Gold World News Flash |
- Gold, GDX, and GDXJ Tactical Update
- Michael Pento - Fed Members Think QE3 Absolutely Necessary
- Gold Seeker Closing Report: Gold and Silver End Modestly Lower
- Action Alert!!! Banks told by the FED to make room for New Blue Dollar?
- MF Global Bankruptcy Could Rattle Silver Market for Days
- Greek Half-Default Leaves Trillion Dollar Market in Limbo
- James Turk Interview With Eric Sprott On, You Guessed It, Gold
- Max Keiser: Time to Get The Hell Out of Dodge
- The Andrea Shea King Show: Ann Barnhardt Skewers MF Global and John Corzine
- Barclays Says Italy Is Finished: "Mathematically Beyond Point Of No Return"
- Barclays Says Italy Is Finished: "Mathematically Beyond Point Of No Return"
- In The News Today
- The Gold Price Closed Today at 1,798.40 Up 0.5%
- Berlusconi Set to Resign as the World Focuses on Italy / Gold Rises to $1798.40 / Silver: $35.14
- Chinese Gold Buying Moves Markets
- Bloomberg: Silver Arrow's Groenewegen on Euro, Gold
- The Most Dangerous Woman in America
- Vietnam's New Move Towards Gold Prohibition
- The Berlusconi Bash
- US Poverty Stats: Where the Feds Are At Fault
- Gold Support at former Resistance and Trendline
- Is It M&A Season for Big Oil?
- ECB 'Inaction' Succeeds In Doing What Nobody Has Achieved In Decades! Sending Risk Soaring
- ECB 'Inaction' Succeeds In Doing What Nobody Has Achieved In Decades! Sending Risk Soaring
- Europe is dumb enough to have lost its gold, Farage tells King World News
- China’s Gold Grab
- Gold Daily and Silver Weekly Charts - La Douleur - Berlusconi Boogie Woogie
- Germany’s out of luck. They’ll never get the 1600 tonnes held in NYC back.
- Welcome to the Third World, Part 3: Disappearing Pensions
- King interviews Embry, GoldMoney interviews Sprott
| Gold, GDX, and GDXJ Tactical Update Posted: 08 Nov 2011 05:28 PM PST Graceland Update
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| Michael Pento - Fed Members Think QE3 Absolutely Necessary Posted: 08 Nov 2011 04:01 PM PST  With gold and silver consolidating recent gains, today King World News interviewed Michael Pento, of Pento Portfolio Strategies. When asked what the central planners are up to and how it will impact markets going forward, Pento responded. "I see that the ECB is going to be brought more and more to the fore in trying to bail out the insolvent countries. I'm watching the yields on the Italian 10 year, which was below 4% a year ago, march all the way up to 6.7% today. And I think maybe the global stock markets are on opium, a collective opium den."
This posting includes an audio/video/photo media file: Download Now | ||
| Gold Seeker Closing Report: Gold and Silver End Modestly Lower Posted: 08 Nov 2011 04:00 PM PST Gold fell $13.35 to $1783.95 in Asia before it rose to see a $5.52 gain at $1802.82 by early afternoon in New York, but it then fell back off rather markedly in the last few hours of trade and ended with a loss of 0.76%. Silver fell to $34.48 in Asia before it climbed to as high as $35.318 in New York, but it also fell back off in late trade and ended with a loss of 0.11%.
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| Action Alert!!! Banks told by the FED to make room for New Blue Dollar? Posted: 08 Nov 2011 03:07 PM PST  Action Alert!!! Banks told by the FED to make room for New Blue Dollar?
This posting includes an audio/video/photo media file: Download Now | ||
| MF Global Bankruptcy Could Rattle Silver Market for Days Posted: 08 Nov 2011 01:33 PM PST It now appears that the 200 year old trading and processing firm MFGlobal will go into bankruptcy following rumors that the firm did not have enough capital on hand to protect accounts. The company, which has seen its share price tumble by more than 85% this year, is expected to send several waves through the commodities market, mostly due to its expansive reach. Through a restructuring plan that would allow the CME Group to go public, the operator of major global exchanges privatized market-making and clearing functions to companies like MF Global. Earlier on Monday, it was reported that smaller firms which routed orders to MF Global for batch processing were experiencing difficulties placing trades. Later, it was made public that MF Global would not process new trades, and instead only allow for the liquidation of investments held by the firm on behalf of clients. Primary Dealer Lost The size and scope of MF Global is best understood by one of its roles in one o...
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| Greek Half-Default Leaves Trillion Dollar Market in Limbo Posted: 08 Nov 2011 01:32 PM PST The European Debt Crisis seems to have found resolution. Those holding Greek securities will have to tolerate a one-half reduction in the value of their securities, essentially allowing Greece to halve its current debt overnight. Questions linger about Greece's ability to pay, and some are suggesting that the change might not produce immediate benefits; a write down will just encourage investors to demand greater returns when new securities come on the market. In at least one market, however, Greece's debt problem seems to have manifested internationally. Often described as the sovereign debt derivatives market, buyers and sellers agree to insure one another on the possibility of default for sovereign debt. In buying and selling this insurance, investors can essentially hedge risky bets with private insurance. However, there seems to be a bit of a problem; the market for credit default swaps wasn't designed to handle half-defaults. The market provides for buy...
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| James Turk Interview With Eric Sprott On, You Guessed It, Gold Posted: 08 Nov 2011 01:11 PM PST Eric Sprott, Chairman of Sprott Asset Management, and James Turk, Director of the GoldMoney Foundation, meet in Munich and talk about the Munich Precious metals conference (Edelmetallmesse). They comment on Eric Sprott's speech at the conference and how increasing interventions by central banks, from zero interest rates to money printing and bond buying have completely distorted the financial markets. Other discussion topics include the choices between austerity and increasing stimulus and how both will bring on a meltdown, whether bankruptcy or hyperinflation brought on by money printing. They talk about the huge leverage in the banking system and the risk inherent in the system. People are only now starting to understand counterparty risk. They explain that 20-to-1 and even higher leverage is common in the banking system. They talk about the disparities between the physical market and the paper silver markets. Eric talks about supply and demand and how the upward pressures on silver price from demand growing much faster than supply are not being accurately reflected. A 900 million ounce silver supply simply cannot cope with a 380 million ounce increase in demand and maintain current prices. Eric also explains that investment sales of silver are 50 to 1 in volume compared to gold and that this means a decreasing gold/silver ratio. Also under discussion is Sprott's analysis which shows that the US government, with a GDP of 15 trillion, has liabilities of almost 80 trillion and that these promises will be broken just as the Greek government is breaking its commitments. Lastly, the two talk about the short-term focus of political decisions and the bad omens for the dollar as a world reserve currency. Kicking the can down the road is increasingly not an option for bankrupt governments, as even the bond markets are increasingly uncooperative with new stimulus efforts. As an example the recent failed attempt by the EFSF to raise 3 billion. They talk about the IMF creating $280 Billion SDRs out of thin air and ask whether that will keep the party going a bit longer. This interview was recorded on November 4th 2011 in Munich. Courtesy of Gold Money
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| Max Keiser: Time to Get The Hell Out of Dodge Posted: 08 Nov 2011 12:43 PM PST Part 1: Alex also talks with broadcaster, film-maker, and former equities broker Max Keiser about the Greek debt crisis and its ramifications for Europe and the world economy as a whole. Keiser has made a number of predictions that have come to pass, including the 2008 collapse of Fannie Mae and Freddie Mac, the break-down of Iceland's economy in 2008, and that sub-prime mortgage-backed securities would be the cause of recession in 2008.
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| The Andrea Shea King Show: Ann Barnhardt Skewers MF Global and John Corzine Posted: 08 Nov 2011 12:32 PM PST Ann Barnhardt of Barnhardt Capital Management schools the audience on little Johnny Corzine and the MF Global meltdown. MF Global looks like just another failure on Wall Street but Barnhardt has other ideas–it doesn't take much of an investigator to connect these dots, but just in case, we've got a Texas cattleman, and two traders from New York and Chicago who'll be calling in to add their two cents to Ann's take on it all.
Listen to internet radio with Andrea Shea King on Blog Talk Radio
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| Barclays Says Italy Is Finished: "Mathematically Beyond Point Of No Return" Posted: 08 Nov 2011 12:13 PM PST Euphoria may have returned briefly courtesy of yet another promise for a resignation that will likely not be effectuated for weeks or months, if at all, and already someone has done the math on what the events in the past several days reveal for Italy. That someone is Barcalys, the math is not pretty, and the conclusion is that "Italy is now mathematically beyond point of no return." Summary from Barclays Capital inst sales:
The broader referenced report can be found here. And the assocaited powerpoint is below:
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| Barclays Says Italy Is Finished: "Mathematically Beyond Point Of No Return" Posted: 08 Nov 2011 12:13 PM PST
Euphoria may have returned briefly courtesy of yet another promise for a resignation that will likely not be effectuated for weeks or months, if at all, and already someone has done the math on what the events in the past several days reveal for Italy. That someone is Barcalys, the math is not pretty, and the conclusion is that "Italy is now mathematically beyond point of no return." Summary from Barclays Capital inst sales:
The broader referenced report can be found here. And the assocaited powerpoint is below:
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| Posted: 08 Nov 2011 12:01 PM PST Jim Sinclair's Commentary Sure, and it could be tomorrow or a month from now. Euroland makes a fool of themselves almost daily. The Fed is hiding, hoping it will all go away, but it will not. That is what the gold trend is telling you. Deutsche Bank on Europe: 'It's Not Inconceivable That We Continue reading In The News Today
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| The Gold Price Closed Today at 1,798.40 Up 0.5% Posted: 08 Nov 2011 11:34 AM PST Gold Price Close Today : 1,798.40 Change : 8.10 or 0.5% Silver Price Close Today : 3513.00 Change : 33 or 0.9% Platinum Price Close Today : 1,670.60 Change : 15.10 or 0.9% Palladium Price Close Today : 677.15 Change : 15.35 or 2.3% Gold Silver Ratio Today : 51.19 Change : -0.24 or 1.00% Dow Industrial : 12,068.39 Change : 85.15 or 0.7% US Dollar Index : 76.94 Change : 0.03 or 0.0% Franklin Sanders has not published any commentary today, he will be away until 9th November. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2011, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. 
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| Berlusconi Set to Resign as the World Focuses on Italy / Gold Rises to $1798.40 / Silver: $35.14 Posted: 08 Nov 2011 11:16 AM PST by Harvey Organ: Good evening Ladies and Gentlemen: Gold closed today up $8.10 to $1798.40 as the bankers threw everything at the comex today trying to stop gold's advance beyond the 1800 dollar mark. There is no question that the bankers set this line in the sand as their ultimate defense shield. Silver also blew past the magical 35 dollar barrier with ease closing at $35.14. However the clueless bankers raided in the access market where the counterparties are few: As of 4:30 est as I write this, the gold price is as follows: $1785.60 Silver is as follows: $34.96 Read More @ HarveyOrgan.Blogspot.com
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| Chinese Gold Buying Moves Markets Posted: 08 Nov 2011 11:07 AM PST by Addison Wiggin, DailyReckoning.com:
The spot price has oscillated between $1,790 and $1,800 for the last 24 hours. Silver, meanwhile, is approaching its own round-number threshold. At last check, the bid was a few pennies below $35. Ordinary Chinese are buying up gold in record quantities… at least if imports from Hong Kong are any indication. The Chinese government is very careful not to disclose its gold imports… so the best we have to go on are imports via Hong Kong. And those numbers reached a record 56.9 metric tons in September. Read More @ DailyReckoning.com
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| Bloomberg: Silver Arrow's Groenewegen on Euro, Gold Posted: 08 Nov 2011 11:03 AM PST | ||
| The Most Dangerous Woman in America Posted: 08 Nov 2011 11:02 AM PST by Simon Black, Sovereign Man:
Christina Romer is the most dangerous woman in America right now. As an economics professor at the University of Berkeley, she's charged with educating the next generation of productive citizens. She also formerly chaired the Council of Economic Advisors under President Obama. One would think that a person with that level of influence would have a bit of sense. One would think. Yet Romer rarely fails to disappoint. In a recent New York Times editorial entitled, "Dear Ben: It's Time for Your Volcker Moment," Romer publicly tries to goad Ben Bernanke into doing MORE to fight the great contraction. It's not enough that Mr. Bernanke has expanded the money supply by an amount never before seen in the history of the world. It's not enough that he's nearly exhausted every policy tool at his disposal. It's not enough that global confidence in the dollar is fading rapidly.
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| Vietnam's New Move Towards Gold Prohibition Posted: 08 Nov 2011 10:55 AM PST by Roman Baudzus, GoldMoney.com:
After this decree by the country's central bank, Vietnamese experts are warning that there will be a surge in the production of counterfeit gold bars. Since spring of this year rumors have been circulating that the Vietnamese government will eventually ban all gold production in the country. The state bank of Vietnam has repeatedly devalued the dong in relation to the US dollar and other major currencies.
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| Posted: 08 Nov 2011 10:11 AM PST [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Maybe that is a bit of an overexaggeration but it was the news that Italian Prime Minister Berlusconi was stepping down, resigning his position leading up the government, that sent the equity markets into an upside tizzy as giddy bulls threw caution to the wind and jumped out of anything resembling a safe haven and back into stocks. Down went the US long bond, a full point and a half, and down went gold after it had pushed solidly above the psychological resistance level of $1800. Even the mining shares had been moving higher adding onto yesterday's gains before they too gave way under the selling pressure unleashed into gold. Silver actually was functioning a bit more like a safe haven earlier in the session, drawing buying on off the stronger gold price before it moved lower when gold broke down and could not hold onto its gains. However, the return of speculative inflows (RISK ON) into ...
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| US Poverty Stats: Where the Feds Are At Fault Posted: 08 Nov 2011 09:31 AM PST Bill Bonner View the original article. November 08, 2011 02:00 PM Remember our report from yesterday: "Generation Jobless" was how The Wall Street Journal put it. Here's more. From the blog "Economic Collapse:" 19 Statistics About The Poor That Will Absolutely Astound You. #1 According to the US Census Bureau, the percentage of "very poor" rose in 300 out of the 360 largest metropolitan areas during 2010. #2 Last year, 2.6 million more Americans descended into poverty. That was the largest increase that we have seen since the US government began keeping statistics on this back in 1959. #3 It isn't just the ranks of the "very poor" that are rising. The number of those just considered to be "poor" is rapidly increasing as well. Back in the year 2000, 11.3% of all Americans were living in poverty. Today, 15.1% of all Americans are living in poverty. #4 The poverty rate for children living in the United States increased to 22% in 2010. #5 There are 314 counties in the United States ...
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| Gold Support at former Resistance and Trendline Posted: 08 Nov 2011 09:31 AM PST courtesy of DailyFX.com November 08, 2011 10:50 AM Daily Bars Prepared by Jamie Saettele, CMT Gold has broken through what was previously viewed as a corrective 3 wave channel from the low. Yes, it is possible that the rally from the September low does compose a corrective advance but I am tired of fighting the tape. Former resistance at 1752 and the steep trendline that extends off of the October and November 1 lows are support. Bulls are firmly in control above 1680. Latest Video Other TA Articles...
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| Is It M&A Season for Big Oil? Posted: 08 Nov 2011 09:22 AM PST Author: Vedran Vuk Synopsis: Even as major oil companies enjoy high profits, declining production is putting pressure on them to acquire assets that will keep production up. An interesting buying season seems likely. Dear Reader, It's fascinating that so many investors realize that gold matters, while many others try to knock it down. According to the naysayers, it's just a barbaric metal sought out by crazy gold bugs. Though this view has become less common, it's still present. And every time gold retreats, the media come out with article after article proclaiming the end of gold. With the price tipping over the $1,800 mark, the critics have been proven wrong again. Just think about how important gold has become to the market. When I open up the Bloomberg website, I'm greeted by the prices of only a few indices and commodities: the DOW; S&P 500; Nasdaq; oil; the 1...
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| ECB 'Inaction' Succeeds In Doing What Nobody Has Achieved In Decades! Sending Risk Soaring Posted: 08 Nov 2011 08:59 AM PST Having seen the supposed smart money miss out on the October rally in US equities, the last few days have once again surprised many with US equity performing similarly each day and ramping to close at its highs - each time notably ahead of credit markets and broad risk markets. From the early October lows, we have seen the rotation from US to Europe reverse with the last few days see US equities dramatically outperform European. We wonder, somewhat prosaically, whether the relative inaction of the ECB with regard to BTP intervention since early Friday morning is what pushed Berlusconi over the edge and US-Europe divergence to extremes as Draghi flexes the ECB's considerable muscles. Critically, we see low volume ramps in the afternoons which leave every other market trailing in the dust - only to leak back in the overnight sessions. Couple this extraordinary action in S&P futures with the MF Global SIPC news and we wonder what liquidation will impact next?
Initially we saw European equities outperforming US as we squeezed off the lows in early October. The last few days have seen recession fears rise and systemic risk explode in the Euro zone which appears to have forced rotation into the US equity market - which of course will remain unscathed. However, it is the similarity of the performance of the last few days that is wonderful - presented with little comment except to say - with all the fund flows and the relative cheapness of HY as an asset class still, we are shocked it has not led this risk-on rally - or perhaps it provides just the right amount of reality to keep us from chasing tails. Friday:
Monday:
And Today:
And to put the strength in ES into perspective - we note the difference between CONTEXT (the broad risk-asset based index) and ES grew very large this afternoon as FX, TSY, commodity, and credit markets golf-clapped while equities screamed...
Swissy rallied notably today, as did JPY but for much of the afternoon EUR tracked very flat and DXY went nowhere. TSYs were sold relatively hard and the 2s10s30s fly humped quite significantly from 71bps to 79bps - a major driver of risk today. Secondary bond markets saw notable net-selling though between the sell-off in TSYs and new issuance this is understandable. Interestingly, Financials were the only sector that saw net buying today - we have been pointing to the underperformance of financials CDS relative to stocks for a few days now and while today's action was heavy, we suspect the basis traders were back in town - buying bonds against buying protection as the spread has opened up (and playing in sovereign basis has too much event risk). There was also clear duration-reduction across maturities. The basis trade perspective on CDS vs bonds in financials could also help explain the very large divergence between equities and CDS for some major financials recently - for example Morgan Stanley:
Gold fell post-Berlusconi (after cracking $1800) and Oil spurted to $97 in the late trading. Charts: Bloomberg
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| ECB 'Inaction' Succeeds In Doing What Nobody Has Achieved In Decades! Sending Risk Soaring Posted: 08 Nov 2011 08:59 AM PST
Having seen the supposed smart money miss out on the October rally in US equities, the last few days have once again surprised many with US equity performing similarly each day and ramping to close at its highs - each time notably ahead of credit markets and broad risk markets. From the early October lows, we have seen the rotation from US to Europe reverse with the last few days see US equities dramatically outperform European. We wonder, somewhat prosaically, whether the relative inaction of the ECB with regard to BTP intervention since early Friday morning is what pushed Berlusconi over the edge and US-Europe divergence to extremes as Draghi flexes the ECB's considerable muscles. Critically, we see low volume ramps in the afternoons which leave every other market trailing in the dust - only to leak back in the overnight sessions. Couple this extraordinary action in S&P futures with the MF Global SIPC news and we wonder what liquidation will impact next?
Initially we saw European equities outperforming US as we squeezed off the lows in early October. The last few days have seen recession fears rise and systemic risk explode in the Euro zone which appears to have forced rotation into the US equity market - which of course will remain unscathed. However, it is the similarity of the performance of the last few days that is wonderful - presented with little comment except to say - with all the fund flows and the relative cheapness of HY as an asset class still, we are shocked it has not led this risk-on rally - or perhaps it provides just the right amount of reality to keep us from chasing tails. Friday:
Monday:
And Today:
And to put the strength in ES into perspective - we note the difference between CONTEXT (the broad risk-asset based index) and ES grew very large this afternoon as FX, TSY, commodity, and credit markets golf-clapped while equities screamed...
Swissy rallied notably today, as did JPY but for much of the afternoon EUR tracked very flat and DXY went nowhere. TSYs were sold relatively hard and the 2s10s30s fly humped quite significantly from 71bps to 79bps - a major driver of risk today. Secondary bond markets saw notable net-selling though between the sell-off in TSYs and new issuance this is understandable. Interestingly, Financials were the only sector that saw net buying today - we have been pointing to the underperformance of financials CDS relative to stocks for a few days now and while today's action was heavy, we suspect the basis traders were back in town - buying bonds against buying protection as the spread has opened up (and playing in sovereign basis has too much event risk). There was also clear duration-reduction across maturities. The basis trade perspective on CDS vs bonds in financials could also help explain the very large divergence between equities and CDS for some major financials recently - for example Morgan Stanley:
Gold fell post-Berlusconi (after cracking $1800) and Oil spurted to $97 in the late trading. Charts: Bloomberg
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| Europe is dumb enough to have lost its gold, Farage tells King World News Posted: 08 Nov 2011 08:37 AM PST 4:35p ET Tuesday, November 8, 2011 Dear Friend of GATA and Gold: European Parliament member Nigel Farage, a member of the United Kingdom Independence Party, today tells King World News that Europe is full of unelected officials, that none of them is in charge or knows what's going on, and that the European central bankers are stupid enough to have leased out most of their gold. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/8_Ni... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf 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 Prophecy Platinum Drills 120.9 Meters Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) has announced the drill results received from its 2011 drilling Wellgreen platinum group elements, nickel, and copper project in the Yukon Territory. Borehole WS11-188 encountered 457 meters of mineralization grading 0.47% nickel equivalent (including 0.72 grams per ton platinum, paladium, and gold) from surface to the footwall contact. Within this larger swath of mineralization, the hole encountered a high-grade section of 17.8 meters of 3.14 grams per ton platinum, palladium, and gold, 1.03% nickel, and 0.74% copper (1.77% nickel equivalent). The hole was drilled completely outside of current resource boundaries, between the East Zone resource and the West Zone resource that was reported in the company's press release no July 14, 2011. The high-grade intercept located between the two resources not only demonstrates that the East and West Zone resource form a single, geologically contiguous body but also indicates that the higher-grade material in the East Zone continues to the west and at depth at Wellgreen. For drill result tables and maps, please see the company's full press release here: http://www.prophecyplat.com/news_2011_sep26_prophecy_platinum_wellgreen_...
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| Posted: 08 Nov 2011 08:12 AM PST Addison Wiggin – November 8, 2011
The spot price has oscillated between $1,790 and $1,800 for the last 24 hours. Silver, meanwhile, is approaching its own round-number threshold. At last check, the bid was a few pennies below $35.
The Chinese government is very careful not to disclose its gold imports… so the best we have to go on are imports via Hong Kong. And those numbers reached a record 56.9 metric tons in September. Even more notable: The total for July, August and September is about 140 metric tons. The total for all of last year was 120. And the buying spree isn't over yet. "Analysts expect the September import surge to continue until the end of the year," says the Financial Times, "as Chinese gold buyers snap up gold in advance of Chinese New Year, China's key gold-buying period." This is the "love trade" in gold that U.S. Global Investors chief and Vancouver favorite Frank Holmes speaks of. While North Americans and Europeans buy gold out of fear, people in the Middle East, India and China buy it because it's cultural tradition.
"Chinese bank deposits offer negative real interest rates, and other outlets for investment have been limited as Beijing has curbed property sales and the stock market has performed poorly."
Right now, the company is keeping the location of the mine close to the vest. "It is a relatively large-sized project" in Central Asia, according to Jerry Xie Quan, vice president of subsidiary China Gold International Resources Corp. Gold bugs might remember this subsidiary by its former name — Jinshan Gold Mines. China acquired a 42% stake in 2008. And this is only the beginning of the acquisition pipeline: "Xie said China Gold was also negotiating potential mine acquisitions in Canada and Mongolia," reports the South China Morning Post, "which are either in advanced development or close to starting production." China is already the world's biggest gold producer. And it's well on its way to toppling India as the largest gold consumer. According to J.P. Morgan figures, retail bullion demand from China and India amounts to 2,000 metric tons per year — about 85% of worldwide annual production.
People in the know believe the government is taking all the country's newly mined gold into its reserves without formally declaring it. Put that together with all the purchases by individuals and, according to Lawrence Williams at Mineweb.com, "the combined offtake… will soon be getting perhaps close to one-third of total world gold output and rising ever faster." "The logical conclusion," he goes on, "is that China is building its total reserves within the country in terms of both its government holdings and as an investment for individuals, as it is convinced that the only way for the gold price to go is upward, and perhaps the only way for the US dollar and euro to go is downward."
"Given how wobbly the world is," Rule tells King World News, "I think the bias in gold is higher because the bias in fiat currencies is lower." Which makes this an ideal time to pick up a 24-karat American Gold Buffalo — the purest form of gold available. We still have a limited supply available for a select few readers. As of this morning, only 71 remain. Get yours here.
First, traders were nervous, as they anticipated a budget vote in parliament. Then they were relieved that the budget passed and lecher-in-chief Silvio Berlusconi got his way. Then they got nervous again when they realized he got his way without a parliamentary majority. Oy… the euro firmed up since to $1.378… and dragged the dollar index below 77.
Ho-hum.
"Yes, I agree that many stocks are cheap, but they don't exist in a vacuum." "It reminded me of the 2007 Congress, when most presenters were bullish ahead of a recession (except Bill Ackman, who warned of the time bombs at MBIA, and David Einhorn, who warned of the risk at Lehman Bros.)." "In October 2007, stocks looked cheap because earnings were peaking. In recessions, stocks always get cheaper… especially large blue chip companies with limited growth opportunities. Most of them deserve low valuations, simply because earnings growth in the coming years looks much more difficult than in the past." "Even if the decline in earnings turns out not as deep and lasting as expected, stock prices still fall simply because the market is not good at anticipating where earnings will bottom out." "There is plenty of opportunity on both the short and long sides of this market," Dan concludes, "but patience is required." That patience paid off big the last time Dan saw these market conditions in 2007-08 — gains of 161%, 173%, even 462% on a flailing Lehman Bros. For his expert guidance, look here.
The drop in August was 1.1%. Ditto in September. Home prices are now 4.4% below year-ago levels. "Distressed sales remain a significant share of homes that do sell," according to CoreLogic chief economist Mark Fleming, "and are driving home prices overall."
In several metro areas, the figure is over 50% — including Atlanta, Tampa, Sacramento, and Riverside, Calif.
"As was the case in September," reads the NFIB report, "the 'gain' in the index was primarily a result of less-negative views about the prospects for real sales and business conditions. Hardly the basis for strong economic growth."
Among the people he's met on this trip: Andrew Stotz, a strategist at Kim Eng Securities. "The gist of Mr. Stotz's latest view," says Chris, "is that Thai stocks are attractive at about 11 times earnings, with low debt, hefty dividends (near 4% yield) and healthy returns on equity (around 20%). Those are the averages. A little stock picking, of course, can you get you even more enticing goods." "Plus, foreign ownership of Thai stocks is down to where it was in 2009, at around 35%. This may be a contrarian indicator, as foreign investors owned 41% of the market before the crash in 2008. And contrary to the Western world, Thailand has low debt levels. No sovereign debt crisis here!" "According to Stotz, historically, Thai stocks do well from this 9-12 price-earnings ratio range, with an 18% return in the year following and an 11% annual return over five years." You can play Thai stocks via the MSCI Thailand Index Fund (THD). But Chris says that's a "blunt instrument." He's discovered a far more lucrative play for readers of Mayer's Special Situations. We know he's excited about this because he refuses to tell us what it is. The most we can get out of him is, "I can barely believe this opportunity exists." Once his write-up is complete, you can make sure you get it first by signing up for a membership. It's available right now at a handsome discount.
These…  No punch line. No joke. For the first time, the going price of a New York taxi medallion has reached $1 million. Two of them sold at that lofty level last month. Thus have they appreciated 10n-fold since 1985, the first time a medallion cleared $100,000. Gold? Only 6.2 times in that same period. As we explained last summer, taxi medallions are the result of a government-enforced cartel on cab service. New York limits competition by limiting the number of taxi medallions to 13,237. The market can't respond to increasing demand for cabs… and whenever government limits the supply of something, the price inevitably goes up. By the way, Washington, D.C., never got around to enacting the medallion proposal we mentioned a few months ago. The nation's capital, ironically, remains a rare big-city holdout for unfettered enterprise in at least one tiny sector of the economy.
"This is to raise revenue for county social programs. Since it hasn't passed yet, I will have to keep you posted on developments." The 5: You piqued our curiosity. Turns out there are several places in Wisconsin that impose a $10 "wheel tax" in addition to the annual auto registration fee. In Milwaukee, it's $20. And it's not just Wisconsin. Scott County, Tennessee, is looking to impose a $30 wheel tax. Often this is justified as "diversifying the sources of revenue" if property taxes are capped and state aid is diminishing. More real-life proof of the "new taxes and weird fees" we've chronicled for lo these many months. If they haven't hit you yet, we assure you they will. Best prepare yourself so you won't be surprised.
The 5: Ah, but that's the genius of the solution we've developed with the help of a promising young entrepreneur. It's not one of those plastic-y fake-looking "books" that stick out like a sore thumb on the shelf and a skilled thief would go for right away. It's made up to look just like a real book so that it's absolutely indistinguishable from any other book on your shelf. The biggest challenge you'll have is figuring out which book is the hideaway… and even there, we've come up with a unique solution. The bookbinder we're working with is taking copies of Empire of Debt and Mobs, Messiahs and Markets… and stitching them together. We know for a fact no one will ever look in those books! Ha! Still if you're a glutton for punishment… you can collect your faux set right here.
The 5: Hey…
"However, I am not able to continue to receive mailings with models' pictures, and the references to male genitalia." "I would very much like to get the information included in The 5. If you can confine yourselves to the economic task at hand, then reinstate me. Otherwise, my decision, unfortunately, stands." The 5: Hmmn… we're happy to reinstate you. In fact, we're curious to see where you believe we made reference to 'male genitalia.' Euhy. Nor, we're pretty sure, did you pay for your subscription to The 5… we have never received any money for it! Feel free to do so, though, really. Regards, Addison Wiggin P.S. Once in a blue moon, government demonstrates it's capable of responding to the signals of the market. Not often… but when it does, the result can be striking…  The American Buffalo gold coin was the U.S. Mint's response to buyers unsatisfied with the Gold Eagle. Eagles are only 91.67% pure, so some investors opted for the Canadian Maple Leaf and other foreign coins that are 99.99% pure. Thus did the Buffalo make its debut in 2006 — 20 years after the Eagle. A tortoise-slow response to the signals of the market… but in this instance, worth the wait. We have 71 of these awaiting an exclusive subset of our readership. Do you belong to it? You'll know only by clicking here.
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| Gold Daily and Silver Weekly Charts - La Douleur - Berlusconi Boogie Woogie Posted: 08 Nov 2011 08:12 AM PST | ||
| Germany’s out of luck. They’ll never get the 1600 tonnes held in NYC back. Posted: 08 Nov 2011 07:58 AM PST Bundesbank gold location kept secret
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| Welcome to the Third World, Part 3: Disappearing Pensions Posted: 08 Nov 2011 07:25 AM PST One of the things that separate the "rich" world from the rest of humanity is the expectation that a lifetime of work is rewarded with a comfortable retirement. Whether through an employer's pension or 401(K), or government plans like Social Security and Medicare, citizens of the US, Canada, Europe and Japan take it for granted that some baseline income and healthcare benefit is out there waiting for us when we need it. And we plan our saving and investing accordingly, presumably putting away less than we would if our retirement had to be completely self-funded. So imagine our surprise when it turns out that pension plans, from company-specific to federal, don't have nearly enough money to keep their promises. Consider this story on private sector pensions from yesterday's Wall Street Journal:
Some thoughts Clearly there was a scam being run, and the mechanism was the projected rate of return. As stocks, real estate and bonds all soared during the credit bubble decades, pension funds got addicted to 10% annual returns and didn't seem to recognize that those returns would have to revert to mean eventually. As a result they didn't adjust their expectations downward. So now that stocks have literally returned zero for an entire decade and bonds by definition can't earn more than a few percent a year, these pension funds are stuck with widening gaps between what they owe and what they'll have down the road. And they're surprised! "…the fund has adopted a more conservative assumption of 7% going forward." Pension funds hold the majority of their assets in bonds, and US ten-year Treasuries now yield 2%. So how do you get to 7% if half your assets are generating a third of that rate?* The answer is you hope for massive inflation to send stock and real estate prices through the roof. But of course this raises beneficiary living costs and diminishes the real value of future benefits. Looks like a lose-lose from here. As is by now pretty well known, Social Security and Medicare are in even worse shape, with unfunded liabilities totaling somewhere north of $50 trillion. Their cutbacks will dwarf those of the above private plans. The message to First World beneficiaries: Don't expect any plan, government or private, to carry you in comfort through 30 years of retirement. Like most of the rest of humanity, you're on your own. * Of course, had a hypothetical pension fund loaded up on gold and silver a decade ago, they'd be massively overfunded today and would be raising benefits rather than cutting them.
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| King interviews Embry, GoldMoney interviews Sprott Posted: 08 Nov 2011 07:16 AM PST 3:15p ET Tuesday, November 8, 2011 Dear Friend of GATA and Gold (and Silver): Sprott Asset Management's chief investment strategist, John Embry, today tells King World News that gold and silver are down over the last two months even as economic turmoil in Europe has increased. It's market manipulation by government, Embry argues, but it's failing. An excerpt from his interview is posted at the King World News blog here: Meanwhile, GoldMoney's James Turk interviewed Sprott Asset Managment Chairman Eric Sprott at the Munich precious metals conference last week. They discuss excessive leverage and risk in the banking system, the disparity between the paper and physical silver markets, and much more. The interview is 33 minutes long and you can watch it at the GoldMoney Internet site here: http://www.goldmoney.com/video/sprott-turk-munich.html?gmrefcode=gata CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT For Continuous Wealth Creation, the Hera Research Newsletter The life cycles of companies that produce natural resources allow investors to allocate assets among companies at different stages of development and to profit from transitions between stages. Based on natural resource company life cycles, the Hera Research Newsletter maximizes profits through deep, fundamental analysis at each stage of development and by moving gains back to earlier-stage companies in a continuous wealth-creation process. Hera Research covers a pipeline of high-quality natural resource companies at different stages of development. The companies span discovery and production of gold, silver, and platinum group metals, select base metals, oil and gas, green energy, agriculture, rare earth elements, uranium, and more. Discover the unique value of the Hera Research Newsletter by visiting: http://www.heraresearch.com/newsletter.html Or call Ron Hera at 360-339-8541x101. Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Golden Phoenix Signs Definitive Agreement to Acquire and Reopen Santa Rosa Gold Mine in Panama Company Press Release SPARKS, Nevada -- Golden Phoenix Minerals Inc. (OTC Bulletin Board: GPXM) has signed a definitive agreement to acquire a 60 percent interest, with an option to buy an additional 20 percent interest, in the Santa Rosa gold mine in Panama, now owned by Silver Global S.A., a Panamanian corporation. Santa Rosa produced more than 100,000 ounces of gold from 1996 to 1998 before being closed in part to low gold prices, which are now more than five times higher. Golden Phoenix intends to acquire its initial 60 percent interest in Santa Rosa by acquiring 60 percent of the share capital of a recently created company under the name Golden Phoenix Panama S.A., formed to hold and operate the mine. Tom Klein, CEO of Golden Phoenix says: "The agreement establishes a solid framework from which we can advance Mina Santa Rosa to production-ready status." For Golden Phoenix's complete statement, please visit: http://goldenphoenix.us/press-release/golden-phoenix-signs-definitive-ac...
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Gold is knocking at the door of $1,800 for the first time in six weeks. Alas, thus far today, the solitary traveler has been refused entry.
The communist government of Vietnam has announced further moves aimed at controlling the nation's gold market. The state bank of Vietnam has announced that it will cut down the number of gold bar producers that are allowed to legally operate in the country. All companies with less than 500 billion dong in funds will not be allowed to continue their activities. Furthermore, those companies that wish to continue operating will have to prove that they have at least a 25% market share.
Gold is knocking at the door of $1,800 for the first time in six weeks. Alas, thus far today, the solitary traveler has been refused entry.
Ordinary Chinese are buying up gold in record quantities… at least if imports from Hong Kong are any indication.
But now the "fear trade" is becoming a factor in China, too. "Investment demand for gold in China has been particularly strong this year as a hedge against inflation," the FT adds.
Meanwhile, China's state-owned gold miner is on a buying spree of its own. China National Gold Group is about to acquire its first foreign mine.
So what's the endgame? The Chinese government hasn't formally declared its gold holdings since April 2009, when it announced there were 1,054 metric tons.
And so… our friend Rick Rule, now a partner in the Sprott resource investing empire, sees $2,500 gold in the next 12-18 months.
The yield on a 10-year bond in Italy hit another record at 6.74% this morning. Although it has since pulled back, we can feel the crisis in Spaghettiville brewing.
U.S. stock traders appear no more excited by developments in Italy than we are. The Dow's been up 50 points; it's now down 50 points.
"The key theme from the recent Value Investing Congress, writes our short specialist Dan Amoss, "was essentially, 'Yeah, the economy and global banking system is fragile… but stocks are cheap!'"
After steadying for a while, housing prices have fallen for two straight months according to CoreLogic, giving us another whiff of 2007-08.
Meanwhile, 28.6% of home mortgages are now underwater, according to new figures from Zillow.
Small business owners are still gloomy — but not as gloomy as they've been. The optimism index put out by the National Federation of Independent Business moved up to 90.2 in October.
"The Thai stock market is interesting on several levels," writes Chris Mayer, scouting out investing opportunities in a flooded Bangkok. "It's easy to buy Thai stocks."
Here's a quick question before we jump into the mail bag: What asset class has appreciated faster than stocks, or oil… or even gold?
"The talk radio station here," writes a reader from Dane County, Wisconsin, "has informed me the county is considering a new 'wheel' tax. If you own a car and drive in Dane County, you may have to pay a tax on your wheels!
"Thanks for the gold hiding tip," writes a reader about the hollow-book solution we've discovered for readers. "When things get really bad, I'll know right where to look! Ha, Ha! Joking, of course."
"Guys keep up the great work," a reader writes "The young lady featured yesterday was absolutely gorgeous, definitely a 10 on the zipper chatter scale. I must add that your taste in women is much better than your stock picks. LOL!"
"Today I terminated the 5 Min. Forecast," writes another with a different take on things, "which I paid for hoping that it would be a assistance in my financial planning."| 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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