Gold World News Flash |
- Jim Willie Letter on Gold and Silver
- Gold, Stocks or Bonds, What Would Ron Paul Own?
- Gold and Silver 2012 Bullish and Bearish Arguments
- “Why the one most underpriced asset at this point, by orders of magnitude, is gold.”
- "Thin Holiday Trade" Sees Gold Flat as Euro Stocks Rally…
- Whats Up with Gold Mining Stocks?
- Will gold deliver another sparkling year in 2012?
- If you work to earn money you need to watch this
- The end of the dollar standard
- Gold Seeker Closing Report: Gold and Silver Fall Slightly
- Avery Goodman: Euro zone gets vast bond monetization through the back door
- Moody's Issues Credit Update Of United States
- The Fed vs The ECB – Presenting “The Correlation Of 2012″ And What It Means For Gold
- Think Silver is Easy To Find? Easy To Mine? Think Again. Presenting MODERN MARVELS: Silver Mines
- The Fed vs The ECB - Presenting "The Correlation Of 2012" And What It Means For Gold
- Jim Sinclair - The Gold Panic & What to Expect in 2012
- Harvey Organ's Daily Gold & Silver Report
- Jim Sinclair: The Gold Panic & What to Expect in 2012
- Jim Sinclair: The gold panic and what to expect in 2012
- The Stock Market Is Not Physics: Part II
- Essential Knowledge for Maximizing Real Gains
- Precious Metals 2012: Bullish and Bearish Arguments
- London Trader – There are Tremendous Silver Shortages
- The ECB, Eternal and Infinite
- HSBC Adjusts 1.2 Million Ounces of Silver into Eligible Vaults
- Abbreviations
- Guest Post: Are You Tempted To Sell, Or Eager To Buy?
- JIM Willie / Gold and Silver Mini Raid
- There Are Tremendous Silver Shortages
- Jim Sinclair - The Gold Panic & What to Expect in 2012
| Jim Willie Letter on Gold and Silver Posted: 22 Dec 2011 07:38 PM PST I have taken the information below from Harvey's Blog as he has posted it up. Anyone interested in subscribing...
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| Gold, Stocks or Bonds, What Would Ron Paul Own? Posted: 22 Dec 2011 07:24 PM PST When looking for guidance in life people have been known to ask, "What would Jesus do?" After all, Jesus was an anarchist and very principled so it makes sense to look to someone like him after which to model their life.
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| Gold and Silver 2012 Bullish and Bearish Arguments Posted: 22 Dec 2011 06:55 PM PST After the sharp drop in precious metals recently, many people (including me) wonder what will happen next with Gold & Silver (& other PM’s). To be honest, I don’t know where gold will be in 1 week or a 1 month from now. However, there are some facts that are compelling, which can help us in our decision-taking process. In this article, I will describe both the Bullish & Bearish arguments for Gold, Silver and PM Stocks.
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| “Why the one most underpriced asset at this point, by orders of magnitude, is gold.” Posted: 22 Dec 2011 05:41 PM PST "Gold buyers have big balls" The Fed vs The ECB – Presenting "The Correlation Of 2012″ And What It Means For Gold
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| "Thin Holiday Trade" Sees Gold Flat as Euro Stocks Rally… Posted: 22 Dec 2011 05:32 PM PST Bullion Vault
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| Whats Up with Gold Mining Stocks? Posted: 22 Dec 2011 05:23 PM PST Hera Research
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| Will gold deliver another sparkling year in 2012? Posted: 22 Dec 2011 05:00 PM PST This year saw dizzying gains and two big crashes. So does gold still deserve its 'safe haven' image, or is it just another volatile and risky asset? 
This posting includes an audio/video/photo media file: Download Now |
| If you work to earn money you need to watch this Posted: 22 Dec 2011 04:47 PM PST  
This posting includes an audio/video/photo media file: Download Now |
| The end of the dollar standard Posted: 22 Dec 2011 04:19 PM PST  It's China's World. We Just Live in It," Fortune announced in October 2009. The accompanying article described a prospecting trip in Africa by officials of the China National Offshore Oil Corporation. Nigeria was renewing production licenses in its oil fields, and CNOOC was aiming to elbow aside such traditional players as Exxon Mobil and Royal Dutch Shell. "The Beijing-based company wants to secure no less than one-sixth of the African nation's production," the article asserted. "And CNOOC, apparently, isn't screwing around." China's sudden appearance distressed the existing licensees but delighted the Nigerians. "We love this kind of competition," a spokesman for the government said. The Fortune piece went on to describe other properties the Chinese were snapping up. Just the previous month the China Investment Corporation, the government's sovereign wealth fund, had spent a billion dollars on a minority stake in a Kazakhstan oil and gas company. About the same time the CIC paid $850 million for part of a Hong Kong trading firm. The China Development Bank floated Brazil a $10 billion loan to underwrite exploration off the South American coast. "So far this decade," the Fortune correspondent recounted breathlessly, "China has spent an estimated $115 billion on foreign acquisitions. Now that the nation is sitting on massive foreign-exchange wealth ($2.1 trillion and counting), it is eager to find something (anything!) to invest in besides U.S. Treasury debt." Read more....... 
This posting includes an audio/video/photo media file: Download Now |
| Gold Seeker Closing Report: Gold and Silver Fall Slightly Posted: 22 Dec 2011 04:00 PM PST Gold fell over 1% to $1598.17 by a little after 10:30AM EST before it bounced back higher midday, but it still ended with a loss of 0.7%. Silver climbed up to $29.69 in Asia, but it then fell back off in London in New York and ended with a loss of 0.78%.
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| Avery Goodman: Euro zone gets vast bond monetization through the back door Posted: 22 Dec 2011 03:08 PM PST 11:11p ET Thursday, December 22, 2011 Dear Friend of GATA and Gold: Securities lawyer Avery Goodman explains at Seeking Alpha tonight how the European Central Bank's new long-term refinancing operations (LTRO) will constitute back-door quantitative easing, as big banks borrow from the ECB at negligible interest rates, buy the bonds of insolvent governments that the ECB is prohibited from buying, collect a handsome spread, and keep coming back to repeat the maneuver while the eurozone figures out how to monetize those bonds permanently. Of course setting up interest-rate differentials that only big banks and investment houses can exploit long has been how the Federal Reserve has reliquefied and bestowed lucrative patronage on financial institutions in the United States. The gold carry trade of the 1980s and '90s, apparently invented by Robert Rubin while he was at Goldman Sachs, before he became U.S. treasury secretary, was the same sort of mechanism to support government bonds and enrich financial institutions -- borrow gold from central banks at negligible rates, sell it, use the proceeds to buy government bonds, and collect a big spread risk-free as long as central banks kept dishoarding enough gold to prevent the price from rising and as long as they were ready to write off borrowed gold in cash settlement of leases. That the gold carry trade devastated gold- and commodity-producing developing countries was no deterrent; indeed, this devastation, the suppression of commodity prices, was another objective. Thus Western central banking becomes an ever-more totalitarian and parasitic system, which is why GATA long has been opposing and trying to expose it. Goodman's essay is headlined "How Gold, Silver, and Platinum Will Respond to ECB's Money Printing" and it's posted at Seeking Alpha here: http://seekingalpha.com/article/315636-how-gold-silver-and-platinum-will... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix Completes Operating Agreement Golden Phoenix Minerals Inc. (GPXM) has entered a joint venture operating agreement with Silver Global S.A., a Panamanian corporation, governing the operational and management aspects of their new joint venture company, Golden Phoenix Panama S.A., a Panamanian corporation formed to hold and operate the Santa Rosa gold mine in Canazas, Panama, and explore the mine's adjacent property. Golden Phoenix will be manager of the joint venture company. Silver Global will handle all social programs, political and community relations, and human resource matters for the joint venture company in Panama. Golden Phoenix and Silver Global also have agreed to work together on all future acquisitions within Panama and to bring such new opportunities to the joint venture company. Golden Phoenix will be earning in to a 60 percent interest (and potentially an 80 percent interest) in the Santa Rosa mine. Upon signing the joint venture agreement and completing the corresponding acquisition payment, Golden Phoenix will earn an initial 15 percent interest in the joint venture company. Tom Klein, CEO of Golden Phoenix, says the agreement "creates a solid foundation for the development and planned re-opening of Mina Santa Rosa." For Golden Phoenix's full statement on the joint venture operating agreement, please visit: http://goldenphoenix.us/press-release/golden-phoenix-completes-joint-ven... 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 Sonora Aims to Follow First Majestic's Success Sonora Resources (OTCBB: SURE) is a silver mining exploration company focused on the development of prospective opportunities in Mexico. The company president and CEO is Juan Miguel Rios Gutierrez, who helped build First Majestic Silver Corp., which began trading for pennies and today is at more than $16 per share. Gutierrez was the fourth person to join First Majestic Silver, originally as general manager, then manager for new business initiatives and strategic planning. He left First Majestic Silver to work with Sonora Resources and yet maintains strong contacts with First Majestic. In fact, First Majestic is a large shareholder in Sonora and has a joint venture with the company. For more information about Sonora Resources, please visit: http://www.SonoraResources.com
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| Moody's Issues Credit Update Of United States Posted: 22 Dec 2011 02:35 PM PST New York, December 22, 2011 -- The following release represents Moody's Investors Service's summary credit opinion on the United States of America and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for United States of America. Moody's maintains the following ratings on United States of America, Government of
RATINGS RATIONALE Moody's Aaa government bond rating is based on the very high degree of economic, institutional strength, and government financial strength, and low susceptibility to event risk. Although government financial strength weakened as a result of interventions to support the financial system and the economy, the basic factors supporting the Aaa rating remain intact. The US is the world's largest economy and is still the center of global trade and finance, supported by flexible markets and open trade and financial regimes. Over time, American economic competitiveness has been reinforced by fairly rapid productivity growth, a high degree of technological innovation, and generally sound public finances. Recently, prospects for some of these factors have deteriorated, most notably government finances. These finances have been substantially worsened by the credit crisis, recession, and government spending to address these shocks. The ratios of general government debt to GDP and to revenue deteriorated sharply during the crisis and are now near the top end for Aaa-rated countries. The federal government debt ratios, which Moody's considers relevant to the rating given the US's relatively decentralized fiscal structure, rose steeply and will continue their upward trend under current policies. Despite high debt levels, the financeability of the US federal government debt remains high, in part due to the global role of the US dollar. This has been demonstrated during the course of 2011, with the yields on Treasury securities falling to near-record lows at times. Over the longer term, this role could be eroded, but Moody's sees no immediate threat to the US government's ability to continue to access financing at relatively low cost. Rating Outlook The rating outlook is negative. Structural fundamentals, political stability, and post-crisis economic prospects support a Aaa rating. However, the outlook was changed in negative in August 2011 because of the risks of a continued rise in federal government debt ratios over the medium term, despite the recent passage of the Budget Control Act, which will result in some deficit reduction over the next decade. Without further deficit reduction measures, the rating could be placed on review for downgrade sometime in the coming year or two. What Could Change the Rating - Down If the upward trend in projected debt ratios and interest costs continues, and further measures beyond the recent agreement to stabilize and ultimately reverse them are not put into place, the rating could eventually move down. The individual measures are less important for the rating than the actual deficit and debt levels that would result, although it is likely that over the longer term entitlement reform will need to be part of any substantial fiscal reform. In addition, downward pressure on the rating could develop as a result of lower economic and employment growth rates than now expected. The principal methodology used in this rating was Sovereign Bond Ratings published in September 2008. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
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| Posted: 22 Dec 2011 02:34 PM PST from ZeroHedge:
If there is one cross asset correlation that defined 2011 (and the greater part of 2010), it was that of the Euro-Dollar (EURUSD) currency pair and the S&P 500, which have correlated with near unison nearly all of the time. And yet, the stability of this correlation may be getting unglued, because as Goldman insinuated in its market roundup note from yesterday, it is "reasonable to think that the … reflexive relationship between EURUSD and SPX…will take some time to break, but this correlation should start to fray." Why? Because, "like the FED before them, the ECB is aggressively expanding their balance sheet." Which brings us to the point of this article: much to the dismay of the armies of disgruntled bankers and investors demanding that the ECB print right now, the ECB has in fact been printing, as shown the other day. Only it has not done so in the conventional sense where it assumes an "asset" on its balance sheet while expanding a monetary liability, but indirectly through shadow conduits, such as repo and other liquidity backstops, also as shown yesterday, where no new currency actually enters the system, yet whereby the balance sheet expands just as efficiently (and in doing so, dilutes the underlying currency). It is well known that it has been our contention that in this centrally planned world the only thing that matters is the global provisioning of liquidity by the monetary authority, as the ultimate marginal determinant of Risk On behavior (and inversely Risk Off), is how much ZIRPy cash do speculators (and more importantly Prime Brokers) have at their possession (for outright and (re)hypothecated purchasing purposes). So here we would like to make a distinction: it is not so much how much cash one global monetary central planner will provide to markets, but how much the various standalone central banks will inject, in whole or in part. We contend that for 2012 the key qualifier will be "in part" with the ECB and the Fed printing (either outright or via repo) in staggered regimes, and thus the primary determinant of "risk", the EURUSD, will be the relative ratio of the two balance sheets. This can be seen on the charts below, the first of which shows just how dramatic the ECB expansion has been in the past 6 months, and the second showing the correlation between the EURUSD and the ratio of the Fed to the ECB.
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| Think Silver is Easy To Find? Easy To Mine? Think Again. Presenting MODERN MARVELS: Silver Mines Posted: 22 Dec 2011 02:04 PM PST [Ed Note: Thanks to our pal YouTheory: for sending us this link.] History Channel's Modern Marvels: takes us DEEP inside Hecla Mining's 'Lucky Friday' mine. If this doesn't make you appreciate every ounce of physical silver in your possession, nothing will.
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| The Fed vs The ECB - Presenting "The Correlation Of 2012" And What It Means For Gold Posted: 22 Dec 2011 01:40 PM PST If there is one cross asset correlation that defined 2011 (and the greater part of 2010), it was that of the Euro-Dollar (EURUSD) currency pair and the S&P 500, which have correlated with near unison nearly all of the time. And yet, the stability of this correlation may be getting unglued, because as Goldman insinuated in its market roundup note from yesterday, it is "reasonable to think that the ... reflexive relationship between EURUSD and SPX...will take some time to break, but this correlation should start to fray." Why? Because, "like the FED before them, the ECB is aggressively expanding their balance sheet." Which brings us to the point of this article: much to the dismay of the armies of disgruntled bankers and investors demanding that the ECB print right now, the ECB has in fact been printing, as shown the other day. Only it has not done so in the conventional sense where it assumes an "asset" on its balance sheet while expanding a monetary liability, but indirectly through shadow conduits, such as repo and other liquidity backstops, also as shown yesterday, where no new currency actually enters the system, yet whereby the balance sheet expands just as efficiently (and in doing so, dilutes the underlying currency). It is well known that it has been our contention that in this centrally planned world the only thing that matters is the global provisioning of liquidity by the monetary authority, as the ultimate marginal determinant of Risk On behavior (and inversely Risk Off), is how much ZIRPy cash do speculators (and more importantly Prime Brokers) have at their possession (for outright and (re)hypothecated purchasing purposes). So here we would like to make a distinction: it is not so much how much cash one global monetary central planner will provide to markets, but how much the various standalone central banks will inject, in whole or in part. We contend that for 2012 the key qualifier will be "in part" with the ECB and the Fed printing (either outright or via repo) in staggered regimes, and thus the primary determinant of "risk", the EURUSD, will be the relative ratio of the two balance sheets. This can be seen on the charts below, the first of which shows just how dramatic the ECB expansion has been in the past 6 months, and the second showing the correlation between the EURUSD and the ratio of the Fed to the ECB. First, the balance sheet of the ECB vs the Fed:
And second, the correlation of EURUSD vs the relative central bank sizes: i.e "The correlation of 2012"
And where the EURUSD goes, broad risk will follow as all it indicates is a willingness of the respective monetary authority to increase liquidity. It also explains why the EURUSD is likely to trade in the 1.20-1.50 corridor for a long time, as any time the EUR currency plunges, the US economy experiences a dramatic slow down, and inversely, whenever the EURUSD approaches 1.50, Europe, and specifically Germany, sees a substantial slow down in economic output. As such, this range will specify the probable willingness of either central bank to engage in aggressive monetary easing. It is no surprise that since the ECB started "printing" in all but name in July, the EUR has seen a gradual and consistent decline. There is another corollary: while gold has been stagnant and dropping since peaking in September on disappointment that the Fed did not proceed with outright unsterilized printing and instead engaged in offsetting LSAP-LSAS QE3 under the guise of "Operation Twist 2", gold has completely failed to notice that while the Fed has been net silent, another bank has injected a whopping €500 billion in the past 6 months, or more than the Fed did in all of QE2! Ironically, the broader "risk on" crew has not missed this, and while gold continues to be stuck in the old paradigm, it refuses to comprehend that explicit guarantees of trillions in debt (such as the LTRO repo operations), is an equivalent operation to printing money. We fully expect the correlation arbs, which usually need someone to point out the glaringly obvious to them before they encode given relationships and correlation pairs into buy and sell signals, will very soon comprehend why the one most underpriced asset at this point, by orders of magnitude, is gold. For the simple reason that currency debasement has been going on feverishly, if behind the scenes, for the past 6 months, and gold is nothing more, or less, than a hedge against monetary dilution. By anyone. That most certainly includes the ECB as well. We, also, for one, hope to be fully prepared for the instant when the "Eureka" moment strikes. And here, for the benefit of said slowish arbs, to explain just why liquidity provisioning is the same as bond buying, is SocGen with an expanded narrative on how Draghi took away the bazook and replaced it with a thousand just as effective slighshots. From SocGen:
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| Jim Sinclair - The Gold Panic & What to Expect in 2012 Posted: 22 Dec 2011 01:26 PM PST and I'm going to tell you & the listeners now, you haven't seen anything yet compared to what you are going to see as gold moves toward $4,500."
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| Harvey Organ's Daily Gold & Silver Report Posted: 22 Dec 2011 01:18 PM PST JIM Willie/Gold and Silver mini Raid/
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| Jim Sinclair: The Gold Panic & What to Expect in 2012 Posted: 22 Dec 2011 12:59 PM PST from King World News:
Jim Sinclair continues: Read More @ KingWorldNews.com
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| Jim Sinclair: The gold panic and what to expect in 2012 Posted: 22 Dec 2011 12:48 PM PST 8:42p ET Thursday, December 22, 2011 Dear Friend of GATA and Gold: Gold mining entrepreneur and market analyst Jim Sinclair today tells King World News that the gold market is "outrageously oversold," that gold investors are in shock and succumbing to emotion, that markets are the most fraudulent and manipulated in history ... and yet that gold's holders will be the last men standing. An excerpt from Sinclair's interview is headlined "The Gold Panic and What to Expect in 2012" and it's posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/22_J... 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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| The Stock Market Is Not Physics: Part II Posted: 22 Dec 2011 12:46 PM PST We do know one thing: Investors who feared inflation in January 1980 were right, yet they lost dollar value for two decades, lost even more buying power because the dollar itself was losing value against goods and services ...
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| Essential Knowledge for Maximizing Real Gains Posted: 22 Dec 2011 12:45 PM PST Gold and Silver Holders have profited immensely in the Past decade compared to holders of Equities-in-General.
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| Precious Metals 2012: Bullish and Bearish Arguments Posted: 22 Dec 2011 12:44 PM PST After the sharp drop in precious metals recently, many people (including me) wonder what will happen next with Gold & Silver (& other PM's). To be honest, I don't know where gold will be in 1 week or a 1 month from now.
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| London Trader – There are Tremendous Silver Shortages Posted: 22 Dec 2011 12:08 PM PST King World News is receiving reports of significant waits for delivery of silver. Today King World News interviewed the "London Trader" to get his take on the situation. The source stated, "It is so tight, the silver market is so tight that we've been waiting three weeks plus, before this takedown, for deliveries of size to arrive. I'm talking about tonnage orders. This is also key, most of the silver being delivered was refined after the orders had been placed, and again, that was before the takedown. You can just imagine how long the wait times will be going forward." The London Trader continues: "This game is getting so stretched that it's going to break. You don't think the Chinese know this stuff. If we get a close above the 200 day moving average in the mid 30's on silver, watch silver immediately pop $2 or $3. Silver is totally incredible. There is nobody in COMEX silver contracts anymore, other than casino players. The only way they have been able to keep silver depressed is by borrowing silver from SLV to meet immediate demand. That's the only reason silver isn't trading $10 to $15 higher right now. There isn't enough silver for investors to buy (in large amounts) so they have been using SLV as a flywheel. SLV is over 20 million ounces short on the silver they are supposed to have in the vaults to back the shares which have been issued. The silver isn't there. So there are people who purchased SLV to own physical silver, but all they have is shares that aren't backed by the physical silver. Part of managing the price of silver recently has been for the central banks to attack the gold market. But what is interesting is how this manipulation of the gold price was effected. Obviously, the bullion banks, which are working with the central banks, have inside knowledge as to the timing and just how much gold is going to be available to them. So, in order for the bullion banks to maximize the effect of the physical gold they get from leasing, they add high scale paper leverage. They then short-sell just enough tranches of COMEX contracts to surgically take out three important support pivots…. Continue reading the London Trader interview on KingWorldNews.com here…
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| Posted: 22 Dec 2011 11:54 AM PST by G.I., Economist.com:
Banks used some of that to pay off shorter term loans from the ECB. Even so, net lending of €235 billion brought the ECB's total loans to banks to almost €1 trillion. Mario Draghi, the ECB president has repeatedly insisted the ECB's purchases of government bonds were neither "eternal nor infinite", but that clearly doesn't apply to its lending to banks. As banks' private sector funding dries up, the ECB has supplied not just all the short-term funds they need, but all the dollar funds they need (via the revamped swap lines from the Federal Reserve) and now long-term funds as well.
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| HSBC Adjusts 1.2 Million Ounces of Silver into Eligible Vaults Posted: 22 Dec 2011 11:52 AM PST NO MENTION OF THE CME OF THE MISSING 1.4 MILLION OUNCES OF REGISTERED SILVER
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| Posted: 22 Dec 2011 11:38 AM PST by Andrew Hoffman, MilesFranklin.com:
Before I get to today's activity, I want to discuss yesterday's action, yet again. When I started writing for Miles Franklin in October, I hadn't intended to go into as much detail about PPT support operations. However, just as the Cartel stepped up their attacks on PMs this Fall via "OPERATION PM ANNIHILATION, Parts I and II," the PPT has gone berserk in its maniacal support of the world's only positive index this year, the Dow Jones Industrial Average. Of course, the Dow's measly 4% gain, albeit negative in real terms, pales compared to GOLD's 14% gain, as it prepares to close higher for an 11th straight year.
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| Guest Post: Are You Tempted To Sell, Or Eager To Buy? Posted: 22 Dec 2011 11:12 AM PST Submitted by Jeff Clark of Casey Research Are You Tempted to Sell, or Eager to Buy? It wasn't a fun week for gold. By the close on Friday, the metal was down 6.7% (based on London PM fix prices), the biggest weekly decline since September. It got downright irritating when the mainstream media seemingly rejoiced at gold's decline. Economist Nouriel Roubini poked fun at gold bugs in a Tweet. Über investor Dennis Gartman said he sold his holdings. CNBC ran an article proclaiming gold was no longer a safe-haven asset (talk about an overreaction). While the worry may have been real, let's focus on facts. Have the reasons for gold's bull market changed in any material way such that we should consider exiting? Instead of me providing an answer, ask yourself some basic questions: Is the current support for the US dollar an honest indication of its health? Are the sovereign debt problems in Europe solved? How will the US repay its $15 trillion debt load without some level of currency dilution? Is there likely to be more money printing in the future, or less? Are real interest rates positive yet? Has gold really lost its safe haven status as a result of one bad week? And one more: What is the mainstream media's record on forecasting precious metals prices? Our take won't surprise you: not one fact relating to the trend for gold changed last week. We remain strongly bullish. So why did gold, silver, and related stocks fall so hard? The reasons outlined in this month's BIG GOLD are still in play (the MF Global fallout, a rising dollar, year-end tax-loss selling, and the need for cash and liquidity to meet margin calls or redemption requests). Last Wednesday's 3.5% fall took on a life of its own, selling begetting selling, fear adding to fear (especially the case with gold stocks). None of these reasons, however, have anything to do with the fundamental factors that ultimately drive this market. Once those issues shift, then we'll talk about exiting. So, should we buy now? Is the bottom in? Let's take a fresh look at gold's corrections and compare them to the recent one. I've updated the following chart to include the recent selloff. [How do I calculate the data? I look for the periods in every annual gold chart that represent a distinct fall greater than 5%, then measure the highs and lows.]
(Click on image to enlarge) Our recent drop equals 12.5%. This isn't to suggest that the correction is over, but it does show that we've already matched the average decline, which is also 12.5%. This comes on the heels of the 15.6% fall in September. You'll notice something else: We've now had three major corrections (greater than 5%) in one year, the first time that's happened in this bull market. The worst-case scenario would be a drop that matched the biggest on record, 27.7%. From $1,795 – the recent interim peak price – that would take us to $1,295. That wouldn't be fun, but a fall to that level would not by any stretch signal the end of the bull market, nor a fall into unprofitability for our producers. And it would represent a true blood-in-the-streets buying opportunity. After all, that's exactly what happened in 2006 and again in 2008, and in both instances gold eventually powered much higher. The bears were wrong then, and they'll be wrong again this time, even if that extreme scenario were to come to pass. Here's the updated picture for silver:
(Click on image to enlarge) Silver's volatile nature really comes through in these data, which measure corrections of 10% or more. The recent decline tallies 18.4%. It, too, comes on the heels of a recent correction, a 35.2% tumble in September. The average of these declines is 20.3%, which would take our current correction to $28.22, close to last Thursday's price. Like gold, we've now had more corrections this year (four) than we've ever had in this bull market. The worst plausible scenario we see for silver in the near term would be a fall to $16.32, matching 2008's 53.9% drop. But you'd have to be awfully bearish to think it will plummet that far. These data should actually give you some comfort. We've been here before. We've seen worse before. And yet, in every instance, gold and silver eventually climbed higher. So, unless you really believe that Obama and Merkel have brought happy days back to the world economy, precious metals will resume their ascent, and probably sooner rather than later. And when they do, you may well never be able to buy at these prices again. Those who were too scared to buy at $560 in 2006 and $700 in 2008 missed out on what were some of the greatest buying opportunities of this bull market. Either way, my advice is to spend a little more time watching the drivers for gold and a little less time worrying about the price. Until those things change, look for an entrance, not an exit.
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| JIM Willie / Gold and Silver Mini Raid Posted: 22 Dec 2011 11:09 AM PST by Harvey Organ: Good evening Ladies and Gentlemen: Today's commentary will be a little short as I want all of you to concentrate on the Jim Willie article written this morning. Gold closed down by $3.00 to $1609.90. Silver also fell by $.30 to $29.00 Jim Willie has some data as to what is happening on the gold and silver front and it may not be banker cartel related. The total comex gold OI fell by 2433 contracts to 421,032. This OI is basis yesterday and gold was down a bit so it would be difficult to say if any bankers covered on their short positions. All eyes are focusing on the front delivery month of December. Here the OI fell by 84 contracts from 283 down to 199. We had 96 delivery notices yesterday so again we added 12 contracts of additional gold oz standing and again we lost zero oz to cash settlements. The next big delivery month is February and here the OI fell from 246,912 to 243,246 as a result of non backed short selling. The estimated volume today was quite anemic at 99,040 contracts. The confirmed volume yesterday was also on the low side at 135,251. It looks to me like many investors have abandoned the comex due to the MFGlobal heist by the banksters. Read More @ HarveyOrgan.Blogspot.com
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| There Are Tremendous Silver Shortages Posted: 22 Dec 2011 09:56 AM PST Dear CIGAs, King World News is receiving reports of significant waits for delivery of silver. Today King World News interviewed the "London Trader" to get his take on the situation. The source stated, "It is so tight, the silver market is so tight that we've been waiting three weeks plus, before this takedown, for Continue reading There Are Tremendous Silver Shortages
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| Jim Sinclair - The Gold Panic & What to Expect in 2012 Posted: 22 Dec 2011 09:34 AM PST  With escalating fears from gold and silver investors around the world, including professionals, today King World News interviewed legendary Jim Sinclair. When KWN asked if he has ever seen this kind of fear and panic in the gold market, Sinclair responded, "Not in the first gold market (1970s), not in the gold market we are in now, not in the correction (in '08 & '09), which took us down after the first move through $1,000 and back under $800."
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With escalating fears from gold and silver investors around the world, including professionals, today King World News interviewed legendary Jim Sinclair. When KWN asked if he has ever seen this kind of fear and panic in the gold market, Sinclair responded, "Not in the first gold market (1970s), not in the gold market we are in now, not in the correction (in '08 & '09), which took us down after the first move through $1,000 and back under $800."
THE European Central Bank has come under criticism for its failure to act as lender of last resort to embattled sovereigns. Yet when it comes to banks, the traditional recipients of central bank support, the ECB is lender of last resort on steroids. Today, it lent €489 billion to 523 banks at 1%, at its first three-year refinancing operation. It was its largest refinancing ever.
Thursday morning, and thank goodness I can type after jamming my pointer finger playing soccer last night. Ah, the life of a goalkeeper, regularly jamming, breaking, and dislocating fingers in the pursuit of blocking a ball. Looking forward to my next game tonight, and then a well deserved rest as I take a modest vacation, with my next RANT scheduled for Tuesday the 27th.
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