Gold World News Flash |
- Something's about to happen
- New Junior purchased, Todays gift, and the $1 million dollar wager
- News That Matters
- Casey Research: What Gold Supply Crunch?
- John Hathaway - Media & Gartman Attacks on Gold are Bullish
- These Charts Say It All: Gold Is Still a Buy
- Jim Rickards - The US Treasury Shorts the Dollar
- Must Read: Jim Willie CB: Pathogenesis of Central Bank Ruin
- Guest Post: What Gold Supply Crunch?
- Some Facts That Should Calm Silver Investor Fears Before The Massive Catapult Higher
- Presenting The MF Global Black Box: A Minute By Minute Breakdown Of The Doomed Broker's Last Week On Earth
- 50 Economic Numbers From 2011 That Are Almost Too Crazy To Believe
- Financial and economic experts on the coming depression
- Triple Lutz Report – The Precious Metals’ Sky Isn’t Falling – Episode 132
- The Most Obvious Trade in Precious Metals Since Silver Went Parabolic in March
- 15 Brilliant Insights From Hedge Fund Superstar Kyle Bass
- Richard Russell - Gold Trading Above $1,500 is Bullish Action
- Central banks are steadily losing their cover in the gold market
- Strategic Perspectives
- Where Is Silver Going?
- Silver-Investor.com's David Morgan: “It's Not Too Late” – Gold Silver Radio Interview
- John Hathaway: Media & Gartman Attacks on Gold are Bullish
- Bad publicity bullish for gold, Hathaway tells King World News
- GOLD IS ON THE VERGE OF MOVING INTO THE BUBBLE PHASE OF THE BULL MARKET
- The Gold Price Close Down 0.6% to Close at $1,574.60
- Triple Lutz Report–The Precious Metals’ Sky Isn’t Falling–Episode 132
- Negative Lease Rates and the Ticking Gold Time Bomb
- Merde! Chinese Wines Did What to French Wines?
- Must Read: Presenting The MF Global Black Box: A Minute By Minute Breakdown Of The Doomed Broker's Last Week On Earth
- Must Read: Presenting The MF Global Black Box: A Minute By Minute Breakdown Of The Doomed Broker's Last Week On Earth
| Posted: 15 Dec 2011 08:29 PM PST Fitch downgrades. Gold Silver OI full retard. Get ready for something.
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| New Junior purchased, Todays gift, and the $1 million dollar wager Posted: 15 Dec 2011 08:29 PM PST Today was fun. I post up the hammer for a reason-the paper price got hammered or is this maybe a...
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| Posted: 15 Dec 2011 07:41 PM PST
Ft.com
Barclays Capital is preparing for the sale of more than €1bn worth of German apartments, reports the FT, citing people familiar with the process as saying the bank has held discussions about the sale of the portfolio with private equity buyers, http://ftalphaville.ft.com/thecut/2011/12/16/803071/barcap-set-for-e1bn-...
A draft prospectus prepared for the latest eurozone bail-out instruments includes explicit warnings to investors that the euro could break apart or even cease to be a "lawful currency" entirely, says the FT,http://ftalphaville.ft.com/thecut/2011/12/16/802921/efsf-prospectus-may-...
Research in Motion, the Canadian manufacturer of the BlackBerry family of smartphones and the PlayBook tablet, responded to falling profits, product problems and investor disenchantment by cutting its co-chief executives' salaries to $1 each next year and pledging a "comprehensive review". http://ftalphaville.ft.com/thecut/2011/12/16/803021/rim-co-chiefs-salari...
The managing director of the IMF has warned that the global economy faces the prospect of "economic retraction, rising protectionism, isolation and . . . what happened in the 30s [Depression]", the FT reports, http://ftalphaville.ft.com/thecut/2011/12/16/802891/lagarde-warns-of-193... American politicians on Thursday reached a tentative deal to fund an array of government agencies through September 30 and avert shutting down many of Washington's operations starting this weekend, reports Reuters. Democratic Senator Daniel Inouye, http://ftalphaville.ft.com/thecut/2011/12/16/802901/us-government-shutdo...
Villagers in Southern China kept up the pressure on Chinese authorities in a fourth day of protest despite threats by the local acting mayor to "firmly crackdown" on troublemakers, the FT reports. Wukan's residents have been protesting for months over a land dispute. http://ftalphaville.ft.com/thecut/2011/12/15/802791/chinese-villagers-st...
Growth in Asia's third largest economy looks buoyant from the shores of blighted markets in the west, but India's ruling-Congress party is firing warning flares from the deck of a listing ship, reports the FT.http://ftalphaville.ft.com/thecut/2011/12/15/802751/india-eyes-drastic-m...
Indonesia regained "investment grade" status on Thursday, the first time the emerging democracy was awarded the coveted rating since the 1997 Asian financial crisis, the FT reports. Fitch said it was lifting Indonesia's sovereign credit rating from BB+ to BBB-, http://ftalphaville.ft.com/thecut/2011/12/15/802661/indonesia-regains-in...
Sentiment among large Japanese manufacturers has turned negative, according to the Bank of Japan's much-watched Tankan survey and in the central industrial heartland of Chubu it is not hard to understand one major reason why, http://ftalphaville.ft.com/thecut/2011/12/15/802641/japanese-groups-turn...
The partisans of China's rise are brandishing a new argument. Not only is China the world's most prolific exporter, wealthiest sovereign creditor and second-largest economy. It is also on track to be the leading provider of the world's reserve money – perhaps within a decade, in the estimation of Arvind Subramanian of the Peterson Institute for International Economics. But China's miracle economy is not quite as miraculous as all that. Indeed, the internationalisation of the renminbi is less a sign of China's rise than of its internal confusion. http://www.ft.com/intl/cms/s/0/40463318-2670-11e1-91cd-00144feabdc0.html...
Thetrader.se
Wsj.com
François Hollande, the Socialist opposition candidate and opinion-poll leader, said that if he is elected France's president in May, he will seek help from the only institution he feels can salvage the euro: the European Central Bank. Speaking in an interview at his campaign's headquarters in central Paris, Mr. Hollande, 57 years old, said only the ECB has enough credibility and financial firepower to restore investor confidence and unravel the debt crisis that has been roiling the euro zone for two years. http://online.wsj.com/article/SB1000142405297020484450457710053285811757...
A common currency drove investors to Europe's outer reaches, then scared them away. The first decade of the euro intertwined the Continent's financial systems as never before. Banks and investment funds in one euro-using country gorged on the bonds of others, freed of worry about devaluation-prone currencies like the drachma, lira, peseta and escudo. But as the devaluation danger waned, another risk grew, almost unseen by investors: the chance that governments, no longer backed by national central banks, could default.http://online.wsj.com/article/SB1000142405297020408320457707813334690785...
The number of U.S. workers seeking jobless benefits last week fell to its lowest point since May 2008, a sign that the labor market may finally be gaining strength. Initial claims for unemployment insurance fell by 19,000 to 366,000, the government said Thursday. The four-week moving average of claims—which smooths out weekly gyrations in the measure—fell 6,500 to 387,750.http://online.wsj.com/article/SB1000142405297020389340457710017016351576...
Real-estate prices are falling across much of Asia as government measures to rein in once-booming prices start to bite and the slowing global economy hits export-dependent economies. The slowdown ends years of increases that have driven prices up by 70% or more since the start of 2009 in the hottest markets, spurred by strong economic growth and an influx of investors, many of them foreign, who view Asian real estate as an investment that is relatively immune to the global financial turmoil. Markets such as Beijing, Hong Kong, Singapore and Sydney are all seeing outright price declines, while prices are flat in Seoul. In smaller markets, prices are flat in Bangkok and Kuala Lumpur. In Japan, land prices are down for the 20th consecutive year.http://online.wsj.com/article/SB1000142405297020433610457709602341579057...
Marketwatch.com
The Reserve Bank of India, facing mounting evidence of slowing growth and risks of a spillover from the crisis in Europe, is widely expected to pause its monetary-tightening campaign on Friday. But the rupee's slide to record lows and persistent inflation pressures mean that unlike most emerging-markets central banks, the RBI isn't expected to start cutting interest rates any time soon. "There is a recognition that growth is decelerating much faster than anticipated," says Subhada Rao, an economist at YES Bank in Mumbai. "But inflation is still hovering above 9% And the weak rupee, because India is a net-importer economy, is adding a lot of pressure on inflation." http://www.marketwatch.com/story/india-central-bank-to-pause-rate-cut-no...
Reuters.com
Spot gold rallied 1 percent on Friday as a smooth Spanish bond auction and upbeat U.S. jobs data supported sentiment, but prices were on track for their biggest weekly drop in nearly three months on a year-end flight to cash. Spot gold rallied 1 percent to $1,586.59 and traded at $1,585.15 by 0326 GMT (10:26 p.m. EST), off a 2-1/2-month low of $1,560.36 hit in the previous session. U.S. gold rose 0.6 percent to $1,587.30. http://www.reuters.com/article/2011/12/16/us-markets-precious-idUSTRE7AK...
Front-runner Newt Gingrich came under sharp attack from rival Republican presidential candidates on Thursday at the last debate before Iowa launches the U.S. 2012 election season. Gingrich is in a tight race with Ron Paul and Mitt Romney in Iowa less than three weeks before the state's Republicans decide on January 3 who they want as their presidential candidate. It is anybody's guess at this stage as to who will win. http://www.reuters.com/article/2011/12/16/us-usa-campaign-debate-idUSTRE...
Bill Gross's PIMCO Total Return Fund, the world's largest bond fund, keeps shrinking as investors look to put their money with some of his competitors. In November, the mutual fund led by Gross saw about $500 million in outflows, bringing its cash outflow over the past 12 months to $17 billion, said Morningstar editorial director Kevin McDevitt. By contrast, November was a banner month for most other taxable bond funds, which took in nearly $10.2 billion in money as a group, according to Morningstar. Over a 12-month period, taxable bonds fund accumulated $105.8 billion in new money.http://www.reuters.com/article/2011/12/15/us-pimco-outflows-gross-idUSTR...
Bloomberg.com
Morgan Stanley (MS), the financial firm whose shares have declined 45 percent this year, plans to cut about 1,600 jobs amid an industrywide drop in revenue from investment banking and trading. Reductions will occur in the first quarter of 2012 at all levels of the firm, Mark Lake, a company spokesman, said in an interview today. The figure amounts to about 2.6 percent of the 62,648 employees New York-based Morgan Stanley had at the end of September. http://www.bloomberg.com/news/2011-12-15/morgan-stanley-plans-to-cut-abo...
Prime Minister Mario Monti will face a confidence vote in Parliament to speed passage of a 30 billion-euro ($39 billion) emergency budget plan aimed at spurring growth and convincing investors he can cut Europe's second-biggest debt. The Chamber of Deputies in Rome will begin the debate on the package at 10 a.m. before the confidence vote, which Monti's government requested to end debate and force lawmakers to vote or risk the fall of the government. A final vote will be held in the lower house at 7:30 p.m., and then the package will pass to the Senate, which is set to give final approval on Dec. 23.http://www.bloomberg.com/news/2011-12-16/monti-faces-confidence-vote-to-...
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| Casey Research: What Gold Supply Crunch? Posted: 15 Dec 2011 07:40 PM PST the supply of gold is going to tighten. Most companies have been forced to look in riskier jurisdictions & remote locations with poor infrastructure.
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| John Hathaway - Media & Gartman Attacks on Gold are Bullish Posted: 15 Dec 2011 07:23 PM PST Don't lose sight of the long-term rationale for investing in precious metals & that is monetary debasement. I see nothing has changed.
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| These Charts Say It All: Gold Is Still a Buy Posted: 15 Dec 2011 05:50 PM PST Lorimer Wilson
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| Jim Rickards - The US Treasury Shorts the Dollar Posted: 15 Dec 2011 05:07 PM PST  With tremendous volatility in the gold market, today King World News interviewed KWN resident expert Jim Rickards, senior managing director at Tangent Capital Markets, to get his take on the situation. When asked about the gut-wrenching moves that have been dominating the gold market as of late, Rickards replied, "Well, I always think it's important, Eric, to separate fundamentals and long-term trends. That's one thing you have to understand and get right. But there are short-term technical factors as well. Gold responds to both. In the long-run the fundamentals will prevail, but in the short-run the technicals can definitely dominate and this was a week where the technicals dominated."
This posting includes an audio/video/photo media file: Download Now | ||||||
| Must Read: Jim Willie CB: Pathogenesis of Central Bank Ruin Posted: 15 Dec 2011 04:41 PM PST using borrowed money to lease gold. Supply has come from both Libya & Greece. Corrupted bankers require more gold, more wars & more victim nations.
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| Guest Post: What Gold Supply Crunch? Posted: 15 Dec 2011 04:40 PM PST
Submitted by Louis James of Casey Research What Gold Supply Crunch? We have reported on changes in global gold demand, from booming investment demand in Asia to European and US debt concerns that have re-solidified gold's long tenure as the ultimate safe-haven asset for turbulent times. In fact, with investment demand from private and institutional buyers continuing to grow and central banks increasing their gold reserves, total demand reached a record US$57.7 billion in the third quarter of 2011. Quite astounding. But what's happening on the supply side of the equation? The most important source of gold supply is mine production – which is responsible for about two-thirds of the total – followed by recycled gold. While recycled gold is the reason supply is inelastic, new production has more predictive power since it can reflect shifts in industry conditions and investor sentiment. Starting with a bird's-eye view, take a look at global gold production since 1900.
(Click on image to enlarge) The 1980 gold mania occurred when gold supply had the same structure as it does today: two-thirds from production and one-third from recycled product. As the chart shows, in the 1980s, production increased after the short-lived mania came to an end, while this time around, production has already gone up (more on that below). Also, as the 1980s wore on, production grew in spite of the price falling dramatically. History doesn't repeat exactly, but it often does rhyme, so comparing the 1970-1980 decade to the present can give us a useful context for thinking about gold today. Reviewing the data available, here are some key comparisons:
Source: USGS, World Bank However, gold is not a consumer good – it's not something people need to eat a certain amount of every day, so the physical quantity of gold per person in the world means less than it would for other commodities. Gold, we have long argued, is a "fear barometer" in today's world. It's valued, which means it has demand in inverse proportion to people's confidence in other forms of money. So the fact that supply has kept up with population growth does not imply that supply has – or "should have" – kept up with demand… and we can see that it hasn't in the price of gold. A major part of that is the return of investment demand, almost to levels we saw in 1980, as you can see in the chart below.
(Click on image to enlarge)
(Click on image to enlarge)
(Click on image to enlarge) Such decentralization has benefits: It creates flexibility and stability in the gold market. The market psychology is more diverse, making it more liquid and robust. No Crunch Today – Crunch Tomorrow? Your Casey Research metals team believes the supply of gold is going to tighten. Most companies have been forced to look in riskier jurisdictions and remote locations with poor infrastructure. Environmental and other regulations are multiplying and becoming more costly every year, and even in places where they are not, labor strikes and increases in taxes are taking their toll. Worldwide, mining becomes more complicated and expensive every year… and in some cases, not even worth trying. At the same time, big discoveries remain few and far between – and even when a discovery is made, it often takes up to ten years to reach production. As they say, the low-hanging fruit has been picked: We do expect a supply crunch in the years ahead. It's tempting to try to make an argument based on future constraints in gold supply and some of the interesting similarities between past and present conditions in that supply – they seem to point to a gold mania ahead. But it's the demand side that dominates the price of gold. Whether a shortage of gold supply from production occurs or not, demand for gold is more flexible than supply overall. Gold is a monetary metal. If confidence in paper money evaporates the way we think it will, the flight to the safe haven of gold could swamp any conceivable glut in supply. We've no crystal ball to tell us when it will start, but we definitely see a mania coming. And another question arises: Now that gold demand and supply are dispersed across the globe, where will the mania start? US? Europe? How about China, India, or Malaysia? Things could really start cooking with no immediately evident cause in the West at all. Regardless of when or where the mania starts, our advice is to make sure your personal gold reserves are in place.
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| Some Facts That Should Calm Silver Investor Fears Before The Massive Catapult Higher Posted: 15 Dec 2011 04:22 PM PST North of $50 in the price of silver unleashes the metal; there is no resistance levels above that price. This is the last stand for the Fed...
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| Posted: 15 Dec 2011 03:35 PM PST from ZeroHedge:
In order to get to the bottom of every collapse (or death), a forensic analysis of the last minutes of any transition from life to death has to be perormed. So far, we have only had broad strokes of the key events in the last days of MF Global as obviously many of them will implicate the management team in gross criminal behavior. Until now, when courtesy of the CME we have received a full breakdown of every key events in the chronology of MF Global's last days on earth, starting with October 24, and the rating agency downgrade of the futures broker (the same catalyst incidentally that started the AIG death spiral waterfall… and yet clueless pundits will tell you the ratings are totally irrelevant), and ending with the firm's filing for bankruptcy protection. Anyone who has any interest in the MF Global collapse, which incidentally should be anyone who has capital in third party possession and thus has counterparty risk, should read this narrative from first to last bullet.
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| 50 Economic Numbers From 2011 That Are Almost Too Crazy To Believe Posted: 15 Dec 2011 03:33 PM PST from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| Financial and economic experts on the coming depression Posted: 15 Dec 2011 03:31 PM PST  Oh, you do NOT believe the HEAVENLY MESSAGES on the coming financial and economic depression and chaos ?Well, belive at least the HUMAN FINANCIAL and ECONOMIC EXPERTS quoted underneath. The lines given were taken from issues of 28th, 29th, 30th of June and July 2nd 2010 of THE MOST IMPORTANT NEWS, a news agency that daily sends out this type of headings, and much more. --------------------------------------------- One New York Times columnist is declaring that we are heading into "the third depression". The Wall Street "reform" bill has just encountered another set of roadblocks. An article on Bloomberg's website says that 46 U.S. states are facing a "Greek style" financial crisis. Andrew Roberts, the credit chief at RBS, is warning clients to prepare for "monster" money-printing by the U.S. Federal Reserve. Federal regulators on Friday shut down banks in Florida, Georgia and New Mexico, lifting to 86 the number of U.S. bank failures this year. Is the U.S. commercial real estate market about to implode? Economists are warning that the decision by European governments to cut their budgets could send the entire globe into another recession. Banks in the U.K. are being instructed to hoard cash in preparation for the next financial crisis. World financial markets seem to sense that something really bad is coming. Are public pension funds the next bubble to burst? Cash machines that only dispense £5 notes regardless of how much money is withdrawn will soon be installed across Britain. The Conference Board's Consumer Confidence Index declined sharply to 52.9 in June. Most economists had expected that the figure for June would be somewhere around 62. John P. Hussman of Hussman Funds has issued a full-fledged recession warning. French bank Societe Generale is forecasting that gold could reach $1,430 an ounce in the third quarter of this year due to fears of a double-dip recession. Economist Nouriel Roubini says that Greece needs an orderly restructuring of its public debt to head off an "inevitable default". The Bank for International Settlements is warning that Europe's banks have yet to come clean over bad loans and may struggle to refinance short-term debt unless the region's bond crisis subsides soon. The Bank for International Settlements is also warning authorities across the developed world that they cannot rely on ultra-low interest rates to cushion the blow of austerity measures. On Tuesday, the Dow Jones industrial average fell nearly 270 points to close below 10,000 for the first time since June 10. The protests against the austerity measures being imposed on Greece continue to turn violent. Analysts are warning that global bond markets are flashing warning signals of a sharp slowdown in growth across the world and a possible slide toward a double-dip recession and outright deflation. In fact, it is being reported that bond traders all over the world are getting "deflation jitters". Fears that government austerity packages will hinder global growth have combined with fresh anxiety about the health of European banks to hammer investor confidence in Europe. A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency. According to a new poll, more than half of all Germans want to go back to the deutschmark. Sam Zell, chairman of Equity Group Investments, told CNBC on Tuesday that the U.S. public sector is so big that the economy cannot support it and that it needs to be cut back. Ambrose Evans-Pritchard is wondering if it is time to shut down the U.S. Federal Reserve. The United Nations is predicting a global rise in food prices. A new report released by the United Nations is publicly calling for the establishment of a world currency. It turns out that shell-shocked American consumers still aren't buying anything. All signs seem to continue to point to the fact that the U.S. economy is going to continue to struggle for the rest of 2010. In early 2009, U.S. net national savings as a percentage of GDP went negative for the first time since 1952, and it has continued its downward trend since then. Forbes has published an article with this stunning headline: "Why The Greater Depression Still Lies Ahead". The National Association of Realtors said on Thursday that its seasonally adjusted index of sales agreements for previously occupied homes dropped 30 percent in May. According to a long-term budget outlook released today by the non-partisan Congressional Budget Office, U.S. government debt will represent 62% of the nation's economy by the end of this year, the highest percentage since just after World War II. This Spring, North American financial markets tumbled to their worst quarter since the fall of Lehman Brothers. According to prepared testimony by Goldman Sachs Chief Operating Officer Gary Cohn, Goldman Sachs shorted roughly $615 million of the collateralized debt obligations and residential mortgage-backed securities the firm underwrote since late 2006. Moody's announced on Wednesday that it may cut Spain's AAA local and foreign currency government bond ratings by as much as two levels after a three-month review. 
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| Triple Lutz Report – The Precious Metals’ Sky Isn’t Falling – Episode 132 Posted: 15 Dec 2011 03:29 PM PST from The Financial Survival Network: Gold has fallen from the mid $1700′s to just under $1600 now. If you listen to the mainstream media, and we can't understand why you would, this represents the popping of the precious metals bubble. These financial know it all's are literally frothing at the mouth, they are so excited about the prospects of gold and silver having a down year. Well, in a super-bull market, there's nothing unusual about one or more down years. This situation has occurred during numerous bull markets in stocks, commodities and virtually anything else you can think of. As J.P. Morgan once quipped, "The market will tend to fluctuate." Which shows that when you know which way the market is heading, you really don't need to watch the daily price unless you're looking to buy or sell. And through the lense of time, this moment in history will prove that if one had resources and a confident opinion, this was an excellent time to buy. Any takers? Click Here to Listen to the Interview
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| The Most Obvious Trade in Precious Metals Since Silver Went Parabolic in March Posted: 15 Dec 2011 03:23 PM PST by Tim Staermose, Sovereign Man: Earlier this year, when silver went parabolic, rising from $30 to $50 in a matter of weeks, I issued an alert saying I'd put on a short-term bearish trade, using call options on an inverse silver ETF. I missed calling the exact top by about a day, but many subscribers made a nice, fast profit nonetheless as silver pulled back by 30%. Since then, gold's cheaper cousin has been trading in the $30 to $35 per ounce range, and generally been pretty boring from a trader's perspective. Consequently, aside from accumulating some physical silver and gold to hold for the long-haul, I've not been active in the precious metals markets. But now I think there's another opportunity staring us in the face. This time, it's in platinum.
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| 15 Brilliant Insights From Hedge Fund Superstar Kyle Bass Posted: 15 Dec 2011 03:11 PM PST On why he owns so much gold...
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| Richard Russell - Gold Trading Above $1,500 is Bullish Action Posted: 15 Dec 2011 02:49 PM PST As a result, I believe we're going to see a brutal stock market that will shock the Fed and the bulls and the public...
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| Central banks are steadily losing their cover in the gold market Posted: 15 Dec 2011 02:45 PM PST 10:55p ET Thursday, December 15, 2011 Dear Friend of GATA and Gold: Thanks to the latest commentaries by Brady Willett of Fall Street, Tom Szabo of Metal Augmentor, and Jim Willie of the Golden Jackass, more people are realizing the potential for market manipulation through central bank gold leasing, of which there lately have been strong indications. In "Did Ron Paul Slay the Gold Bull?" Willett remarks that favorable lease rates "allow powerful interests to more readily manipulate gold": http://www.fallstreet.com/dec1511.html In "Charlatan Exposed: Negative Gold Lease Rates," Szabo writes: "The gold forward rate has increased during both the late September and current selloffs in gold, which probably means that gold is being leased by central banks in order to provide liquidity for the banking system. ... The gold bugs are essentially right that the gold price is falling this time because paper gold is flooding the market." ... Dispatch continues below ... 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 Szabo seems to concur with GATA's interpretation of the London Bullion Market Association as a fractional-reserve gold banking system generating a lot of imaginary gold for price-suppression purposes. He writes: "Other than the use of unallocated gold for swap, collateral, or trading purposes, the only other reason why an owner of gold would seek to 'deposit' physical gold with an LBMA member in an unallocated bullion account would be to avoid storage fees associated with allocated gold. It is not known to what extent the LBMA unallocated account is used by customers to avoid storage fees, but a significant amount of gold, perhaps several thousand tonnes, has been converted to paper form as a consequence of the bullion banks' business. The theoretical result is that the paper gold will have to be converted back to physical metal in the future when the customer requests a withdrawal. We say 'theoretical' because the gold market may not be able to handle mass withdrawal requests from unallocated account holders should a future monetary crisis make all counterparty risk untenable. In fact, mass withdrawal requests would probably lead to a default in those LBMA unallocated accounts that are not backed by physical metal. At the present time, that would be most if not all of them." Szabo's commentary is posted at Metal Augmentor here: http://www.metalaugmentor.com/analysis/charlatan-exposed-negative-gold-l... And in "Pathogenesis of Central Bank Ruin," Willie writes: "The gold market has gone into the Twilight Zone. The ruin of the European banking system, dragged down by toxic sovereign debt, has made the big European banks desperate. They are tapping into the virtually unlimited dollar swap facility, using borrowed money to lease gold. The Powerz have made the lease rate negative in order to attract borrowers." Willie's commentary is posted at GoldSeek here: http://news.goldseek.com/GoldenJackass/1323982800.php And at 24hGold here: http://www.24hgold.com/english/news-gold-silver-pathogenesis-of-central-... All this points to constant surreptitious intervention by central banks and their agents in the gold market, and as the Bank of England said this week, while the public and the markets may be given some access to records of that intervention on a historical basis, they must not be allowed any knowledge of that intervention contemporaneously -- must not be allowed to know exactly how central banks are intervening today. (See http://www.gata.org/node/10778.) No, contemporaneous information about the surreptitious central bank intervention in the markets is the preserve of the investment banks that serve as the central banks' agents and are rewarded with the right to trade on inside information. This is all as obvious as sunrise and sunset, and GATA is as tired of belaboring it as many of you may be to hear it. But it remains so important because it cannot yet be reported or even asked about by the mainstream financial media, even as its only utility is in its surreptitiousness. That surreptitiousness could be exploded tomorrow, changing the world. Maybe it was already exploded tonight by Willett, Szabo, and Willie. Or maybe exploding it will take many more years. After all, those who would explode it are up against all the money and power in the world, or nearly so. But as Lee Strasberg's Hyman Roth coughed out in one of "The Godfather" movies, "This is the business we've chosen." We will have to press on in the morning. CHRIS POWELL, Secretary/Treasurer 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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| Posted: 15 Dec 2011 02:34 PM PST The following should be read in conjunction with the article "Strategic Play" located [COLOR=#e06666]here and the "Signature Trends" discussion below.[/COLOR] The current severe decline in gold, silver and the XAU is indeed depressing. This is primarily due to the Euro declines with a resulting price increase in the dollar for so-called "safety" reasons. This not unexpected since the weekly USD index is still in the previously noted strong uptrend and could ultimately reach anywhere from 81 to 87. In addition, there is end of year selling pressures, margin calls and a lack of confidence and credibility issues as a direct result of the MF Global bankruptcy noted in the article below. Projections However, and as indicated on several prior occasions, "it is still my opinion we are in the area of Part 2 of the downturn that first occurred in 2008. If that assessment is valid, this second potential major bottom should end at a higher level than in 2008 and provide a very significan...
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| Posted: 15 Dec 2011 02:28 PM PST Silver and gold are in the process of bottoming, and should rally very soon.
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| Posted: 15 Dec 2011 01:48 PM PST | ||||||
| John Hathaway: Media & Gartman Attacks on Gold are Bullish Posted: 15 Dec 2011 01:22 PM PST from King World News:
John Hathaway continues: Read More @ KingWorldNews.com
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| Bad publicity bullish for gold, Hathaway tells King World News Posted: 15 Dec 2011 12:46 PM PST 8:45p ET Thursday, December 15, 2011 Dear Friend of GATA and Gold (and Silver): Tocqueville Gold Fund manager John Hathaway tells King World News tonight that the explosion of bad publicity about gold is bullish for the metal. Monetary debasement not only continues but, Hathaway adds, is the only option for governments and central banks. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/15_J... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Drills 384.9 Meters Grading 0.623 g/t PGM+Au, Company Press Release VANCOUVER, British Columbia -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) has announced the final drill results from 2011 drilling at the company's fully owned Wellgreen platinum group metals, nickel, and copper project in the Yukon Territory. Borehole WS11-192 intercepted 384.9 meters of 0.45 percent nickel equivalent starting from 9.45 meters depth. Included in this greater interval of continuous mineralization is a platinum group metals-rich zone with a combined platinum-palladium-gold grade of 1.358 grams per ton over 19.23 meters (nickel equivalent 0.74%). The final drilling results for 2011 have shown the Wellgreen Central-East and Central-West deposits to be one contiguous body, whereby there is good potential to broaden significantly the Central-West resource base, which currently contributes only about a quarter of the current 43-101 compliant resource at Wellgreen. Overall the drilling program met with good success in expanding the resource to the east and south. The long drill intercepts suggest the deposit remains very much open in those directions. For the complete drilling results and the full company statement, please visit: http://prophecyplat.com/news_2011_dec08_prophecy_platinum_wellgreen_dril... 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 gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf
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| GOLD IS ON THE VERGE OF MOVING INTO THE BUBBLE PHASE OF THE BULL MARKET Posted: 15 Dec 2011 12:38 PM PST I know that during a correction of the magnitude we are seeing right now it seems more like the gold bull is dead than on the verge of moving into what I expect will be one of the greatest parabolic moves in history. However, all of the conditions necessary to launch the bubble phase are now in place. Gold is in the process of putting in an intermediate degree bottom. That bottom, which is only days away if it didn't already happen today, is going to be the single greatest buying opportunity, probably of the decade. Gold sentiment is at multiyear lows. Retail traders that bought at $1900 have gotten wiped out. The media is full of stories calling for the death of the gold bull. Institutional traders from John Paulson, George Soros, and Dennis Gartman have all gotten knocked off the bull. Breadth in the universally hated mining sector is back down to levels that have only been exceeded during the crash in 2008.  This sector has consolidated for so long that no one believes in mining stocks anymore. This is exactly the same sentiment that was prevalent in the silver market in the fall of 2010. All the conditions are in place to launch the next stage of the secular bull market. Up until now my expectation has been that we would see gold consolidate for probably the better part of a year before the next C-wave breaks out to new highs.  However, the scenario that is unfolding in the CRB and dollar indexes has me wondering if the gold bull isn't going to start evolving much faster than I originally expected. Let's just say that if I am correct and the dollar is on the verge of topping then we are probably going to see a much shorter consolidation than originally expected. Gold could launch much more quickly out of the B-Wave bottom than I expected and move to new all-time highs as early as the next intermediate cycle.  As a matter of fact I'm pretty confident that if the dollar turns down it is going to trigger the beginning of the third and final, bubble phase, in the gold bull market. The public is already starting to become aware of the gold bull. All we need at this point to start the flood is for gold to recover quickly from this selloff. If gold quickly shoots back up and tags, or penetrates that big psychological $2000 number I expect it will be the siren call that draws the public into the bull market. And it is the public coming into a market that triggers the bubble phase. During this phase of the bull I expect we will see the normal ABCD wave pattern break down as gold starts to accelerate into what will almost certainly be the most incredible parabolic advance, maybe in history. By the fall of 2014 I expect we will see gold somewhere between $7,000 and $20,000 an ounce. I think tonight's premium report is important enough that I'm going to reopen the $1 trial subscription for two days. You will have access to the entire site for the next two days for the price of one George Washington. You can either keep your subscription and it will convert to a monthly at the end of the trial period or cancel it and you won't be charged another dime. Either way you will get access to a report that I think is important for every gold investor to read. If you decide to cancel do so by following the directions on the home page of the website. Please allow one day to process your one dollar payment before canceling. Click on the link above to go to the premium website and then click the subscribe link on the upper right side to link to the subscription page.       
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| The Gold Price Close Down 0.6% to Close at $1,574.60 Posted: 15 Dec 2011 12:35 PM PST Gold Price Close Today : 1,574.60 Change : -9.70 or -0.6% Silver Price Close Today : 2922.00 Change : 34.00 or 1.2% Platinum Price Close Today : 1,406.00 Change : -19.30 or -1.4% Palladium Price Close Today : 618.85 Change : 1.15 or 0.2% Gold Silver Ratio Today : 53.89 Change : -0.97 or 0.98% Dow Industrial : 11,823.48 Change : -131.46 or -1.1% US Dollar Index : 80.54 Change : 0.26 or 0.3% 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. 
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| Triple Lutz Report–The Precious Metals’ Sky Isn’t Falling–Episode 132 Posted: 15 Dec 2011 10:51 AM PST Gold has fallen from the mid $1700's to just under $1600 now. If you listen to the mainstream media, and we can't understand why you would, this represents the popping of the precious metals bubble. These financial know it all's are literally frothing at the mouth, they are so excited about the prospects of gold and silver having a down year. Well, in a super-bull market, there's nothing unusual about one or more down years. This situation has occurred during numerous bull markets in stocks, commodities and virtually anything else you can think of. As J.P. Morgan once quipped, "The market will tend to fluctuate." Which shows that when you know which way the market is heading, you really don't need to watch the daily price unless you're looking to buy or sell. And through the lense of time, this moment in history will prove that if one had resources and a confident opinion, this was an excellent time to buy. Any takers? Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.
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| Negative Lease Rates and the Ticking Gold Time Bomb Posted: 15 Dec 2011 10:41 AM PST Much has been made recently about the "negative gold lease rates" derived from the London Bullion Market Association (LBMA) statistical gold and silver data, but reporting on the issue so far has generally lacked the background ... Read More...
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| Merde! Chinese Wines Did What to French Wines? Posted: 15 Dec 2011 10:41 AM PST By Wolf Richter www.testosteronepit.com In France, the litany of job reductions continues. Today, Air France added 2,000 jobs to be eliminated to the 4,000 it had already announced. Late October, automaker PSA Peugeot Citroën announced 4,000 layoffs. Banks—Crédit Agricole, BNP Paribas, Société Générale, and Crédit Foncier—chimed in with their own job reductions. Then there were Areva, the largely government-owned nuclear-power conglomerate, drug maker Sanofi, ferry operator Seafrance (in liquidation), and newspapers—Les Échos, Parisien-Aujourd'hui, France-Soir, and Comareq (in liquidation). It's tough out there. And now, France's heavily subsidized signature industry—wines—got slapped in the face. By China. In a blind winetasting competition in Beijing on December 14, five wines from Bordeaux and five wines from Ningxia—all priced between 200 and 500 yuan—were wrapped in black cloth, tagged with a number, and served to ten French and ten Chinese wine judges. The judges spent 40 minutes tasting and ranking the wines and another 30 minutes discussing them. Then the results were announced: the top four wines were Chinese!
The other losers in alphabetical order: Calvet Reserve De L'Estey Medoc 2009, Cordier Prestige Rouge 2008, Kressmann Grande Réserve St-Émilion AOC 2008, Mouton Cadet Reserve Medoc 2009, and Silver Heights Family Reserve 2009. "Sacrilège," screamed the headline of the French business daily, La Tribune. But the top French dailies, Le Monde and Le Figaro, seemed to suppress the news, quite understandably. The people have enough to worry about. "Yesterday's tasting suggested Ningxia wines can hold their own against bigger Bordeaux brands," wrote Jim Boyce, organizer of the Ningxia vs Bordeaux Challenge, and administrator of www.grapewallofchina.com/. Ningxia, an autonomous region in Northwest China, appears to be the up and coming wine-growing area. OK, French wines have been beaten with some regularity ever since the Judgment of Paris on May 24, 1976, when, to the utter and never fully digested shock of the French wine establishment, a Napa Valley Cabernet Sauvignon and a Chardonnay beat their Bordeaux counterparts—and put California on the international wine map. "We never claimed this was the Beijing version of The Judgment of Paris," Boyce said modestly. The tasting wasn't designed to compare the best of Bordeaux to the best of Ningxia, but, as Boyce writes in his follow-up post on the tasting: "We used a price range to compare top Ningxia wines with bigger and better-known Bordeaux brands sold here by major distributors—brands consumers are more likely to know and have access to." Of course, wine competitions can be criticized. The French wines were handicapped by an import tax of 48% (another detail of why China has a huge trade surplus with the rest of the world). But then, Chinese wines got hit with consumption and value-added taxes that reduced the gap to 20%, according to Boyce. And the most expensive Bordeaux retailed for rmb350 while the winning Ningxia retailed for rmb488. Quite a price difference. But who could have imagined a few years ago spending $77 on a bottle of good Chinese wine to be shared over a romantic dinner? The French must have had similar thoughts about California wines in the aftermath of May 24, 1976. And for more upheaval in the old world order.... PROST! Germany lost the beer war, and China won.
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| Posted: 15 Dec 2011 10:30 AM PST
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| Posted: 15 Dec 2011 10:30 AM PST
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Even though most Americans have become very frustrated with this economy, the reality is that the vast majority of them still have no idea just how bad our economic decline has been or how much trouble we are going to be in if we don't make dramatic changes immediately. If we do not educate the American people about how deathly ill the U.S. economy has become, then they will just keep falling for the same old lies that our politicians keep telling them. Just "tweaking" things here and there is not going to fix this economy. We truly do need a fundamental change in direction. America is consuming far more wealth than it is producing and our debt is absolutely exploding. If we stay on this current path, an economic collapse is inevitable. Hopefully the crazy economic numbers from 2011 that I have included in this article will be shocking enough to wake some people up.
With mounting fears about the sharp decline in both gold and silver, today King World News interviewed four decade veteran, John Hathaway, the prolific manager of the Tocqueville Gold Fund. With mainstream media relentlessly attacking gold, Hathaway had this to say about the situation,"The gist of an article today was, 'Is there a bear market in gold?' I think the media is playing this up. Bloomberg is obsessing about the falling gold price. That's generally the tone of what I see, so it is consistent with the sentiment numbers for gold and silver and to me it's a pretty good sign."
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