Gold World News Flash |
- India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees
- Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 2% and 8% on the Week
- By the Numbers for the Week Ending January 20
- U.S. Dollar Collapse 2012
- Explaining Today's Silver Surge
- Precious Metals Stocks: Diversify, Seriously
- Mike Maloney on Credit-Based Money, Feudalism, and Financial Enslavement
- Gold Confiscation, a Reality? Part III
- Is Sprott Making a Dent into Silver Prices?
- Ben Davies - Funds Will Pile into Gold after Missing the Rally
- The Global Elite Are Hiding 18 Trillion Dollars In Offshore Banks
- Explaining Today's Silver Surge
- The Gold Price Utterly Blasted my Expectations Today, Closing Up 2 Percent for the Week at $1,663.70
- Will Gold Continue its Bull Run ?
- Gold Matches USD Weakness As Silver Jumps
- One Of 2011's Best Performing Hedge Funds Sees Gold At $2,500 Shortly
- Dollar Bull Trend Definitely Over and How This Might Impact Equities
- Gary North: Auditing the Fed's gold
- Gold will head higher to the $2,500 range driven by consequential USD weakness once the EU crisis dissipates and the US steps into the limelight
- The [Max Keiser's] information is so powerful they wish to keep it secret
- TF Metals Report: The Significance of 1665 (important update)
- Ben Davies forecasts gold and silver for King World News
- Hecla Mining Tanks After Lucky Friday Mine Closure Cuts 2012 Silver Production Estimate by 1.5Moz
- Gold Daily and Silver Weekly Charts
- One Of 2011's Best Performing Hedge Funds Sees Gold At $2,500 Shortly
- SilverSeek.com 2012 Virtual Silver Investment Conference
- Inflation: The Only Tool Left
- The Contrarian View of Argentina
- James Dines - This Will be a Dangerous Collapse & Endgame
- COT Gold, Silver and US Dollar Index Report - January 20, 2012
| India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees Posted: 20 Jan 2012 04:07 PM PST Two weeks ago we wrote a post that should have made it all too clear that while the US and Europe continue to pretend that all is well, and they are, somehow, solvent, Asia has been smelling the coffee. To wit: "For anyone wondering how the abandonment of the dollar reserve status would look like we have a Hollow Men reference: not with a bang, but a whimper... Or in this case a whole series of bilateral agreements that quietly seeks to remove the US currency as an intermediate. Such as these: "World's Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade", "China, Russia Drop Dollar In Bilateral Trade", "China And Iran To Bypass Dollar, Plan Oil Barter System", "India and Japan sign new $15bn currency swap agreement", and now this: "Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says."" Today we add the latest country to join the Asian dollar exclusion zone: "India and Iran have agreed to settle some of their $12 billion annual oil trade in rupees, a government source said on Friday, resorting to the restricted currency after more than a year of payment problems in the face of fresh, tougher U.S. sanctions." To summarize: Japan, China, Russia, India and Iran: the countries which together account for the bulk of the world's productivity and combined are among the biggest explorers and producers of energy. And now they all have partial bilateral arrangements, and all of which will very likely expand their bilateral arrangements to multilateral, courtesy of Obama's foreign relations stance which by pushing the countries into a corner has forced them to find alternative, USD-exclusive, arrangements. But yes, aside from all of the above, the dollar still is the reserve currency... if only in which to make calculations of how many imaginary money one pays in exchange for imaginary 'developed world' collateral. On India's induction into the dollar unluck club, from Reuters.
Who's this India country anyway?
And, oh yes, we forgot Turkey -the (lately very pissed off) gateway to Europe.
When the dollar fails, and currency are devalued, barter begins:
Ironically, and as has been stated here many times before, by enacting the proposed sanctions and embargo, the US, but mostly Europe is doing nothing but shooting itself in the foot, as it opens up a brand new pathway of not only outright defiance, and thus political brownie points domestically, of the US, but it will allow it to buy even more crude, at cheaper prices, while in the process it is forced to build closer monetary relations with its neighboring countries, relations that rely less and less on the world's increasingly less relevant reserve currency.
Necessity may be the mother of all dollar-exclusive invention, but Obama is surely the father of necessity.
|
| Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 2% and 8% on the Week Posted: 20 Jan 2012 04:00 PM PST Gold fell to $1644.48 in London, but it then rallied to as high as $1666.70 in New York and ended with a gain of 0.49%. Silver surged to as high as $32.11 and ended with a gain of 5.04%.
|
| By the Numbers for the Week Ending January 20 Posted: 20 Jan 2012 03:44 PM PST HOUSTON -- Just below is this week's closing table followed by the CFTC disaggregated commitments of traders (DCOT) recap table for the week ending January 20, 2012.
Vultures, (Got Gold Report Subscribers) please note that updates to our linked technical charts, including our comments about the COT reports and the week's technical changes, should be completed by the usual time on Sunday evening (by 18:00 ET). As a reminder, the linked charts for gold, silver, mining shares indexes and important ratios are located in the subscriber pages. In addition Vultures have access anytime to all 35 of our Vulture Bargain (VB) and Vulture Bargain Candidates of Interest (VBCI) tracking charts – the small resource-related companies that we attempt to game here at Got Gold Report. Continue to look for new commentary often as a number of our "Faves" have shown significant firming since the beginning of the year.
Gold and Silver Disaggregated COT Report (DCOT) In the DCOT table below a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting "longer" and red figures are traders getting less long or shorter. All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.
*** We will have more about the COT in the linked technical charts for Vultures by Sunday evening, including a curious increase in the number of spread trades put on for gold by the Swap Dealers, which accounts for nearly all of the increase in the open interest.***
|
| Posted: 20 Jan 2012 03:32 PM PST  Devolution of the USD 2012? - As the first public article for me just before 2010, it seems appropriate for me to comment on one of the biggest stories we will be all facing – that is an end game of events leading to the end of the USD. The implications for the world are no less than Armageddon – like. I mean it. Before we get into some details, I have been working on forecasts for 2010, and my study of the USD situation and how much time it has left. I first came to the conclusion that it was roughly (and I am getting close here on timing, I'm sure of this) two years from 2010. Actually, the calculation is two more years of relative USD functionality before the world realizes in about a shocking week's time that the USD is just about to really go belly up. It's not 5 years out anymore in my calculations, we have roughly two more years left. Read more..... 
This posting includes an audio/video/photo media file: Download Now |
| Explaining Today's Silver Surge Posted: 20 Jan 2012 03:02 PM PST As of the globex close, March Silver was up an astonishing 5.4% ($1.66) on the day, crushing big brother Gold (up .76% on the day).
|
| Precious Metals Stocks: Diversify, Seriously Posted: 20 Jan 2012 02:33 PM PST Gold and silver mining stocks will be the dot-coms of the second half of this decade. Yet most of the people who bet on them will lose money because they ignore the first rule of speculative sectors, which is that no matter how well ... Read More...
|
| Mike Maloney on Credit-Based Money, Feudalism, and Financial Enslavement Posted: 20 Jan 2012 02:13 PM PST from CapitalAccount: As the US heads into the presidential primary in south carolina, the most recent republican debate featured Newt Gingrich defending his moral values — his marriage – , Mitt Romney defending his tax returns, and Rick Santorum defending his sweater vests, is there anyone is is actually making real sense in terms of dollars and cents? Is the lack of concentration and debate on the money issue, and the issue of the federal reserve system, of central banking and of fiat money helping to turn cash into trash? We'll talk to Mike Maloney, founder of www.goldsilver.com about the path the US is now on, and whether or not that path is sustainable. We will also discuss the latest republican internecine conflict over capitalism and whether the debate is giving capitalism a bad name. After all, the leading contender is a millionaire with a 15 percent tax rate. Is this the kind of capitalism that is causing people to equate capitalism with inequality? What about the people fighting for real capitalism, the kind the really rewards hard work and punishes failure? The kind that doesn't subsidize the rich and big business? We will ask Mike Maloney, author of Rich Dad's Advisors, a guide to investing in gold and silver, about this as well, and we will also speak with him about the precious metals space and how to protect yourself from currency debasement. And also, we talk about megaupload. The FBI shut it down yesterday. It is one of the world's largest file sharing sites, alleging copyright violations. The US irked with other jurisdictions to make arrests and oversee raids around the glob. 150 million people used this site to upload files, and now megauploads lawyers say the site was shut down with no notice and no opportunity to challenge it. We asked what you thought during our viewer feedback.
|
| Gold Confiscation, a Reality? Part III Posted: 20 Jan 2012 02:11 PM PST by Julian D. W. Phillips, GoldSeek.com:
The situation is heading for even stormier waters on both sides of the Atlantic. But true to history, the gold market remained liquid throughout the financial crisis. This was the case even at the height of liquidity strains in other markets –a reflection of the size, low market concentration, and flight to quality tendencies of gold. As we said earlier: the Swedish Riksbank used its gold reserves at the height of the crisis to finance temporary liquidity assistance.
|
| Is Sprott Making a Dent into Silver Prices? Posted: 20 Jan 2012 12:27 PM PST UBS analyst Edel Tully, finally caught wind yesterday that Sprott was making a huge purchase which "may" have an impact on silver prices.
|
| Ben Davies - Funds Will Pile into Gold after Missing the Rally Posted: 20 Jan 2012 11:54 AM PST "There are flip sides of the coin and one side is credit, deleveraging or deflation as I call it." On the other side we've got monetary inflation,"
|
| The Global Elite Are Hiding 18 Trillion Dollars In Offshore Banks Posted: 20 Jan 2012 11:50 AM PST from The Economic Collapse Blog:
In recent days, the fact that Mitt Romney has millions of dollars parked down in the Cayman Islands has made headlines all over the world. But when it comes to offshore banking, what Mitt Romney is doing is small potatoes. The truth is that the global elite are hiding an almost unbelievable amount of money in offshore banks. According to shocking research done by the IMF, the global elite are holding a total of 18 trillion dollars in offshore banks. And that figure does not even count any money being held in Switzerland. That is a staggering amount of money. Keep in mind that U.S. GDP in 2010 was only 14.58 trillion dollars. So why do the global elite go to such trouble to hide their money in offshore banks? Well, there are two main reasons. One is privacy and the other is low taxation. Privacy is a big issue for those that are involved in illegal enterprises such as drug running, but the biggest reason why people move money into offshore banks is in order to avoid taxes. Some set up bank accounts in foreign nations because they want to legally minimize their taxes and others set up bank accounts in foreign nations because they want to illegally avoid taxes. You would be absolutely amazed at what some large corporations and wealthy individuals do to get out of paying taxes. Unfortunately, the vast majority of the rest of us don't have the resources or the knowledge to play these games, so we get taxed into oblivion. So why do they call it "offshore banking"? Read More @ TheEconomicCollapseBlog.com
|
| Explaining Today's Silver Surge Posted: 20 Jan 2012 11:34 AM PST A few days ago, Eric Sprott decided to take advantage of the record premium over NAV of his physical silver fund PSLV (or for some other arbitrary reason) and to issue a $300MM follow-on offering, whose proceeds would be used to buy up silver to add to PSLV's existing physical holdings. Naturally, as soon as the news broke, the premium dropped to about 10%, making PSLV holders unhappy. This is not the first time that Sprott has done this: as a reminder after his April 2011 follow on offering in PHYS, we were fully expecting a comparable physical sequestration to occur via PSLV, to wit: "It appears to have already had an impact on silver, which jumped by $20 cents to another 31 year high on the news, as the market now likely expects a follow on offering in PSLV as well imminently." About 10 months later, it finally happened. As was to be expected, any short-term gains focused investors obviously became angry that by collapsing the premium, which we speculated was shortage driven, they have suffered a hit to their P&L (expressed in dollars of course, which as a reminder to the holders, should be largely irrelevant, especially to those who believe a PM-based barter system is imminent). Yet they forget the flip side to the equation: the money taken out of the premium, would be promptly used to take silver out of (hyper hypothecated) circulation, in other words, in the closed system, the drop in Premium would translate in a rising price in the underlying. Which according to UBS is precisely what has happened, and why silver moved as much as it did. Quoting from FMX Connect: "Today's incredible move was the culmination of a comment made by UBS analyst Edel Tully. He stated that hedge fund manager Eric Sprott may be in the market buying spot futures in a private letter to his clients." And even as the premium dropped, the price of spot silver increased by over 5%, on the speculation of silver being taken out of the market and delivered to Sprott. So to summarize: speculation that $300 million in physical silver may be taken out of circulation raises the price of the underlying by 5%. Does that mean that a $3 billion follow on would result in a 50% rise in spot; $30 billion in 500%, and so on? Something tells us the trade off of the premium collapsing to zero in exchange for $100+ silver would be equitable... And as we noted previously, the primary reason for the surge in in the NAV could be many things, but shortage of real physical silver is certainly the most likely one (and good luck trying to buy, transport, store, and insure $10MM or more in physical, without relying on some true physical representation such as PSLV). And if UBS' speculation is true, this has just been confirmed. Most importantly, it once again raises the spectre that anyone wishing to corner the silver market, can do so quite easily even in the aftermath of last year's parabolic move. Full note from FMX Connect: Market Recap: As of the globex close, March Silver was up an astonishing 5.4% ($1.66) on the day, crushing big brother Gold (up .76% on the day). Silver was up an impressive 11 hours in a row, starting from 7 AM. Please enjoy our special commentary below.
Over the last week, and particularly today, silver saw heavy buying. FMX | Connect Managing Partner Vince Lanci discussed the potential for a breakout higher two days ago in an interview hosted by Kitco News (WATCH IT HERE). Of particular note, when asked his opinion on Silver was "If you're bullish on Gold you should buy Silver." Today's incredible move was the culmination of a comment made by UBS analyst Edel Tully. He stated that hedge fund manager Eric Sprott may be in the market buying spot futures in a private letter to his clients. With declining open interest in a rallying market, it didn't seem likely to us, but over the last two days we noted open interest has flat-lined and started to turn upward, a bullish indicator. Intraday moves did not care about how the Euro did or how gold traded. When Silver crossed the 50-day moving average at 30.90 it left Gold in the dust. While thousands of Call butterflies traded in gold over the last few days,they ended the week essentially unchanged.. But the hundreds of calls purchased over the last few days in Silver proved to be big winners for longs with the May 40 Strike garnering the most interest. Finally, note the commitment of traders shows an increase in commercial shorts (an increase of 1,320). This means the bullion dealers have not thrown in the towel and this could just be a market fading away from an impulsive buyer. We'll wait and see. Directional Commentary: Options: Gold volatility was lower going into the weekend and ahead of February options expiration next week. Skew was selectively higher. Options activity remains mostly neutral and is unlikely to manifest strong biases while futures trading is orderly. Conclusion: Neutral Technical: Gold finished almost $10 higher on the day but still below the highly-cited 50-day moving average at 1673.60. We see this moving average as a strong impediment to gold's near-term prospects. As a contrasting indicator, open interest has started to creep higher in Jnauary. This (and other factors) leads us to believe that Gold may be due for a near-term correction, but maintain it upward trajectory in the intermediate term. Gold's objective to the upside is a settlement above 1674 and its objective to the downside is a return to 1600. Conclusion: Neutral
Active Options G 1675 C, G 1700 C ATM Volatility Curve: As of 1:30 P.M.
Volatility Smile: ***From NYMEX Settlement
End of Day Straddles As of 1:30 P.M.
|
| The Gold Price Utterly Blasted my Expectations Today, Closing Up 2 Percent for the Week at $1,663.70 Posted: 20 Jan 2012 11:21 AM PST Gold Price Close Today : 1,663.70 Gold Price Close 13-Jan : 1,630.60 Change : 33.10 or 2.0% Silver Price Close Today : 3164.7 Silver Price Close 13-Jan : 2949.3 Change : 215.40 or 7.3% Gold Silver Ratio Today : 52.571 Gold Silver Ratio 13-Jan : 55.288 Change : -2.72 or -4.9% Silver Gold Ratio : 0.01902 Silver Gold Ratio 13-Jan : 0.01809 Change : 0.00093 or 5.2% Dow in Gold Dollars : $ 158.05 Dow in Gold Dollars 13-Jan : $ 157.48 Change : $ 0.57 or 0.4% Dow in Gold Ounces : 7.646 Dow in Gold Ounces 13-Jan : 7.618 Change : 0.03 or 0.4% Dow in Silver Ounces : 401.95 Dow in Silver Ounces 13-Jan : 421.19 Change : -19.24 or -4.6% Dow Industrial : 12,720.48 Dow Industrial 13-Jan : 12,422.21 Change : 298.27 or 2.4% S&P 500 : 1,315.38 S&P 500 13-Jan : 1,289.10 Change : 26.28 or 2.0% US Dollar Index : 80.155 US Dollar Index 13-Jan : 81.531 Change : -1.376 or -1.7% Platinum Price Close Today : 1,530.50 Platinum Price Close 13-Jan : 1,485.80 Change : 44.70 or 3.0% Palladium Price Close Today : 673.85 Palladium Price Close 13-Jan : 636.70 Change : 37.15 or 5.8% The GOLD PRICE and SILVER PRICE utterly blasted my expectations today, and crushed underfoot any suspicion of a key reversal from yesterday. Yet here, too, lurk two different stories, subtle, but not quite agreeing. Let's take the SILVER PRICE first. It vaulted 116.5c (3.8%) today to close Comex at 3164.7c. It brushed that 3060c resistance aside like the Terminator flinging cops right and left, and climbed straight up. Never sank lower than 3029c today, and at its apogee reached 3191c. Notice, too, that it closed near the top of that range. Internally more was going on than just that. SILVER jumped over the hurdle of its 50 DMA (3103c) and o'erleapt and internal resistance line. Let's just say silver's shirt is full of starch. Gives me a headache to think about it, looking at the weekly chart: have I missed the low in silver? Wait, wait, there's also such a thing as a false breakout, and toward the end of metals' rallies silver always tends to outrun gold. Either way, Silver's next stubborn resistance hangs in the sky overhead at 3400c. It could make that leap next week. However, if Monday comes a cropper and silver loses 200c or so, you'll know it was a false breakout. Otherwise, buy it at the market. But listen as the GOLD PRICE speaks out of both sides of its mouth. It closed today up $9.60, higher than yesterday, at $1,663.7, new high close for the move, but did not today post a new intraday high. High reached only $1,666. Why didn't gold punch through $1,670 when silver was so manic? I don't know. Maybe it means nothing, maybe it only means that resistance there is very strong and gold will play catch-up next week, maybe the NGM take offense and react when gold reaches $1,670. But look here: if gold pierces that $1,680 next week, and then works through $1,705, stop waiting and buy. The bottom has passed, a new rally has started. Dear friends, listen and ponder: the GOLD and SILVER bull market is yet young. The public has not yet climbed aboard, and only a few investment professionals. What we have seen so far is pasty, bland cottage cheese compared to what is coming. Don't be caught standing around trying to make your mind up, only to watch silver and gold run away. Within the markets are planted automatic circuit breakers, set to explode Humility Bombs whenever you begin to believe that you have things figured out. I stepped on those mines today. What a week! SILVER gained -- look! --- 7.3%, while GOLD moved up only 2%. Dow gained more than gold, 2.4%, platinum augmented 3% (a word for you engineers out there), and palladium added 5.8%. Dollar index dropped 1.7%, and probably broke its rally's back. I love kids, but mine were always easy to catch whenever they were doing something wrong. If I got one alone and asked him what he had been doing, he said one thing. When another said something else, I knew I wasn't getting the story whole. It's the same way with markets. When markets that SHOULD confirm don't, some monkey business is afoot behind the scenes. So today I ask myself, how could the Dow rise 96.5 points (0.76%) while the broader S&P500 rose only 0.88 (0.07%)? And when the Dow rose 3/4%, why did the Nasdaq and Nasdaq-100 DROP? Somebody's story doesn't match here, and when that happens with markets, the larceny of Nice Government Men pops instantly to mind. I don't want to become one of those imagination-challenged boors who blames everything on government intervention, but that doesn't mean they don't intervene. And we KNOW they have a special group, the President's Working Group on Markets, set up in the Reagan reign to manipulate the stock market. I suspect they treat the Dow, the most widely watched stock index, as a kind of Potemkin village for the economy, a number they try to keep perky so we mushrooms will feel good and not panic. Anyhow, the Dow (if not the S&P500 or Nasdaq), has penetrated overhead resistance. If the move is real, then stocks ought to advance smartly, not dragging feet. We'll see. None of this, lest you conclude otherwise, changes my long term view of stocks, which are locked in a bear market (primary downtrend). If it's a rally, this, too, shall pass, and more diving shall follow. Dow today ended at 12,720.48, up 96.50 or 0.76%. S&P 500 closed 1,315.38, up 0.88 (0.07%). I bet y'all wonder why I waste good electrons talking about the scrofulous US dollar index and scabby euro and scurvy yen. Easy: they are the chief competitors to silver and gold. Their course offers guidance where the metals are headed, and chronicles the metals' ongoing war of annihilation against all the phony fiat currencies in the world. Dollar ended the day down only 6.1 basis points (0.08%) at 80.155, thus capping a week of disaster. Dollar index smashed through its uptrend line today. That does not guarantee twill proceed lower, as it did the same for several days early this month and again in December, but whenever a market breaks a trend line or resistance, the presumption states it will continue in that direction. Anyway, think about the backdrop. The world's states are engaged in a very polite war of competitive devaluation, trying to build their own economies at their neighbor's expense. Everyone smiles and bows and says they're working together, but back in the office they are figuring out how to lower their currency's value. Truth is, neither the Bernancubus nor the White House Toad want an appreciating dollar. Worse, they've had a fight on their hands as scared money poured out of the euro all summer, headed for refuge in US treasuries and driving up the dollar. For what technical analysis is worth under these manipulated circumstances, today the dollar index fell through both its uptrend line AND the 20 day moving average (80.51). That targets a fall at least to the 50 DMA (79.39), although some support lingers around 79.70 - 79.85. Euro today closed lower as traders took profits out of their week, 1.2931, down 0.23%. Yen changed nothing, up 0.11% at 129.83c/Y100 (Y77.03/US$1). Also, I have learned that altogether y'all know almost everything in the world, so I have a question. Anybody know where I can find a slightly used 10 - 20 kilowatt PROPANE generator, a good brand like Kohler? Drop me an email if you do, please. Again I must confess, I just don't get it. I heard a lady from South Carolina on National Proletarian Radio (voice of Socialism Worldwide). They are voting in the meaningless Republican primary for president this weekend, you know, the one with the Invisible Candidate (R*n P**l). This lady lives in a county with 12% unemployed, and she said they needed to elect somebody who could help them. I gasped for air. Doesn't she understand that the government is the REASON we suffer economic turmoil and instability? Rotten money? With all due respect, when did anybody from any government ever help anybody? Of the three greatest lies in the world, the first on the list is, "Hi! I'm from the government, and I'm here to help you." All government money comes with a sock in the jaw. All government help comes with ropes, chains, and shackles. I don't get it. Why can I see this, and somebody from South Carolina (of all places!) not see it? When are folks going to wake up grasp that the government cavalry is NOT coming, and you don't want 'em to? If anybody is going to help us, it will have to be US, and we have to start by re-building our own local economies, working to restore our neighbor's prosperity as well as our own, building on a sound foundation of clean local food grown by local people. That's just for starters. I just don't get it. We're standing on acres of diamonds, and people still want to call in the government to screw everything up even more than they already have. Y'all enjoy your weekend! 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. 
|
| Will Gold Continue its Bull Run ? Posted: 20 Jan 2012 10:18 AM PST "... it's been interesting. if you look at... [[ This is a content summary only. Visit my website http://goldbasics.blogspot.com for full Content ]] 
This posting includes an audio/video/photo media file: Download Now |
| Gold Matches USD Weakness As Silver Jumps Posted: 20 Jan 2012 09:49 AM PST The relatively calm in equity, credit, & FX markets was not at all evident, the commodity markets where Silver jumped dramatically over 8% on the week...
|
| One Of 2011's Best Performing Hedge Funds Sees Gold At $2,500 Shortly Posted: 20 Jan 2012 09:33 AM PST This debasement in currencies lends well for gold to increase in importance as a store of wealth.
|
| Dollar Bull Trend Definitely Over and How This Might Impact Equities Posted: 20 Jan 2012 09:26 AM PST Last week it was "likely" over. This week, I am going to say that the bull trend in the Dollar is "definitely" over. I am basing this observation on the fact that we are starting to see a clustering of negative divergence price bars. This doesn't necessarily mean a top and a reversal, but it most definitely means a significant slowing in price momentum. Figure 1. Dollar Index/ weekly
Ok, this is all well and good, but what could this mean for equities? Great question. The Dollar model turned bullish on September 30 and since that time the SP500 has gained about 16%. If you would have asked me how stocks were going to perform in the face of a rising Dollar, I would have said very poorly as the pattern over the past decade has been strong Dollar and weak equities. This did not play out this time as the both the Dollar and US equities benefited from European weakness. Money flowed to our shores because we were the safe haven of choice. At least this is what investors want to believe. All of a sudden a strong Dollar is good for US equities and a sign that capital is flowing to our shores. So what will happen if we get a weaker Dollar? At first blush, I would think that this would be equity positive, but if we are in a new dynamic of money flowing to the US because we are the safe haven, then we should see lower equity prices as the Dollar drifts lower. And in some respect, this may actually make sense especially since the equity markets are at the upper end of their very long term trading ranges. A weaker Dollar along with weaker equity prices may be the new dynamic. Once again, I would defer to the price action as this is the only reliable metric in a world of distorted markets. The breakouts that are occurring - like in the PowerShares QQQ Trust Series (symbol: QQQ) -- need to hold above support levels. In summary, the bullish trend in the Dollar is over, and we need to monitor how this might effect equities moving forward. Just as investors get comfortable with one thing, the market has a way of serving up a curve ball. TheTechnicalTake offers a FREE e-newsletter:
|
| Gary North: Auditing the Fed's gold Posted: 20 Jan 2012 08:49 AM PST 1:48 PT Friday, January 20, 2012 Dear Friend of GATA and Gold: Financial writer Gary North today is heartened that all the candidates for the Republican presidential nomination support auditing the Federal Reserve, and he echoes GATA's observation that the big question about the U.S. gold reserve is not just whether and how much gold is held in the vaults but also whether its ownership is encumbered in any way, as through gold swaps and leasing. North writes: "If the Fed is fully audited, it is likely that the audit will reveal that the gold is encumbered. Foreign central banks have leased their gold. This is a phrase for 'sold the gold,' since the people who borrowed it at 1% per annum then sold it for money and bought government bonds paying 5% or more. They cannot sell these bonds at face value; the bonds have fallen in value. They cannot afford to buy gold in the open market to return the gold to the central banks. The price is already far above what they sold it for. The central banks dare not demand a return of this gold. The gold is still on their books. The IOUs they received from the borrowers are counted as being as good as gold. The voters do not know that the gold is missing." North's commentary is headlined "Auditing the Fed's Gold" and it's posted at GoldSeek here: http://news.goldseek.com/LewRockwell/1327072200.php And at Lew Rockwell here: http://lewrockwell.com/north/north1089.html CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Be Part of a Chance to Discover Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries. -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600. Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/conference-details/vancouver-resource-investme... California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing a silver commemorative coin: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT 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...
|
| Posted: 20 Jan 2012 08:45 AM PST Oracle Pussy Says "Buy Gold." One Of 2011′s Best Performing Hedge Funds Sees Gold At $2,500 Shortly
|
| The [Max Keiser's] information is so powerful they wish to keep it secret Posted: 20 Jan 2012 08:33 AM PST Voting with your dollar: More than just SOPA and PIPA "You're taking a traditional boycott and applying economic metrics and in this process it gives the activist more leverage," says financial activist Max Keiser, "Think strictly in strategic results. If … Continue reading
|
| TF Metals Report: The Significance of 1665 (important update) Posted: 20 Jan 2012 08:31 AM PST Without a doubt, the $250 run in gold over five weeks in August and September was almost entirely caused by Cartel short-covering
|
| Ben Davies forecasts gold and silver for King World News Posted: 20 Jan 2012 08:27 AM PST 1:20p PT Friday, January 20, 2012 Dear Friend of GATA and Gold (and Silver): Interviewed by King World News today, Hinde Capital CEO Ben Davies reviews 2011 in gold and silver and explains his fund's positioning in the monetary metals for the new year. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/1/20_Be... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/conference-details/vancouver-resource-investme... California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Prophecy Coal (TSX: PCY) Wins Positive Feasibility Study Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Coal Corp. (TSX: PCY, OTCQX: PRPCF, Frankfurt: 1P2) has received a positive feasibility study for the company's 600-megawatt Chandgana Mine-Mouth Power Project in central Mongolia. The report was independently prepared by Ralf Thomsen, project manager at Steag, a German firm specializing in the planning, financing, construction, and operation of highly efficient thermal power plants for fossil fuels. The study covers technical specifications, deployment, and financial analysis of a 4x150-mw thermal power plant to be built adjacent to Prophecy's Chandgana Tal coal deposit, which contains 140 million tonnes of measured coal. Last year the power plant received a construction license and the coal deposit received a mining license. Engineering, procurement, and construction management selection and project financing discussion have begun and are expected to be concluded this year. Construction is planned to start in April 2013, with the first 150-mw unit being commissioned in October 2015 and subsequent units to start in April 2016, October 2016, and April 2017. With proper maintenance the project will have 30 years of commercial operation. For the complete statement from the company, including maps and charts, please visit: http://www.prophecycoal.com/news_2011_jan17_prophecy_receives_power_plan...
|
| Hecla Mining Tanks After Lucky Friday Mine Closure Cuts 2012 Silver Production Estimate by 1.5Moz Posted: 20 Jan 2012 08:19 AM PST Top U.S. silver producer Hecla Mining Co. (NYSE: HL) announced on Wednesday, January 11th that it was lowering its 2012 silver production forecast to only 7 million ounces. This represented a 1.5 million ounce decline from the company's former 9.5 million ounce estimate. The substantial production revision prompted a rapid decline in Hecla Mining's share price on the day. Hecla Mining Co.'s common stock fell by -$1.23 on Wednesday to close the day's trading session at $4.61, ending down a whopping -21.1% from its previous daily close. To put this announcement in perspective, a 1.5 million ounce silver production decline roughly equates to a cut of just over 0.2% in global silver mining production that ran at 735.9 million ounces in 2011, according to the Silver Institute. The same source estimated the total global supply of silver was 1,056.8 million ounces for the year. Revised Production Forecast Due to Forced Lucky Strike Closure Hecla Mining's announcemen...
|
| Gold Daily and Silver Weekly Charts Posted: 20 Jan 2012 08:17 AM PST |
| One Of 2011's Best Performing Hedge Funds Sees Gold At $2,500 Shortly Posted: 20 Jan 2012 08:12 AM PST While it is early to determine if the ongoing breakout is finally in anticipation of upcoming episodes of direct and indirect monetization by the Fed, ECB, or any of the many other pathological currency diluters in circulation, it is obvious that precious metals have found a new bid in recent days. Is this then, the beginning of the next surge in gold and silver to record highs? It remains to be seen, but one entity, the Duet Commodities Fund which was one of last year's best performers, has already made up its mind. 'Our central forecast in gold remains constructive as our long term view targets $2,500 in 2012. Our core view is that gold will head higher to the $2,500 range driven by consequential USD weakness once the EU crisis dissipates and the US steps into the limelight. A weaker USD is not undesirable in the world order as everyone (especially China) understands that the US consumer is the driver for global consumer confidence and consequential consumption led demand." Wow - someone in this market can actually think one step ahead of the inevitable ECB LTRO/monetization, and realize that the Fed will in turn have to escalate to that escalation. Gold, er golf clap. From Duet Commodities Fund Dear Investors, When written in Chinese the word "crisis" is composed of two characters. One represents "danger", and the other represents "opportunity". This is the most accurate way I can express my thoughts and feelings about the coming year in the commodities markets. Volatile, unpredictable yet scattered with times of great opportunity. The prophecy of the world ending in 2012 seems ever more relevant when we look at a world flirting with potential disaster. 2011 saw an avalanche of economic and geopolitical events, as well as natural disasters. All of which had negative impacts for commodities demand. The events of the "Arab Spring" re-invigorated fears of instability in the Middle East, the devastating Tsunami in Japan sent a domino effect along the manufacturing supply chains, the already fragile US recovery appeared to be losing momentum, in China the tightening of monetary policy heightened fears of a hard landing and finally European sovereign debt issues continued to escalate. So what does 2012 hold in store for us? 2012 stands a good chance of being politically pivotal, both in terms of people and a clash of ideologies. Among the five permanent members of the UN Security Council, Britain's David Cameron is the only leader who seems certain of still being in power at the end of the year (famous last words). Barack Obama and Nicolas Sarkozy face presidential elections which they may lose. Dmitry Medvedev has already ceded the Russian presidency back to Vladimir Putin. Meanwhile in China, Hu Jintao and Wen Jiabao are due to prepare the handover in early 2013 of the presidency and prime ministership to Xi Jinping and Li Keqiang. Altogether some 70% of China's senior leadership is expected to change. What I am trying to emphasise is that the world's leaders will be preoccupied at home. There will be a large dispersion from which countries will succeed and which will suffer. Emerging markets will for the first time buy over half the world's imports in 2012 and the "red back" will make faster than expected strides towards being recognised as a global functioning currency. Of the main macroeconomic events of 2011 the European debt crisis and the "Arab Spring" have the potential for greatest continued impact in commodities in 2012. If we can intelligently prepare and navigate through these factors and overlay them with the respective commodity fundamentals, we will have a good base to forecast future prices. In Europe we do not believe that the situation will get to a point where the Eurozone breaks up. With the respective nations working hard to manage their situations at home what is very important is they agree on a roadmap on the process of fixing Europe over the next several years. With regard to the "Arab Spring" we have seen tensions re-appear in the Middle East and it seems apparent that this will not be for the last time. Also geopolitical escalation in Iraq and Iran seem likely. The US has removed all troops from Iraq which raises the question whether the country can withstand a potential future attack. In Iran the potential for sanctions appear high and increased political and potentially military action should not be discounted. In the fundamental world we continue to view the commodities market as navigating between the currently balanced or tight physical markets and the threat that the European debt crisis could in the near future cause a global economic recession, which would lead to a sharp drop in demand. The oil market is pricing at a discount to clear the physical markets and drawing down inventory cover in anticipation of a potential sharp drop in oil demand in the near future. This de-stocking is further tightening the physical markets and leaving the oil market increasingly vulnerable should oil demand prove better than expected, or supply disappoint. These forecasts reflect our view that crude oil prices will need to continue to rise in order to slow demand growth, restraining oil demand in line with limited supplies, even in a relatively poor economic growth environment. For 2012, we believe that the risk is skewed to the upside. However, when we reach the point where demand destruction has balanced the market a retracement back to lower levels is expected. Our macroeconomic forecast remains supportive with commodity markets managing to avoid a global economic recession. Economists have lowered their forecast for 2012 world economic growth to approximately 3.2% (from 3.5%) and introduced a 2013 forecast of approximately 4%. This reduced outlook for world economic growth, while not forecasting a global recession, makes it more likely that the commodities market can maintain the central course embedded in our forecasts. Our central forecast in gold remains constructive as our long term view targets $2,500 in 2012. Until we see USD weakness and any associated inflationary expectation we may not see gold significantly higher unless there is further geopolitical unrest (Iran, EU, etc…). Our core view is that gold will head higher to the $2,500 range driven by consequential USD weakness once the EU crisis dissipates and the US steps into the limelight. A weaker USD is not undesirable in the world order as everyone (especially China) understands that the US consumer is the driver for global consumer confidence and consequential consumption led demand. Disturbing any improvements in the US growth economy will hurt all of the global trade partners so the Fed will be inclined to protect US competitiveness and growth via USD management. Throughout 2012 I think we will see various currency devaluations across the globe, as individual nations try to reduce the debt burden and also attempt to increase competitiveness in order to pull out of the recent recession. This debasement in currencies lends well for gold to increase in importance as a store of wealth. So how do we make returns in such an environment? Our core views will not change often, but our timing, sizing and hedging pattern will become more frequent to take advantage of the volatile market conditions. We have mentioned many times to investors that our strategy puts emphasis on the "path" as well as the "destination" of commodity prices and that market's seldom move in a straight line. This seems set to continue in 2012 where we continue to see a "tug of war" between physical fundamentals and macroeconomic events. Overall we are not long term bearish commodities. It is still a buy on dips world. The bears in the world will concentrate on three main subjects: lacklustre demand, a hard landing in China and Europe disappearing in a puff of smoke. We do not subscribe to this boundary condition. Demand has the potential to surprise on the upside and we are already seeing better economic numbers coming from the US. Also, commodities are about demand vs. supply and we do not need incredible demand when there are worse supply issues in key commodities. Europe is not going to be a quick fix but a long process taking several years. The key is consensual agreement and execution of this process which will neutralise the vast amount of fear and uncertainty priced in currently. When the US agreed on their course of action in early 2009 a risk taking sentiment unfolded. Once the EU agrees and implements their plan we may see similar benefits. China has managed its' economy very well, containing price inflation and has now slowly taken the foot off of the brake. Overall this creates a picture that, albeit volatile, should trend higher over the course of the next twelve months. We at Duet Commodities Fund wish you great success in 2012 and look forward to another year of working together. Yours Sincerely
Courtesy of Value Walk
|
| SilverSeek.com 2012 Virtual Silver Investment Conference Posted: 20 Jan 2012 08:05 AM PST SilverSeek.com's 2012 Virtual Silver Investment Conference, an online, one-day event showcasing silver industry experts and top tier silver companies will begin at 10am Eastern on Tuesday, January 31st.
|
| Posted: 20 Jan 2012 08:00 AM PST Any perusal around the world these days features Southern Europe crippled, preparing for the inevitable Greek Govt Bond default. It features a crippled US housing market, a mockery of statistical accounting in the US Gross Domestic Product, the plight of the COMEX with established veterans clearing out desks (not trading), the extreme physical demand reported by the London Trader, and the indictment of the SLV iTrust Silver Fund tool used by the cartel. The survey does not look favorable toward stability. The banking, economic, and political leaders have not pursued reform and remedy in any remote sense. Their only tool left is hyper inflation.
|
| The Contrarian View of Argentina Posted: 20 Jan 2012 07:50 AM PST Synopsis: While no country's perfect, the pros of Argentina far outweigh the cons for those looking for a second residence. Before getting to my main theme today – a contrarian view of Argentina, which I started writing rather reflexively after a number of dear readers sent me links to an interview with an Argentine expat who offered up a very dark appraisal of the country – I have a few bits and pieces I want to share with you.
|
| James Dines - This Will be a Dangerous Collapse & Endgame Posted: 20 Jan 2012 07:42 AM PST The world continues to slide into 'The Coming Great Deflation...We are in a deflation & you need to prepare for it. It's very Bullish for Gold...
|
| COT Gold, Silver and US Dollar Index Report - January 20, 2012 Posted: 20 Jan 2012 07:33 AM PST COT Gold, Silver and US Dollar Index Report - January 20, 2012
|
The issues facing the developed world's financial systems are ones of liquidity and solvency, among others. The assumptions of liquidity levels proved horribly incorrect! The request of the IMF to lift their resources from $380 billion to $980 billion and the currency swaps between the U.S. and Eurozone confirm that (these may still prove inadequate). Many markets, which reserve managers had considered to be deep and liquid, proved to be the exact opposite with assets-selling only at a large discount. This was even true of some AAA-rated assets, showing that credit ratings offered no effective guide to liquidity. Many central banks had to rely on bi-lateral currency agreements with other central banks, principally the US Federal Reserve.
| 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 |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment