Gold World News Flash |
- Leonardo Da Vinci And Gold
- KWN Special - John Hathaway: Gold Stampede Now Imminent
- Gold Seeker Closing Report: Gold and Silver Gain Nearly 3% and 5%
- Central banks are losing fight against gold, Tocqueville's Hathaway tells King
- John Hathaway: Gold Stampede Now Imminent
- Tomorrow's EU Summit Meeting Cancelled / Gold and Silver Skyrocket on the News
- InvestLetters.com reviews my book
- The Gold Price Leapt Straight Up to $1,705, Next Resistance at $1,725, $1,750 Then The Big Heart Stopper $1,800
- Relative Strength Analysis is Important for Gold Stocks
- Dis and Dat
- Gartman Letter 'stunned' by favorable reference to GATA by FT's Gillian Tett
- Jeff Nielson: SLV and silver manipulation
- Europeans Behaving Badly
- As Germany raised fresh objections to the proposed rescue deal for indebted eurozone countries, the International Monetary Fund signalled it was considering stepping in…
- It's the London Gold Pool's collapse all over again, Embry tells King World News
- HUI attempting to make up lost ground against the S&P 500
- Gold Daily and Silver Weekly Charts - Comex Option Expiration Tomorrow
- John Embry - Physical Gold Demand Crushing Manipulators
- TLT: Another Great Set-up
- The PM Break Out Is Here: Now What?
- Don't Forget About Gold but Watch the Currencies
- Gold Breaks out
- #Occupy 18th Century France. John Law, the original Blythe Masters. The French Revolution, the original #occupywallstreet
- h/t @liamooo (Wills Duffy) Joe Stiglitz roasting of the kleptocratic financial tyranny at the UN; Video. Scathing.
- Housing Continues Its Death Spiral
- Citi On Whether Europe Can Ruin The World; Or How To Use An Insolvent Continent As An Excuse For Global Printing
- LGMR: India Festival Buying "Higher by Value, Lower by Volume" than Last Year
- Rick Rule - Gold & Silver Surging as Takeover Mania to Begin
- Ben Davies: Monkey business — reality, illusion, or delusion
- Gold warrior Grandich’s autobiography is now in print
| Posted: 25 Oct 2011 05:37 PM PDT Graceland Update
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| KWN Special - John Hathaway: Gold Stampede Now Imminent Posted: 25 Oct 2011 04:02 PM PDT  With gold and silver blasting higher, along with the mining shares, as the Dow plunged over 200, today King World News interviewed four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. When asked about the tremendous action in both gold and silver, Hathaway replied, "Get used to it, we are going to see $50 and $100 days both ways. To me we have had our correction, shook out a lot of people and now there is sellers remorse. Now those people are not able to get back in except by paying a higher price, so this is classic bull market action."
This posting includes an audio/video/photo media file: Download Now |
| Gold Seeker Closing Report: Gold and Silver Gain Nearly 3% and 5% Posted: 25 Oct 2011 04:00 PM PDT Gold climbed $12.58 to $1663.98 by a little before 7AM EST before it fell to see a slight loss at $1648.46 by a little after 9:30AM, but it then jumped to as high as $1703.10 by early afternoon in New York and ended with a gain of 2.88%. Silver dropped 30 cents to $31.35 before it soared to as high as $33.288 in late trade and ended with a gain of 4.61%.
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| Central banks are losing fight against gold, Tocqueville's Hathaway tells King Posted: 25 Oct 2011 01:20 PM PDT 8:15p CT Tuesday, October 25, 2011 Dear Friend of GATA and Gold: Interviewed today by King World News, Tocqueville Gold Fund manager John Hathaway seems to have come over completely to the gold price manipulation camp. Speaking of the Western central banks and attempts to paper over Europe's debt problem, Hathaway tells King: "To the extent they were trying to get gold down in advance of whatever this agreement is supposed to be regarding Europe, it has clearly failed. It wasn't very successful and I've got to believe that whatever bureaucrat in the basement of whatever central bank was in charge of that, he's probably been fired. If he wasn't, he's probably not going to be so brave this next time around. "The central banks are losing to the extent that they are failing to keep the gold price down. You know whoever is fighting this battle is fighting a losing battle. So I just don't think there is going to be much courage left on the central bank side. If this latest London Gold Pool-style manipulation fails and you see more of this disgust with paper currencies, that's where you will get nothing but air to the upside" for gold. Indeed, as the remainder of the interview makes clear, Hathaway couldn't be more bullish for the metal and for gold mining stocks. From his lips to the Great Market Manipulator's ear -- and we don't mean Bernanke. An excerpt from Hathaway's interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/26_K... CHRIS POWELL, Secretary/Treasurer 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_... Join GATA here: New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf
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| John Hathaway: Gold Stampede Now Imminent Posted: 25 Oct 2011 01:12 PM PDT from King World News:
John Hathaway continues: Read More @ KingWorldNews.com
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| Tomorrow's EU Summit Meeting Cancelled / Gold and Silver Skyrocket on the News Posted: 25 Oct 2011 01:09 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: Gold and silver skyrocketed with the news of the cancellation of the European summit meeting tomorrow as nobody could come to agreements on the recapitalization of all the banks in trouble and on the Greek debt haircut to be administered to all holders of their debt. I will go over this in the body of my commentary. First let us head over to the comex and see how trading fared: The price of gold rose $48.10 to $1699.60. Silver rose to $33.03 for a gain of $1.41. In the access market right now: Read More @ HarveyOrgan.Blogspot.com
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| InvestLetters.com reviews my book Posted: 25 Oct 2011 01:04 PM PDT The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! October 25, 2011 02:53 PM My thanks to InvestLetters.com for posting this review of my book, Confessions of a Wall Street Whiz Kid. Click here to read the review online. Click here to buy the book. Peter Grandich has just released his latest book with financial and life insights that have gotten him to the enviable position he is in. Currently, Peter's website serves as a promotion platform for his clients in the junior resource mining sector and occasion life thoughts. Investors who have followed Peter's advice on his website have been well rewarded with winning stock market trades. Recently (from the what have you done for me lately category), Peter called to the day the beginning of the post 2008 crash rally in March 2009 as well as the cyclical top in silver – again to the day – near $50. This book is a short, fast, enjoyable read wit...
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| Posted: 25 Oct 2011 12:31 PM PDT Gold Price Close Today : 1651.50 Change : 16.40 or 1.0% Silver Price Close Today : 31.620 Change : 0.447 cents or 1.4% Gold Silver Ratio Today : 52.23 Change : -0.223 or -0.4% Silver Gold Ratio Today : 0.01915 Change : 0.000081 or 0.4% Platinum Price Close Today : 1566.00 Change : 22.80 or 1.5% Palladium Price Close Today : 641.55 Change : 1.55 or 0.2% S&P 500 : 1,229.05 Change : -25.14 or -2.0% Dow In GOLD$ : $146.53 Change : $ (4.07) or -2.7% Dow in GOLD oz : 7.088 Change : -0.197 or -2.7% Dow in SILVER oz : 370.23 Change : -11.95 or -3.1% Dow Industrial : 11,706.62 Change : -207.00 or -1.7% US Dollar Index : 76.04 Change : -0.474 or -0.6% I reckon that WAS an upside down head and shoulders on the GOLD PRICE chart. Once gold cleared that $1,660 neckline about 10:00 a.m. (taking off with a runaway gap) it never even paused until $1,685, took a deep breath, then leapt clean to $1,705. Friends, by the time the janitor pulled out the broom on Comex, the GOLD PRICE had added $48.10 (2.9%) and stood at $1,699.60. In the aftermarket it's shoving against $1,705 resistance. Y'all see how those government surprise parties can mess with markets? Gold was building a rally anyway, but that goose from the dithering Eurocrats really put power behind it. Measured target for this rise is $1,715, but as long as that European party is raging, gold can keep on rising. $1,725 stands next resistance, then $1,750, then the big heart-stopper at $1,800. I still expect we will see another decline for a final kiss goodbye to the September lows (not that the price will reach that far necessarily, only that a double bottom will appear), but for right now y'all don't stand in gold's way, unless y'all want everybody to think you've left the room when you turn sideways. One last thing: y'all watch that 50DMA, now at $1,742.82. The GOLD PRICE might stop there. Also keep an eye on $1,775, where gold collapsed in September. Gold might reach that point, too. The SILVER PRICE was pleased to slap the jaws of all its detractors today. The Comex janitor found silver up 141.4 cents or 4.5% (if I'm lying, I'm dying) to 3303.4c. Somebody who had BADLY missed the message was selling SILVER about 7:00 a.m. and sold down all the way down to 3139c at 10:00 a.m. Quicker than a lightning flash, silver gapped up over 3160c and shot straight to 3230c. It jogged there a little, then shot another 100c straight up to 3320c. In the aftermarket its trading 3317.5c. The SILVER PRICE is targetting 3400c. Really would not be a good sign for silver to fall much below 3300c, if it expects to keep rising. 3350c is the next big barrier. This was a great move today, but only brings silver back to resistance at the top of its 5 week trading range. Must move higher tomorrow to confirm its upward ambitions. Today you are witnessing why you must gird up your loins, swallow hard, and buy SILVER and GOLD on sharp declines -- because the sharp rises will follow. It's a bull market. It has an indefatigable upward bias. Yesterday I omitted the other point I wanted to make from Michael Lewis' little book, Boomerang. He interviewed Texas hedge fund manager Kyle Bass several years ago. Bass had called the mortgage collapse in the US and made boatloads with Credit Default Swaps -- think, "bets against mortgage backed securities." But Bass looked at how the 2008 US crisis was handled, and began to realize that a new phase was unfolding: governments were back-stopping the banks. And it has happened in Europe. Of course, it's impossible for them to do that, because the banks' bad assets -- in sovereign debts, derivatives, MBS, you name it -- are so bottomlessly vast no country could pay them. Yet, that's what they're trying to do. This guarantees a massive financial crisis, perhaps a collapse. When Lewis asked Bass what he would tell his mother to buy under these circumstances, Bass shot back, "Guns and gold." Lewis gave the equivalent of a nervous giggle over that, intensely uncomfortable with that politically incorrect answer. Yet it was coming from a man who had a 100% track record. Frankly, I get tired sometimes -- tired of pointing out the obvious. I reckon "stating the obvious" is my only talent, and in the land of the blind the one- eyed man is king. Lately I've been remembering that I have no right to get tired, the world just is what it is, and people delude themselves as they will, afraid to look the truth in the eyes. The ones who have ears will hear, and the rest will never hear anything. The music from Washington and Wall Street will keep drowning everything else out, until the music stops. The deal in Europe is falling apart, and now the Eurocrats have no plan to present at the planned meeting on Wednesday. Bankers don't want to take a 60% haircut on Greek debt, Germans don't want to bail them out. Greed and pride have driven the banks crazy, since they are being offered 40c on the dollar for debt that is realistically worth zero. But I reckon that's why they call them "banks." Bottom line for us: whether they banks take 40% or 60%, WHERE WILL THE MONEY COME FROM? The ECB will print it, and never mind the transmission mechanism. And more inflation will beget more inflation, and silver and gold will thrive. May take a few more months to materialize into a renewed rally, but 'twill happen -- y'all take the word of a one-eyed, natural born fool from Tennessee on that. Fears out of Europe today sent stocks down, the dollar and yen up, and goosed gold and silver strongly. The Dow lost 207 points (1.74%), 2/3 of the previous two days' gains, to close at 11,706.62. S&P500 lost 25.14 or 2% to close at 1,229.05. Dow's five day chart peaked a bit above 11,900 yesterday, rolled over, and fell out of bed. If 11,700 cannot hold, then 'twill hit 11,400 quicker'n a frog can tongue a fly out of the air. The Dow has now reached its 200 DMA (11,967), a frequent barrier to bear market rallies. The pattern formed since August, when the Dow fell from the Jaws Of Death, has been ANOTHER broadening or megaphone pattern. Megaphones are burning up buying power, a market wrestling and writhing before it gives up. Stocks -- a GUARANTEE for your retirement, but y'all had better ask exactly WHAT they guarantee. US DOLLAR INDEX rose 9.4 basis points (0.12%) to 76.122. You can bet your last sovereign that the NGM from the US and all over the world, along with the Central Bank Yellow Running Dogs, are working like threshing machines trying to keep that dollar from running away. Euro closed 139.02, down 0.19%. Yen made a new all time intraday high at 132.04c/(Y75.73= $1), closed 131.47, and is trying to take off. 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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| Relative Strength Analysis is Important for Gold Stocks Posted: 25 Oct 2011 10:21 AM PDT Relative strength is defined as the measuring of one market against another over a specific period of time. Relative strength is an important concept in any bull market. After all, if you’ve found the bull market why not find the leaders? We consider relative strength particularly important when analyzing gold and silver stocks. There are hundreds of gold and silver stocks and despite the larger trend, they won’t always trend in the same direction. As a result, you need to be a stock picker in this sector if you want to earn the best returns. How do you apply this analysis? We use GDX and the HUI as our indicator for the large gold stocks. Lets take a look at GDX. The market has been in a trading range for the past year. A weekly close above $58 should confirm the bottom. When the market is in a trading range, you need to buy relative strength and avoid the weak performers. The stocks that are weak can break support while the strongest stocks will either...
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| Posted: 25 Oct 2011 10:17 AM PDT On Cocktail Party Stocks A chart of NFLX and some thoughts.
There are good and valid reasons for this 75% drop in 4 months. The stock deserved to have gotten crushed. But this is more than just bad company news. There are a bunch of other "names" that have been slammed to the ground of late (FSLR/MCP etc). Those who listened to the TV hosts, stockbrokers and "smart guy" talk over drinks deserve everything they get. But I have to ask, "How much of the 'air' in NFLX was just a phony push caused by Ben Bernanke's Fed?" The answer is that Ben's contribution to this stockholder debacle is not zero. All the Fed talkers have said again and again they want to force people to buy risk assets. They succeeded. And along the way those that listened to Ben got stepped on. For sure this will happen again and again. When money has no intrinsic value due to ZIRP it will create froth in prices of stocks, commodities and bonds. I can't think of a dumber policy than that. I hope that Bernanke followed his own advice and loaded up on NFLX.
On Flat Taxes So Perry is out with his flat tax. The joke is that under his proposal one could either pay a flat rate or go back to the 1040 and do it the old way. This achieves a worst-case outcome. Less revenue and more paperwork. I'm in favor of ripping up the tax code. I'm also in favor of a progressive tax code where those with high incomes pay more. The arguments from liberals are that with a flat-tax (or a 999) those in the lower brackets would pay more than they do today. I don't think that has to be the case. The critical question when considering an alternative tax plan is what happens to FICA (payroll) taxes. The combined FICA is now 15.3%. In a flat tax world, that would be eliminated. Half would go to the worker via lower taxes. The other half would be retained by the employer. The employer could rebate that amount to the worker with a 7.65% salary increase. There would be no pre or post tax consequence for employers to do that. Their revenues/profits would not be impacted at all. For a worker who makes $40k who today is subject to FICA AND pays 10% federal tax the numbers are: Current treatment: Pre tax = $40,000 Federal Tax = 10% Take home including FICA (7.65%) = $33,000
With a 20% flat tax: Old salary = $40,000 New Salary (7.65% increase) = 43,060 Take home = $34,448 A flat tax approach could be structured to achieve a neutral/positive tax result for the average worker. Liberals are fools not to embrace this. It is the most progressive tax approach out there. It would put money in the pockets of those making less than $100k.
On Rage I got an email from a regular reader. This one is a full professor at a top Ivy League school. He had this to say:
One of my usually staid colleagues said to me the other day, "I am hoping for some violence." How odd. How odd indeed. It would be a huge mistake to underestimate the level of anger in our society. Could this go from a relatively peaceful OWS to something far more ugly? You bet it could. All that would be required is some more bad economic news and an increase in gas prices……
 .  .  On FX I'm hearing that many big players have stepped back from the FX market. The devaluation of the CHF a few months ago hurt some of the interbank hitters. Hedge funds have been whacked every which way and have also cut positions. The UBS rogue trader story scared a bunch of the prop traders at the big banks. They've scaled back too. So without the usual dancers adding liquidity the FX market is reverting to good old supply and demand to set prices. As Zero Hedge has been reporting for some time, there has been liquidation of dollar based assets by EU banks. Some of the liquidity is being repatriated back into Euros in an effort to prop up weak balance sheets.As a result, there has been demand for EURUSD. The strong Euro flies in the face of the crumbling and bumbling of what is actually happening. That does not matter. As long as there is Euro repatriation, the EURUSD will remain overvalued. It's about day-to-day demand, not the backdrop of the news. I can't predict how long this will take to wash out. My guess is under a month. I think the Euro is a big short. There is also a very big question growing for the Yen crosses. I'm betting we see some action by the BOJ before month end. This is, net - net, a strong dollar story, the worst news for Obama, Geithner and Bernanke. It's also a strong gold story. I can see EURUSD = 1.3000, Gold = 1900, USDX = 82 by year end Seatbelts on.
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| Gartman Letter 'stunned' by favorable reference to GATA by FT's Gillian Tett Posted: 25 Oct 2011 09:47 AM PDT From The Gartman Letter ... We turn to gold, which is strong, and we are somewhat stunned to have read in the Financial Times on the way home from out west of the embrace that Ms. Gillian Tett has given to GATA and the folks who have promoted the notion that governments everywhere have worked collusively to keep the price of gold down. (See http://www.gata.org/node/10591) Ms. Tett is influential, and well she should be, for her work in the past on a myriad number of concerns regarding finance has always been of the very highest order. When Ms. Tett writes, we read. It has always been thus and it shall almost certainly always be thus. Therefore, with Ms. Tett's endorsement of GATA's main thesis, gold is higher ... sharply ... and is back to the levels at which we sold half of our position several weeks ago. ... 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: 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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| Jeff Nielson: SLV and silver manipulation Posted: 25 Oct 2011 09:09 AM PDT 4p CT Tuesday, October 25, 2011 Dear Friend of GATA and Gold (and Silver): Bullion Bulls Canada proprietor Jeff Nielson's commentary this week notes the similarity between the long position of the silver exchange-traded fund SLV and the silver short position of the custodian of SLV's supposed metal, JPMorganChase, a conflict of interest GATA long has complained about. (See http://www.gata.org/node/8600.) Nielson notes the hint given by CPM Group executive Jeffrey Christian during his debate with GATA Chairman Bill Murphy at the Silver Summit last week that MorganChase uses SLV silver to insulate itself against Comex futures market margin increases. Nielson concludes sardonically, "With 'enemies' like Jeffrey Christian, who needs 'friends'?" Nielson's commentary is headlined "SLV and Silver Manipulation" and you can find it at Bullion Bulls Canada here: http://www.bullionbullscanada.com/index.php?option=com_content&view=arti... 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: 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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| Posted: 25 Oct 2011 08:59 AM PDT Addison Wiggin – October 25, 2011
Today, those gains vaporized because a meeting to discuss the "next steps" toward that "new plan" was cancelled. Oy.
Yes, there are exceptions, like the Reykjavik arms control summit in 1986, when former President Ronald Reagan abruptly walked out on Soviet leader Mikhail Gorbachev because he didn't want to share Star Wars missile defense research:  But most of the time, the luminaries don't show up for a summit unless their minions have already agreed to something.
But now German leaders are pushing for the holders of Greek government debt to take losses of up to 60%. French leaders think this would be a terrible idea… mostly because French banks would absorb the bulk of those losses. [Ed note: The British, apparently, have opinions, too, even though they're not part of the eurozone. Yesterday, the French president, Nicolas Sarkozy, was heard telling the prime minister of Great Britain to "shut up," albeit in his native Gallic tongue. "We are sick of you criticizing us and telling us what to do," Sarkozy went on. "You say you hate the euro, and now you want to interfere in our meetings." There are three children in the Wiggin household. Because of similar comments made between them, we've taken to having them read a book called How to Behave and Why.  Among other things, the book helps them see that getting along with each other is better than fighting... for various reasons, including, but not limited to, dividing up the misbegotten spoils of hard-won battles with their parents.]
Assuming this bickering in Europe is going to continue… or get worse. And in lieu of having Laissez Faire Books provide them with a French or German translation to How to Behave and Why… please prepare your own affairs accordingly, right here.
Traders are also chewing on a pair of mediocre numbers…
The giant figure includes pension funds, employee health care funds, unemployment insurance funds, bonds outstanding… and well, something we like to call "general overspending." 10 states have racked up a per capita debt higher than $3,000. The figure in one state, Connecticut, tops $5,000. The report, while illuminating, doesn't tell the whole story. In addition to conventional debt and pension obligations, there is also a state's proximity to Washington's pocket book. You can see how your state stacks up on all three of those measures in our report American Oases, still available free to all new subscribers of Apogee Advisory.
Medicaid patients in Arizona will be limited to 25 days in the hospital per year, come the end of this month. In Hawaii, the limit will be 10 days. You don't think this affects you because you're not on Medicaid? "Hospital executives," according to USA Today, "say the moves will restrict access to care, force hospitals to absorb more costs and lead to higher charges for privately insured patients."
Harrisburg, you might recall, declared bankruptcy earlier this month. As we told you at the time, the state was offering a bailout plan, but a majority of city council members felt they'd be better off taking their chances in bankruptcy court, rather than going even deeper into debt, Greece-style. The declaration by Gov. Tom Corbett puts Harrisburg a step closer to a takeover by the state: "You'll take our bailout, or else," in other words… again, a trend we expect will increase among other munis around the country as the crisis wears on.
While poverty grew 53% in the suburbs, it grew only 26% in cities. Two-thirds of that suburban increase came after 2006: The people who fled center cities for more "affordable" housing in the boonies ended up buying into a bubble. "The whole political class is just getting the memo that Ozzie and Harriet don't live here anymore," says Edward Hill, dean of the Levin College of Urban Affairs at Cleveland State University. We're not surprised. "The suburbs will be the slums of the future," our friend James Howard Kunstler has long declared.
The new trend this year, as sniffed out by John Robb at Global Guerrillas, is the "increasing presence of gang members in the military (primarily the Army) and the transfer of combat skills gained in Iraq/Afghanistan to the street. "The FBI report states that 100 police jurisdictions have reported coming into contact with gang members with recent military experience." As usual, the FBI is late to the party. As far back as 2006, the Chicago Sun-Times found graffiti of the Gangster Disciples, Latin Kings and Vice Lords… on armored vehicles, concrete barricades and bathroom walls. The FBI did note in its gang report two years ago that gangs are mushrooming in the suburbs:  "The big worry about gangs in the U.S. military," Mr. Robb writes, "is a repeat of what happened in Russia when the Soviet Union collapsed. When the Soviet Union collapsed economically, hundreds of thousands of Soviet soldiers with fresh combat experience in Afghanistan (and little to offer in terms of skills) were dumped onto the street and into the waiting arms of criminal organizations." "This process quickly turned Russian economics into a shooting sport. A place where wealth and firepower became synonymous." This is another wrinkle to the disturbing scenario we've painted in our most-recent forecast: a breakdown in civil order, gangs invading the suburbs where poverty is mushrooming. But this is what happens when the mother of all financial bubbles finally starts to pop. If you haven't started thinking through the consequences… and what you can do to protect yourself… isn't it time?
Still, as we saw yesterday, the Fed's other reliable recession indicator — the Chicago Fed National Activity Index — does not confirm the trend. Really, is it too much to ask that central bankers get their act together? Nah. Don't bother, it's a rhetorical question.
But it turns out that was nothing. It was deep in the woods of western Pennsylvania on a nearly abandoned road. Here's a better one… right in the middle of downtown San Francisco:  Someone made off with the 122-year-old bell at St. Mary's Cathedral sometime in the last month. Nobody noticed it was missing until Sunday morning. Forged in 1889 here in Baltimore, the bell survived the great San Francisco earthquake of 1906… and a fire at the church in 1962. After the fire, the bell was moved from its tower to a wooden platform on church grounds… so the thieves didn't have to climb dizzying heights. Still at 2.7 tons, the bell required a crane and a large truck to haul away. Made of 80% copper and 20% tin, the melt value is roughly $75,000. It's hard to pawn something that distinctive, we'd imagine… but if the thieves have the resources to haul it off, perhaps they have the resources to melt it down, too. Strange days.
"Damn it, this is the thinking that put this economy where it is — rinse and repeat. When did the people lose the idea of common sense? When did they lose the idea of VALUE? When do people learn to ask the question, what is the cost, not what is the payment, and what is the REAL VALUE?" "However you cut it, if the people cannot afford what they signed up for originally, they will not be able to afford the new offering. Do people really think that they could afford the risk they took originally, even without the financial crisis?" "The can this administration keeps kicking is getting pretty full of sand. Won't be long before they break their toe."
"I don't understand how postponing the inevitable collapse of the majors by pretending everything is all right is helping anyone."
"In spite of what many readers think and say, OWS have actually gotten it right. There is no point in changing old corrupt politicians with new corrupt politicians. We must stop those practicing and financing corruption, i.e., big banks and the Fed." "'We would inflict even more damage to the system by taking money out and bringing down the big banks,' says one, calling those of contrary opinion 'idiots.' First, 'the system' is broken. The sooner it fails, the better." "Second, the big banks have stopped supporting any wealth-creating activities a long time ago and morphed into wealth-confiscation and destruction instruments. They engineered the past bubbles (Internet, and then housing) and destroyed the wealth of countless people. How is bringing them down a bad thing?" "The banking system in the Western world is simply way too big nowadays. It is in need of serious pruning. The society simply cannot turn so many bank managers into billionaires anymore. About half of the banks have to go." "Always a pleasure reading your commentaries. Keep up the good work!"
"What should have happened is that they would have entered bankruptcy, and they would then have been taken over by other institutions. Their assets (sic) would have been sold off or discarded. The banks themselves would have continued running, and life would return to somewhat normalcy. That's exactly why the bankruptcy laws were enacted." "What would have also happened is that the banks' internal records would have been made public, leading to lawsuits, and most of the execs would now be behind bars, where they belong. Instead, the government came up with a stupid TBTF label that most people immediately bought into." "Also, any government dealings with those banks would have been revealed, and that would make for interesting reading."
"How can we honestly give you meaningful feedback, when we don't know what you are talking about?" The 5: No, we haven't taken the wraps off. Not yet. But we can tell you: If you're determined to take your future into your own hands, there's perhaps no more important step you can take than signing up here, so you'll be in front of the line when we do. Here's the problem, as we see it. A bevy of banks colluded with their friends in Washington to engineer one bubble after another… the tech bubble, and then the housing bubble, now the sovereign debt bubble… serially wiping out the well-intentioned savings of millions of people. We've written books about it… sent countless emails… made a film… and still, we see the lambs getting led to slaughter. The danger remains… but this time, we're determined to help you pull through with your wealth intact. And in some cases… watch it grow. If experience holds, many will be called… few will take the challenge. To make sure you're first to know when it's "go time," please indicate your interest here. Cheers, Addison Wiggin P.S. On another fun note, we've finally gotten everyone's schedules in sync, and the dates are set for our next Agora Financial Reserve "Chill Weekend" at Rancho Santana on Nicaragua's Pacific frontier:  If you're a Reserve member, you are cordially invited to join us for five days and four nights… complete with sightseeing tours, three meals a day, cocktails, receptions and even ground transportation. The dates are Dec. 14-18. Yes, they're close to the holidays. Yes, we know this is fairly short notice. So to make it worth your while, we're going to pick up a significant portion of your costs. For details, just drop a line to Marc Brown at this link: Availability is limited. Our previous excursions have filled up after one email. Please respond only if you have a serious interest in investing in the property.
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| Posted: 25 Oct 2011 08:51 AM PDT Eurozone debt crisis: talks break down as Angela Merkel rejects rescue deal Don't be fooled by GLD or SLV. Only GoldMoney offers real bullion allocated in your name.
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| It's the London Gold Pool's collapse all over again, Embry tells King World News Posted: 25 Oct 2011 08:39 AM PDT 3:30p CT Tuesday, October 25, 2011 Dear Friend of GATA and Gold: The precious metals are moving up again as investors realize that only unprecedented money creation will resolve Europe's bankruptcy, Sprott Asset Management's John Embry tells King World News today. Massive demand for real metal is overwhelming the price suppression scheme much as it did in the last days of the London Gold Pool in 1968, Embry says. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/25_J... Meanwhile, in another interview with King World News, resource broker Rick Rule predicts a wave of acquisitions of junior mining companies as major miners, flush with cash, seek to replace their reserves cheaply. An excerpt from that interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/25_R... 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: 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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| HUI attempting to make up lost ground against the S&P 500 Posted: 25 Oct 2011 08:23 AM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] If one goes back to the beginning of July of this year, you can see that for the next two months, the mining shares were outperforming the broader equity markets as a whole. Once September rolled around, the shares gave back their gains against the broader market and severely underperformed. With today's strong surge higher, we might be seeing the reversal of this recent lagging in terms of performance. Much depends on the willingness of traders to see gold and silver as "SAFE HAVENS" and not as part of the broader risk trade. The reason the mining shares are doing so well in today's session, especially with the broad based selling across the general equity world, is that traders/investors have re-awakened to both gold and silver as safe havens in the midst of some very palpable fears about the shaky European debt crisis. As money flows have returned to those precious metals, flows are also co...
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| Gold Daily and Silver Weekly Charts - Comex Option Expiration Tomorrow Posted: 25 Oct 2011 08:12 AM PDT |
| John Embry - Physical Gold Demand Crushing Manipulators Posted: 25 Oct 2011 07:49 AM PDT  With gold and silver exploding to the upside, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. KWN mentioned to Embry that we could potentially add 30% more bulls to gold and 35% more bulls to silver before this rally ends. When asked about the tremendous pessimism regarding gold and silver, Embry replied, "The sentiment in the gold and silver markets is terrible. This is a combination of two things. First you have had bad price action prior to today and second you have amazingly negative press in the mainstream media, which is typical."
This posting includes an audio/video/photo media file: Download Now |
| Posted: 25 Oct 2011 07:47 AM PDT The last time I identified a "great set up" it was in the Market Vectors Gold Miners (symbol: GDX). This was only a couple of days ago, and since that time, the GDX is up nearly 10%. Another great set up is brewing as well ... Read More...
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| The PM Break Out Is Here: Now What? Posted: 25 Oct 2011 07:28 AM PDT
Submitted by FMX Connect Yesterday we published an article calling for a breakout in Precious Metals with a focus on Silver.
The breakout has occurred and you should be long both metals. If you are long, or want to get long here your stop losses will be wide and volatility based. Here are some tips on managing the positions:
Good Luck.
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| Don't Forget About Gold but Watch the Currencies Posted: 25 Oct 2011 07:24 AM PDT A recent International Monetary Fund report estimates that China exports more inflation to the developing countries than had been previously assumed. For every 1 percentage increase in Chinese inflation ... Read More...
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| Posted: 25 Oct 2011 07:22 AM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Gold bulls finally managed to beat back the line of defense erected by the perma shorts at the Comex in today's session as safe haven buying came into gold from all quarters early in the session and continued to build as it wore on. The technical breakout above resistance also brought in both short covering and new momentum based buying. Volume on the upside move has been very good which is generally regarded as confirmation to the validity of the breakout. The next technical target lies near the $1720 level. Downside support now moves up towards $1680 with much better support near $1650. Helping confirm the move is the surge in both the mining shares as evidenced by the HUI and the upside breakout above $32.50 in Silver. Note on the silver chart that the market is currently up against the 50% retracement level of the most recent leg down. Clearing this should allow it push first toward...
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| Posted: 25 Oct 2011 07:19 AM PDT Don't be fooled by GLD or SLV. Only GoldMoney offers real bullion allocated in your name.
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| Posted: 25 Oct 2011 07:16 AM PDT Professor Joseph Stiglitz, The global economic situation and sovereign debt crisis Don't be fooled by GLD or SLV. Only GoldMoney offers real bullion allocated in your name.
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| Housing Continues Its Death Spiral Posted: 25 Oct 2011 07:13 AM PDT Oct 20 (Reuters) - The Russian central bank will continue raising the share of gold in its gold and foreign exchange reserves, the central bank First Deputy Chairman Alexei Ulyukayev said on Thursday. "We are not planning to step away from this path. We are acquiring huge volumes (of gold)," Ulyukayev told the parliament.The Case-Shiller 20 city housing index for August was released this morning, showing a greater than expected 3.8% year over year decline. Here's an article LINK That kind of speaks for itself and I don't have a lot to say about it other than housing is still a long way away from finding some sort of "bottom" level. Obviously the housing market ballooned up on the hot air of massive debt financing. As the debt defaults continue to pile up, the value of the housing stock continues to implode. The Case-Shiller chart below shows graphically the degree to which housing values will likely fall: (click on chart to enlarge)  This chart is a few months old. The latest index value was a little above 140. The average long term index value is 100. This index value is based on over 100 years of inflation-adjusted housing data. Unfortunately, just like bubble markets significantly overshoot their "intrinsic" value to the upside, when markets go through a "regression to the mean" correction they often overshoot once again to the downside. If you are a homeowner, you should hope that the mean index value of 100 is the bottom. Of course, as we know, "hope" is not a valid investment strategy. I just heard another tragic short sale story. A friend of mine lives in an area of Denver that traditionally was very upper middle class, with the average home trading for north $1.5 million during the bubble. One of his neighbors had a huge house listed for $1.2 million. It went into a short-sale contract with $1.7 million of mortgage debt. Based on comps, we believe the contract price is around $800k. The bank will now have to mark to market the mortgage and eat around $900k. The house next to this one is in foreclosure. Apparently several homes in this neighborhood are in various stages of default/foreclosure/short sale. This isn't a newer "faux mansion" development - this is an older money area that had been considered financially stable. This situation is not unique to just this neighborhood, just Denver, just Colorado. Most of the volume in foreclosures has occurred in the middle/lower end of the housing market. Now the banks are going to have to start working on the higher end. I know of at least 2 different people living in what were originally $1 million-plus homes who have not payed their mortgage for over a year and have not even been contacted by the bank about being in default. When you hear about this, it means the bank is still carrying the mortgage at full value. I have argued many times that the true, mark-to-market financial condition of U.S. banks is substantially worse than is being reported using GAAP financials and the numbers being pimped by Wall Street. 
This posting includes an audio/video/photo media file: Download Now |
| Posted: 25 Oct 2011 06:54 AM PDT
While Citi's Stephen Englander does not go as far as concluding that a collapse of Europe would be sufficient (but certainly necessary) to "ruin" the world, he does have a very relevant conclusion in a piece just released to clients: namely that central banks everywhere, but in Europe, are using the recessionary slow down in the insolvent continent, which nobody seems to believe any more will be able to avoid a recession (an event which S&P stated in no uncertain terms would lead to a downgrade in France and other core countries), as the perfect political smokescreen to push the turbo print button on their respective money printers. To wit: "Eurozone weakness has also generated indications that policy will be eased elsewhere (even if not in Europe). Policymakers in the US, UK and elsewhere [ZH: and Japan as of 2 hours ago] are using the euro crisis as cover to ease policy. For example, the FRBNY's Dudley yesterday characterized even the improved US numbers as disappointing and pointed to further measures if growth did not improve. Chinese growth targets and policy maker comments imply that measures might be taken if there is any sign of slowing. The BoE has already expanded it QE program. At a minimum the comments are suggesting that the policymakers are willing to take aggressive action to offset any weakness. Overall the bias towards stimulus appears to remain in place outside Europe." What is supremely paradoxical is that with the ECB stuck, any incremental QEasing by the world will merely result in an ever stronger euro, until exports by Germany become almost as impossible as those of Switzerland pr peg. As a result, organic European growth at whatever remaining centers of productivity and commerce will be truncated until it is gone completely, even as the EURUSD approaches 2.00, as the Fed embarks on what will be by then something between QE5 and QE10. And there are those who wonder why gold makes sense not only here, not only at $1570 a month ago, but at $1900 under two months ago... From Citi's Stephen Englander: The downgrading of euro zone growth rates has led to concern that euro zone economic weakness will derail global growth. For FX, a global downturn driven by euro zone weakness would dramatically change the prospects for risk-correlated G10 currencies along with EM currencies.
2) The other side is that the weakness in the euro zone is not happening in a vacuum. Figure 3 shows that as sovereign risk spreads have driven euro zone rates up (and are contributing to the slowdown in the euro zone), they also have driven rates down elsewhere in the world. So as was the case in 2008/09, the sharp drop in demand in hard-hit countries is driving liquidity provision elsewhere. This is crowding-in, however imperfectly. At a minimum the rate drop will serve to mitigate the external demand impact of slow growth in Europe.
3) Eurozone weakness has also generated indications that policy will be eased elsewhere (even if not in Europe). Policymakers in the US, UK and elsewhere are using the euro crisis as cover to ease policy. For example, the FRBNY's Dudley yesterday characterized even the improved US numbers as disappointing and pointed to further measures if growth did not improve. Chinese growth targets and policy maker comments imply that measures might be taken if there is any sign of slowing. The BoE has already expanded it QE program. At a minimum the comments are suggesting that the policymakers are willing to take aggressive action to offset any weakness. Overall the bias towards stimulus appears to remain in place outside Europe
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| LGMR: India Festival Buying "Higher by Value, Lower by Volume" than Last Year Posted: 25 Oct 2011 06:52 AM PDT London Gold Market Report from Ben Traynor BullionVault Tuesday 25 October, 08:00 EDT Gold Climbs, Euro Crisis "Terrifies Not Just the Paranoid", India Festival Buying "Higher by Value, Lower by Volume" than Last Year U.S. DOLLAR spot gold prices climbed to $1664 an ounce Tuesday morning London time – 1.8% off the month's high – while stocks and commodities also gained and US Treasury bonds fell, following reports that European negotiators are demanding larger Greek debt writedowns. "Strong resistance is pegged...[at] the 100-day moving average of $1665," said yesterday's note from Swiss gold bullion refiner MKS. Were spot gold to close below $1638, however, this "would indicate the downside potential of the metal" MKS added. Tuesday saw silver prices climb to $32.13 per ounce – a 2.4% gain for the week so far. Greek government bond holders have been asked by European negotiators to take a 60% 'haircut' on the value of their holdings, according to a report in the Finan...
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| Rick Rule - Gold & Silver Surging as Takeover Mania to Begin Posted: 25 Oct 2011 05:54 AM PDT  With gold up $47 trading above the $1,700 level and silver surging about $1.50 to $33, today King World News interviewed one of the most street smart pros in the resource sector, Rick Rule, Founder of Global Resource Investments, which is now part of the $10 billion strong Sprott Asset Management. When asked what is driving the markets and what he sees going forward, Rule replied, "I understand now that the Europeans have had 22 emergency meetings and the market is impatient for them to do something. You and I both believe that the situation they face in Europe is not resolvable so they have probably already done as much as they can."
This posting includes an audio/video/photo media file: Download Now |
| Ben Davies: Monkey business — reality, illusion, or delusion Posted: 25 Oct 2011 05:43 AM PDT GATA 11:20a CT Tuesday, October 25, 2011 Dear Friend of GATA and Gold: Addressing GATA's Gold Rush 2011 conference in London in August, Hinde Capital CEO Ben Davies, a frequent commentator on business television and King World News, remarked on how inadequate human senses often are — inadequate and even deceptive, insofar as what is only a very incomplete view can be construed as the total of reality. Having journeyed for 12 years through the foggy swamps of the gold and silver markets and central banking, where every single demonstrable fact is hard-won and a prized possession, and so appropriately caged for display here – http://www.gata.org/taxonomy/term/21 – GATA could appreciate Davies' point. Now Hinde Capital has published the text of his address. It's titled "Monkey Business — Reality, Illusion, or Delusion" and you can find it here: http://www.hindecapital.com/docs/hil_reports/Hinde%20Capital%20CEO%20Ben… CHRIS POWELL, Secretary/Treasurer 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:
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| Gold warrior Grandich’s autobiography is now in print Posted: 25 Oct 2011 05:43 AM PDT GATA 11:10a CT Tuesday, October 25, 2011 Dear Friend of GATA and Gold: The autobiography of our friend the market analyst Peter Grandich (http://www.grandich.com/), who has long fought alongside GATA in the trenches of the great gold war even as he has fought a couple other extremely difficult wars of his own, has gone into print and is now available through Amazon.com here: http://www.amazon.com/Confessions-Wall-Street-Whiz-thought-provoking/dp/… CHRIS POWELL, Secretary/Treasurer 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:
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With gold and silver blasting higher, along with the mining shares, as the Dow plunged over 200, today King World News interviewed four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. When asked about the tremendous action in both gold and silver, Hathaway replied, "Get used to it, we are going to see $50 and $100 days both ways. To me we have had our correction, shook out a lot of people and now there is sellers remorse. Now those people are not able to get back in except by paying a higher price, so this is classic bull market action."
Yesterday, the market rose because eurozone leaders had made "first steps" toward a "new plan" to solve the European debt crisis.
"You don't schedule a meeting like this," observed Byron King during a conference call this morning, "without the outcome scripted weeks in advance."
Little happens in Europe these days without an agreement between France and Germany. After World Wars I and II, "Teuton and Gaul would never war again," wrote veteran foreign correspondent Eric Margolis. That's what "European unity" has been all about.
The European leaders' inability to follow the sage advice of Rodney King has yielded the following results…
Earnings news is also dealing a blow to U.S. stocks. Netflix disappointed, but that's no surprise. So did 3M… which did surprise.
State governments in the U.S. are now in hock to the tune of $4.2 trillion, says a new estimate from a group inappropriately called State Budget Solutions.
Federal aid is already drying up for low-income people who get sick. Several states are limiting hospital stays for Medicaid patients.
Pennsylvania's governor has declared a fiscal emergency for our favorite municipal basket case: the state capital, Harrisburg.
The population of poor people in the nation's suburbs grew by half in the last decade, according to census data crunched by the Brookings Institution.
Also, a feature on the frontlines of the fiscal crisis, membership in "gangs," has mushroomed in both suburbs and inner cities by 40% since 2009, according to the FBI's National Gang Threat Assessment. Known gangbangers now number 1.4 million.
One of the Federal Reserve's reliable recession indicators is again flashing red. The Philadelphia Fed State Coincident Index for September clocked in at 34 — it's the fifth straight month below 50, and a sustained drop nearly always signals the onset of an "official" recession.
Last week, we thought the dismantling of an entire steel bridge for scrap would be hard to beat.
"Why, why, why," implores a reader after seeing our item on the government's latest attempt to apply the paddles to the housing market, "would anyone take on a 125% loan on their home, for any reason?"
"Could someone please explain to me," writes a reader continuing our debate over 
"Corruption funded by the big banks," adds another, "is the root cause of today's problems."
"The reason the banks weren't allowed to fail," chimes in one more, "had almost zero to do with them being 'too big.'"
"Addison, you haven't taken any wraps off," writes a reader who we've only managed to confuse by requesting you show your interest in 'Project X' by 
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