A unique and safe way to buy gold and silver 2013 Passport To Freedom Residency Kit
Buy Gold & Silver With Bitcoins!

Saturday, November 26, 2011

Gold World News Flash

Save Your ASSets First

Gold World News Flash

Will the Use of Gold as Collateral Push the Gold Price Down?

Posted: 27 Nov 2011 01:00 PM PST

Gold Forecaster has for years now pointed to gold's coming monetary role as collateral. We have never believed that a return to the Gold Standard was feasible in the form it was used in last century. We have never believed it would return as day-to-day money. We have always seen its return tied into its use on a global basis, most likely between governments, as we saw under the Bretton Woods system after the Second World War. We have always pointed to a time when it would return to a key monetary position in the global financial system.


The Ready Bullion Boys

Posted: 27 Nov 2011 05:00 AM PST

It's been said Alaska has been discovered four times; first for furs, then fish, gold and finally, oil. Alaska's history has therefore been one of boom to bust to boom. There is no doubt that gold played the major part in the development of Alaska and today precious and base metals are again playing a major role in the state's economy.


The Secular Bear Market and Gold’s A-Wave Advance

Posted: 27 Nov 2011 04:01 AM PST

I have decided to post the weekend premium report to the blog this week. In this report I'm going to take a look at what has transpired and what is likely to come as the third leg down in the secular bear market begins to intensify.


Drilling at Serra Intersects 7m @ 6.10g/t Gold at Coringa Project, Brazil

Posted: 27 Nov 2011 02:00 AM PST

Magellan Minerals Ltd. (TSX-V: MNM) ("Magellan") is pleased to report results from thirteen additional drill holes from the Serra, Meio and Domingo zones at the Coringa project, Brazil. As with previous holes reported from the 2011 diamond drill program, these are all step-out and exploration holes aimed at expanding the existing resources of 269,450oz of gold in the measured and indicated categories (982,291t @ 8.53 g/t), and 98,224oz of gold in the inferred category (327,054t @ 9.34 g/t).


Gold Falls on 'Black Friday', ECB Assistance "Unavoidable" for Belgium, "Funding Stresses & Weak Rupee Weighing on Gold"

Posted: 27 Nov 2011 01:02 AM PST

U.S. DOLLAR gold prices looked set for a second weekly drop in a row Friday lunchtime, after falling as low as $1672 an ounce – 7.2% down on the November high – while stocks, commodities and government bond prices also lost ground as Belgium became the latest country to be sucked into the European sovereign bond crisis.


Currency Wars - Russia Officially Adds 19.5 Tonnes of Gold Reserves in October Alone

Posted: 27 Nov 2011 12:00 AM PST

Gold is trading at USD 1,680.50, EUR 1,268.60, GBP 1,084.30, CHF 1,554.30, JPY 130,130 and RUB 53,210 per ounce. Gold's London AM fix this morning was USD 1,676.00, GBP 1,084.02, and EUR 1,263.86 per ounce. Yesterday's AM fix was USD 1,699.00, GBP 1,094.72, and EUR 1,270.38 per ounce.


Rickards - New Reserve Currency & Roubini Behind the Scenes

Posted: 25 Nov 2011 04:07 PM PST

With markets on the move and twitter wars on the rise, today King World News interviewed KWN resident expert Jim Rickards, senior managing director at Tangent Capital Markets. When asked about his Twitter war with Nouriel Roubini, which revolved around Rickards' advocating a gold standard, Rickards stated, "Yes, Eric, it was a really crazy state of affairs. I was just sitting at my desk last Sunday night, minding my own business, doing a little research, and here comes this tweet from Nouriel Roubini and he more or less throws down the gauntlet. He says, 'Why is Jim Rickards advocating a gold standard in his book "Currency Wars?" Doesn't he know that it caused the Great Depression?' I'm thinking, what is that?"


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

The Coming Collapse of the Middle Class

Posted: 25 Nov 2011 03:50 PM PST

Distinguished law scholar Elizabeth Warren teaches contract law, bankruptcy, and commercial law at Harvard Law School. She is an outspoken critic of America's credit economy, which she has linked to the continuing rise in bankruptcy among the middle-class.

Distinguished law scholar Elizabeth Warren teaches contract law, bankruptcy, and commercial law at Harvard Law School. She is an outspoken critic of America's credit economy, which she has linked to the continuing rise in bankruptcy among the middle-class. Watch the video....


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

In The News Today

Posted: 25 Nov 2011 02:21 PM PST

Jim Sinclair's Commentary

I am always amazed by how bearish people become because of lines and squiggles on their charts at what could easily be the head fake of all time. Personally, gold is the only asset that stands to survive a Euroland unwind. The contagion in the financial sense would be global. Hold

Continue reading In The News Today

Jeffrey Nichols: Gold to Reach $1,850 ? Perhaps Even $1,923 ? by Early 2012!

Posted: 25 Nov 2011 01:52 PM PST

Many market participants are wondering why [gold] is not responding more positively to Europe’s never-ending sovereign debt crisis and other worrisome economic and political developments around the world…Technical analysts say that gold must build more support in the $1,750 to $1,800 an ounce range before it can muster enough strength to sustain a meaningful and lasting rally. Sooner or later, [however,] thanks to a continuously improving fundamental picture, gold will register a sustainable advance above $1,800 an ounce, possibly never again to see prices below this level. [Let me explain why*I believe strongly that that is the case.] Words: 800 So says Jeffrey Nichols ([url]http://www.roslandcapital.com/[/url])*in edited excerpts from his original article*.[INDENT]Lorimer Wilson, editor of [B]www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has further edited ([ ]), abridged (…) and reform...


NY Fed Issues Mea Culpa That Nobody Saw at 6PM on Black Friday

Posted: 25 Nov 2011 01:48 PM PST

NY Fed Issues Mea Culpa That Nobody Saw at 6PM on Black Friday

Courtesy of Lee Adler of the Wall Street Examiner 

In a report released on Black Friday around 6 PM, when nobody is around, let alone paying attention, except for crazy people like me, the NY Fed posted a mea culpa on just how lousy its economic forecasts have been, a function which I had already performed over a year ago (The Fed - Clueless, Delusional, or Both?). The author of the report stated the crux of the failure thusly:

One source for such metrics is a paper by Reifschneider and Tulip (2007). They analyzed the forecast error performance of a range of public and private forecasters over 1986 to 2006 (that is, roughly the period that most economists associate with the Great Moderation in the United States).

On the basis of their analysis, one could have expected that an October 2007 forecast of real GDP growth for 2008 would be within 1.3 percentage points of the actual outcome 70 percent of the time. The New York Fed staff forecast at that time was for growth of 2.6 percent in 2008. Based on the forecast of 2.6 percent and the size of forecast errors over the Great Moderation period, one would have expected that 70 percent of the time, actual growth would be within the 1.3 to 3.9 percent range. The current estimate of actual growth in 2008 is -3.3 percent, indicating that our forecast was off by 5.9 percentage points.

Using a similar approach to Reifschneider and Tulip but including forecast errors for 2007, one would have expected that 70 percent of the time the unemployment rate in the fourth quarter of 2009 should have been within 0.7 percentage point of a forecast made in April 2008. The actual forecast error was 4.4 percentage points, equivalent to an unexpected increase of over 6 million in the number of unemployed workers. Under the erroneous assumption that the 70 percent projection error band was based on a normal distribution, this would have been a 6 standard deviation error, a very unlikely occurrence indeed.

He then went on to enumerate the 3 big reasons the Fed had gotten it wrong:

  1. Misunderstanding of the housing boom. Staff analysis of the increase in house prices did not find convincing evidence of overvaluation (see, for example, McCarthy and Peach [2004] and Himmelberg, Mayer, and Sinai [2005]). Thus, we downplayed the risk of a substantial fall in house prices. A robust approach would have put the bar much lower than convincing evidence.
  2. A lack of analysis of the rapid growth of new forms of mortgage finance. Here the reliance on the assumption of efficient markets appears to have dulled our awareness of many of the risks building in financial markets in 2005-07. However, a March 2008 New York Fed staff report by Ashcraft and Schuermann provided a detailed analysis of how incentives were misaligned throughout the securitization process of subprime mortgages--meaning that the market was not functioning efficiently.
  3. Insufficient weight given to the powerful adverse feedback loops between the financial system and the real economy. Despite a good understanding of the risk of a financial crisis from mid-2007 onward, we were unable to fully connect the dots to real activity until 2008. Eventually, by building on the insights of Adrian and Shin (2008), we gained a better grasp of the power of these feedback loops.

He then added that perhaps the biggest reason for the failure was "complacency," with which I heartily concur, but to which I would also add hubris and stupidity.

At the beginning of the piece the author cited a Turbotax Tim Geithner quote: Our best plan is to plan for constant change and the potential for instability, and to recognize that the threats will constantly be changing in ways we cannot predict or fully understand.

Adding to that the author wrote, "The quotations from Keynes and Geithner at the start of this post capture the importance of constantly striving to ensure that policy is robust to unexpected events. As explained in much of the recent work of the 2011 Nobel Prize-winning economist Tom Sargent, the unexpected events for which policymakers need to make provision have the characteristic of being the most likely unlikely bad event. The collapse in housing prices and its propagation to the economy certainly fit this description."

This is what I would call the "Nobody could have foreseen" fallacy, a tool often used by the professional economist and economic pundit class. I guess that I and the countless thousands of others who frequented this and other bearish websites at the time of the top of the housing bubble, who did foresee what was coming, must be the "nobody" that the pros refer to.

It's good to be nobody or not so good, because even though nobody took precautions, nobody ultimately took the hit. Because in this case, nobody was prepared for what happened, and nobody took steps to both protect and profit from it, while the rest of the Wall Street seers and the Fedheads, who are all somebody, didn't foresee it. As a result somebody got their asses kicked. But that hasn't stopped them, because Uncle Sam bailed them out, spending nobody's money, and nobody's children's and grandchildren's futures to do it. So in that sense, it's better to be somebody, even though somebody initially took the loss that nobody saw coming, until the US government bailed them out on behalf of nobody.

All kidding aside, I wrote the following comment on the NY Fed Liberty Street blog. I don't know if it will still be there in the morning, so here it is.

The excuse that most other professional forecasters didn't foresee it is just that, an excuse. Some professional forecasters did see it. They were derided as Cassandras and dismissed by Wall Street and Fed insiders, who are only beholden to each other, and to their own delusions.

Millions of amateur economic forecasters who frequented the financial message boards and blogs saw what was happening and what was coming. They had one important advantage. They live in the real world, not inside the Beltway, not within the marble halls and equally hardened thought processes of the Fed, and not in the ivory towers of academia, a word which sounds like a disease, because it is a disease. Not only do these environments cause delusional thinking, they attract delusional people. The same is true of policy makers.

I call it elitist personality disorder. It leads to delusions of grandeur, delusions of omniscience and omnipotence, and the unwillingness to take responsibility for failure and incompetence, instead engaging in blame shifting.

Postscript. Yep, less than a half hour later, they pulled my comment. I left a subsequent comment which isn't fit for a family oriented website like this one.

 

Get regular updates on the US housing market, and stay up to date with the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market…stay ahead of the herd. Click this link to try WSE's Professional Edition risk free for 30 days! 

Pic credit: Banksy via Bruce Krasting

Last Comment On Japan (for now)

Posted: 25 Nov 2011 01:44 PM PST


GoldMoney. The best way to buy gold & silver



I promise that for now, this is the last time I will comment on the Japanese stock market. I only feel the need to scream from the rooftops on this one because I am not seeing anyone else commenting on it, and I believe it is HUGELY important. The third (?) largest economy in the world is demonstrating conditions ripe for a stock market meltdown.

Here is my Elliott wave count on the Nikkei Japanese stock market ($NIKK), with all its bearish implications. Following is a 37.5 month weekly candlestick chart thru Friday's close with my thoughts:





We're not just below the recent October fall lows, we're looking at a crash-type scenario in the Japanese stock market. How this happens in a globally interconnected market without a strong move to the downside in Europe and the USA is beyond me. My subscribers and I have been short emerging markets and remain so for now. Soon, we will be looking to buy into the precious metals sector for a bull trade, but for now it is "batten down the hatches" time.

If you're interested in trying to trade these dangerous markets, consider my low cost subscription service. If not, my advice is to buy physical Gold and sleep soundly.



Buy gold online - quickly, safely and at low prices[Most Recent Charts from www.kitco.com]

By the Numbers for the Week Ending November 25

Posted: 25 Nov 2011 01:29 PM PST

HOUSTON --  Just below is this week's closing table for the week ending November 25, 2011.

20111125TABLE
 
If the image is too small click on it for a larger version.

Commitments of traders (COT) data from the Commodity Futures Trading Commission (CFTC) is delayed until Monday, November 28  this week due to the Thanksgiving Day Holiday.  

Vultures, (Got Gold Report Subscribers) please note that partial updates to our linked technical charts should be completed by the usual time on Sunday (18:00 ET).  Our notations on the COT data are obviously delayed until Monday evening or Tuesday.

That is all for now, but there is more to come.   

Despite inflation, Europe and U.S. will monetize debt, Davies tells KWN

Posted: 25 Nov 2011 12:53 PM PST

8:50p ET Friday, November 25, 2011

Dear Friend of GATA and Gold:

King World News interviewed Hinde Capital CEO Ben Davies just after the Gold Symposium in Sydney, Australia, this month and found him impressed by the rise of inflation there and around the world but still predicting that the European Central Bank and Federal Reserve will undertake new rounds of debt monetization. You can listen to the interview at King World News here:

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/11/21_...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


ADVERTISEMENT

Golden Phoenix Completes Operating Agreement
for Santa Rosa Gold Mine in Panama

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...


Join GATA here:

Vancouver Resource Investment Conference
Sunday-Monday, January 22-23, 2012
Vancouver Convention Centre West
Vancouver, British Columbia, Canada

http://cambridgehouse.com/conference-details/vancouver-resource-investme...

California Investment Conference
Saturday-Sunday, February 11-12, 2012
Hyatt Grand Champions Resort
Indian Wells, California, USA

http://cambridgehouse.com/conference-details/california-investment-confe...

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:

http://gata.org/tshirts

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:

http://www.goldrush21.com/

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


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.

Crowds greet Venezuela's gold as it begins trickling home

Posted: 25 Nov 2011 12:19 PM PST

Better start assaying those bars, Comrade Commandante.

* * *

Venezuela Repatriates First Gold Shipment From Europe

By Kejal Vyas
Dow Jones Newswires
via The Wall Street Journal
Friday, November 25, 2011

http://online.wsj.com/article/BT-CO-20111125-709970.html

CARACAS, Venezuela -- Venezuelan officials Friday welcomed the first air shipment of overseas gold holdings as part of a controversial move to repatriate the country's foreign reserves held in North America and Europe.

Crates holding gold bullion were shown on state television being offloaded at the capital city's Maiquetia airport and onto armored vehicles. Central Bank President Nelson Merentes deemed the arrival a "historic" moment for Venezuela, saying the first shipment was coming from "various European countries" via France.

Merentes said the government plans to eventually bring home 160 tons of gold over time. Before Friday, the country held 211 tons -- nearly $11 billion worth -- out of its 365 tons of gold reserves stored in U.S., Canadian, and European banks. The country has the largest holdings in Latin America with nearly two-thirds of its $27.8 billion in international reserves held in the precious metal.

... Dispatch continues below ...


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.


Merentes didn't specify the quantity of gold shipped on Friday but told a rally of supporters outside the central bank headquarters that it was valued at around $300 million. In August, President Hugo Chavez announced plans to repatriate foreign reserves as part of a broader effort to nationalize the country's gold sector.

The move puzzled economists, who said it would further reduce transparency and raise more questions over the central bank's declining reserves. Some analysts speculated that, faced with several international arbitration cases seeking billions of dollars over nationalizations, the left-leaning South American government was looking to shield itself from having its own assets seized.

But Venezuelan officials say they aim to reduce exposure to debt-laden economies like the U.S. and those of Europe, while also taking advantage of the precious metal's rising price. Venezuela also has said it aims to diversify by investing in faster-growing allied nations like Russia and China, both of which recently have been making large investments into the oil-rich South American country.

"Now [the gold] will go to a place from which it should have never left: the central bank vaults [in Caracas]; not those in London or in Europe, but our own land," Chavez said earlier in the day.

The Central Bank of Venezuela already holds 154 tons of bullion domestically.

In an interview last month, a senior central bank official told Dow Jones Newswires that Venezuela would leave behind a small portion of its overseas gold holdings to allow for any future transactions. At the time, he said that the entire repatriation operation would cost Venezuela "no more than $7 million," including insurance.

Prior to Friday's transfer, the Bank of England held about 99 tons of Venezuela's gold, with smaller amounts stored by the Bank for International Settlements in Switzerland, Britain-based Barclays Bank, J.P. Morgan Chase & Co.) in the United States, and Canada's Bank of Nova Scotia, among other institutions, according to Venezuelan government documents.

* * *

First Repatriated Gold Shipment Lands in Venezuela

By Daniel Wallis
Reuters
Friday, November 25, 2011

http://af.reuters.com/article/metalsNews/idAFN1E7AO1J920111126

CARACAS, Venezuela -- Amid wild celebrations, a first shipment of gold bars arrived home in Venezuela on Friday after President Hugo Chavez ordered almost all the country's foreign bullion reserves be repatriated from Western banks.

Excited crowds lined the roadside waving big Venezuelan flags and chanting "It's returned! It's returned!" as a convoy of soldiers and armored cars carried the ingots from Maiquetia airport to the central bank in Caracas.

Experts had cautioned that the operation, which will eventually transport more than 160 tonnes of gold bars worth more than $11 billion to the South American country, would be risky, slow, and expensive.

Nelson Merentes, the president of the central bank, traveled into the city at the head of the convoy. He did not say how much gold was brought back in Friday's shipment but said the bullion came from several European countries.

"Our gold is being stored in the vaults," Merentes, sporting a baseball cap that read "The Central Bank of Venezuela with the People," told the cheering crowds. "We cannot give exact dates (for when the rest of the bars will arrive) due to questions of security. When we bring the last shipment, the people will learn about it."

Drums and sirens sounded out across the square as many in the crowd sang "Forward, Comandante!" in support of the president. Some waved homemade signs that said "The gold has returned thanks to Chavez!" and "Long live our sovereignty!"

Chavez announced the repatriation in August as a "sovereign" step that would help protect Venezuela's foreign reserves from economic turmoil in the United States and Europe. Most of Venezuela's gold held abroad is in London.

It also was seen as a populist measure ahead of a presidential election next October, when the socialist leader will seek another six-year term.

Chavez said he had ordered the National Guard to keep a close eye on the first shipment after it landed.

"They say Chavez is going to take the gold to Miraflores (presidential palace) and is going to give it to Cuba as a gift," the president chuckled on Friday, mocking political rivals who accuse him of planning to sell the ingots to fill his electoral warchest ahead of next year's election. "The gold is returning to where it was always meant to be: the vaults of the Central Bank of Venezuela."

Like most of those gathered outside the bank, 62-year-old university professor Jose Escalona wholeheartedly agreed.

"There was no reason for it to be in England," he said. "This gold belongs to all Venezuelans."

A senior government source involved in transporting the bars, which amount to 90 percent of Venezuela's gold held abroad, has told Reuters they will be shipped in several cargo flights that will be completed before the end of the year.

The total cost of the operation will be no more than $9 million, the source said, without elaborating.

Chavez often accuses previous presidents of selling off Venezuelans' national assets, including by storing most of the country's gold reserves with Western banks in the mid-1980s.

But his move to repatriate the bullion is unlikely to have any economic impact. Venezuela's finances depend more on oil prices, and the markets already have made up their minds about how they view the socialist leader and his policies.

Next year's presidential election is likely to be a hard-fought and contentious and some critics suggest Chavez is worried Venezuela's foreign reserves being frozen by sanctions -- as happened to his friend and ally, Libya's late Muammar Gaddafi.

By repatriating the bullion, he also reduces the risk of any seizure of assets related to arbitration cases, including those linked to the nationalization of multibillion-dollar oil projects run by big U.S. companies.

More than 60 percent of Venezuela's international reserves are in gold. That is nearly eight times the regional average of just over 8 percent, and twice that of the second highest in Latin America, Ecuador.

* * *

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:

http://gata.org/tshirts

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:

http://www.goldrush21.com/

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


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

The Gold Price Closed Down 2.3% This Week

Posted: 25 Nov 2011 11:41 AM PST

Gold Price Close Today : 1,685.50
Gold Price Close 18-Nov : 1,724.70
Change : -39.20 or -2.3%

Silver Price Close Today : 3101.0
Silver Price Close 18-Nov : 3241.0
Change : -140.0 or -4.5%

Platinum Price Close Today : 1,531.60
Platinum Price Close 18-Nov : 1,587.00
Change : -55.40 or -3.6%

Palladium Price Close Today : 570.00
Palladium Price Close 18-Nov : 605.05
Change : -35.05 or -6.1%

Gold Silver Ratio Today : 54.35
Gold Silver Ratio 18-Nov : 53.22
Change : 1.14 or 1.02%

Dow Industrial : 11,257.55
Dow Industrial 18-Nov: 11,770.73
Change : -513.18 or -4.6%

US Dollar Index : 79.02
US Dollar Index 18-Nov : 78.31
Change : 0.71 or 0.9%

Franklin Sanders has not published any commentary today, if he publishes commentary later today it will be published here.

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.

LGMR: Gold Falls on 'Black Friday', ECB Assistance "Unavoidable" for Belgium, "Funding Stresses & Weak Rupee Weighing on Gold"

Posted: 25 Nov 2011 11:33 AM PST

London Gold Market Report from Ben Traynor BullionVault Friday 25 November, 09:00 EST U.S. DOLLARgold prices looked set for a second weekly drop in a row Friday lunchtime, after falling as low as $1672 an ounce – 7.2% down on the November high – while stocks, commodities and government bond prices also lost ground as Belgium became the latest country to be sucked into the European sovereign bond crisis. New York's Comex gold futures exchange will close early today – having been shut for Thanksgiving yesterday – as US shoppers hit the stores in search of Black Friday discounts. Heading into the weekend, Dollar gold prices looked set for a loss of nearly 3% on the week. "There are two factors which are putting downward pressure on gold," says Standard Bank commodities strategist Walter de Wet. "The first is weak emerging market currencies in general, and the Indian Rupee in particular. The second is funding stress in Europe." In spite of this morning's fall ...


Guest Post: Are There Any Disadvantages To A Second Passport?

Posted: 25 Nov 2011 11:09 AM PST

Submitted by Simon Black of Sovereign Man

Are There Any Disadvantages To A Second Passport?

I can't even begin to describe how happy I am to be back in the land of the free… and yes, I'm talking about Chile.

I arrived a few days ago to beautiful summertime weather (remember, the seasons are flipped down here in the southern hemisphere). As usual, the customs officials at the airport were speedy, courteous, and efficient. From plane to cab I was out of there in 20-minutes– with luggage. This is par for the course in Chile.

It's so nice to be in a place where you're treated like a human being and agents of the government don't go around robbing, molesting, and pepper-spraying peaceful citizens.

This is one of the many, many reasons why we've selected Chile as the home for our resilient community, and I'm happy to be back in-country so that I can dedicate myself to furthering this effort over the next several months.

When you step back and think about it, it's extraordinary that we're even talking about such a thing. Just five years ago, anyone who talked about a global economic slowdown was laughed out of the room. Today we are facing an all-out collapse of the fiat system. How quickly things change.

One of the best books on the subject that I've read lately is John Mauldin's appropriately titled Endgame; John is one of the most accomplished and knowledgable financial writers on the planet, and he clearly explains why the end of the global debt supercycle is a foregone conclusion.

(FYI, the book is an easy read and I highly recommend picking up a few copies to give as gifts to all of your friends who still don't get it…)

Last weekend, John and I had the chance to share a bowl of chips and salsa in an uptown Dallas bar and trade views about which governments might collapse and which have a shot at survival.

It was simultaneously depressing and hilarious… and I was certainly glad to be heading off to our farm in Chile afterwards. More on that next week– first, a few questions:

Trisha asks, "Simon- you probably heard that the Anonymous group posted the pepper-spraying policeman's personal contact information on their website. What do you think of that approach?"

Hey, you know what they tell criminals– if you do the crime, you do the time. In this case, if you spray a peaceful crowd with a 'less-than-lethal' lachrymatory agent at point blank range, you get publicly shamed.

Police generally go unpunished for such actions. Whenever a cop is caught on tape tormenting peaceful protestors, the politicians and administrative officials always say that they'll conduct a 'full investigation'.

And then nothing happens. Months go by and the incident is forgotten. This is the unwritten rule between police thugs and the state– you protect my interests, and I'll let you get away with brutalizing citizens to your heart's content.

Assault is assault. We go to jail. They go on paid administrative leave. It's a broken system, and Anonymous simply circumvented it. Outing the guy online to billions of people isn't exactly Hammurabi's code, but it's a good start.

Next, Doug asks, "Simon, what's the downside to obtaining a second citizenship? Obviously there's some cost and time involved, but what else should I be concerned about?"

The advantages of having a second passport are extraordinary– more freedom, more opportunity, more options; most of all, it's a great insurance policy against sovereign calamity.

Most North Americans and Western Europeans are blind to these advantages. They don't understand why they'd ever need another passport because they already live in the pinnacle of civilization… or so they think.

Russians, Chinese, Argentines… these sorts of folks have personally experienced the ramrod fist of government. And they're not taking chances.

Slowly, the developed West will begin to understand that their home government is their greatest threat. Unfortunately most of the second passport opportunities will be closed by then.

To address 'disadvantages', there may be some depending on the country. For example, if you obtain US citizenship as your second passport, you're signing up for taxation on your worldwide income. Congratulations.

If you obtain Israeli citizenship, you (and/or your kids) may be obligated to military service. If you obtain Dutch citizenship, you may have to renounce your other one.

Taxes, conscription, and dual nationality limitations are generally the three big categories to watch out for, though most issues can be sidestepped with some planning.

Last, Neil asks, "Hello Simon, since you travel everywhere, I thought you could help me with this question: where in Latin America has the most potential to support an upscale (U.S. quality) veterinary hospital / dog kennel? I'd like to start such a business abroad."

Candidly, the best market right now for upscale pet care is in Asia, specifically mainland China and Taiwan. I was just recently in both Shanghai and Taipei, and the streets are lined with luxury stores selling high priced pet accessories, poodle perms, and gourmet doggy biscuits.

The level to which the Chinese and Taiwanese are spoiling their pets is mind-boggling… so there's serious opportunity there.

If Latin America is where you'd like to end up, though, I'd focus on Panama, Brazil, and Chile. The pet culture is not as extreme in these countries, however the growing middle class and disposable income levels certainly warrant higher quality services.

Europe’s Red Tape Blues

Posted: 25 Nov 2011 11:01 AM PST

From The November 2011 HRA Journal David Coffin and Eric Coffin Plus ça Change..... Another month, another Euro area country in the hot seat... Italy already had issues thanks to the buffoonery of its former Prime Minister and it's now the target of bond vigilantes. No real surprises and no mystery about the steps the euro area countries have to take. What steps get taken and how forcefully is the issue as it has been for months. It's still all politics. Unless the EU fixes everything in the space of the next two weeks plenty of tax loss selling should be expected. Notwithstanding that, we're finding the buying in the bulk material space and strengthening oil price encouraging. There are clearly those that expect a resolution in Europe. Economic numbers closer to home continue to improve, if slowly. Manufacturing has been a pleasant surprise and China is promising to be a bigger importer. Outside of the bulk materials and oil though, it's still gold s...


Stock Bear Seasonals

Posted: 25 Nov 2011 10:56 AM PST

Adam Hamilton November 25, 2011 2685 Words The general stock markets’ day-to-day price action utterly dominates individual stock sectors, including commodities stocks. So anything traders can do to better understand the forces driving the stock markets as a whole leads to better stock entries and exits universally. With this truth in mind, many speculators and investors wonder whether commodities-like seasonality also exists in the general stock markets. I’ve certainly pondered this question myself over the years, and I’m not alone. Inevitably whenever I write an essay on commodities seasonality, traders write in asking about general-stock seasonality. And after advancing our gold and g...


Technical Divergences Are Growing

Posted: 25 Nov 2011 10:47 AM PST

Morris Hubbartt Weekly Market Update Excerpt posted Nov 25, 2011 US Dollar Double Top Chart How safe is the Dollar? [LIST] [*]The fear trade has returned, and this has a short term positive impact on the dollar. This market has a long way to go, and unfortunately it’s to the downside. The focus has been on Europe now for months, with the financial press covering a time bomb that will not end well for its citizens. In the shorter term that media coverage benefits the US dollar. [*]The focus for months has been all about the next nation in Europe that will ruin investors, so they run from all assets, including gold and silver, to the “safety” of the dollar. [*]Unfortunately, the fundamentals couldn’t be any worse for the US Dollar. The national debt has topped $15 trillion, with the deficit over $1.4 trillion. The time is quickly approaching when interest payments could overwhelm the government’s ability to meet ob...


Silver Update 11/25/11 – Finished

Posted: 25 Nov 2011 10:38 AM PST

Black Friday Violence Worse Than Ever As American Consumers Fight Over Deals Like Crazed Animals

Posted: 25 Nov 2011 10:17 AM PST

from The Economic Collapse Blog:

We all knew that this was coming, didn't we? Each year Black Friday violence just seems to get worse and worse. What does it say about American consumers when they are willing to fight like crazed animals just to save a few bucks on cheap plastic crap made in China? Not that retailers are innocent in any of this. It certainly seems as though many of them purposely create wild situations on Black Friday where customers will rush like crazy people into their stores and nearly riot as they fight over discounted merchandise. The more Black Friday madness there is, the more of an "event" it becomes, and the higher the profits of the retailers go. This year there was more Black Friday hype than ever and there was also more Black Friday violence than ever. It is being projected that this year a record-setting 152 million Americans will go shopping between Thanksgiving and Sunday night. That may be good news for the big corporate retailers, but the shocking lack of character being displayed by American consumers all over the country this weekend is very bad news for the future of this nation.

Read More @ TheEconomicCollapseBlog.com

Rickards: New Reserve Currency & Roubini Behind the Scenes

Posted: 25 Nov 2011 10:10 AM PST

from King World News:

With markets on the move and twitter wars on the rise, today King World News interviewed KWN resident expert Jim Rickards, senior managing director at Tangent Capital Markets. When asked about his Twitter war with Nouriel Roubini, which revolved around Rickards' advocating a gold standard, Rickards stated, "Yes, Eric, it was a really crazy state of affairs. I was just sitting at my desk last Sunday night, minding my own business, doing a little research, and here comes this tweet from Nouriel Roubini and he more or less throws down the gauntlet. He says, 'Why is Jim Rickards advocating a gold standard in his book "Currency Wars?" Doesn't he know that it caused the Great Depression?' I'm thinking, what is that?"

Jim Rickards continues: Read More @ KingWorldNews.com

Roubini criticizes Rickards' book without bothering to read it

Posted: 25 Nov 2011 09:33 AM PST

5:35p ET Friday, November 25, 2011

Dear Friend of GATA and Gold:

An interview with geopolitical analyst James G. Rickards at King World News tonight illustrates the sort of dilemma GATA has experienced many times in its 12 years. Rickards recounts how this week he was denounced by celebrity economist Nouriel Roubini for failing to acknowledge in his new book, "Currency Wars," something Rickards indeed does acknowledge in the book -- that the gold standard had something to do with the Great Depression.

Roubini seems to have picked up just a little of Rickards' advocacy of restoring a degree of gold backing to the U.S. dollar without grasping a critical point of Rickards' book -- that the gold standard as restored after World War I set gold's price too low, inducing deflation. That is, Roubini is criticizing a book he hasn't bothered to read.

GATA long has been getting such criticism from various participants in the precious metals industry and the financial news media who maintain that there can't possibly be surreptitious government intervention in the monetary metals markets but who haven't bothered to examine and respond to the documentation GATA has compiled:

http://www.gata.org/taxonomy/term/21

But then the financial world is full of people whose attitude is that if they don't already know about something, it can't be happening.

An excerpt from the King World News interview with Rickards is headlined "New Reserve Currency and Roubini Behind the Scenes" and you can find it at the King World News blog here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/26_R...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


ADVERTISEMENT

The United States Once Again Can Establish
a Stable Dollar Worth Its Weight in Gold

Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, has released a plan to restore economic growth through a stable dollar.

The plan, titled "The True Gold Standard: A Monetary Reform Plan Without Official Reserve Currencies," responds to the recurrent economic crises of the last century and outlines a detailed proposal for America's leadership on "how we get from here to there." That is, how we get from the present unstable paper dollar to a stable dollar as good as gold.

James Grant, author and editor of Grant's Interest Rate Observer, says of the Lehrman plan: "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman the country has finally found him."

To learn more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit:

http://www.thegoldstandardnow.org/gata


Support GATA by purchasing a silver commemorative coin:

https://www.amsterdamgold.eu/gata/index.asp?BiD=12

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

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:

http://www.goldrush21.com/

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


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.


The Secular Bear Market and Golds A-Wave Advance

Posted: 25 Nov 2011 09:10 AM PST

Gold Scents


Gold Thoughts

Posted: 25 Nov 2011 08:28 AM PST

2011 is very soon to become a disappointment. U.S. dollar was popularly forecast to be zero by now. As is readily evident in the chart, a second possibility existed. Why did the dollar not go to zero? Read More...



Presenting The Latest Hedge Fund Hotel: These Are The Most Beloved Stocks By Hedge Funds At September 30

Posted: 25 Nov 2011 08:24 AM PST

Every quarter, Goldman's David Kostin conveniently compiles a list of the 50 stock that "matter the most" to hedge funds, which is simply a polite way to define the "hedge fund hotel", or the companies which are expected to generate the most alpha. As the name implies these are the names that more so than the S&P 500, or the Nasdaq, determine the fate of Wall Street's richest, because while bankers may comprise the 0.1%, hedge funders constitute the 0.0001%. Why is this list significant? Because just like gold has a liquidation threat associated to it each and every day as it is the item to be sold when the margin calls start, at some point even the gold runs out, and funds will be forced to sell their paper winners, the bulk of which can be found in the top ten places on the list below. Which is why, like last quarter, we caution anyone still long AAPL, GOOG and MSFT. When the trapdoor opens, it is the top 3 stocks on this list that will get hit the most as those who were first, become last.


The Secular Stocks Bear Market and Gold's A-Wave Trend Forecast

Posted: 25 Nov 2011 07:37 AM PST

I have decided to post the weekend premium report to the blog this week. In this report I'm going to take a look at what has transpired and what is likely to come, as the third leg down in the secular bear market begins to intensify. Back in April of this year I warned investors to get out of stocks in their 401(k) accounts. At the time the dollar was moving into the timing band for a major three year cycle low. It has always been my expectation that the rally out of that major bottom would correspond with the stock market moving down into the third bear market leg of the secular trend that has been in place since 2000. As we now know the dollar did bottom in May of this year and that did correspond with the top of the cyclical bull market that began in March of 2009. It has also been my expectation that the next four year cycle low would occur in the fall of 2012, and that 2012 would be one of the worst economic years in human history.


The Ready Gold Bullion Boys

Posted: 25 Nov 2011 07:12 AM PST

It's been said Alaska has been discovered four times; first for furs, then fish, gold and finally, oil. Alaska's history has therefore been one of boom to bust to boom. There is no doubt that gold played the major part in the development of Alaska and today precious and base metals are again playing a major role in the state's economy. In 1850 gold was discovered on the Russian River in the Kenai Peninsula and in 1861 gold was again found at Telegraph Creek near present day Wrangell.


at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)