Gold World News Flash |
- Gold imports into China via Hong Kong are continuing to boom
- The Most Bullish Sign For Gold: Falling Inflation
- The Dollar is Done - Deal with It
- Where Are We Now? A Comparative Timeline Approach
- Silver Taking On Fuel, Lift-Off At $34.80
- Rick Rule - Here is Why You Will See $2,500 Gold
- Gold Seeker Closing Report: Gold and Silver Gain Almost 2.5%
- Jesse's Cafe Americain: GATA -- The men in the arena
- Gold Price Close Today 1,790.30 Up 2.0%
- Guest Post: Central Asian Setback For The U.S. Military
- Germany at Its Rubicon
- German Gold “Untouchable”
- Italian Bonds Surpass 6.6% / Italian 2yr Yields Approach 10yr Yield as Yield Curve Inverts / Gold and Silver Advance
- Should I Buy Physical Gold or Gold Shares
- Siver Market Update
- How to Trade This Headline Driven Stock Market
- Tyler Is Good In Uncovering BS, But I Will Not Be Outdone In Busting BS Bank Reporting - I Simply Refuse, Right BNP?
- Why a Dollar & Euro Collapse Is Guaranteed
- Presenting The Latest Eurodebt Exposure Masking Scam Courtesy Of Morgan Stanley: Level 1 To Level 2 Transfers
- Last Man Standing Will be Gold
- Silver Still a Runaway Winner From the Coming Economic Mayhem
- Capitalist Hideout
- Gold is only reliable currency now, Leeb tells King World News
- Gold and the Swissie
- Is China Gold's First Overseas Purchase A Harbinger Of A Gold Miner Roll Up?
- China’s gold imports jump sixfold
- Monday Market Madness - Berlusconi Does Hamlet
- Gold Attempting to Break above Channel Resistance
- Graham Summers’ Weekly Market Forecast (Back Into the Fire Edition)
- Gold Daily and Silver Weekly Charts
| Gold imports into China via Hong Kong are continuing to boom Posted: 07 Nov 2011 07:14 PM PST The more gold the West sells the more China is buying
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| The Most Bullish Sign For Gold: Falling Inflation Posted: 07 Nov 2011 06:59 PM PST Sk Options Trading
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| The Dollar is Done - Deal with It Posted: 07 Nov 2011 06:45 PM PST Silverstockreport
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| Where Are We Now? A Comparative Timeline Approach Posted: 07 Nov 2011 05:34 PM PST Let's assume that the statement "its never different this time" is there for a reason, and is fundamentally correct. In which case this time is just like some other previous time. Furthermore, considering that the underlying reasons for the Great Financial Crisis of 2007 never went away but merely saw their symptoms masked by trillions of dollars in monetary and fiscal stimulus, it is safe to say that what is currently happening in Europe, accompanied by financial failures in the US, is merely a continuation of that epic collapse that started all the way back in 2007 with the failure of New Century. And since history always rhymes, and all too often it is easy to ignore the big picture of the past, we would like to remind readers of precisely what the key events in the first great collapse were, transpose these to the present, and attempt to predict the future. The questions are: who is next, when, where and how. To help us with the answer, here is a brief history of two timelines... Here is the compare and contrast courtesy of South of Wall Street:
Where are we now?
This WSJ timeline is worth considering as we are now 18 months into the 'crisis'. Europe is no different than the US housing bubble that lead to the subsequent credit crisis. It was fairly straight forward that the housing mess would end poorly. However, it played out slowly ... until it didn't. The housing collapse and ensuing credit collapse were the most well documented events that no one was prepared for.... until Europe. MF Global and Greece are NOT going to be the end of this story, they're the New Century or Bear Hedge Funds of this collapse. We're just beginning. Are you prepared? 
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| Silver Taking On Fuel, Lift-Off At $34.80 Posted: 07 Nov 2011 04:52 PM PST Silver may be on the cusp of a major move higher as I type this. The crooks at the CRIMEX, and their housekeepers at the CME, are about to pay dearly for their early May and mid-September price attacks on the people's Precious Metal. After falling nearly 50% from it's April highs near $50 an ounce, demand for physical Silver has soared as sales prices persisted through this past summer and into Fall. On October 24, Silver broke from a four week base that followed Silver's blow-off bottom on September 25. With a close above $32.76, Silver shifted into first gear after idling in neutral for a month. [See chart below] On October 31, backed by massive volume, Silver retested the breakout at $32.76 in textbook fashion. Traders and investors have responded in volume to the successful retest of this base breakout over the past week, and Silver sits poised here at $32.80 on the launch pad with $40 in it's sights. A close above $34.80 opens the door to a very quick $2 liftoff. A further close above resistance at $36.73 will give Silver the "go for throttle up" and achieve orbit near $40 an ounce. Our projected target for Silver by Christmas is $39.47...a 51% gain off the September low of $26.05. The ONLY thing standing in Silver's way, are the CRIMEX crooks. These criminals had best check and see if their health insurance premiums are paid up...as a major short squeeze [and ass whuppin] appears imminent.  China's gold imports jump sixfold By Leslie Hook in Beijing and Robert Cookson in Hong Kong Chinese gold imports from Hong Kong, a proxy for the country's overall overseas buying, leapt to a record high in September, when monthly purchases matched almost half that for the whole of 2010. The buying spree follows a sharp drop in the price of the precious metal. After hitting a nominal all-time high of $1,920.30 a troy ounce in September, gold fell to a three-month low of $1,534 an ounce later in the month. Chinese investors snapped up the metal as prices fell. Analysts expect the September import surge to continue until the end of the year as Chinese gold buyers snap up gold in advance of Chinese New Year, China's key gold-buying period. And you thought the CRIMEX and CME were working in cahoots to force investors and traders to "sell" their Gold. Lower prices in a bull market equals increased physical demand. Gold closed above $1767 one trading day later than I'd hoped. And what a close it was! Gold vaulted our resistance line, and launched towards our $1824 Thanksgiving target. A retest of the break at $1767 cannot be ruled out, and would be very constructive relative to our $1921 Christmas target were it to occur. Fed Heads are lined up to make headlines this week. The first out the door is from Boston: Rosengren: Fed needs to act aggressively on economy By Ros Krasny Eric Rosengren, President of the Boston Federal Reserve Bank, said weak labor conditions would help keep inflation below 2 percent over the next several years. "Given the very weak labor market conditions and the low expected inflation rate, the Federal Reserve should in my view continue to take action to aggressively try to reduce the stubbornly high U.S. unemployment rate," Rosengren said. U.S. Approaches $15 Trillion Debt Limit By Matthew Jaffe It will be the latest sobering economic milestone that few were hoping to see: The U.S. national debt – any day now – will soar above the $15 trillion mark. As of this writing, the total debt is $14.97 trillion, so moving beyond the symbolic $15 trillion is a foregone conclusion. When the unwelcome milestone is reached, it will come at a volatile time both in this country and abroad. Can you say "sowing the seeds of QE3"? "The GLOBAL ECONOMIC COLLAPSE is unrelenting and worsening each day, and will NOT end until the Western banking and currency systems are DESTROYED and REPLACED. I say this not based on speculation, but my knowledge of simple MATH. In the Western world, nearly all nations cannot EVER repay their debts, including the U.S., the U.K., and most of Europe. Not to mention, numerous nations WORLDWIDE are in the IDENTICAL position, notably Japan. Sadly, the cancerous tie that binds them all, and eventually destroy them, is the "world's reserve currency", i.e. the U.S. dollar." -Ranting Andy Hoffman The Collapse Of Our Corrupt, Predatory, Pathological Financial System Is Necessary And Positive Submitted by Charles Hugh Smith from Of Two Minds [Zerohedge] We are being throttled by the Big Lie: we're told that if the predatory financial system implodes, we'll all be ruined. The opposite is true: the only way to save our economy is to let the corrupt, pathological and flawed financial system implode. What happens when the whole chain blows up and the foundation of debt is impaired? Since the whole system is based on the debt and the income streams devoted to servicing it, the entire edifice collapses when the debt is impaired--debtors default and the system clogs with bad debt, i.e. uncollectable debt. In a transparent Capitalist system, the debt would be written down and all the insolvent borrowers, lenders and counterparties would be wiped out. But the political corruption that enabled modern finance to poison the American economy and culture has stopped that cleansing from occurring. Silver: The People's Money Written by Jeff Nielson If we take the fruits of our labours and convert it into silver as quickly as possible, then suddenly the bankers must do most of their stealing from the other paper-holders – not us. And if every ordinary person converted their wealth to silver as quickly as possible, soon the bankers (and the ultra-wealthy for whom the bankers "front") would have no one to steal from but each other. People need to divorce their minds from the notion of "buying silver", and rather simply think of themselves as doing their "saving" with silver rather than with the banksters' ever more diluted paper. Indeed, the worst thing we can possibly do with our wealth is to deposit it in a bank – since that simply allows the banksters to ratchet-up their "leverage" even further (i.e. steal from us even faster). Put another way, every dollar which ordinary people convert to silver (or gold) weakens the intensity/effects of this stealing-via-dilution. This also explains the extreme aversion which the bankers have to a "gold standard", and why they have disseminated millions of pieces of propaganda over recent decades attempting to portray a gold standard as either being archaic or simply "impractical". 
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| Rick Rule - Here is Why You Will See $2,500 Gold Posted: 07 Nov 2011 04:01 PM PST  With gold and silver showing strength lately, today King World News interviewed one of the most street smart pros in the resource sector, Rick Rule, Founder of Global Resource Investments, which is now part of the $10 billion strong Sprott Asset Management. Rule had this to say about the gold market, "Well you know me, Eric, I believe we are going to see continued volatility. So $40 and $50 up-moves and down-moves are background noise. I think gold goes higher, it probably goes substantially higher over the next 12 months."
This posting includes an audio/video/photo media file: Download Now |
| Gold Seeker Closing Report: Gold and Silver Gain Almost 2.5% Posted: 07 Nov 2011 04:00 PM PST Gold rose almost 1% in early Asian trade before it fell back to $1762.00 at about 4:45AM EST, but it then rallied back higher for most of the rest of trade and ended near its late session high of $1798.18 with a gain of 2.38%. Silver fell almost 1% to $33.83 by about 3:30AM EST, but it also rallied back higher for most of the rest of trade and ended near its late session high of $34.973 with a gain of 2.49%.
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| Jesse's Cafe Americain: GATA -- The men in the arena Posted: 07 Nov 2011 03:58 PM PST 12:04a ET Tuesday, November 8, 2011 Dear Friend of GATA and Gold: Jesse's Cafe Americain yesterday paid GATA a generous compliment, invoking in our favor Theodore Roosevelt's speech "Citizenship in a Republic," delivered at the University of Paris in April 1910, a year after he retired from the presidency. We accept the compliment gratefully but humbly too, for as Roosevelt said then, "there is no effort without error and shortcoming." Jesse writes that GATA's fight has been "long and sometimes lonely." Yes, but not so lonely anymore. Having raised the golden flag, GATA soon enough found itself joined by brilliant, decent, and courageous people of far greater talent from all over the world. We may have rediscovered more than we have discovered, but one thing we surely discovered: that in what became our pursuit of free and transparent markets, an independent and honorable currency for humanity, and limited and accountable government, we are not alone. Jesse's commentary is headlined "GATA: The men in the arena" and you can find it here: http://jessescrossroadscafe.blogspot.com/2011/11/gata-men-in-arena.html CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix Completes Operating Agreement Golden Phoenix Minerals Inc. (GPXM) has entered a joint venture operating agreement with Silver Global S.A., a Panamanian corporation, governing the operational and management aspects of their new joint venture company, Golden Phoenix Panama S.A., a Panamanian corporation formed to hold and operate the Santa Rosa gold mine in Canazas, Panama, and explore the mine's adjacent property. Golden Phoenix will be manager of the joint venture company. Silver Global will handle all social programs, political and community relations, and human resource matters for the joint venture company in Panama. Golden Phoenix and Silver Global also have agreed to work together on all future acquisitions within Panama and to bring such new opportunities to the joint venture company. Golden Phoenix will be earning in to a 60 percent interest (and potentially an 80 percent interest) in the Santa Rosa mine. Upon signing the joint venture agreement and completing the corresponding acquisition payment, Golden Phoenix will earn an initial 15 percent interest in the joint venture company. Tom Klein, CEO of Golden Phoenix, says the agreement "creates a solid foundation for the development and planned re-opening of Mina Santa Rosa." For Golden Phoenix's full statement on the joint venture operating agreement, please visit: http://goldenphoenix.us/press-release/golden-phoenix-completes-joint-ven... Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT For Continuous Wealth Creation, the Hera Research Newsletter The life cycles of companies that produce natural resources allow investors to allocate assets among companies at different stages of development and to profit from transitions between stages. Based on natural resource company life cycles, the Hera Research Newsletter maximizes profits through deep, fundamental analysis at each stage of development and by moving gains back to earlier-stage companies in a continuous wealth-creation process. Hera Research covers a pipeline of high-quality natural resource companies at different stages of development. The companies span discovery and production of gold, silver, and platinum group metals, select base metals, oil and gas, green energy, agriculture, rare earth elements, uranium, and more. Discover the unique value of the Hera Research Newsletter by visiting: http://www.heraresearch.com/newsletter.html Or call Ron Hera at 360-339-8541x101.
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| Gold Price Close Today 1,790.30 Up 2.0% Posted: 07 Nov 2011 03:05 PM PST Gold Price Close Today : 1,790.30 Change : 35.00 or 2.0% Silver Price Close Today : 34.81 Change : .74 or 2.1% Platinum Price Close Today : 1,655.50 Change : 28.70 or 1.7% Palladium Price Close Today : 661.80 Change : 6.60 or 1.0% Gold Silver Ratio Today : 51.43 Change : -0.09 or 1.00% Dow Industrial : 11,983.24 Change : -61.23 or -0.5% US Dollar Index : 76.91 Change : 0.20 or 0.3% Franklin Sanders has not published any commentary today, he will be away until 9th November. © 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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| Guest Post: Central Asian Setback For The U.S. Military Posted: 07 Nov 2011 01:54 PM PST Submitted by John C.K. Daly of OilPrice.com Guest Post: Central Asian Setback For The U.S. Military The last few weeks have seen the U.S. Department of Defense suffer a number of setbacks in its effort to retain military influence overseas. First came the startling announcement on 21 October, when President Obama announced that all American troops would be withdrawing from Iraq by 31 December under the terms of the Status of Forces Agreement. Accordingly, 39,000 U.S. soldiers will leave Iraq by the end of the year. The deal breaker? Washington's demand for continued immunity for any remaining U.S. troops, and the Iraqi government of President Jalal Talibani couldn't, or wouldn't, deliver. Now the handwriting's apparently on the wall further east, as Kyrgyz president-elect Almazbek Atambaev firmly told the United States on 1 November to leave its Manas military air base outside the capital Bishkek when its lease expires in 2014. Atambaev, the former Prime Minister, won Kyrgyzstan's 30 October presidential election. Speaking to journalists in the wake of his victory Atambaev said, "When I was appointed Prime Minister last year, and again this year, I warned employees and leaders of the U.S. embassy and visiting representatives that, in 2014 and in line with our obligations, the United States should leave the base. We know that the United States very often participates in various military conflicts. It happened in Iraq, in Afghanistan and now there is a tense situation with Iran. I wouldn't want any of these countries one day to make a return strike on the military base." If Atambaev carries through with his pronouncements, then assuming that the U.S. military effort in Afghanistan extends beyond 2014, the Pentagon's efforts there will be impacted, as the Manas facility remains the sole U.S. military base in Central Asia outside of Afghanistan. While the Obama administration has promised to fully withdraw all troops from Afghanistan the same year that the lease for the Kyrgyzstan base expires, 2014, next year's presidential elections could upend that scenario. But, roiling beneath the surface, it is the Pentagon's close relationship with the former presidential administrations of Askar Akayev and Kurmanbek Bakiev that stoked populist resentment against the Manas facility, especially the cozy fueling agreements, details of which are only slowly coming to light, but which apparently provided both presidencies with a massive "off the books" cash flow. Key to the Pentagon's efforts were murky agreements with the fuel entity Mina/Red Star, which provided fuel for Manas so off the record that when it was awarded a no-bid renewal contract in 2009 worth $729 million over three years journalistic inquiries were met with a stony "national security" defense to deny particulars of the agreement. The presidency of interim president Roza Otumbaeva raised the stakes in 14 January, when Kyrgyz government representatives presented U.S. officials and Mina Corp. executives with the proposal to pay $55 per ton of fuel in excise tax, or else volunteer to pay $100 per ton of fuel directly to the state budget. Under the terms of the existing basing agreement for Manas, the U.S. government and its contractors were exempted from all local taxes. Washington's response was immediate and predictable. U.S. embassy spokesman Christian Wright in Bishkek said the exemption from excise tax is "vital" to the U.S. military's ability to operate at Manas, offering the legalese, "Under the bilateral 2009 Agreement for Cooperation, the acquisition of articles and services in the Kyrgyz Republic by or on behalf of the United States in implementing the agreement is not subject to any taxes, customs duties or similar charges in the territory of the Kyrgyz Republic. Such articles and services include all fuel provided to the Manas Transit Center, including fuel supplied by sub-contractors. This is standard practice around the world. The U.S. government has similar agreements with many countries throughout the world for fuel to be delivered free of all duties and taxes. The exemption from fuel taxes is a vital part of our ability to carry out the mission of the Manas Transit Center." Having thrown the dice to continue to operate Manas on the cheap, the Pentagon seems to have lost significant position on the grand Central Asian geostrategic chessboard. What is most extraordinary is that this represents the third time around for Washington wrangling over Manas and its attendant costs. After Akaev was ousted by the March 2005 "Tulip Revolution," Washington quickly refashioned similar agreement with the new administration of President Kurmanbek Bakiev, who was subsequently ousted by popular unrest in April 2010. For the Kyrgyz, the Russians are the devil they know, the Chinese are the devils flush with yuan, and the Americans, two decades after the collapse of the USSR, are the tight-fisted guys all too willing to cut a deal corrupting the previous presidential administrations of Akaev and Bakiev while delivering lectures about democracy. To quote some of the acerbic critics of former U.S. President George W. Bush, "all hat, no cattle." The Pentagon has lost yet another opportunity to expand its global footprint, but to use an American baseball metaphor, "three strikes and you're out." It's not as if anyone except the most tone-deaf in Washington couldn't see it coming.
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| Posted: 07 Nov 2011 01:49 PM PST By Wolf Richter www.testosteronepit.com No country is economically more dependent on the survival of the euro than Germany: the export powerhouse—largest exporter in the world until China overtook it last year—thrived because Eurozone countries could borrow unlimited amounts of euros to buy German goods. But now that the gravy train has stopped in front of a mountain of unmanageable sovereign debt, Germany finds itself at war—with itself. Germany's heroic insistence on monetary discipline is pushing the over-indebted Eurozone to the brink of breakup—the very event that German exporters fear the most. And they include the vast Mittelstand of family-owned companies. Already, German industrial orders have started to nosedive. Exporters are panicking: orders fell off a cliff during the financial crisis, leading to the worst quarterly GDP declines in the history of the Federal Republic: -2.1% in the fourth quarter of 2008 and -3.8% in the first quarter of 2009. Annualized, those two quarters printed a double-digit decline in GDP. The German economy lives and dies by its exports. Ironically—though Germans conveniently don't remember—it got pulled out of its funk by the Fed which printed and handed out trillions of dollars, a big chunk of which we now know went directly to German banks and indirectly to German exporters. So monetization bailed them out last time though it wasn't their money that was devalued. That's the schizophrenic duality Germany finds itself in. No event brought this out more harshly than Germany's reaction to the news that the ECB studied using national reserves, including Germany's gold and Special Drawing Rights (an IMF-issued quasi currency), as a way to increase the firepower of the misbegotten European bailout fund, the EFSF. France knows no such duality. Yesterday I watched Valéry Giscard d'Estaing, President of France from 1974 - 1981, hold forth on French national TV about the debt crisis and the government's response to it (fear and belt-tightening ... six months before an election). During the discussion, the center-right politician proudly stated that when he was booted out of office in 1981, France's national debt was a minimal 14% of GDP. What he didn't say was that the French government at the time had been funding its budget deficits through various government-owned financial institutions and through monetization by the Bank of France. Nor did he mention France's history of inflation, devaluation, and "currency reform." The French franc was most recently "reformed" in 1960, when 100 francs were converted to 1 new franc. Alas, in its 40 years of existence until the euro took over, the new franc lost 86% of its value. Which makes Germans gag. By comparison, Italy, Spain, and other countries had far worse inflation and devaluations. Monetization as a policy goal has now shown up in French political campaigns. During the primaries, candidates on the left—the winner, François Hollande, has a good chance of dethroning Nicolas Sarkozy—have called for solutions that ranged from greater flexibility by the ECB to outright and automatic monetization of Eurozone sovereign debt, similar to how it was done when Giscard d'Estaing was President. On the far right, Marine Le Pen called for an end to the euro itself. Their logic is that before the advent of the euro, no one doubted that France and Italy would be able to pay their bills, albeit with increasingly worthless currencies. Sovereign default wasn't even part of the discussion, though it is today. But to maintain the sacrosanct value of the euro, Germany resists pressures to monetize troubled sovereign debt though it would save the Eurozone and the very export markets that the German economy depends on. Fear of inflation and devaluation is an integral part of the German soul, formalized by its central bank and constitution. And monetization, a solution that seems so glaringly obvious to other countries, is seen as the threat that it actually is. Now, as the quixotic war against Eurozone deficit addiction and excessive debt is falling apart, and as affected economies are careening out of control, German industry fears for its export markets. And suddenly, Germany finds itself at war: on one side is its soul, whose spokesperson is the Bundesbank; and on the other is its dependency on exports. At some point, after all bailout efforts have failed, one side will prevail. Germany will either come around and support "saving" the Eurozone, and thus its industrialists and banks, through monetization of debt—and lose part of its soul in the process. Or it will exit the Eurozone in disgust to revert to the Deutsche Mark or to start a smaller monetary union it can control—and lose crucial export markets in the process. Marine Le Pen, one of the three top contenders in the French presidential election, said the unspeakable.... 'Let the Euro Die,' Said the Woman Who Could Be the Next French President. Wolf Richter www.testosteronepit.com
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| Posted: 07 Nov 2011 01:37 PM PST from WealthCycles:
Over the past couple of decades, we've heard numerous stories emanating from 33 Liberty Street—the home of the Federal Reserve Bank of New York, where lies a vault built 50 feet below Manhattan's bedrock. Inside the vault is held thousands of tons of the gold of 36 sovereign countries, including the gold of the Bundesbank, Germany's central bank. But since the origins of banking itself, a sleight of hand has accompanied every transaction—and possibly even the Fed's deal with the Bundesbank. Germany's sovereign gold reserves are the second largest on the planet, second only to the mythical gold reserves of the Fed in the U.S.
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| Posted: 07 Nov 2011 01:24 PM PST by Harvey Organ: Good evening Ladies and Gentlemen: The price of gold rose to $1790.30 for a gain of 35 dollars. The price of silver advanced by 74 cents to close at $34.81. This is comex closing time. In the access market right now at 5 pm est: gold: $1795.60 Today we witnessed the Italian 10 yr bonds yield 6.6%. I cannot see how Italy will get out of their mess as in early December they need to fund huge amounts of debt. They cannot afford a 7% yield on 10 yr money. The two year yield came within a few basis points of the 10 yr bond and thus we have an inverted yield curve with respect to Italy. Greek parliamentarians gave Papadopoulos a vote of confidence who then immediately agreed to a crisis coalition government. This should be interesting to see how this plays out. We will discuss all of these points in the body of my commentary but first let us head over to the comex and see how trading fared today. Read More @ HarveyOrgan.Blogspot.com
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| Should I Buy Physical Gold or Gold Shares Posted: 07 Nov 2011 01:00 PM PST Since 1985 to 2007 the developed world has seen the sophisticated development of equity and fixed interest rate markets that has ensured that investments are aimed at a positive, growth future for the economies on the west side of the globe. All the skills and beliefs in markets have been consistent with that expectation. When the credit crunch came, the belief was that the powers that be would rectify matters and we would be back to the same rosy future once the hurdles had been surmounted. But here we are, ending 2011 and that rosy future has given way to an uncertain one where the very structures on which the rosy future had been built have stated to buckle and falter.
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| Posted: 07 Nov 2011 12:03 PM PST by Clive Maund:
Silver looks good here, and like it is preparing to break clear above the 50-day moving average, which is falling just above the price and currently acting as a constraining influence. The next upleg is expected to see it run at the more serious zone of resistance in the $37.80 – $39.50 area, which will be a bigger obstacle, as at this level it will run into supply from earlier buyers who were fleeced during the recent plunge and remain unnerved and ready to sell when they see prices improve.
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| How to Trade This Headline Driven Stock Market Posted: 07 Nov 2011 10:26 AM PST Courtesy of Chris, The Gold and Oil Guy With all eyes on the unemployment report and Europe, the CME Group's PR Department nearly created an all out panic with their announcement after the market close on Friday relating to futures maintenance margin. The original statement was vague and I was quite concerned until I checked out the CME Group's web-page and the PR Department sent an update clarifying their position. At this point I think the crisis has been averted, but this is just another reminder that we live in "interesting times." Keep in mind that if the CME starts raising margin rates across the board for futures contracts in order to protect themselves stocks and commodities could collapse. Silver recently has is margin rates increased and silver since then dropped 25% in value. So imagine if they raised the rates for more commodities… The current price action in the marketplace pales in comparison to the world's geopolitical tensions and deteriorating social mood. In my trading career, I have never seen the price action in the indices react so violently to intraday headlines and rumors. Risk is high and the types of traders profiting from this market are day traders and very short term traders with trades lasting just a couple hours to 24 hours in length. Aggressive trading which small position sizes is all that can be done right now. This is not meant to be investment advice, but more as a function of the market environment in which we find ourselves currently trading within. Right now it is hard to say where price action in the broader indices heads in the short-run. One headline out of Greece or Italy could dramatically alter economic history. In the intermediate term I remain neutral to bearish for a number of reasons. One indicator I follow is the bullish percent index on the S&P 500 which at this point is arguing for lower prices. The chart below illustrates the S&P 500 Bullish Percent Index:
As can be seen above, the S&P 500 Bullish Percent Index is presently at an overbought status. When looking at the relative strength and full stochastics indicators one would argue that a pullback is warranted. Historically when the S&P 500 Bullish Percent Index is this overbought, a pullback ensues which ultimately sees the S&P 500 Index selloff. The more arduous task is trying to determine just how deep the pullback on the S&P 500 Index might be. It is critical to point out that while I do believe a pullback is likely, I will not rule out a rally into the holiday season. Much of the near-term price action is going to be dictated by headlines coming out of Greece and the rest of Europe. In addition to Greece, Italy is also starting to see increased concern regarding an unsustainable fiscal condition. Depending on how the European Union handles the varying degrees of risk in the near term, we could see price action react violently in either direction. With the market capable of moving in either direction, I wanted to point out some key price levels which should act as clues regarding potential future price action in the S&P 500. The two key support levels to monitor on the S&P 500 Index are the 1,240 and 1,220 price levels. The daily chart of the S&P 500 Index below illustrates the price levels:
For bullish traders and investors the key price level to monitor is the recent highs on the S&P 500 around the 1,290 area. The weekly chart below demonstrates why this price level is critical and which overhead levels will offer additional resistance should the recent highs be taken out to the upside. (I give trading alerts to subscribers based on monitoring the indexes, click here to learn more.) SP500 Weekly Chart Analysis:
While I am neutral in the intermediate to longer term presently, in the short run I have to lean slightly bearish simply because of the future headline risk and also because a major head and shoulders pattern has been carved out on the hourly chart of the S&P 500 Index. This type of chart pattern is synonymous with bearish price action. The hourly chart of the S&P 500 Index is shown below:
Right now I remain slightly bearish, but should the head and shoulders pattern fail and/or we begin to see multiple positive reactions to news coming out of Europe, a strong rally into the holiday season is likely. Unfortunately all we can do is monitor the key price levels and wait patiently for Mr. Market to tip his hand. Until we see a breakout in either direction, we could see price action inhabit the 1,220 – 1,290 price range for several weeks before we get any more clarity of future direction. Until I see a breakout, I will remain relatively neutral with a slight short term bias to the downside based on price patterns in the shorter term time frames. This is a tough market to trade in, and I don't want to get chopped around or do any heavy lifting. I'm going to focus my attention on high probability, low risk trade setups until directional biased trades make more sense. In closing, I will leave you with the thoughtful muse of the late Texas Congresswoman Barbara Jordan, "For all of its uncertainty, we cannot flee the future."
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| Posted: 07 Nov 2011 10:17 AM PST Tyler Durden over at ZeroHedge (obviously not speaking For the latest gimmick to mask PIIGS From the just released 10-Q:
Uhm, are you serious? Transactions in all PIIGS securities were sufficiently active in I must admit, that this type investigative reporting takes Click to enlarge... #f2f2f2; text-align: left; width: 284px; margin: 0px;"> You see, this game is getting rampant, and it not just french banks #f2f2f2; text-align: left; width: 500px; margin: 0px;">
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| Why a Dollar & Euro Collapse Is Guaranteed Posted: 07 Nov 2011 09:53 AM PST from StormCloudsGathering: The collapse of the Dollar and the Euro is a mathematical certainty. In this video I'm going to prove it using very simple terms.
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| Posted: 07 Nov 2011 09:33 AM PST For the latest gimmick to mask PIIGS sovereign debt exposure (where we already know that the traditional fallback of "gross being irrelevant and only net being important" crashed and burned today after Jefferies offloaded precisely half of its gross exposure, while raising net, thereby confirming that gross exposure is indeed a risk), we turn yet again to Morgan Stanley. As a reminder, despite our note that the company's gross exposure (which is now a major risk factor, thank you Rich Handler for proving our "bilateral netting is flawed" thesis) to French banks alone is $39 billion, Morgan Stanley downplayed this by saying that only $2.1 billion is the actual net funded exposure to Peripherals Eurozone countries. We'll see if Jack Gorman will have to revisit his defense after today's Jefferies action. Well as it turns out, we now have gimmick number two, one which will surely delight the bearish investors out there looking to find a bank doing all it can to mask not only its gross but net exposure (and wondering why it has to resort to such shenanigans). Presenting the Level 1 to Level 2 switcheroo, courtesy of, who else, Morgan Stanley. From the just released 10-Q:
Uhm, are you serious? Transactions in all PIIGS securities were sufficiently active in both frequency and volume. We are delighted to present Morgan Stanley with a CUSIP list of all PIIGS bonds together with price and volume data if they so desire to confirm to them that their excuse is about to get tested substantially by the market as one not of prudent accounting (we jest: Level 2 assets are merely a legal way to get par marks for a security that is realistically trading at 35 cents on the dollar in the case of Greece and 87 in the case of Italy), but one of yet another attempt at blatant obfuscation. And to confirm that this reasoning behind this reclassification in a quarter in which there was massive volatility in all PIIGS securities, is pure lunacy, we ask: did Morgan Stanley reclassify any PIIGS bonds from Level 1 to Level 2 in Q1 or Q2, when vol was indeed less and when one could make the argument that there is a basis for a Level 1 to Level 2 transition? Here is the language for the 9 months ended, not just Q3:
So... the only time Morgan Stanley did the Level 1 to Level 2 shift was in Q3, when everything was trading, was volatile trades occurred in both "frequency" and "volume" yet when Morgan Stanley's back office couldn't find enough marks to justify keeping PIIGS bonds at Level 1? And let's not forget the fact that the Level 1 to Level 2 amount was $2.1 billion or... precisely the amount of the firm's self-professed net funded exposure! SERIOUSLY, MORGAN STANLEY!? Just like the DVA fudge, should we now expect every single bank to report a transfer in PIIGS exposure from Level 1 to Level 2 (only for Q3 mind you)? And if so, just how ugly is it about to get for US bank stocks with PIIGS exposure. As for Morgan Stanley, please keep coming up with more and creative ways to mask the fact that your publicly disclosed net exposure to Europe is totally fabricated and meaningless. The market is just going to love picking off your Sovereign flow book at 1.5% gross losses (just like with Jefferies) as you scramble to offload your gross exposure next to prove, yet again, just how unexposed to Europe you "truly" are.
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| Last Man Standing Will be Gold Posted: 07 Nov 2011 09:33 AM PST Jim, The CME/MF Global fiasco is really a game changing event in my opinion. It will certainly support gold as a safe haven investment. CME's oversight of its members is just as bad as the U.S. government's oversight of its banking system. Safe investment options are narrowing and we all know who the last Continue reading Last Man Standing Will be Gold
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| Silver Still a Runaway Winner From the Coming Economic Mayhem Posted: 07 Nov 2011 09:27 AM PST by Peter Cooper, SilverSeek:
If you could only invest in one asset class to hold until the next big bubble is fully inflated then it has to be silver. Gold is already increasingly popular for the same reason. It is a precious metal of fixed supply and proven monetary value in a world of electronic money creation. Just look at the staggering sums of money magicked out of thin air by the eurozone debt deal at the end of last month. Inflation problem The problem with electronic money is that sooner or later it enters circulation and then you have too much money chasing the same number of goods and inflation results. As an investor you clearly want to be an owner of the fixed supply of goods and not the inflating amount of money.
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| Posted: 07 Nov 2011 09:15 AM PST Addison Wiggin – November 7, 2011
 At 63, Cano, a grizzled old-style revolutionary, was nearly the last of a breed. He'd spent much of the 1970s in the Soviet Union. At one point, led a revolutionary force of some 20,000 guerillas in the jungles to the north and west of Bogata. Perhaps Cano knew the military was onto him. The army reports he'd shaved the bushy beard that had become his trademark. "With the collaboration of people within the FARC," President Juan Manuel Santos confirmed, "our armed forces slowly planned the operation they carried out [Friday]. "It is the most devastating blow this group has suffered in its history," he went on to declare. Santos was defense minister for much of the previous decade, orchestrating a fight that diminished the FARC's numbers from its high-water mark to something under 8,000 men today (with no small amount of U.S. and Israeli training and aid, we learned when we were in country in March).
Eight days ago, Gustavo Petro was elected mayor of Bogota, widely regarded as the second-most-important political office in the country. Petro used to belong to the rebel group known as M-19.
The details of the trade agreement were first settled five years ago between Santos' predecessor and then President George W. Bush. But the deal became a political football, held up by unions in the U.S. until the need for jobs became more politically expedient to the Obama re-election team. The United States-Colombia Trade Promotion Agreement passed a little less than a month ago. It will be a good deal, for example, for the owner of the textile mill we met outside Medellin. The cotton he buys from the U.S. won't be subject to a 15% import tariff as it enters Colombia. Nor will his jeans be subject to the 18% increase he used to pay when shipping them back to Estados Unidos.
 Hmmn… we're starting to like Colombia even more today than we than in our original Apogee Advisory write-up this spring. [Ed note: Current readers can find it in the archive. Not an Apogee reader yet? Here's where to sign up:]
"Plan Colombia," an effort dating back to the Clinton administration, has, no doubt, altered guerrilla activity — and the drug trade that finances it. Altered, but not diminished. "All the drug violence we had here," one of our hosts told us when we visited back in March, "we've exported to Mexico." Not to worry, we've got more on the Mexican affair up and coming in a future episode of The 5…
This morning, yields on Italian government debt rose to their highest levels since 1997. A 10-year bond topped out at 6.67%. You may recall it was the bond vigilante, those nefarious inhabitants of the financial underworld, who first started blowing the whistle on Greece's debt crisis. On April 6, 2010, they forced the yield on the Greek 10-year note to 6.67% for the first time. Today, following 19 months of tedious headlines but little in the way of solutions, the Greek deca-note is yielding 25%.  Alas, Italy is a whole other basket case unto itself. "Many analysts," according to Reuters, "say yields above 7% would make funding costs [for Italy] unsustainable." In the credit default swap market, Italy's probability of default is pegged this morning at 35% — worse than other European basket cases like Hungary and Spain.
"Prime Minister Silvio Berlusconi is losing support at home, and on Thursday evening, he agreed to have his austerity efforts monitored by the IMF. Concern is rising that Italy could be the next euro battleground." Italians have been remarkably forgiving of Berlusconi. Corruption? Par for the course. Underage prostitutes? Well, his mid-life crisis waited until his 70s. But once you let IMF bureaucrats issue marching orders, that's a bridge too far. So what does it mean? "Essentially," Abe explains, "there is no rest for the euphoria-regret-fear sentiment cycle. We expect continued volatility, with the trigger being fear of a Berlusconi government collapse." Abe made the most of euro-volatility last week to bag gains of 41% in less than a week. He's been on a roll, playing "binary options" on Germany's DAX Index to collect gains as high as 161% seven times in the last eight weeks. Learn more about Abe's system, right here:
A lawmaker in German Chancellor Angela Merkel's governor coalition is suggesting Italy sell some of its gold reserves to pay its debts. Meanwhile, Germany is, again, rejecting the idea of backing the eurozone bailout fund with German gold. "German gold reserves must remain untouchable," says the economy minister. After the United States, Germany is the world's second-largest holder of gold, with 3,400 metric tons. Third is Italy, with 2,500. "Gold's value as money and as a strategically important monetary asset," observe the analysts at GoldCore upon reviewing these events, "is being slowly realized again."
Natural gas is down slightly this morning, to $3.69 per million BTUs. Gas continues to founder after a 75% drop from record highs six years ago.
"The single biggest factor for the decline in natural gas prices is the shale gas revolution," he went on. "Shale players are enjoying excellent economics, even at current low gas prices — rig productivity continues to improve, and costs are falling." And the revolution is still in its early days, Chris believes. "Literally, there are hundreds of thousands of locations that can produce meaningful oil and gas reserves at very low prices," says John Bookout from KKR, a private equity player that's big into shale. "The inventory is so big it will take decades to drill it all," Chris goes on. "There are 20 million acres of highly prospective acreage in shale. There are over 200,000 drilling locations, maybe 800 trillion cubic feet of oil and gas reserves." Numbers like these have made Chris a lot less sanguine about the prospects of natgas producers. He's retaining a couple of super-low-cost producers in Mayer's Special Situations, but if you're looking to play it safe, "I no longer believe the upside from higher natgas prices is there." You can see Chris make an extensive case in today's Daily Resource Hunter.
They're already in use in Oakland and Cincinnati. Now Seattle is looking at it, too. Supposedly, it would help better document cases of police brutality that show up on YouTube — showing things from the officer's perspective. "This could raise all sorts of privacy and search issues," Gary Gibson observes at Whiskey & Gunpowder, as he travels the country in search of the ideal place to settle down. "Our inclination is to stay away from places where things are so contentious with the police that this sort of monitoring solution is being taken seriously." For some different considerations about the best places in the United States, our report, American Oases, is still available to new readers of Apogee Advisory.
 "They don't even pick up our leaves anymore." OK, so the concerns are a little more local and, well, prosaic, compared with foreclosures and student loan serfdom. But this points at another of our ongoing themes: Even at the far end of Long Island, local government can't keep all its promises. Beachgoers drown because the villages can no longer afford lifeguards. The East Hampton dump is closed on Wednesdays. And indeed, leaf pickup was eliminated a year ago. It's close to home where the decay of an overleveraged empire shows up first. For some more eye-opening examples… and a plan to prepare for when you can no longer count on "essential" services… check this out:
"I enjoy receiving your comments." The 5: We like all of them, of course. But there's nothing like bullion in your hands for a secure future — which is why we recently obtained a limited supply of it for a select group of readers. In only three days, about 20% of that supply is already spoken for. Time's a-wasting if you'd like to claim your own. We even went the extra mile and developed a storage solution. More about that, below.
"I was on the co-op plan, so I worked every other quarter. I earned enough to pay for college, my car, insurance, clothes and dating. "After a short time in the Army, I worked for one company that matched my savings in company stock. My stock basis is $.50, and it pays $2 in dividends. I have a paid-for house and car, and gold/silver in the ground. "I think my cohort came from a narrow window, and I have known for some time that those that came after me did not have the same opportunities that I had. "I read The 5 for knowledge and entertainment. I know of no other place to get so much for so little. Keep up the good work." The 5: Thank you. And you're right. "The second half of the baby boomers may be in the worst shape of all," according to demographer Cheryl Russell. "They're loaded with expenses for housing, cars and kids, but they will never generate the income that their parents enjoyed." In Financial Reckoning Day, we pointed out that age 45-54 is supposed to be the peak "getting and spending" years, when earning power is strongest. But the Census Bureau reveals this age cohort lost the most ground between 2000-08. Inflation-adjusted household income shrank 10.7%. This will only get worse as the "mother of all financial bubbles" starts to pop. Guidance on how to cope is available at this link:
The 5: Yeah, you're right. Mustering a sense of humor is something we've been meaning to work on these days. Thanks for the advice. Cheers, Addison Wiggin P.S. About the storage solution for your precious metals… We know about the usual problems with a home safe: It's the first thing a thief looks for. The shovel-in-the-backyard solution has, umm, it's own drawbacks. Your mattress? Well… How about this solution, brought to us by a young entrepreneur named Hilary? She was an expert in bookbinding and antique books. One of her customers was the victim of a burglary — who'd foolishly stored his valuables in a safe, which was now gone. Could Hilary, the customer inquired, hollow out a real book of his to keep his valuables "hidden in plain sight"? Thus was a new business born… and thus did we discover a real storage solution for customers who take us up on our one-of-a-kind bullion offer. Supplies are extremely limited, and 20% of it already was gone after we first mentioned it on Friday. Here's where to move on it:
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| Gold is only reliable currency now, Leeb tells King World News Posted: 07 Nov 2011 09:05 AM PST 5p ET Monday, November 7, 2011 Dear Friend of GATA and Gold (and Silver): Fund manager Stephen Leeb today tells King World News that as money creation becomes central bank policy throughout the world, gold is the only reliable currency, while monetary and solar energy demand may goose silver even more. An excerpt from Leeb's interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/7_St... CHRIS POWELL, Secretary/Treasurer 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. Support GATA by purchasing a silver commemorative coin: 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 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
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| Posted: 07 Nov 2011 08:55 AM PST
Lots of things tugging on the price of gold today. For me, the most important factor was the threat of another devaluation of the Swiss Franc. The headlines from the Swiss papers:
 . . 
The last time we had headlines like this the EURCHF was 1.05. Not long after it was 1.21. So it's not surprising that this time around folks ran for the hills in fear. The CHF lost 2.3% against the Euro today on just the SNB threat of "pegging up". Anyone who was still hanging onto the notion that the CHF was a safe haven, puked with the headlines. So more money went to gold. If we actually do get a re-peg it would add even more fuel onto the gold price. I think we will be looking 1,900 in the rear view mirror if the SNB ups the anti. Hildebrand has balls to leak this story over the weekend. His timing looks like a deliberate insult to the G20. The final communiqué had this to say:
We affirm our commitment to refrain from competitive devaluation of currencies. Of course Switzerland in not in the G20 so they can ignore this altogether. They can do as they please. However, this time there might be a bit of outrage from their neighbors north, south, east and west. I'm not sure who fired the first missile in the developing global currency war. Switzerland has already thrown up its fair share. They're going to get hit back if they launch another. We are (again) at zero visibility on the Franc. Better to "stay away" from this one. The flip side is that the gold story gets stronger and stronger. Look for a second tier (but cash rich) Central Bank to make an announcement of a big gold buy. After all, where else would a CB put cash these days? .
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| Is China Gold's First Overseas Purchase A Harbinger Of A Gold Miner Roll Up? Posted: 07 Nov 2011 08:52 AM PST
Gold has retraced over 60% of its September swing high to low - rallying almost 12% off late September lows. Whether by cause or effect, it seems our stimulus-driven, vendor-financing, USD-heavy, mercantilist neighbors across the Pacific have decided the time is right to BTFDs in gold and gold miners as today's South China Morning Post notes "China Gold to buy Central Asia mine". Jery Xie Quan, VP of China Gold, further noted that was also negotiating potential mine acquisitions in Canada and Mongolia, which are either in advanced development or close to starting production. Are the Chinese using their excess USD to purchase gold-producing assets? Who knows but it may help explain the relatively strong performance of the EUR against the USD as the former region deteriorate fast. China Gold to buy Central Asia mine
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| China’s gold imports jump sixfold Posted: 07 Nov 2011 08:51 AM PST 07-Nov (Financial Times) — Chinese gold imports from Hong Kong, a proxy for the country's overall overseas buying, leapt to a record high in September, when monthly purchases matched almost half that for the whole of 2010. The buying spree follows a sharp drop in the price of the precious metal. After hitting a nominal all-time high of $1,920.30 a troy ounce in September, gold fell to a three-month low of $1,534 an ounce later in the month. Chinese investors snapped up the metal as prices fell. Analysts expect the September import surge to continue until the end of the year as Chinese gold buyers snap up gold in advance of Chinese New Year, China's key gold-buying period. [source] PG View: Gold went on sale in September and the Chinese snapped it up!
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| Monday Market Madness - Berlusconi Does Hamlet Posted: 07 Nov 2011 08:47 AM PST
Courtesy of Phil of Phil's Stock World
That was the great comment tweeted by Joe Weisenthal this morning as Italian Prime Minister Berlusconi wrote on his facebook page: "The rumors of my resignation are groundless." You know, screw this whole EU crisis thing, I'm just fascinated with what's become of society as we enter what I call the Post-Information Age - the point at which there is now so much information in the World that people don't want to think anymore so we now rely on media personalities who can sum complex political issues up in 140 characters or less. Of course Twitter itself is just a rip-off of Haiku, which has limited poets to 17 syllables for centuries. Unfortunately, most tweets are not so clever and make little use of seasons, which hard-core Haiku fans consider essential. Still, we get the occasional gems from Twitter or Facebook and I find it hysterical that Silvio writes on his wall "Le voci di mie dimissioni sono destituite di fondamento" and 510 people like his comment and 465 people make comments and 178 people share it - all in 15 minutes or less and $100Tn worth of Global equities jump up and down 1%, giving Berlusconi the record writing rate of $110Bn per word! The Post-Information Age has rumors driving the stock market as we prove the old newspaper adage that "a rumor can run around the World before the truth can get its boots on." Faster information gives us faster rumors but not faster Truth - truth takes time but most market participants, egged on by the MSM, would rather be first than right and that's why we've had 3 months of wildly swinging markets in which we actually just finished right back where we began. That's why I pointed out to Members last week that the best way to play this market is to day-trade the ranges or simply ignore all the BS and just keep selling premium outside the range to the endless supply of suckers who think this time will be different (see Stock World Weekly for a full summary of last week's positions and a view of the week ahead). We went long in early morning Member Chat on the rumor that Berlusconi was resigning and the Dow futures popped from 11,780 to 11,920 but we were forced to bail at the top when the PM updated his facebook status to "not resigning" although the Futures have held most of their gain (back to about Friday's close) while the EU futures have gone from down 2% to slightly positive.
Thanks to Papandreau's resignation as well as rumors of Berlusconi's resignation - it does look like (8:15) we will avoid retesting Friday morning's lows but that's a no-prize until we prove we can make progress back to our 5% lines of Dow 12,170, S&P 1,235 and Nas 2,603 as well as the Must Hold lines of NYSE 7,866 and Russell 774, both of which failed last week, as did S&P 1,235 so we'll be watching those indexes very carefully this week along with the Dollar - which must fail that 77 line in order for our indexes to pop and that's something the BOJ (remember Japan?) does NOT want to see. Speaking of things that people don't want you to see - kudos to Barry Ritholtz for summarizing "The Big Lie" this weekend, in which he asks:
This article was sparked off by Mayor Bloomberg's comments on Friday in which the Mayor parroted the Fox talking points saying:
New Deal's Mike Konczal takes this apart point by point so I won't bother but it's neatly summarized in his statement: "It seems there are people who can't accept that some markets, particularly financial ones, are disastrous when completely unregulated — and thus find any far-fetched excuse to blame the government instead." He goes on to list 6 facts to dispute this claim that will, unfortunately, be completely ignored by Conservative twits. Welcome to Post-Information Age Investing! Unfortunately it comes connected to a Post Information Global Government that is just as clueless and swings back and forth in their "opinions" as much as the markets (perhaps in reaction to the markets, which they are obsessed with).
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| Gold Attempting to Break above Channel Resistance Posted: 07 Nov 2011 08:41 AM PST courtesy of DailyFX.com November 07, 2011 08:01 AM Daily 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. Trading above there would negate the bearish bias and require a reassessment of the situation.” Gold has popped above the channel intraday – a daily close above would force a review of the larger trend. Latest Video Other TA Articles...
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| Graham Summers’ Weekly Market Forecast (Back Into the Fire Edition) Posted: 07 Nov 2011 08:29 AM PST
Stocks continue to remain in la-la land. I really cannot find another way to put it. Europe has now gone from a relatively small problem (Greece) to a HUGE problem (Italy).
To put this shift into perspective, Greece is the 11th largest economy in Europe. Worldwide exposure to Greece's debt is roughly $280 billion. In contrast, Italy is the third largest economy in Europe and the third largest bond market in the world. Global exposure to Italy's debt is north of $800 billion. It's already taken down one firm (MF Global), others are coming too.
That's what I mean by a big problem.
It is now clear that Italy would have already posted several failed bond auctions if not for direct intervention from the European Central Bank (ECB). Worse still, despite the interventions, Italian bonds continue to implode with the 10-year now yielding over 6% (Germany's 10 year yields 1.78%).
The whole thing is quite reminiscent of 2008, when it took the market two weeks to figure out that Lehman's bankruptcy had catastrophic implications. MF Global has now gone under, Italy is fast losing control of its bond market, and stocks look to have likely topped last week.
I believe we have likely put in a top last week. We've already broken back below the 200-DMA on the S&P 500. Once we break below 1,225, we're back into Crisis mode.
Much of this hinges on the Euro which looks to have bounce up to "kiss" resistance at 138 and is now ready to roll over to 135 in short order.
As goes the Euro, so do stocks. Speaking of which, stocks are expensive based on their near perfect correlation to the Euro as well:
My general view remains as follows: we've had a brief final hurrah in the risk-on trade (stocks up, commodities up, Dollar down) due to rumors and hype all of which have proven to be unfounded or simply desperation from those who need stocks higher.
Meanwhile, behind the scenes the financial system continues to break down in a big way. The EFSF deal has proven to be a dud before it even passes, Merkel and Sarkozy have lost all credibility as problem solvers, and Italy lurches ever closer to providing a real systemic disaster.
Again, the issues in Europe are ANYTHING but solved. This is why the credit markets are already anticipating more Greek haircuts as well as ever increasing systemic risk.
If you think I'm over-reacting, consider that the EU is now talking about trying to use various countries' Gold (Italy and Germany) as collateral for bailout schemes.
Folks, when countries are openly admitting that the only real capital they have is Gold, then they're admitting that paper money, particularly the debt-based bailouts, are no longer effective at solving the financial system's problems.
Heck, why do you think China just imported a record amount of Gold? Because they think we're out of the woods? Weren't they the ones who were supposed to save Europe?
The reality is that the powers that be (the Federal Reserve and ECB) are fast losing control of the system. Bernanke's already admitted he hasn't got a clue how to solve the financial system's problems. The Bank of England says we're facing the greatest financial crisis in history. Even the IMF has warned that we're heading towards a global financial meltdown.
If you've not already taken steps for what's coming, the time to do so is NOW before the real mess begins.
On that note, if you're looking for specific ideas to profit from this mess, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.
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Good Investing!
Graham Summers
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| Gold Daily and Silver Weekly Charts Posted: 07 Nov 2011 08:27 AM PST |
Silver did what was expected of it last week, by reacting back to support in the $33.50 area, although it very briefly touched $32 intraday on Tuesday, and then, also as expected it bounced back. On the 4-month chart the action last week looks like a normal reaction, that may be a bull Flag, within a young uptrend that was signalled by the clear break above important resistance in the $33 area, which marked the top of the now completed intermediate base pattern.
On Friday, a gun battle in southwest Colombia ended with the death of Alfonso Cano, leader of the Revolutionary Armed Forces of Colombia — better known by its Spanish acronym, FARC:
Many former FARC revolutionaries have given up the fight and decided to work within the system.
Still, along with last month's passage of a trade agreement with the United States, we can't help but see Colombia emerging as a new hide-out for capitalists in the Western Hemisphere.
Let's try something that would have seemed outrageous a few years ago. Let's count Colombia's blessings:
We'd be remiss if we failed to point out the blowback from U.S. intervention in Colombia.
Halfway around the world, it looks like the bond vigilantes have now shown up on Italy's doorstep as a new week of the euro-drama begins.
"Greece is a problem for the European common currency. But Italy could be a catastrophe," says a report in the Germany newsweekly Der Spiegel, spotted by our currency trading specialist Abe Cofnas.
Here's an intriguing undercurrent to the euro crisis — the amount of talk about gold that's come up in the last 24 hours.
Euro fears have given a lift to the dollar price of gold. The bid is up to $1,782. Silver is also perking up, to $34.59.
Oil is knocking at the door of $95 a barrel. The spot price, at last check, was $94.98, a three-month high.
"I don't see natural gas prices getting any traction, as long as the shale gas revolution is enjoying such success," says our Chris Mayer, who even while 
U.S. stocks are meandering. At one point this morning, the major indexes were up half a percent. Now they're down half a percent.
As the surveillance society digs its tentacles further into American society, we see that several big cities are outfitting their police officers with micro video cameras.
We're not sure what to make of anything when people who live in the Hamptons are launching their own Occupy movement, so we introduce the following without comment:
"What, in your mind," a reader inquires, "is the best way to invest in precious metals?"
"I may belong to the luckiest generation," a reader writes, winding down last week's intergenerational food fight in the mailbag. "I graduated from high school in 1955. I lived at home, got a mechanical engineering degree from Georgia Tech for $200 per year, including books and tuition.
"Those guys doing 'bankstas' in the video on Friday are NOT dorks!" writes a reader taking issue with us. "They are actually quite funny, and it's a cool YouTube piece. Where's your sense of humor?!"
Unlike Greece, we cannot afford to dismiss the various rumors coming out of Italy, but that certainly doesn't mean we're going to let it control our investing decisions. Cashy and Cautious remains our stance and we held a bit bearish into the weekend in anticipation that the EU was more likely to get worse than better over the weekend. 
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