Gold World News Flash |
- Gold price set for hyperbolic increase
- Ned Naylor-Leyland Tells CNBC Europe That Gold is a Rigged Market
- Why Is It So Difficult To Make Money In Gold & Silver Mining Stocks?
- It’s Worse Than Zero Hedge Said
- Alasdair Macleod Talks About Inflation vs. Deflation: “The dollar is on a hyperinflationary course.”
- Alasdair Macleod: Gold price set for hyperbolic increase
- Turkey Sharply Increases Its Gold Reserves
- Jim's Mailbox
- Gold futures market vulnerable if people want real metal, Paul Brodsky tells KWN
- Latest posting at GoldMoney
- 2012: More Money-printing Leading to Accelerating Inflation, Rising Interest Rates & Then U.S. Debt Crisis! Got Gold?
- Seriously Silver
- !! RED ALERT !! Emergency Broadcast : On The Brink of WW3
- This Past Week in Gold
- Why Buy Gold Now, Forecast $4,500
- Bob Moriarty - Next week is the Bottom
- COMEX: The March to Irrelevance
- Iran Begins Straits of Hormuz Wargames
- Silver & Gold: ‘Ranting Andy' Answers YOUR Questions [a SGTreport EXCLUSIVE]
- Gold Deleveries Record Level / Central Banks Purchase Record Levels of Gold
- “I think it’s important to keep gold in perspective when we look at gold and how much central banks own vs what is out there in the private sector. It totals less than 20%.
- Weekly Bull/Bear Recap: December 19-23, 2011
- How Did An Investment Pro Lose Money Investing In Gold?
| Gold price set for hyperbolic increase Posted: 24 Dec 2011 06:39 PM PST Alasdair Macleod I recently posted an article for GoldMoney showing how US True Money Supply (TMS) appeared to be growing at a hyperbolic rate, and that gold was also on a hyperbolic course. The difference between hyperbolic and exponential is a hyperbola’s rate of growth increases with time, while exponential growth does not. Hyperbolic growth in the quantity of money ends with hyperinflation, while exponential growth can go on for ever. Both TMS and the dollar price of gold are pointing to a hyperinflationary outcome. This article explains why this might be so. There are five apocalyptic engines pushing the growth in US money supply: they are the government’s budget deficit, its debt trap, the financial condition of the banks, the delusion of Keynesian solutions, and lastly simple compounding arithmetic. [*]The US government collects only 55c in taxes for every dollar spent. It is relying on economic recovery t...
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| Ned Naylor-Leyland Tells CNBC Europe That Gold is a Rigged Market Posted: 24 Dec 2011 06:13 PM PST "One thing I did notice in the preliminary report was another big jump in gold open interest in the December delivery month...up 539 contracts." [COLOR=#7f4028] Yesterday in Gold and Silver With trading winding down for the season, the lack of activity yesterday came as no surprise. The gold price traded between $1,615 and 1,600 spot the entire day...and closed at $1,605.40 spot, down $9.60. Volume was a rather anemic 94,000 contracts. The price action in silver was a bit more exci...
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| Why Is It So Difficult To Make Money In Gold & Silver Mining Stocks? Posted: 24 Dec 2011 06:00 PM PST AGAPI
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| It’s Worse Than Zero Hedge Said Posted: 24 Dec 2011 05:39 PM PST from blogs.dailymail.com:
By Don Surber Using the pseudonym Tyler Durden from the film "Fight Club," the proprietor of Zero Hedge has built his reputation on pessimism in a time when the financial wizards of the world have given smoke enemas to everyone. To read the blog is to want to convert all cash, stocks and bonds into gold, and retire to Idaho with plenty of ammo and a 10-year supply of MRE. And the more I read it, the more inclined I am to believe it. His post — "It's Official: US Debt-To-GDP Passes 100%" — is dire, but it understates just how big the mess is that we are in. Sure, the $15 trillion national debt is now equal to a year's worth of production and services in the United States. But that production does not belong to the U.S. government. The problem is this is a credit card balance that is 6 times the annual income of the federal government, based on annual tax revenues of $2.5 trillion. Readers should imagine this — owing MasterCard 6 times their annual earnings. Imagine making $25 grand a year and owing Visa $150,000. That's how bad off the federal government is. Read More @ blogs.dailymail.com
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| Alasdair Macleod: Gold price set for hyperbolic increase Posted: 24 Dec 2011 03:45 PM PST 11:41p ET Saturday, December 24, 2011 Dear Friend of GATA and Gold: Economist and former banker Alasdair Macleod, who spoke at GATA's Gold Rush 2011 conference in London in August, writes today that five factors will push the United States into hyperinflating the dollar. Macleod writes: "Essentially, money will be printed at an accelerating rate to buy time rather than face the three realities of government default, an over-indebted private sector, and a bankrupt banking system. The Keynesians are belatedly aware of the dangers and see no alternative to printing as much money as is required to defer these problems. The monetarists in the central banks are hesitant, torn between Keynesian fears of outright deflation and worries about the rate of monetary expansion so far." Macleod's commentary is headlined "Gold Price Set for Hyperbolic Increase" and it's posted at GoldMoney here: http://www.goldmoney.com/gold-research/alasdair-macleod/gold-price-set-f... CHRIS POWELL, Secretary/Treasurer 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. 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 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
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| Turkey Sharply Increases Its Gold Reserves Posted: 24 Dec 2011 12:57 PM PST [COLOR=#7f4028]Yesterday in Gold and Silver It was a very quiet trading day everywhere on Planet Earth yesterday. The gold price was up about nine bucks or so during Far East trading, but most of that tiny gain was taken away once trading began in London...and then later in New York. Gold closed at $1,607.00 spot...up $1.60. Net volume was only 40,000 contracts. Silver's price action was only a little more exciting. The price was up a bit more than 30 cents by 10:00 a.m. in London...it's high tick of the day...and all of that gain disappeared by the London silver fix at 12:00 o'clock noon local time. Then silver gained back that 30 cents by 9:30 a.m. Eastern time...and that was its New York high. From there it drifted lower until just before lunchtime, when a willing seller peeled two bits off the price in just a couple of minutes. Silver closed at $29.13...the same price it closed at on Thursday. Net volume was only 9,500 ...
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| Posted: 24 Dec 2011 12:41 PM PST Hello Jim, Gold investors freaking out? Go figure. Don't any of them believe in Santa Claus?? What I asked Santa for Christmas was a silver price below $30 for my stocking stuffer and a gold price under $1600 for my big present. I didn't realize so many people were gonna get upset over this Continue reading Jim's Mailbox
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| Gold futures market vulnerable if people want real metal, Paul Brodsky tells KWN Posted: 24 Dec 2011 12:15 PM PST 8:13p ET Saturday, December 24, 2011 Dear Friend of GATA and Gold: Fund manager Paul Brodsky tells King World News that the gold futures market is enormously vulnerable to a trend toward taking actual delivery of the metal, as metal is available to cover only 5 percent of the contracts sold. A summary of Brodsky's interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/23_P... Meanwhile, in the weekly precious metals review at King World News, Bill Haynes of CMI Gold and Silver says precious metals investors need to know very well why they're investing in the sector lest they get shaken out by volatility. And futures market analyst Dan Norcini sees the precious metals and commodities markets trading in a range until next year. Audio of their commentary is posted at the King World News Internet site here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/12/24_... Full audio of mining entrepreneur Jim Sinclair's most recent interview with King World News is available here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/12/23_... And full audio of mining entrepreneur Pierre Lassonde's most recent interview with King World News is available here: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/12/24_... CHRIS POWELL, Secretary/Treasurer 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 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 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...
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| Posted: 24 Dec 2011 09:30 AM PST The article below was posted today at Goldmoney, here. Gold price set for hyperbolic increase2011-DEC-24
 There are five apocalyptic engines pushing the growth in US money supply: they are the government’s budget deficit, its debt trap, the financial condition of the banks, the delusion of Keynesian solutions, and lastly simple compounding arithmetic. 1. The US government collects only 55c in taxes for every dollar spent. It is relying on economic recovery to reduce welfare payments and increase tax revenue to close the gap. This prospect is receding and establishment economists advise against cutting government spending. 2. The US government’s debt trap is concealed by the exceptionally low interest cost of funding. The only reason this cost is not higher is the Fed maintains a zero interest rate policy. However, as surely as night follows day, price inflation will start rising as monetary inflation feeds through, forcing the Fed to allow interest rates to rise long before any economic recovery occurs. The rise in interest costs will escalate the budget deficit, which will be financed, directly or indirectly by further monetary expansion. 3. The banks’ balance sheets are considerably weaker than stated, because of unrealised losses on assets, loan collateral and write-downs on their own debt. Real estate collateral write-downs alone probably exceed bank equity of $1,400bn. On an honest analysis the US commercial banks are collectively bankrupt. To simply survive the banks have no alternative other than to reduce loan exposure while requiring continuing monetary support from the Fed. 4. Keynesian economists, aware of the banks’ difficulties are terrified of bank credit contraction. For this reason, the macroeconomic establishment strongly promotes the expansion of narrow money to buy off a deflationary depression. 5. As the purchasing power of the dollar falls, the result of past monetary expansion, yet more dollars have to be issued to cover increased government costs. Past inflation becomes a compounding factor behind price rises. Essentially, money will be printed at an accelerating rate to buy time rather than face the three realities of government default, an over-indebted private sector, and a bankrupt banking system. The Keynesians are belatedly aware of the dangers and see no alternative to printing as much money as is required to defer these problems. The monetarists in the central banks are hesitant, torn between Keynesian fears of outright deflation and worries about the rate of monetary expansion so far. However, the history of monetary inflation confirms that once it enters a hyperbolic phase, it is almost impossible to stop. Armchair critics have derided the stupidity of central banks and economists in past hyperinflations, such as in Weimar Germany, Argentina and Zimbabwe. The truth is that when hyperinflation has become visible at the price level, it has already gone past the point of no return at the monetary level. Tags: dollar, gold price, inflation, Keynesianism, USA Alasdair Macleod 
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| Posted: 24 Dec 2011 08:15 AM PST Evidence shows that the U.S. money supply trend is in the early stages of hyperbolic growth coupled with a similar move in the price of gold. All sign point to a further escalation of money-printing in 2012…followed by unexpected and accelerating price inflation, followed by a rise in nominal interest rates that will bring a sovereign debt crisis for the U. S. dollar with it as the cost of borrowing for the government escalates…[Let me show you the evidence.] Words: 660 So says Alasdair Macleod ([url]www.goldmoney.com[/url]) in edited excerpts from his original article*. [INDENT]Lorimer Wilson, editor of [B]www.munKNEE.com (Your Key to Making Money!) edited the article below for the sake of clarity and brevity to ensure a fast and easy read. The author's views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyri...
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| Posted: 24 Dec 2011 08:03 AM PST
 The latest COT report on silver is sure to be the talk of the town among precious metals bulls. It is, in short, amazingly bullish. Without any further rambling, here is the latest COT report for silver courtesy of Software North:  To see the commercials at 42% bullish on silver is mind blowing for those silver bulls that follow these reports. To put the current set-up in perspective, here's a 4 year chart of the weekly COT data in a different format, courtesy of timingcharts.com:  What does this set up mean? Well, it means you should be buying silver! Specific trading recommendations reserved for subscribers.  ![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif) 
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| !! RED ALERT !! Emergency Broadcast : On The Brink of WW3 Posted: 24 Dec 2011 07:57 AM PST As the world sits on the eve of the looming breakout of thermonuclear war and economic meltdown, Lyndon LaRouche made an emergency international broadcast, calling for immediate action to remove Barack Obama from office, by purely constitutional means, as the only act which can guarantee the avoidance of a global nuclear holocaust in the very near term.
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| Posted: 24 Dec 2011 07:46 AM PST Summary: Long term - on major buy signal. Short term - on sell signals. Gold cycle is at levels of previous bottoms, therefore, new buy signals and set ups are actionable if risks are manageable. Read More...
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| Why Buy Gold Now, Forecast $4,500 Posted: 24 Dec 2011 04:31 AM PST On the economic front we see that for the month of October personal income had gained 0.4% while spending had increased 0.1%. For November, economists polled by MarketWatch had expected personal income to gain 0.2%, and for spending to also rise 0.2%. Meanwhile, there was no growth in November for the price index for personal consumption expenditures, though this inflation gauge is up 2.5% from the prior year. The core inflation reading, which excludes volatile food and energy costs, rose 0.1% in November, matching economists' expectations. Compared with the prior year, core inflation is up 1.7%. The personal-saving rate declined to 3.5% in November from 3.6% in October, and down considerably from the 7.1% rates we saw during the summer. Finally we see that credit card debt increased considerably during the month of October.
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| Bob Moriarty - Next week is the Bottom Posted: 24 Dec 2011 04:29 AM PST The proprietor and founder of the very popular 321Gold.com, Bob Moriarty, one of the Small Resource Company Gurus we admire here at Got Gold Report, begins a December 23 essay to his huge and growing flock: "When I am at home or even on the road if I have the time, I may read 50-60 different articles a day trying to figure out what pieces to post. It does get boring to read the same thing again and again and again. There is so little original thinking out there from anyone. On occasion I read something truly exceptional, an actual original piece well buttressed by facts and logic rather than rehashed plagiarism. I came across such a piece today and just had to post it, notwithstanding the fact that I happen to totally agree with it. The piece is so well backed up with facts, logic and even charts that I think every reader owes it to themselves to consider it. And I think he's got it exactly right. This has been a fairly good year for my predictions and shares. I'm only down about 50% and that's damned good considering that John Paulson is down some 52% and was personally responsible for gold crashing $105 in a single day in September due to a margin call. Gene Arensberg has written a piece he titled, "Why We Remain Bullish on Small Mining Shares." He has posted the piece on his website with charts explaining why he feels that way. The article is brilliant and certainly worth a must read. And I think he's exactly right. So regardless of the Euro crashing, and I think it will, and regardless of the banking system being on the point of a total collapse, and I think it will, gold shares are cheaper than they have ever been. That won't last long. Tax loss selling ends next week and gold shares are going a lot higher than anyone but Gene and I anticipate." – Mr. Moriarty's comprehensive piece continues at the link below and we strongly urge our Vulture readership to read his sage comments as well as visit Bob's 321Gold.com often, as we do. Source: 321Gold.com http://www.321gold.com/editorials/moriarty/moriarty122311.html Comment: Thanks very much Bob, you're a class act, and one of a select few we hope will be around for a long time to come. – Gene Arensberg
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| COMEX: The March to Irrelevance Posted: 24 Dec 2011 04:10 AM PST By Jim Willie CB, Golden Jackass Subscribe: Hat Trick Letter Divergence between paper gold and physical gold price is happening, the process begun. Actual physical shortages have kept the price up. The naked shorting of futures has kept the paper price down. The fraud cases and lawsuits, with no hint of prosecution, provide the levered force to create much wider divergence, as traders and entire firms depart the tainted crime scene that is the COMEX. Trust has vanished along with private accounts. At the center of the backdrop for the divergence, apart from the criminal events, is the economic deterioration and asset market downdraft. It leads to margin calls, loan payment obligations, fading investor confidence, negative sentiment, and a desire to avoid loss. Hence the huge liquidity concerns, selling of good assets that command a strong price, and central bank encouragement of gold sales even with lease. These forces conspire to push down the gold futures price from the discovery process, called the paper gold price. These forces, although real, are exaggerated by the Syndicate to explain all. On the other side is the desperation among central bankers to cover debt securities up for sale or rollover funding. They resort to utter hyper inflation by monetizing the many types of government bonds. They are obligated to aid their banker cohorts, and thus purchase truckloads of badly impaired sovereign bonds and other collateralized bonds. Over time these sovereign bonds have proved toxic. The compelling need to stimulate economies, to redeem toxic bonds, and to recapitalize and nationalize the big banks adds to the monetary inflation outcome. Therefore, two sides are in opposition in a battle to the death of one or the other. No middle ground can be achieved, not any longer. It is the quintessential battle between monetary hyper inflation and restoring bank system integrity to avert collapse. The insolvency has recently met illiquidity. The battle features strong forces on each side. The divergence between physical and paper gold price is widening. The incurable speculator junkies committed to the addictive leveraged game rigged by the Forces of Evil seem stuck at the casino tables, where fingers are lost, finally entire hands and arms. If their practice was to purchase physical, they could benefit from the paper price swoon, and join the Forces of Good team, rather than fighting the evil side on their dominated turf. To be sure, many aware analysts in the news maintain a small gold position in COMEX that is rolled over constantly. Many have physical positions but keep with the paper trades as a hobby, better described as an addition to the juice. Leverage cuts both ways. Their continued activity has left them exposed to theft, while knowing the criminality was widespread within the arena. So many players and firms are departing the arena altogether like Ann Barnhardt of BCM Capital. The divergence between physical and paper gold price is widening. The desperation of the bad team is growing. The gold cartel has benefited significantly from the fresh Libyan gold supply (144 metric tons) and Greek gold supply (111 metric tons), not to mention the ample Dollar Swap Facility. It is the bankers New Gold, as reported by intrepid Jeff Neilson. In a fresh sign of bankster desperation, the lease rates for gold have been pushed down to net negative levels. The fresh supply from the two broken nations has greatly aided the COMEX, providing new cannon fodder. Perhaps more wars to liberate the oppressed can be conjured up, to release more tyrant wealth. It is not a coincidence that negative gold lease rates came when Libyan gold was made available (heisted) and when Italian sovereign bonds went into critical DEFCON mode. The gold supply helped to aid the lack of bond demand. The gold lease story is analyzed more fully in the December Hat Trick Letter. Inelasticity BlemishA preface is warranted. The paper Gold market is very different in its internal dynamics from the physical. The paper Gold market shows signs of inelasticity that borders on comical. Witness the low demand in 2001 and 2002 when Gold had a paper price tag at $300 or less per ounce. Witness nowadays the amplified selling when the paper price declines.The leverage from the corrupted paper mechanisms forces margin pressures and sales. The leveraged game goes opposite to the real world of price mechanisms. On the upside, global demand rises with a rising physical price, called the gold fever. The inelasticity on the supply side is prevalent in the paper market, while the inelasticity on the demand side is prevalent on the physical market. To confuse the mix, mining firms realize some inelasticity as price falls, they are stuck with a liquidity crunch on their forward sales ruin. A huge amount of money is required to cover their losses, urged on by Wall Street advisors. Their mining operations suffer from lack of funds, and projects are curtailed. The paradoxical differences in dynamics help to push the gap between the paper and physical Gold price. The incompatible forces work to rip apart the COMEX. The divergence between physical and paper gold price is widening. Illicit Usage of Client Funds as CollateralThe hypothecation battle will bring sufficient publicity to help the divergence along. As more assets are seen as committed, involved, and tainted in the process of grabbing, snatching, and securing collateral, even by illegal means, the physical assets will be removed from the system. Parties will remove accounts and metal from the COMEX in response from basic self-preservation. On the investment and speculation side, harm has been rendered to managed risk. The client funds have begun to flee. The protection and security of money in private accounts has been under siege in recent weeks since the MF Global crime scene was established and the yellow tape cordon has been put in place. Investors are pulling money out of hedge funds at a rapid rate. The COMEX will be increasingly isolated. Clients funds were redeemed to the tune of $9 billion in October, almost four times as much as they pulled in September, according to Barclay Hedge and TrimTabs Investment Research. Investors in October yanked more from hedge funds, setting a single month high over the last two years. The redemptions are the largest for the hedge fund industry since July 2009, when $17.8 billion was returned. The Barclay Hedge office put lipstick on the corrupt pig by commenting on how investors have lost patience with lackluster investor returns. To be sure, the average hedge fund is down by about 4% this year. The global hedge fund industry size has been reduced to $1.66 trillion, still sizeable. It is always interesting, if not amusing, to read the spin from the isolated corners. Hedge funds are seeing capital depart for the simple reason of moving away from crime centers. In the process the COMEX is being isolated. With increased isolation comes the easily recognized fraud. Look for some major stories soon about the raids to the GLD and SLV inventories by their custodians engaged in naked shorting. The Exchange Traded Fund fraud story is analyzed more fully in the December Hat Trick Letter. The divergence between physical and paper gold price is widening. Dynamics of Paper Versus Physical BasisGrand divergence dynamics are becoming clear. Ann Barnhardt explained in detail how the COMEX will go away. It will not default, but rather fall into irrelevance. She laid it out in credible detailed form with numerous factors coming to play. The COMEX might still suffer the shame and spotlight of criminal prosecution. It will more certainly suffer from being ignored and shunned. The physical basis market will not respond to the declines in the paper futures market. The current dominant market will go away due to lost integrity and eroded trust. The consequences and implications of the recent major scandal and coverup are enormous, staggering, and sweeping. The changes from the MF Global failure and theft of private segregated accounts will come in time, perhaps accelerated by another similar event to slam the message home. The Syndicate has turned desperate, resorting to theft in the open daylight, which has resulted in direct consequences. Hundreds of COMEX clients waited in line for delivery of gold, and had their wallets stolen by JPMorgan. Their Gold & Silver set for delivery found its way into JPMorgan accounts at the COMEX. The details of the missing silver then reappearing silver is discussed in the December Hat Trick Letter. The slow mentally overlook this fact. The alert who point to fraud consider it a smoking gun. On its face, evidence mounts that JPMorgan simply converted 614k ounces of MF Global client silver into JPM licensed vaults. Big hats off to the Silver Doctors for excellent financial fraud forensic analysis. Do not expect prosecution over the crime, for MF Global, for JPMorgan, or for the accomplices in London, not even Jon Corzine. The Fascist Business Model in the Untied States does not permit prosecution. The bigger the crime, the more likely the perpetrator is in control of the government high offices, the financial ministry, the printing press, or the regulators. Ann Barnhardt explained how the COMEX will fade away into oblivion. Its final chapter will be marred by a grand price divergence, where the futures market price declines from shunned avoidance, while the cash physical market price holds steady then rises. Many including the Jackass had thought that a slew of delivery demands would force a drain in their gold & silver inventory, eventually leading to a slew of lawsuits, together to shut them down as a corrupt enterprise arena. The MF Global theft reveals the alternative route that seems more clear. The gold cartel led by JPMorgan and secretly by the USFed will not go quietly. They have resorted to theft of private accounts on the open stage. The money is not missing. That is the lie. It is held in JPMorgan accounts in London, where fraud laws are more relaxed. We have seen this Madoff movie before, but it will be shown on the silver screen again. The divergence between physical and paper gold price is widening. Financial Sense Newshour: Ann Barnhardt: The Entire Futures/Options Market Has Been Destroyed by the MF Global Collapse The backlash has begun and will gain strength. Barnhardt offered many cogent arguments with detail on how the COMEX will be ignored from distrust and suspicion of further thefts, as clients remove funds and close accounts. Here are her main points. They apply to Gold & Silver. She has the Barnhardt weblog.
The Great Shun By MinersAsset management funds are appealing to mining firms for direct metal supply. They are bypassing the COMEX in a new trend. It is a natural development, as miners seek a fair price and the funds seek a reliable supply. The COMEX is cut out of the process. The Sprott Funds have revealed how they sourced their precious metal from mining firms last year. The official exchanges are being cut off, a form of isolation as a result. The divergence between physical and paper gold price is widening. See the Ashanti story as typical. The COMEX is seeing reduced supply lines, reduced operations, more criminal implications, horrible publicity, and fewer clients. Criminal fraud does that, as lawsuits will follow like cold rain. The trend shapes up well for higher gold & silver prices. Mark Cutifani is CEO of AngloGold Ashanti, a $16 billion mining firm. He said,"Major [asset management fund] buyers are finding it is hard to get physical gold.People are coming directly to us [for large gold purchases,] people who want tonnes of physical gold, people with serious financial muscle, because they are finding it is very difficult to secure the volume of gold they want. That is something we have noticed over the last 18 months, and it has been increasing in the last six months. People are finding its hard to get physical gold." The clear message is that the COMEX has no spare available metal at all.Cutifani has good insights into the commodities and precious metals markets, and describes a fascination new trend regarding the global picture. He pointed out that major gold buyers are emerging from the Middle East and Asia. See the Bull Market Thinking article. New Markets FloweringNew gold centers are forming, where the safety is most assured. Hong kong and Dubai have emerged as reliable honest brokers, and will continue to provide valid safe haven. Switzerland, London, and other locations are fading fast. They are the corrupt centers where fascism has become prevalent, laced through the financial system.Takahiro Morita, the Japan director of the World Gold Council, reported that Japan's gold exports in the 10 months ended October totaled 95.6 metric tonnes, their highest level since 2008, when it registered at 95.5 metric tonnes. People who bought gold and jewelry in the 1980 and 1990 decades are selling back what they purchased, according to precious metals traders. Japan has turned into a big exporter. Contrast to the official side. Central bank purchases have risen by 114% over the previous quarter. Purchases by central banks could hit 450 metric tonnes this year, concludes the investment research at the council. The volume represents the highest level of central bank buying since at least 1970, perhaps the greatest in recent history. A veteran gold trader with actual experience in these locations pitched in to explain. He said, "These are not sales in Japan. They are exports, an important distinction. Many investors are busily relocating their precious metal bullion to Hong Kong and Dubai UAE. Look for Dubai to be the HK of the Middle East. The Chinese have made that decision, and it is being implemented with lightning speed." Most of the relocation from Japan shows up as exports, which require payments. October imports into China from Hong Kong rose 50% over September, and up 40-fold from last year. The more attractive fair price paid in Shanghai reached $50 above the corrupt controlled London price. The arbitrage has been very active. Chinese gold imports from Hong Kong hit a record. The Financial Times reported Chinese gold imports from Hong Kong hit a record high in October and astoundingly, they accounted for more than one quarter of the entire global demand. Data showed that China imported 85.7 tonnes of gold from Hong Kong in October, up 50% from the previous month and up more than 40 times from October of last year. It marks the fourth consecutive month that China's gold flows from Hong Kong have hit new highs. The article noted that the price arbitrage between London and Shanghai was favorable for Chinese imports during late September and early October, giving astute clever traders an edge. Gold on the Shanghai Exchange traded up to $50 per ounce above the main global market based in London, a record price difference.Purchases from China have fallen since October, as the recent strength in the USDollar has made gold more expensive. Also, considerable new strain has been felt inside China in recent weeks. Conclude that price arbitrage has begun to show itself across international boundaries. The divergence between physical and paper gold price is widening. One Gold Event, The Big SqueezeNo gold chart will be shown in this article, out of disrespect deserved for the COMEX criminal activity. A story was recounted in recent days from my best source of solid reliable gold information. The aware gold community has overlooked a phenomenon that might be more profound in action here and now. A major squeeze is on that capitalizes on the artificially low COMEX price and the higher honest physical price. The Barnhardt effect can be seen, or at least recounted. A gold trader informed that some multi-$billion purchase Gold orders have been in the process of filling at or near the $1600 price per ounce. The price must remain near $1600 to complete the orders and permit them to clear. Call it Agent2000 who seeks the massive amount of Gold, one of the Good Guyz. The name fits since their goal is to force the Gold price back over $2000/oz after the sale transaction clears. Since so large, the orders take time to fill completely. The low-ball buy orders have been filling for over two weeks. At the same time, the Agent2000 buyer has enlisted the aid of numerous assistants to push down the paper Gold price by putting extreme pressure on some bad players, some nasty types from the usual list of suspects in the Western banking sector. These bankers are being squeezed out of their gold, as they contend with deep insolvency, reserves requirements, falling sovereign bond values, depositors exiting, and more. They are players in what has been widely called the Gold Cartel. The Jackass term has been applied in a wider sense, as they have been part of the Syndicate that reaches into the Wall Street banks, the defense contractors, news media, and big pharma. The other side of Agent2000 is where additional intrigue lies. He (they) have buyers lined up on the physical side some deals ready to close at $1900 per ounce. Later the price will push over the $2000 mark. The buyers are ready. One must infer that the buyers have a great deal of money ready to devote to the battle. Maybe some is piled up to escape the clutches of the cartel, removed from the system. Maybe some is piled up at a major new slush fund to do battle with the cartel at their own game. Maybe some is piled up and kept out of sight from greedy hands in government officials, like off-shore in the Caribbean or sequestered in the Persian Gulf. This story might be perplexing to many in the gold community since the Good Guyz are pushing down the Gold price in order to facilitate a gigantic order that will work toward crushing the cartel by draining their gold. Their gold cannot be drained without the completion of a great many orders. It is only natural to attempt to achieve the lowest possible price. If the gold cartel insists on pushing the price down, then they open the door for major volume sales at the artificially low and very much bargain price. It is happening, but the gold community does not enjoy the symptoms of the process. So a huge huge huge buyer of gold is busy, and a multi-$billion order is working through. The buyer demands a $1600 price, while on the other side of the table Agent2000 has a sale lined up for the same metal at a $1900 price on physical. The trade will take gold bullion from the Bad Boyz hands and put it into the Good Guyz hands. In the process, the COMEX supply lines will be drained more. This is consistent with mining firms removing supply lines to the COMEX. The Agent2000 buyer is pushing price down, squeezing some evil parties hard, crushing testicalia along the way. He (they) describe to the distressed seller at $1600 that pressures will continue until the deal is closed. The seller is in tremendous pain with open distress showing. So many assume the Bad Powerz are pushing down the Gold price. Not so!! This event and transaction displays how some pain comes in many isolated cases of Good Guyz pushing the Gold price down to empty the Bad Powerz vaults. My source would not reveal the identity of Agent2000 or the location of the squeeze. It seemed like London. The money is not exclusively coming from China. Word has it that Russia is also applying the pressure, with some Chinese teamwork. The Competing Currency War has a new major flank. The divergence between physical and paper gold price is widening. THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS. subscribe: Hat Trick Letter Jim Willie CB, editor of the "HAT TRICK LETTER" From subscribers and readers: At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue. "As the nation screams down the mountain out of control into the abyss, it is good to have a guide. Jim Willie helps to understand what is happening and more important, why. With that information, you can make the right decisions to protect yourself from the current apocalyptic catastrophe. Forget the MSM propaganda. Here is offered good in-depth actionable reports that are the most insightful and valuable." "Your work is by far the most comprehensive, informative, and accurate of all, no question. I cannot overstate how much I have learned from your work. It must be a conscious effort on your part to teach people. Please don't give up on that commitment. Your article on the Petro-Dollar standa | ||
| Iran Begins Straits of Hormuz Wargames Posted: 24 Dec 2011 03:40 AM PST As was reported yesterday, Iran has now officially commenced its 10 day wargame exercise in the Straits of Hormuz. What happens next is 10 days in which one false move, either planned or false flagged, can have some serious (if required by the status quo) consequences: after all WTI is at $100, and the ECB has quietly "printed" $700 billion in the past 6 months, with the Fed not far behind - there has to be some implicit backstop to keep crude from soaring once it becomes clear that print mode is on, and the only way that can happen is the "possibility" of expanded oil supply through control of the main supply channels. From Reuters: "Iran began 10 days of naval exercises in the Strait of Hormuz on Saturday, raising concern about a possible closure of the world's most strategic oil transit channel in the event of any outbreak of military conflict between Tehran and the West. The military drill, dubbed "Velayat-e 90", comes as the tension between the West and Iran is escalating over the Islamic state's nuclear programme. Iranian authorities have given no indication the strait will be closed during the exercise, and it has not been shut during previous drills. "Displaying Iran's defensive and deterrent power as well as relaying a message of peace and friendship in the Strait of Hormuz and the free waters are the main objectives of the drill," Sayyari said. "It will also display the country's power to control the region as well as testing new missiles, torpedoes and weapons."
Those wishing to follow up to date developments on the wargames, and any potential surprises, can do so via the Press TV site.
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| Silver & Gold: ‘Ranting Andy' Answers YOUR Questions [a SGTreport EXCLUSIVE] Posted: 24 Dec 2011 02:42 AM PST OK guys, I'm excited about this one. Here's my exclusive interview with writer and financial pundit 'Ranting Andy' Hoffman from Miles Frankiln precious metals. In this in-depth 40+ minute conversation, we answer all of YOUR questions about silver & gold, mining stocks, the CFTC and much more.
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| Gold Deleveries Record Level / Central Banks Purchase Record Levels of Gold Posted: 24 Dec 2011 02:39 AM PST by Harvey Organ: Good morning Ladies and Gentlemen: The price of gold finished down by $5.20 to close the comex session at $1604.20. Silver was higher most of the day yesterday but succumbed to finish only 5 cents higher at $29.05. In the access markets, here are the closing prices for gold and silver: Gold: $1607.00 Europe and USA are printing their currencies with reckless abandon. Emerging countries are witnessing this as they are now using gold as official reserves. Gold is leaving London to satisfy their needs. We will go into this in the body of the commentary, but first let us head over to the comex and assess trading, inventory movements and delivery notices. I will also bring to you the COT report which will give position levels of the parties with respect to gold and silver. Read More @ HarveyOrgan.Blogspot.com
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| Posted: 24 Dec 2011 02:36 AM PST Paul Brodsky – Gold Could See Five Digits in 2012
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| Weekly Bull/Bear Recap: December 19-23, 2011 Posted: 24 Dec 2011 01:28 AM PST Submitted by Rodrigo Serrano Of Rational Capitalist Speculator Weekly Bull/Bear Recap: X-Mas '11 Edition Bull ++ U.S. data continues to show an economy that's weathering a turbulent global economy much better than the bears could have anticipated:
++ European economic data points to stabilization. Even stabilizing data, along with renewed and unprecedented efforts to steady the banking system, will result in renewed confidence and rallying markets.
Bear - European economic data foretells more social and political pressures on the horizon. Spanish Industrial Orders disappoint with a meager gain of 0.9% for December versus consensus expectations of 4.0%. Italian 4th quarter GDP signals the start of the country's 5th recession in the past 10 years (consumer confidence plunges to 1996 levels). France is likely in recession as well. Greek bailout talks are about to collapse as Vega threatens to sue. - The S&P 500 is nearing its late October highs, yet there are clear red flags in regards to the rally's health. The complacency is palpable. The VIX has plunged to 20, a far cry from "blood on the streets" that sustains any significant rally. Meanwhile, 10-yr U.S. Treasury yields are nowhere near challenging their late October highs. Ditto for copper. These stark differences are bearish divergences. Italian 10-yr yields are back above the 7% level (yields for Greece and Portugal are hugging their respective high marks as well). Banks are using their "newfound wealth" to stash more cash with the ECB, not buy crap government debt as the bulls had hoped. Nothing fundamentally has changed in the Eurozone or China. - Recent economic data exemplifies the pervasive weakness slowly infecting the global economy. Unrest continues in China and is likely to grow amidst weakening export growth and a popping housing bubble. November Japanese exports fall 4.5% YoY. — The Bulls are getting carried away with the decoupling theory:
- Iran announces plans to conduct a 10-day naval exercise at the Straits of Hormuz, feasibly impeding oil freight traffic. The game of cat-and-mouse has the potential to upend the global recovery if it spirals out of control. Relations between Israel and Turkey take a turn for the worse after Israel cancels a large military contract.
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| How Did An Investment Pro Lose Money Investing In Gold? Posted: 23 Dec 2011 09:06 PM PST Despite the recent set back in gold prices due to panic selling by investors, gold has still racked up an impressive 15.7% gain with a price increase of $218 per ounce since the first of the year. So how does a hedge fund manager with one of the best track records in the industry wind [...]
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