Gold World News Flash |
- The (In)significance of Money
- Bank of America Drops $5 Debit Card Fee
- Situation is Ultra-bullish for Gold & Silver Bullion and Stocks! What are You Waiting For?
- James Turk - What You Need to Know About Gold Suppression
- KWN Special: Global Policy Makers are Getting Desperate
- Gold Seeker Closing Report: Gold and Silver Fall Almost 1% and 5%
- Brodsky, Fleckenstein at King, and Benko notes support for gold standard
- What A JP Morgan “Mistake” Will Do To The Price of Silver
- Foreign Central Banks Have Left the Building
- Global Markets Plunge With Greek Government on Brink of Collapse
- Gold Price Closed at $1,711 down 0.8%
- Move Your Money or Move Your Currency
- This Is Yet Another Glaring Example Of Why The EU Is A Mind Blowing Failure
- Turmoil at MF Global / Official States Firm Co Mingled Funds / Gold and Silver Decoupled From the Dow
- Gold Bugs Index Closes Nearly Flat on Greek Spitball Big Market Swoon
- Paul Brodsky: Global Policy Makers are Getting Desperate
- Gold Working Towards Bottom of Channel (mid 1600s)
- Ross Beaty: “Silver, the Schizoid Metal
- Guanajauto Mine Diary: A Tour of Great Panther Operations
- Keeping Up With The Korzines In The Kooler: FBI To Investigate MF Global's Theft Of Client Money
- Keeping Up With The Korzines In The Kooler: FBI To Investigate MF Global's Theft Of Client Money
- Italian Bond Spreads Reach Euro-Era High
- The Greco-Franco Bank Run Has Skipped the Pond, Landed in NY/Chicago and Nobody Noticed, Exactly As I Predicted!
- “Allocate 25% to Gold Bullion”, says Faber
- Stocks Tumble As No Hail-Mary Rumor Materializes
- Gold Daily and Silver Weekly Charts - MF Global Is the Tip of a Pyramid of Lies
- Ross Beaty: "Silver, the Schizoid Metal"
- Confidence Killers
- Fleckenstein - One or Two Year End Game for Money Printing
- The Incurable European Mess
| Posted: 01 Nov 2011 07:06 PM PDT Bullion Vault
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| Bank of America Drops $5 Debit Card Fee Posted: 01 Nov 2011 06:43 PM PDT Outrage took over when Bank of America decided to add a monthly fee for customers with a debit card account. The $5 fee was supposed to take effect in January of next year, and it would have been applied to customers with basic checking accounts. In today's economy, it's no wonder banks are starting to find ways to get out of the financial crisis. Instead of charging risky customers even heavier interest rates and fees, Bank of America and a few other large banks decided to try to spread the cost more evenly. Bank of America has already had to deal with multibillion-dollar lawsuits and financial losses, and when they made the announcement, they had to face new challenges as well. When the idea of this new fee surfaced to the public, Bank of America received a lot of backlash from customers. Some got together in Las Angeles and covered Bank of America ATM machines in yellow caution tape and protest signs. One customer got over 200,000 signatures on a petition to urge the company to cancel the fee, and many other customers went as far as switching banks entirely. Thousands of customers spoke their mind in social media, and some went as far as making videos to show their furry. Read more..... 
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| Situation is Ultra-bullish for Gold & Silver Bullion and Stocks! What are You Waiting For? Posted: 01 Nov 2011 06:30 PM PDT The technical situation is ultra-bullish for both gold and gold stocks. Sentiment indicators…continue to show [that] the dollar is poised for a serious decline and*the MACD on the gold chart is giving[B] one of the most powerful buy signals in the history of the bull market. The GDX should reach $75 a share by year-end and g[B]old*should push to new highs in the $2000 area by January of 2012 [while silver] could possibly be the best investment opportunity available to investors for many years to come!*[Let me explain and back up my comments with an array of charts.] [/B][/B]Words: 781 So says Morris Hubbartt ([url]www.SuperForceSignals.com[/url]) in his most recent Weekly Market Update* 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 include...
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| James Turk - What You Need to Know About Gold Suppression Posted: 01 Nov 2011 05:58 PM PDT  With central bank intervention in gold becoming widely accepted as reality around the globe, today King World News interviewed James Turk out of Spain to get his take on central bank interference in the gold market. Turk started by giving a brief lesson on the history of these failed manipulations, "Yeah, it's an important part of monetary history. It (the London Gold Pool) was established in 1961 by central banks around the world in order to try to make the Bretton Woods system, which had been created near the end of the Second World War in 1944, it was trying to make that system work."
This posting includes an audio/video/photo media file: Download Now |
| KWN Special: Global Policy Makers are Getting Desperate Posted: 01 Nov 2011 04:02 PM PDT  With gold rallying $40 off the lows, King World News spoke once again with the firm that is calling for $10,000 gold. Paul Brodsky, who co-founded QB Asset Management Company, had this to say about the volatility and what he is looking for going forward in terms of money printing, "Well, certainly today's action, with Papandreou posing the referendum to the Greek people, brings QE further down along the timeline. We think central banks are keeping the banking system solvent even though French and German banks are getting weak. We think, clearly, central banks are going to have to move more quickly than they thought they would have to. So we expect QE3 and whatever else might follow on from that to be coming sooner than we did yesterday, that's for sure."
This posting includes an audio/video/photo media file: Download Now |
| Gold Seeker Closing Report: Gold and Silver Fall Almost 1% and 5% Posted: 01 Nov 2011 04:00 PM PDT Gold fell $43.02 to as low as $1681.68 by a little after 9AM, but it then rallied back higher for most of the rest of trade and ended with a loss of just 0.92%. Silver dropped to as low as $32.12 before it rebounded back up to $33.565 at about 10:45, but it then fell back off a bit in late trade and ended with a loss of 4.58%. Both metals are trading nicely higher in afterhours access trade.
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| Brodsky, Fleckenstein at King, and Benko notes support for gold standard Posted: 01 Nov 2011 03:01 PM PDT 11p ET Tuesday, November 1, 2011 Dear Friend of GATA and Gold: The quickest of summaries tonight as we in Connecticut cling to partial electricity. ... King World News has an interview with QB Asset Management's Paul Brodsky, who thinks that the prospects of a referendum in Greece on whether to repay some of the country's unpayable debt will hasten more "quantitative easing" around the world and push precious metals higher: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/2_KW... King World News also interviews fund manager Bill Fleckenstein, who contemplates the end of the fiat money system: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/1_Fl... Meanwhile at Forbes, Ralph Benko of The Gold Standard Now Project takes note of a Rasmussen poll that finds strong support in the United States for returning to a gold standard to curtail the power of political and financial elites: http://www.forbes.com/sites/ralphbenko/2011/10/31/october-surprise-can-g... And we thought that most Americans didn't even know how to spell "G-O-L-D," just "Cash for Gold." And Greenlight Capital's David Einhorn opines that shares of gold mining companies are dramatically undervalued relative to the gold price: http://www.bloomberg.com/news/2011-11-01/greenlight-s-einhorn-bets-miner... Did the lights just flicker again? 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 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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| What A JP Morgan “Mistake” Will Do To The Price of Silver Posted: 01 Nov 2011 02:49 PM PDT by Bix Weir, RoadToRoota.com: So as we sit here pondering the myriad of Global Monetary Implosions happening as we speak one thing always seems to come back to the forefront.. What happens to the price of SILVER if JP Morgan is caught up in all this mayhem and goes down? Zerohedge.com just posted a very plausible scenario where the CDS's that are imploding in Europe could easily destroy the top 5 US banks that trade 97% of these toxic derivatives. Clearly JP Morgan is in the cross-hairs of the current derivative implosions…but what does that mean for SILVER? A LOT! I believe that JPM is the ONLY large seller of silver left on the COMEX and LBM. They are also in charge of the "silver short hot potato" that has destroyed many companies that tried to control the silver bull including Bear Stearns, AIG, Drexal Burnham and more going back decades. No one in their right mind would take the short side of silver unless they had to defend "the system" which is precisely what JPM is trying to do. So while JPM fights to keep the price of silver down with massive derivative shorts their multi-trillion dollar CDS book is blowing up! JPM is on the edge of the cliff and will drag everyone to the depths of the abyss as they go down. Remember…if JPM is destroyed then there will be NO SELLERS left in the silver pits. NOT ONE SELLER! None at $100 None at $500 None at $1,000 NONE! Of course the global market for silver will shut down before the EXCHANGES are exposed as the corrupt entities that they are. Watch for claims of "FORCE MAJEURE" to be used in their defense. Very soon we will know the REAL "Fair Market Value" of silver and you can bet it will start with 4 DIGITS! The end game is upon us so stock up on all the physical silver you can and trade every single electronic blip and every scrap of paper money for SOMETHING REAL…. LIKE SILVER!!! May the Road you choose be the Right Road – Bix Visit Bix's Site @ RoadToRoota.com
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| Foreign Central Banks Have Left the Building Posted: 01 Nov 2011 02:15 PM PDT Courtesy of Lee Adler of the Wall Street Examiner Tracking foreign central bank (FCB) holdings of US Treasury and Agency (Fannie, Freddie, and minor government agencies) paper has been one of the most important lines of inquiry in my analysis of market liquidity for the past 9 years. This information is available virtually in real time each week in the Fed's weekly H41 report. It tells us just how much the FCBs have been subsidizing the US financial markets.Their purchases of government paper were not only crucial to funding the US government's spending week in and week out, but to the pricing of the bond market as a whole, and to the US financial markets generally. By typically absorbing the equivalent of 25% of the new Treasury issuance week in and week out for years, the FCBs provided a huge subsidy for the US financial markets, pushing Treasury yields down to artificially low levels, removing competitive pricing pressures for other assets, and pumping excess liquidity into the US system. That action artificially pushed up the prices, not just of Treasuries, but of all assets, especially equities and, for a while, housing prices. All that began to change a little more than a year ago when FCBs began to gradually reduce their rate of purchases. The change was so subtle that the markets hardly noticed. But the Fed noticed, and it was forced to step in with two rounds of quantitative easing (QE), or money printing, to help absorb the Treasury supply and make up for the reduction in FCB purchases of Treasuries and Agencies. With reduced FCB subsidies, the Fed had no choice. Had it not stepped in, both the Treasury market and the stock market might have collapsed. As it happened, the European meltdown provided a new subsidy source for Treasury paper, as capital flight from Europe boosted the Treasury market, so that the absence of the FCBs again was not missed. Then about 7 weeks ago, the FCBs not only slowed their purchase rate of Treasuries and Agencies, they began selling outright, and have continued to do so at unprecedented levels. This is a whole new ballgame, where, instead of helping to absorb new supply, the FCBs are actually adding to that supply by dumping their own holdings into the market. This would present a crisis for the US market which the Fed would be forced to address were it not for the renewed meltdown in Europe, and now the situation with the collapse of MoFo Global. Once again, the Treasury market gets the benefit of the buildup of fear. The panic is leading to massive buying of Treasuries. The fact that the FCBs are absent hasn't been noticed. But the underlying problem of the FCBs no longer subsidizing the US market remains, and once the panic into Treasuries subsides, the pus filled boil of the Treasury market will explode onto the mirror of the world market. Without FCB support, the US Treasury and equities market will both be in big trouble at some point in the not too distant future. Here's the chart along with a brief comment that I wrote about it in this week's Fed report update. This chart remains an ominous indicator.
Stay up to date with the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, and get regular updates on the US housing market in the Wall Professional Edition, Money Liquidity, and Real Estate Package. Click this link to try WSE's Professional Edition risk free for 30 days!
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| Global Markets Plunge With Greek Government on Brink of Collapse Posted: 01 Nov 2011 02:03 PM PDT Global markets plunged as the Greek government teetered on the brink of collapse, while the country's Prime Minister said that his controversial referendum will offer a "clear mandate" on whether Greece stays in the EU. by Louise Armitstead, Telegraph.co.uk:
European stockmarkets led a global rout in the wake of Greece's shock decision to call a referendum on the bail-out agreed last Wednesday. Credit rating agencies and bondholders said the risk of a disorderly Greek default had soared, threatening the agreements made in Brussels on bank re-capitalisations and bond haircuts. A crisis cabinet meeting was called in Athens on Tuesday amid demands for Prime Minister George Papandreou's resignation. Opponents of the Greek premier derided his calling a referendum as an "act of unprecedented irresponsibility". Mr Papandreou said his government would face a vote of confidence on Friday night.
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| Gold Price Closed at $1,711 down 0.8% Posted: 01 Nov 2011 01:50 PM PDT Gold Price Close Today : 1,711.00 Change : -13.20 or -0.8% Silver Price Close Today : 3272.00 Change : -162.00 or -5.0% Platinum Price Close Today : 1,578.80 Change : -18.80 or -1.2% Palladium Price Close Today : 634.90 Change : -16.15 or -2.5% Gold Silver Ratio Today : 52.29 Change : 2.07 or 1.04% Dow Industrial : 11,955.01 Change : -276.10 or -2.3% US Dollar Index : 76.49 Change : 1.41 or 1.8% Franklin Sanders has not published any commentary today, he will be away until 8th November. 
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| Move Your Money or Move Your Currency Posted: 01 Nov 2011 01:49 PM PDT from WealthCycles:
With all the anti-Wall Street fervor going around, this Saturday is Bank Transfer Day—a day when people are going to transfer their But the problem isn't simply that banks are too-big-to-fail or that there are a few evil bankers at the top of these big corporations—the real problem is the fractional reserve monetary system, and the fact that our economic system is predicated on an imaginary document called a dollar. Credit unions still have the ability to create new currency by making loans.
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| This Is Yet Another Glaring Example Of Why The EU Is A Mind Blowing Failure Posted: 01 Nov 2011 01:46 PM PDT from The Economic Collapse Blog:
The debt crisis in Europe just seems to get worse with each passing day, and it is yet another glaring example of why the EU is a mind blowing failure. The EU is made up of 27 nations that all have their own economic policies, and 17 of those nations are trying to use the euro as a common currency. But when you have 27 different governments pulling in different directions, it is inevitable that there are going to be major problems. The stunt that Greek Prime Minister George Papandreou just pulled is a perfect example of the nightmare that the EU has become. European officials worked really hard to pull together a deal to address the debt crisis (of course the deal was a total mess, but that is another matter), and a couple of days later Papandreou decides that Greece should hold a national referendum on it. It is so bizarre that it almost defies words. But that is what happens in the EU. Someone else always wants to have a say. Someone else always wants to throw a fly into the ointment. Someone else always want to throw in their two cents. The EU is a bureaucratic nightmare and this latest episode is yet another example of that fact. First the politicians in Europe come up with an idiotic plan that is going to make the financial crisis much worse, then Papandreou comes forward and pulls a stunt that shatters what little confidence the financial markets still had in Greece. That is why the EU should break up. It is a total failure and it is time that we all admitted it. Read More @ TheEconomicCollapseBlog.com
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| Posted: 01 Nov 2011 12:09 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: Turmoil continues in the aftermath of the MF Global Bankruptcy. An official from the firm today confirmed that the company co mingled customer funds with their own. Many will be afraid to invest funds in the stock market for fear that the management at these financial giants will steal from them. We will discuss this in detail in the body of my commentary: (courtesy Associated Press) Read More @ HarveyOrgan.Blogspot.com
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| Gold Bugs Index Closes Nearly Flat on Greek Spitball Big Market Swoon Posted: 01 Nov 2011 12:08 PM PDT HOUSTON -- Chart Book Notes for Tuesday, November 01, 2011. Gold and silver both sold off for a second day as Greece threw a spitball at the E.U. umpires with plans to hold a national referendum on the austerity and financing package engineered to keep Greece part of the European Union. However, unlike yesterday's sell-down by gold, which was a knee jerk reaction to Japanese intervention in currency markets and possibly some scrambling and liquidating by traders and counterparties of Jon Corzine's MF Global, which was shut out of trading by the CME as it filed for bankruptcy … unlike yesterday, gold sold off initially but clawed its way back up to nearly flat by the end of trading Tuesday.
Continued… Perhaps an important "tell," we note for today's trading that the AMEX Gold Bugs Index (HUI) managed to recover back to near flat after a sizable gap lower to begin the day. This, as the Big Markets sold off hard on the Greek surprise announcement and uncertainty surrounding the future of the Euro currency. (Dow down 297 points to close at 11,657.96). (HUI, 30-minute increments, 6 days) "A big gap down that does not hold, is not an issue to be sold," an old friend and mentor once tried to teach us – meaning large gaps that end up recovering back to the starting point or higher are a sign the issue or market "wants" to trade in the opposite direction of the gap. The event-driven action by gold and silver is understandable given the blitz of unusual news Monday and Tuesday, but we take some comfort in the strength, or rather the resilience of the HUI today. As Vultures (Got Gold Report Subscribers) already know, we are watching for opportunity in our "blue panic targets" for the small resource companies we have chosen to game here at Got Gold Report. As of Tuesday, two of our Vulture Bargain Issues (VBs) or Vulture Bargain Candidates of Interest (VBCIs) are either in the blue panic targets or very near them. Currently we have tracking and gaming charts for 34 small resource companies in the Vulture Bargain Hunting universe, all of which arrived there as a Guru-chosen firm. We track and keep up with about 45 individual resource companies including our VB and VBCI issues. Vulture Bargain Hunting is not for everyone. It is for people who want to risk a small amount of capital at times when hardly anyone wants the issues we game. Vultures provide liquidity after stocks have been mistreated by a panicked and scared market, then hang on until the distortions that caused the anomalous selloff recede and the issues regain their former 'glory.' To subscribe to the Got Gold Report, which includes our Vulture Bargain Hunting offerings, click on the "GGR Subscribe" link above and to the right. Our next VB Update Roundup is scheduled for November 7 or sooner. That is all for now, but there is more to come.
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| Paul Brodsky: Global Policy Makers are Getting Desperate Posted: 01 Nov 2011 11:52 AM PDT from King World News:
Paul Brodsky continues: Read More @ KingWorldNews.com
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| Gold Working Towards Bottom of Channel (mid 1600s) Posted: 01 Nov 2011 11:40 AM PDT courtesy of DailyFX.com November 01, 2011 07:44 AM 300 Minute Bars Prepared by Jamie Saettele, CMT I maintain that the rally from the September low is corrective and will be retraced. Gold has reversed from channel resistance which is defended by the 100% extension of the rally from the low at1750. I am cautiously bearish against 1752.45. Trend Strength (M,W,D) – 1, 0, 1 Latest Video Weekly Forecast COT...
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| Ross Beaty: “Silver, the Schizoid Metal Posted: 01 Nov 2011 11:01 AM PDT www.caseyresearch.com/editorial.php?page=articles/ross-beaty-silver-schizoid-metal&ppref=TBP419VI1111A Ross Beaty, executive chairman of Alterra Power and serially successful mine finder, talks at the Casey/Sprott Summit When Money Dies about the differences between gold and silver, and why the silver price has gone up so much.
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| Guanajauto Mine Diary: A Tour of Great Panther Operations Posted: 01 Nov 2011 10:50 AM PDT Written by Brian Boutilier
Bullion Bulls Canada 1 Nov 2011 My tour of the operations for Great Panther Silver (TSX: GPR) and Endeavour Silver (TSX: EDR) in Guanajauto, Mexico (which I had the good fortune of attending with my wife, Susan) is now history. There is much to report. I was happy to muck around the mines with 12 of the 25 folks in a larger group consisting of investment bankers, analysts and writers. Some of these intrepid souls are quicker writers than I, and have already published their own accounts of this event. I would like to begin by offering our heart-felt thanks to the respective management and staffs of Endeavor and Great Panther. They were kind, generous and very approachable. While courtesy, safety and community relations were a constant, I found these two operations strikingly different. From my point of view, the ore bodies of the respective mines set the tone. So as to understand the challenge of underground mining, I'd like you to visualize descending these mines with me. As something which is still new to me, it was a visceral, confusing, yet exciting experience. In this article, I will focus on Great Panthers underground mine, and follow up with Endeavor's operations in another installment (and those wanting even more detail can visit our forum). http://www.bullionbullscanada.com/index.php?option=com_kunena&Itemid=122&func=view&catid=10&id=248 Our morning started with the "meet and greet" with Great Panther's CEO Robert Archer, and Robert Brown (VP Exploration) along with the Mine and Safety Managers. We were briefed on operations, underground exploration, some surface exploration annual production and efficiency data. They showed us what they had accomplished, and were honest about operational challenges they faced. We were informed that our tour would only extend to a few of the more recent areas of exploration/development for the Guanajauto Mine Complex, We would see the Cata mill, and the surface drilling ongoing at San Ignacio, and the core shack. We would not visit Topia operations. Importantly there were coffee and stacks. The coffee was good. In Guanajuato they have an SGS (i.e. their own "lab") with 24-hour turnover assays generated by the underground exploration. Outside of that, they contract with independent labs for surface exploration, and for QA/QI redundancy for their underground resources. Separate, and in addition to this complex, are the Topia mine/mill with 270tpd capacity and boasting a 19M oz resource, The Topia mill is currently working at 200tpd at a cost of 14-15$/Oz. The high cost is due to "community outreach", a program where Great Panther purchases ore from local miners at a premium. They combine this with their own ore production. Great Panthers Cata plant capacity is an impressive 1200 tpd with recovery rates of 88% for Au and 91% for Ag. Current mine production is approximately 600 tpd. The cost of production is less that 8$/Oz Ag equivalents. This leaves the Company with significant excess capacity. It has increased underground exploration in the main complex, and workers are stoping and ramping for more ore access. To get a feel for that volume shortfall, picture an additional 600 one-ton capacity carts or several mucking vehicles with multi-ton capacity being hauled up from depths of up to 500 meters every day. Some of this is over uneven terrain, which at times can be knee-deep with water. While 500 meters is not considered "deep" using current technology, even with modern equipment this is still difficult in the narrow, uneven or steep areas of this older mine. Given this, it seems unlikely they could efficiently bridge this throughput shortfall with the Main Complex alone. While there is an ore production shortfall, there is definitely no paucity of ore, There are many active areas of underground exploration including Guanjautito Deep, Valenciana Deep, Cata Deep, Los Posos and Promontorio. Resource expansion will be generated from underground drilling in these areas. The Guanajuato mines currently account for 3 million oz's of silver ("Proven and Probable"), 3.7M ("Measured and Indicated") and a 726K "Inferred" resource. These numbers can and will grow significantly. All of the underground and surface resources at Topia, San Ignacio and the Guanajuato together account for 30M oz. This overall number will also expand going forward with the additional surface exploration. This means that mine life is growing faster than the production rate.
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| Posted: 01 Nov 2011 09:17 AM PDT It is now 100% safe to say that the 100 basis point "springing rate clause" in the 6.25% bond indenture (that never saw even one coupon payment before the company filed) should Corzine join the White House will never be triggered. As NBC reports, Federal prosecutors and the FBI are set to join the inquiry into what happened to hundreds of millions of dollars invested with a securities firm headed by former New Jersey Gov. Jon Corzine, officials familiar with the case told NBC New York. The Justice Department involvement comes as the Securities and Exchange Commission and the Commodities Future Trading Commission have said their own inquiry is underway into the collapse of the brokerage firm, MF Global Holdings Ltd. The head of the Chicago Mercantile exchange said Tuesday that the firm broke rules requiring it to keep clients' money and company funds in separate accounts. U.S. Attorney Preet Bharara declined to comment Tuesday as did DOJ spokesmen in New York and Washington. An FBI spokesman also declined to comment.
Needless to say, MTV already has all worldwide licensing rights on Keeping Up With The Korzines, irrelevant of what state or federal penitentiary they have to be shot at.
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| Keeping Up With The Korzines In The Kooler: FBI To Investigate MF Global's Theft Of Client Money Posted: 01 Nov 2011 09:17 AM PDT
It is now 100% safe to say that the 100 basis point "springing rate clause" in the 6.25% bond indenture (that never saw even one coupon payment before the company filed) should Corzine join the White House will never be triggered. As NBC reports, Federal prosecutors and the FBI are set to join the inquiry into what happened to hundreds of millions of dollars invested with a securities firm headed by former New Jersey Gov. Jon Corzine, officials familiar with the case told NBC New York. The Justice Department involvement comes as the Securities and Exchange Commission and the Commodities Future Trading Commission have said their own inquiry is underway into the collapse of the brokerage firm, MF Global Holdings Ltd. The head of the Chicago Mercantile exchange said Tuesday that the firm broke rules requiring it to keep clients' money and company funds in separate accounts. U.S. Attorney Preet Bharara declined to comment Tuesday as did DOJ spokesmen in New York and Washington. An FBI spokesman also declined to comment.
Needless to say, MTV already has all worldwide licensing rights on Keeping Up With The Korzines, irrelevant of what state or federal penitentiary they have to be shot at.
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| Italian Bond Spreads Reach Euro-Era High Posted: 01 Nov 2011 08:57 AM PDT The premium Italy pays to borrow over Germany rose to a fresh euro-era high on Tuesday, leaping over a critical level that has previously exacerbated crises in Portugal and Ireland. Despite the European Central Bank on Tuesday making its second biggest purchases of Italian government bonds since it started buying the country's debt in early August, Italian 10-year bond yield spreads over Germany soared over 450 basis points, a key trigger point that could require bond investors to stump up more cash when using them as collateral. Investors fretted that the latest eurozone deal was coming undone after Greece called a referendum on the measure, forcing 10-year spreads over Germany to 455bp at one point. Italian 10-year yields also jumped to 6.33 per cent, close to euro-era highs, at one stage. The sharp moves higher in Italian yields, which have an inverse relationship with prices, came despite estimates among traders that the ECB had bought about €5bn in Italian government bonds. Traders said it was an inauspicious start for new ECB president Mario Draghi, the former governor of the Bank of Italy, on his first day in office. Traders said ECB intervention usually saw yields end the day lower. "It is kind of ironic: it is Draghi's first day. His first decision is 'yes, buy Italian bonds'," said Gary Jenkins, head of fixed income at Evolution Securities. He added that the move to make Europe's rescue fund, the European financial stability facility, issue insurance on new Italian and Spanish debt was deterring buyers: "They have created a situation where the only people buying Italian debt are themselves." A trader of Italian government bonds said: "It was meltdown at one point before the ECB came in. There were no prices in Italian government bonds. That is almost unheard of in a big market like Italy. There were just no buyers and therefore no prices." Clearing houses can impose margin payments when a spread is over 450bp over a basket of triple-A rated government debt. When they have done so previously in the eurozone crisis the countries affected have subsequently had to seek a bail-out. LCH Clearnet is responsible for setting margin requirements for most countries in the eurozone, although in the case of Italy it is CC&G, the Italian clearing house. In the past, additional initial margin charges were applied by LCH Clearnet on Ireland and Portugal only when their yield spreads had significantly risen above 450bp and remained so for almost two weeks. Italian yields have also moved away from those of Spain, the other peripheral eurozone country yet to receive an international bail-out. The premium Rome pays to borrow over Madrid hit 70bp at one point on Tuesday, its highest level in the euro-era and up from 40bp only a few days ago. French 10-year spreads over Germany also hit a euro-era high of 122bp. German 10 year Bunds fell 26bp to 1.75 per cent and UK 10-year gilts fell 24bp to 2.19 per cent, some of the biggest daily moves in these markets this year, as investors sought havens. Source: FT
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| Posted: 01 Nov 2011 08:39 AM PDT
Four months ago, I posted to seminal pieces, namely The Anatomy Of A European Bank Run: Look At The Banking Situation BEFORE The Run Occurs!and The Fuel Behind Institutional "Runs on the Bank" Burns Through Europe, Lehman-Style! that As excerpted: Traditional views on this "bank run model" #f2f2f2; text-align: left; width: 500px; margin: 0px;"> This phenomena essentially discredits the Asset/liability mismatch can, at So, armed with the cause, effect, and path of bank runs coming from ... So, while most of the media has This is because in dysfunctional Gross profit is simply total inflow minus total outflow. As fixed income guru Moorad Choudhry noted in the "Repo Handbook"
As can be seen from MF Global's earnings statement, MF was indeed counting on the EFSF guarantee to ensure that this would be the case:
On top of that — just in case an So what on earth went wrong? Italy and Which leaves only the If repo contracts were completely reneged upon, this Indeed as Reuters reported on Monday:
Update 9.30pm GMT: As So there you go. The MF Global collapse was fueled (ironically) by ZIRP as clearly predicted here The Ironic, Prophetic Nature of the MF Global Bankruptcy Filing and It's Potential Ramifications, and the straw that broke the camel'sman's back was an old fashioned institutional bank run, as was clearly anticipated many months ago here at BoomBustBlog. Subscribers, this distrust, collateral calling, back stabbing bank
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| “Allocate 25% to Gold Bullion”, says Faber Posted: 01 Nov 2011 08:33 AM PDT A RENOWNED contrarian investor has said investors should allocate a quarter of their portfolios to Gold Bullion. Unprecedented levels of borrowing will leave governments with no choice but to monetize their debts – in effect printing money – according to Marc Faber, publisher of the Gloom Boom & Doom Report. "The best thing an individual investor can do right now is to hold 25% of his assets in equities, 25% in real estate, 25% in gold, and 25% in cash," said Faber last week. "If equities, real estate, or gold drop another 10% to 20%, put more cash in." Although he remains bullish on Gold Bullion, Faber warned last week that "we are still in a correction mode" following the start of September when the Gold Price "peaked out" at $1920 per ounce. "Everybody should accumulate some gold over time. I'm not saying that today is the best buying point…[but] I would recommend people to buy every month some gold forever." Faber has previously urged US investors to store their Gold Bullion overseas. Earlier this month, Faber was asked if he believes Gold Bullion is "The Ultimate Ponzi Scheme". Gold Bullion "is not a liability of someone else, you really own it," replied Faber. "Its quantity cannot be increased at the same rate as you can print money." Faber added that he believes the US Dollar will be substantially weakened as the US authorities respond to rising public debt levels. "We went into this crisis with an unprecedented debt level," he said. "If you compare, for instance, the depression years, in the depression years we didn't have credit cards, and we didn't have unfunded liabilities from Social Security, from Medicare, from Medicaid. "These are all debts that will come due, that will have to be paid by the government…in ten years' time I would estimate that between 30% to 50% of tax revenues will be spent on the interest payments on the government debt and that will then prove to be a huge problem and necessitate the monetization, essentially, of the debt and that will lead to a weak Dollar." Here in the UK, a number of fund managers are maintaining an exposure to Gold Bullion as a form of insurance, according to a Citywire report. For example, Troy Asset Management's Trojan Fund – which features as one of four funds Citywire cites as having "the best record of risk-adjusted returns" – has an 18% allocation to Gold Bullion. "Gold has always had intrinsic value whereas paper currencies have come and gone, like blossom in the spring," said Trojan's Sebastian Lyon back in June this year. "Back in 1919, a £20 note could have been exchanged for 20 gold sovereigns. Now those sovereigns are worth £5,000. You would have been a lot better holding your money in gold than in £20 notes." Gold Bullion is "the best insurance policy we can invest in at the moment," adds Jupiter Assset Management's Algy Smith Maxwell, whose Merlin Balanced Portfolio has a 7% allocation to gold. "Gold is a significant exposure as we believe there are enough worries in the world for it to continue to be a safe haven." Source: BullionVault
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| Stocks Tumble As No Hail-Mary Rumor Materializes Posted: 01 Nov 2011 08:26 AM PDT
With the S&P closing -2.5% led by another financials sell-off (-4.3%), the long-hoped for late-day-rumor failed to appear and save the knife-catchers. The major credit indices modestly outperformed equities today although the after-hours (Greek govt is not collapsing) rally-monkey dragged ES (up to VWAP) closer to credit's performance as stocks closed back to 10/21 levels while credit held more in the 10/24 region.
HY underperformed IG and saw its curve flatten significantly at the front-end - significantly negative as both underperformed intrinsics. IG (now 12bps wider from Friday's close) has seen intrinsics underperforming - especially financials and high beta - as we suspect managers are looking to simply derisk the more worrisome credits than overlay any more broad (and basis ridden) index hedge for now. For some context, financials were horrible in credit and equities today. MS +41bps and -7.6%, GS +18bps and -5.5%, and BAC +20bps and -5.6% as secondary bonds saw considerable net selling in Barclays, SocGen, BofA, and major US insurers. We wonder if the long-suggested underweight US Insurer credit, overweight IG credit trade is being dusted off once again as a low cost long vol trade with decent beta to HY underperformance. HY and HYG stayed very much in sync today - suggesting little technical fund flow - though secondary HY bond trading was more active than we expected. Is the hot potato being passed on to retail? Another huge day in the TSY complex saw the 30Y rally around 15bps (back under 3%), 10Y drop back under 2% and major flattening continue as 2s10s30s collapses further. Almost the entire sell-off of October has now been retraced - especially in shorter-dated maturities.
FX markets were dominated by EUR's referendum-on / referendum-off volatility as the dollar maintained its strength which was ignored by Gold which managed to rally while commodities and silver generally lost ground today. Implied Vol and correlation spiked as macro protection was bid in equity markets but notably, secondary bonds and CDS saw major regions of net-selling as opposed to blanket protection demand - suggesting credit has reached its limit on second-guessing and is derisking at the individual level (as opposed to macro hedging). Charts: Bloomberg
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| Gold Daily and Silver Weekly Charts - MF Global Is the Tip of a Pyramid of Lies Posted: 01 Nov 2011 08:17 AM PDT |
| Ross Beaty: "Silver, the Schizoid Metal" Posted: 01 Nov 2011 07:56 AM PDT Ross Beaty, executive chairman of Alterra Power and serially successful mine finder, talks at the Casey/Sprott Summit When Money Dies about the differences between gold and silver, and why the silver price has gone up so much.
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| Posted: 01 Nov 2011 07:41 AM PDT Dave Gonigam – November 1, 2011
After the U.S. close on Monday, Greek Prime Minister George Papandreou announced there would be a nationwide referendum on the bailout plan that brought the markets so much cheer last Thursday. No date for the vote has been set… but January appears the most likely possibility.  "I know it's a political stunt," Addison jotted this morning moments before jetting off on a critical Project X task, "but I think the referendum is a good idea." "Maybe the people will vote to leave the euro… not intentionally, but by voting down austerity, they'll seal their own fate. Power to the people!"
With illusions now shattered, we inspect the broken pieces, carefully…
Not only did MF Global make bad bets on eurozone government debt in a failed attempt to goose profits… it was mixing up its own money with that of its customers. "It's kind of considered the third rail of the brokerage industry," says Stanford business professor Darrell Duffie, "that when you're holding your customers' funds in their names, you don't touch them — even in an emergency situation when you're running short of cash." In addition to being bad business practice, it also violates the rules of the exchange where MF Global plied its trade. "While we are unable to determine the precise scope of the firm's violation at this time," says CME Group CEO Craig Donohue, "we are investigating the circumstances of the firm's failure." Hundreds of millions of dollars may be missing from client accounts, Bloomberg reports. In theory, the New York Federal Reserve should have been minding the store, since MF Global was one of 20 "primary dealers" who show up at every Treasury auction to maintain an orderly market. In practice, however, "the bankruptcy does raise questions," Reuters reports, "about how the Fed picks the primary dealers — especially since MF Global was one of four firms added to the ranks after new, more-stringent requirements were put in effect in 2010." [Ed. Note: That sound you hear in the distance? It's confidence evaporating from markets everywhere. What good are government promises when the assurances of eurozone leaders about Greece fall apart in only three trading days? What good are Wall Street's promises when one of its marquee firms gambles with its clients' money... and without its clients' knowledge? Chances are you're already a paying Agora Financial customer because you recognize you can't count on government or the Street to take care of your future. But with this one-two punch of news today, the reality is dawning on more and more people... shifting the investment landscape yet again. So it's with added urgency that Addison climbed aboard an airplane this morning to wrap up a key element of Project X — the unprecedented venture he's discussed so much in recent days. We're still not in a position to completely lift the veil. For now, suffice it to say it will deliver a solution set that no email, newsletter, trading service, book or documentary can. We'll reveal more on Thursday... but only to folks who express their interest by signing up here. So far, 24,967 have done so. If you don't sign up, you'll hear nothing more about Project X after this week.]
"A bailout," he says in his first video briefing for our readers, "is just a transfer of the burden from government balance sheets and bank balance sheets onto the middle class. The middle class always gets screwed in all these bailouts." And not just in Europe. Watch out, Michael says, for the Federal Reserve meeting today and tomorrow — and the prospect of more "quantitative easing." "The answer to everything in a world run by fiat currencies and central bankers is to print more money. We're going to counterfeit hundreds of billions worth of new dollars in the guise of saving the country, but really saving the banks. It's all about the banks." What's your best defense? Listen below…  Watch this space for details about Mr. Pento's new publication, Survive & Thrive.
The number was lower than the "expert consensus"… but the internals don't look horrible. New orders are up for the first time in four months. And the index of prices manufacturers pay for supplies is down to its lowest reading in 2½ years.
"It's more than Nabors earned in the third quarter ($76 million). And it's a lot more than Nabors shareholders made. The stock is down 40% over the last five years, and up 11% for the last 10." "I know complaints about exec pay are old and common, but things are getting ridiculous now, especially given the economic times and paltry returns shareholders have earned in many stocks. Deciding corporate pay falls to the board, which is often made up of cronies and not truly representatives of shareholder interests." "I often say the most important statement to look at before you invest in a company is not the cash flow statement or balance sheet. It's the proxy statement. See who owns the company, what the incentives are and who gets paid what. In Capital & Crisis, this is a key part of our investing system (it's the 'O' in 'CODE')." "By contrast, we own stuff in C&C with owner-managers. In one recent pick, the management team takes no salary and gets paid only from dividends — just like shareholders. And in my latest pick, the board and management team own 43% of the company and put in hundreds of millions of dollars of fresh cash in the company." "The longer I invest, the more I think these considerations are critical to long-term investing success." For access to all of Chris' Capital & Crisis picks, look here.
He points to a new Rasmussen poll that shows 44% of likely voters supporting a return to a gold standard, with 28% opposed. Even more revealing: "If the public knew that it would 'dramatically reduce the powers of bankers and the political class to steer the economy' support goes up to 57%. Opposition drops to 19%." And that majority support cuts across all age groups, races and genders. "Reducing the power of bankers and the political class — along with gold's empirical record of turbocharging job creation and economic growth — is core for gold's proponents," Benko writes at Forbes.com. "Thus, that inevitably will become public knowledge and make gold a potentially huge electoral asset." "If the candidates take notice, Scott Rasmussen, bless his subversive little heart, may have changed the course of this race…and of history. Gold presents as the most powerful unexploited economic issue waiting to enter, and alter, this presidential election cycle."
"Our parents, some of whom grew up during the Great Depression, had to suffer and scrimp in order to take care of us while we are growing up, and what did we do to future generations? Gave them a life of endless poverty and big government breathing down their necks so that we could have it easy as we sailed through early adulthood." "All I can say is that the first boomer that opens his mouth about how tough they have it now will get an earful from me of just how lazy, irresponsible and stupid that the average boomer is for listening to the siren call of big government." "I'm taking full-time care of my aging mother right now, but as soon as she passes on, you better believe that I'm getting out of this country just as fast as I can."
"My apologies to this esteemed group for sleeping at the switch, while worrying about muscle cars, back seats and corner lemonade stands when it all went wrong. How self-absorbed of an early teenager to not be focusing his attention on our government's monetary policy and standards." "On the other hand, at 14, I and most of my friends had paper routes. We rose at 5, rolled and banded them in the living room, slung the two-bagger over our shoulders and climbed aboard our single-speed bike to get 'em out on time. We spent evenings collecting and ate the losses when the deadbeats didn't pay." "We learned that if you put the paper in the right spot, kept it dry and wore a smile when you came to call, excellent customer satisfaction was rewarded with a better income. When our driver's license provided our right to passage, it was on to the next job, and many of us continue to work until this day. It's who we are. Fast-forward a generation and it's a different picture." "You see, we're not whining that we need the government to take care of us. Means testing is already part of the modern Social Security mechanism. We just want two things: 1) Don't steal what we already have (confiscation or inflation), 2) Honor the safety net for those whose planning went awry (or failed to plan)."
And the dimmer lights are buying it." The 5: Hear, hear. Pointing fingers might feel good, but it doesn't do a thing to secure your wealth now… or to build it for your retirement… or to secure the future for your heirs. Which brings us back to Project X — the ultimate "self-help" resource for your money. It's six years in the making… going all the way back to an idea published in Empire of Debt… and it's had the input of no fewer than 27 people — including Michael Pento and Chris Mayer, whom you've heard from in this issue. As of lunchtime today, Addison is in a TV studio in Florida, cameras rolling, as the project nears its most critical stage… which is where you come in. You still have a chance to offer your voice on the direction you want Project X to take… but time's a-wasting. If you want to continue to receive updates on the project after midnight this Thursday, please sign up here. There's absolutely no obligation, but signing up is the only way to ensure you'll remain in the loop. Regards, Dave Gonigam P.S. Special to Reserve members: There's still room for two more couples on the next "Chill Weekend" at Rancho Santana in Nicaragua. You can join Addison and Chris Mayer for five days and four nights. Your cost covers accommodations, three meals a day, cocktails, receptions, sightseeing tours, even ground transportation. The dates are Dec. 14-18. Because those dates are approaching… and because the holidays are right on the other side of those dates… Agora Financial is going the extra mile to pick up your costs. Drop an email to Marc Brown… and he'll fill you in with the details.
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| Fleckenstein - One or Two Year End Game for Money Printing Posted: 01 Nov 2011 07:15 AM PDT  With stocks tanking and gold and silver consolidate recent gains, today King World News interviewed Bill Fleckenstein, President of Fleckenstein Capital to get his take on where we are headed from here. When asked about the action in the metals, Fleckenstein responded, "First of all gold was down in dollar terms but it was up in terms of many other foreign currencies. Sometimes people will say how can gold be down given what's going on, a lot of chaos. So if somebody has to liquidate their account because it's related to MF Global or some other problem related to losses in another market, when there is this much chaos on any one day, what a market does on any one day doesn't tell you that much."
This posting includes an audio/video/photo media file: Download Now |
| Posted: 01 Nov 2011 06:59 AM PDT Dear Extended Family, Gold is headed into the $2000s. The mess in Europe is incurable and can only be damage controlled by QE. MF Global got busted because credit default swaps did not work. MF Global had their Greek and Euro bond position covered by credit default swaps that they thought would protect them. Continue reading The Incurable European Mess
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With gold rallying $40 off the lows, King World News spoke once again with the firm that is calling for $10,000 gold. Paul Brodsky, who co-founded QB Asset Management Company, had this to say about the volatility and what he is looking for going forward in terms of money printing, "Well, certainly today's action, with Papandreou posing the referendum to the Greek people, brings QE further down along the timeline. We think central banks are keeping the banking system solvent even though French and German banks are getting weak. We think, clearly, central banks are going to have to move more quickly than they thought they would have to. So we expect QE3 and whatever else might follow on from that to be coming sooner than we did yesterday, that's for sure."
Well, well… Turns out Halloween night arrived like clockwork for the markets… as a skeletal-looking figure crept out from behind a tree to shout, "Boo!"
The market reaction can best be described thus: "Referendum? What referendum? Nobody told us about a referendum. Europe was supposed to be all fixed now! We have to wait till January?! Dammit!"
Greece isn't the only rug pulled out from under the market today: The more we learn about yesterday's collapse of futures broker MF Global, the less there is to like.
Whatever final form a European bailout takes, it will mean more money printing and more inflation, says our newest analyst, Michael Pento.
U.S. factories remain in growth mode… barely. The monthly ISM manufacturing report clocked in this morning at 50.8 — a hair above the dividing line between expansion and contraction.
"Chalk up executive pay as another bubble in our foamy world," quips Chris Mayer by email this morning. "Gene Isenberg at Nabors Industries is leaving as CEO (staying on a chairman) and gets a $100 million 'golden parachute.' In cash."
"Gold is an electoral jet stream," writes Addison's friend Ralph Benko from the American Principles Project.
We have no idea if the call for a general strike by the Occupy Wall Street movement will catch fire tomorrow… but we do have a pretty good idea how it might be reported. Enjoy:
"Born in 1952," writes a reader carrying on this week's round of intergenerational warfare inspired by 
"It seems," a reader responds to a fellow reader yesterday, "our altruistic Gen Xer missed recent history class in school or wasn't in possession of a calendar. As a mid-boomer, I was 14 when Johnson cut his deal to blend what started as Social Security Insurance (remember when everyone called it that?) with the general fund and taking driver's training when Tricky Dick decoupled Fort Knox from the greenback."
"It seems," our final contributor writes succinctly, "as though the elites are provoking intergenerational strife as a new method of the old tactic of divide and rule.| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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