Gold World News Flash |
- Morgan on Silver
- The #1 Fund Manager to Beat Financial Crisis: UK Edition
- Gold Seeker Closing Report: Gold and Silver Gain Almost 1%
- Party Like It's MTM Time
- 2012 Will Be More Difficult Than 2011
- Merk on Euro, U.S. Dollar, Gold Investment Strategy
- Top Three Central Banks Account For Up To 25% Of Developed World GDP
- Silver Update: 1/5/12 Silver/Euro Beta
- The Can Is Reaching The End of the Alley / 10 Yr European Bond Yields Rise / Italian Over 7% Again
- Look Out Below – The Nightmarish Decline Of The Euro Has Begun
- Silver in the roaring 20′s and great depression
- Gold Closing in on Important Resistance
- Possible Trend Reversal Underway for Small Miners
- Capital Account: Max Keiser, America runs the "Special Olympics for Financial Fraud"
- Guest Post: Why Has Gold Been Down?
- Silver will be the next Apple, Turk tells King World News
- Gold Price Nearly Hit 200 Day Moving Average ($1,627) a Usual Place to Fall in a Not-Yet-Completed Downward Correction
- Bonanzas Don't End Well
- Peter Grandich: The big crime isn't being wrong but staying wrong
- Complete Cheatsheet For What To Buy Ahead Of QE3
- Another Good Year for Gold and Gold Stocks?
- An Excellent Article on Silver
- Why Has Gold Been Down?
- Gold Daily and Silver Weekly Charts - QE à l'infini Selon les Besoins
- Leeb - Sense of Desperation, But Gold Ready to Stampede
- Gold Outpacing Oil YTD As Stocks Disconnect Again
- James Turk: Gold is Great, But Silver is the Next Apple
- The State of the World Markets This Year – Marc Faber
- What to Do When Gold Stalls Out
- Don’t Walk, Flee America! says Gold Guru
| Posted: 05 Jan 2012 06:06 PM PST
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| The #1 Fund Manager to Beat Financial Crisis: UK Edition Posted: 05 Jan 2012 06:00 PM PST Bullion Vault
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| Gold Seeker Closing Report: Gold and Silver Gain Almost 1% Posted: 05 Jan 2012 04:00 PM PST Gold climbed up to $1625.51 in Asia before it fell back to $1596.75 by about 9:30AM EST, but it then rallied back higher for most of the rest of trade and ended with a gain of 0.65%. Silver rose to $29.638 in Asia before it fell back to $28.724 in early New York trade, but it also rallied back higher into the close and ended with a gain of 0.45%.
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| Posted: 05 Jan 2012 03:59 PM PST The ECB published its "Year of the RPG" year-end quarterly revaluation ConFinStat yesterday, and the trend continues. Here are the relevant results: In the week ending 30 December 2011 the increase of EUR 3.6 billion in gold and gold receivables (asset item 1) reflected quarterly revaluation adjustments, as well as the sale of gold coin by one Eurosystem central bank. Quarter-end revaluation
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| 2012 Will Be More Difficult Than 2011 Posted: 05 Jan 2012 03:38 PM PST  The United States actually has a smaller population and a smaller economy than the EU does. In fact, the EU has an economy that is nearly as large as the economies of the United States and China combined. The EU also is home to more Fortune 500 companies that the U.S. is, and the European banking system is far larger than the U.S. banking system. Anyone that does not believe that a financial collapse in Europe will have a devastating impact on the U.S. economy is living in a fantasy world. Americans better start paying attention to what is going on over there, because we are about to be broadsided by a massive financial tsunami originating out of Europe. Read more..... 
This posting includes an audio/video/photo media file: Download Now |
| Merk on Euro, U.S. Dollar, Gold Investment Strategy Posted: 05 Jan 2012 03:03 PM PST |
| Top Three Central Banks Account For Up To 25% Of Developed World GDP Posted: 05 Jan 2012 02:56 PM PST from ZeroHedge:
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| Silver Update: 1/5/12 Silver/Euro Beta Posted: 05 Jan 2012 02:18 PM PST |
| The Can Is Reaching The End of the Alley / 10 Yr European Bond Yields Rise / Italian Over 7% Again Posted: 05 Jan 2012 02:16 PM PST by Harvey Organ: Good evening Ladies and Gentlemen: Gold closed today up $6.60 to finish the comex session at $1619.00. Silver also finished higher by 20 cents at $27.27. During the early hours within the Euro trading period, gold rose to its zenith at $1626 exactly at the first morning gold London fix and then the bankers went to work knocking gold all the way down to below 1600.00 dollars. However that was short lived as physical buyers came out of the woodwork buying gold as the European debt contagion was catching fire. I will discuss all of these facts with you today. I consider the various commentaries today critical in understanding the mess within Europe. Right now gold in the access market here are the prices for gold and silver: Read More @ HarveyOrgan.Blogspot.com
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| Look Out Below – The Nightmarish Decline Of The Euro Has Begun Posted: 05 Jan 2012 02:12 PM PST from The Economic Collapse Blog:
The euro is a dying currency. On Thursday, the EUR/USD fell below 1.28 for the first time since September 2010. In fact, as I write this the EUR/USD is sitting at 1.2791. Back in July, the EUR/USD was over 1.45. But this is just the beginning. The euro is going to go a lot lower. At this point, there are several major European nations that are on the verge of default, the European financial system is overflowing with debt and toxic assets, and most major European banks are leveraged about as badly as Lehman Brothers was when it collapsed. Most Americans simply do not grasp the gravity of what is happening. Just because the Dow is sitting above 12000 and a few U.S. economic numbers have improved slightly does not mean that everything is going to be okay. As I wrote about recently, the EU has a bigger economy than we do and they have a bigger banking system than we do. U.S. banks are massively exposed to European sovereign debt and European banking debt. When the financial system of Europe collapses and the euro falls apart it is going to rock the entire planet. So you better look out below – the euro is coming down and it is coming down hard. After the euro implodes, nothing is every going to be the same again. So how far are we going to see the euro decline? Read More @ TheEconomicCollapseBlog.com
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| Silver in the roaring 20′s and great depression Posted: 05 Jan 2012 01:43 PM PST
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| Gold Closing in on Important Resistance Posted: 05 Jan 2012 01:14 PM PST courtesy of DailyFX.com January 05, 2012 03:38 PM 240 Minute Bars Prepared by Jamie Saettele, CMT My last comments were that “the spike under the September low probably cleared the market of weak longs so beware of a pop into 1600 before sellers return.” Price has exceeded 1600 and technical evidence suggests that 1630/40 should be strong resistance. This level is defined by the 20 and 200 day averages, 12/21 high, and channel resistance. Supports for Friday are 1594 and 1583. Other TA Articles...
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| Possible Trend Reversal Underway for Small Miners Posted: 05 Jan 2012 12:37 PM PST HOUSTON -- A trend reversal cannot get started until the trading for something has started moving in the opposite direction. On December 22, back when we named the Market Vectors Junior Gold Miner's Index ETF (NYSE:GDXJ) as our Top Pick for 2012 it was trading for $24.21 per share and still looking sickly and moving lower. A few days later it cut its December low in very thin trading of $22.58. Since then, however, we have to note at least a visible measure of "recovery" as the for-sure end of the nasty tax loss selling period came to a close December 30. If reversals get started with a change in direction of the trading, then the GDXJ may, that's may be at the beginning of just such a change in trend as the chart below hints.
Some Companies Surging From Oversold As our Vulture members can attest, a good many of the 35 different issues we track on technical charts, share with our members and attempt to game here at Got Gold Report, are reflecting and "answering" the improvement in the GDXJ index. Companies like Northern Tiger Resources (TSX:NTR.V) (up 6.5-cents or 54% from its December low); and Tarsis Resources (TSX:TCC.V) (Up 17-cents or 94% from its Christmas bottom), to mention two of the companies on our tactical bargain hunting list. (Full disclosure, we loaded up on both in December and hold a long position in both, so we have to be considered biased, but the trading speaks for itself with our without our commentary.) Part of that early January bounce is just the relaxation of the insidious tax loss selling, for sure. Tax loss sellers aren't all that particular about what the price is when they hit the bid. They just care about booking a loss before the time meter stops. Indeed, some even take the attitude of maximizing the tax loss instead of trying to squeeze the most cash out of the shares. We Vultures dearly love tax loss selling season, especially when the year got off to a good start, but then had a terrible finish like 2011, because some traders had big early-year gains to offset, and they had to offset it with already beaten up issues they probably didn't really want to part with so cheaply. That makes the 'already cheap' a lot cheaper before the window for taking capital losses closes. It also makes for some very, very tasty bargains for Vultures and we were in the thick of that road kill action in December. Some Insiders Buying in Size, Showing Confidence We think another factor adding to the small resource company bounce trying to get underway now is the support shown by some company insiders (the management, directors and others required to report purchases and sales of their own company). Both of the companies mentioned above saw significant insider buying as the tax loss selling peaked in November/December, for example. Northern Tiger's Greg Hayes personally loaded up with just under 700,000 shares of NTR as we reported in these pages. Tarsis insiders Marc Blythe and Mark Brown also showed confidence in their own shares in a big way in November and early December with the share price then in the $0.20s, as noted by CanadianInsider.com. We think that investors/speculators gain confidence when management shows confidence in their own shares, how about you? As we began this short offering, an issue, stock or index cannot pull a trend reversal unless the trading starts moving in the opposite direction, and in order for that to happen the issue or index has to first quit moving in the direction of the trend. Perhaps that is what we are finally beginning to see now that tax loss silly-selling is over. The CDNX and the GDXJ don't have all that far to go to the upside before the momentum gang (trend jumpers, momentum traders and retail penny stock gamers) will call it 'Game On.' That's when their fear quotient subsides to a lower level than their greed quotient and they decide to hop on board. For GDXJ, for example (chart above), a print of something like $27.50, which is just above the popular 50-day moving average, just might do the 'trick,' depending on the number of macro-distractions then in play. We'll see. Confidence tends to feed on itself in the same way that fear does, but it doesn't take all that much to derail a budding trend reversal in the early going. So let's not count any chickens from these few indicator eggs at this point. Meanwhile traders/speculators will be focused on other indicators, such as the one below which compares the action of The Little Guys in the GDXJ with gold metal. It would be difficult for a trend reversal to get underway as long as the small, less liquid and more speculative miners and explorers are underperforming gold – which is exactly what they have done since the nasty negative liquidity event (NLE) we have been in got started back in about April of 2011.
Note the positive divergence of the momentum indicators since about October, by the way. Depending on where one draws the downtrend line it does indeed look like the small miners are attempting to show a little confidence if that ratio is any guide. Are we about to move into a new, positive liquidity environment for The Little Guys, finally? Is a little confidence trying to sneak back in to get us started in 2012? Well, so far so good in that regard, but goodness, is there ever a long way to go if this is the beginning of a trend reversal for the Little Guy indexes, but some individual companies we track and game have gotten off to a pretty good start of it in January, 2012. We've mentioned two of them above, and we didn't even mention the good showings thus far by Riverstone Resources (TSX:RVS.V), Aldrin Resources (TSX:ALN.V), Constantine Metal Resources (TSX:CEM.V) and Evolving Gold (TSX:EVG.TO), all of which are fully fledged Vulture Bargain issues and all of whom have seen strong, high percentage bounces from their tax-loss influenced troughs. At least as far as those companies are concerned, a trend reversal attempt is certainly underway.
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| Capital Account: Max Keiser, America runs the "Special Olympics for Financial Fraud" Posted: 05 Jan 2012 12:35 PM PST  US congress today approved an extension of the payroll tax cut for two months...putting off a tax increase for millions of workers. So, after much partisan politicking, they did it -- saving face for the moment, but could it hurt their stock price headed into the 2012 elections? You heard me right. We'll talk about the political derivatives market a Chicago exchange is betting on. Would it be a continuation of a climate on wall street that encourages special treatment that our guest, fiancial journalist and inventor of the virtual specialist technology, Max Keiser, calls "the special olympics for financial fraud." And speaking of derivatives, those bets added fuel to the fire that engulfed the financial markets in 2008...most famously seen in the explosion and bailout of AGI (backdoor bailout of the big banks like goldman sachs, jp morgan, bank of america, etc.). More recently, MF Global customer money used to trade on these exchanges went missing. So where do futures exchanges come from and where have they gone wrong? From Ancient Greece to MF Global we'll break it down. And, heading into 2012 -- will it be a happy new year for the US economy? Maybe not. Economists predict sluggish 2 percent growth, an economy held down by housing troubles, government budget cuts, and a lousy job market. That didn't stop hoards of people from lining up at malls and waiting all night for a chance to buy the 175 dollar "IT" Air Jordans. We'll show you what happened. Read more.... 
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| Guest Post: Why Has Gold Been Down? Posted: 05 Jan 2012 12:11 PM PST Submitted by Jeff Clarke of Casey Research Why Has Gold Been Down? In spite of some short-term fixes, there remains no real resolution to the sovereign debt issues in many European countries. We're certainly not spending less money in the US, and now we're bailing out Europe via currency swaps with the European Central Bank. Shouldn't gold be rising? Yes, but nothing happens in a vacuum. There are some simple explanations as to why gold remains in a funk.
These forces have all acted to depress the gold price. Notice I didn't say that gold has suddenly become viewed as a poor safe haven. Nor that many of the world's major currencies are no longer being debased… nor that global sovereign debt issues are resolved… nor that interest rates are positive. No, the fundamental reasons for owning gold are still intact. So don't let the selling depress you. Let's put gold's recent price action into perspective. It peaked on September 5 at $1,895 (London PM Fix) and has thus been in decline for about three months. Yet look at the bull market's biggest three-month correction in relationship to the ultimate trend.
Gold fell 20% from August 1 to October 31, 2008, the biggest rolling three-month decline in our current bull market. And yet, it eventually powered much higher, in spite of many investors and industry experts thinking it had peaked at the time. The final quarter of 2011 ended down 5.5% over the previous quarter. The point? Don't confuse short-term volatility with long-term forces. The investor who looks only at today's headlines is prone to making ill-timed decisions. I realize that prices could trade lower – but this is why we keep a high level of cash. By the time this bull market is over, our current pullback will probably look something like the small red box in the chart above, with far higher prices in the intervening months and years. Which makes current prices a buying opportunity. I don't know if we're at the bottom of our recent decline or not – but I do know where gold and silver are ultimately headed Casey Research's Chief Economist and Editor of The Casey Report, Bud Conrad, is convinced gold will hit $2,000 in the first half of this year. If he is right, the opportunity to buy at today's levels will be fleeting. In the meantime, stay the course with your precious metals investments, no matter how the short-term picture looks. Gold stocks remain undervalued, and these are turbulent times. They appear to be far from over. Gold remains the #1 asset protector.
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| Silver will be the next Apple, Turk tells King World News Posted: 05 Jan 2012 11:24 AM PST 7:20p ET Thursday, January 5, 2012 Dear Friend of GATA and Gold: GoldMoney founder and GATA consultant James Turk today tells King World News that gold's bottom is in and that silver will be the next Apple, and soon. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/1/5_Jam... Meanwhile, fund manager Stephen Leeb tells King World News that gold is starting to move on its own again, independent of the dollar, which he finds bullish, even as he is distressed by the growing impoverishment around the world as rising food and energy costs start devouring people's lives. An excerpt from that interview is here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/1/5_Lee... CHRIS POWELL, Secretary/Treasurer 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 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 Golden Phoenix Signs Definitive Agreement Company Press Release SPARKS, Nevada -- Golden Phoenix Minerals Inc. (OTC Bulletin Board: GPXM) has signed a definitive agreement to acquire a 60 percent interest, with an option to buy an additional 20 percent interest, in the Santa Rosa gold mine in Panama, now owned by Silver Global S.A., a Panamanian corporation. Santa Rosa produced more than 100,000 ounces of gold from 1996 to 1998 before being closed in part to low gold prices, which are now more than five times higher. Golden Phoenix intends to acquire its initial 60 percent interest in Santa Rosa by acquiring 60 percent of the share capital of a recently created company under the name Golden Phoenix Panama S.A., formed to hold and operate the mine. Tom Klein, CEO of Golden Phoenix says: "The agreement establishes a solid framework from which we can advance Mina Santa Rosa to production-ready status." For Golden Phoenix's complete statement, please visit: http://goldenphoenix.us/press-release/golden-phoenix-signs-definitive-ac...
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| Posted: 05 Jan 2012 11:16 AM PST Gold Price Close Today : 1619.40 Change : 7.50 or 0.5% Silver Price Close Today : 2926.50 Change : 20.20 cents or 0.7% Gold Silver Ratio Today : 55.336 Change : -0.127 or -0.2% Silver Gold Ratio Today : 0.01807 Change : 0.000041 or 0.2% Platinum Price Close Today : 1412.90 Change : -5.10 or -0.4% Palladium Price Close Today : 638.70 Change : -28.55 or -4.3% S&P 500 : 1,281.06 Change : 3.76 or 0.3% Dow In GOLD$ : $158.49 Change : $ (0.76) or -0.5% Dow in GOLD oz : 7.667 Change : -0.037 or -0.5% Dow in SILVER oz : 424.25 Change : -3.04 or -0.7% Dow Industrial : 12,415.70 Change : -2.72 or 0.0% US Dollar Index : 80.91 Change : 0.782 or 1.0% The GOLD PRICE and the SILVER PRICE both rose today, but with much subdued enthusiasm. Gold closed Comex $7.50 higher at $1,619.40. Silver added 20.2c to 2926.5c. No significant advance here, just hanging on. The GOLD PRICE five day chart has widened out its swings and today posted what might be a double top at $1,625. Now the way of life is that you either advance or fall back, grow or die, unless you are a lichen or a rock under a lichen. If gold cannot pierce $1,625, then 'twill fall back to prove at $1,600 exactly how strong it is. Today GOLD nearly hit its 200 day moving average ($1,627) which would be a usual place to limit an upmove in a not-yet-completed downward correction. Y'all are probably scratching your heads and wondering why in the world a fellow who is so sure silver and gold will be higher this time next year and three to five or more times higher in the next 3 - 10 years would croak so about tomorrow's outlook? Well, 'cause that's what the chart shows, and arguing with a chart is like arguing with a road sign: makes you feel good, but doesn't get you anywhere you want to go. Interpretation is crucial here, because it will tell us whether we see a low lower than $1,524, or whether gold has now put all that trifling behind its back and turned its face to the sun. The SILVER PRICE appears more tired than gold. It has been beating its head against a solid wall of resistance above 2960c, without success. Today silver dropped as low as 2874.5, a little lower than yesterday, which was a little lower than Tuesday. Highs also have been successively lower. And I have just described what? Sounds like a downtrend. To gainsay that outlook silver must beat its way through 2960c and close higher. Patience, patience. I'd rather exercise a little patience here and maybe buy a little higher than buy and watch it sink to a final bottom. Today the US dollar index cashed that check it wrote yesterday. Rose 78.2 basis points (1.01%, giant move) to $80.911, nearly reaching yesterday's 81.10 target. High struck 81.016. Once the buck worms its way past that 81.00 turnstile, it will run fast for 81.50. What the dollar won, the euro lost. It fell 1.22% to close at 1.2787, face still firmly set on 1.2000 or less. How can I be so sure? Yesterday the euro gapped down, then today gapped down again, closing way below the last low. Down, down, down. Somebody slapped the yen today, knocking it below the lower channel boundary established August thru October. Fell 0.51% to 129.69c/Y100 (Y77.10/$1). Hope of higher yen died today. Stocks were a mess today. Nasdaq and Nasdaq-100 rose slightly, as did the S&P500, but the Dow and other sank, evidencing great confusion and faltering confidence. Today's Dow chart pictures precisely running out of gas (see chart at www.nasdaq.com) and sputtering to a halt. Dow fell 2.72 (0.02%) to 12,415.70, while the S&P500 rose 0.29% (3.76) to 1,281.06. Today the Dow sank as low as 12,283, crossing the perilous and deadly 12,300 line. Last three days (as well as today's chart) look like and empty jet fuel tank at 20,000 feet. Dow must breach 12,500 or drop into free fall. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2012, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. 
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| Posted: 05 Jan 2012 10:45 AM PST As a general rule, I fade 'bonanzas.' Shale Gas is the mother of them all. Leverage, Hope, and Commodity Prices. I'm particularly interested in the short side of the Gas E&P's. While I've hated them for quite a while based on the fact that the math doesn't work. This article was the trigger for my first dark side wager despite the fact that this is the only industry creating jobs in America. Statements such as the following indicate that CEO's in the industry have their heads up their asses:
What don't I like? 1. Leverage: From CHK all the way down these guys make Lehman look like Fort Knox. Both on and off balance sheet liabilities are the reason that all the players continue to sell interests in their best assets to strategic investors. Why do these companies continue to write down these "profitable" assets impairment charges. I don't feel there are any earnings, rather a mirage to continue Wall Street to enable this mess. While the spot prices and reserve life continues to move against them, they have no choice but to borrow and raise more capital to keep showing additional proven reserves. Read thru this. 2. Environmental Catastrophe: To be candid, I have no interest in the environment... but contaminating ground water, flamable drinking water, killing ecosystems, and causing earthquakes is enough for me to throw on a hemp necklace too. 3. Cowboys : He's surely a bad representative for the group, but Aubrey McClendon has the potential to blow up the whole industry. This guy almost blew up his own company once, and after he went broke he convinced his company (who was in deep) to buy his antique map collection for $12M. I'm not kidding. Keep this in mind when you hear about the 'visionaries' in this industry.
So, I don't hate everyone in the space. I actually like those who sell products and services into this group that has no choice but to plow ahead (until it ends). They are the modern day equivalent of those who sold supplies during the Gold Rush. Chew on this excellent analogy to the Gold Rush of '49:
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| Peter Grandich: The big crime isn't being wrong but staying wrong Posted: 05 Jan 2012 10:32 AM PST 6:30p ET Thursday, January 5, 2011 Dear Friend of GATA and Gold: Responding to commodities letter writer Dennis Gartman's return to the gold bull camp this week, market analyst Peter Grandich probably says it best today: The ultimate crime in investing is not being wrong but rather staying wrong. But remember that those who have stayed negative on the monetary metals for years after the metals began making idiots of them may have an agenda quite different from making money for their readers. Disinformation can prove very profitable too. Grandich's commentary is posted at his Internet site here: http://www.grandich.com/2012/01/the-ultimate-crime-in-investing-is-not-b... 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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| Complete Cheatsheet For What To Buy Ahead Of QE3 Posted: 05 Jan 2012 09:52 AM PST Fed and/or ECB intervention is coming: whether it is called LSAP, QE x, Nominal GDP targetting, selling Treasury puts, or what have you. A regime that now exists only by central planning intervention, by definition requires ever more central planning intervention to sustain itself, let alone grow further. Furthermore, the banks not only want QE, they need QE. And since central banks serve other banks, not the people it is only a matter of time. Don't believe us? Read anything written by Bill Gross in the past year. So what to do ahead of QE3? Luckily, SocGen has released a complete cheat sheet of not only the dates of the next steps, but what to buy and what to sell ahead of the announcement. In short - one should buy Mortgage Backed Securities, in order to "simply buy MBS before the Fed" - something Bill Gross knows too well and has been hoarding MBS relentlessly as a result, as reported here. More importantly - one should buy gold. Lots of it as "USD debasement restarts." You didn't think the Fed will allow US corporate earnings - the only thing keeping the market alive - to be crushed with a EURUSD that will soon go under 1.20, now did you? And as for crude going to $250 - yes, it may cause huge headaches for regular folks but for banks it means record bonuses, and as a reminder, the Fed works for the banks, not the people, pardon neo-feudal debt slaves... SocGen on the sequences of events:
In table format:
And here are your pair trades: long gold/MBS - short EUR (or USD - we disagree with SocGen that the dollar would benefit from QE3).
Finally, on gold: "Buy Gold, as its price is highly sensitive to US QE as every dollar of QE goes into M0, triggering debasement of the USD. $1900/Oz est. to close the gap with the monetary base increase since July 2007(QE1+QE2)"
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| Another Good Year for Gold and Gold Stocks? Posted: 05 Jan 2012 09:32 AM PST A new year, yes. But a well-aged story: Generalized fear and loathing about Europe is fueling the safety trade. The longest, most-boring financial crisis in history continues. For laughs, let's tote up the damage:
No single euro-story is driving the action: The Italian bank UniCredit plans to offer new shares at a steep discount to raise capital. Spain's government said that nation's banks need to raise 50 billion euros in new capital. A French bond auction generated less demand than you'd expect considering the rating agencies insist on rating France AAA. In other words, there's nothing especially new or alarming… just scattered reminders that the dust bunnies of Europe can't be swept under the proverbial rug. Gold isn't escaping the fallout. It dipped below $1,600 just after Comex trading opened… At last check, it's recovered a bit to $1,607. Silver clings to $29 by a few slender pennies. "What we learned in 2011," wrote Bill Bonner on Tuesday, "was that when a Great Correction pinches, the dollar is the salve of choice — not gold. "When investors fear losses, they turn to the dollar for protection." They will continue to do so a while longer, Bill surmises: "We'll probably see a further correction in the gold price…perhaps down to $1,200. Or perhaps it will stop at $1,400." "2012 should see more trouble from Europe, and therefore potentially more dollar buying," adds Peter Schiff — who now sells bullion in addition to running a brokerage. "But," he cautions, "what is important to understand about these circumstances is not the scale of the moves but the direction of the trend." Even with the dollar riding high, "it's still down over 30% over the last decade as measured by the generous US dollar index," says Mr. Schiff. "Gold, by contrast, is up over 350% in that period. "Of course, past performance does not guarantee future results, but the fundamentals have not changed." Indeed, one day, it will dawn on nearly everyone that no fiat currency is safe, including the dollar. But we're not there yet. Not by a long shot. It goes back to our friend Doug Casey's crack about how something that's inevitable might not be imminent. For all of today's "risk-off" weakness, gold stocks are holding up remarkably well. The HUI index is off a quarter percent, a hair below 520. "In this environment, to make the big money," says our old friend Rick Rule, "you need to enter [gold] stocks that aren't institutional momentum favorites. Those stocks aren't going to work." Instead, you need to look for "the kinds of stocks that are going to be sold to the Rio Tintos and the BHPs and the Newmonts and the Barricks of the world. The buyer this year is going to be the industry." Thus, "the impetus for the market in exploration stocks this year will be takeovers. The companies that have done a good job, although they may not find traction among institutional or retail investors, will be taken over by larger mining companies. "These larger companies have both the need to replace production and the financial strength to complete the takeovers and to build out the discoveries that have been made by the juniors." As a result, Rick sees the majors paying substantial premiums for the juniors — more than you'd normally see. "If the industry sees $2 billion in discounted free cash flows and they see a market cap of $600 or $700 million, they are willing to pay $1.3 billion to secure net-present value. So it's possible that you will see 70%, 80% or even 100% premiums in bad markets, for good assets, in select names." Options traders are already sniffing this out: Early signs of a rally in small-cap gold stocks are showing up. According to figures from Trade Alert, open interest in call options on GDXJ — the gold junior ETF — reached a record 222,300 contracts as of Tuesday. Starting a week earlier, "Options traders have demonstrated conviction in a turnaround, setting up multiple new positions that profit from gain over the coming months," reports the Dow Jones Newswire. What's more, the put-versus-call ratio is the lowest since mid-September. Interesting activity for an ETF that, as we noted yesterday, dropped 38% during 2011. Another catalyst Mr. Rule sees: New gold discoveries. "It's my belief that we are going to re-enter a discovery cycle and I would be surprised, frankly, if we didn't have four or five names that made 50- or 100-fold returns on pre-discovery market capitalization." In fact, Rick finds the coming period analogous to the mid-1990s… when names like Diamond Fields shot up from $4 to $160… and Arequipa Resources catapulted from 30 cents to $30. Addison Wiggin Another Good Year for Gold and Gold Stocks? originally appeared in the Daily Reckoning. The Daily Reckoning, published by Agora Financial provides over 400,000 global readers economic news, market analysis, and contrarian investment ideas.
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| An Excellent Article on Silver Posted: 05 Jan 2012 09:29 AM PST The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! January 05, 2012 01:05 PM Read [url]http://www.grandich.com/[/url] grandich.com...
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| Posted: 05 Jan 2012 08:43 AM PST After all, in spite of some short-term fixes, there remains no real resolution to the sovereign debt issues in many European countries. We're certainly not spending less money in the US, and now we're bailing out Europe via currency ... Read More...
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| Gold Daily and Silver Weekly Charts - QE à l'infini Selon les Besoins Posted: 05 Jan 2012 08:35 AM PST |
| Leeb - Sense of Desperation, But Gold Ready to Stampede Posted: 05 Jan 2012 08:19 AM PST  With gold, silver, oil and stocks all moving higher to start 2012, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management. KWN wanted to get his take on where gold and silver are headed and also his thoughts on increasing crime. When asked about the recent strength in gold, Leeb responded, "Yeah, Eric, this is a big break from last year. Gold has shown, through the last ten or twelve years, that it's in an uptrend regardless of what happens. But, at least toward the end of last year, there was an inverse relationship between the dollar and gold. The dollar up, gold down big. The dollar down, gold up a little. That's really changed in the first three trading days of 2012."
This posting includes an audio/video/photo media file: Download Now |
| Gold Outpacing Oil YTD As Stocks Disconnect Again Posted: 05 Jan 2012 08:18 AM PST Late in the day as news broke of Iran nuclear talks, Oil lost some of it sheen and Gold overtook it year-to-date. Gold is now up 3.6% YTD against stocks up 1.9% (and the USD up 0.75%) as we saw stocks on their own today compared to credit markets and broad risk assets. Instead of following yesterday's stability post-Europe, FX (from a USD perspective) continued its uptrend as equities (led by financials - led by BofA on refi rumors) surged into the green as high yield credit, investment grade credit, and high-yield bond ETFs all lost ground on the day. Treasuries did sell-off (directionally correct at least) with stocks rallying but did not move as much on a beta-adjusted basis (even though 30Y is now 16bps wider this year).
US equities (BofA +11.1% YTD against the next best JPM at a mere 3.3% YTD seems - as we said earlier - a little bit of a stretch) disconnected once again from credit markets...
..and from broad risk markets in general (CONTEXT).
and Gold inches ever closer to its 200DMA and is now outperforming stocks and Oil on the year...
though the fact that Treasuries did not sell-off as
As EURUSD ends at its worst levels of the day holding under 1.28. Charts: Bloomberg
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| James Turk: Gold is Great, But Silver is the Next Apple Posted: 05 Jan 2012 07:56 AM PST |
| The State of the World Markets This Year – Marc Faber Posted: 05 Jan 2012 07:50 AM PST It's not the markets but the governments in which those markets exist that bear watching, for this year in particular, says Marc Faber in Prieur du Plessis' Investment Postcards from Cape Town. Investors in the Indian market are not a happy lot as it crashed 24% in 2011. The new year does not begin on a very happy note, either, and experts still see India in a danger zone. In an interview, Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, warned that the Bombay Stock Exchange may bottom out between 12,000 and 15,000 levels. Expecting further weakness in the emerging markets in the initial part of 2012, he is not so positive on India. Faber is looking at an entry into India in the next six to nine months. There is, however, a bit of good news for foreign investors interested in the Indian market. The government will now allow individual foreign investors direct access to its stock market from January 15. Foreign fund inflows, a major driver of Indian stocks, dried up with net outflows of about $ 380 million as of Wednesday, a far cry from record inflows of more than $29 billion in 2010 that had powered a 17% rise in the benchmark index, following an 81% surge in 2009. Below is an edited transcript. What are the expectations you would have of 2012 from equity markets, given how bad last year was for equities worldwide? We have to clarify the statement about how bad it was for equities worldwide, because the US market was flat and it significantly outperformed most other markets in the world, in particular emerging economies' stock markets. This resembles the underperformance we had in 2008 that made the major buying opportunity. What we will have in 2012 is initially maybe some maybe further weakness in emerging economies against the US market, and then a major low in emerging stock markets, including India. I was looking for India to bottom out the Sensex between 12,000 and 15,000, and we are getting there slowly. It's not just India but all the BRIC markets fell off between 20% and 30% in dollar terms last year. Are you expecting significant outperformance from those markets relative to the US in 2012? So I think we may get a similar picture. That's why when I read all the strategies that say we should invest in the US, I say maybe that's correct for the next three months or so, but I would rather be looking at an entry point in markets like India over the next six to nine months. Equity market performance was driven by what happened in the currency market. For this year, what will you say is the likely outcome on parameters such as the dollar index, what happens with the euro-dollar exchange, and how currencies are impacted by that? To make forecasts about free markets is very difficult. The free market and the perfectly functioning market is a market where no market participant has dominated the market…but today you have a manipulated market. It is the governments which intervene continuously to influence the price of money—in other words, interest rates and fiscal policies. So to make any predictions of political issues, we can't know exactly how far the ECB in Europe will monetize and at what stage QE3 will come about in the US. But if the S&P drops another 10% you can be sure that there will be more QE in the US. So the markets would be supported by additional liquidity injections. Where does all this leave the commodity markets for 2012? If you had to take calls on gold and crude, how do you think they will do this year? We have to distinguish between precious metals and industrial commodities. My concern is that the Chinese economy is going to be weaker than is expected and that the demand for industrial commodities will probably disappoint. So I am not particularly keen on buying industrial commodities at this stage. In the case of gold, as you know we had a ten-year bull market and we peaked out in dollar terms on September 6 at $1,921 per ounce, at which stage the gold price had somewhat overshot on the upside and we are in a correction phase. I happen to think that the correction phase is not completely over, but recently sentiment on both silver and gold have turned very negative. We may have a trading rebound rally, and then some further weakness into possibly February or March, and then probably a major low. Then the question will be whether the precious metals rally again, and will they exceed the peak of 2011 or not. By how much would you postpone expectations of a big up move for equity markets? When do you think there will be a clean resumption of the trend or possibly the potential for markets to get into a bull phase again? This is a good question, because essentially what you could get in the world is worsening geopolitical and economic conditions. Let's say Israel attacks Iran. It's a negative event, basically, but it could be countred by monetization everywhere in the world—in other words, liquidity injections. So stocks could go up while conditions worsen. This usually happens when you massively inflate the quantity of money. But a mentally sound market in my opinion will only come about when the system has been cleaned and moved down after the financial crises of 2008. It's essentially just painting the building with fresh paint, but we haven't addressed the fundamental problem of the Western world, which is an over-indebted society. Source: MoneyShow
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| What to Do When Gold Stalls Out Posted: 05 Jan 2012 07:48 AM PST Addison Wiggin – January 5, 2012
The longest, most-boring financial crisis in history continues.
No single euro-story is driving the action: The Italian bank UniCredit plans to offer new shares at a steep discount to raise capital. Spain's government said that nation's banks need to raise 50 billion euros in new capital. A French bond auction generated less demand than you'd expect considering the rating agencies insist on rating France AAA. In other words, there's nothing especially new or alarming… just scattered reminders that the dust bunnies of Europe can't be swept under the proverbial rug.
"When investors fear losses, they turn to the dollar for protection." They will continue to do so a while longer, Bill surmises: "We'll probably see a further correction in the gold price…perhaps down to $1,200. Or perhaps it will stop at $1,400."
"But," he cautions, "what is important to understand about these circumstances is not the scale of the moves but the direction of the trend." Even with the dollar riding high, "it's still down over 30% over the last decade as measured by the generous U.S. dollar index," says Mr. Schiff. "Gold, by contrast, is up over 350% in that period." "Of course, past performance does not guarantee future results, but the fundamentals have not changed." Indeed, one day, it will dawn on nearly everyone that no fiat currency is safe, including the dollar. But we're not there yet. Not by a long shot. It goes back to our friend Doug Casey's crack about how something that's inevitable might not be imminent.
Instead, you need to look for "the kinds of stocks that are going to be sold to the Rio Tintos and the BHPs and the Newmonts and the Barricks of the world. The buyer this year is going to be the industry." Thus, "the impetus for the market in exploration stocks this year will be takeovers. The companies that have done a good job, although they may not find traction among institutional or retail investors, will be taken over by larger mining companies." "These larger companies have both the need to replace production and the financial strength to complete the takeovers and to build out the discoveries that have been made by the juniors."
"If the industry sees $2 billion in discounted free cash flows and they see a market cap of $600 or $700 million, they are willing to pay $1.3 billion to secure net-present value. So it's possible that you will see 70%, 80% or even 100% premiums in bad markets, for good assets, in select names."
Starting a week earlier, "Options traders have demonstrated conviction in a turnaround, setting up multiple new positions that profit from gain over the coming months," reports the Dow Jones Newswire. What's more, the put-versus-call ratio is the lowest since mid-September. Interesting activity for an ETF that, as we noted yesterday, dropped 38% during 2011.
"It's my belief that we are going to re-enter a discovery cycle and I would be surprised, frankly, if we didn't have four or five names that made 50- or 100-fold returns on pre-discovery market capitalization." In fact, Rick finds the coming period analogous to the mid-1990s… when names like Diamond Fields shot up from $4 to $160… and Arequipa Resources catapulted from 30 cents to $30.
You see, in the course of assembling our 2012 forecasts, our research team stumbled upon something remarkable in the gold sector. It's happened only four times in the last 33 years. The average gain that's resulted: 158%. The maximum: 219%. We're so excited about this, we've assembled a team of experts to lead an online seminar… and you can watch it absolutely free. Rick Rule will be among the participants. So will another Vancouver favorite, U.S. Global Investors chief Frank Holmes. Our own resident rockhound Byron King is in the mix, and so are Chris Mayer and Michael Pento. This event launches one week from tomorrow. You can ensure your access today. Details here.
That's up from the month before, and still comfortably above the 50 dividing line between expansion and contraction — but below the "expert consensus." Looking under the hood, we see employment in the service sector actually shrank last month. Doesn't exactly square with ADP's private-payroll number. Hmmm…
The Street was expecting double that figure.
"What was revealed in the audit," the article states, "was startling: $16,000,000,000,000.00 had been secretly given out to U.S. banks and corporations and foreign banks everywhere from France to Scotland" during the 2008 panic. As synchronicity would have it, someone sent us a link to this video making the same point… and much more entertainingly. Before you click on it, a warning: At the end, you learn the video is part of someone's campaign for Congress. Try as we might to stay out of politics, we find we keep getting sucked in… and we suspect the problem will get worse as 2012 goes on.  So to answer the reader's question: Yes, it's for real. A caveat: A lot of that is a case of these banks borrowing, say, $1 billion overnight, returning it, borrowing it again the next night, and so on… running up the total. But even when you take out the double counting, the numbers are staggering. The lending reached its peak on Dec. 5, 2008 — at $1.2 trillion. As Bloomberg reported last summer, that figure "was almost three times the size of the U.S. federal budget deficit that year and more than the total earnings of all federally insured banks in the U.S. for the decade through 2010." And the banks that took out those loans are no more solvent now than they were during the panic three years ago. The difference now is they no longer have to apply "mark-to-market" accounting; they can value their "assets" however they damn well please.
"This needs to be publicized and analyzed to make the public aware of how egregious this act is."
"However, no one cares to question the humanity or legality of such laws. Even if Americans were excluded, the USA has no right to kidnap non-U.S citizens without due legal process, proving someone's guilt in court and affording them the right to defend themselves and clear their names." "If I recall correctly, the Bible tell us, 'Recognize that your neighbor feels as you do, and keep in mind your own dislikes' (Sirach 31:15). U.S. of Authoritarianism has sunk to despicable lows and is no different from third-world dictatorships. I guess Americans will wake up only when they will taste their own medicine, but by then it may be too late anyway."
"We even hear President Obama saying 'for who the bell tolls,' and every TV newscaster and newspaper making the same mistakes. 'For he and I' (good grief), instead of 'for him and me and for whom'!" "Thanks for knowing your grammar, plus all that other good information."
"The other point is it is all those little subtle comments that maybe the readers miss that go through the daily post. It takes a lot of time and readers must read these missives daily to understand the real value of the free service." "And no, I don't always agree with everything. I just take the good with the bad." "Thanks again for the daily education." The 5: You're welcome. Cheers, Addison Wiggin P.S. "If there's one byproduct of the European crisis I am sure of, it's global market volatility," says our income specialist Jim Nelson. "Likewise, the conversation over what we should do about Iran is likely to grow in intensity. No matter what direction the governments of the Western world take this conversation, the result will be the same: more volatility." "That means stock markets are likely to see more 4% and 5% intraday movements in 2012. This is great news for day traders." And if you're not a day trader? You still have some excellent choices, Jim says. "There's no reason we should let speculators have all the fun in 2012." "Rapid volatility causes investors to do one of two things: either get out of stocks altogether or hedge their positions against potential rapid movements." Jim has refined a strategy to take advantage of those potential rapid movements. No day trading required. You won't have to chain yourself to your computer… and you can still rake in some handsome gains.
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| Don’t Walk, Flee America! says Gold Guru Posted: 05 Jan 2012 07:46 AM PST From the recent comments and articles on the Internet following Obama's signing of the National Defense Authorization Act (NDAA), it appears a good chunk of Americans have figured out that the U.S. has just declared martial law. Others won't get it; instead, they'll serve as 'useful idiots' for the subsequent acts of tyranny. No military uniforms or funny mustaches, just a flick of the pen, utterance of a few words of reservation for authorizing the 'act', and it's done. No show of force or goon squads rounding up journalists and intellectuals followed the declaration of martial law. No interruptions of regularly scheduled broadcasts to announce the coup and no CSPAN coverage of the event, either. No sir. That would be most inadvisable to a pathologic regime confronted with the knowledge that 300+ million firearms are held by 'free' citizens who have a long-running disdain for banana republic thugs.
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For anyone who still hasn't grasped the magnitude of the central planning intervention over the past four years, the following two charts should explain it all rather effectively. As the bottom chart shows, currently the central banks of the top three developed world entities: the Eurozone, the US and Japan have balance sheets that amount to roughly $8 trillion. This is more than double the combined total notional in 2007. More importantly, these banks assets (and by implication liabilities, as virtually none of them have any notable capital or equity) combined represent a whopping 25% of their host GDP, which just so happen are virtually all the countries that form the Developed world (with the exception of the UK). Which allows us to conclude several things. First, the rapid expansion in balance sheets was conducted primarily to monetize various assets, in the process lifting stock markets, but just as importantly, to find a natural buyer of sovereign paper (in the case of the Fed) and/or guarantee and backstop the existence of banks which could then in turn purchase sovereign debt on their own balance sheet (monetization once removed coupled with outright sterilized asset purchases as is the case of the ECB). And in this day and age of failed economic experiments when a dollar of debt buys just less than a dollar of GDP (there is a reason why the 100% debt/GDP barrier is so informative), it also means that central banks now implicitly account for up to 25% of developed world GDP! 
A new year, yes. But a well-aged story: Generalized fear and loathing about Europe is fueling the safety trade.
For laughs, let's tote up the damage:
Gold isn't escaping the fallout. It dipped below $1,600 just after Comex trading opened… At last check, it's recovered a bit to $1,607. Silver clings to $29 by a few slender pennies.
"What we learned in 2011," wrote Bill Bonner on Tuesday, "was that when a Great Correction pinches, the dollar is the salve of choice — not gold."
"2012 should see more trouble from Europe, and therefore potentially more dollar buying," adds Peter Schiff — who now sells bullion in addition to running a brokerage.
For all of today's "risk-off" weakness, gold stocks are holding up remarkably well. The HUI index is off a quarter percent, a hair below 520.
"In this environment, to make the big money," says our old friend Rick Rule, "you need to enter [gold] stocks that aren't institutional momentum favorites. Those stocks aren't going to work."
As a result, Rick sees the majors paying substantial premiums for the juniors — more than you'd normally see.
Options traders are already sniffing this out: Early signs of a rally in small-cap gold stocks are showing up. According to figures from Trade Alert, open interest in call options on GDXJ — the gold junior ETF — reached a record 222,300 contracts as of Tuesday.
Another catalyst Mr. Rule sees: New gold discoveries.
We agree… and not just because we've respected Rick's analysis for years, so much so that he's become a fixture of our annual symposium in 
A day before the Bureau of Labor Statistics delivers its December jobs report, two "preview" numbers rang in better than expected…
The service sector grew modestly in December. The ISM nonmanufacturing number clocked in this morning at 52.6.
Here come the "worse than expected" reports on the holiday retail season: Same-store sales at Target rose 1.6% last month.
"Is this for real?" a reader writes. He then links to a six-month old article from a site called unelected.org detailing the results of the one-time Federal Reserve audit made possible largely through the persistence of Rep. Ron Paul.
"At last, some discussion of this travesty," writes a reader after our mention of the National Defense Authorization Act, complete with its effective repeal of habeas corpus rights.
"It is very comforting to know," another writes, "that my fellow 5 Min. Forecast reading Americans passionately engage in discussions about how the NDAA includes or excludes U.S citizens from 'indefinite detention without any legal access.'"
"You can't imagine how delighted I am that you are capable of using proper English grammar," writes a reader, evidently impressed with the correct usage of "whom" in a recent issue.
"Thank you for opening yesterday's 5 with my opinion," a reader writes. "It always brings a smile when I feel like just maybe my thinking is in line with yours."| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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