Gold World News Flash |
- Gold Miners’ Leverage Effect Is Gone. But For How Long?
- Maximum Profit with Ron Hera (Silver Summit 2011)
- Hands Off Germany's Gold!!!
- Gold Price Keeps Going Higher As U.S. Debt Keeps Increasing ? Got Gold?
- Multi-Billionaire Salinas - Gaddafi Killed Over Gold Currency
- Gold Seeker Closing Report: Gold and Silver Rise With Stocks
- Robin Griffiths - Here is the Reason Gold Spiked $75 in 2 Days
- Restructure my Portfolio: Part IV
- Barclays Explains Why A 50% Greek Haircut "Would Be Considered A Credit Event, Consequently Triggering CDS Contracts"
- Barclays Explains Why A 50% Greek Haircut "Would Be Considered A Credit Event, Consequently Triggering CDS Contracts"
- Great Interview: Richard Daughty & Chris Waltzek on GoldSeek Radio
- Triple Lutz Report Episode 103
- Rumours That EFSF to be Leveraged “Several” Fold / Gold and Silver Rise
- Paper Currency Has Too Much Bull, Not Enough Bullion
- Hugo Salinas Price: Gaddafi Killed Over Gold Currency
- Gold-Buying Shops Opening at Insane Rate
- Nine blows against the gold price suppression scheme
- D-WAVE ABORTED
- Remonetizing silver is well-supported in Mexican Congress, Hugo S-P tells King
- Hands Off Germany's Gold!!!
- The Gold Price Closed Up 1.4% Silver and Gold Will Keep Moving Higher Tomorrow
- Chris Powell: Nine blows against the gold price suppression scheme
- EBA Releases Details Of €106 Billion Bank Capital Shortfall
- Gold Miners' Leverage Effect Is Gone. But For How Long?
- Surprise! Gartman is Bullish on Gold Again
- Gun Ownership Soars To 18 Year High: 47% Of Americans Admit To Owning A Gun
- Occupy Wall Street: A Threat to the Dollar?
- Analyzing the Popular Proposals for Mortgage Principal Writedowns, Part I
- Old And No News Is Good News Apparently?
- Sarkozy Said to Plan Plea to China for EU Fund
| Gold Miners’ Leverage Effect Is Gone. But For How Long? Posted: 26 Oct 2011 06:04 PM PDT In this article, we will have a look at the so called “leverage” effect that mining companies are supposed to have to the underlying metal prices. To explain briefly why mining companies SHOULD have a leverage effect to increasing metal prices, I will illustrate this with a simple example. Suppose you have a mining company X. X is mining gold, which is trading at $300 at the moment. However, the company has to pay its employees, has to pay for exploration of the mines, it takes a lot of money to build the mine, and so on. Assume it costs $500 to mine one ounce of gold. Initially, the company will make a loss of $200 for each ounce of gold mined. However, when the gold price rises to $500, the company will break even. With a gold price of $600, the company will make $100 profit for each ounce of gold mined. Now here is the key: if gold rises now from $600 to $700 (16.66%), the profits will rise from roughly $100 to $200, which is +100%! So even though the pri...
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| Maximum Profit with Ron Hera (Silver Summit 2011) Posted: 26 Oct 2011 06:00 PM PDT Last year, Hera Research picked 4 silver stocks that gained 165% in 18 months. In Maximum Profit, Ron Hera, founder of Hera Research, teaches investors his investment strategy, methodology and investment criteria. Viewers learn how Ron Hera evaluates silver exploration and mining companies and maximizes profits by exploiting transitions between developmental stages. Companies cited include First Majestic Silver, US Gold, Alexco Resource Corp., Fortuna Silver Mines, Revett Minerals, and Global Minerals Ltd. First Majestic Silver is described as a "showcase company" in terms of what to look for in a junior silver producer and Ron Hera refers to Fortuna Silver Mines as, potentially, "the next First Majestic." Maximum Profit with Ron Hera (Silver Summit 2011) from Ron Hera on Vimeo....
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| Posted: 26 Oct 2011 05:59 PM PDT by Adrian Ash BullionVault Wednesday, 26 October 2011 Gold still represents the ultimate form of payment. Why throw it away before the Euro collapses...? "HANDS OFF!" shouts German newspaper Bild today. "Failed states are still going to get our gold," screams the tabloid's headline. Hmmm. "This may not be true," admits the opening sentence of the article itself. "But nevertheless!" So what is getting Germany's version of the New York Post and Britain's The Sun – only with topless models on page 1, not 3 – so excited that it has to admit its own headlines are false in the very next line? "If Germany's exposure to the Euro-crisis rescue plan is expanded, it will be only a matter of time before the gold of the German Federal Bank melts in the debt fire!" reckons Bild columnist Einar Koch. Not so fast, Eurocrats. Ruling coalition party politician (and "Euro rebel") Peter Gauweiler says that "Our gold reserves, only half of which by the way are still stored in Germany, are sacro...
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| Gold Price Keeps Going Higher As U.S. Debt Keeps Increasing ? Got Gold? Posted: 26 Oct 2011 05:14 PM PDT Will our National Debt be trillions higher than today in a few years? If you think the answer is yes, than buying physical gold today is a good idea. It's that simple. Just look at the chart. Words: 140 So says the Administrator of*[url]www.theburningplatform.com[/url]*which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!),*presents below.*Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Who in the world is currently reading this article along with you? Click [COLOR=#0000ff]here to find out.[/COLOR] The above chart shows a very clear correlation between the US Federal debt and the price of gold. If the current trend continues the U.S. debt would reach $23 trillion in 2015 and if the correlation remains the same the indicated gold price would be $2,600 per ounce. *[url]http://www.theburningplatform.com/?p=23455[/url] Related Articles: 1. Price of Gold Will Explode Upward If – and When – We See…. Fo...
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| Multi-Billionaire Salinas - Gaddafi Killed Over Gold Currency Posted: 26 Oct 2011 04:45 PM PDT  With gold and silver moving to the upside, today King World News interviewed multi-billionaire Hugo Salinas Price out of Mexico. KWN wanted to get his thoughts on where he sees gold and silver headed. But first, when asked for an update on his efforts to monetize silver in Mexico, Hugo Salinas Price stated, "By and large all of the Congressman are in favor of monetizing silver in Mexico. The dirty work is how to get around the blocking that is presented by three or four important party leaders who are bought off by the central bank or intimated by the central bank. The are afraid to go against the central banks desires."
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| Gold Seeker Closing Report: Gold and Silver Rise With Stocks Posted: 26 Oct 2011 04:30 PM PDT Gold rose over 1% in Asia before it fell back to $1702.20 in London, but it then rose to a new session high of $1726.50 in New York and ended with a gain of 1.35%. Silver climbed to as high as $33.933 in London and ended with a gain of 0.42%.
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| Robin Griffiths - Here is the Reason Gold Spiked $75 in 2 Days Posted: 26 Oct 2011 04:02 PM PDT  With gold and silver moving to the upside, today King World News interviewed one of the top strategists in the world, Robin Griffiths of Cazenove out of London. Cazenove Capital is the appointed stockbroker to Her Majesty The Queen. When asked about the recent strength in gold Griffiths responded, "The Indians, at the margin, buy more gold jewelry than anyone on the planet. Diwali is the 'festival of lights' and it's today. This is when they buy the jewelry. Then it is followed by the wedding season when the Indians buy even more gold. So frequently this festival makes the seasonal low for gold. The rise in the last 24 hours is Diwali, it's the Indians doing it."
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| Restructure my Portfolio: Part IV Posted: 26 Oct 2011 04:00 PM PDT In this part of our series, we looked at where in the world one invests in a precious metal share and the factors that must be considered. Also, should one invest in a gold fund, holding a spread of gold shares, or in gold shares direct? We look at the two options.
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| Posted: 26 Oct 2011 03:19 PM PDT Barclays, a voting dealer of the ISDA determinations committee, two short days ago made the following statement: "In our view, there is little doubt that a large notional haircut of c. 50-60% would be considered a credit event, consequently triggering CDS contracts." Since the entire Greek bailout now centers around ISDA refuting what one of its members has said on the public record, and effectively making any form of sovereign hedging via CDS null and void, we can't wait to hear just what excuse the International Swaps and Derivatives Association will use to justify the transfer of billions of monetary ones and zeroes equivalents into its electronic pocket in the process making a complete mockery of its mission statement, presented as follows: "ISDA fosters safe and efficient derivatives markets to facilitate effective risk management for all users of derivative products." We expect ISDA to release a statement imminently, as CDS traders will have to know how to treat existing protection before the US CDS market opens around 5:30 am. And since we already know what the release will say, (though we are very curious as to how ISDA will deny what is glaringly obvious), we urge readers to address all their concerns, furious anger and profanities at this grotesque sacrifice of a self-professed responsibility for "effective risk management" at the altar of the almighty dollar, to the following address... 360 Madison Avenue, 16th Floor and even better, here is who is Deputy CEO ISDA Europe: George Handjinicolaou What do you know: a Greek! In the meantime, here is once again a full repost of Barclays validation why a 50% haircut is and always will be a hard credit event. The Dealbreaker: Barclays Sees A 50-60% Haircut As A CDS Trigger Finally someone dares to go ahead and say what is on everyone's mind, namely that proclaiming a 60% "haircut" as voluntary is about the dumbest thing to ever come out of ISDA. As is well known, the ECB and the entire Eurozone are terrified of what may happen should Greek CDS be activated, and "contagion waterfall" ensue. The fear is not so much on what happens with Greece, where daily CDS variation margin has long since been satisfied so the only catalyst from a cash flow market perspective would be a formality. Where it won't be a formality, however, is for the ECB which has been avoiding reality, and which will have to remark its entire array of Greek bonds from par to 40 cents on the dollar, which as Alex Gloy indicated earlier, will render the central bank immediately insolvent all else equal. What it also will impact is treatment of all other banks and pledged collateral valuations which is effectively the only bridge in the chasm between Mark to Unicorn and reality. So here is Barclays with what can be the effective dealbreaker, because if a bank: an entity that owns the credit event determinations committee at ISDA, comes out with a contrarian statement to the conventional "stick your head in the sand" wisdom, then pretty soon everyone else will have to follow sui: "In our view, there is little doubt that a large notional haircut of c. 50-60% would be considered a credit event, consequently triggering CDS contracts." And here is why Wednesday's summit is now guaranteed to be a flop: "We consider that launching a hard restructuring without the adequate backstop could be too risky from a financial stability perspective, and we think the ECB would likely take this view." Since the summit will have to announce a decision on the Greek haircuts to be taken even remotely seriously, and since the ECB simply can not make one at this point, look for major disappointment, whether the summit is Wednesday, Thursday, next month, or next year, simply because the ECB will not be ready to pull the trigger for a long, long time. What happens when a 50% Greek default is declared a "Credit Event"? Here is Barclays' Antonio Garcia Pascual with the explanation: The FT is reporting today that "European negotiators" have asked the Greek government to impose a 60% notional haircut on sovereign bonds. The EU stance was apparently presented over the weekend by Vittorio Grilli (head of the Italian Treasury and lead European negotiator) to the IIF. Press reports over the past two days have also indicated that the IIF has warned against any haircuts above 40% as they would not be voluntary. The FT also reports that the ECB, France and the IMF remain concerned of the likely credit event and the trigger of CDS contracts. German and Greek newspapers argue that investors should brace for losses between 50% and 60% but they do not provide details as to whether this would imply notional haircuts or whether it would be done through drastic reductions of the coupon and/or extension of maturities. Ekathimerini indicates that Greek FM Venizelos had referred to a "radical haircut" that would not threaten the stability of the Greek economy. Also, several Greek and international press reports have reported on a leaked draft debt-sustainability-analysis carried out by the IMF in the context of the 5th programme review. The report appears to indicate that a deeper PSI has a vital role in establishing sustainability of Greek debt. In order to reduce the debt below 110% of GDP by 2020, the report indicates that it would require a face value reduction of at least 60% of Greek debt and/or more concessional official sector financing terms. Our views on a "hard" restructuring In our view, there is little doubt that a large notional haircut of c. 50-60% would be considered a credit event, consequently triggering CDS contracts. However, this would imply that the ECB would have given up its "resistance to a hard restructuring". In our view, that resistance has been motivated by concerns on the potential impact of CDS-triggers across the European financial institutions (FIs) and, more broadly, on concerns on financial stability, in particular on the potential trigger of a bank run in Greek institutions and the scope for contagion to other EMU countries. A hard restructuring would have its largest impact on Greek FIs, which hold more than EUR80bn of Greek debt, of which c.EUR45-50bn is held by banks (including bonds and T-bills). We have argued in several research reports that the ECB could accept a hard restructuring (eg, 50-60% haircut) only after adequate safety-nets are in place. Specifically:
We consider that launching a hard restructuring without the adequate backstop could be too risky from a financial stability perspective, and we think the ECB would likely take this view. Therefore, we would see scope for a possible delay in the announcement of a hard restructuring (ie, a specific size of the haircut) unless there is a substantive announcement on all the other fronts mentioned above. Other likely implications of a hard restructuring, include:
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| Posted: 26 Oct 2011 03:19 PM PDT
Barclays, a voting dealer of the ISDA determinations committee, two short days ago made the following statement: "In our view, there is little doubt that a large notional haircut of c. 50-60% would be considered a credit event, consequently triggering CDS contracts." Since the entire Greek bailout now centers around ISDA refuting what one of its members has said on the public record, and effectively making any form of sovereign hedging via CDS null and void, we can't wait to hear just what excuse the International Swaps and Derivatives Association will use to justify the transfer of billions of monetary ones and zeroes equivalents into its electronic pocket in the process making a complete mockery of its mission statement, presented as follows: "ISDA fosters safe and efficient derivatives markets to facilitate effective risk management for all users of derivative products." We expect ISDA to release a statement imminently, as CDS traders will have to know how to treat existing protection before the US CDS market opens around 5:30 am. And since we already know what the release will say, (though we are very curious as to how ISDA will deny what is glaringly obvious), we urge readers to address all their concerns, furious anger and profanities at this grotesque sacrifice of a self-professed responsibility for "effective risk management" at the altar of the almighty dollar, to the following address... 360 Madison Avenue, 16th Floor and even better, here is who is Deputy CEO ISDA Europe: George Handjinicolaou What do you know: a Greek! In the meantime, here is once again a full repost of Barclays validation why a 50% haircut is and always will be a hard credit event. The Dealbreaker: Barclays Sees A 50-60% Haircut As A CDS Trigger Finally someone dares to go ahead and say what is on everyone's mind, namely that proclaiming a 60% "haircut" as voluntary is about the dumbest thing to ever come out of ISDA. As is well known, the ECB and the entire Eurozone are terrified of what may happen should Greek CDS be activated, and "contagion waterfall" ensue. The fear is not so much on what happens with Greece, where daily CDS variation margin has long since been satisfied so the only catalyst from a cash flow market perspective would be a formality. Where it won't be a formality, however, is for the ECB which has been avoiding reality, and which will have to remark its entire array of Greek bonds from par to 40 cents on the dollar, which as Alex Gloy indicated earlier, will render the central bank immediately insolvent all else equal. What it also will impact is treatment of all other banks and pledged collateral valuations which is effectively the only bridge in the chasm between Mark to Unicorn and reality. So here is Barclays with what can be the effective dealbreaker, because if a bank: an entity that owns the credit event determinations committee at ISDA, comes out with a contrarian statement to the conventional "stick your head in the sand" wisdom, then pretty soon everyone else will have to follow sui: "In our view, there is little doubt that a large notional haircut of c. 50-60% would be considered a credit event, consequently triggering CDS contracts." And here is why Wednesday's summit is now guaranteed to be a flop: "We consider that launching a hard restructuring without the adequate backstop could be too risky from a financial stability perspective, and we think the ECB would likely take this view." Since the summit will have to announce a decision on the Greek haircuts to be taken even remotely seriously, and since the ECB simply can not make one at this point, look for major disappointment, whether the summit is Wednesday, Thursday, next month, or next year, simply because the ECB will not be ready to pull the trigger for a long, long time. What happens when a 50% Greek default is declared a "Credit Event"? Here is Barclays' Antonio Garcia Pascual with the explanation: The FT is reporting today that "European negotiators" have asked the Greek government to impose a 60% notional haircut on sovereign bonds. The EU stance was apparently presented over the weekend by Vittorio Grilli (head of the Italian Treasury and lead European negotiator) to the IIF. Press reports over the past two days have also indicated that the IIF has warned against any haircuts above 40% as they would not be voluntary. The FT also reports that the ECB, France and the IMF remain concerned of the likely credit event and the trigger of CDS contracts. German and Greek newspapers argue that investors should brace for losses between 50% and 60% but they do not provide details as to whether this would imply notional haircuts or whether it would be done through drastic reductions of the coupon and/or extension of maturities. Ekathimerini indicates that Greek FM Venizelos had referred to a "radical haircut" that would not threaten the stability of the Greek economy. Also, several Greek and international press reports have reported on a leaked draft debt-sustainability-analysis carried out by the IMF in the context of the 5th programme review. The report appears to indicate that a deeper PSI has a vital role in establishing sustainability of Greek debt. In order to reduce the debt below 110% of GDP by 2020, the report indicates that it would require a face value reduction of at least 60% of Greek debt and/or more concessional official sector financing terms. Our views on a "hard" restructuring In our view, there is little doubt that a large notional haircut of c. 50-60% would be considered a credit event, consequently triggering CDS contracts. However, this would imply that the ECB would have given up its "resistance to a hard restructuring". In our view, that resistance has been motivated by concerns on the potential impact of CDS-triggers across the European financial institutions (FIs) and, more broadly, on concerns on financial stability, in particular on the potential trigger of a bank run in Greek institutions and the scope for contagion to other EMU countries. A hard restructuring would have its largest impact on Greek FIs, which hold more than EUR80bn of Greek debt, of which c.EUR45-50bn is held by banks (including bonds and T-bills). We have argued in several research reports that the ECB could accept a hard restructuring (eg, 50-60% haircut) only after adequate safety-nets are in place. Specifically:
We consider that launching a hard restructuring without the adequate backstop could be too risky from a financial stability perspective, and we think the ECB would likely take this view. Therefore, we would see scope for a possible delay in the announcement of a hard restructuring (ie, a specific size of the haircut) unless there is a substantive announcement on all the other fronts mentioned above. Other likely implications of a hard restructuring, include:
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| Great Interview: Richard Daughty & Chris Waltzek on GoldSeek Radio Posted: 26 Oct 2011 01:29 PM PDT [Ed. Note: This was easily the best 13 minutes of my day...]
Chris Waltzek of GoldSeek Radio talks to Richard Daughty. Click Here to Listen to the Interview
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| Triple Lutz Report Episode 103 Posted: 26 Oct 2011 01:25 PM PDT from The Financial Survival Network: Is there manipulation in the precious metals market and should you care even if there is. We talk about the fractional reserve system that allows the big players to leverage their precious metals holdings at 400 to 1. Long term manipulation is extremely rare, but it theoretically possible. However, if the "Paper Boys" are manipulating the market, they aren't doing too good a job. Gold has been up for 12 years running and silver 11 out of 12. But perhaps the total price control is not the goal, but rather a means to an end, keeping the rise in check and thereby maintaining confidence in the system. In the final analysis, if gold and silver are being held down, then that's to your advantage because you get to buy them at a discount. So what are you waiting for? Click Here to Listen to the Interview
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| Rumours That EFSF to be Leveraged “Several” Fold / Gold and Silver Rise Posted: 26 Oct 2011 01:04 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: We are in the rumour mill stage with respect to Europe. Today we heard that Europe is now planning on a leveraged EFSF that will bail out the banks and supply enough Euros to firewall Italy and Spain. The problem is that this will lead to a huge hyperinflation and increase the risk of systemic failures throughout the globe. I will present you articles on this front in the body of my commentary but first let us head over to the comex. The price of gold rose today to $1722.00 up a cool $23.10. Silver did not perform well at all today as the bankers kept it at bay. It rose by only 26 cents to $33.29. The gold/silver shares were also heavily shorted. Read More @ HarveyOrgan.Blogspot.com
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| Paper Currency Has Too Much Bull, Not Enough Bullion Posted: 26 Oct 2011 12:09 PM PDT by Neil Reynolds, TheGlobeAndMail.com:
Read More @ TheGlobeAndMail.com
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| Hugo Salinas Price: Gaddafi Killed Over Gold Currency Posted: 26 Oct 2011 12:04 PM PDT from King World News:
Hugo Salinas Price continues: Read More @ KingWorldNews.com
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| Gold-Buying Shops Opening at Insane Rate Posted: 26 Oct 2011 12:00 PM PDT by Mike Tirone, WealthWire.com: Who said you need to be a college graduate to actually make it these days? Whoever it was hasn't met Scott Garber. The 30-year-old University of Chicago Booth School of Business dropout is making a killing in the gold market. Garber is president of one of the most successful gold-buying companies in the country and between himself and three partners, they have been opening stores at the rate of more than one a week. And this has been going on for three years now! It's astronomical how high gold prices are rising these days and how desperate our recession-beaten country is to trade in any gold artifacts or jewelry for cash. And Garber is reaping the benefits.
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| Nine blows against the gold price suppression scheme Posted: 26 Oct 2011 11:50 AM PDT Remarks by Chris Powell Secretary/Treasurer, Gold Anti-Trust Action Committee Inc. New Orleans Investment Conference Hilton Riverside Hotel, New Orleans Wednesday, October 26, 2011
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| Posted: 26 Oct 2011 11:24 AM PDT In my last post I hypothesized that the bear market in stocks had finally sunk its teeth into the precious metals sector. I was looking for a final move down into a true D-wave bottom, coupled with the HUI dropping down to test the 200 week moving average. I could not have been more wrong! Instead gold formed a double bottom at $1600 and yesterday confirmed a trend change to a pattern of higher highs and higher lows.  As is usually the case the miners played follow the leader and reversed their downtrend also.  It is now clear that gold put in an intermediate degree bottom on September 26. The double bottom is a much stronger basing pattern then a V-shaped rebound and should launch a test of the $2000 level at some point during this intermediate cycle.       
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| Remonetizing silver is well-supported in Mexican Congress, Hugo S-P tells King Posted: 26 Oct 2011 11:20 AM PDT 6:15p CT Wednesday, October 26, 2011 Dear Friend of GATA and Gold (and Silver): Industrialist Hugo Salinas Price, president of the Mexican Civic Association for Silver, tells King World News today that there is extensive support in the Mexican Congress for remonetizing silver but that several congressional leaders doing the bidding of the Mexican central bank are blocking the legislation. Salinas Price also suspects that the regime of the Libyan dictator Moammar Gadhafi was overthrown by Western powers because he was contemplating an African currency. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/27_M... Meanwhile Robin Griffiths of Cazenove Capital tells King World News that Indian holiday buying is pushing up gold but that the euro nations aren't deploying enough capital to solve their sovereign debt problem, thus supporting gold as well. An excerpt from that interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/27_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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| Hands Off Germany's Gold!!! Posted: 26 Oct 2011 10:20 AM PDT | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Gold Price Closed Up 1.4% Silver and Gold Will Keep Moving Higher Tomorrow Posted: 26 Oct 2011 10:19 AM PDT Gold Price Close Today : 1722.70 Change : 23.10 or 1.4% Silver Price Close Today : 33.291 Change : 0.257 cents or 0.8% Gold Silver Ratio Today : 51.75 Change : 0.297 or 0.6% Silver Gold Ratio Today : 0.01932 Change : -0.000111 or -0.6% Platinum Price Close Today : 1591.70 Change : 25.70 or 1.6% Palladium Price Close Today : 646.15 Change : 4.60 or 0.7% S&P 500 : 1,242.00 Change : 12.95 or 1.1% Dow In GOLD$ : $142.42 Change : $ 0.05 or 0.0% Dow in GOLD oz : 6.890 Change : 0.003 or 0.0% Dow in SILVER oz : 356.52 Change : 2.14 or 0.6% Dow Industrial : 11,869.04 Change : 162.42 or 1.4% US Dollar Index : 76.23 Change : 0.109 or 0.1% Building on yesterday's 2.9% gain the GOLD PRICE added another 1.4% ($23.10) today to close $1,722.70 on Comex, nestled right beneath that $1,725 resistance. Perched above the GOLD PRICE at $1,741.49 is the 50 day moving average, which will slow it down. However, today's close definitely breaks gold out above the upward sloping trading channel boundary in force since end-September. As strong as GOLD looks, it will probably run higher than $1,750 before the rocket fuel runs out -- maybe $1,775. Once again, if gold does close above $1,800 for two days, then it has already left the starting gate for the next race up. The SILVER PRICE knocked and pounded at 3400c today, even reached 3393, but couldn't break down the door. Daily chart has sketched a long, narrow triangle. Generally the further out into the triangle's nose a market trades, the less spectacular the eventual breakout. However, SILVER has been so strong -- rising 303.1c since 20 October -- that breaking through 3400c might sling it a long way. How far? The 50 DMA (3643c) and the 200 DMA (3625) are about to cross, so I expect right there above 3600c silver will land in mud and alligators up to its hips. SILVER and GOLD will keep on moving higher tomorrow. I glanced at the Dow In Gold Dollars (DiG$) chart to check stocks' progress against gold. Short answer is, ain't none. Rallied off that August low about G$119 (5.757 oz) as high as G$151 (7.283 oz) two days ago. Why is that no progress? Well, it's correcting a fall from G$165 - $160 level, and yesterday it gapped down, and followed through downside today. Plain message? Stocks are headed DOWN against gold. Today $142,42 (6.89 oz). Dow in Silver Ounces chart differs substantially, as it rose all the way from its August lows to its July highs -- in other words, retraced the entire fall. No surprise there, since volatile silver loses much more ground in a downward move than gold does. Closed today at 356.32 ounces to buy the Dow. Looks like the Dow has near about run out of gas. Next big move will point toward the earth's core. Sell stocks for gold. Sell stocks for gold. Sell stocks for gold. Don't want to do that? Sell stocks for silver. Dow resistance at 11,900 remained undefeated today, but support at 11,700 held up, too. This tells us little, and could mark the beginning of a downtrend if a higher closed dows not violate the last two day's double top. For most of the past three days the US dollar index has traded between 76 and 76.5, and more narrowly between 76 and 76.20. Half way thru today's 24 hours somebody knocked it down in a spike to 76.88, then it popped straight up to 76.66 and settled above 76.20 at 76.231, up 10.9 basis points (0.14%). No change, except that blip up today makes it appear those last 2-1/2 days were a bottom, and the dollar's about to move higher. Euro's five day chart looks like a plateau that it fell off of today. At today's close it stood at 1.3903, up mightily from 1.3902 yesterday. Trading was more volatile, but no big warning of change appeared. Eurocrats have as yet no "solution" to their bank solvency crisis. Don't expect one, either. The Nice Government Men from the Bank of Japan have a problem on their hands. Yen backed off a smidge today, 0,.25% to 131.14 (Y76.25), but it has broken out to the upside. Needs to fall back below 130.50 (76.62) to disprove that breakout. 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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| Chris Powell: Nine blows against the gold price suppression scheme Posted: 26 Oct 2011 10:15 AM PDT Remarks by Chris Powell As some of you may know, the premise of my organization, the Gold Anti-Trust Action Committee, is that Western central banks, and particularly the U.S. Treasury Department and Federal Reserve, have been manipulating the gold market for many years through several mechanisms -- outright sales of gold, leasing of gold, and underwriting the issuance of gold derivatives, essentially backstopping the short positions in gold that have been taken by their agents, the big investment houses that also work as bullion banks. GATA has documented this extensively at our Internet site, GATA.org. We are not a "conspiracy theory" organization. Rather, we compile and publicize public records confirming or tending to confirm the manipulation of the gold market. Why is the gold market manipulated by Western central banks? It's because gold is a weapon more powerful than nuclear weapons -- an alternative currency that is not necessarily under any government's power, a determinant of the value of other currencies, interest rates, government bonds, and equities. Having been raising questions about the gold market for 12 years now, I've realized that the disposition of government gold reserves is a secret more sensitive than the disposition of nuclear weapons. Indeed, under nuclear weapons control treaties, governments with nuclear weapons have sometimes shared that sort of information, even with hostile powers. But gold reserve information is far more tightly held, and most gold information provided officially is actually disinformation. For the purposes of investors it is enough to know that we will never be permitted to know exactly where official-sector gold is and who really controls it. It may be all we can do to know where our own gold is and to make sure that we control it ourselves. ... Dispatch continues below ... ADVERTISEMENT The United States Once Again Can Establish a Stable Dollar Worth Its Weight in Gold Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, has released a plan to restore economic growth through a stable dollar. The plan, titled "The True Gold Standard: A Monetary Reform Plan Without Official Reserve Currencies," responds to the recurrent economic crises of the last century and outlines a detailed proposal for America's leadership on "how we get from here to there." That is, how we get from the present unstable paper dollar to a stable dollar as good as gold. James Grant, author and editor of Grant's Interest Rate Observer, says of the Lehrman plan: "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman the country has finally found him." To learn more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata It's not just me saying that gold is supremely powerful in the world financial system. Lawrence Summers, former U.S. treasury secretary and off-and-on economics professor at Harvard, said pretty much the same thing in the study he wrote with University of Michigan economics professor Robert Barsky in the Journal of Political Economy in 1988, a study titled "Gibson's Paradox and the Gold Standard." This study is posted at GATA's Internet site: http://www.gata.org/files/gibson.pdf A few weeks ago, maintaining that his "Gibson's Paradox" study remains dispositive of the gold price issue, Summers provided the study to New York Times columnist Paul Krugman -- and did so by giving Krugman the link to it at GATA's Internet site. That's what Krugman wrote on his blog. So we know that former Secretary Summers is watching little GATA even today: http://www.gata.org/node/10402 This close correlation among gold, interest rates, and government bond values is why central banks long have tried to control -- usually suppress -- the price of gold. For gold is the ticket out of the central banking system, the escape from coercive central bank and government power. As an independent currency, a currency to which investors can resort when they are dissatisfied with government currencies, gold carries the enormous power to discipline governments, to call them to account for their inflation of the money supply and to warn the world against it. Because gold is the vehicle of escape from the central banking system, the manipulation of the gold market is the manipulation that makes possible all other market manipulation by government. The gold market manipulation operates through the largely surreptitious mobilization of Western central bank gold reserves and the gold nominally held by the major exchange-traded funds. If the manipulation was done completely in the open, as governments used to manipulate the gold market, through the gold standard and then through what was called the London Gold Pool, the Western central bank gold dishoarding scheme of the 1960s, the manipulation would fail, because then the world would understand that there is not a free market in gold -- or in any currency, any more than there is a free market in government bonds. Much has happened in GATA's campaign to expose the gold price manipulation scheme since we met here in New Orleans a year ago. I'd like to review nine important developments for you. 1) GATA beat the Federal Reserve in federal court. First and most important, GATA won its federal freedom-of-information lawsuit against the Federal Reserve in U.S. District Court for the District of Columbia. For several years GATA had been trying to get the U.S. Treasury Department and Federal Reserve to release gold information. The Fed first denied this information to us on the grounds that it would compromise certain private "proprietary" interests. Of course such a denial, a denial based on "proprietary" interests, was in itself a confirmation that the U.S. gold reserve had been placed, at least partly, in other hands. Responding to President Obama's declaration, soon after his inauguration, that the federal government would be more open, GATA renewed its informational requests to the Fed and the Treasury. These requests concentrated on gold swaps, a primary mechanism of gold price suppression. Gold swaps are trades of gold that allow one central bank to intervene in the gold market on behalf of another central bank without getting the latter central bank's fingerprints directly on the transaction. Of course both of GATA's informational requests were denied again. But through our Washington lawyer, William J. Olson (http://www.lawandfreedom.com), GATA brought an appeal of the Fed's denial, and this appeal was routed to a full member of the Fed's Board of Governors, Kevin M. Warsh. Warsh denied GATA's appeal but in his letter to our lawyer he let slip some stunning information: http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf Warsh wrote that among the gold information being kept secret by the Fed was "information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System." So there it is: The Federal Reserve today -- right now -- has gold swap arrangements with "foreign banks," and the public and the markets must not be permitted to know about them. Ten years ago Fed Chairman Alan Greenspan and the general counsel of the Federal Open Market Committee, Virgil Mattingly, vigorously denied to GATA, through two U.S. senators who had inquired of the Fed on our behalf, that the Fed had gold swap arrangements, even though FOMC minutes from 1995 quote Mattingly as saying the U.S. indeed has engaged in gold swaps: But now the Fed has admitted such arrangements, if only inadvertently. As GATA was not willing to let Fed Governor Warsh's letter be the last word on access to the Fed's gold records, on December 31, 2009, we sued the Fed in U.S. District Court for the District of Columbia under the Freedom of Information Act. The Fed told the court that the Fed really could not find many records involving gold. Implausible as this was, the judge, Ellen Segal Huvelle, denied GATA's request to interrogate Fed officials under oath about what seemed to us to be their grossly inadequate search. Whereupon the judge reviewed, privately in her chambers, the few documents the Fed had submitted, and on February 3 this year she ruled that the Fed indeed could keep secret all but one of those documents. She ordered the Fed to disclose that one document to GATA within two weeks. On February 18 this year, heeding the court's order, the Fed released the document -- the minutes of the April 1997 meeting of the G-10 Gold and Foreign Exchange Committee. The minutes showed government and central bank officials from around the world conspiring in secret to coordinate their gold market policies. The minutes of that meeting are posted at GATA's Internet site: Perhaps of equal importance, the Fed claimed not to be able to find minutes of any other meeting of the G-10 Gold and Foreign Exchange Committee. The Fed is probably hiding such minutes because they are even more incriminating. Thus GATA's lawsuit established that, despite its denials, the Fed has many gold secrets after all, many gold documents the Fed won't let the public see. Our lawsuit also managed to pry a couple of those secrets loose and publicize them -- first, that the Fed has gold swap arrangements with foreign banks, and second, that at a secret meeting in 1997 the Fed was conspiring with other central banks to coordinate their gold market policies and that there was never any announcement of this undertaking. Almost as gratifying to us was that, since the court found that the Fed illegally withheld from us the minutes of the secret G-10 Gold and Foreign Exchange Committee meeting, the Fed was ordered to pay court costs to GATA, which the Fed did in May, sending us a check for $2,870. An image of that check also is posted at GATA's Internet site: 2) The cables from the U.S. embassy in Beijing. Two months ago it was disclosed that the government of China knows all about the gold price manipulation scheme and that the United States government knows that China knows. This disclosure occurred through the release by the Wikileaks organization of three diplomatic cables sent from the U.S. embassy in Beijing to the State Department in Washington. One U.S. Beijing embassy cable, dated April 28, 2009, summarizes a commentary in the Chinese newspaper Shijie Xinwenbao (World News Journal), a newspaper published by the Chinese government's foreign radio service, China Radio International. The cable has been posted at GATA's Internet site: http://www.gata.org/node/10380 The cable translates the Chinese government newspaper's commentary as follows: "The United States and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency." Another gold-related cable sent from the U.S. embassy in Beijing, dated December 4, 2008, quotes commentary published the previous day in the official Chinese Communist Party newspaper, People's Daily, as saying the United States and Europe are likely to restore a gold standard while they have most of the world's official gold reserves, before Eastern nations can get enough gold to back their own currencies with. The third cable from the U.S. embassy in Beijing, dated February 8, 2010, quotes commentary published that day in the China Business News newspaper in Shanghai saying China suspects that there will be a devaluation of old U.S. dollars, the kind of dollars it holds in its foreign exchange reserves, when it comes time to convert them to new U.S. dollars backed by gold. The second and third cables have been posted at GATA's Internet site here: http://www.gata.org/node/10416 China is probably acting on its knowledge of the Western gold price suppression scheme. 3) The class-action lawsuit against silver price manipulation. Late last year several class-action lawsuits were brought against JPMorganChase charging manipulation of the silver market. The lawsuits were based largely on the testimony of London silver trader Andrew Maguire, whose complaint of market manipulation was presented by GATA to the U.S. Commodity Futures Trading Commission at a hearing on March 25, 2010. Last month the complaints in the lawsuits were consolidated in a single statement filed with U.S. District Court for the Southern District of New York, and this consolidated complaint detailed the mechanics of the manipulation and even identified traders who carried it out and their specific trades. According to the consolidated complaint: -- MorganChase already had a large short position in silver when it acquired another large short position upon the investment house's acquisition of the failed New York brokerage Bear Stearns in 2008. This, the complaint says, gave MorganChase hugely disproportionate influence in the silver market. -- The lawsuit says MorganChase used "fake" and "spoof" trades to manipulate prices downward, particularly in advance of contract expiration dates, when MorganChase held put options, which became more valuable as the price of silver was driven down. -- The lawsuit says MorganChase reduced its short position following the May 25, 2010, hearing of the CFTC, in which GATA's complaints of gold and silver market manipulation figured heavily. -- And the lawsuit says MorganChase regularly engaged in uneconomic trading activity in silver whose only purpose was price manipulation. The consolidated complaint in the silver manipulation lawsuit against MorganChase is posted at GATA's Internet site: http://www.gata.org/node/10448 If the silver lawsuit against MorganChase survives a summary judgment motion, it may be worth hundreds of millions of dollars to the plaintiffs and their lawyers. It may also liberate the silver market from the domination of one big player that is an agent of the U.S. government. 4) Confirmation that central bank gold sales equaled leased gold. In his German-language book "Secret Gold Policy," published in the last year, market analyst Dimitri Speck reported that gold sold by Western central banks since 2001 was equaled by the leased gold returned to them: This strongly supports suspicions long expressed by GATA that the supposed central bank gold sales of the last decade were not sales at all, just cash settlements for leased gold that could not be recovered by the central banks without exploding the gold price upward and bankrupting the investment banks that had leased the gold. That is, the supposed "sales" did not really put any real metal into the market, a suspicion supported by the steady rise of the gold price even as all that central bank gold supposedly was being sold. 5) The German central bank admitted secret gold activities. Late last year the German journalist Lars Schall pressed the German central bank, the Bundesbank, for clarification about the German gold reserves, and particularly about whether the Bundesbank had undertaken gold swaps with the United States. Schall sent the Bundesbank 13 questions. But the Bundesbank brushed him off, even as the Bundesbank seemed to acknowledge meddling surreptitiously in the gold market: The Bundesbank replied to Schall as follows: "... Particularly with respect to the confidential nature of information about where gold holdings are kept, we are unable to go into any greater detail concerning exact locations and the quantities stored at each of these. Likewise, owing to the strategic nature of the activity, we are not at liberty to provide you with more detailed information about gold transactions." That is, Germany's gold is a crucial part of gold market manipulation, the subject of secret "strategic" transactions, most likely with the United States. 6) A gold price manipulation scheme public relations blunder. Exchange-traded gold funds are very popular. Yet the bullion bank HSBC is not just custodian for the gold of investors in the main gold ETF, whose trading symbol is GLD, investors who want their asset to appreciate in value; HSBC is also the biggest known short in the gold market. This is a grotesque conflict of interest. Two months ago HSBC responded to concerns about its custodianship of GLD's gold, but in doing so the bank committed a revealing public relations blunder. HSBC invited CNBC reporter Bob Pisani for a tour of HSBC's gold vault in the London area. Pisani and his camera operator were placed in a van whose windows had been covered up and then they were driven around for a while and blindfolded and led into the vault. The blindfolds were removed and they saw a lot of gold bars, and Pisani was given one to hold up for the camera and represent as a bar belonging to GLD. But some sharp-eyed gold bugs recorded Pisani's report, transcribed the hallmark and serial number of the bar Pisani held up, and determined that it actually belonged not to GLD at all but to another gold ETF: http://www.gata.org/node/10368 http://www.gata.org/node/10372 http://www.gata.org/node/10427 Of course that didn't prove any impropriety on HSBC's part -- only that it's very easy for the world's biggest gold short to merge the gold it is vaulting for customers of its fractional-reserve gold banking system and to apply the gold to the most pressing gold demand of the day -- which, on that particular day, was to fool a television reporter and his audience. 7) Mexico bought gold paper instead of gold itself. In May this year Mexico's central bank announced that it recently had purchased 93 tonnes of gold, bringing its gold reserves to 100 tonnes. But last month the Mexican journalist Guillermo Barba interrogated the Bank of Mexico about that gold purchase and found that the bank refuses to disclose where it is keeping those 93 tonnes and indeed does not even know the form of the gold it purchased. Barba's report can be found on GATA's Internet site: http://www.gata.org/node/10481 As it turned out, in purchasing gold this year the Bank of Mexico didn't really buy gold at all. Rather, the Bank of Mexico became only an unsecured creditor of banks that are members of the London Bullion Market Association, home of the fractional-reserve gold banking system. 8) This month GATA gained much mainstream media recognition. First, a popular program on the History Channel, "Brad Meltzer's 'Decoded,'" interviewed me in an episode about concerns that the U.S. gold reserve at Fort Knox, Kentucky, is impaired or even empty: http://www.gata.org/node/10535 And last Saturday the Financial Times, the most establishment of the world 's financial newspapers, published a column by its U.S. managing editor, Gillian Tett, dealing largely with GATA's claims of gold market manipulation: http://www.gata.org/node/10591 Tett wrote: "It would be foolish simply to deride or ignore GATA. … Some of its points have at least a grain of truth. Even if you find it hard to believe that central bankers would be dastardly enough to create a plot -- or competent enough to do what GATA claims -- the fact is that global commodity markets are pretty murky, central banks are often opaque, and Western rhetoric about 'free' markets is often hypocritical. Those issues merit far more debate, not just among journalists but central bankers too." The foremost commodity market newsletter writer in the world, Dennis Gartman, pronounced himself "stunned" by the legitimacy the Financial Times had just conferred on GATA: http://www.gata.org/node/10610 That made two of us. 9) The common disparagement about gold soon may be self-defeating. Gold is being disparaged in a particular way. You may have heard it. It is said that even with its steady rise in price over the last decade, gold has not come close to keeping pace with inflation --
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| EBA Releases Details Of €106 Billion Bank Capital Shortfall Posted: 26 Oct 2011 10:15 AM PDT
Here are the EBA's latest stress test results, or, more specifically, the worthless exercise of how much capital European banks need to get to both 9% Tier 1 as well as to build a "temporary capital buffer against sovereign debt exposures to reflect current market prices." Let's not forget that in the last two stress tests, the EBA found something like a grand total of €5 billion in capital deficiency. This time, the joke is again on the EURUSD traders, as the number for Tier 1 at 9% satisfaction is €106 billion, below the €200 billion projected by the IMF, the €400 billion projected by Credit Suisse, and €1 trillion calculated by Goldman Sachs. Granted the number excludes a further €40.6 billion in sovereign capital buffer, so altogether the number is about €147 billion. Furthermore, if you live in Ireland, you are in luck: none of your nationalized, insolvent banks need additional capital. Neither do banks in Hungary, which is about to be downgraded by the rating agencies, Finland or the Netherlands. Stunningly, Dexia which 5 months ago, sailed through the EBA's farce of a test with flying colors now needs a whopping... €4.1 billion. This is a bank which a few weeks ago had around €47 billion in collateral calls. As for banks that need the most capital to reach their targeted capital buffer of 9% Tier 1, Greece needs €30 billion, Spain needs €26 billion, and Italy needs €14.8 billion. Oh yes, France, which contrary to previous media reports of needing to liquidate hundreds of billions, apparently somehow only needs €8.8 billion. Here is our napkin math: take whatever the EBA estimates, and multiply it by 10. You will then be only 25% less than what the final capital shortfall is. Unfortunately for the EBA, the number of idiots who will fall for this "third time is the charm" farce can be counted on one finger (at best). Here is the full, horrendously misnamed report from the EBA (source) The EBA details the EU measures to restore confidence in the banking sector The European Banking Authority (EBA) supports the agreement at EU level on measures to restore confidence in the banking sector. These measures form part of a broader package aimed at addressing the current situation in the EU by restoring stability and confidence in the markets. Their implementation is conditional on the other components of the package being fully clarified and endorsed. The EBA's contribution to the overall package focuses on the capital and term funding needs in the EU banking sector against the backdrop of the increasing concerns regarding sovereign debt. Term funding guarantee scheme Notwithstanding the European Central Bank's (ECB) support for banks short term funding needs, additional steps are required to restart the term unsecured funding market. This would help banks to continue their lending activities in 2012 and to avoid a spiral of forced deleveraging and the ensuing credit crunches, which would affect the real economy. To this end, public guarantee schemes should be set in place where appropriate to support banks' access to term funding at reasonable conditions. A coordinated approach at EU level is needed, especially in terms of entry criteria, pricing and conditions. The EBA has been asked to work with the EU Commission, the ECB and European Investment Bank (EIB) to urgently explore options for achieving this objective. Measures to strengthen banks' capital positions In light of the substantial increase in systemic risk triggered by the sovereign debt crisis in the euro area, the EBA has designed a capital package which, while recognising the significant steps already taken to strengthen capital positions in the EU, aims at providing a further capital buffer for the EU banking system. Banks are required to strengthen their capital positions by building up a temporary capital buffer against sovereign debt exposures to reflect current market prices. In addition, banks are required to establish a buffer such that the Core Tier 1 capital ratio reaches 9%. Banks will be expected to build these buffers by the end of June 2012. The building of these buffers will allow banks to withstand a range of shocks while still being able to maintain an adequate capital level. A preliminary and indicative aggregated capital target at the EU level, based on June's figures and end-September sovereign bond yields, amounts to 106 bn Euros (see breakdown by country below). The EBA expects to disclose the final capital shortfall in the course of November, based on banks' figures as at 30 September 2011 when individual banks will be asked to disclose their capital and sovereign debt position. Banks will be required, by the end of 2011, to submit to their respective national authorities their plans detailing the actions they intend to take to reach the set target. These plans will have to be agreed with National Supervisory Authorities and discussed with the EBA. The targets will have to be achieved avoiding excessive deleveraging, so as to contain the potential impact on the real economy. To reach the targets, banks will be expected to withhold dividends and bonuses. The capital needs will be met only with capital of the highest quality. For private instruments, only new issuances of very strong convertible capital will be accepted if in line with strict and standardised criteria to be defined by the EBA. Breakdown by country of estimated capital target buffers
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Sir Mervyn King, governor of the Bank of England, ordered up another $300-billion (U.S.) in easy money earlier this month, then mentioned, by way of explanation, that we are living through the most serious financial crisis since the Great Depression – "if not," he said ominously, "ever." Sir Mervyn's warning was only marginally more sobering than the collective warnings of Prime Minister Stephen Harper, Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney. This is not to mock. These men know enough not to scare people out of their wits unless it necessary to do so. So the question is, what do these people know that the rest of us don't?
With gold and silver moving to the upside, today King World News interviewed multi-billionaire Hugo Salinas Price out of Mexico. KWN wanted to get his thoughts on where he sees gold and silver headed. But first, when asked for an update on his efforts to monetize silver in Mexico, Hugo Salinas Price stated, "By and large all of the Congressman are in favor of monetizing silver in Mexico. The dirty work is how to get around the blocking that is presented by three or four important party leaders who are bought off by the central bank or intimated by the central bank. The are afraid to go against the central banks desires." 
Oct 24 – Independent investor Dennis Gartman says he is prepared to buy back the gold he sold when he cut his holdings in half last week, adding prices would certainly move upward.
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