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Saturday, October 1, 2011

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Gold Is NOT a Safe Haven

Posted: 01 Oct 2011 05:48 AM PDT

Say your house catches fire. Do you call your insurer before trying to escape...?

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The Great Panther Silver Miners Challenge Officially Begins

Posted: 01 Oct 2011 05:20 AM PDT

May the best miner win!

It's now official ladies and gentlemen: 101 Bullion Bulls will be duelling each other for bragging rights (and silver) in the 2011-12 Great Panther Silver Miners Challenge. From now through to the end of March 2012, our contestants will be cheering on their favorite gold and silver miner.

Valuations for these miners are even more compressed than when last year's contest began, so expectations are high for an even more spectacular competition this year. With Great Panther Silver having won last year's competition with a 333% gain over the contest period, our Miners Challenge highlights the stellar investment potential of precious metals miners.

From tiny micro-caps to multi-billion dollar gold miners, the 101 miners chosen represent the complete spectrum of gold and silver mining. Indeed, with over a hundred miners chosen there were still dozens of gold and silver miners which were not picked – as new miners continue to emerge on a monthly (if not weekly) basis in this thriving sector.

Since our contestants are not competing only for the "glory", let's remind people of the prizes which have been donated by our contest sponsor, Great Panther Silver:


Now here is the official list of contestants for this year's Miners Challenge:

Dimitri Speck talks to James Turk

Posted: 01 Oct 2011 03:00 AM PDT

Dimitri Speck, Author of Geheime Goldpolitik, and James Turk, Director of the GoldMoney Foundation, talk about Dimitri's book "Secret Gold Policy". They talk about the 400$/oz ...

Stunning OI numbers/Huge Number of Gold ounces Standing in Oct/Markets tumble globally

Posted: 01 Oct 2011 01:56 AM PDT

This posting includes an audio/video/photo media file: Download Now

Is Gold Mining Returning to the Yukon?

Posted: 01 Oct 2011 12:19 AM PDT

Here's a short, but very interesting piece that was included in yesterday's edition of Casey's Daily Dispatch.  It was written by our resident geologist Louis James, the editor of Casey's International Speculator.  The link is here.

Gold is STILL a buy

Posted: 01 Oct 2011 12:19 AM PDT

Gold has dropped in price to around $1,600 per ounce and suddenly some say that gold is no longer a commodity that investors should embrace. I say ridiculous.

In times of panic, investors sell everything, even assets that have medium to long-term growth opportunities. The recent selling of gold was related to panic from hedge funds needing to raise money for redemptions as well as a tightening of margin requirements. This was not selling pressure based on any fundamental change in conditions or outlook.

Like every other main-stream commentator, this gentleman doesn't understand what really caused the sell-off, but everything else he has to say is spot on...and I urge you to take the time to run through it.

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Gold Price Slump Stokes Jewelry, Investment Demand in India

Posted: 01 Oct 2011 12:19 AM PDT

A slump in gold prices from a record will fuel demand for the precious metal before a festival season in India, the world's largest consumer, according to the nation's biggest jewelry retailer.

"Everyone is a buyer now, and the investment demand is huge," Prithviraj Kothari, president of the Bombay Bullion Association said in an interview. "Before the fall in prices, the showrooms were empty, and now there are queues for purchasing gold coins and bars."

A better-than-expected monsoon may push up rural incomes and boost India's gold imports by more than 4 percent to 1,000 metric tons this year, Kothari said on Sept. 20.

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Gold's plunge was 'engineered' by central banks, Gerald Celente tells GoldSeek Radio

Posted: 01 Oct 2011 12:19 AM PDT

Market analyst Gerald Celente today tells GoldSeek Radio's Chris Waltzek that the recent plunge in gold was "engineered" by central banks to scare people out of investing in precious metals.

That's only partly true of course, but he's got the 'engineered' part exactly right.  The interview runs just under 17 minutes...and is posted over at the goldseek.com/radio website...and the link is here.

This economic collapse is a 'crisis of bigness'

Posted: 01 Oct 2011 12:19 AM PDT

Leopold Kohr warned 50 years ago that the gigantist global system would grow until it imploded. We should have listened.

Living through a collapse is a curious experience. Perhaps the most curious part is that nobody wants to admit it's a collapse. The results of half a century of debt-fuelled "growth" are becoming impossible to convincingly deny, but even as economies and certainties crumble, our appointed leaders bravely hold the line. No one wants to be the first to say the dam is cracked beyond repair.

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By the Numbers for the Week Ending September 30

Posted: 30 Sep 2011 10:59 PM PDT

Just below is this week's closing table, followed by the CFTC disaggregated commitments of traders (DCOT) recap table for the week ending September 30, 2011.

20110930table 
 
If the images are too small click on them for a larger version.


Continued…


Vultures, (Got Gold Report Subscribers) please note that updates to our linked technical charts should be done by the usual time, (18:00 ET) on Sunday.  


Gold and Silver Disaggregated COT Report (DCOT)

 


In the DCOT table below a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position.

The way to think of it is that black figures in the Change column are traders getting "longer" and red figures are traders getting less long or shorter.


All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.

20110930DCOT 

(DCOT Table for September 30, data as of September 27.  Source CFTC for COT data, Cash Market for gold and silver.)

***

The Myth of the Gold Supply Deficit

Posted: 30 Sep 2011 10:30 PM PDT

COMEX Silver – Commercial Net Short Positions Plunge

Posted: 30 Sep 2011 09:40 PM PDT

The CFTC just released its commitments of traders (COT) report at 15:30 ET for trader's positions as of the close on Tuesday, September 27 and the data show a stunning drop in the large commercial net short positions in both gold and in silver futures.

For example, as silver fell $7.88 or 19.8% Tues/Tues, from $39.76 to $31.88, traders classed by the CFTC as "commercial" reduced their collective net short positioning (LCNS) by an extremely large 16,446 contracts to show 24,262 contracts net short. This, while the open interest fell by 10,089 to 102,014 open.

CLICK IMAGE FOR LARGER VIEW

16,446 contracts net short is the largest 1-week drop in large commercial net short positioning (LCNS) since February 14, 2006 (-25,048 contracts then, with silver then $9.22).

24,264 contracts net short is the lowest LCNS since November 25, 2008 (LCNS was 23,682 then with $10.33 silver).

23.8% is the lowest relative commercial net short positioning since October 21, 2008 (23.2% then with $10.10 silver).

As silver fell a net 19.8% Tues/Tues the large commercial traders reduced their net short bets by 40.4%. To find a larger 1-week drop percentage wise we have to go all the way back to March 25, 2003 (-47.7% then with $4.39 silver).

The largest portion of the net short reduction was by the Producer/Merchants, the category which includes bullion banks. They covered or offset 11,213 down to 33,563 contracts net short – the lowest net short position for the Big Sellers since December 9, 2008 (32,878 contracts net short then with $9.83 silver).

Read more @ GotGoldReport.com

Heavy Gold Buying By Funds Underpins Precious Metals Prices

Posted: 30 Sep 2011 09:37 PM PDT

"Hedge Fund Heavyweight Sees Gold at $2,200. Gold, platinum and Brent oil will lead gains in commodities as investors seek to protect assets and shortages emerge, according to Tony Hall, the hedge- fund manager who earned 33% for his clients this year."

"Gold may climb 21% to a record $2,200 an ounce by the end of 2011, platinum may gain 10% and Brent could rise 25% to $140 a barrel in six months, said the London- based chief investment officer of Duet Commodities Fund Ltd., which manages more than $100 million of assets. Its eight-month gain compares with a mean return of +0.6% across commodity hedge funds tracked by HedgeFund.net and beat larger rivals such as Clive Capital LLP and Fortress Commodities Offshore Fund Ltd."

"The fear of recession, the fear of worse economic numbers is weighing on commodities and stopping gains from fundamentals from coming through," said Hall, 31, who spars as a heavyweight boxer. "We still believe in the gold story. If you believe the world is in trouble or in further economic growth disruption, then gold is a good safe haven. If you believe that the world is going to come out okay, then it's a good inflation hedge." At a time when the MSCI All-Country World Index of global equities declined 10% this year, the Standard & Poor's GSCI measure of 24 commodities advanced 2.7%, led by silver, gold and energy."

"Investors held about $431 billion in raw materials by July, an almost fivefold gain in six years, Barclays Capital says. As equity holders contend with losses of $8.5 trillion since May, speculators made their biggest wagers on higher commodity prices in almost three months in the week to September 6 as they anticipated that even weaker economic growth will mean shortages."

"Gold advanced +28% to $1,819.88 this year, heading for an 11th consecutive annual gain, the longest winning streak in at least nine decades. It's the second-best performer in the S&P GSCI behind silver, which rose 31%. Gold is trading at 45 times the price of silver, down from a multiple of 84 in 2008. Silver, the precious metal most used in industry, rose more than threefold to $40.4338 since the end of that year."

"The gold price of $2,200 predicted by Hall would be 15% more than the all-time high of $1,921.15 reached September 6. It would still be below the then-record $850 reached in 1980, equal to $2,337 now in inflation-adjusted terms. Bullion had tumbled 5.7% from its all-time high by September 16."

"Central banks are expanding their gold reserves for the first time in a generation. Euro-area nations added 0.8 metric ton to their holdings this year, the first increase since 2001, International Monetary Fund data show. Central banks and government institutions worldwide bought 192.3 tons in the first half, according to the World Gold Council."

"I'd say gold will have a very good run higher, and a very good retracement would be justified," Hall said.

"If we see a retracement back to $1,700, I think at that point would be a good opportunity to get in.' That trading idea came from Arno Pilz, 42, who founded the fund with Hall in July, 2010. The former head of metals trading at Lehman Brothers Holdings Inc. oversees the fund's investments in precious and industrial metals while Hall runs the energy trades. They plan to add an agricultural specialist in second- half of 2012 at the earliest and cap total assets at $1 billion." -Chanyaporn Chanjaroen 9-19-11 Bloomberg.net


This posting includes an audio/video/photo media file: Download Now

LISTEN – Gold Market with Brien Lundin 10.1.11

Posted: 30 Sep 2011 09:17 PM PDT

From The Korelin Economics Report:

Gold Forecast
Gold Market update with Brien Lundin 10.1.11 
Brien Lundin provides insights into the current gold market.

More @ KEReport

LISTEN – Silver with David Morgan 10.1.11

Posted: 30 Sep 2011 09:11 PM PDT

From The Korelin Economics Report:

Silver Forecast
Silver update with David Morgan 10.1.11 
David Morgan gives his views on the current silver market.

More @ KEReport

BrotherJohnF – Silver Update – “Peak Silver”

Posted: 30 Sep 2011 09:01 PM PDT

Brother John suggests the bottom is in, predicts a violent retracement, $100 silver in 2012, and Peak Silver.


~TVR

REPOSTED: “Gold Isn't Backed By Anything”

Posted: 30 Sep 2011 08:56 PM PDT

Bridget Brown a Calgary a reporter is confused.
From Bridget:
"People are selling off gold because it's not backed by anything."
"People are running to the U.S. dollar because it's baked by the Federal Reserve." Enjoy..

~TVR

Peak Gold, easier to model than Peak Oil ? Part II

Posted: 30 Sep 2011 07:30 PM PDT

The Oil Drum

Are Silver and Copper Prices Predicting a Global Recession?

Posted: 30 Sep 2011 06:37 PM PDT

Gold vs paper

Posted: 30 Sep 2011 04:30 PM PDT

Mises.org

Bring back the Gold Standard 1

Posted: 30 Sep 2011 04:30 PM PDT

Ferdinand Lips

The Revisionist Theory and History of Depressions

Posted: 30 Sep 2011 04:00 PM PDT

Gold University

Is Alibaba The Natural Buyer For Yahoo?

Posted: 30 Sep 2011 02:02 PM PDT

By TechCrunch:

By Alexia Tsotsis

Today at the China 2.0 conference at Stanford, Alibaba Groups's Jack Ma replied to a pointed question about buying Yahoo (YHOO) with, "We are very interested in Yahoo. Our Alibaba group is important to Yahoo and Yahoo is important to us … All the serious buyers interested in Yahoo have talked to us."

Those "serious buyers" most likely include Alibaba Group (ALBCF.PK) investor Silver Lake Partners, Microsoft and Andreesen Horowitz, who have all reportedly reached out to Yahoo's board.

Is Ma's interest enough to spark consumer and shareholder interest in Yahoo? "Any and all interest [is] welcome," one shareholder told me, "but Ma has real smarts."

On the surface Ma is certainly the type of CEO that Yahoo needs post-Bartz, diplomatic, cunning, and a man of (relatively) few words. But would the deal make sense financially?

Alibaba Group's recent funding from Silver Lake valued it at $32


Complete Story »

Here is what Bear Stears CEO said 2 days before they went to ZERO.

Posted: 30 Sep 2011 11:11 AM PDT

And the 'People' want Dick Bove to come out and talk? LOL.



Well done Alan Schwartz. Well done.

I also found this today.

Be careful if you are long the MS ticker.

Are Copper And Silver Prices Predicting A Global Recession?

Posted: 30 Sep 2011 11:04 AM PDT

By Chris Vermeulen:

Silver and copper have recently been going through their own private bear markets. Since the open on September 1, silver futures have sold off by more than 25%. During the same time frame, copper futures sold off by around 24%. Both metals are extremely oversold, but lower prices are still possible.

Are the bear markets in copper and silver an attempt to warn market participants that slower economic conditions are ahead? Are equities going to take a huge hit on slower future growth?

The notion that lower copper prices will precede a stock market sell-off is generally an unfounded allegation. Recently Jason Goepfert of SentimentTrader.com produced the following table illustrating the returns of the S&P 500 immediately following a bear market in copper over the past 25 years:

The chart above is additional proof that a massive sell-off in copper does not necessarily have a major impact on the returns


Complete Story »

Physical Silver Shortage to Follow Paper Selloff

Posted: 30 Sep 2011 10:25 AM PDT

From Dr. Jeffrey Lewis:
In less than one week, the price of silver gave up some 9 months of gains in a move from $40 per ounce to $28. The current price for silver, which is the lowest price in 9 months, is sure to create shortages for physical silver.

The physical silver market is very much its own market, one which is dominated by small silver investors and coin collectors. Compared to Wall Street, where margins change in a matter of minutes, and global issues permeate throughout trading floors, the local coin dealer hasn't changed in decades, let alone the past few weeks.

Coin dealers, who are almost always best described as a small business operation, are not often hedged to their exposure. Many who open coin shops realize that the trend is up, and hedging would, over the long haul, be detrimental to potential earnings. Capital appreciation, for many dealers, may have been as profitable in 2010 as selling metals to customers.

Physical Shortages
After a decline equal to the magnitude we saw most recently, a physical shortage is almost guaranteed. Dealers, who have been buying silver throughout the $40 level, are sure to be unwilling to unload at a 30% discount to their average purchase price. The last time dealer could buy so inexpensively was nearly one year ago, when silver broke through the $30 price level at a pace many found to be unbelievable.

Any dealer who is successful in his or her trade surely hasn't had to suffer from volume so poor that coins purchased in 2010 would still be on hand today. More accurately, it is likely that dealers have churned inventories several times in the past 9 months, if not several times in the past month alone.

Supplies have surely shriveled up, as well. Those who hold bullion as an investment, or merely part of a collection, are likely to have heard of silver's performance long before $40 per ounce. Investors who entered the market late into the buying spree surely don't see much sense in selling out now, especially with high sunk costs.

Delay Buying
It should be recommended to anyone who is currently accumulating metals that purchasing silver immediately after a correction is a poor investment decision, especially in physical metals. Dealers, who have long exposure to silver, will surely price in silver's fall into any metals sold immediately after a dip. Weak hands who wish to lock in profits and losses are going to be tough to sell, as well.

Therefore, for investors who want to double down on what is essentially a 9-month discount on silver, it may be best to wait. Those most eager to re-enter will be making what is a practical "donation" to a silver dealer, paying well above market price to cover some of the dealer's cost of business.

Wait for the dust to settle. At less than $30 per ounce, paper silver is cheap, but the real deals won't "trickle down" to physical silver for at least a few weeks.

Read more @ SilverSeek

Don't Panic Over The Precious Metal Tumble

Posted: 30 Sep 2011 10:21 AM PDT

From John Browne of Euro Pacific Capital:
Liquidations. It has been rumored that some major investors, including hedge funds, have liquidated large precious-metal positions in recent weeks. Many of these investors were likely sitting on large gains in gold & silver, but with the broader equities markets taking a tumble, they may have decided to lock in profits to offset losses in other positions.

Recently, as political and banking problems have loomed larger, liquidity has become a primary factor in determining investment decisions. In other words, big investors are just trying to cover their debts instead of investing for the long term.

The Greek Bailout Plan. Many investors seem to have placed great hope in the recently announced Greek bailout plan to solve the sovereign debt crisis, driving down their appetite for gold as a long-term safe haven. This is overly optimistic. An orderly Greek default is not in our future. The German plan is a poor imitation of the Fed's "extend and pretend" policy that was the basis of TARP, also known as the bank bailouts. It is likely that when markets perceive the gaping holes in the plan, fears of a currency crisis will return, and gold will benefit accordingly.

US Dollar Strength. As it has so often in the past, the US dollar has gained strength in the early days of an economic slowdown. This has put downward pressure on the price of precious metals. We believe that dollar strength is a temporary phenomenon, for reasons with which our readers are quite familiar.

Central Bank Intervention. Central bankers have long been embarrassed by the price of gold, which exposes their surreptitious currency debasement. For many years, the central banks of major debtor countries have sought, via IMF intervention under Central Bank Gold Agreements I and II, to magnify any natural market volatility in order to dispel the perception that precious metals can be a superior store of wealth. Although the central banks of surplus nations are accumulating gold, it is possible that the IMF is acting still to magnify any market price volatility.

While some or all of the above factors may have contributed to the recent fall in precious metals prices, investors continue to face the prospect of a currency crisis that will cause gold & silver to soar. Even at $1,600 an ounce, gold is still only at some 64 percent of its all-time 1980 inflation-adjusted high. Readers should consider these factors before selling their holdings of precious metals and capitulating to the eradication of their wealth by central banks.

Only time will tell how far precious metals will fall. But if we are correct and gold reaches into the many thousands of dollars per ounce, our future selves will care little whether we bought at the absolute bottom. We will just take comfort in having bought.

Read more @ GoldSeek.com

This Isn’t 2007. It’s a Mess

Posted: 30 Sep 2011 10:15 AM PDT

Just as Germany approved the revamp of Europe's dedicated bailout fund, the rumours began swirling. Are the Irish printing punts? Are the Germans creating Deutschmark?

Why the pessimism? Because it isn't 2007. Back then, people with just a touch of cynicism and common sense could see something was wrong. It was straight forward to warn people of the impending stock market crash, the financial crisis and economic disaster. Daily Reckoning editors did it every day all around the world.

Today everyone can sense something is wrong - even the Federal Reserve. That makes life difficult for investors. Being ahead of the curve is very difficult when you don't know which way the curve is moving. Inflation or deflation? Dollar rally or collapse? China boom or bust? Sovereign defaults or rescues?

Of course, without government intervention, things would be much clearer. But we don't live in an ideal world. So our bet, as is often the case at the Daily Reckoning, is that we'll have them all. Inflation and deflation. A dollar rally and then collapse. A China boom and then bust. Sovereign rescues and defaults. In other words, we'll have chaos. The real question is how bad that chaos could get. And what to do about it. Dan Denning is answering the second question in his newsletter Australian Wealth Gameplan. That means we'll have to stick with the first for the most part.

The chaos will be very bad.

It won't end in a return to the Stone Age, but it may well be on the scale of the Great Depression. In many nations it already is if you allow for changes in technology, living standards and how things like poverty and unemployment are measured. For example, if you measure unemployment as it was measured in the 1930s, the US wasn't far off the 1930 level just last year. Based on the calculations of Shadowstats.com, it is still trending up.

SGS Alternate Unemployment Rate
U.3 is the government's official rate
U6 is a wider definition of unemployment
SGS is Shadow Government Statistics estimate

It's quite likely that things could get worse than the Great Depression in many nations. That's because debt magnifies risk. To the upside and to the downside. There are limits to the downside though - beyond which the story ends very badly, with default.

This holds true for the overleveraged private and public sectors around the world. In Australia, the public sector isn't overleveraged, but we make up for that by relying on China, where all leverage is public sector in the end. More on that below.

Once debt growth slows and deleveraging begins, so slows the economy and a recession/depression begins.

Governments are struggling to keep the welfare state funded already. And we're not even in a recession ... according to their statistics. What happens when bond markets run dry or interest rates go up? What will happen if welfare cheques are paid for by the central bank creating new money?

It's a pretty miserable scenario. But can it be avoided? Unlikely. Any sort of breakthrough technology that would allow economies to put on a growth spurt would be derided as job destruction by Keynesians. If someone invented the next internet, they would lament the loss of postal sector jobs. If someone invented tooth cleaning chewing gum, they would create a dentist lobby banning it.

That's a bit of a detour though.

Back to the point of funding governments - the only economic entity willing to leverage up during economic downturns. The maths of public debt repayment and default are frightening. The debts of so many nations are too big to be repaid and a default will sink the banking system. The rock and the hard place leave only inflation. Zerohedge explains that 'no government, political system or social regime in the history of mankind ever imploded due to hyperdeflation.'

But while inflation might be the endgame, a lot can happen in the meantime according to three bears. The first is Hugh Hendry, a Scottish fund manager at Eclectica Asset Management:

'We've reached a very rare moment in economic history where the problem is greater than the ability of the politicians to respond. There is no policy prescription that they can offer that will redeem the situation. The redemption will come through the population of Greece and elsewhere throwing the politicians out...'

That solution still leaves a lot of debt to be dealt with though. Hendry's solution? 'Bankruptcy is a solution.'

Over at the BBC, Alessio Rastani who runs the Leading Trader blog, comes up with his medium-term forecast and some advice for listeners:

'It's gonna crash and it's gonna fall pretty hard because markets are ruled right now by fear. Investors and the big money - the smart money - I'm talking about the big funds, the hedge funds, the institutions, they don't buy this rescue plan. They basically know the market is toast. The stock market is finished. The Euro, as far as they are concerned, they don't really care.

'Listen, I would say this to everybody who is watching this: This economic crisis is like a cancer. If you just wait and wait, thinking this is going to go away, just like a cancer, it's going to grow and it's going to be too late. What I would say to everybody is 'get prepared'. This is not a time right now to do wishful thinking that government is going to sort things out. The governments don't rule the world, Goldman Sachs rules the world. Goldman Sachs does not care about this rescue package. Neither do the big funds.

'The first thing people should do is protect their assets. Protect what they have. Because in less than 12 months, my prediction is, the savings of millions of people is going to vanish. And this is just the beginning. So, I would say, be prepared and act now. The biggest risk people can take right now is not acting.'

Last but not least, Marc Faber points out what might be the most important story, explaining why Australia won't be spared the economic troubles this time around:

'In my view, we don't know yet for sure why stocks have been this weak over the last 3-4 months. I think the stock market is a discounting mechanism and particularly here in Asia the weakness in stocks ... has to do with a forthcoming meaningful slowdown in the Chinese economy and disappointing news out of China. If we define a bubble as excessive credit growth and artificially low interest rates, then China has had a gigantic bubble... I think some sectors of the economy will collapse.'

Just remember though, central bankers are unlikely to let the above happen. They will intervene in ever more dangerous ways. That's why the leading Austrian newspaper has the following on its front page: 'Politiker Riskieren Hyperinflation.' It probably doesn't need translating. Over at the Bank of England, former Goldman Sachs banker Ben Broadbent reckons inflation should come second to job creation. Why he thinks inflation creates jobs is a mystery. Anyway, he is setting the scene for stagflation - a combination of high unemployment and high inflation.

How do you invest when expectations are for a complete mixture of inflation and deflation, defaults and booms? One clever option is a balanced portfolio that reweights. We don't mean a portfolio of stocks, but asset classes. To find out which asset classes, click here.

Until next week,

Nickolai Hubble.
The Daily Reckoning Weekend Edition

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Suki Cooper Barclays PM Analyst: Silver has the weakest fundamentals across all the metals

Posted: 30 Sep 2011 10:02 AM PDT

"2015 price target for Gold is $1400."
"Once INVESTMENT demand is out of the equation silver is weak (true Blythe hits it with short selling we know this)....the PHYSICAL demand IS NOT THERE."

Just wondering, whats Barclays SHORT interest concentration...?

Suki, let us know when you are back from Disney Land or when you need a job because if you haven't seen the physical demand for silver in the last 5 days, forget about it.

Click here to see...

Friday ETF Roundup: VXX Surges On End Of Quarter Selling, FXI Falls On Slowdown Fears

Posted: 30 Sep 2011 09:48 AM PDT

By ETF Database:

Global equity markets tanked to end the third quarter as worries over financials dragged down shares across the world. The Dow finished lower by about 2.2% while the broader indexes suffered more severe losses as the S&P 500 fell by 2.5% and the Nasdaq sank by 2.6% for the day. Losses were pretty much throughout all of the sectors although some big cap names in the services space such as Wal-Mart (WMT) and those in the healthcare sector, such as Johnson & Johnson (JNJ) and Merck (MRK), managed to beat out the market on the day. Commodity trading was much more mixed as gold rose by about $5 an ounce and oil plunged, sinking by about 4.2% to finish the quarter. Trading was also pretty brutal in the grains market as soybeans, corn and wheat all finished the day lower by at least 4% with corn and wheat sinking by


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