Gold World News Flash |
- Silver Update 12/14/11 Takedown
- Embry - This Gold Smash Will Pass, the Case for Fiat is Zero
- Are the bears vindicated?
- Uptrend & 200-Day Average "Highly Significant" for Gold as "Liquidation" &…
- Gold, Silver Tumble, Near Important Support
- Gold Seeker Closing Report: Gold and Silver Fall Almost 4% and 6%
- How President Obama Fascist Policies Will Make The Coming Greater Depression Worse
- The Coming Collapse Might Be Your Final Chance to Legally Buy Physical Gold This Decade
- David Morgan’s Precious Metals Smash Down Report – 12-14-2011
- The Collapse Of The Euro, The Death Of The Euro And The End Of The Euro
- The message is always the same: gold is a terrible idea whenever paper assets are in crisis.
- Blood is in the Streets- Time to Review the Fundamentals of Precious Metals
- Game Theory Over: Bank Of France's Noyer Says Britain Should Be Downgraded, Not France
- Game Theory Over: Bank Of France's Noyer Says Britain Should Be Downgraded, Not France
- Stock Market Panic Buying As Bear Market Goes Up in Smoke on Dollar Printing for Euros
- Negative Lease Rates Continue / Gold and Silver Bombed as Europe Runs Out of USA Dollars
- Jim Sinclair – Why Gold Was Smashed Today & What's Next
- Grandich in the news
- Goldman Summarizes The Reasons For Today's Rout
- Goldman Summarizes The Reasons For Today's Rout
- The Gold Price Took a Beating Today, Down 4.6%, Gold and Silver Remain in a Bull Market
- Guest Post: Why You, They And — Hell — I Might Just Buy That Parabolic Move In Gold…
- The ABCs of Re-hypothecation in Gold and Securities Markets: What You Need to Know
- Why Negative Real Interest Rates + Stimulative Money Supply = $10,000/ozt. Gold
- The ABCs of Re-hypothecation in Gold and Securities Markets: What You Need to Know
- Citi Near Term Stock Forecast: 9300 In The DJIA; 985 In The S&P; Sees Chart Analogs To Pre-World War Periods
- Jeff Nielson: The bankers' new gold
- Eric Sprott, Chairman of Sprott Inc. is Interviewed by James West
- Balancing Small Silver with Big Payoffs
- Gold Stocks: Still a Bargain
| Silver Update 12/14/11 Takedown Posted: 14 Dec 2011 08:00 PM PST
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| Embry - This Gold Smash Will Pass, the Case for Fiat is Zero Posted: 14 Dec 2011 08:00 PM PST A collapse of the system would actually be very good for gold for the simple reason gold would be required to back up the new currency.
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| Posted: 14 Dec 2011 08:00 PM PST Aden Sisters & Richard Russell discuss Gold...
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| Uptrend & 200-Day Average "Highly Significant" for Gold as "Liquidation" &… Posted: 14 Dec 2011 06:12 PM PST Bullion Vault
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| Gold, Silver Tumble, Near Important Support Posted: 14 Dec 2011 05:03 PM PST LAS VEGAS – It didn't take long for gold to free fall down into a zone at what should be at least interim support (shown in yellow on the chart below). In just three days the USD price of gold has plummeted more than $80 with about $55 of that plunge coming today while we were traveling west at 40,000 feet. The captain of the airplane reminded us that at that altitude the ambient temperature is about minus 69 degrees F, and said that he would be grateful if no one opened a window on the way. A few folks chuckled. The only thing we can think of that is colder than that is the precious metals market. Who knows what shall happen just ahead. The plunge over the past few days has been brutally harsh and way too quick for comfort. Having said that it has always been our contention that the most violent down-jags for the gold market occur in bull markets, not in 'bears.' We would not be at all surprised to see gold fetching up either here, at implied support, or perhaps if the momentum is too strong, at the next level lower, suggested by the green bar. We are pressed for time, so to get to the crux of the issue, what is unfolding is longer term very bullish for precious metals. But that does not count for much in a rush to liquidity. Our bet is that this current down spike in gold will end up being a precursor of a follow-on rush out of fiat currencies again and back into precious metals. But how much damage will be done before the liquidation is over, we can only watch and patiently wait to know for sure. Like gold, silver also plunged as traders headed for the exits en masse for the third time since silver's peak near $50 in April. Vultures (Got Gold Report Subscribers) already know where we have chosen to look for support to form. That's because we have noted the areas on special linked charts on our member pages. Silver is actually testing an implied support level now (shown in green in the chart above). For the first time in nearly a year we are becoming motivated to get ready to add to our own physical metal holdings of silver. We have decided to do so this time via the COMEX. Our intention is to watch the trading as carefully as we can while on vacation, looking for signs of strong support forming and then to attempt a long trade once we are reasonably convinced that silver has found overwhelming support. When the market is in virtual free fall, it almost never seems to respect the obvious zones of support, so we cannot just target a specific price and ignore what the rest of the market is telling us. Instead, what we will be attempting to do is to watch the action carefully, looking at 1 minute and 1 hour tick charts, watching for when silver seems to be getting ready for a counter-move. If that counter move is well supported with heavy bidding on both the futures and in ETFs, and if silver manages to print a series of very short term higher highs and lows (in a period measured in hours), then so long as silver is within the zones we have already disclosed to Vultures, we shall pounce, and immediately put in the thinnest (tightest) of new trade trading stops. We either want to be right from the get-go, or out pronto. And we don't mind attempting that trade more than once in order to get one that sticks. We are energized and excited as we have not been since at least the flag pullback for silver in January-February. (Unfortunately we were unable to get a trade put on in that pullback, missing the great run up from $26 and change to $49.82.) Perhaps now we are being given a second bite at the $24 - $26 apple we wanted back then. We'll see how it goes. The only thing we know for sure is that we want to own more physical silver, certainly not less. If it takes us several attempts to get the trade put on that will result in our obtaining that silver … well, we think it's worth the trouble. As Vultures also know, we are keeping one eye on the gold/silver ratio. Should it reach the targets we have already shared, we shall not hesitate to trade some gold for silver, to take advantage of this anomalous event. We are convinced that over time the gold silver ratio is heading back to its historic relationship of something between 15 and 20 ounces of silver to one ounce of gold. So if we can trade some gold now for 55 or 60, or perhaps even 65 ounces of silver for each ounce of gold, that seems to us to be a reasonably good trade, thinking longer term. The idea is that at some point we will reverse the trade, trading something like 15 or 20 ounces of silver for an ounce of gold. We really like that idea, how about you? That is all for now, but there is more to come.
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| Gold Seeker Closing Report: Gold and Silver Fall Almost 4% and 6% Posted: 14 Dec 2011 04:00 PM PST Gold plummeted all the way to $1564.02 by late morning in New York before it bounced back higher in early afternoon trade, but it still ended with a loss of 3.6%. Silver slipped all the way to $28.508 before it also rebounded, but it still ended with a loss of 5.97%.
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| How President Obama Fascist Policies Will Make The Coming Greater Depression Worse Posted: 14 Dec 2011 03:36 PM PST  How President Obama fascist policies will make the deflation economy and coming GREATER DEPRESSION worse. Webster's New World Dictionary defines fascism as: A system of government characterized by rigid one-party dictatorship, forcible suppression of opposition, private enterprise under centralized governmental control, belligerent nationalism, racism and militarism, etc. See also NAZI - and defines Nazi as: ...Political party (National Socialist German Workers' Party) ... systematically eliminated opposition, and put into effect its program of nationalism... Note the word socialist! So, a socialist/Marxist can be a fascist. Obama wins the tripple crown. Since all the political power is now in one party, the definition fits. The Democrats have control of both houses of congress and can pass any law they want. This has given President Obama fascist force to suppress opposition from the Republicans, the Tea Party, the Libertarians and the conservative independents. Most Americans are middle-of-the-road to conservative with only some 20 percent being true left-wing liberal. The President Obama fascist policies of beating up on the opposition. Like saying the Republicans drove the economy into a ditch. Bailing out the banksters and unions(GM's unions got to stay while investors were wiped out). Beating up on business (killing free enterprise and regulating and taxing the daylights out of those bad businesses making too much money with the audacity to create private sector jobs). Bringing big swaths of private enterprise under government mandate and control(think ObamaCare). Beating up on western countries for past and present colonialism (the west must pay dearly for ripping off the third worlds resources was Barack Obama Senior's socialistic dream but it's now our nightmare). More socialism (more government controls like cap-and-trade and all his other wealth redistribution and increased tax ideas. Your taxes will rise too. Yes, you! We will all pay and pay for this mountain of debt the progressives are hanging around the worlds neck. All governments are Keynesian these days. John Maynard Keynes advocated pumping downturns in the economy with stimulus money. The problem is stimulus creates violent whipsaw effects in the economy. President Obama fascist policies aren't even missing militarism. He is the one that ramped up sending more troops into Afghanistan to appease the military industrial complex just after getting elected. Racist? David Limbaugh's new book, Crimes Against Liberty says he is deeply racist. Obama spent years listening to his pastor Reverend Wright saying, "God d**m America." The only thing missing from President Obama fascist policy is belligerent nationalism. The Obama administration has focused on "hitting the reset button" and avoiding the "arrogance of power." Consequently, his weak position is saying to the world -the United States was crucial in establishing a system of global inequalities and poverty by an undue privileged few. Is that more Marxist speak or what? Karl Marx wanted capitalism to fail. So does Obama. Russia, Iran, China and North Korea will just keep causing havoc because Obama will do nothing to stop them. Obama is helping bring on world war three. Then there is his stupid bowing to third rate political heads of tiny nations. Why? Doesn't he know that is a sign of weakness. I say he is doing it on purpose. He is saying - thank you for giving me the Nobel Peace Prize and the one million dollars when I hadn't done anything to deserve it yet. The power elite bought and paid for their President Obama fascist first thing after his election. A down payment up front to their new not so secrete socialist agent for a one-world-government/new-world-order fascist future . In the area of foreign policy, the President Obama fascist intent actually threatens our national security and leaves the world more open to terrorist attack. His policies are geared to hastening a crisis so that government's size and control can grow larger. Rahm Emanuel, Chief of Staff until he left the position on 10/1//2010 said, "A crisis is a terrible thing to waste." Why do you think Obama drug his feet and did virtually nothing for months in the Gulf Oil spill crisis? The sinister message here is the Anglo American power elite will use every means to grow their new-world-order/big brother socialist fascist big government. Now in a disturbing turn of events the IMF, International Monetary Fund, headquartered in a 12 story building right on the corner of H Street and Pennsylvania Avenues in Washington D.C. is ramping up plans to be the world central banker of the G-20 nations and big brother us all to death. It blatantly plans to use "money as the medicine" to build "peace through economic stability." It's going to be cradle to grave control if we don't watch out. Total control of you and your children! Is that what you want? Watch out! The IMF is out for domination at warp speed. Forget about the World Bank and the United Nations. The IMF is trouble. Obama is beating brother Israel up over it's Sinai settlements situation. He pulled planned Polish and Czech Republic missile defense systems first thing when he got into office - a slap to democratic nations freed from communist control by the old Soviet Union. He won't pressure Iran. They now have two nuclear installations. Obama's policy of doing nothing with Iran has made an Israeli strike more likely. Can you say World War Three! He campaigned that he would stop the opium poppy growing in Afghanistan. Nope. Liar. Corruption and heroin money still buys guns to kill our own soldiers. It's still a fact of life. Poppies growing everywhere is bad karma. It's heroin for crying out loud. I also fault George W. Bush for not doing anything about this problem. Obama is constantly subordinating American policy to international consensus like the socialistic World Bank and United Nations. A global cap-and-trade commission will be the next giant leap toward a one-world government and the loss of what is left of our FREEDOM. Putin and Russia realize a nuclear bomb armed Iran is more of a problem to America. Huge Russian oil income and a history of unrelenting propaganda against the U.S. mean they will keep up the war with neighbors. With no peer pressure possible coming from a weak President Obama fascist foreign hidden agenda, we are in for more trouble. This is all leading into WORLD WAR THREE that started with the 9/11/2001 World Trade Center attack, according to Robert Prechter. 21st century American "Liberal Fascism" is a movement of the left leaning Democratic Party with a secondary smaller culprit the Republican Party. So far, there is no visible racism or cults. Let's be honest here. Fascism is when big business is fused at the hip with big government. Think Hitler and Mussolini. Obama has government owning 60 percent of General Motors or should I say Government Motors. Fascism! Franklin D. Roosevelt's, New Deal experimentation, was patterned after Russian and German fascism. Both Hitler and Mussolini praised FDR. They had similar policies like the New Deal in effect such as: setting maximum work day hours and minimum wages, a progressive tax system, state run schools, control of money, the constant growth of government and the military controlled by those at the very top. FDR started us down the road to socialism leading to the next and worse depression. He even outlawed gold ownership and made up government jobs instead of lowering taxes which would have helped business create jobs that would last. Instead the jobs disappeared when the d**m dam or other government project was done. FDR and his (hair) brain trust even decided low prices were the problem. They sought to restrict supply by paying farmers subsidies not to grow or produce and thereby raise prices. Even though people were starving! We still have those farm supports and subsidies today. They were never repealed. What's up with that? Leftist intellectuals saw the New Deal as a good thing. Likewise, the President Obama fascist facts are: Use the government to coerce people into preferred behavior. Use the environmentalist movement as a smokescreen for taking more control of the citizens and funding pet projects. Back a socialist health care movement taking 20% of a free economy and putting it under government control. Did our congress representing only 20 percent of the people do this without even reading (or writing for that matter) the 2,500 pages of the act? Wow! Now, that is an example of fascism. They don't care what the law says as long as it means more government control. American progressive thinking has a fascist mindset! "Enlightened" (anointed) leaders and technocrats like this Obama piece of work rejoice in taking away individual choice and the use of the power of the state to sway peoples moral and material well-being without even asking. The anti-messiah is here! We elected him to the highest office in the land! Every law, regulation, rule, code, ordinance, permit fee, fine, citation, ticket, tax, influence, politician, bureaucrat, ambassador, agency and even lobbyist behind the anti-capitalist push for socialism and wealth redistribution is in an unholy marriage with fascism when they reach these exorbitant levels. They are not following the CONSTITUTION. The new Republican platform says every law and act proposed will reference and point out the specific language in the Constitution enabling and validating it. YES! I'll believe it when I see it. The Federal Reserve and many in both parties of your government are in on a new-world-order/one-world-government 100 year long conspiracy. They don't care how it's done or how long it takes. There I've said it. OUR FREEDOM FAVORING FOUNDING FATHERS would not believe what TYRANNY is going down. Read the book, THE CREATURE FROM JEKYLL ISLAND 1994, by G. Edward Griffin if you don't believe me. Banksters as big brother. Every word is true. What we have today is one big "PRICE FIX! It's not FREEDOM. If you tell me what to do and back it up with the police power of penalty of jail time or fine you are "fixing the market." LIBERTY goes out the window and a little more fascism leaks in under the door. Of course, you get the increased prices, waste and and inefficiency of bigger and bigger government in the bargain. Government was only 6 percent of the economy before the 1930's depression. Here in the middle of a deflation economy leading into the GREATER DEPRESSION the parasite that is government at all levels sucks in over 25 percent of the wealth. Government employment was up 10% last year, while business unemployment rose 10%. Who is getting bigger and more top-heavy here? Where does it end? Where do you draw the line and get the nightmare to stop and reverse? All this government has lead to a credit inflation mania blow off commensurate with a 96% loss of value of the money in 100 years time. A huge deflation economy and the GREATER DEPRESSION are the only cure for credit inflation. Even fiat money leading to inflation is a tax for gods sake. Credit inflations always end in a deflation economy and depression, by the way. Let's just not abdicate more freedoms and let government get bigger in this depression. Free markets and free money (private gold money - not government paper gold - ha!) are best for job creation. Gold money would keep everyone honest. It's not someone else's debt. Small limited government would mean society would have to take up the slack and peer pressure people into behaving. Religion and the blinding light speed of the Internet would fill the vacuum of reduced government. New grassroots services and individuals could be "whistle blowers" and "squeaky wheels" and "Squawker Geese" pointing out potential problems and "bad apples." Don't cockroaches scatter when you turn the light on them? Same with a dirty politician, a fraudulent businessmen and a control freak International Monetary Fund. Go Libertarian! Contract out a smaller government to the lowest bidder. Keep an army though. When "God is dead" again you can bet law-making killed him. Don't let a President Obama fascist fraud fool you. Is this guy even a citizen? Where is his birth certificate? Impeach this fascist fanatic Barack Hussein Obama! 
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| The Coming Collapse Might Be Your Final Chance to Legally Buy Physical Gold This Decade Posted: 14 Dec 2011 02:21 PM PST by John Galt:
The current European implosion is bringing about a probable once in a lifetime opportunity which sadly might just be the last chance this decade to buy physical gold before capital controls worldwide and within the U.S. make it difficult if not impossible. The history of economic strife and plans by world governments to impose massive restrictions on the flow of funds to prevent internal collapse make gold an attractive target for seizure as political failings along with management of command control economies demand the removal of all instruments which could allow independent transactions by the citizenry. The central banks of the Western world are already grasping at straws as nations like Greece and Italy have already imposed stealth capital controls and the United States begins implementation of its restrictions after December 31, 2012. This imposition of restrictive monetary policies has made gold an attractive instrument for moving wealth overseas, especially using the electronic or digital gold option via the various instruments like GLD and ownership instruments in foreign vaults as in the Perth mint and elsewhere. The "paper" or digital gold will be the first precious metals seized to impose controls thus making their practicality in an economic collapse scenario such as a disintegration of the European Union. After the first round of seizures using this method however, the state, be it a foreign entity or the U.S. will begin to implement processes to tax the transactions and restrict amounts of physical gold an individual can obtain. That is why the action in the markets in 2008 and 2011 are appearing so similar but of course as the saying goes, "this time it's different," because this time, it truly is.
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| David Morgan’s Precious Metals Smash Down Report – 12-14-2011 Posted: 14 Dec 2011 02:20 PM PST from The Financial Survival Network: David Morgan and I discuss the orchestrated precious metals smash down. Volatility is the buzz word of the day. To long term metals investors, this type of slam down is a routine occurrence. It happens over and over again, and each time the mainstream media is shocked by the force of the action. Whether you believe that the end of civilization as we know it is upon us, or you believe that the world will find a way, these are extremely uncertain times that require everyone to be prepared for the most unlikely of events. David still has a shine for many precious metals stocks, that he believes are trading at extreme discounts. It's times like these that require serious and seasoned investors to simply filter out the noise and concentrate on the fundamentals. And the fundamentals are unchanged and perhaps more favorable to the metal sector than ever before. Governments have gotten neither spending, nor debt under control and don't seem to be very inclined to do so in the near future. This means that until people and governments start to live within their means, not much is going to change and the outlook for gold and silver is quite bright. So buckle your seat-belt, put on your earplugs and charge ahead. Silver at less than $30 and gold under $1700 per ounce is a virtual fire sale. Click Here to Listen to the Interview
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| The Collapse Of The Euro, The Death Of The Euro And The End Of The Euro Posted: 14 Dec 2011 02:14 PM PST from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| The message is always the same: gold is a terrible idea whenever paper assets are in crisis. Posted: 14 Dec 2011 02:00 PM PST I think it's a bunch of bullshit myself But I tell you this man, I tell you this I don't know what's gonna happen man But I wanna have my kicks before the whole shit house goes up in flames -Jim Morrison, The Doors, "Roadhouse Blues" Live "Nor can private counter parties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise." "I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
-SWRichmond, ZeroHedge comments "Here we go again is an old phrase, but so appropriate to appreciate at this point in time. How many times have gold and silver been taken to the cleaners only to come back and make new highs? How many times has the death of the bull market been called by various pundits? This correction will end up like all the others." -Bill Murphy, GATA Eric King, KingWorldNews.com With growing concerns about the safety of the US financial system, today King World News interviewed internationally followed Martin Armstrong, founder and former head of Princeton Economics International Ltd.. At one point Armstrong's firm rose to be perhaps the largest multinational corporate advisor in the world. Armstrong had this to say about corruption in the system: "Given the corruption in the legal system, the regulators...The SEC, the CFTC, they've never prevented a single thing, nothing. Madoff, MF Global, you name it they haven't done it. So I don't know what we are paying these people for. Corzine, I know from (an) inside source at the SEC, there were going to be rules to prevent them from doing exactly what they are doing." "Corzine went down (to the SEC), met with Mary Schapiro, she personally revoked it. That's information I have from inside the SEC. So the whole thing is a joke. When I speak to people on the (Capitol) Hill, they even say the SEC is bought and paid for. If they (Congress) ask them (the SEC) for documentation, they resist. Just like the Fed resisted opening the books to Ron Paul. These are unelected government agencies. They do not play ball with the elected side of government. It's a contentious relationship. This is not one government and we should understand what the structure really is." When asked about a communication he received regarding the MF Global situation, Armstrong stated, "Largely because of my comments on this subject, I received an email (from the CME) saying that the CME is now considering ponying up $550 million to help the investors to bring them back up to at least an 88% level instead of the 72% level from the court. Legally the CME should bring it up to 100% and then they become the creditor against the banks. They probably don't have the money. But the banks should be giving back all of the money they took from MF Global. They know what the deal is, they know it was client's assets.... "So I think the CME is between a rock and a hard place, but if they don't do something you are talking about the entire US financial system is something equivalent to some third world entity." When asked why the CME was communicating with him, Armstrong replied, "Apparently our influence is still very huge and there were some members (of the CME) that came to the conference. Our conferences tend to be well attended and like mini UN's. The question (at the conference) was, 'Is money safe in the United States?' The response was, 'Unless you get some sort of written authority from whoever you are dealing with that they are not going to engage in this kind of activity, you are going to have to go to some other place where it's not allowed.' At least in London they have to have a signed agreement. They don't in New York. They (investors) have been moving money dramatically from New York. You don't want your money at a place that's trading right now...It's just crazy. What's going on around the world, everybody is really concerned at practically every level and now we have MF Global, which is bringing into question the validity of the US financial system." ___________________________ Noted at the Lemetropole Cafe today: [please subscribe] Hi Bill, Not sure if this is on you radar. Dec OI had been falling into Dec 7th down to 860 contracts as we would expect. But then something interesting has been happening, the OI has been rising daily since Dec 8th. Today the CMEGROUP report shows 2034 open interest as of yesterday. If I had to guess, most of these new contracts are going to be for delivery. According to Kitco, lease rates bottomed on the 7th. Is it possible the gold is getting leased and dumped onto the market during thin trading and then bought back at lower prices for Dec delivery. If that was the case that gold could be delivered back to the CB with little risk the CB losing their leased gold (COMEX default for example). Since Dec 7th gold has dropped nearly $100. Interesting to see if the rising Dec OI continues. Rob M. James Mc is on top of it… "Corzine's Bottom" the new "Brown's Bottom" "? Bill, As always the corrupt CME never lowers margins whenever gold and silver prices are collapsing. At today's $28.53 low for silver the futures leverage is now a paltry 5.83-1. The gold leverage has shrunk to 13.66-1. The high margin/ low leverage not only serves the interest of cabal shorts unable to deliver physical, but probably exacerbates selling by former MF Global clients already in crisis. The silver leverage is as low now as low as any time that I can find in available data. The wicked and corrupt nature of derivative markets has reached Machiavellian proportions. Judging by their terror of gold rising there must be something BIG right around the corner. It is no coincidence that whenever ANY major financial institution or brokerage collapses the result is ALWAYS a subsequent collapse in precious metals, along with commodities in general. Gold has plummeted 10% since the MF crisis began the weekend of October 28th, much of it the past 3 days. When failed trading firms are taken over by cabal players paper derivatives are always sold to create an illusion of PM weakness. EVERY single collapse, including the Asian crisis, LTCM, Enron, Refco, Lehman, AIG, EU nations, and MF Global has resulted in gold and silver getting hammered. The message is always the same: gold is a terrible idea whenever paper assets are in crisis. Savvy investors worldwide are now scooping up the incredible physical PM bargains being afforded by a corrupt derivatives scheme. The majority of U.S. citizens will remain clueless to the end. That's the power of the MSM inflation expectation message. If the viciousness of this attack is any indication 2012 should be a really big year for physical PM owners. Sub-$1,600 gold will one day look as ridiculous as the 1999 "Brown's Bottom" at $250. Maybe this one will be known as Corzine's Bottom. It fits, Corzine is a proven ass. James Mc ___________________________ This is the reason for the ferocity of this sell off in my judgement, coupled of course with a general liquidation in stocks and other 'risk assets.' Central Banks were leasing gold for record low rates to the bullion banks like JP Morgan and HSBC. Silver lease rates also fell in sympathy. As you may recall, LIBOR - GOFO (Gold Forward Offered Rates) = Lease Rate. As can be seen from the last two charts showing the LIBOR GOFO spread, the lease rates reported in the press are a derived rate and actually represent the amount that can be earned from the gold carry trade. I do not like to look at just the Lease Rate which is really just a calculated derivate, but at the two major components. Which one is driving the change in the spread, and why? As an aside, I do not think that the major bullion banks finance their gold leases through LIBOR anymore in these days of excess reserves and quantitative easing, but it is a useful reference for most others. This tends to put a little more emphasis on the nominal level of the Gold Forwards Offered Rate. But this is just my opinion and I could be wrong. There is an obvious 'chicken and egg' argument embedded in this phenomenon. For example, some might say that the high spread between GOFO and LIBOR makes it difficult for those who wish to short gold to obtain it since the price one pays to finance the deal is quite high. I think this is Tom McClellan's hypothesis as well as some others. This is an interesting theory, because it seems to suggest that without the ability to borrow gold from central bank holdings and perhaps those others who can lease in large numbers like ETFs and not the spot market, shorting gold is not possible at these prices and the natural tendency of the clearing price is to stay the same or to increase. This suggests more manipulation than market demand and supply. I tend to think that the spreads widen as the bullion banks must borrow more heavily to support their short positions with some sort of physical backing. When the pain of the spread becomes too great, they have the incentive to throw contracts at the paper price in a desperate effort to break the price and relieve the short term pressures. The 'informational campaigns' that surround these bear raids by the demimonde seems to support this hypothesis I think. The central banks are notorious for rescuing Primary Dealers who are in trouble. I would tend to categorize this latter theory of mine as the LIBOR-Gold Forwards Pain Index. But unfortunately I can see both sides of these theories. I would just like to know who is motivated by leasing their gold in order to knock the price for some reason. I know of only two groups like that: the fiat central banks in order to help the bullion banks, and perhaps unallocated ETFs that do not particularly care what the price of gold may be as long as they can collect their fees. "Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise."The bullion banks use this leased gold as collateral for more fractional paper short sales, breaking the price trend and forcing liquidation. Their sales are done in the so-called Dr. Evil manner, of dumping large numbers of contracts on light markets. There is also the liquidation factor from the collapse of MF Global, and the reluctance of small specs to engage in the futures markets at all because of capital risk and lack of confidence. This allows the bullion banks to arrange for a big price swing that allows them to cover their short positions and also obtain other assets on the cheap such as mining companies. Since the leased gold must be returned after a short term period, this is almost always a trading gambit, as opposed to outright net gold sales by the central banks which have virtually stopped in the past couple of years. This at least is my take on what is happening. If this is correct we could see a repeat of the big market bottom and deep lows with a spring back as we have seen several times before. And the magnitude of these swings may continue to increase as the sorcerer's apprentices continue to meddle with the real economy. If the CFTC were to do their jobs, as the Europeans had done with banks like Citigroup who employed their 'Dr. Evil' trading strategy there, we would not have this type of harmful volatility in key commodity markets. On these dips one would imagine that long term buyers are taking advantage of the low prices to acquire bullion and store it as a future hedge. As the bullion banks seek to return the borrowed gold, their demand attracts the momentum trading hedge funds that are now selling, so we see a big rally in the metals. The big rally in the metals causes the LIBOR - Gold Forwards pain to increase, and so the banks cry to be rescued. And so on it goes. The obvious artificiality of these price swings obscures the efficient allocation of capital, and the orderly operation of markets, not only in metals but in key commodities significant to the real economy. The CFTC and SEC apparently have the tools to correct this, but they choose not to do anything constructive for whatever reasons. Cronyism and Congressional opposition are two possible motives. This is not dissimilar from the gaming of the energy markets that Enron made infamous before its collapse. Financial structures based on this sort of artificial con game always collapse, given time and the latitude for their greed made possible by regulatory capture. That is why the public should have no patience with the commodity market makers like MF Global, a TBTF bank, and even an exchange when they fail because of reckless gambling and market manipulation. As for any complicit central bankers, regulators, and politicians, justice must be restored and prosecutions made in order to halt the growth of the moral hazard of complicity in fraud and insider trading that is now endemic, if not epidemic... ___________________________ UK-based International Business Times reports China's gold imports spiking 50 percent in October from September, and soaring 4,000 percent from October of a year ago, to an all-time single-month record high of 85.7 tons. Sign-up for my 100% FREE Alerts Though India's anticipated record gold imports of a 1,000 tons this year could slow due to signs of slowing jewelry demand from a recent 20.3 percent crash in the rupee, since August, investors can no doubt count on China to, not only take over the gold market slack, but soon-to-dominate the New York-London gold cartel As a reminder to evolving drama in the gold market, WikiLeaks exposed China's plan to break from its sadistic recycling of trade surpluses into U.S. Treasuries, a shift in strategy by Beijing that's prompted other Asian nations to follow suit. See BER article, WikiLeaks Drops Bombshell on gold Market, GATA right again! Source: U.S. embassy cable – 09BEIJING1134 According to China's National Foreign Exchanges Administration, China's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the United States and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the renminbi. And the promotion of the "internationalization" of the renminbi has noticeably accelerated this year. On a year-over-year basis, the amount and rate of increase of gold purchases by the People's Republic of China is no less impressive than the $3.2 trillion of foreign reserves slated to be deployed by Beijing. IB Times quotes Credit Suisse analysts Thomas Kendall, who sees "Chinese imports of the yellow metal hitting 470-490 tonnes for the full year, up from last year's 245 tonnes," a near-double spike in volume anticipated at the close of 2011. And it appears that the Chinese are patient when accumulating gold, outside of its steady purchases from its own China-based mining industry, buying on opportunistic dips created by periodic hedge funds selling. In fact, the notorious sell offs in the gold market plays into the hands of the masters of Sun Tzu (1), as September's swoon from one large hedge fund manager provided attractive prices for Beijing's rapid gold accumulation program. "Analysts said the [gold] buying, led by emerging market central banks intent on diversifying their growing foreign exchange reserves, helped explain gold's rebound from a low of $1,534 a troy in September as large hedge funds such as Paulson & Co were forced to sell some gold to cover losses elsewhere," stated the Financial Times of London on Nov. 17. After dominating the world economy in production and exports of the past two decades, Beijing's next Mao-like 'Great Leap Forward' enlists 100s of million of China's middle class in a joint venture with its central bank to now wrest control of the gold market away from New York and London. As the world witnessed the powerful rise of China, post Tiananmen Square, the power of 1.3 billion Chinese, encouraged and mobilized by a centrally-commanded political structure to achieve an objective vital to its national security can produce awesome results. As the WikiLeaks cable exposes, today, Beijing is out to break the gold cartel with its awesome population might. Since 2002, after lifting the 53-year ban on gold ownership under Mao Zedong, the Chinese have eagerly scooped up gold coins and jewelry at rapid rates, to numbers which now rival India's colossal demand for the yellow metal. Forbes Magazine reported in March, "Believe it or not Ripley! The People's Bank of China (PBOC) recommended yesterday that 1 billion Chinese consider buying gold as a hedge against inflation and to preserve values in a world where currencies can fall. . . . Wow! Be like the Fed telling you to buy oil stocks or crude oil futures due to expectation higher gasoline prices this summer." According to the World Gold Council, total gold demand in the PRoC will re
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| Blood is in the Streets- Time to Review the Fundamentals of Precious Metals Posted: 14 Dec 2011 01:30 PM PST from Silver Doctors: Blood is in the streets, and precious metals investors are panicking this morning as silver was down nearly 8%, and gold nearly 4% at one point. Fundamentally nothing has changed- and with a long term view – the VERY BEST TIME TO PURCHASE PRECIOUS METALS IS INTO SEVERE SMASHES/ PRICE WEAKNESS!! It is important for readers to review the fundamentals of why they invested in PM's in the first place at a time like this. Professionals do not allow emotion to influence decisions. Review the facts. Why did you choose to save in a hard currency vs. fiat in the first place? Silver's investment demand will still set an all-time record for 2011, and we are not concerned in the least about the temporary slow-down. The factors that have driven silver from $4 to $50 over the past decade have not changed in the slightest, and are actually intensifying daily. Read More @ SilverDoctors.Blogspot.com
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| Game Theory Over: Bank Of France's Noyer Says Britain Should Be Downgraded, Not France Posted: 14 Dec 2011 01:14 PM PST To anyone who doubted that the gloves are now fully off between France and Britain, we bring you exhibit A: Speaking in an interview with local newspaper Le Telegramme de Brest to be published later on Thursday, Bank of France head and ECB member Christian Noyer said that a downgrade of France's AAA credit rating would not be justified and ratings agencies are making decisions based more on politics than economics and questioned whether the use of ratings agencies to guide investors was still valid. "In the arguments they (ratings agencies) present, there are more political arguments than economic ones," said Noyer, the head of the Bank of France and a member of the ECB's governing council. "The downgrade does not appear to me to be justified when considering economic fundamentals," Noyer said. "Otherwise, they should start by downgrading Britain which has more deficits, as much debt, more inflation, less growth than us and where credit is slumping." The bolded sentence confirms two things: i) that the Nash equilibrium in Europe is now fatally broken, because when you have the head of one central bank doing all he can to throw another central bank under the bus, that's pretty much game (theory) over; and ii) when he said that "the agencies have become incomprehensible and irrational. They threaten even when states have taken strong and positive decisions. One could think that the use of agencies to guide investors is no longer valid." it proves that this amateur has no more understanding of basic finance than your generic Reuters blogger, both of whom apparently fail to comprehend that there are several hundred thousand bond and loan indentures in the real world, not the world of "S&P has no credibility so ignore it", which are loaded with covenants discussing springing liens, rating indexed interest levels and collateral thresholds, all of which are based on a sovereign and corporate rating, and all come into play in a completely unpredictable way (hint AIG - the reason why AIG imploded was because a rating agency downgrade unleashed a terminal margin call) when there is a rating downgrade. Such as that of France in a few hours to days top. So, please, spare us: let us at least assume you are a bunch of finance hacks who have no idea what is going on when it comes to corporate credit ratings and keep your mouth shut, than open it, and prove us right. That goes double for members of the ECB who are apparently so blinded with chauvinistic rage that they have forgotten the most elementary things about modern corporate finance. Or perhaps, far morely likely, they never really knew it... Which, incidentally, explains why we are all about to enter the latest and greatest global cataclysm (to borrow a word from Alain Juppe). And lastly, if it is indeed Britain who ends up being downgraded, and suddenly every bond vigilante in the whole world comes sniffing and asking questions about those trillions and trillions of rehypothecated "assets" sloshing around within the terminally unregulated and abysmally lax framework of the isles, only to find just how shockingly deep the rabbit hole goes, who does France think will be nuked from financial orbit first?
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| Game Theory Over: Bank Of France's Noyer Says Britain Should Be Downgraded, Not France Posted: 14 Dec 2011 01:14 PM PST
To anyone who doubted that the gloves are now fully off between France and Britain, we bring you exhibit A: Speaking in an interview with local newspaper Le Telegramme de Brest to be published later on Thursday, Bank of France head and ECB member Christian Noyer said that a downgrade of France's AAA credit rating would not be justified and ratings agencies are making decisions based more on politics than economics and questioned whether the use of ratings agencies to guide investors was still valid. "In the arguments they (ratings agencies) present, there are more political arguments than economic ones," said Noyer, the head of the Bank of France and a member of the ECB's governing council. "The downgrade does not appear to me to be justified when considering economic fundamentals," Noyer said. "Otherwise, they should start by downgrading Britain which has more deficits, as much debt, more inflation, less growth than us and where credit is slumping." The bolded sentence confirms two things: i) that the Nash equilibrium in Europe is now fatally broken, because when you have the head of one central bank doing all he can to throw another central bank under the bus, that's pretty much game (theory) over; and ii) when he said that "the agencies have become incomprehensible and irrational. They threaten even when states have taken strong and positive decisions. One could think that the use of agencies to guide investors is no longer valid." it proves that this amateur has no more understanding of basic finance than your generic Reuters blogger, both of whom apparently fail to comprehend that there are several hundred thousand bond and loan indentures in the real world, not the world of "S&P has no credibility so ignore it", which are loaded with covenants discussing springing liens, rating indexed interest levels and collateral thresholds, all of which are based on a sovereign and corporate rating, and all come into play in a completely unpredictable way (hint AIG - the reason why AIG imploded was because a rating agency downgrade unleashed a terminal margin call) when there is a rating downgrade. Such as that of France in a few hours to days top. So, please, spare us: let us at least assume you are a bunch of finance hacks who have no idea what is going on when it comes to corporate credit ratings and keep your mouth shut, than open it, and prove us right. That goes double for members of the ECB who are apparently so blinded with chauvinistic rage that they have forgotten the most elementary things about modern corporate finance. Or perhaps, far morely likely, they never really knew it... Which, incidentally, explains why we are all about to enter the latest and greatest global cataclysm (to borrow a word from Alain Juppe). And lastly, if it is indeed Britain who ends up being downgraded, and suddenly every bond vigilante in the whole world comes sniffing and asking questions about those trillions and trillions of rehypothecated "assets" sloshing around within the terminally unregulated and abysmally lax framework of the isles, only to find just how shockingly deep the rabbit hole goes, who does France think will be nuked from financial orbit first?
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| Stock Market Panic Buying As Bear Market Goes Up in Smoke on Dollar Printing for Euros Posted: 14 Dec 2011 12:43 PM PST The Market Oracle Newsletter December 1st, 2011 Issue #23 Vol. 5
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| Negative Lease Rates Continue / Gold and Silver Bombed as Europe Runs Out of USA Dollars Posted: 14 Dec 2011 11:56 AM PST by Harvey Organ: Good evening Ladies and Gentlemen: Today the lease rate for one month lease on gold went to negative 1/2%. In other words, the central bank pays the bullion bank to borrow gold. With cheap gold and silver (also negative lease rate) the bankers raided gold and silver. Most financial commentaries believe this action was to make the world seem to be in better shape if gold/silver was down as Europe is in a mess. I do not believe that this was the reason for today's raid. The real reason was the fact that Europe again after just two weeks of huge dollar swaps, have run out of dollars again. Collateral at the European banks are few and it seems the only "good" asset that they have is the gold that they have not already leased out. All other European gold that have been leased out has not been returned and thus remains as a short to the banks. The subsequent sale of the leased gold/silver raises the needed USA dollars. I will go into this in the body of my commentary. Read More @ HarveyOrgan.Blogspot.com
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| Jim Sinclair – Why Gold Was Smashed Today & What's Next Posted: 14 Dec 2011 11:49 AM PST **FULL AUDIO OF INTERVIEW TO BE RELEASED AT 12AM PST. CHECK BACK HERE FOR THE LINK** Dear CIGAs, With gold trading down over $60 and silver lower by more than $2, today King World News interviewed legendary Jim Sinclair. When asked about the action in gold, Sinclair stated, "Statements made by Mrs. Merkel, Continue reading Jim Sinclair – Why Gold Was Smashed Today & What's Next
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| Posted: 14 Dec 2011 11:25 AM PST The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! December 14, 2011 04:00 PM Grandich willing to bet Gartman $1-million gold bull still kicking By David Pett* Dec 14, 2011 – 4:28 PM ET Peter Grandich's $1 million bet that gold will hit $2,000 By Myra Saefong • December 14, 2011, 6:16 PM [url]http://www.grandich.com/[/url] grandich.com...
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| Goldman Summarizes The Reasons For Today's Rout Posted: 14 Dec 2011 10:49 AM PST Everyone still dazed and confused by today's market rout will be delighted to know that Goldman is none the wiser... Or rather, Goldman knows precisely the reason why the market tumbled. From Goldman Sachs
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| Goldman Summarizes The Reasons For Today's Rout Posted: 14 Dec 2011 10:49 AM PST
Everyone still dazed and confused by today's market rout will be delighted to know that Goldman is none the wiser... Or rather, Goldman knows precisely the reason why the market tumbled. From Goldman Sachs
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| The Gold Price Took a Beating Today, Down 4.6%, Gold and Silver Remain in a Bull Market Posted: 14 Dec 2011 10:46 AM PST Gold Price Close Today : 1584.30 Change : (75.60) or -4.6% Silver Price Close Today : 2888.10 Change : -231.4 cents or -7.4% Gold Silver Ratio Today : 54.856 Change : 1.646 or 3.1% Silver Gold Ratio Today : 0.01823 Change : -0.000564 or -3.0% Platinum Price Close Today : 1420.70 Change : -54.10 or -3.7% Palladium Price Close Today : 618.40 Change : -24.70 or -3.8% S&P 500 : 1,211.82 Change : -13.91 or -1.1% Dow In GOLD$ : $154.27 Change : $ 5.41 or 3.6% Dow in GOLD oz : 7.463 Change : 0.261 or 3.6% Dow in SILVER oz : 409.39 Change : 26.15 or 6.8% Dow Industrial : 11,823.48 Change : -131.46 or -1.1% US Dollar Index : 80.52 Change : 0.282 or 0.4% Today was not a banner day for the GOLD PRICE and SILVER PRICE. Gold lost a massive 4.6%, $75.60, to close Comex at $1,584.30. Silver lost 7.4%, 231.4c, and shuttered Comex at 2888.1c. End of the world? Well, some folks think so, but I've been living on the edge of a volcano for years, and I'm not ready to refugee yet. If SILVER does not hold around 2900c, then there's very little to catch it between here and lateral support at 2615c, just a little bottom at 2843c. More likely is a drop to 2615c, quickly, or a grinding attrition down to 2000c or even 1715c. Making some assumptions about silver's behaviour from end-September through last Monday gives me a silver target of 2700c -- if height of formation equals depth of drop. Where silver will stop I don't know, but I've been whipped like this enough times in the past to know that exactly now, when the screaming enemy is pouring over the parapets and you are running out of ammo is the time you have to get plumb junk-yard dog mean, and make up your mind that you are not going to whine and lose your head. I lived through 2008, when silver dropped from 2067c to 880c, losing more than 100% of the preceding gain, and I saw it come back to 4850c. THE COMEBACK WILL COME BACK AGAIN. It may delay, but watch for it. It will surely come. The GOLD PRICE took a bad beating with a big stick today. High came at $1,641.25, but once it crossed below $1,620, bottom fell out, all the way to $1,558.35. We are getting near my most likely target, $1,535. I will surely close my eyes, bite my lip, and buy there. The sort of heads-and-shoulders-y formation on the GOLD PRICE chart from end-September to early December -- if that's what it is -- gives a target of $1,546. Everything I've said tonight aims to calm y'all down and fix your eyes on what is really important, the LONG TERM. I know the internet and the media and all the wise and big-shots in the world want to distract you with the last 2 hours and the next 24, but history doesn't rise and set on one day. GOLD and SILVER remain in a bull market. Count on that. World is full of folks who like to kick a feller when he's down, and mercy, they're a-piling on gold and silver. Somebody sent me a quotation from the Great Dennis Gartman (at least, I'm sure he thinks he's great) about how the bull market in gold was over. Even had 20 year charts to prove it. Ahh, think again. 20 year chart is useless here because it takes in the last half to the last gold bear market and the last half of the stock bull market. In other words, as cycles go it starts at the bottom of a sine wave and runs half way through, instead of showing from bottom to bottom or top to top, a complete cycle. Gartman and the article quoting him made much of gold's gains against the dollar and stocks, as if that "proved" gold's bull market has ended. Sigh -- yes, stocks have lost 80% against gold, but they will lose another 80% before this ends. Right now about 7.5 oz of gold buys the Dow, down from 44.5 oz at the cycle top in August 1999. But returning to a whole cycle that topped in 1980, we find that the Dow bottomed at one (1) oz) of gold in 1980, 2 oz in 1934, and 1 oz in 1996. Besides, none of the psychological indicators of a bull market top have appeared, like Gartman and every other guru touting that a "new era" has been reached where gold will remain at permanent high prices. Have y'all seen that in the headlines yet? I haven't. Anyhow, fact is that while gold and silver are making a big correction, after huge rises that went before (2008 - 2011, $705 - $1,927 and 880c to 4850c), their bull market has not yet ended. Neither in price (now 7.6x vs. 1980's 24x for gold and now 12x vs. 38-2/3x for silver) nor in time (only 10 years so far, vs. 15 - 20 years) have silver and gold fulfilled their bull market promise. Nor have the causes driving gold and silver up changed, unless central banks have announced "No more inflation" and governments have sworn off deficit spending. I haven't heard that yet. But what do I know? I'm nothing more than a natural born fool from Tennessee, not one of them smarty writers from New York. Them fellows know everything, like John Corzine and Bernie Madoff. Stocks dropped 131.46 points (1.10%) for a Dow close at 11,823.48. Once they broke that 11,950 support, only air loomed beneath. S&P 500 dropped 1.13% (13.91 points) to 1,211.82. Next stop is 11,600, etc., downward. Yesterday the Dow cut through its 200 day moving average (11,942), today it touched its 50 DMA (11,774.54). Momentum clearly points in gravity's direction. US DOLLAR INDEX rose again today, fueled by deflation fears and "the-world-and-the- euro-are-flying-apart" fears, up 28.2 basis points to 0.36%. This little rise alone accounteth not for the huge drops in stocks and metals, but it doth confirm yesterday's upside breakout. Y'all better get used to a rising dollar, cause it's gonna stretch its legs to 81.50, maybe 83.50, maybe even 88.70. Have I kept this, my expectation, a secret? Have I hidden this from y'all, when all them New York fellers were telling y'all the dollar was going to drop? I don't remember. Y'all forget about the Euro. Broke 1.3200 support yesterday, and 1.3000 today. Closed down 0.38% to 1.2986. Will drop further and further. Look for 1.2000. Japanese yen dropped 0.05% today to 128.18c/Y100 (Y78.02/$). Trading at the bottom of its 5 month range, but stubbornly clinging. 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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| Guest Post: Why You, They And — Hell — I Might Just Buy That Parabolic Move In Gold… Posted: 14 Dec 2011 10:44 AM PST Submitted by Gresham's Law Why You, They And — Hell — I Might Just Buy That Parabolic Move In Gold… It may be just me, but it seems like majority of market participants are terrible at dealing with one of the rudiments of life as a human being; time. It is almost as if the herding man lives in constant contempt for his former self and dogmatic surety about his current convictions (whether they relate to past, present or even the future). If this hunch happens to be true, then it doesn't take much to see the folly – for surprise surprise; as time passes the much-loved present conviction joins the realm of past regrets. So to thwart the arrogance of the gold bubble-top callers and the long-for-the-sake-of-being-long speculators here I outline why you, they and — hell — I might just buy that forthcoming parabolic move in gold. Apologies if I sound like a broken record – but nothing about the future is obvious. However, given that the typical 21st century futureologiest has a tendency to look at the past to guide his actions – gold may be regarded as particularly perplexing. For whereas equities have never (ever) met the widespread expectation that characterises its top (i.e. a 'permanent plateau' of abundant delight – a cornucopia), gold has frequently met the widespread expectation that envelopes its market top; hyperinflation. Gold, widely regarded as the objectification of worriment, has no precedent of not meeting the expectation held at its market top. Unlike most other assets on the radar of the speculator, the currency price of gold has often never returned to the levels traded on the eve of the bull run. So regardless of your current convictions about your future self, I suspect that the great question that will haunt you will be this; what if this is one of those times? Pictorially speaking; will it be this:
 The gold price's ascent and descent during the 70s & 80s. Or this:
 The paper mark price of gold... still waiting for it to come back! The man who takes the time to peruse the history books has the comfort of knowing that the expectation associated with stock market tops has never before come to pass. However with gold there is no such luxury! The Point:So why do I mention this? And why now? You may have guessed the reason but nevertheless I'll spell it out – recent price action in gold may invite premature I-told-you-so's from the gold-skeptics:
 Daily Gold Futures Chart as of 14 December 2011 - Click to enlarge. Source: FINVIZ.com Consider the musings of the gold top callers — after a decade of popping bubbles they've made a note to themselves and said ' Aha! I know how this works now! All I have to do is call a bubble whenever the price of a financial asset rises!'. I would argue that they have no idea about the environment that characterises a bubble-like top in an asset like gold. With the usual irony that is witnessed in the speculative arenas of life; they seek signals that do not correspond to the reality that they deal with (or so I presume). As I mentioned above – the future is not obvious. One implication of this is that it is never 'easy' as such to accurately call the top of a bubble! To call a bubble top right now really has few consequences – prices today aren't wildly different from yesterday and all you might miss out on is opportunity. This kind of thinking may make a little sense when you're shuffling paper titles to assets – but I would argue that it doesn't apply so strongly to gold. Try calling a bubble when the implication could be that you lose virtually everything just by the 'risk free' asset; cash! The arguments of the gold bubble callers aren't the only ones that are contemptous towards gold – another set of peculiarities comes from the 'long-for-the-sake-of-being long' speculators. Some bizarre communities of investors (MMTers ahem!) really don't believe that central bank balance sheet expansions debase currencies. But that's not all – they nevertheless are friends (or perhaps 'frenemies') with the long gold trade. The reasoning goes that others foolishly believe in the fairytale that fiat currencies can be debased, therefore they buy gold and so you front-run them. While I admit that the degree to which the market discounts the debasement of fiat currencies (via the bidding up gold) can be extreme – I scarcely acknowledge the premise! Anyhow, leaving this strange mode of thinking aside for a second, the implication is that these people think that they'll just ride the bull market to the top and then get out. As I said above: – try doing that when you would really (really!) pay for that decision. And now let me mention the final reason why I'm posting these thoughts right now: these attitudes may have the platform to gain ground over the coming months. We may have reached an inflection point in one of the indicators that people consider to be very important when dealing with gold (note: we don't necessarily agree 100%) — the real interest rate:
 Of course the longer-term picture remains unconvincing for positive real rates on the short-end of the curve
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| The ABCs of Re-hypothecation in Gold and Securities Markets: What You Need to Know Posted: 14 Dec 2011 10:37 AM PST A new polysyllabic term has entered the Wall Street lexicon and is sweeping through the investing world like a brush fire through a dry canyon: "hypothecation." With its connection to the MF Global bankruptcy and aftermath, it engenders ... Read More...
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| Why Negative Real Interest Rates + Stimulative Money Supply = $10,000/ozt. Gold Posted: 14 Dec 2011 10:12 AM PST Question: What do you get when you mix negative real interest rates with stimulative money supply efforts by global central banks? Answer: An exceptionally potent formula for higher gold prices that could send gold to the unimaginable level of $10,000 an ounce. [Let me explain further.] Words: 1049 So says Frank Holmes ([url]www.usfunds.com[/url]) in edited excerpts from his original article*. [INDENT]Lorimer Wilson, editor of [B]www.munKNEE.com (Your Key to Making Money!), has further edited ([ ]), abridged (…) and reformatted the article below for the sake of clarity and brevity to ensure a fast and easy read. The author's views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.[/B] [/INDENT]Who in the world is currently reading this article along with you? Click [COLOR=#0000ff]here to find out.[...
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| The ABCs of Re-hypothecation in Gold and Securities Markets: What You Need to Know Posted: 14 Dec 2011 10:11 AM PST A new polysyllabic term has entered the Wall Street lexicon and is sweeping through the investing world like a brush fire through a dry canyon: "hypothecation." With its connection to the MF Global bankruptcy and aftermath, it engenders the kind of fear a homeowner might feel while monitoring the approaching flames.
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| Posted: 14 Dec 2011 09:32 AM PST Earlier today we presented one of the 12 forecasts by Citi's FX Technical group which saw gold reversing recent drops, and soaring to $2400 by H2 2012 and far higher later on. Naturally, one argument is that this is simply Citi talking their books, and that one should be short when a bank is pitching a long. Of course, that is a valid interpretation. On the other hand, it is also possible that the recommendation is nothing less than a contextual recommendation of the what the big picture would look like if the bankers' grand plan falls into place. And the plan is simple, and has been discussed extensively before here: namely, to push the market to that critical triple digit threshold at which point Congress and the population (most certainly including the "99" which just happen to have 401(k) and other pension funds) will beg Bernanke to print. However, the traditional resistance has been the market discounting precisely this, and refusing to sell knowing that when the market drops, it will eventually rise: a traditional Catch 22. Which is why stocks in the US have lagged the correction in China and Europe for as long as they have - this has not been a decoupling as is widely misunderstood; what it has been is a delayed realization that Bernanke will not print until market discounting fails, and stocks flush. Then and only then will "salvation" come from Saint Ben. Which is actually precisely what Citi is preaching. In the next two charts, we see its recommendations for the Dow Jones Industrial Average and the S&P, as dropping to 9300 and upper 900s in the S&P, at which point the Fed will have no choice but to intervene. It is in this context that the lift off of gold will take place, and where the previously stated targets of north of $2400 are quite feasible. Yet, ignoring the price of gold, it is Citi's ultimate conclusion that is most disturbing: the bank finds eerie similarities in the current stock market formation with previous charts, both of which eventually led to World Wars... From Citi:
And it gets worse:
And the scariest bit:
So, charting our way right into war?
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| Jeff Nielson: The bankers' new gold Posted: 14 Dec 2011 09:27 AM PST 5:23p ET Wednesday, December 14, 2011 Dear Friend of GATA and Gold: Where are central banks and their bullion bank agents getting the large quantities of gold they lately seem to have flooded the market with to keep the fractional-reserve gold banking system going? Tonight Jeff Nielson of Bullion Bulls Canada speculates on the possible sources, which include Greece and Libya. Nielson's commentary is headlined "The Bankers' New Gold" and it's posted at Bullion Bulls Canada here: http://www.bullionbullscanada.com/index.php?option=com_content&view=arti... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT The United States Once Again Can Establish 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 Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/conference-details/vancouver-resource-investme... California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing a silver commemorative coin: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Be Part of a Chance to Discover Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries. -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600.
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| Eric Sprott, Chairman of Sprott Inc. is Interviewed by James West Posted: 14 Dec 2011 09:25 AM PST Live from the Thomson Reuters studio at Times Square in New York City, Midas Letter Money's James West interviews Eric Sprott. They discuss the silver futures market, and how the paper market is used to suppress the price in the physical silver market.
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| Balancing Small Silver with Big Payoffs Posted: 14 Dec 2011 09:22 AM PST David Morgan, publisher of Silver Investor, likes the balanced risk and growth that midtier companies provide, but even he can't resist the pull of having a speculative pick pay off. In this exclusive interview with The Gold Report, Morgan talks about the tenets he lives by when investing in mining companies, be they small-cap or midtier or billion dollar companies.
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| Posted: 14 Dec 2011 09:20 AM PST By Jeff Clark, Casey Research We've been saying since September that gold producers are undervalued, and here are some data that show just how extreme the undervaluation is. The following chart measures the stock prices of major and intermediate gold producers against their Net Asset Value, based on the daily price of gold. In the simplest terms, a company should be worth more as the product it sells rises in price faster than the cost of those sales. In this case, gold has doubled in price over the past three years while costs have not kept up, dramatically increasing the intrinsic value of a reasonably well-run gold producer. Yet look what the stocks have done when measured against this higher value. In spite of a rising gold price, stock prices have steadily fallen. In fact, as the right axis shows, the industry is currently selling at a 20% discount to its Net Asset Value (as of October 21) – and historically, gold stocks trade at a premium. Notice that gold stocks hit 1.6 times their NAVs just before the crash of 2008. Gold producers often trade at this level. If I'm right, companies will revert to historical premiums, meaning much higher stock prices than today. These data don't tell us when prices will rise, nor do they signal that stocks can't trade lower. They are simply telling us that at this point in time, gold stocks represent a true bargain. Someday this won't be the case, and the opportunity to buy at current levels will be gone. I'm convinced that in a year or two, we'll look back and be very happy with our positions.
Source: Casey Research
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The euro was a doomed project from the start, and now we are starting to see the endgame play out. Today, the euro fell to an 11-month low against the U.S. dollar. As I write this, the EUR/USD is at 1.2983. Back in July, the EUR/USD was over 1.45. As panic has swept the financial markets, the euro has lost 
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