Gold World News Flash |
- James Turk reviews Jim Rickards' 'Currency Wars'
- So How Do These Sorts of Crises End?
- Kevin Michael Grace: Auguries -- What's behind door No. 3?
- Gold is Shining Again
- James Dines - Government’s Theft Forcing Violent End
- According to the Bible, What is Money?
- Gold Seeker Closing Report: Gold Rises to a One Month High While Silver Surges Almost 6%
- Harvey Organ's: Daily Gold & Silver Report
- A Golden Mistake Worth Repeating
- Europe Tries To Kick The Can Down The Road But It Will Only Lead To Financial Disaster
- Retail Trader Positioning 28th October – EURUSD on fire
- James Dines: Government’s Theft Forcing Violent End
- Report on Timmins Gold
- We Are Saved Again By More Paper Injection / Gold and Silver Rebound to Score Higher Levels
- The Gold Price Rose $134.80 (8.3%) Over Five Straight Days, How High Will It Go?
- The Walking Debt
- The US Dollar Gets Annihilated
- “Currency Wars”
- Are You One of the 99% Still Undecided About Owning Gold or Silver? Here?s What You Need to Know
- Jeff Nielson: 'D-Day' near for GLD
- Dan Norcini: The US Dollar gets Annihilated
- Ross Beaty: Silver the Schizoid Metal
- Darwin's Deceptive and Dangerous Devices
- Greek Bondholders at a Loss
- Weldon - This is What Will Move Gold & Silver Higher
- Euro Bailout Cracks Emerge; Greece "Just Says No"
- Euro Bailout Cracks Emerge; Greece "Just Says No"
- Trapped in Amerika
- Truisms of a Financial Crisis
- Guest Post: EU Leaders Throw Europe a Plutonium Life Preserver
| James Turk reviews Jim Rickards' 'Currency Wars' Posted: 27 Oct 2011 05:38 PM PDT 12:35a CT Friday, October 28, 2011 Dear Friend of GATA and Gold: Geopolitical analyst James G. Rickards, who spoke at GATA's Gold Rush 2011 conference in London in August, has written "Currency Wars," a book to which gold is central, and it has been reviewed by Free Gold Money Report editor, GoldMoney founder, and GATA consultant James Turk, who also spoke at GATA's London conference. Turk's review is headlined "Currency Wars" and you can find it at the Free Gold Money Report Internet site here: http://www.fgmr.com/currency-wars.html 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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| So How Do These Sorts of Crises End? Posted: 27 Oct 2011 04:59 PM PDT Bullion Vault
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| Kevin Michael Grace: Auguries -- What's behind door No. 3? Posted: 27 Oct 2011 04:57 PM PDT 11:55p CT Thursday, October 28, 2011 Dear Friend of GATA and Gold: Writing at Resource Clips, Kevin Michael Grace takes note of the recent tide of events running GATA's way. His commentary is headlined "Auguries: What's Behind Door No. 3?" and you can find it here: http://resourceclips.com/2011/10/27/auguries-whats-behind-door-no-3/ CHRIS POWELL, Secretary/Treasurer 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 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 Be Part of a Chance to Discover Multi-Million-Ounce Gold and Silver Deposits in Canada Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries. -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600.
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| Posted: 27 Oct 2011 04:57 PM PDT Aden Forecast
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| James Dines - Government’s Theft Forcing Violent End Posted: 27 Oct 2011 04:03 PM PDT  With gold and silver on the move along with stocks, today King World News interviewed legendary James Dines, author of The Dines Letter. Over five years ago James Dines said to me in an interview that before this cycle ends all fiat currencies would go to worthlessness. This was an amazing call on his part because within months of that interview we began to see competitive currency devaluations erupt. When asked about the collapsing purchasing power of currencies, Dines stated, "It started with Japan. They pushed the Yen down against the US dollar so they could compete more aggressively. I said this would be a game of competing currency devaluations because other countries say if we make our currency less valuable that means we can sell more stuff overseas."
This posting includes an audio/video/photo media file: Download Now |
| According to the Bible, What is Money? Posted: 27 Oct 2011 04:01 PM PDT The Bible knows nothing of paper currencies. According to the Bible, money is silver and gold. In the Old Testament, the Hebrew word kesef means silver, and it also means money. It occurs more than 400 times in the Bible. The unit of currency in Israel was the shekel, as a weight of silver. In the New Testament, the Greek word argurion means "a piece of silver". The Roman currency, the denarius, was a silver coin and was the wage for a day's labor and remained that non-deflating value for hundreds of years. In Acts 3 we read about a cripple who asked Peter for money. Peter replied: "Silver and gold have I none…". He said that he did not have any money to give the man. Nevertheless, he gave him something more valuable – which is not to say that the Bible despises silver and gold. The Bible simply prioritizes spiritual treasure above earthly treasure… Read More @ Moneybythebook.org
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| Gold Seeker Closing Report: Gold Rises to a One Month High While Silver Surges Almost 6% Posted: 27 Oct 2011 04:00 PM PDT Gold fell $15.85 to $1706.15 by a little after 6AM EST, but it then rallied back higher for most of the rest of trade and ended near its late session high of $1748.07 with a gain of 1.41%. Silver dropped back to $33.135 in London before it also stormed back higher in New York and ended near its late session high of $35.346 with a gain of 5.77%.
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| Harvey Organ's: Daily Gold & Silver Report Posted: 27 Oct 2011 03:38 PM PDT We are saved again by more paper injection/gold and silver rebound to score higher levels
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| A Golden Mistake Worth Repeating Posted: 27 Oct 2011 03:24 PM PDT The following conversation took place between a friend's son and me; he's a bright but relatively young investor. He had purchased some gold based on some things I'd told his father. Shortly afterward, the price dropped hard. Read More...
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| Europe Tries To Kick The Can Down The Road But It Will Only Lead To Financial Disaster Posted: 27 Oct 2011 02:44 PM PDT from The Economic Collapse Blog:
Have you heard the good news? Financial armageddon has been averted. The economic collapse in Europe has been cancelled. Everything is going to be okay. Well, actually none of those statements is true, but news of the "debt deal" in Europe has set off a frenzy of irrational exuberance throughout the financial world anyway. Newspapers all over the globe are declaring that the financial crisis in Europe is over. Stock markets all over the world are soaring. The Dow was up nearly 3 percent today, and this recent surge is helping the S&P 500 to have its best month since 1974. Global financial markets are experiencing an explosion of optimism right now. Yes, European leaders have been able to kick the can down the road for a few months and a total Greek default is not going to happen right now. However, as you will see below, the core elements of this "debt deal" actually make a financial disaster in Europe even more likely in the future. Read More @ TheEconomicCollapseBlog.com
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| Retail Trader Positioning 28th October – EURUSD on fire Posted: 27 Oct 2011 02:34 PM PDT USDJPY continues to push the high 80s in terms of percentage of traders long. AUDUSD with 59.55% of retail traders short has pushed into the long bias zone. The warm and fuzzy glow left after the Euro summit agreements has given the EUR a lot of strength with EURGBP and EURUSD now in the strong long zones with 66.48% and 66.71% of traders short respectively. Conversely the CHF safe haven is very much in play even against EUR strength, 71.69% of retail traders are long EURCHF we remain strong short biased. Today's Data & journals eurusd | gbpusd | usdjpy | s&500 | nasdaq | dow jones | gold| crude oil
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| James Dines: Government’s Theft Forcing Violent End Posted: 27 Oct 2011 12:43 PM PDT from King World News:
James Dines continues: Read More @ KingWorldNews.com
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| Posted: 27 Oct 2011 12:40 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 27, 2011 04:17 PM Timmins Gold Corp (TMM-TSX) 10 27 2011 [url]http://www.grandich.com/[/url] grandich.com...
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| We Are Saved Again By More Paper Injection / Gold and Silver Rebound to Score Higher Levels Posted: 27 Oct 2011 12:37 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: Quite a day day. Europe announced a plan for saving the continent and Greece. Gold was set to be "clocked" as yesterday the gold/silver shares were down from earlier highs coupled with the lackluster performance of silver. These are usually the signals for the banking raid. Sure enough at 3 am, the bankers whacked gold but had lots of trouble hitting silver. With the announcement from the Euro heads that we are again saved, the bourses around the world rejoiced with the Dax up 5.35%, the FTSE up 3.79%, the CAC (Paris) up 6.28% and then the Dow joined the party up 339 points or 2.8%. I will go into the details of the agreement in the body of my commentary. Read More @ HarveyOrgan.Blogspot.com
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| The Gold Price Rose $134.80 (8.3%) Over Five Straight Days, How High Will It Go? Posted: 27 Oct 2011 12:18 PM PDT Gold Price Close Today : 1746.70 Change : 24.00 or 1.4% Silver Price Close Today : 3509.6 Change : 180.4 cents or 5.4% Gold Silver Ratio Today : 49.77 Change : -1.976 or -3.8% Silver Gold Ratio Today : 0.02009 Change : 0.000767 or 4.0% Platinum Price Close Today : 1637.00 Change : 45.30 or 2.8% Palladium Price Close Today : 666.25 Change : 20.10 or 3.1% S&P 500 : 1,284.59 Change : 42.59 or 3.4% Dow In GOLD$ : $144.49 Change : $ 2.08 or 1.5% Dow in GOLD oz : 6.989 Change : 0.100 or 1.5% Dow in SILVER oz : 347.86 Change : -8.65 or -2.4% Dow Industrial : 12,208.55 Change : 339.51 or 2.9% US Dollar Index : 75.04 Change : -1.209 or -1.6% The GOLD PRICE and the SILVER PRICE have just proven in the last few days that while I might be a metals optimist, I am not a wild-eyed optimist. What? Well, I caught those upside down head and shoulders patterns on their daily charts, but I far, far underestimated how far they would jump. I didn't reckon gold would jump much farther than $1,725 or silver than 3400c. But just look at today. The GOLD PRICE has risen $134.80 (8.3%) over five straight days, from $1,611.90 to $1,746.70 today (up $24 or 1.4%). Over the same time SILVER has risen 482.9c (16%) from 3026 to 3509.5c today (up 180.4c or 5.4%). Folks, that's as good as it gets. That doesn't guarantee that metals will fall, but think about it. The GOLD PRICE today worked through its 50 DMA (1740.66) and has just about reached the spot where it broke down in late September. Limit to this is $1,775, maybe $1,800 at most, then some sort of correction will take hold. Course I'm not dogmatic about my views. If GOLD passes $1,800 for two days, I'll gladly put on a grin like a jackass eating sawbriers and say I was wrong and it's going up after all. That's the least I could do. And I'm always willing to do the least. The SILVER PRICE has been ratcheting up stepwise, bursting through first one and then the next resistance. Today it was stopped just under 3550c with a 3536c high. SILVER has now left in the dust its 300 dma (3251c) and is drawing a bead on its 200 DMA (3628), with the 50 DMA at 3632). It can easily reach that, but about 3825 it will smack its face right into the downtrend line from the August high, and that might just flatten silver's nose. Okay, I am slap out of metaphors so I'm going to have to wrap this burrito up. Expect a couple of more up days out of SILVER and GOLD, but keep an eye peeled for a correction. Y'all take a look around, and fix the sight in your minds, because what you are seeing is AS GOOD AS IT GETS. As good as it gets for stocks and the euro, anyway. Forget not, neither lay aside the proverb, "Buy the rumor, sell the news." Today came the news, about the "fix" for the European sovereign debt crisis. Today, maybe tomorrow, comes your chance to sell stocks and euros. It don't get no better than this. For all the Dow rose today 2.8%, the Dow in Gold Dollars rose only 1.5% to G$144.65 (6.997 oz). This is a lower high than last Friday's $148.76 (7.196 oz). Unless DiG$ can close above that high, they are fated, yea, doomed to lose value against gold. For stocks, this is as good as it gets. STOCKS rose like mad today on news that the European sovereign debt crisis (read: "bank solvency crisis") had been solved by a Bucket (bail out fund) worth 250 bn. Euros that will be leveraged 4 or 5 times, producing an equivalent one trillion euros. Did I just write that? Do this chuckleheads actually believe that they by leverage they will get OUT of the miry swamp that leverage got them INTO? Ahhhh, it doesn't end there. Where will the money come from to fill up the bucket so the Bucket can buy the bad debts from the banks? Well, they'll have to BORROW it, which means they go into an already sluggish capital market and throw huge new demands on it and crowd out business borrowers and make credit tighter still. Great idea. Maybe the Chinese will save them? Yeah, that's it, Europe will trick the Chinese into buying their rotten bonds backed by rotten sovereign debt, and the Chinese won't notice that at all, right? Yeah, right, those Chinese are notoriously bad with numbers and business. This is fun, but I won't prolong it because it's too easy. It's like shooting holes in Swiss cheese -- no challenge. It's enough to make me stop calling myself a natural born fool. These European fools are giving fooldom a bad name. End result of this deal will be LOTS more Euros born into circulation, which for gold and silver will be like pouring liquid manure on kudzu. Y'all know how to plant kudzu, right? Drop it and run. This "deal" is nothing but a public relations scarecrow. If it didn't have Sarcophagus and Ferkel holding up its arms and kicking its legs along, it would flop dead on its face. And will, before too long. STOCKS burst through 11,900 resistance today and raced upward a massive 339.51 points (2.8%) to close at 12,208.55. S&P gained way more, up 542.59 points or 5.26% to 1,284.59. Any of y'all ever been drunk? Yes, I know that nice folks like y'all don't do that sort of thing, buy maybe y'all had a friend that did that once and told you about it. Anyway, a drunk rides a curve. More you drink, better it gets, until pretty soon you are King Of The World and it just don't get no better. It sure don't. When gravity resumes control on the downside of that curve, oh, my, you go down very fast, to a very low destination. So after the drunk of the euro "fix" wears off, in a day or so, stocks will drop as fast as they rose. If I am correct and diamond top has already been posted in stocks, stocks will rally to about 12,500 and fail. Now I could have drawn that diamond wrong, and it could be bigger than that, and the Dow could rally to 12,800. Either way, the outcome will be the same as stocks sink like your car keys out of your shirt pocket over the side of the bass boat, seeking the deep bottom of the lake in a hurry. Were I a fan of the US DOLLAR and long dollars, I'd be pretty sore today. Dollar lost a massy 120.9 basis points (1.56%) to end at 75.037. That sure enough looks bad, slicing through that 200 day moving average (75.79) like a samurai sword through half-set jello. Now the dollar might find its feet here in the next or so, or it might fall as far as 74.00 and the bottom boundary of the trading range. Fall thru that, and the dollar has emphatically turned down. Until that happens the dollar's rally remains in limbo. Y'all ever wonder why I waste my time talking about fiat currency trash like the dollar, yen, and euro? Simply because those weaklings are -- get this -- gold and silver's "competition." At least, for a little longer. As y'all have guessed, the euro gapped up today, burst through its 200 dma (140.79) like it was wet paper, and ended up 2.09% at 141.93. Look around, cause this is as good as it gets. Euro left a gap at 143.50 when it broke down, so might yet trade that high. Rationally, however, the "fix" has weakened the euro the banking system, and the economy far worse than the only real cure would have done: a complete debt jubilee and write off of all the unpayable debt. A clean start, paid by the culprits, the banks and the folks who took a very poor chance on a government, any government, keeping its word. Those people need to be weeded out of the financial and economic gene pool. The Yen rose to another all time high against the US dollar, to 131.67c/Y100 (Y75.95=$1), up 0.31% and straining at the bit to go higher. On 27 October 1787 the first of the Federalist Papers appeared in the New York Independence. The 85 essays, written by Alexander "Central Bank" Hamilton, James Madison, and John Jay, were published under the pen name "Publius." They offer grand insight into what the drafters of the 1787 constitution intended, but most all of the tyrannies they assured us would never come to pass have, beginning in 1861 and continuing until today. No institution or constitution ever devised can stop human nature's craving for power over other men. Freedom can never come from such fountains, but only from the hearts of men who are resolved to live free or die. 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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| Posted: 27 Oct 2011 12:06 PM PDT U.S. public debt now surpasses $15 trillion. The financial sector has wrecked disaster in the American economy. Wall Street banks cause havoc in housing and student loans. from mybudget360.com:
It can be argued that the world is suffering from an epidemic of chronic debt. The financial sector loves to play on words and would rather call certain debt issues as a credit crisis as if it were a temporary thing like a mid-life crisis. This is also similar to renaming junk bonds to something more user friendly like a household pet, high yield bonds. There seems to be a naïve euphoria that the problems in Europe are now resolved. Nothing has been resolved aside from forcefully cramming down write-downs and creating more debt to bailout more financial institutions. As the markets rally on this news we have now officially crossed the $15 trillion barrier with total public debt in our own nation. The world continues to fuel a debt induced problem with more debt. Our entire system has been captured by this financialization where everything from a college education, to automobiles, to purchasing a home have become mechanisms to enslave people with ungodly amounts of debt and send profits to the few in the gilded financial class. As this goes along the elite in the financial sector become wealthier while the majority of Americans are left behind.
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| The US Dollar Gets Annihilated Posted: 27 Oct 2011 12:01 PM PDT by Dan Norcini:
"Whack a Mole" does not even come close to what the Forex crowd did to the US Dollar today. Earler in the week it fell below the 50 day moving average but seemed to be trying to regain its footing just above the 76 level. Today it was blasted to kingdom come breaking through multiple support levels in the process and crashing through the critical 100 day moving average as if it did not even exist. Based on the current chart picture, there seems to be little in the way of downside support until it reaches the former consolidation zone. Failure to stop there and it will make a new low.
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| Posted: 27 Oct 2011 11:54 AM PDT FGMR - Free Gold Money Report October 27, 2011 – It was my good fortune to receive an advance copy of Jim Rickard’s new book, “Currency Wars”. It is a great book, and I highly recommend it. The book is split into three parts, with the first part being almost surreal because it reads more like a novel than non-fiction. It details Rickards’ participation in an exercise at the Warfare Analysis Laboratory near Washington D.C. This group is one of the Defense Department’s leading venues for war games and strategic planning, but in a first-ever event, the game in which Rickards joined was not a war-fighting simulation. Rather, several dozen people from the military, academic and intelligence communities fought a global financial war using currencies and capital markets to support national interests. Rickard and two colleagues were invited to give the simulation some real-world, Wall Street expertise about markets, which they certainly...
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| Are You One of the 99% Still Undecided About Owning Gold or Silver? Here?s What You Need to Know Posted: 27 Oct 2011 11:41 AM PDT Don't own any gold or silver yet? New to the precious metals? Regardless whether you are a novice or seasoned veteran, the following seven points provide essential background information you can use to help determine whether the precious metals are right for you. Words: 1311 So says James Turk ([url]www.goldmoney.com[/url]) in edited excerpts from an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited ([ ]), abridged (…) and reformatted below for the sake of clarity and brevity to ensure a fast and easy read. The author's views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Who in the world is currently reading this article along with you? Click [COLOR=#0000ff]here to find out.[/COLOR] Turk*goes on to say: 1) Gold is not a commodity; it ...
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| Jeff Nielson: 'D-Day' near for GLD Posted: 27 Oct 2011 11:21 AM PDT 6:20p CT Thursday, October 27, 2011 Dear Friend of GATA and Gold: The conflict of interest in the exchange-traded gold fund GLD and the diversion of precious metals investment the fund likely causes are examined by Jeff Nielson's new commentary at Bullion Bulls Canada, "D-Day Near for GLD": http://www.bullionbullscanada.com/index.php?option=com_content&view=arti... 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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| Dan Norcini: The US Dollar gets Annihilated Posted: 27 Oct 2011 11:01 AM PDT there seems to be little in the way of downside support until it reaches the former consolidation zone. Failure to stop there & it will make a new low.
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| Ross Beaty: Silver the Schizoid Metal Posted: 27 Oct 2011 10:24 AM PDT Ross Beaty, Executive Chairman of Alterra Power Corp. speaks at the Casey Research/Sprott Summit When Money Dies.
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| Darwin's Deceptive and Dangerous Devices Posted: 27 Oct 2011 10:22 AM PDT In the last month, investors have read headlines like Europe has six weeks to find debt crisis solution, warns Chancellor George Osborne (Sept 23), In the Absence of a Credible Plan we will have a Global Financial Meltdown in ... Read More...
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| Posted: 27 Oct 2011 10:11 AM PDT By: Michael Finger Thursday, October 27, 2011 In an agreement announced overnight, the European Union offered $100 billion to stem an imminent Greek debt default in exchange for a 50% haircut to Greek bondholders. This is a bittersweet victory for those of us who believe in the power of the free market. When the US government undertook its largest round of bailouts in 2008, it bought nearly worthless assets at 100¢ on the dollar. At the very least, European authorities have recognized that taxpayers shouldn't be responsible for shouldering the entire burden of bondholders' investments. However, Brussels is still committed to making taxpayers bear some of the losses – and this is still fraught with moral hazard. In the absence of continued EU bailouts, Greece would have been shut out of international credit markets years ago. The purpose of European “...
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| Weldon - This is What Will Move Gold & Silver Higher Posted: 27 Oct 2011 10:06 AM PDT Move is a result of weakness in the dollar & strength in the euro based on thought process that Germany trying to maintain hard currency for the euro.
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| Euro Bailout Cracks Emerge; Greece "Just Says No" Posted: 27 Oct 2011 09:55 AM PDT When reporting on the announcement of the math-free deus ex machina bail out that was announced last night, which nobody still has any grasp over, but it had a "trillion" in there somewhere so that alone sent the market scurrying, we suggested that it would take about 24-48 hours for reality to start settling in. It may have been considerably less. As the Telegraph reports, "A trillion euro bail-out to save the EU's single currency is in danger of unraveling after Germany's central bank warned that the rescue measure was too dependent on the high-risk deals that caused the economic crisis." So what did the Bundesbank do to send tremors that threaten to fracture the brittle nanometer ice-plated facade under which the most tempestuous riptide in European history is contained? Well, first it appears to have used a calculator, something nobody else in the European Council seems to be capable of. Second, it realized that heaping leverage upon leverage to fix a problem, something even a five year old (non-Ivy league trained) would tell you is lunacy, may not be the best approach to fix the problems at hand. "The concerns were led by Germany's powerful central bank, which expressed fears that a plan to leverage a €440 billion eurozone rescue fund to amass a "fire power" of €1 trillion, or £880 billion, resembled the risky finance methods that triggered the crisis in 2008. Jens Weidmann, the president of the Bundesbank and a member of the European Central Bank, sounded the alarm over the plan to "leverage" the fund by a factor of four to five times without putting any new money into the pot. He warned that the scheme could be hit by market turbulence with taxpayers left holding the bill for risky investments in Italian and Spanish bonds." Does that mean that the "ironclad firewall" is neither "ironclad" nor walls off any fire? Especially since neither the object (Germany) of the bailout nor the subject (Greece) appear to have any desire to go along with the deus ex? As it turns out, apparently not even Merkel's promises that the EFSF would never have to be used, just the mere threat of its existence would collapse spreads everywhere, an assumption so idiotic not even Hank Paulson tried it more than three times, was able to set Weidmann's mind at ease. So what happens when, as it is bound to happen, and as we have been pounding the table on since the ill-fated July 21st bailout, realize that very soon (yes, French banks have been on downgrade review since September 14, and earlier today Sarkozy just announced French 2012 GDP growth would be a negligible 1%, something the rating agencies will be delighted to hear), following the French downgrade it will be all up to them? Another 500 pip surge EURUSD surge on short covering? We doubt it: following today's move there are no more shorts left in the Euro. Which means that the next push lower will have no natural buyers, and any Bazooka announcement will have to be much bigger, and thus far less believable. From Telegraph:
But perhaps what is the worst news of the day is that Greece, the country which this whole shebang is supposed to make better, threw up violently all over the "rescue":
So... Now what? The Greek strikes will return until GDP grows? In the wacky, waving, inflatable arm flailing math word of Europe this is, unfortunately, precisely the only math that works.
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| Euro Bailout Cracks Emerge; Greece "Just Says No" Posted: 27 Oct 2011 09:55 AM PDT
When reporting on the announcement of the math-free deus ex machina bail out that was announced last night, which nobody still has any grasp over, but it had a "trillion" in there somewhere so that alone sent the market scurrying, we suggested that it would take about 24-48 hours for reality to start settling in. It may have been considerably less. As the Telegraph reports, "A trillion euro bail-out to save the EU's single currency is in danger of unraveling after Germany's central bank warned that the rescue measure was too dependent on the high-risk deals that caused the economic crisis." So what did the Bundesbank do to send tremors that threaten to fracture the brittle nanometer ice-plated facade under which the most tempestuous riptide in European history is contained? Well, first it appears to have used a calculator, something nobody else in the European Council seems to be capable of. Second, it realized that heaping leverage upon leverage to fix a problem, something even a five year old (non-Ivy league trained) would tell you is lunacy, may not be the best approach to fix the problems at hand. "The concerns were led by Germany's powerful central bank, which expressed fears that a plan to leverage a €440 billion eurozone rescue fund to amass a "fire power" of €1 trillion, or £880 billion, resembled the risky finance methods that triggered the crisis in 2008. Jens Weidmann, the president of the Bundesbank and a member of the European Central Bank, sounded the alarm over the plan to "leverage" the fund by a factor of four to five times without putting any new money into the pot. He warned that the scheme could be hit by market turbulence with taxpayers left holding the bill for risky investments in Italian and Spanish bonds." Does that mean that the "ironclad firewall" is neither "ironclad" nor walls off any fire? Especially since neither the object (Germany) of the bailout nor the subject (Greece) appear to have any desire to go along with the deus ex? As it turns out, apparently not even Merkel's promises that the EFSF would never have to be used, just the mere threat of its existence would collapse spreads everywhere, an assumption so idiotic not even Hank Paulson tried it more than three times, was able to set Weidmann's mind at ease. So what happens when, as it is bound to happen, and as we have been pounding the table on since the ill-fated July 21st bailout, realize that very soon (yes, French banks have been on downgrade review since September 14, and earlier today Sarkozy just announced French 2012 GDP growth would be a negligible 1%, something the rating agencies will be delighted to hear), following the French downgrade it will be all up to them? Another 500 pip surge EURUSD surge on short covering? We doubt it: following today's move there are no more shorts left in the Euro. Which means that the next push lower will have no natural buyers, and any Bazooka announcement will have to be much bigger, and thus far less believable. From Telegraph:
But perhaps what is the worst news of the day is that Greece, the country which this whole shebang is supposed to make better, threw up violently all over the "rescue":
So... Now what? The Greek strikes will return until GDP grows? In the wacky, waving, inflatable arm flailing math word of Europe this is, unfortunately, precisely the only math that works.
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| Posted: 27 Oct 2011 09:51 AM PDT Slowly, as Americans are waking up to the fasco-communist police state that surrounds them and realize that the economy in the US will never recover until after the US dollar hyperinflates into worthlessness ... Read More...
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| Posted: 27 Oct 2011 09:30 AM PDT So much information and so many ideas come to us daily in the financial press. We're able to fill up our trash basket in just minutes. In The Financial Times, for example, Larry Summers recently offered a solution to America's housing debt problem. And in The Herald Tribune our favorite comedian, Thomas L. Friedman, tells us about the next Internet revolution and what a wonderful world it will create. Meanwhile, stocks appear to be on the march again. The Dow is up over 4% for the week. And oil is back over $90 per barrel. Once again, 'recovery' hopes are building. The Europeans just have to sort out their debt mess. And Americans too! And that should be easy. There are so many smart people on the job! In Europe, Monsieur Sarkozy and Frau Merkel — not to mention an army of technicians, bankers and delusional incompetents — are finding ways to solve Europe's debt crisis. How? By adding more leverage…debt…and confusion. To simplify, today's bad debt will be guaranteed by tomorrow's bad debt. The authorities are just hoping that between today and tomorrow is sufficient time for them to get away. It may be a bigger problem, they say to themselves, but at least it will be someone else's problem. And who knows, maybe Mr. Friedman will be right. He's wrong with such conviction and such regularity that there is bound to come the time when he is right by accident. Now he tells us he sees another 'tech revolution' coming, this one based on 'the cloud' and the social media. Surely this one is going to make us all rich…or make the world a better place…whichever comes first. He hardly mentions the last tech revolution, which he also thought would make us all rich. It did nothing of the sort, of course. Against all odds, the last decade bucked the course of 300 years of history. With the help of the new technology — at their fingertips — Americans got poorer! But that's a long story. So, let's turn to Mr. Summers. He tells us that the problem with the US economy is that people have lost too much money on their houses. And if house prices sink further there is little chance that the economy can get out of its present low-growth slump. Right so far. But what to do about it? The man with all the answers steps boldly forward and proposes to make a bad situation worse. How would he address the problem of too much mortgage debt? By increasing the amount of mortgage debt! "It is a central irony of financial crisis that while it is caused by too much confidence, too much borrowing and lending, and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending." That may seem stupid to you and other sensible mortals, dear readers. But Mr. Summers sups with the gods, where the rules that cover the rest of us don't apply. He says the problem with public policy is its "inability to appreciate this truism." The real truism is that Larry Summers has never understood what is going on. Nor will he. His whole career is based on not understanding. It's served him well so far; he'll stick with it. The idea behind Mr. Summers' solution is that you subsidize what doesn't work; you reward failure. So, instead of abolishing Fannie and Freddie, for example, you give them more money… Failed mortgage lending is a big drag on the economy. So, you lend more! You could apply the same logic to other failed industries — such as education. Education spending has soared over the last 40 years. But test scores show there has been no payoff…no improvement at all. One of the ways the feds shift resources to this zombie sector is with student loans. Bloomberg has the report: William Prince, of Rosenberg, Texas, knows just how inescapable student loans can be. The 52-year-old father of two started paying off $51,000 in college debt 15 years ago and now owes $57,000. "I don't expect to pay these loans off in my lifetime," he says. Prince, a criminal justice major who works in private security, had to defer payments during three bouts of unemployment, and the accumulated interest left him deeper in debt. Americans now owe about $950 billion in student loans — more than their total credit-card debt. The weight of those IOUs is a frequent refrain for Occupy Wall Street protestors and their online supporters. On the "We Are the 99 Percent" Tumblr blog, which features hundreds of pictures of people holding handwritten signs describing their desperate financial situations, student loan concerns exceed those about children, unemployment, and health care, according to an analysis by Mike Konczal, a fellow with the nonprofit Roosevelt Institute. Desperation may have something to do with that outcry. Two out of five Americans with federal student debt can't make monthly payments and either defer, default or are delinquent, according to Mark Kantrowitz, publisher of Fastweb.com, a free scholarship-matching service, and FinAid.org, a source of student financial aid information… We'll save Larry Summers some thinking. What to do about this trillion-dollar weight of student debt? Lend the students more money! Regards, Bill Bonner, Truisms of a Financial Crisis originally appeared in the Daily Reckoning. The Daily Reckoning provides over 400,000 readers economic news, market analysis, and contrarian investment ideas.
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| Guest Post: EU Leaders Throw Europe a Plutonium Life Preserver Posted: 27 Oct 2011 09:29 AM PDT Submitted by Charles Hugh Smith from Of Two Minds EU Leaders Throw Europe a Plutonium Life Preserver The euro system was doomed from inception for fundamental reasons; trying to conjure up "something for nothing" solutions will fail catastrophically, and soon. As Europe flails helplessly in the waves of insolvency, its leadership has tossed it a life preserver. Too bad it's plutonium, and will take Europe straight to the bottom. Plutonium is of course one of the most toxic materials on the planet, and the "rescue" cooked up by the EU leadership is the financial equivalent of plutonium. Stripped of propaganda and disinformation, the "rescue" boils down to this: something for nothing. Sound familiar? Isn't "something for nothing" what inflated the bubbles which have popped so violently? The EU "rescue" conjures something for nothing in two ways: 1. The financial alchemist's favorite magic: leverage. Take a couple hundred billion euros in cash, leverage it up with various magic (unlimited power is now at your fingertips!) and voila, you can suddenly backstop 1 trillion euros of banking-sector losses, all with illusory money. Something for nothing. 2. "Guarantees" to cover the first 20% of loan losses. This is being presented as the equivalent of 100% guarantees, because it is inconceivable that losses could exceed 20%. In other words, the credulous buyer of at-risk Euroland bonds is supposed to be reassured enough to load the wagon because 20% of the bond is backstopped. This is something for nothing because the EU leadership is explicitly claiming the at-risk portion--80% of every bond--is somehow "safer" because the first 20% will be paid by EU taxpayers. In essence, the EU is claiming that its illusory "something for nothing" magic will turn lead into gold. Abracadabra....oh well, close; it's heavy, it's metallic--oops, it's plutonium. The leadership is resorting to Cargo Cult incantations and legerdemain because the alternative is to raise the 1 trillion euros in cold hard cash needed to bail out the first wave of failed banks and underwater bondholders by raising taxes and cutting budgets, i.e. austerity. (Recall that the total bill will be at least 3 trillion euros, so 1 trillion is just a down payment.) Raising cash the hard way is politically unacceptable in both France and Germany, not to mention every other nation in the EU, so the political lackeys of the banking sector and bondholders are cravenly substituting a "something for nothing" magic show which they hope will fool the global bond market. Note to EU lackeys: there is no free lunch. Leverage is plutonium, not gold, and guaranteeing the first 20% of bonds that are doomed to lose 40%-75% is not terribly appealing to anyone not influenced by the ECB's mind tricks. ("These are not the euros you're looking for; move along.") No wonder France was so anxious for the ECB to crank up the euro printing press: they wanted-- just like everyone else involved--something for nothing. The best way to understand the EU's current situation is to imagine an astoundingly dysfunctional family of deep-in-denial-addicts, screaming co-dependent parents, and grown-up grifters acting like spoiled brats, all trapped in a rat-infested, flooded flat that's had the gas turned off for lack of payment--and there's a plutonium life preserver glowing in the knee-high water. Admittedly, this analogy is imperfect, but it does capture the essential psychology of the end-game being played out. A slightly more formal model for understanding the increasingly unstable dynamics of the EU is the post-colonial "plantation" model I've described here before. The key characteristics of the Colonial Model of Capitalism are: 1. Low cost labor and low-value materials flow from the periphery (colonies) to the Empire (center), which then ships high-value, high-profit finished goods back to the colonies. 2. The colonies must buy the high-value finished goods on credit that is issued and controlled by the Imperial center. Hmm--doesn't this sound like the relationship of Germany to the European periphery? The euro cemented this co-dependency: Germany had the most efficient production, and once the euro raised the cost of production in the periphery nations, then of course nobody could beat Germany's cost advantages. The euro actually lowered Germany's cost of production in terms of foreign exchange rates while raising the costs in periphery nations that were previously able to lower their cost of production via currency devaluations. Having surrendered that mechanism to access the deep credit markets of the center, then they had no choice but to buy the high-margin finished goods from Germany, as nobody else could make the same goods for the low German price. These booming high-profit German exports of finished goods to the European periphery generated vast surpluses of capital that were then loaned to the periphery to enable their further purchases of German goods. Why risk the heavy investment costs of production in the periphery when Germany had the lowest costs of production and was willing to loan the buyers the cash needed to keep buying? It's the classic mercantilist-consumer co-dependency on a gigantic scale, with low-cost credit fueling both increased consumption and production. As long as the credit flowed in vast torrents of low-cost, easy to borrow money, the co-dependency looked like a "virtuous cycle." Debt junkies eventually have to start servicing their debts, of course, and that's when the ugly realities of colonial dominance become visible. Germany casts itself in this melodrama as the wronged party, the industrious craftsfolk churning out high-quality goods who have somehow been lured into pouring hard-earned cash down various ratholes to save nefarious EU banks--including their own. But setting aside the melodrama for a moment, let's ask: how many German goods would have been imported by the EU periphery if those nations had been forced to pay cash for everything from the start? Precious little is the answer; the cash--in the form of actual surpluses available to spend on imports--would have run out immediately after the euro was launched. In other words, the debt orgy enabled not just carefree consumption, it also enabled vast German exports to the Eurozone. Now we start seeing how the once-mutually beneficial co-dependency has become toxic: now that the periphery's debtors have become debt-serfs, German exports to the periphery are contracting. This helps explain why even the supposedly prudent Germans are seeking something for nothing as the painless answer to an intrinsically unstable and self-destructive system. When it all implodes, German exports to the periphery will be a shadow of their past glory, and the surpluses which enabled the leveraged orgy of credit will dwindle. (Germany's other big export markets, China and the U.S., are also contracting.) Sovereign currencies are the only mechanism for discounting differences in credit worthiness and production costs. The euro was established as the currency equivalent of gold, holding the same value in every member country. But the mercantilist/quasi-colonial model requires credit to flow from the center to the periphery, and that is precisely what has happened in the EU. In the colonial model, the colonists are indebted and poor. The net value of their labor flows to the Imperial center as interest payments, and the banks at the center set the cost of money and the terms--naturally. This co-dependency based on credit flowing from the mercantilist center to the periphery is both exploitative and systemically unstable. Now that the ontological instability of the euro is being revealed, the dysfunctional family members are blaming each other and desperately trying to conjure up something for nothing to bail themselves out of a system which was doomed to implode from its very inception. All the complexity and confusion distills down to this: the EU leadership needs something for nothing to save the EU, but there is no free lunch. There is only one solution to the exploitation, the illusory leverage, the crushing debts: massive write-offs of all the bad debt everywhere in the EU. And since debt is someone else's asset, then that means writing down the assets, too. The only way to clear the insolvency is to write off 3 trillion euros of debt-based assets and re-enable sovereign currencies. Anything else is simply more tiresome melodrama.
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With gold and silver on the move along with stocks, today King World News interviewed legendary James Dines, author of The Dines Letter. Over five years ago James Dines said to me in an interview that before this cycle ends all fiat currencies would go to worthlessness. This was an amazing call on his part because within months of that interview we began to see competitive currency devaluations erupt. When asked about the collapsing purchasing power of currencies, Dines stated, "It started with Japan. They pushed the Yen down against the US dollar so they could compete more aggressively. I said this would be a game of competing currency devaluations because other countries say if we make our currency less valuable that means we can sell more stuff overseas."
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