Gold World News Flash |
- Look for End of Debt Supercycle: Thoughts from the U.S. Global Investors 2012 Forecast
- Federal Reserve and Gold
- Chilton/Silver TA
- GOLD PRICE TO SNAP BACK
- Gold Bullion Billy Goat
- Golden Wall of Worry
- Dutch Central Bank Admits That 90% of Its Gold is Abroad: Repatriation Urged
- Outlook for 2012: Total Collapse of Society
- “I suspect we are at the low end of the range on gold.”
- KWN Exlcusive - Huge Rally in Gold & Silver, 2012 Outlook
- Gold Seeker Closing Report: Gold and Silver Gain Over 1% and 3%
- Farmers Sue Jon Corzine Over Their Missing Money
- It's All Been Done Before
- Charting The Price Of Gold... All The Way Back To 1265
- The Homeric Choice: Scylla, Charybdis and Gold
- The European Debt Crisis and Your Investments
- Charting The Price Of Gold... All The Way Back To 1265
- Harvey Organ's The Daily Gold & Silver Report
- GATA board member Ed Steer interviewed by Dave Janda
- In the midst of the eurozone meltdown, a new crisis has gone unnoticed: a shaky derivatives market.
- Europe's Ticking Time Bomb: Credit Default Swaps
- Gold Price rose $23.50 Smashing Down the Gates at $1,625 Reaching $1,639.65 Closing at $1,631
- Other Technical Indicators
- Hathaway - Short Squeeze in Gold to Crush Naked Shorts
- In The First Few Days Of 2012, US Mint Sells More Silver Than In Most Months Of 2011
- Gold "Opportunity Gap" Closing
- Why MF Global Should Concern All Gold and Silver Mining Share Investors
- Tocqueville's Hathaway expects 'terrific short squeeze' in gold
- The Nearest Thing to a Permanent Thing
- 2012-The Junior Miners Rising Up–Interview with Jeb Handwerger–01-10-12
| Look for End of Debt Supercycle: Thoughts from the U.S. Global Investors 2012 Forecast Posted: 10 Jan 2012 07:30 PM PST What do investors need to be watching out for in 2012? More Eurozone drama? Record gold highs? A hard landing in China?
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| Posted: 10 Jan 2012 07:02 PM PST
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| Posted: 10 Jan 2012 07:02 PM PST I have included a new Chilton interview in this commentary. As well as some technical indicators if anyone is...
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| Posted: 10 Jan 2012 06:18 PM PST Nichols on Gold
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| Posted: 10 Jan 2012 06:08 PM PST Graceland Update
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| Posted: 10 Jan 2012 06:06 PM PST The Gold Speculator
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| Dutch Central Bank Admits That 90% of Its Gold is Abroad: Repatriation Urged Posted: 10 Jan 2012 04:42 PM PST "It seems likely that the only way that the 'big 8' Commercial traders in silver are going to doing any more serious short covering is to the upside." [COLOR=#7f4028] Yesterday in Gold and Silver The gold price got sold down the moment that trading began in New York on Sunday evening. The low of the day [about $1,605 spot] was in shortly after 9:00 a.m. Hong Kong time...and from there the price rallied pretty sharply going into the London open. Then about 8:15 a.m. GMT, the high of the day was in...and the gold price came under pressure for the balance of t...
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| Outlook for 2012: Total Collapse of Society Posted: 10 Jan 2012 04:06 PM PST  
This posting includes an audio/video/photo media file: Download Now |
| “I suspect we are at the low end of the range on gold.” Posted: 10 Jan 2012 04:04 PM PST Rick Rule – Gold Now Set for Dramatic 1970s Style Up-Moves
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| KWN Exlcusive - Huge Rally in Gold & Silver, 2012 Outlook Posted: 10 Jan 2012 04:02 PM PST  With gold trading around the $1,640 level and silver near $30, today King World News was given exclusive rights to distribute John Hathaway's letter to investors, which gives his outlook for 2012. In the last 4 months, Hathaway, the acclaimed manager of Tocqueville Asset Management L.P., correctly called both bottoming areas in the price of gold. He made those calls almost to the day of the dead lows. He may not be in the business of calling bottoms, but he sure has been nailing them. Here is what he had to say to investors:
This posting includes an audio/video/photo media file: Download Now |
| Gold Seeker Closing Report: Gold and Silver Gain Over 1% and 3% Posted: 10 Jan 2012 04:00 PM PST Gold climbed $30.59 to $1639.69 by a little after 9AM EST before it fell back off a bit in New York, but it still ended with a gain of 1.39%. Silver surged to as high as $30.295 before it also fell back off a bit, but it still ended with a gain of 3.36%.
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| Farmers Sue Jon Corzine Over Their Missing Money Posted: 10 Jan 2012 03:54 PM PST by John Hayward, humanevents.com:
ABC News reports the latest legal development for former Democrat senator, former Democrat governor, Obama Administration economic guru, and top Obama money man Jon Corzine: Montana farmers have filed a class action suit against former New Jersey governor Jon Corzine, charging that the failed financial firm run by Corzine stole millions from their accounts to pay off its spiraling debts, and that Corzine's "single-minded obsession" with making MF Global a big player on Wall Street led to the firm's collapse. MF Global's clients included 38,000 wheat farmers, cattle ranchers and others who "hedged" their crop prices by placing millions in MF Global accounts. Those accounts were supposed to be "segregated and secure," according to the federal suit, meaning MF Global could not draw on those funds. Read More @ humanevents.com/strong>
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| Posted: 10 Jan 2012 03:13 PM PST from DollarVigilante.com:
Everything that is currently going on in the US… government "stimulus", massive deficits, pending bankruptcy and the use of the crisis to institute more government controls and blame the "free market" has already happened twice in the last century in the US. The following cartoon with the outline of the grand plan was printed in the Chicago Tribune in 1934, just after the first bankruptcy of the US Government in 1933. Sound like a familiar plan? The US Government, after installing the communist-fashioned Federal Reserve system in 1913, and the subsequent war it enabled, World War I, just a few months later, had already bankrupted itself by 1933. That was when the US Government had to confiscate gold and then devalue the US dollar in order to survive. That was US bankruptcy #1. Read More @ DollarVigilante.com
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| Charting The Price Of Gold... All The Way Back To 1265 Posted: 10 Jan 2012 02:38 PM PST requests to show the price of gold going back as long as possible, with a gold price chart, indexed in 2010 British Pounds, all the way back to 1265.
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| The Homeric Choice: Scylla, Charybdis and Gold Posted: 10 Jan 2012 02:25 PM PST SPECIAL REPORT January, 2012 by Peter Grant Gold ended the first week of the new year up more than 3% from its 2011 closing price. The yellow metal is off to a robust start this week, once again trading in close proximity of the 200-day moving average (1635.86). A definitive close above this level is still awaited to bolster bullish sentiment. The high from 2-weeks ago at 1641.65 is an important level to watch as well. Renewed euro weakness has been a central theme recently, and despite the corresponding dollar strength, gold has displayed impressive resilience. A decent German bund auction last week failed to allay worries about upcoming periphery debt sales. A point that may have been driven home when the French saw their borrowing costs rise amid persistent rumors of an impending downgrade. Spain and Italy will attempt to sell bonds this week and global investors will be eying demand closely. They'll also be watchi...
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| The European Debt Crisis and Your Investments Posted: 10 Jan 2012 02:22 PM PST In 1999, 11 European countries surrendered their currencies for the euro and a shared monetary authority. Barely a decade later, the once-celebrated EU is in the midst of a credit crisis and its currency is facing collapse. Read More...
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| Charting The Price Of Gold... All The Way Back To 1265 Posted: 10 Jan 2012 12:41 PM PST We have often seen requests to show the price of gold going back as long as possible. Tonight we can oblige, with a gold price chart, indexed in 2010 British Pounds, going all the way back to 1265. To the surprise of many, the early 1980s gold price surge is not the only time in history when gold exploded as America's game with inflation was almost lost. It appears that based on the surge in gold back in the late 15th century, there was actually quite a serious need for Columbus to go forth and find a source of gold, because last we checked Ferdinand and Isabella did not have Bernanke's money printers back then. And yes, as Goldman says, there were no ETFs back in the 16th century to draw demand away from the real deal and into make believe exposure.
And more or less the same in (synthetic) USD terms:
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| Harvey Organ's The Daily Gold & Silver Report Posted: 10 Jan 2012 12:30 PM PST Gold advances/Ted Butler/Greece/Iran/USA now asks to raise debt ceiling officially
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| GATA board member Ed Steer interviewed by Dave Janda Posted: 10 Jan 2012 12:01 PM PST 8p ET Tuesday, January 10, 2012 Dear Friend of GATA and Gold (and Silver): Following up his interview with GATA Chairman Bill Murphy, radio talk show host Dave Janda of WAAM-AM1600 in Ann Arbor, Michigan, interviewed GATA Board of Directors member Ed Steer, editor of Ed Steer's Gold and Silver Daily letter, published by Casey Research. They talk about the likely devaluation of the U.S. dollar and other currencies, the Sprott Physical Silver Fund's likely issuance of shares to obtain more real metal in a tight market, and many other topics. You can listen to it at Janda's Internet site here: http://www.davejanda.com/audio/EdSteer010812.mp3 CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix Receives Inferred Gold Resource Estimate Company Press Release Golden Phoenix Minerals Inc. (OTC: GPXM) reports that on behalf of Golden Phoenix Panama S.A., the joint venture entity that owns and operates the Santa Rosa gold mine in Panama, it has received from SRK Consulting (U.S.) an initial resource estimate for Mina Santa Rosa. The Santa Rosa project is a volcanic-hosted epithermal gold-silver deposit previously operated as an open pit-heap leach operation. Production ceased in 1999 in part because of low gold prices. SRK Consulting reports an in-situ inferred resource at the former Santa Rosa and ADLM pits totaling 23.1 million metric tonnes at 0.90 grams/tonne gold, for a contained 669,000 ounces of gold at a 0.30 g/t gold cutoff. The resource also contains an average grade of 2.87 g/t silver for a contained 2.1 million ounces of silver. John Bolanos, Golden Phoenix's vice president of exploration, remarks: "In addition to SRK's inferred resource estimate of 669,000 contained ounces of For the company's full statement, including a table detailing the resources at Santa Rose, please visit: http://goldenphoenix.us/press-release/golden-phoenix-receives-initial-ni... 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 Be Part of a Chance to Discover Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries. -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600.
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| In the midst of the eurozone meltdown, a new crisis has gone unnoticed: a shaky derivatives market. Posted: 10 Jan 2012 11:50 AM PST FORTUNE -- Warren Buffett once famously described credit default swaps as "financial weapons of mass destruction."
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| Europe's Ticking Time Bomb: Credit Default Swaps Posted: 10 Jan 2012 11:34 AM PST In the midst of the eurozone meltdown, a new crisis has gone unnoticed: a shaky derivatives market. by Charles P. Wallace, CNN.com:
America's banks have rightly pointed out that they are only minimally exposed to European government debt. But they have been buying and selling default protection on those bonds, doing deals mainly with investors in the eurozone. Exactly how much is not known, because CDS are held off-balance-sheet. Some recently released European data, however, make a ballpark estimate possible. Exposure by six major American banks to CDS on Italian debt alone, for example, may be as high as $200 billion. Overall, U.S. banks may hold two-thirds of the total euro-debt CDS outstanding.
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| Gold Price rose $23.50 Smashing Down the Gates at $1,625 Reaching $1,639.65 Closing at $1,631 Posted: 10 Jan 2012 11:32 AM PST Gold Price Close Today : 1631.00 Change : 23.50 or 1.5% Silver Price Close Today : 2978.30 Change : 103.40 cents or 3.6% Gold Silver Ratio Today : 54.763 Change : -1.152 or -2.1% Silver Gold Ratio Today : 0.01826 Change : 0.000376 or 2.1% Platinum Price Close Today : 1462.20 Change : 44.20 or 3.1% Palladium Price Close Today : 634.70 Change : -32.55 or -4.9% S&P 500 : 1,292.08 Change : 11.38 or 0.9% Dow In GOLD$ : $157.95 Change : $ (1.40) or -0.9% Dow in GOLD oz : 7.641 Change : -0.068 or -0.9% Dow in SILVER oz : 418.44 Change : -12.62 or -2.9% Dow Industrial : 12,462.47 Change : 69.78 or 0.6% US Dollar Index : 80.89 Change : -0.162 or -0.2% As I was musing yesterday, that a GOLD PRICE up/SILVER PRICE down (or vice versa) close seems usually to lead to a higher day following, so it did. GOLD PRICE rose $23.50, smashing down the gates at $1,625 like driving a tractor trailer through a chain link fence. Closed Comex at $1,631. Stretched as high as $1,639.65, never reached lower than $1,615.40. SILVER PRICE rose a smashing 3.6%, 103.4 cents to 2978.3c. Overhead it reached into new territory above 3000c, as far as 3026.6c. Never bowed lower than 2908c. Little doubt left in my mind that gold will touch $1,680 before it backs off and silver will react 3100c to 3200c. Of course, silver needs to remain above 2980 and gold must stay above $1,625. They will, then we will see in the following correction what they are made of. Listen: don't y'all let all this talk with a mere day-to-day focus deceive you. It's just entertainment. The real show is playing out in the Primary Trend for silver and gold, UP, UP, UP for several more years in an unbeatable bull market that will give a wild ride to shake off as many riders as possible. Don't be among 'em -- HANG ON! Watch the horizon, not the road in front of your hood ornament. Amazing, human nature! Astounding how fads and rumors propagate. Take the stock market. You can literally watch prices ebb and flow with whatever shallow and meretricious opinion fad reigns for the nonce. Come January's end and they'll all be holding their breath over whether the Dow finishes January up or down, which allegedly predicts the rest of the year. Savages who believed a solar eclipse meant that a sky dragon was eating the sun were no less rational. Rationally, the outlook for stocks ought not vary from the economy's outlook, but O my! When humans in crowds are involved, rationality flits thru the window. In like fashion are rumors propagated, like the one I addressed days ago about the Bernancubus suddenly devaluing the dollar by 40%. Folks, the man did say he might devalue the dollar in his speech on 21 Nov 2002, "Deflation: Making Sure 'It' Doesn't Happen Here." He discusses all the measures he can undertake to inflate, and he mentions Roosevelt's sudden 40% devaluation, but apparently the rumor-spreader overlooked that, although The B-thing clearly intimates that devaluation is one policy tool. Go read it at http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm. But nothing here is new. Devaluation is ALWAYS the inevitable outcome of the Federal Reserve's existence, because it is an engine of inflation. It was spawned to inflate, and must inflate or die. Will it inflate? OF COURSE. So instead of looking at the plain historical record -- the US dollar down to 1.3 cents of its value in 1913, when the Fed took charge of managing the dollar -- rumor mongers fluff up everybody's dander with silly "sudden devaluation" stories and myths about gold confiscation. taking minds off the real action -- constant theft by inflation -- and leading them onto a red herring, thus handily keeping the victims in the dollar trap. A person more suspicious than I might think that this very rumor was actually created in a Nice Government Disinformation and Rumor Mill. I've told y'all before, and will keep telling you till you want to put cotton in your ears or in my mouth, there is less chance of the yankee government confiscating your gold than there is of your being abducted by flying-saucer riding aliens. This is not 1934. When somebody asked bank robber Willie Sutton why he robbed banks, he answered, "Because that's where the money is." Why did bank-robber Roosevelt confiscate gold in 1934? Because that's where the money was -- THEN, but not now. Today the large pool of wealth sitting on the shelf waiting to be stolen is -- IRAs, 401(k)s, and pension funds. Wherefore, fool that I am, I see little point in worrying about rumored, hypothetical, and six-sigma unlikely sudden confiscations when (1) you already know the Fed is CONSTANTLY devaluing the dollar, and (2) your retirement is where the yankee government can pick it up anytime they want. I'm not saying they WILL, only if they want to make a 1934-type forced loan, that's the window where they'll do the borrowing. Meanwhile, all the victims still keep their wealth in paper dollars. Beats me! I've burned up my lines without even mentioning today's market. Stocks eased up. Dow swung a leg over 12,400, up 69.78 to 12,462.47. Not terribly convincing. S&P500 rose 11.38 to 1,292.08. But listen -- I got this story straight from my barber's cousin who shine shoes at a Washington barber shop where Ben Bernanke's janitor gets his hair cut, and he told me the Big Ben thinks stocks will end January higher. Un-huh! US dollar fell a mite today -- 16.2 basis points, a chigger bite, no more -- and still only needs hold on at 79.50 to maintain its rally. Euro rose a gnat's eyebrow to 1.2775, ditto the yen to 130.17c/Y100 (Y76.82/$1). On 10 January 1429 the Order of the Golden Fleece was established in the Habsburg dominions. Today, membership is reserved for bankers and central bankers alone. On 10 January 1901 oil was discovered in Beaumont, Texas, setting off the Texas oil boom that hasn't stopped yet. 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: 10 Jan 2012 11:29 AM PST from TFMetalsReport.com:
Before we begin, a recap of today and a repost of the charts I included as an update to the earlier blog. To simply summarize, yes today was great. Both metals broke free of their recent downtrends and looked good doing it. However, keep in mind that today was a Tuesday and "Happy Tuesday" often results from The Cartel covering some shorts in an effort to "paint" the CoT survey that took place after the close this afternoon. Because of this, do not be surprised to see the metals give back some of today's gains tomorrow. Additionally, let's be sure to check the OI numbers from today when they are released tomorrow. If new money was driving today's gains, we will see a nice increase in OI. If today was primarily a Cartel short-covering event, the OI will be relatively flat. Regardless, the gains in price are real and both metals suddenly have a much improved technical picture. Let's see what the rest of the week brings. To really get me excited, silver needs to close above $30.50. Gold needs to first close above $1650. Then it needs to break the downtrend line from the highs of September. That line is currently near $1680. Read More @ TFMetalsReport.com
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| Hathaway - Short Squeeze in Gold to Crush Naked Shorts Posted: 10 Jan 2012 11:26 AM PST The bigger picture continues to be monetary debasement & that's the big driver of higher gold/ silver prices. It could get very ugly for shorts
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| In The First Few Days Of 2012, US Mint Sells More Silver Than In Most Months Of 2011 Posted: 10 Jan 2012 11:23 AM PST from ZeroHedge:
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| Gold "Opportunity Gap" Closing Posted: 10 Jan 2012 10:50 AM PST January 10, 2012 [LIST] [*]China drives up U.S. stocks to 5-month highs, puts a new shine on gold [*]Chart reveals our “opportunity gap” in gold closing (ominously)... but there’s still time to act... [*]Escaping the “safe haven”... Chuck Butler on Russia and Iran ditching the dollar... [*]An opportunity in commercial real estate?... the higher-education bubble visualized... Uncle Sam’s balance sheet hits home... Do low interest rates hollow out the birth rate... and more! [/LIST] You already know the world’s markets are screwy. Today we begin with even more proof: Nearly every “risk asset” under the sun rallied this morning on the assumption that China’s about to loosen the monetary spigots. Import growth in the Middle Kingdom during December clocked in at the slowest in two years, according to figures that came out overnight. Thus, “China is likely to ease monetary and fiscal policies in the...
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| Why MF Global Should Concern All Gold and Silver Mining Share Investors Posted: 10 Jan 2012 10:10 AM PST
A number which receives very little press on this issue is the number 30,000. More than 30,000 client accounts were demolished by MFG's trading losses. While that sounds like a lot (and it is), the number of individual investors impacted with losses is actually far greater than 30,000. The reason is many of those 30,000 individual accounts represented more than one single investor. Let me explain how that works. Let's say a retirement pension fund managing a total of $1B (on behalf of one million retirees) is looking for exposure to gold and silver. To obtain the exposure, the pension fund manager decides to allocate $100M (10% of the fund) to futures contracts. Now let's go even further to say that the pension fund was one of the unlucky institutions to have opened an account with MFG before the collapse. After the futures contracts are purchased in the accounts at MFG on behalf of the pension fund, MFG goes bankrupt and takes down the entire $100M account with it. Her Now that we have an understanding of how the loss of one single account can affect a million people or more—let's use our imaginations regarding stock brokerage houses. What very few people understand is that MFG wasn't just a clearing house for futures—they were a securities clearing house as well. This means that as of this moment, investors who purchase stocks are at just as much at risk of a brokerage counter party default, as those investing in now shunned futures contracts. What does this mean for mining share investors? This means our community of gold and silver mining share investors needs to quickly learn, adapt, and prepare for the possibility of another major bankruptcy occurring in a major western brokerage house. How do we prepare? There are a few ways. First, learn as much as you can about your broker dealer. Find out who they bank with, who the management is, where they're located and who owns the company. Additionally, try to determine the exact business model of the broker. Do they make money from commissions alone, or do they engage in proprietary trading? Second, review your customer account agreement. Many stock investors today have no idea they're shares may be lent out by their broker to short sellers, or even worse—some customer share accounts are discretely used for "re-hypothecation" by their broker. This means the broker posts the customer share accounts as collateral in which to borrow money to speculate with. Third—learn about alternative forms of share ownership. I recently wrote a white paper called, "BulletProof Shares – How to Protect Your Stock Investments From Broker Bankruptcy & Theft," which details all three share ownership methods available to investors today, two of which, your broker will not tell you about. The unfortunate fact in the investment industry today, is that most stock brokers will discourage you from removing your shares from the financial system—because they make much more money when your assets are held within their custody! The last and final method of protecting yourself from the collapse of a broker dealer, or a string of financial system defaults—is to simply remove your assets from the system altogether. Some individuals are using a strategy of physical gold and silver bullion purchases only to achieve this result, but as always, be very careful using bullion dealers without established reputations. In thinking defensively about our stock investments, I've heard many people use the argument of, "Well if my broker goes bankrupt, the SIPC will protect me." This is dangerous thinking. I recently spoke with a SIPC agent who informed me their agency only keeps around $1B in cash on hand at any given time–and that's just during good economic times. To put this into comparison—the losses of MFG exceeded $6B!! Had MFG specialized in securities, the SIPC's entire fund would have been tapped out, leaving thousands (maybe millions) of stock investors with permanent, non-recoverable losses. Those investors would lose their entire life savings and never invest in stocks again.
Many others have used this analogy, but I feel we are now leaving the eye of the financial hurricane and are about the see the real power of the other side of the storm. I advise all investors to think about physical investments with bullion dealers you can trust (such as GoldMoney.com), as well as conducting due diligence on your banks, brokerages, and learning about alternative forms of share ownership. What are your thoughts on this issue? Please let me know! To learn more about my published white paper on how to remove all counterparty risk from your stock investments please visit: www.BulletProofShares.com. Thanks,
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| Tocqueville's Hathaway expects 'terrific short squeeze' in gold Posted: 10 Jan 2012 09:12 AM PST 5:10p ET Tuesday, January 10, 2012 Dear Friend of GATA and Gold: Tocqueville Gold Fund manager John Hathaway today tells King World News that he's expecting a "terrific short squeeze" in gold and gold mining shares, as gold's fundamentals are strong and improving even as sentiment in the gold sector has entered "the dry-heave stage." An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/1/10_Ha... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Drills 384.9 Meters Grading 0.623 g/t PGM+Au, Company Press Release VANCOUVER, British Columbia -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) has announced the final drill results from 2011 drilling at the company's fully owned Wellgreen platinum group metals, nickel, and copper project in the Yukon Territory. Borehole WS11-192 intercepted 384.9 meters of 0.45 percent nickel equivalent starting from 9.45 meters depth. Included in this greater interval of continuous mineralization is a platinum group metals-rich zone with a combined platinum-palladium-gold grade of 1.358 grams per ton over 19.23 meters (nickel equivalent 0.74%). The final drilling results for 2011 have shown the Wellgreen Central-East and Central-West deposits to be one contiguous body, whereby there is good potential to broaden significantly the Central-West resource base, which currently contributes only about a quarter of the current 43-101 compliant resource at Wellgreen. Overall the drilling program met with good success in expanding the resource to the east and south. The long drill intercepts suggest the deposit remains very much open in those directions. For the complete drilling results and the full company statement, please visit: http://prophecyplat.com/news_2011_dec08_prophecy_platinum_wellgreen_dril... Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/conference-details/vancouver-resource-investme... California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf
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| The Nearest Thing to a Permanent Thing Posted: 10 Jan 2012 08:55 AM PST You can find a coin shop in nearly every town in the United States. The proprietor is unlike any you will find in any other store. He is unusually steeped in history, intensely aware of the larger context of the passing economic and political scene. This is because if it is a good shop, you will find the whole history of modern life on exhibit, and learn more from looking than you find in a multivolume history. There they are on display: coins from all lands. Why are they worth more than the coins in your pocket? Because they are old? That's part of it. There are some new coins here that are also just as valuable as the old ones. What is critical is that they are made of gold and silver. You can pick them up and tell the difference. They are heavy. Stack them and let them fall on each other and they make a different sound from the coins that usually rattle around in your pocket. It strikes everyone and anyone immediately. Somehow these coins are "real"; the coins we use today are not. But what does this really mean? And what does it imply? The value of the coins amounts to far more than their marked value. Even dimes before a certain date sell for 10 and 15 times face value. The larger coins can be quite expensive. What is real here is their substance, not the printing on the outside. This is the opposite of modern coins, the substance of which is completely irrelevant: All that matters is what is printed on the outside. So the use of the term "real" here parallels how we use this term in any other context. Reality TV is said to provide the unvarnished truth about what people really do. We say someone should "get real" if we suspect that his thought or behavior is a mask or a blindfold obscuring a more-obvious truth. So it is with coins. The new coins we use in transactions are not real. They are wearing a mask, a disguise, one put on by the state. More absurdly, the state tells us not to look at the reality, but rather to trust God that all is right with the money in the realm. The old coins, in contrast, are precisely what they say they are and, therefore, have nothing to hide. There are no invocations that require a leap of faith. The truth is found on the scale and is told in ounces. The gold ones are, of course, the ones you really want to hold. Their value reflects the metal content. Melt them, restamp them, make them into jewelry and they are still worth no less than the market value of the metal. And who decides what the values of these old coins are? The coins might bear the likeness of a politician. They might bear the name of the nation-state. But these pictures and slogans are merely interlopers on the real point. What you hold is valuable not because some legislature, Treasury Department or central bank says it is valuable. Its worth was and is dictated by the market, which is to say, the choices and values of human beings. No government can add to or take away this value except by physically manipulating the coin itself. Not only that. If you dig deep enough in the coin shop, you might run across coins that were not minted by governments at all, but by private manufacturers. In the early years of the Industrial Revolution, this was the way coins were made in Britain. Not by the Royal Mint, but by entrepreneurs no different from any other. George Selgin tells the whole story in his aptly named book, Good Money. It turns out that making money is a business like any other, not something that only governments do. In a free world, it would be done entirely by private enterprise. The same is true of exchanging money. Some of the world's first great fortunes were made this way, profiting from the buy/sell spreads in coinage markets. Today, the business is the same in some respects, and one can see the appeal of it all. Bless those who sustain it and believe in it. So long as this good money is in your hands, it is your independent store of wealth. There are no taxes due, no withdrawals required, no forms to fill out. It is the physical embodiment of independence. It gives you freedom. It secures your rights. And because this coin is valued not by the nation-state, it rises above it and extends beyond it. Its value is recognized the world over, and not because the U.N. has proclaimed it, but rather because it is something everyone on the planet agrees on. Geographic mobility is only part of it. Look at the dates on the older coins: 1910, 1872, 1830, 1810 and earlier and earlier. They are still beautiful because they are durable. Their value is not diminished over time, as with just about everything else we know about; rather, it increases over time. And by its very nature, gold protects your investment from the depredations of modern life. How they inspire the imagination! What was the world like when such coins served as money? The economy wasn't managed by some central authority. It managed itself from within, by the buying and selling decisions of economic agents themselves. The coins were selected by the market to serve as the facilitator of exchange, the things by which we were permitted to rise above the limits of barter. They made possible calculation between goods and services that were as widely diverse as the whole of the human project, and reveal what was profitable and what was not. So these coins made it possible to organize the world's resources into lines of production that served society in the most-efficient way. And how did the politicians figure into this mix? When they got their hands on these coins, they could do terrible things. But it was rather difficult for them to get them. They had to demand that the citizens fork over the coins or else, which is to say, they had to tax people. You have to have a pretty good reason to do this. Or the lie you tell has to be pretty darn compelling. You can only tell fibs so many times before people catch on. If this is the only money that circulates, the aspiring leviathan state faces a serious limit on its capacity to expand — a limit imposed by physical reality and the unwillingness of most people to give up something for nothing. This is why every state is so anxious to see money substitutes circulate widely, preferably in the form of paper that can be made at will. If that same state can get banks to cooperate in creating more paper than can be redeemed by gold and silver coins, it can begin to habituate the population to the idea of a "fiat" currency, that is, money invented out of whole cloth. Even better for the state is a system that completely separates "paper money" from its historical roots in good money. Then there are no limits at all to how much money it can make to fund itself and pay its friends, even if that means that money in general becomes ever less valuable. And here we have the short history of how money came to be destroyed and how the modern world came to host the ghastly leviathans that dominate it. Here is the basis of destructive and unnecessary wars that last and last, the character-shredding welfare state and the swarms of bureaucrats who run our lives in every respect. It all comes down to the way money was destroyed. You can tell from looking at the dates on coins that all of this happened surprisingly recently. The process began in the early 20th century with the cartelization of the banking system so that banks could loan money out of deposits they promised to pay on demand. The government's own debts would be paid no matter what. This helped with the war — taxes don't cut it when it comes to funding global war — so the financial system was encouraged to set aside its usual concerns over stability, since it was now guaranteed not to fail. The process continued with the attack on gold during the New Deal under the influence of people like John Maynard Keynes, who believed that paper money would usher in a new utopia of a government-managed economy. So desperate was FDR to have people stop trading good money that he demanded it all be turned in; he said this was necessary to stop the Depression. Then the paper money revolution was furthered by people like Milton Friedman, who believed that a pure paper money would somehow bring about a stable price level — through a formula that may have looked good on paper but failed to account for the realities of politics. In the end, we ended up on the other side of the great divide between freedom and tyranny, all symbolized by the contrast between the coins of the past and the coins of the present. It is reality versus fiat, independence versus dependence, value that lasts versus value that is the whim of the transitory political class. You discover all of this when you walk into the coin shop. Have a conversation with the proprietor, who tends to be of a type: perhaps a bit crusty, but highly knowledgeable and independent-minded. At his office, he lives amidst this history. He is surrounded by the truth about money that most people never discover. He is daily faced with the beauty of what once was, and perhaps, too, he imagines the possibility that it could be again. He is not usually the despairing type, either. He sees the difference between what is permanent and what is transitory. If you take the time, you can learn from him. If you trade with him, you can enter into his world of knowledge and partake in the ancient truth about money, politics and civilization. Owning these coins helps grant some sense of independence to you, too. You will possess a store of wealth not subject to wild bubbles, state-manufactured inflations and political whims. It is a kind of privatized secession. Is it any wonder that people who enter this world think differently from others? Their blinders are off. They see what is real and true. They no longer believe in the great modern lie that the state is our wise master, in whom we should trust our very lives. The owner of gold and silver coins is just a bit less attached to the state than others. And should a time of great crisis come and you look among the survivors, you can be pretty sure that pre-eminent among them will be those who love the coin shop as much as I do. Regards, Jeffrey Tucker, Joel's Note: So what about the price of the metal in those coins then, eh? Up…down…neither? There has been much ado about various predictions for the price of gold in 2012 that have recently appeared in these pages. "Flat for the year," reckoned Bill just last week. "A buy, perhaps now more than every," countered Eric Fry. "Gold stocks will have a great year," added Chris Mayer, tossing his stock-picker's hat into the ring. What to think, Fellow Reckoner? Well, we've gathered some of the brightest minds in the business to discuss just that in a special webinar presentation to be aired at 11am this Thursday. In short, our handful of experts reckon they've discovered a price anomaly that could deliver investors hefty profits even if the price of gold goes nowhere for the year. But, judging by a few charts we saw them forwarding around this morning, the opportunity to cash in on this anomaly may be closing even faster than they first expected. If you'd like to sit in on the webinar (it's entirely free), please let us know here. And do so quickly…even virtual rooms get crowded. A version of Jeffrey Tucker's essay, above, appears in his excellent book, Bourbon for Breakfast: Living Outside the Statist Quo. The Nearest Thing to a Permanent Thing 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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| 2012-The Junior Miners Rising Up–Interview with Jeb Handwerger–01-10-12 Posted: 10 Jan 2012 08:51 AM PST We're back on with Jeb Handwerger to discuss "The January effect," and how to pick the best mining stocks. According to Jeb, gold and silver miners will rise again in 2012, and the time honored trope regarding the month of January will reign true, as the first week of the New Year shows these stocks opening on a bullish note. When asked about the best gain for 2012, Jeb says investors must look at undervalued junior mining natural resource assets–he recommends companies with strong financial positions that are progressing toward the production phase of mine development. As you're all aware, the Euro has been breaking into new record low levels. While many are concerned, Jeb states that there is a Golden opportunity for mining stocks emerging out of the Eurozone crisis. While many people are concerned about going into the dollar with long term treasuries, the major mining companies are looking to transfer their growing cash positions into undervalued European natural resource assets. As the Euro sinks to new lows, European capital is flowing into undervalued miners because their costs are going down, therefore driving their margins up. As precious metals become the true base for currency, mining companies will be called upon to produce more. Demand isn't subsiding; in fact, we're in a bull market regarding gold and silver and will continue to until the trend has violated. Although gold finished higher for the last 11 years, Jeb really likes silver for out preforming gold in 2012. Regardless, it looks like this is going to be an up-year for gold and silver mining stocks. Stand strong–this is not a time to sell for pennies on the dollar! Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.
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One of the downsides of having government education camps (the school system) "educate" most of us slaves is that most of us have no clue what occured prior to our own lifetimes. And what we think we know is incorrect or never happened.
As you know, I like to poke fun sometimes at the chartists and the elliotts for relying so heavily upon their squiggly lines that they fail to see the forest from the trees. At the risk of seeming hypocritical, I thought I'd show you some charts that include those squiggly lines this evening as I continue my search for tradable bottoms.
In the first few days of 2012, the US mint has already sold 4.3 million ounces in silver coins. This is more than in all individual months of 2011 except for January and September, when the mint sold 6.4 million and 4.5 million ounces. Is the retail love affair with physical silver coming back with a vengeance?
Over the past few months the still-developing MF Global collapse has yet to be fully grasped and understood by either the mainstream media or stock investors. While most believe MFG impacted only a small segment of sophisticated futures traders and hedgers, the pool of afflicted parties is far deeper than most comprehend.
e is where it gets interesting—clearly the loss of $100M results in a full 100% loss of the account and a 10% total loss to the one million retirees—however, the news data circulated in the media discusses this institutional account is though it were merely "1" among "30,000" investors who suffered losses. Therefore, it is very difficult to surmise just how many total individual investors were impacted by the collapse. There may have been thousands of accounts at MFG which individually represented thousands or millions of investors.
As a second point to relying on the SIPC—this dilemma bears similarity to Hurricane Katrina or any other natural disaster. The experts always say, "The levee's will hold" right up until the levee's break. What the experts say AFTER the levee's break is, "Nobody could have seen it coming." Well I see it coming, and I'm telling you about it in advance! To further add to this point—in the event a major hurricane hits your area, would you choose NOT to buy emergency supplies with the expectation of local rescue teams delivering fresh food and water when your cabinets run low? Would you take that chance and rely on overburdened and underpaid strangers to save you? Of course not! | 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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