: Misery Index drives gold demand
- Is It Time to Nibble at Gold Miner Stocks?
- Gold Trendline Resistance from former Lows Starts at 1702
- The Gold Price Has Formed a Rising Flat Top Triangle, Those Usually Break Out Upside
- KWN Special: Is Silver the Next Apple?
- People are more clearly understanding the risks in the banking system and the insolvency of many major banks.
- 21st Century Bank Run
- Which Gold Miners Have Largest Upside?
- Same Play - Different Act
- Fed should adopt GDP target, Goldman says
- Kitco to broadcast Murphy-Christian debate at Silver Summit
- Fidelity Loses $50 Million In Seconds On Its Brand Spanking New Investment, As Crocs Plunges On Guidance Cut: 2007 Redux?
- Gold Daily and Silver Weekly Charts
- The Business of Government
- Case Study: Buyouts Crystallize Value in the Market
- Deflation and the Secular Stocks Bear Market, The Most Important Decision Bernanke Will Ever Make
- Kyle Bass Recommending Guns And Gold
| Tourism-- Recession Prone industry Posted: 17 Oct 2011 06:06 PM PDT  Although the American workforce continues to be exported to cheaper places like China or India, and the average American consumes more than they earn, it is comforting to know that there is an area where jobs are not exported, and the money comes from national sources and abroad and that industry is tourism. Take advantage of a steep, three-year fall of the dollar, the tourism industry is flourishing throughout the country, with a growing number of visitors from abroad. The increase in travel to the United States is the most effective form of economic stimulus package to support communities, injecting billions in the U.S. economy and creating millions of new American jobs. More Here... 
This posting includes an audio/video/photo media file: Download Now |
| Peter Schiff - Expect Over $250 Move in Gold to New Highs Posted: 17 Oct 2011 06:05 PM PDT  With gold and silver consolidating and continued uncertainty surrounding the stock market, today King World News interviewed Peter Schiff, CEO of Europacific Capital. When asked about the ongoing banking crisis and where how it will impact gold, Schiff responded, "Clearly when banks fail, people that loaned money to those banks lose. So there are repercussions when dominos start to fall, you just don't know how many there are. I prefer to let the dominos fall rather than to try to prevent it from happening with government bailouts that wind up doing even more damage."
This posting includes an audio/video/photo media file: Download Now |
| The Most Important Decision Bernanke Will Ever Make Posted: 17 Oct 2011 05:38 PM PDT Gold Scents
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| Misery Index Drives Gold Demand Posted: 17 Oct 2011 05:18 PM PDT [B]Review and Outlook[/B] By way of review, gold hit an all time high just after Labor Day at $1925 per ounce, went into a tailspin that culminated intraday at the $1530 level (9/26) and then climbed back to $1680 (10/14) as this is being written. Corrections, though not the sort of thing any of us enjoy, are good for the heart and soul of a market. They purge it of excess and inequities, bring balance and, in secular bull markets, ultimately set the stage for the next rally. None of the conditions which caused gold's meteoric rise have been altered, in fact matters have noticeably worsened. For the most part, the evidence points to this price correction being an exclusively paper gold market phenomena -- a technical break in a market that had risen almost 40% in a little over eight months. That said, there was an important additional development that should not be overlooked: The banking and sovereign debt problems festering in the eurozone translate...
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| Should We Be Loading Up on Gold Stocks Now? Posted: 17 Oct 2011 05:18 PM PDT By almost any measure, gold stocks are undervalued but should we load up? Gold mining companies are earning record margins. Stock prices, however, have not responded in similar fashion but when the broader investing community begins to take notice, investors will snap up these highly profitable stocks and push prices higher. The "catch up" in gold stocks could be tremendous but the question, of course, is timing. We don't know when gold stocks will begin to catch up and the data don't suggest they must rise right now or that they've hit bottom so should we load up just now? Words: 590 So*asks Jeff Clark ([url]www.caseyresearch.com[/url])**in paraphrased comments from an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has 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 to maintain ...
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| The Global Debt Clock: A World Debt Comparison Posted: 17 Oct 2011 05:18 PM PDT The clock is ticking. Every second, it seems, someone in the world takes on more debt. The idea of a debt clock for an individual nation… [is old hat - see*links below*to many such debt clocks - but] our clock (here) shows the global figure for all (or almost all) government debts in dollar terms. Words: 300 So says an article* in The Economist ([url]www.economist.com[/url])*which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has 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 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 article goes on to say: [INDENT]Does it matter? After all, world governments owe the money to their own citizens, not to the Martians. But the rising ...
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| KWN Special - Is Silver the Next Apple? Posted: 17 Oct 2011 04:01 PM PDT  The following information was put together exclusively for the King World News blog by Kevin Wides, out of Switzerland. It is a fascinating comparison between the bull move in Apple shares and silver bullion. Kevin stated, "With everyone talking about Steve Job's death and the wonderful investment Apple shares have been, a closer look shows how hard it is to catch a trend over the long run. I still believe in the silver story, and one can see what it takes to hold on to long-term positions [throughout an entire bull market]."
This posting includes an audio/video/photo media file: Download Now |
| Gold Seeker Closing Report: Gold and Silver End Modestly Lower Posted: 17 Oct 2011 04:00 PM PDT Gold climbed $13.40 to as high as $1694.70 by about 5AM EST, but it then fell back off for most of the rest of trade and ended near its late session low of $1665.56 with a loss of 0.42%. Silver rose to as high as $32.643 before it also dropped back in London and New York and ended near its late session low of $31.545 with a loss of 1.15%.
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| Australian Dollar Wyckoff 2.0 Review Posted: 17 Oct 2011 03:57 PM PDT Let's review the Aussie dollar ETF (FXA) with Hurst cycles, Gann Angles and Wyckoff phase analysis, we call this Wyckoff 2.0 review. Read More...
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| Sprott plans a gold bank without loans or leverage Posted: 17 Oct 2011 03:54 PM PDT Sprott Makes a Bet on a Different Type of Bank By Boyd Erman http://www.theglobeandmail.com/globe-investor/investment-ideas/streetwis... Eric Sprott, one of the most vocal critics of the global financial system, wants to start a bank. But it won't be like any bank most people are used to seeing. Mr. Sprott and the asset management firm he founded, Sprott Inc., are investing in an Ontario-based currency trading company known as Continental Currency Exchange Corp. They, along with the current management of Continental, are applying to federal regulators for permission to turn the 17-branch operation into the Continental Bank of Canada. They expect to get a decision early next year. The bank Mr. Sprott and his partners envisage would seek to address all the things that Mr. Sprott has warned against in the global financial system, such as too much leverage and a lack of confidence in paper currency. Continental Bank would take deposits, but it would make no loans, unlike most current banks that are built on a model of lending out far more money than they actually have on hand. ... Dispatch continues below ... 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 Taking it a step further, customers who don't trust government-issued currency may some day be able to keep their deposits in the form of gold and other precious metals that they could tap for everyday purchases. That idea is in keeping with Mr. Sprott's musings about chequing accounts backed by precious metals -- customers could deposit gold, then make purchases by cheque and have their accounts debited accordingly. "Our firm, Sprott Inc., and Eric have taken a very committed view that the financial system requires a substantial reset," Sprott Inc. chief executive officer Peter Grosskopf said in an interview. Given that, "Eric has always thought that offering consumers access to an unlevered bank is a good idea," he said. In a levered financial system, relatively small losses by banks on their loans and investments can push a bank close to collapse. This bank would have no leverage and instead would make money thanks to profit margins on services such as selling foreign exchange and precious metals. "It's the old commerce model of providing service instead of credit," said Scott Penfound, vice-president of operations at Continental Currency. Mr. Penfound will stay on to manage the business and he and his family will continue to own 49 per cent of the company. Mr. Sprott and Sprott Inc. would together control 51 per cent of the bank, with Mr. Sprott having the larger share. Sprott Inc.'s stake would be a passive one, Mr. Grosskopf said. Fear of financial system meltdown and a loss of value in paper currency as central banks print more and more money drove gold to record highs approaching $2,000 (U.S.) an ounce before last week's big selloff in financial and commodity markets. Much of the buying has been driven by people who share Mr. Sprott's concerns about the financial system and who believe that some day gold and silver may once again be the foundation of commerce. Mr. Sprott wrote in a July commentary that he believes that "gold and silver are the ultimate alternative for a chequing account in a vulnerable banking jurisdiction." One of the criticisms of gold as an alternative to paper currency has always been that it is not very practical. Secure storage is an issue, and it is not easy to take a few ounces to the store to buy groceries or to pay for the dry cleaning. Being able to write a cheque against an account at an institution that actually holds physical gold or silver brings the idea of precious metals as an everyday currency closer to reality. To be sure, the gold-based banking idea is a long-term goal. For Continental, having a stamp of approval from regulators will set it apart from other companies operating in the foreign exchange and metal sales businesses, Mr. Penfound said. The company will also have more capital, thanks to the new investors, to expand and to deal with regulatory requirements. Another more immediate benefit of a banking licence is access to the interbank foreign exchange trading system, which would allow Continental to offer more services to customers, Mr. Grosskopf said. For example, instead of simply offering to exchange Canadian dollars for foreign currency at its branches around Ontario, Continental could sell its clients pre-paid currency cards that they could take when travelling to foreign countries. "We can sleep at night because risk is not something in the model," Mr. Penfound said. Join GATA here: 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 120.9 Meters Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) has announced the drill results received from its 2011 drilling Wellgreen platinum group elements, nickel, and copper project in the Yukon Territory. Borehole WS11-188 encountered 457 meters of mineralization grading 0.47% nickel equivalent (including 0.72 grams per ton platinum, paladium, and gold) from surface to the footwall contact. Within this larger swath of mineralization, the hole encountered a high-grade section of 17.8 meters of 3.14 grams per ton platinum, palladium, and gold, 1.03% nickel, and 0.74% copper (1.77% nickel equivalent). The hole was drilled completely outside of current resource boundaries, between the East Zone resource and the West Zone resource that was reported in the company's press release no July 14, 2011. The high-grade intercept located between the two resources not only demonstrates that the East and West Zone resource form a single, geologically contiguous body but also indicates that the higher-grade material in the East Zone continues to the west and at depth at Wellgreen. For drill result tables and maps, please see the company's full press release here: http://www.prophecyplat.com/news_2011_sep26_prophecy_platinum_wellgreen_...
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| Silver Update: “Bottoming” October 17th, 2011 Posted: 17 Oct 2011 03:27 PM PDT |
| Are Foreign Banks Losing Confidence in US Treasuries? Posted: 17 Oct 2011 01:46 PM PDT by Vedran Vuk, Casey Research: Dear Reader, Recently I made some observations about Herman Cain's comments about the Occupy Wall Street movement. In short, he said that if they're unemployed, it's their fault. One reader wrote in saying, "Well, whose fault is it other than the individual's?; Please explain this concept further." I responded by writing, "Think about this: Is it the fault of people in the Congo or Sierra Leone that they are largely unemployed or poor? When you're born in the wrong place and at the wrong time, it's usually not your fault." Surprisingly, the reader wrote back saying that the impoverished of the Congo were to blame for their poverty. I don't want to discuss despotic African countries or jobs today, but instead humility and appreciating the role of randomness in our lives. While the media ramble on about greed on Wall Street, humility is really the missing element on Wall Street, Washington, D.C., and in our society in general.
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| Posted: 17 Oct 2011 01:35 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: [...] The price of gold fell by $6.30 as the bankers saw the global markets in turmoil. Gold settled at the comex at $1675.50. Silver fell by 35 cents to $31.79. The markets are surely reacting to the populace occupying the financial centers of major European and North American cities. We even had major protests in Toronto where tents were set up at Queen's Park, the home of our provincial government. Let us head over to the comex and see how trading fared. Read More @ HarveyOrgan.Blogspot.com
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| Michael Kosares: Misery Index drives gold demand Posted: 17 Oct 2011 12:34 PM PDT 8:30p ET Monday, October 17, 2011 Dear Friend of GATA and Gold: Michael Kosares, proprietor of Centennial Precious Metals in Denver, notes tonight that if the inflation figures used by Shadow Government Statistics -- inflation figures calculated in the old way -- are followed, the "Misery Index" under President Obama is 50 percent worse than it was under President Carter. That "Misery Index," Kosares writes, is driving gold demand, and his commentary can be found at USAGold here: http://www.usagold.com/amk/specialreportoct2011.html CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix Signs Definitive Agreement to Acquire and Reopen Santa Rosa Gold Mine in Panama Company Press Release SPARKS, Nevada -- Golden Phoenix Minerals Inc. (OTC Bulletin Board: GPXM) has signed a definitive agreement to acquire a 60 percent interest, with an option to buy an additional 20 percent interest, in the Santa Rosa gold mine in Panama, now owned by Silver Global S.A., a Panamanian corporation. Santa Rosa produced more than 100,000 ounces of gold from 1996 to 1998 before being closed in part to low gold prices, which are now more than five times higher. Golden Phoenix intends to acquire its initial 60 percent interest in Santa Rosa by acquiring 60 percent of the share capital of a recently created company under the name Golden Phoenix Panama S.A., formed to hold and operate the mine. Tom Klein, CEO of Golden Phoenix says: "The agreement establishes a solid framework from which we can advance Mina Santa Rosa to production-ready status." For Golden Phoenix's complete statement, please visit: http://goldenphoenix.us/press-release/golden-phoenix-signs-definitive-ac... Join GATA here: 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 For Continuous Wealth Creation, the Hera Research Newsletter The life cycles of companies that produce natural resources allow investors to allocate assets among companies at different stages of development and to profit from transitions between stages. Based on natural resource company life cycles, the Hera Research Newsletter maximizes profits through deep, fundamental analysis at each stage of development and by moving gains back to earlier-stage companies in a continuous wealth-creation process. Hera Research covers a pipeline of high-quality natural resource companies at different stages of development. The companies span discovery and production of gold, silver, and platinum group metals, select base metals, oil and gas, green energy, agriculture, rare earth elements, uranium, and more. Discover the unique value of the Hera Research Newsletter by visiting: http://www.heraresearch.com/newsletter.html Or call Ron Hera at 360-339-8541x101.
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| Is It Time to Nibble at Gold Miner Stocks? Posted: 17 Oct 2011 11:12 AM PDT ...
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| Gold Trendline Resistance from former Lows Starts at 1702 Posted: 17 Oct 2011 11:00 AM PDT courtesy of DailyFX.com October 17, 2011 07:25 AM Daily Bars Prepared by Jamie Saettele, CMT Gold has held up for 3 weeks now but the rally may be failing at the 20 day average. A break below the line that extends off of the September and October lows would warn of a run at the September lows (and 200 day average – currently at 1544). Trend Strength (M,W,D) – 1, 0, 0 Latest Video Weekly Forecast COT...
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| The Gold Price Has Formed a Rising Flat Top Triangle, Those Usually Break Out Upside Posted: 17 Oct 2011 11:00 AM PDT Gold Price Close Today : 1675.50 Change : (6.30) or -0.4% Silver Price Close Today : 31.791 Change : (0.340) cents or -1.1% Gold Silver Ratio Today : 52.70 Change : 0.362 or 0.7% Silver Gold Ratio Today : 0.01897 Change : -0.000131 or -0.7% Platinum Price Close Today : 1555.50 Change : 0.50 or 0.0% Palladium Price Close Today : 617.30 Change : -8.70 or -1.4% S&P 500 : 1,200.86 Change : -23.86 or -1.9% Dow In GOLD$ : $140.61 Change : $ (2.50) or -1.7% Dow in GOLD oz : 6.802 Change : -0.121 or -1.7% Dow in SILVER oz : 358.50 Change : -3.91 or -1.1% Dow Industrial : 11,397.00 Change : -247.49 or -2.1% US Dollar Index : 77.22 Change : 0.604 or 0.8% I have been awaiting for the GOLD PRICE to rally up towards $1,700 at least, but gold keeps failing to close above $1,681.70 Today it eased a little higher overnight, nearly reached 1695, but fell most of the day in US trading, with a floor at $,1665. The GOLD PRICE has coiled up into a tightening range that looks like a rising flat topped triangle. Those usually break out upside, but they can worry you to death waiting for that resolution. A breakdown here -- say, below $1,640 -- would leave gold looking very weak. An upside breakout should carry to $1,725, maybe $1,750 or even $1,800 before it fails. I'm working on two possible outcomes here. First, that the $1,927 top was not a major one, and from here the GOLD PRICE will rally into year end. Second says that $1,927 was a major top, and gold will spend 4 - 6 months in jail doing penance before it lifts off again. A close above $1,805 sets the first outcome in motion. Comex gold closed down $6.30 at $1,675.50. The SILVER PRICE hasn't acted nearly as enthusiastically as gold lately. Today it reached only 3265c, right near that 3250c mark that has stopped it so often. Low came at 3147. If tomorrow's trading breaks that 3150c line, silver's liable to trade back to 3000c. Overhead SILVER needs to rise above 3350c to break out. 200 DMA stands at 3616c. Although I EXPECT the GOLD PRICE to rise and carry the SILVER PRICE with it in a corrective bounce against the recent fall, silver wouldn't surprise me much if it fell back to 3000c. On Comex silver was settled down 34c at 3179.1c. Today's markets: The US dollar index rose 0.78%, 60.4 basis points, to 77.22, throwing bags of monkey wrenches into the stock, silver, and gold markets. The Euro is probably on a tear that will run nearly to 1.4200 before it collapses, but today it was bouncing off of resistance at the bottom boundary of the 5 month trading channel. Dropped today 0.99% to 137.40. This euro-intoxication springeth from the alcoholic vapors of hope -- hope that the Europeans will actually fix their banking system. Maybe, but not until after at least Greece and maybe two or three others default on their government debt. Then all those optimists will transmogrify just as instantly into euro-pessimists. Markets have no loyalty. Japanese yen continues to slide down the upper boundary line of a triangle, within a sidewise trading range. Rose today 0.49% to 130.18c/Y100 (Y76.82/$1). No resolution, no direction, but also no confirming weakness yet. Stocks dashed the dreams of all those who bedded down Friday with visions of Sugar Plum profits dancing in heir heads. Bounced off 11,700 resistance like a big old June bug bouncing off your windshield at 75 mph on Interstate 40, leaving behind a gooshy yellow mess. Dow closed down 247.49 2.13%) at 11,397, hand in had with a falling S&P500 that tumbled 3.35% (23.86) to 1,200.86. Oh, I reckon stocks will still rise higher, probably even rally a while, but not much beyond the 200 day moving average (11,967). Today the Dow lost nearly every penny it had gained in five day's work last week. Stocks -- they USED to represent a real economy, but now they're only the delusion of an economy. Reminds me of that joke laborers used to tell in the Communist countries -- "They pretend to pay us so we pretend to work." Likewise, the US pretends to have an economy, so stocks pretend to have value. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2011, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. 
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| KWN Special: Is Silver the Next Apple? Posted: 17 Oct 2011 10:07 AM PDT from King World News:
The following information was put together exclusively for the King World News blog by Kevin Wides, out of Switzerland. It is a fascinating comparison between the bull move in Apple shares and silver bullion. Kevin stated, "With everyone talking about Steve Job's death and the wonderful investment Apple shares have been, a closer look shows how hard it is to catch a trend over the long run. I still believe in the silver story, and one can see what it takes to hold on to long-term positions [throughout an entire bull market]." Shares of Apple have gone up 70 fold, but in order to capture that move you had to sit through some gut wrenching corrections that tested even the most devout believers.
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| Posted: 17 Oct 2011 10:02 AM PDT James Turk – Insolvency of Banks to Cause Gold Explosion
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| Posted: 17 Oct 2011 09:34 AM PDT Addison Wiggin – October 17, 2011
 "They all went in as a flash mob to close their accounts," office manager Adrielle Slaugh told the New York Post. "There were about 30 of them. They were screaming and chanting while they were going in. "Security told them to leave, but they didn't. They stood in a group chanting things to the tellers. They were locked in and then they were taken away." The protesters don't look very disruptive in the video. And even Citi admitted "only one person asked to close an account" — a request that was accommodated. Reports on the number of people arrested vary, too — the Post says 24. In all, the commotion is hardly enough to cause a bank run.
The reader says he put savings in quotations because he assumes they're all jobless and have no savings. But what if "they," the reader goes on, "inspire people with savings to withdraw their savings? That could wreck havoc on the financial system's bank reserve ratios." "How do you bail out a bank when the savings are withdrawn? On a worldwide basis?"
There's a Facebook campaign encouraging people to close their accounts at the big money center banks three Saturdays from this past one. Three Saturdays from now is Nov. 5 — Guy Fawkes Day:  It's worth noting we've seen "move your money" campaigns fizzle before. This one probably will, too.
Over the weekend, protests were registered in more cities worldwide than reporters could keep up with: 
"Simple. The U.S. economy is broken. Incomes are less than they were 35 years ago. Everything costs more. We've had 17% unemployment (traditional measure) for two years, and we're about to lose many more jobs. Our collective debt is 370% of our GDP (from all sources, from consumer to government)." "Our financial system has a) enabled the transfer of our manufacturing jobs to a mercantilist (managed trade) China and b) stolen the rest of our wealth (and is in the process of gambling what's left of it away)." "Finally, given the ongoing instability of our economic system, we don't have long before the entire thing fails, and with it, our collective future (rich or poor)." "The question really is: Why aren't you protesting? Why isn't everyone protesting?"
 The OWS protests are popping up in the countries where public debt is already the largest.
"Political leaders," wrote John T. Flynn in his 1944 volume As We Go Marching, from which we cited in our research, "embarrassed by their subsidies to the poor, soon learned that one of the easiest ways to spend money is on military establishments and armaments, because it commands the support of the groups most opposed to spending."
"Political money always fails because free people eventually reject it. For short periods, individual countries can tell their citizens to use paper, but only at the sacrifice of personal and economic liberty." What happens when an entire global financial system is built on that currency? We've never been down this road before. But we don't think current events bode well…
"The official website of Occupy Wall Street (OWS) contains an entire forum dedicated to the gold standard. While by no means unanimous, a theme emerges that elegantly is summarized by one of the activists there: 'gold and silver. Been honest money since the dawn of time. The only money that has ever worked…'" Hmmmn…
Discouraging words, indeed, coming from the chief spokesman for German Chancellor Angela Merkel. "Dreams that are taking hold, again — that with this package, everything will be solved, and everything will be over on Monday — won't be able to be fulfilled," said Steffen Seibert. Kind of a mouthful, but the overall downer tone couldn't be mistaken. As we write, the Dow is off nearly 150. The S&P 500 clings tightly to 1,200.
That's slightly better than the month before, but it's also the fifth month the number has come in below zero. The last time that happened was June 2008 — when we were already seven months into an "official" recession.
Silver is back below $32, to $31.72.
The editors also revealed their favorite long and short positions for the next three years… along with a host of ticker symbols they see as great buys right now, no matter what happens in the broad market. For instance, Byron King made an exhaustive case for three tiny resource plays from the pages of his high-end advisory Energy & Scarcity Investor. You can have the audio files of these sessions in your inbox just days from now. And if you sign up before midnight tomorrow, you'll beat a price increase. Don't wait to access this information while it's still timely:
"Among those fears is that Germany may need to have larger write-downs for banks and private owners of Greek debt. There is also a need to recapitalize European banks, which don't trust each other anymore, bringing costs of interbank debt higher." Abe's favorite way to play the euro is via Germany's main stock index, the DAX. For several weeks running, he's used the DAX to deliver steady gains to Strategic Currency Trader readers. Last week, it was 117%. That's on top of a Swiss franc play that rose 101%… and an oil play that rose 135%. And all of that took place between Monday and Friday of last week. To learn more about the unique, fast-moving and lucrative way Abe plays forex, look here:
As if on cue, the following infographic made its way into our inbox, courtesy of The Best Colleges…  In addition, tuition costs have risen 439% since 1982. High-end private schools that used to provide grants and scholarships now opt, instead, to put students on the debt treadmill.
Recall the little-traveled Covert's Crossing Bridge in Pennsylvania, near the Ohio state line, was dismantled over perhaps a 10-day stretch recently. A lot of work… but the value couldn't be denied. As scrap, the steel was worth $100,000. Over the weekend, two men were picked up and charged with the deed. If the story police tell is true, these were two pretty dim bulbs. For one thing, they went to a recycler and showed him a picture of the bridge, claiming they had permission to cut it down. Yeah, right. The recycler called the cops. But the recycler also strung them along… agreeing to buy 151/2 tons of steel for the paltry sum of $5,000. Considering the whole bridge was 40 tons and the scrap value was $100,000… they settled for less than 40 cents on the dollar. Heh. Had the sale actually gone through, they'd have had just enough moolah to post bail.
"OWS and TP hate Wall Street — love Main Street." "OWS and TP want an end to expensive wars." "OWS and TP hate big banks." "OWS and TP hate the Fed." "OWS and TP hate multi-national corporations and offshoring of American jobs." "But OWS and TP haven't spoken in years." "OWS is gay and loves tacos and MTV." "TP is xenophobic, homophobic and prefers chicken fried steak and Masterpiece Theater." "How do we garner their political support for the things they agree on without reminding them that they hate each other?" The 5: We might begin by looking elsewhere than politics for a solution. (Not referring to the groups by stereotypes might help, too.)
"All of those corrupt, self-serving and ignorant politicians were elected by an American electorate that is ill-informed, aloof, ignorant, government-dependent and plain stupid. Those same corrupt politicians sold our economy to Wall Street." "The same is true for why most Americans cannot put together $1,000.00 dollars in an emergency and will depend on a soon-to-be-bankrupt Social Security for their retirement. Most Americans spend more time planning for parties and TV football games than in preparing for retirement; they deserve no better that what they are sure going to get." "When the American and European economies (all Western economies, including China and India) totally collapse (and they will) in the not-too-long, distant future, at least in America, there will be a civil war between conservatives and liberals, along with fire and tanks in the streets of America." "There is also the possibility in America of an indiscriminate slaughter of American politicians (municipal, state, federal), big bankers and Wall Street types." "The conservatives will surely win that war, because they have all the guns." Cheers, Addison Wiggin P.S. "Remember in The Graduate," muses our roving reporter Jim Amrhein, covering Friday's Survival & Safety Summit, "when Mr. McGuire says to Benjamin Braddock (Dustin Hoffman), 'I want to say just one word to you… plastics.'" "Well, the one and only Chris Mayer of Capital & Crisis and Mayer's Special Situations has a word for the future of our money today: 'Snowplows.'" "Actually, he has lots of words for our wealthy future in this unique interview-format discussion with Eric Fry — snowplows being only one of them. "Others include "water heaters" and "Mongolia" (yes, you read those right). "Seriously, you simply won't believe what he says unless you hear it for yourself, along with Mayer's compelling rationales for all of it…" You should have received Jim's summary of the day's activities in your inbox earlier today. If you want to order the jam-packed MP3 files — Chris alone offered nine names during his presentation — you have until midnight tomorrow to act before the price goes up. Here's where to go.
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| Which Gold Miners Have Largest Upside? Posted: 17 Oct 2011 09:25 AM PDT Since hitting $1,900 an ounce through the beginning of October, gold has declined nearly 11 percent. Over the same timeframe, the NYSE Arca Gold Miners Index lost almost 13 percent. That's a closer performance correlation ... Read More...
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| Posted: 17 Oct 2011 09:20 AM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Gold has once again failed to sustain its footing for any length of time above the critical $1680 resistance level. Last Friday it managed to eke out a close above this level but just barely. "Just barely" does not constitute a convincing technical breakout so it had the opportunity to try to be more emphatic in today's session. As trade moved into early European trade, the gold price took off to the upside buoyed by comments out of the G20 summit that seemed to indicate decisive action and timely action was going to occur in Europe in regards to their bank recapitalization/stability mechanism plan. It moved up towards $1700 on strong buying which then evaporated as comments out of Germany throw a bucket of cold water on the hopes of traders/investors that the bureaucrats were going to follow through on intentions expressed at the summit. Down went gold along with silver and along with the st...
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| Fed should adopt GDP target, Goldman says Posted: 17 Oct 2011 09:15 AM PDT 17-Oct (MarketWatch) — The Federal Reserve should target the level of gross domestic product, Goldman Sachs economists said ahead of a wave of speeches from central bank officials. In a note published Friday night, Goldman Sachs said the best way for the central bank to loosen policy significantly further would be to target a GDP path, and commit to using more asset purchases to achieve that path. "While a shift to a nominal GDP level target would be a big decision, it would be consistent with the Fed's dual employment and price mandate," the economists wrote. [source] PG View: A timely position taken by Goldman Sachs in light of the inflation piece written by John Mauldin on Saturday. Yes, it does indeed seem that "inflation as a solution" is gaining traction. I say tom-a-to, you say tom-ah-to. I say inflation targeting, you say GDP targeting. Whatever you call it, it's synonymous with dollar devaluation and you best be saving in something other than dollars if you hope to come out the other side unscathed.
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| Kitco to broadcast Murphy-Christian debate at Silver Summit Posted: 17 Oct 2011 09:06 AM PDT 5p ET Monday, October 17, 2011 Dear Friend of GATA and Gold: Kitco will broadcast the debate at this week's Silver Summit conference between GATA Chairman Bill Murphy and CPM Group founder Jeff Christian on whether the silver market is manipulated. You can watch some promotion of the program at Kitco here: http://www.kitco.com/falltour2011/ CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT For Continuous Wealth Creation, the Hera Research Newsletter The life cycles of companies that produce natural resources allow investors to allocate assets among companies at different stages of development and to profit from transitions between stages. Based on natural resource company life cycles, the Hera Research Newsletter maximizes profits through deep, fundamental analysis at each stage of development and by moving gains back to earlier-stage companies in a continuous wealth-creation process. Hera Research covers a pipeline of high-quality natural resource companies at different stages of development. The companies span discovery and production of gold, silver, and platinum group metals, select base metals, oil and gas, green energy, agriculture, rare earth elements, uranium, and more. Discover the unique value of the Hera Research Newsletter by visiting: http://www.heraresearch.com/newsletter.html Or call Ron Hera at 360-339-8541x101. Join GATA here: 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 Golden Phoenix Signs Definitive Agreement to Acquire and Reopen Santa Rosa Gold Mine in Panama Company Press Release SPARKS, Nevada -- Golden Phoenix Minerals Inc. (OTC Bulletin Board: GPXM) has signed a definitive agreement to acquire a 60 percent interest, with an option to buy an additional 20 percent interest, in the Santa Rosa gold mine in Panama, now owned by Silver Global S.A., a Panamanian corporation. Santa Rosa produced more than 100,000 ounces of gold from 1996 to 1998 before being closed in part to low gold prices, which are now more than five times higher. Golden Phoenix intends to acquire its initial 60 percent interest in Santa Rosa by acquiring 60 percent of the share capital of a recently created company under the name Golden Phoenix Panama S.A., formed to hold and operate the mine. Tom Klein, CEO of Golden Phoenix says: "The agreement establishes a solid framework from which we can advance Mina Santa Rosa to production-ready status." For Golden Phoenix's complete statement, please visit: http://goldenphoenix.us/press-release/golden-phoenix-signs-definitive-ac...
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| Posted: 17 Oct 2011 08:51 AM PDT To anyone who is neither too young to recall, nor just got their first ever Bloomberg terminal a few days ago, CROX holds a special place in the heart since this perpetual momo stock, was without doubt the best coincident indicator of the market top back in 2007: the stock peaked just two weeks after the all time high in the S&P in October of 2007, only to collapse and never recover. Lightning may just have struck twice. Following an announcement that CROX cut guidance from $0.40, which was also the street's consensus, down to $0.31-0.33, the stock was halted for 30 minutes, only to reopen and plunge as much as 38% lower. The biggest loser? Not Paulson (for once), but Fidelity, which as the following chart from CapIq shows, decided to add 6.3 million shares in the Q2 quarter (having held nothing before), making it the second biggest holder. Oh well. There goes $50 million and some analyst's job. The biggest question, whether CROX part two is the same market peak signal that is was back in 2007 remains to be answered. From the guidance cut:
Somehow we feel many more guidance cuts are in store... CROX historical:
and top holders:
charts: Bloomberg and CapitalIQ
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| Gold Daily and Silver Weekly Charts Posted: 17 Oct 2011 08:37 AM PDT |
| Posted: 17 Oct 2011 08:20 AM PDT Amid the din of economic nonsense being bandied about since the collapse of the housing bubble and the steep ramping up of our national debt, there has been the persistent refrain that Washington should be run more like a business. If only more business people were in charge to wield their business acumen, we would have this country in shape in no time. But is that a good solution? Businesses seek primarily to increase their revenues and profits. Government revenue depends on taxes. Government accumulates taxmoney by squeezing it out of people's productive earnings with threats of audits, fines and imprisonment. Our government already collects roughly $2.1 trillion annually from the productive taxpayers of America. We hardly need to increase our federal government's revenues like a private business! Businesses sell products or services to voluntary buyers, always looking to increase their market share as much as possible. But what is the federal ...
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| Case Study: Buyouts Crystallize Value in the Market Posted: 17 Oct 2011 08:08 AM PDT Please Note: The Alert is a little light on charts today as we experienced a power outage for most of the day. Our Investments Team worked off of generators and mobile devices today to make sure we could get the Alert to you. We apologize to our shareholders who may have tried to reach us by telephone this morning when our phone system was temporarily unavailable due to the outage. Thank you for your understanding and loyalty. By Frank Holmes CEO and Chief Investment Officer U.S. Global Investors There’s value in the market. That’s the message the market is sending through the recent strategic acquisitions in the energy and gold mining spaces. This week it was announced that Sinopec, a large Chinese oil and gas company, is purchasing Canadian energy company Daylight Energy for $2.1 billion in cash. The deal was struck at a whopping 120 percent premium to Daylight’s share price prior to the announcement and a 43.6 percent premium over the 60-day we...
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| Deflation and the Secular Stocks Bear Market, The Most Important Decision Bernanke Will Ever Make Posted: 17 Oct 2011 08:01 AM PDT As many of you know who have read my work in the past, the dollar put in a major three year cycle low back in May. It has been my expectation all along that the rally out of that major bottom would coincide with another deflationary period and the next leg down in the stock secular bear market. So far this has been the case as stocks topped in May at the same time the dollar bottomed.
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| Kyle Bass Recommending Guns And Gold Posted: 17 Oct 2011 07:52 AM PDT
See full article here.
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Here's an intriguing question: What if the 21st century's version of a bank run were inspired not by a panic… but by protest?
Witness this scene at a Citi branch in Manhattan on Saturday:
But… "What happens," a reader pushes the point further, "if the Occupy Wall Street protesters inspire the masses to withdraw their 'savings' from the banks?"
You might be inclined to dismiss the question as a crazy one. Or… you might want to get prepared.
On the other hand, consider this: Prior to 
"Why Occupy? Why Tea Party? Why Protest?" asks John Robb of 
This morning, The Economist published an interactive map depicting worldwide public debt ratios:
"When grand promises must be fulfilled," we wrote in 
"Whenever governments are granted the power to purchase their own debt," Ron Paul writes in the preface to the 1982 edition of 
"No contortions are needed," our new friend Ralph Benko wrote in 
U.S. stocks are slumping today, as traders, once again, hang on every word coming out of Europe.
Not helping matters: The Fed's monthly report on factory activity in New York state. The Empire State Manufacturing Survey registered -8.5 in October.
Gold sits about where it did at this time on Friday afternoon, at $1,667. It made a tentative run toward $1,700 in overnight trading, but it didn't last.
Among so-called risk assets, oil is proving the most resilient today. A barrel of crude is down only half a percent, to $86.31 a barrel.
During a freewheeling panel discussion at our 
The euro is back in panic mode, pulling back to $1.377. That's enough to push the dollar index back above 77.
"As the week starts," writes our currency-trading specialist, Abe Cofnas, "the eurozone is rebalancing its fear portfolio as Greece votes on another key austerity package on Thursday. The very real possibility of a collapse of Greek political will is keeping investors on edge."
Asked during the 
The tale of the stolen bridge in Pennsylvania we regaled on Friday turns out to be a classic "dumb criminal" story, too!
"I've spent my life in the Rocky Mountain West," a reader writes, carrying on our Occupy Wall Street and Tea Party discussion, "surrounded by Tea Party regulars and urban liberals. The two have lot in common:"
"Putting the blame for America's political corruption in the political class and Wall Street bankers is missing the point altogether," writes another. "If you want to find the 'true villain' for today's corruption in America, look yourself in the mirror: You are the guilty one."
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