Gold World News Flash |
- Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Less Than 1% on the Week
- The Heist Known as Fed Accommodation
- CHINESE BLOW-OUT
- Gold and silver price shakeout
- The Gold Price Broke Today After Rising all Week, Will it Wake Up on Monday?
- Buying Gold in Uncertain Times
- Kyle Bass: “Don't Sell Your Gold”
- Paul Brodsky and Lee Quaintance: A reply to the NYTimes' patronizing of gold
- The Fed's Old New BFF
- The Fed's Old New BFF
- I Can’t Take It Anymore! When Will The Government Quit Putting Out Fraudulent Employment Statistics?
- Caution For Monday
- Weekly Bull/Bear Recap: Jan. 30 - Feb. 3, 2012
- When "Retirement Age" Is Obsolete
- Gold Juniors Poised to Rebound: Joe Mazumdar
- Gold Daily and Silver Weekly Charts
- GoldMoney's Turk likes how precious metals are trading
- When “Retirement Age” Is Obsolete
- Turk - Corrective Action in Gold is Prelude to Bullish Explosion
- COT Gold, Silver and US Dollar Index Report - February 3, 2012
- My Favorite Way to Own Silver
- Nuclear Revival Spur Uranium Miners Higher, Uranerz (URZ) Leading Sector Higher
- Local Top in Mining Stocks Might Be Just Around the Corner
- Gold Bulls unable to break through resistance
- States seek currencies made of silver and gold
- Sinclair interviewed on currency market rigging and gold's monetary role
- NYTimes patronizes gold, whitewashes fiat, overlooks the big questions
- Destroy markets and you destroy economies, Arnott tells King World News
- New Elliot Wave Silver Discovery
| Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Less Than 1% on the Week Posted: 03 Feb 2012 04:00 PM PST Gold rose $3.81 to $1763.01 at about 4:30AM EST, but it then fell throughout most of the rest of trade and ended near its late session low of $1723.66 with a loss of 1.92%. Silver slipped to as low as $33.32 and ended with a loss of 1.98%.
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| The Heist Known as Fed Accommodation Posted: 03 Feb 2012 03:47 PM PST Fed Chairmen often speak of "accommodation" as if it's the magic needed to solve economic problems. But what happens when the Fed "accommodates" us by increasing the stock of money? First, it reduces the value of the dollar. More dollars means each one buys less, putting upward pressure on prices. Technology and improvements in production tend to push prices downward, but because of inflation fewer people can afford admission to the market's bounty. As a rough idea of how far the dollar has plummeted, $5,000 in 1913 had greater buying power than $110,000 in 2011. [BLS inflation calculator] Second, a depreciating dollar discourages savings. Why put money away if it's going to lose value? Instead, millions of investment neophytes put their funds in the stock market in an attempt to protect themselves against Fed printers. Has this been a successful hedge? During the biggest bull market in history – 1984 to 2001 – the S&P rose 14.5 percent a year. But frequent trading by fund managers and high fees reduced the average rate of return to 4.2 percent annually. According to Vanguard group founder John Bogle, if you include the results of 2002, the average return from equities was under 3 percent per year – less than the inflation rate. [Bonner and Wiggin, p. 245] Third, new injections of money spur a tinsel prosperity, and the Fed keeps injecting new money to feed the boom. With so much borrowing and spending, prices may rise even faster than the rate of currency inflation. As the public broods over higher prices, a semantic shift takes place. Inflation comes to mean not an increase in the money supply, but the rise in prices itself. [Sennholz, p. 69] Thus, businesses that charge higher prices become the villains, while government officials that threaten price controls are the avenging angels. Most people have no idea what the Fed does, so government can scapegoat business and appear to be defenders of the public weal. Nor do most people understand that price ceilings create shortages, by encouraging consumption and retarding production. Shortages, in turn, bring on government-imposed quotas, which foster corruption, black markets, and violent crime. Fourth, as the influx of dollars drives prices higher some industries find themselves at a disadvantage with foreign competitors, tempting them to lobby Washington for protection from imports. Protective tariffs and quotas, of course, push prices up further, while sometimes sparking trade wars as other countries retaliate on American exports. And trade wars can lead to shooting wars. On June 17, 1930, with the economy fighting the recession brought on by Fed monetary policies, President Hoover signed the Smoot-Hawley Tariff Act, raising tariffs on over 20,000 imported goods to unprecedented levels. Other countries immediately retaliated, markets shut down, and economic conditions worsened worldwide. Fifth, inflation raises nominal incomes, pushing people into higher tax brackets, which increases government tax revenue. As people's wealth goes out the window in depreciating dollars, taxes consume more of what remains. Sixth, inflation shifts wealth from people who can't or don't know how to defend themselves from monetary destruction to those who can. As a simple example, a person living on a fixed income may find his buying power so depleted he sells a family heirloom to pay for an unanticipated expense. Or a bank that was part of the lending spree that helped drive prices skyward may foreclose on the homes of some of its borrowers, whose incomes were ravaged by monetary debauchery. Seventh, the Fed's "accommodative" measures keep people working much later in their careers because they cannot afford to live off their deteriorating pensions. Dollar depreciation is a huge reason why both husband and wife work in many families. Eighth, because government often gets the new money first, it can fund controversial measures such as war and bailouts without drawing taxpayer ire. Government simply puts the funding on its charge card, prompting the alchemy of Fed debt monetization. We get the bill, of course, but this way it's spread over everything else we buy, so we never see it itemized. Ninth, because inflation has an uneven affect on prices, raising some faster or sooner than others, people have a hard time distinguishing illusion from reality. As cheap credit abounds, business people, investors, and cube dwellers hear the siren call of can't-miss profit opportunities. Fortunes are made then lost, and companies that lose money find it harder to keep employees. Tenth, government may pose as the savior of a group of voters they've impoverished, such as the elderly, by subsidizing their medical expenses. New entitlements create the need for more revenue, which fuels more inflation, pushing the dollar closer to a complete collapse. Eleventh, as Ludwig von Mises observed, "under inflationary conditions, people acquire the habit of looking upon the government as an institution with limitless means at its disposal: the state, the government, can do anything." [Mises, p. 66] Through deficit spending the state will devour limited resources trying to maintain this illusion. If gold is the barbarous relic its many detractors claim it is, we might expect the Fed's fiat currency to be a better deal. But even former Fed Chairman Greenspan admits that it isn't, telling a New York audience in 2002 that prices soared in the decades following the gold heist of 1933. Lord Keynes, the 20th century's guru of deficit spending, never spelled out how deficits should be financed, admitting only that increased taxation was not the answer. [Hazlitt, 1982] Perhaps he had pangs of conscience about calling for inflation outright, since he knew it would destroy society in a manner that "not one man in a million" could diagnose. [Keynes, 1919, Ch. 6] Political issues dominate the news, but how little we hear about the policies nurturing those issues, one of which is government's power to confiscate wealth with the Fed's invisible hand. The foregoing is an excerpt from my book, The Jolly Roger Dollar: An Introduction to Monetary Piracy. 
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| Posted: 03 Feb 2012 12:15 PM PST Lot's of talk about the bullshit BLS statistics. Here's some real statistics that should curl your hair. Everyone keeps predicting China will collapse, and they might. But the damage has already been done. The jobs aren't coming back stateside, and neither is the trillions of dollars we've given and will continue to give them (unless [...]
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| Gold and silver price shakeout Posted: 03 Feb 2012 12:00 PM PST The consolidation of gold's bull phase from October 2008 to the peak last September was a classic three-leg correction: an initial slide, rally, and final sell-off. Silver followed a similar but ...
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| The Gold Price Broke Today After Rising all Week, Will it Wake Up on Monday? Posted: 03 Feb 2012 11:33 AM PST Gold Price Close Today : 1,737.90 Gold Price Close 27-Jan : 1,732.20 Change : 5.70 or 0.3% Silver Price Close Today : 3372.50 Silver Price Close 27-Jan : 3374.70 Change : -2.20 cents or -0.1% Gold Silver Ratio Today : 51.532 Gold Silver Ratio 27-Jan : 51.329 Change : 0.20 or 0.4% Silver Gold Ratio : 0.01941 Silver Gold Ratio 27-Jan : 0.01948 Change : -0.00008 or -0.4% Dow in Gold Dollars : $ 152.99 Dow in Gold Dollars 27-Jan : $ 151.32 Change : $ 1.67 or 1.1% Dow in Gold Ounces : 7.401 Dow in Gold Ounces 27-Jan : 7.320 Change : 0.08 or 1.1% Dow in Silver Ounces : 381.39 Dow in Silver Ounces 27-Jan : 375.74 Change : 5.64 or 1.5% Dow Industrial : 12,862.23 Dow Industrial 27-Jan : 12,680.14 Change : 182.09 or 1.4% S&P 500 : 1,344.90 S&P 500 27-Jan : 1,318.01 Change : 26.89 or 2.0% US Dollar Index : 78.959 US Dollar Index 27-Jan : 78.883 Change : 0.076 or 0.1% Platinum Price Close Today : 1,621.50 Platinum Price Close 27-Jan : 1,621.80 Change : -0.30 or 0.0% Palladium Price Close Today : 705.90 Palladium Price Close 27-Jan : 688.50 Change : 17.40 or 2.5% Appears that the SILVER and GOLD PRICE broke today, or at the very least, must back off for a running start at $1,750 and 3400c. The GOLD PRICE lost $18.90 to close Comex at $1,737.90, and in the aftermarket lost another $10 to $1,726.10. Silver lost 42.6c, closing at 3372.5c, but dropped nearly another 25c in the aftermarket, falling to 3349c. "Twas a big tumble for both. Let's look closer. GOLD PRICE wiped out all its gains since Monday down at $1,725 support/resistance. After rising all week, that's not terribly surprising, but come Monday gold had better wake up and dig its claws into the bark, or it might fall out of the tree. Support stretches out its limbs at $1,725 and $1,705. Breaking those takes gold down to $1,680. Up above, the GOLD PRICE high close has been $1,756.80 (yesterday), but it hasn't been able to breach $1,760. Therefore, watch that level on the upside. Today's break probably wasn't enough to correct the move up from $1,523.90, but a drop to $1705 might be. More likely target is $1,675. That would also mark a kiss-back to the downtrend line. SILVER PRICE looks like gold, but the range is 3440c and 3290c. Always bear in mind that silver is much more volatile than gold, both upside and downside. First, if silver's rally has not been stymied at the 300 day moving average (3448c) for a goodly correction, then it can't fall below 3300c. Next, a routine and shallow correction would sweep silver to 3250c - 3200c. If things get pricklier, then 3100c. Lowest target expected would be 2950c. Of course, we have to patiently wait to see how the correction unfolds. Meanwhile, another buying opportunity is coming y'all's way. Stop your ears now against all the Wall Street Sirens who will be shrieking the silver and gold bull market has died. By now you understand that those folks don't know no more than somebody who works as a spokesman for a government numbers office. One glance at the chart tells you that silver and gold and platinum and palladium all trod water this week. On the other hand, stocks rose this week, mostly today. US dollar index flatlined, and today silver and gold broke. Lo and Behold! The Dow exceeded 12,850 today, and fact of the business is, nearly reached the May intraday high (12,876). Dow today gained a respectable 156.82 points (1.23%) to close at 12,862.23, nearly on the 12,869.95 high. S&P500 was even happier, rising 19.36 points (1.46%) to 1,344.90. What has everybody clambering all over each other to buy stocks? Well, if you can believe it, government numbers. Personally, I don't put nearly as much stock in government numbers as I do in astrology, and I couldn't even tell you what my birth sign is -- the Possum, or the Turkey Buzzard, maybe. Yet in this age of Reason, High Technology, and Right Big Government Lies, people still suck up those government numbers like they were single malt scotch at a free bar. All this big news was that the government's unemployment rate dropped to 8.3%, nearly the low for the last three years. (On another note, if you believe unemployment is 8.3%, call me about some wooden Krugerrands I can sell you really cheap.) Truth is, market was looking for some excuse to rise, that was the news today, so it took the bait. Oh, and by the way, did I tell y'all that a Greek Debt Deal Is Near? Y'all might wonder why I am so negative on stocks. Because they are in a primary down trend (bear market), and if I don't do much more than keep you out of stocks, five years from now you'll still think I was the brightest bulb in the box. Hide and watch., That US Dollar Index this week played Bait and Switch. Looked like it would break through 79.50 and fall off the face of the earth, but it stopped and rallied and even ended the week 7.6 basis points higher than last Friday. Today the dollar index lost a tee-tiny 3.2 basis points (0.04%), leaving me wondering why the currency market has gone so quiet all of a sudden. It ended at 78.959, but climbed as high as 79.357. This currency thing isn't clear. Dollar may rally still and euro may sink to its intrinsic value -- zero -- before the dollar does. The 1.3200 level seems to have blocked the euro this week. Closed 1.3155 today, up 0.06%. Also bumping up against its critical 62 day moving average, and can't punch through. Brace yourself for another stumble for the euro., Reason hath fled the yen market. Closed today down 0.50% at 130.56c/Y100 (76.59/US$1), giving back a third of its spectacular gains since 24 January. It gaps down, then bounces right back, gaps up, then waterfalls down. Why does that picture make me thing of Nice Government Men in their cubicles phoning their partners in manipulation on the market floor? Well, I know election year has come because so many pious confessions are spontaneously erupting from politicians' lips. Yesterday it was Bernard O'Bama shaking out his Christianity before the National Prayer Breakfast, and even Newt Gingrich is claiming to have got religion. You may think I am harsh to say these things, but I say it's as sorry as gully dirt for politicians to trade on their faith. I never have thought much of them "talkin'" Christians, only the "walkin'" ones. They never need to tell you what they believe, because you already know from watching 'em. All the This Day In History websites say that the 16th (income tax) amendment was ratified 3 February 1913, but that's a lie. Secretary of State Philander Knox fraudulently and knowingly certified it when it had never passed. The irregularities in the supposed state ratifications are too numerous to list, but you can read all about it in "The Law That Never Was" by Bill Benson and Red Beckman. Of course, if you don't pay the income tax, the government will try to jail or kill you. Speaking of the IRS, tax time is fast approaching. My friend, Dan Pilla, Jr., at www.taxhelponline.com has over 25 years experience fighting with the IRS for taxpayers' rights. If you have bad tax problems, Dan's the man to call. One of the 11 books he has written is "How to Get Tax Amnesty." Check him out. I receive no remuneration whatever for recommending Dan. 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. 
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| Buying Gold in Uncertain Times Posted: 03 Feb 2012 11:01 AM PST Bill Bonner View the original article. February 03, 2012 11:10 AM Dow down slightly yesterday. Oil falling further below $100. And gold still going up. What is most interesting is the movement in the price of gold. It seems to be heading up again — almost no matter what else is happening. So, let's look at what might be going on… If investors sensed a recovery…they would expect banks to lend more freely…people to shop more freely…and prices to rise. This would raise consumer prices; the price of gold should go up. But if the market sees growth and inflation ahead, why is oil slipping? And why is the Baltic Dry Index — which measures shipping prices — at a 25-year low? And how come last month's employment figures were disappointing? And why aren't stock market prices going up? Most important, if the economy is really recovering, why is the 10-year note yielding only 1.82%? And what about the long bond? Shouldn't it be trading at a yield higher than 3%? An...
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| Kyle Bass: “Don't Sell Your Gold” Posted: 03 Feb 2012 10:25 AM PST from ZeroHedge:
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| Paul Brodsky and Lee Quaintance: A reply to the NYTimes' patronizing of gold Posted: 03 Feb 2012 10:01 AM PST February 3, 2012 Floyd Norris Dear Mr. Norris: It so happens that our friend, Thane Rosenbaum, interviewed former Treasury Secretary Larry Summers last night at the 92nd Street Y in New York. When asked about a gold standard, Summers recoiled and shrieked, "A gold standard is the creationism of economics!" The crowd got a big chuckle out of that. So you seem to be in popular company with your February 3 piece, "In a Focus on Gold, History Repeats Itself": http://www.nytimes.com/2012/02/03/business/in-rise-of-gold-bugs-history-.... But please consider the following: The stock of money does not need to be managed higher by policy makers to accommodate a growing economy, as Keynesian and monetarist economists argue and as you seem to agree. Were the money stock (global money stock, not just U.S. dollars) to grow at 1.5 percent per year (the annual growth rate of the gold stock), all that would mean is that the price level of all aggregate global goods and services could rise only 1.5 percent per year (more or less). Of course, price levels within the bucket containing all-things-not-money would still shift based on preference. The point is that economies could and would grow as much as they should, not as much as they were willing to leverage themselves. ... Dispatch continues below ... 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... All things equal, the price of gold in paper currency terms rises with paper money growth and falls with unreserved credit growth. Its "exchange rate" to U.S. dollars is simply a function of its relative scarcity, like any other currency exchange rate. It's not as complicated or as emotional as you and most economists suggest. All the unreserved credit in the world today ("unreserved" because there is not nearly enough base money with which to repay it, by a factor of about seven times for U.S. bank assets alone), suggests strongly that global central banks will have to manufacture more of their currencies. Thus the strong bid for gold today. In fact, some would argue that the current price of gold in U.S. dollar terms is way too low in the current environment given the enormous leverage already in the system and the amount of money that has to be manufactured in the future to de-lever the system. Based on this metric we believe that gold is undervalued by as much as five times at present, even without any further Fed printing. It might also interest you to know that, using this metric, gold in 1980 became extremely overvalued and so it should have fallen, and obviously it did. Sadly for your readers you did not consider relative value vis-a-vis gold's proper benchmark -- the gap between unreserved credit and base money. So there are some secular reasons to like gold at current prices and even to believe that a disciplined monetary system would benefit the majority of economic actors. If the fervency of gold bugs annoys you so much, why not just suggest to your fellow world improvers that they abolish capital gains taxes on physical bullion and let us crazy gold bugs save in a currency we think will maintain its purchasing power better? We will go away quietly and let you and Mr. Summers amass debt-based "savings." Maybe a little balance is in order? Kind regards, Paul Brodsky and Lee Quaintance http://qbamco.com Join GATA here: 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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| Posted: 03 Feb 2012 09:39 AM PST |
| Posted: 03 Feb 2012 09:39 AM PST |
| I Can’t Take It Anymore! When Will The Government Quit Putting Out Fraudulent Employment Statistics? Posted: 03 Feb 2012 09:36 AM PST from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| Posted: 03 Feb 2012 09:35 AM PST from TFMetalsReport.com:
Just a quick warning for early next week as I do not like the way things traded today. Several things concern me for PM prices early next week.
Read More @ TFMetalsReport.com
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| Weekly Bull/Bear Recap: Jan. 30 - Feb. 3, 2012 Posted: 03 Feb 2012 09:02 AM PST Submitted by Rational Capitalist Speculator
Bull + The U.S. economy is now in a sustainable expansion:
+ The global economic outlook is improving:
+ In Eurozone political and financial news, European nations take one step closer to integration with 25 out of 27 nations signing the new fiscal compact treaty. Moreover, leaders signal strong resolve to save the region, as talk of initiating a €1.5 Tn bailout fund is making the rounds. Meanwhile, the Spanish 10-yr yield breaks under 5%, the Italian 10-yr yield breaks under 6%, the Belgian 10-yr yield breaks under 3.7%, and the French 10-yr yield breaks under 3%. Markets signal that a strong firewall is in place for a Greek and/or Portuguese default. As a hefty insurance policy, the second LTRO on February 29th will likely be more than double the size of the first one (@ ? €1Tn), thus reinforcing the firewall for the banking system from a Greek or Portuguese default. Besides, the Greek default has been on investors' radars for so long, even martians on Pluto know that Greece is defaulting. A climax would result in a rally as uncertainty is lifted. Bear - The end game is coming into view for the Eurozone:
- On the region's economic front, austerity is biting, hard. Italian business confidence slumps to the lowest in 2 years. While Germany is benefiting from a weaker Euro, it's coming at the expense of the rest of the Eurozone; the region's unemployment rate remains near the highest since 1998. French consumer spending dives 0.7% vs. expectations of a gain of +0.2%. Even worse, German December retail sales tank 1.4% vs. expectations of a 0.5% gain (the 4th decline in last 5 prints); so much for a low unemployment rate. Meanwhile, on the financial front, banks are using some of the LTRO money to buy sovereign bonds; but that's about it. They continue to de-leverage, cutting off credit to the Eurozone and undermining any recovery in the region. Furthermore, post-crisis highs in FX swaps between the ECB and the Fed point to tight liquidity conditions, despite unprecedented worldwide coordinated monetary loosening. - The throes of stagflation are in plain view; China "unexpectedly" holds off on reducing reserve requirements for banks, opting instead for reverse-repurchase contracts. Simultaneously, here's what a popping housing bubble looks like. Protests are progressively more intense. - On the U.S. economic front, the S&P Case-Schiller index flags a deepening double-dip for the 99%'s largest asset. Lower home prices will anchor consumer confidence over the medium-term. Over the short-term, rising gas prices are starting to damage confidence; the Conference Board's survey disappoints, printing 61.1 vs. expectations of 68.0 (led by a decline in the present situation). - Israel/Iran continues to bubble underneath the facade of bullish sentiment. No groundbreaking announcements were made after the UN inspection. Instead, it's looking increasingly clear that the U.S. is no longer in control of the situation; an Israeli unilateral attack could come in as soon as 3 months.
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| When "Retirement Age" Is Obsolete Posted: 03 Feb 2012 09:01 AM PST February 3, 2012 [LIST] [*]The next nail in Social Security's coffin: Patrick Cox on one simple substance and three big breakthroughs [*]In the labor force in December, out of the labor force in January: How the government conjured up today's ridiculous unemployment numbers [*]Uncle Sam's curious timing in raising/imposing a boatload of passport fees [*]Readers share their outrage over Odyssey Marine's latest courtroom blow... an object lesson in gold "passing from weak hands to strong hands" ... a sorry anniversary we can't let pass unnoticed... and more! [/LIST] "This will have a profound impact on our demography," says Patrick Cox, "as well as investors' bank accounts." We're used to hearing Patrick wax enthusiastic about how a handful of biotech breakthroughs will make early investors rich... and completely wreck Social Security as we know it. His thesis, if you're not already familiar: We're on the verge of breakthroughs so big that human life spans will...
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| Gold Juniors Poised to Rebound: Joe Mazumdar Posted: 03 Feb 2012 08:40 AM PST The Gold Report: What is the consensus among Haywood analysts on what 2012 will bring for mine commodities, particularly precious metals? Joe Mazumdar: Last year, risk aversion was a common market theme. In 2012, some of the same global economic concerns, such as the ongoing Eurozone crisis and the future of the euro, will continue to draw attention. But we also believe there is potential for positive economic indicators, primarily from the U.S., where there have been upticks in manufacturing and GDP growth. Also, unemployment in the U.S. is down to 8.5%, generating some consumer confidence. Recently, GDP growth for Q411 came in at 2.8%, which was slower than consensus forecasts—3%—but still the strongest in over a year. Political factors will play a role in 2012. There could be a change in leadership among four of the five permanent members of the U.N. Security Council. The presidential election will be a key focus of the U.S. and global market. There are also presidential elections...
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| Gold Daily and Silver Weekly Charts Posted: 03 Feb 2012 08:23 AM PST |
| GoldMoney's Turk likes how precious metals are trading Posted: 03 Feb 2012 08:20 AM PST 4:20p ET Friday, February 3, 2012 Dear Friend of GATA and Gold: GoldMoney founder and GATA consultant James Turk today tells King World News that despite today's setback in the precious metals, he likes the way they're trading -- without enthusiasm even as Europe is about to blow up financially. Turk's commentary is excerpted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/2/3_Tur... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Free Month Subscription to Market Force Analysis for GATA Supporters Market Force Analysis is a unique, patent-pending approach to commodity market analysis. An algorithm has been developed to extract supply and demand weightings from futures market data. The difference between supply and demand is the market imbalance that is called "market force," so named because it is what drives price. It brings clarity to past market action and predicts market trends. Because it is derived from accurate futures market data it is not subject to the errors inherent in macro-level estimates of supply and demand. Learn more here: https://marketforceanalysis.com/About_MFA.html Market Force Analysis focuses on short-term (15 days) and medium-term price predictions to help both short-term traders and long-term investors understand market moves and benefit from the generated prediction of prices. To read subscriber comments that show how much the service is appreciated, visit: https://marketforceanalysis.com/Testimonials.html The MFA service has been pioneered by market analyst and Gold Anti-Trust Action board member and researcher Adrian Douglas. The Market Force Analysis premium service provides: -- A bi-weekly report. -- Access to the MFA hot list of junior mining stocks derived from analysis of more than 800 mining stocks. The MFA hot list consistently outperforms well-known mining share indices like the HUI, GDX, and GDXJ. -- E-mail alerts about actionable trades. -- E-mail updates with important information. To obtain your 1-month free trial subscription to the Market Force Analysis letter, e-mail info@marketforceanalysis.com and put "MFA Free Trial" in the subject field. Join GATA here: 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:
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| When “Retirement Age” Is Obsolete Posted: 03 Feb 2012 08:01 AM PST Addison Wiggin – February 3, 2012
We're used to hearing Patrick wax enthusiastic about how a handful of biotech breakthroughs will make early investors rich… and completely wreck Social Security as we know it. His thesis, if you're not already familiar: We're on the verge of breakthroughs so big that human life spans will be quickly extended by years or even decades. What happens to entitlement programs when people routinely live 40 or even 50 years past "retirement" age?
Three events are coming together at the same time… and they add up to one result: A "nutraceutical" with remarkable disease-preventing properties is about to end up in a lot more people's hands. "I've spoken with scores of doctors and scientists who are using or recommending" this product, Patrick says. "These recommendations, however, were not based on clinical evidence." "Rather, they come from the personal experiences of many in the research community who have seen remarkable improvements in health." Of course, anecdotal evidence doesn't carry much weight with scientists… unless they're actually using the product and seeing the results for themselves. Patrick himself is highly skeptical of big claims, especially in the field of dietary supplements. But his own experience with this product makes him a believer. A year ago, he couldn't raise his right arm above his head. By the time of our symposium in Vancouver in July, he could… using a supplement derived from tomatoes and peppers. And it's not just scientists and newsletter editors, either. Retired tennis star Jimmy Arias and current NFL tight end Jeremy Shockey are among the people who sing its praises. But again, the science hasn't been there… until now.
We mentioned it on Monday, but it bears further discussion. This supplement is now proven to lower levels of C-reactive protein in the blood. CRP is nasty stuff that causes inflammation… and science has linked inflammation to nearly every disease of aging. In addition, many doctors consider CRP a more reliable indicator of heart disease than conventional ones like cholesterol or triglycerides. Check out the results from the first human trials… involving 105 smokers, most of them overweight or obese…  CRP levels were 30% lower in patients taking the supplement. But here's the thing: If you're a nonsmoker but you're overweight, there's a good chance your CRP levels are even higher than the folks in that left bar on the chart. That's because the active ingredient in the supplement is found not only in tomatoes and peppers… but also in tobacco. "Though it is not blinded data," says Patrick, "it is still extremely meaningful. We already knew, from animal and cell studies, that this supplement outperformed other anti-inflammatories ranging from Lipitor, aspirin and ibuprofen to Celebrex."
Out of respect for Patrick's existing readers, we won't reveal which one it is. But chances are it has a location at a mall within easy driving distance of wherever you are. Shoppers who have this retailer's discount card will be entitled to buy the product at 20% off, depending on when they buy. So there's an extra incentive for tens of thousands of potential customers.
"Potentially," Patrick says, "a settlement could be worth many hundreds of millions of dollars. Some have valued the patent's value at more than a billion dollars. Any settlement, however, would accelerate the effort to inform the public about the benefits" of this supplement. So all told, that's three catalysts for this product and this company: clinical proof that it works, a distribution deal with a huge retailer and a hefty payday after years of fighting for its patents. Shares have climbed quickly in the last two weeks — about 30%, in fact. But if you know Patrick by now, you know he doesn't suggest selling for paltry 30% gains. He recommends companies with long-term potential to build life-changing wealth. Which means a 30% jump will look like chicken feed two, three, five years from now. You can still catch this epic run-up in its earliest stages. That's the key to Patrick's strategy. He lays out a compelling case for why this company might fit his strategy best of all… right here.
The headlines look fantastic: 243,000 jobs added last month, the most since last April. The U-3 unemployment rate fell to 8.3%, the lowest since February 2009. So how did the statisticians get there? Well, this is the month every year when they perform their "benchmark revisions" — revised figures from last year that account for all the missed guesses they made at the time. And with that, 1.25 million people who were counted as being in the labor force in December were no longer counted in January. Gone. Poof. We assure you only a slim percentage retired at age 65 and collected a gold watch. Most gave up looking for work a long time ago and no longer "count."
That's the lowest since… drumroll please… May 1983. For perspective, that's when David Bowie achieved superstardom — while confounding his longtime fans — with "Let's Dance."
Take all the people counted in the U-3 figure… add all the part timers who want to work full time… and add all the people who've given up looking for work, no matter how long ago… and the unemployment rate is 22.5%.
As of this writing, the Dow has at last eclipsed its high of 12,811 reached on April 29 last year. The S&P still has 20-some points to climb before it can claim a similar feat.
Silver, after cresting $34 overnight, is back to $33.61.
According to the most recent figures, 1,024 Americans surrendered their citizenship during the first half of 2011. If you want to join them, there will now be a $450 fee where there was none before. And for those who want to stay, the cost of a passport is going up. The combined application fee and security surcharge is going up from $75 to $110. If you need new pages added, that'll cost you $82, whereas before it cost nothing. The State Department says it needs the money "to offset the cost of the pages, the time spent affixing the pages into the passport book, endorsing the passport and performing a quality-control check," reports The Associated Press. We'd love to see State itemize those tasks within the $82 cost… but it's far more likely they simply pulled the figure out of their ass.
"If Odyssey Marine is forced to 'return' its findings to Spain," writes another, "wouldn't it be appropriate to return them where they were located in the first place, namely the bottom of the ocean? Then Spain can claim them again any way they like." "I think," says a third, "they should have gone to a specific spot in the ocean and dumped all the Spanish gold. And then told the Spanish the location within 100 miles."
"If the courts rule that Spain has a right to the gold, then they should have to return it to those that they stole it from." "Odyssey Marine," writes a fifth, combining the themes, "should take everything they found from that Spanish wreck and dump it back in the water exactly where they found it. Let Spain come over and pick up their mess 'legally.'" "Then, some indigenous group should bring suit against Spain so that Spain is left with the cannon and anchors that are rightfully theirs and the gold goes back to the original and rightful owners." The 5: That would be a fun spectacle, wouldn't it? Our documentary, which includes Odyssey's saga, is entering its final stages of shooting. More later, stay tuned.
"What is irrelevant," the reader says, "is your disgusting, snobbish, uncaring, ignorant and condescending attitude toward this reader (who, by the way, is a person with feelings), that for whatever reason WAS a reader of your rag, and most certainly won't bother, given all the above regard for his willingness to write you and get the snotty answer he got." "Do you just suppose he was one of millions to whom the somewhat over 35% drop just 'might' have wiped out much of his wealth — based on your constant touting of gold and silver? "That's pretty damn relevant to those of us who don't hobnob in YOUR financial circles." The 5: At the risk of coming off as even more thoughtless and snobbish… we're not sure where you come up with 35%. From $1,900 to $1,545 is 18.6%, unless Texas Instruments issued a calculator recall we didn't hear about. And if you held on, you've already recovered more than half that paper loss. There's still time to get back in. But your cost basis will likely have gone up.
"There is nothing shown," writes another, "that can't be taken down with a few shotgun blasts or maybe just a good water sprinkler." "To date, most academic swarm work seems to use a central processor to compute all the requisite guidance information and transmits same to the individual craft … the crafts are not swarming via autonomous self-assembly… so jamming the typical WiFi band or taking out the central controller are viable self-protective retaliation options." "Not fun, and a true shame to be contemplating in USA, but geeky types pursuing their fantasies are often taken in by nefarious bureaucrats (just think Nazi rocket and jet engine development for clear examples)."
The 5: That might be true, but for now at least, the former type of drones don't fly without the guidance of the latter. Have a good weekend, Addison Wiggin P.S. We can't let the day pass without noting the 99th anniversary of the blight on the republic known as the 16th Amendment. With its ratification, the income tax came into effect. "The government," wrote Frank Chodorov decades ago, "says to the citizen: 'Your earnings are not exclusively your own; we have a claim on them, and our claim precedes yours; we will allow you to keep some of it, because we recognize your need, not your right; but whatever we grant you for yourself is for us to decide.'" Laissez-Faire Books executive editor Jeffrey Tucker pays homage to Chodorov, plus those who came before and since, in this essay he polished off within a couple of hours of our morning editorial meeting. Then he ventures into Washington, D.C., later today for an in-studio interview with Lauren Lyster on RT's Capital Account. That's at 4:30 p.m. EST. Then tonight at 8:00, Jeffrey goes toe-to-toe with Dean Baker of the Center for Economic and Policy Research at the Montserrat House. The topic: the Federal Reserve. It will be no conventional debate. Like Jeffrey, Mr. Baker is a trenchant and witty critic of the Fed. But alas, Mr. Baker believes its failings can be remedied by putting better and smarter bureaucrats in charge of it. The event will be packed… but it will also be streamed online. We'll have a video crew in attendance tonight. Watch for the link next week in The 5.
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| Turk - Corrective Action in Gold is Prelude to Bullish Explosion Posted: 03 Feb 2012 07:48 AM PST  With gold trading roughly $35 lower, silver down nearly $1, today King World News interviewed James Turk out of Spain. Turk told King World News that this corrective action in gold and silver is healthy and a prelude to a major bullish move to the upside. Here is what Turk had to say about money on the sidelines and where gold and silver are headed: "Sooner or later that money is going to realize the train is pulling away from the station. Whether this money comes in next week or the week after, I do very much like this trading action. I'm very bullish here short-term on gold and silver, it looks very, very good."
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| COT Gold, Silver and US Dollar Index Report - February 3, 2012 Posted: 03 Feb 2012 07:47 AM PST COT Gold, Silver and US Dollar Index Report - February 3, 2012
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| Posted: 03 Feb 2012 07:11 AM PST My favorite way to own silver is the Sprott Physical Silver Trust (NYSE:PSLV). This is a product of the Eric Sprott group, of Toronto. Units of this trust were trading well above $20 a few months ago. But today, even after silver's January rally, the units are trading below $15. That's a 25% decline, which is in sync with the drop in the price of silver. This recommendation isn't intended to focus on short-term moves. The idea is to build a solid silver position for the longer term. It's your way of building a silver play for the next couple of years, by which time we should see very healthy gains. The Sprott Physical Silver Trust is a closed-end trust that's entirely focused on physical silver. The intent behind the trust is to invest in and hold substantially all of its assets in silver bullion. It provides a secure, convenient means for investors to hold silver without taking personal physical delivery. The trust does NOT speculate with regard to short-term changes in silver prices. Specifically, the trust invests in unencumbered, fully allocated London Good Delivery (LGD) silver bars. That is, it owns real silver — the metallic kind that hurts when you drop it on your foot — and not paper promises from any counterparty. About 99.8% of the trust's current net assets are invested in physical LGD silver bars. The trust stores its silver at the Royal Canadian Mint, a "Crown corporation" located in Ottawa, Canada. The Mint is responsible for loss or damage to silver in its custody. To ensure security, the silver bullion is subject to periodic inspections and annual audits. The Mint is also the counterparty to the Sprott Trust, meaning that there's no financial institution standing between the unit holder and the silver. Thus, this Sprott Trust is almost as good as keeping silver yourself (which I still recommend, in reasonable quantities). I'll even grant that this trust is, in some respects, more convenient than buying the metal and having to store it on your own. The trust has a unique physical redemption feature for large unit holders. Investors who hold the equivalent dollar value of 10,000 ounces of LGD silver bars, or more, may "redeem" their units for physical silver. If you do that, then the Mint will deliver the bars (almost) anywhere in the world via an armored transportation service. The trust is structured such that any physical redemptions will not dilute remaining unit holders. Furthermore, there's a nice tax advantage for non-corporate US investors. If you hold trust units for a minimum of one year, and timely file the appropriate forms with the IRS, the trust units are taxed at a capital gains rate of 15%, versus 28% — which is the higher rate that applies against most silver exchange-traded funds and silver coins. I've seen an estimate that, over the course of history, mankind has mined and produced over 42 billion ounces of silver. If that's true, I have no idea where most of it is. Evidently, all that silver has been used up in industrial processes or lost to corrosion and the like. The point to keep in mind is that there's very little silver out there for investment purposes. According to the silver scholars at Sprott, the current physical silver supply that's available for investment, in US dollars terms, is worth less than 1% of the equivalent value for investable gold. Looking at it another way, for every one dollar available in physical gold bullion and coins, there's less than one cent available in investable silver. This supply discrepancy isn't reflected in the current silver price. What else? Among other things, we're already seeing a slowdown in copper output due to declining industrial demand. But a copper slowdown will — as night follows day — certainly cause a slowdown in silver output. That's because a large percentage of the world's available silver comes as a byproduct of copper mining. Give the copper slowdown a few months and the decline will induce a shortage of silver. This phenomenon will just plain bite the silver markets in the rear end. We may even see another sharp upward spike in silver prices a few months down the road. I would never tell you that silver prices couldn't fall further. In this market, anything is possible. But if silver prices do fall in the near term, this Sprott Trust is still a solid play over the long term. The bottom line here is that the Sprott Physical Silver Trust offers a convenient and tax-efficient investment in physical silver. It's the next best thing to buying your own bars. Regards, Byron King My Favorite Way to Own Silver 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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| Nuclear Revival Spur Uranium Miners Higher, Uranerz (URZ) Leading Sector Higher Posted: 03 Feb 2012 07:09 AM PST
We are in the midst of a powerful rebound in our select uranium miners such as Uranerz (URZ). The charts indicate an explosive 220% rebound since October lows. For months we sent out reports that Uranerz will outperform as they are well funded and have already initiated construction on their Nichols Ranch In Situ Uranium Project, which should be producing uranium by the end of the year. They also have agreements with Cameco and Exelon, two major nuclear players. In fact Uranerz is leading the sector over the past three months regaining its 200 day moving average and rallying over 225% from October lows.
See the map of their enviable land position between Uranium One and Cameco by clicking here. I wrote to my readers back in October, "In relative performance to the S&P Uranium stocks returned to 2009 levels, extremely oversold and demonstrating negative divergences for several months. Keep your hands on the nuclear plow. If one has not invested in this sector, this is a chance to buy wholesale. The coming months will give geometric gains as safe, modern, clean and affordable nuclear reactors come online. Stay steadfast to reap the coming rewards." Check out the recent interview with Dennis Higgs, Executive Chairman of Uranerz, discussing the uranium market and updating us on current developments in the Powder River Basin in Wyoming. For Dennis Higgs bio as well as the other experienced managers and directors click here… Gold Stock Trades will not regale you with the growing presence of nuclear facilities throughout the world despite the German and Japanese negative stance. It is well known that reactors are going to come online in increasing numbers and that uranium will be in rising demand. In fact, several reactors are being built right here in the United States as well as all over the world. The U.S. Nuclear Regulatory Commission is scheduled to approve Southern Co.'s application for the first construction permit to build modern nuclear reactors in more than 30 years. Southern is planning to build two new generational reactors and the NRC is considering a license to build additional newly designed reactors in South Carolina. Nuclear power accounts for 20% of all electricity being produced in the United States and is expanding with the construction of new safer, efficient and cleaner nuclear reactors. This is being done all over the world. The once in a millennium earthquake and tsunami in Japan has triggered a knee jerk panic driven reaction from politicians especially in Germany and Japan. However, the U.S. Nuclear Regulatory Committee released a study nearly a year after Fukushima stating "Public health consequences from severe accidents are very small…successful implementation of existing mitigation measures can prevent reactor core damage or delay or reduce offsite releases of radioactive material." The study, called the State-of-the-Art Reactor Consequence Analyses (SOARCA), looked at worst case scenario situations and its impact on health. This means the U.S. is going full speed ahead on nuclear while Germany and Japan continue with skyrocketing electricity costs. It is to be noted that four of the giant Japanese nuclear builders are aiming their sights to countries all over the world especially the emerging nations, which are constantly seeking inexpensive and clean electrical energy. They are responding to this global need by sending teams of experts to sell the building of a new generation of reactors. Japan wants to sell nuclear reactors abroad to boost their exports. The companies that are participating are Hitachi and Mitsubishi Heavy Industries among others. The Japanese claim that emerging nations can learn from the Japanese Nuclear Experience. The Giants do have a vocal opposition at home who are criticizing this outreach by calling it hypocrisy and the setting up of double standards. Japan is impaled on the horns of a nuclear quandary, weighing their thirst for exports against their own domestic naysayers. Money talks. The Japanese Nuclear Industry posted an annual profit of over $3 billion dollars which made a welcome addition to their balance of exports. They have gone so far as to offer interested emerging nations not only the building know how, but they are offering them loans to assist them in this pursuit. It's almost an offer that these young nations will find hard to resist in their search for efficient and affordable, clean electricity. Moreover, there are reports that Germany and Switzerland are fast coming to the awareness that the costs of locking up their nuclear plants will cost large amounts of capital. Siemens published a report that it would cost Germany more than $2 trillion dollars to wean off nuclear by 2030 causing major deficits. Imagine they are placing their trust in foreign providers. It is going from wholesale to retail at great costs to their economies. Capital will flow to countries that make sane, rational decisions with regard to nuclear. Recently, Russia and the United States have taken a page from this Japanese imperative. Formerly at loggerheads during The Cold War, they are now uniting cordially to ensure that nuclear fuel is available for the growing number of new generation of nuclear reactors. We have remained steadfast in highlighting the importance on our select list of uranium miners right here in the United States. This means jobs and new ancillary industries rising to accommodate the increasing uranium output. We are speaking about new cranes, highways and even cities. We are talking about a U.S. nuclear revival. How does all this relate to our subscribers? It is evident that nuclear power in not only here to stay but will proliferate as world demand keeps on growing. Our select uranium stocks have been rebounded considerably after being left for dead only weeks ago. Our subscribers are having their patience rewarded. The German and the Japanese liberals will reconsider their knee jerk political reaction as their policies weaken their once proud credit rating and economic standing. Disclosure: Long URZ and Featured on http://goldstocktrades.com
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| Local Top in Mining Stocks Might Be Just Around the Corner Posted: 03 Feb 2012 06:37 AM PST This December gold prices swooned by more than 10 per cent in their biggest monthly fall since the collapse of Lehman Brothers. For some insecure gold investors it was like a bad dream. They were happy to wake up to a ... Read More...
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| Gold Bulls unable to break through resistance Posted: 03 Feb 2012 06:00 AM PST [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Today's payrolls number, something which I might add is more akin to an Alice in Wonderland creation, was the factor responsible for the selling in both gold and in silver. The thinking was that if the economy is gathering steam at such a fast clip as the numbers suggest, then any notion of additional QE3 is a pipe dream. That means no Dollar debasement and little to fear on the inflation front so out came the sellers in the gold market. It also did not help the bullish cause that the market failed at a critical technical resistance level. Between the two developments, longs who have had a nice run lately, decided to go ahead and take the profits while they were still there and wait for a better buy back in point. Short sellers looking for a top were also emboldened and made their presence felt as they have been on their heels lately due to the strong buying present in that pit. The Euro gold...
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| States seek currencies made of silver and gold Posted: 03 Feb 2012 05:53 AM PST GATA By Blake Ellis http://money.cnn.com/2012/02/03/pf/states_currencies/ NEW YORK — A growing number of states are seeking shiny new currencies made of silver and gold. Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place. "In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System … the State's governmental finances and private economy will be thrown into chaos," said North Carolina Republican Representative Glen Bradley in a currency bill he introduced last year. … Dispatch continues below …
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… Unlike individual communities, which are allowed to create their own currency — as long as it is easily distinguishable from U.S. dollars — the Constitution bans states from printing their own paper money or issuing their own currency. But it allows the states to make "gold and silver Coin a Tender in Payment of Debts." To the state legislators who are proposing state-issued currencies, that means gold and silver are fair game, said Edwin Vieira, an alternative currency proponent and attorney specializing in Constitutional law. And since gold has grown exponentially more valuable, while the U.S. dollar continues to lose ground, the notion has become increasingly appealing to state governments, he said. The state gold rush: Utah became the first state to introduce its own alternative currency when Governor Gary Herbert signed a bill into law last March that recognized gold and silver coins issued by the U.S. Mint as an acceptable form of payment. Under the law, the coins — which include American Gold and Silver Eagles — are treated the same as U.S. dollars for tax purposes, thereby eliminating capital gains taxes. Since the face value of some U.S.-minted gold and silver coins — like the one-ounce, $50 American Gold Eagle coin — is so much less than the metal value (one ounce of gold is now worth more than $1,700), the new law allows the coins to be exchanged at their market value, based on weight and fineness. … Local currencies: In the U.S., we don't trust "A Utah citizen, for example, could contract with another to sell his car for 10 one-ounce gold coins (approximately $17,000), or an independent contractor could arrange to be compensated in gold coins," said Rich Danker, a project director at the American Principles Project, a conservative public policy group in Washington, D.C. South Carolina Republican Representative Mike Pitts proposed a currency system that would allow people to use any kind of silver or gold coin — whether it's a Philippine Peso or a South African Krugerrand — based on weight and fineness. Pitts said in the bill, which currently has 12 co-sponsors, that the state is facing "an economic crisis of severe magnitude." Republican representatives from Washington State recently followed suit, introducing a bill in January that would also allow any gold and silver coins to be considered legal tender based on metal values. Minnesota, Iowa, Georgia, Idaho and Indiana are also considering similar proposals. Many of the bills would make it possible for residents to exchange the physical coins for goods and services, so you could use coins to buy anything from groceries to a car as long as the store chooses to accept them. But most people aren't going to walk around with such valuable coins clinking around in their pockets, said Vieira. Plus, calculating the value of the coins — especially if they come from different parts of the globe and are of different sizes and shapes — will get tricky, said Vieira. It's more likely that the states will create electronic depositories and accounts for the coins to make transactions easier, when and if the initial bills are passed, he said. Utah Gold & Silver Depository is already developing a system where customers could use debit cards linked to their gold holdings. When customers swipe their debit cards to make transactions, physical gold and silver coins would be transferred between accounts in privately-owned depositories (or vaults) based on the market value of the metals. Deposits would be made by taking your gold or silver to the depository. Before deciding on a specific form of currency, some states — including Minnesota, Tennessee, Virginia and North Carolina — are considering proposals that would first require a committee to review their alternative currency plan. The future of U.S. currency: The states' proposals have been gaining steam among Tea Partyers and Republicans, many of whom also endorse a nationwide return to the gold standard, which would require the U.S. dollar to be backed by gold reserves. Tea Party father Ron Paul is sponsoring the "Free Competition in Currency Act," which would allow states to introduce their own currencies, and rival Newt Gingrich is calling for a commission to look at how the country can get back to the gold standard. But it will be the individual states that could really get the ball rolling, said Vieira. Even if several of the current proposals get killed, the introduction of so many bills at the state level is drawing national attention to the issue, he said. … Funny money: 11 local currencies Of all the state proposals circulating right now, Republican-controlled states including South Carolina, Georgia, Idaho, and Indiana have the best chance of passing their proposed bills this year, said American Principles Project's Danker. If just one or two states implement an alternative currency, it could have a domino effect, he said. "I think we could get a couple passed in this legislative session, and that would show this is mainstream, popular and it would be a justification for more of the risk-averse states for doing this," said Danker. There are, of course, many people who think the recent push for alternative state currencies should be stopped in its tracks. David Parsley, a professor of economics and finance at Vanderbilt University, said he thinks state-issued currencies are a "terrible" idea. "Having 50 Feds" could debase the U.S. dollar and even potentially lead the country into default, he said. "The single currency in the United States is working just fine," said Parsley. "I have no idea why anyone would want to destroy something so successful — unless they actually wanted to destroy the country." Join GATA here: California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe… Support GATA by purchasing a silver commemorative coin: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Be Part of a Chance to Discover Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : – A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. – The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries. – A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600.
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| Sinclair interviewed on currency market rigging and gold's monetary role Posted: 03 Feb 2012 05:53 AM PST GATA 11:35p ET Thursday, February 2, 2012 Dear Friend of GATA and Gold: Gold mining entrepreneur, trader, and market analyst Jim Sinclair this week gave two interviews to the German Internet site Metallwoche, one with the freelance journalist Lars Schall, in which he concurs with GATA's view of currency market rigging and gold's role as money, and another in which he argues that China and the Federal Reserve are pretty much managing the value of the euro. Audio of the interviews is posted here: http://www.metallwoche.de/mr-gold-himself-jim-sinclair-presented-by-meta… 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: 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 4×150-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…
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| NYTimes patronizes gold, whitewashes fiat, overlooks the big questions Posted: 03 Feb 2012 05:53 AM PST GATA In a Focus On Gold, History Repeats Itself By Floyd Norris http://www.nytimes.com/2012/02/03/business/in-rise-of-gold-bugs-history-… As it was in 1980, could it be again in 2012? The 1980 presidential election was fought by a Democratic incumbent weakened by a poor economy amid worries that the United States had lost its ability to compete in the world. Gold prices had risen to unprecedented levels as the election approached, and the Republican nominee hinted he might propose a return to a gold standard. That Republican, Ronald Reagan, won the election and soon appointed a commission to study the role of gold in monetary systems. To gold bugs, it appeared to be the best chance in decades to move the country toward gold and away from what they like to call "fiat money," a currency anchored by nothing more than government dictates. Last month, Newt Gingrich, seeking to widen his support in the days leading up to the South Carolina primary, promised that he would appoint a new gold commission. "Part of our approach ought to be to re-establish something Ronald Reagan did in 1981 and that is to have a commission on gold to look at the whole concept of how do we get back to hard money," he said in a speech. … Dispatch continues below …
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"Hard money is a discipline," he added. "It is very important for us to understand in finance that the entire contraption that has been built up over the last 30 or 40 years has so much paper in it, so much debt, so much leverage, that we probably have a fifteen- or twenty-year period of working our way out of it. And yet, the alternative is to get sicker and sicker and sicker." That call may have helped him in South Carolina, where he scored a victory over Mitt Romney, but it did not do much for him in Florida, where he finished a distant second in this week's primary. His strategy now is to present himself as the only conservative with a chance, and thereby persuade supporters of Rick Santorum and Ron Paul to unite behind him. Support for a gold standard is a major part of Mr. Paul's platform. Mr. Gingrich, it should be noted, did not promise to support a gold standard, only to appoint a commission. If he is serious about following Mr. Reagan's precedent, there may be little chance of a move to gold even if Mr. Gingrich does win the Republican nomination and the November election. In office, Mr. Reagan showed no inclination to buck the collected wisdom of most economists, whether Keynesian or monetarist. The 1980 Republican platform denounced "the severing of the dollar's link with real commodities in the 1960s and 1970s," which it blamed for inflation. "One of the most urgent tasks in the period ahead will be the restoration of a dependable monetary standard," it added. As Anna Schwartz, an economist who served as the gold commission's staff director, later wrote, that section could be seen as a "veiled reference to a prospective return to a gold standard." Under a gold standard, the dollar would be valued at a certain number of grams of gold, and the government would be ready to buy or sell gold to anyone based on that value. The commission's report was delayed and when finally released called for a continuance of the monetary status quo, albeit with the possible issuance of American gold coins to compete with the South African krugerrand. The platform plank turned out to have no real meaning, and gold bugs were outraged. The commission, Murray N. Rothbard, a libertarian economist, later complained, was "overwhelmingly packed with lifelong opponents of gold who buried any call for a hard currency." Ms. Schwartz noted that Treasury Secretary Donald T. Regan, who was the commission's chairman, and Murray Weidenbaum, a member who was Mr. Reagan's top economic adviser, "did not tip their hands until the final two meetings of the commission." Mr. Gingrich did send a signal that his commission would be different. He said the co-chairmen would be Lewis Lehrman, the author of a recent book titled "The True Gold Standard," and James Grant, the editor of Grant's Interest Rate Observer. "The fundamental conclusions of a Lehrman-Grant commission to consider a gold standard may be foregone: We're for it," Mr. Grant wrote in the latest issue of his publication. Mr. Lehrman, in fact, was one of the two dissenters to the Reagan commission report. The other dissenter was a Texas congressman named Ron Paul. More than almost any other dispute in economics, gold often seems to be a matter of theology. To supporters, gold has been money for thousands of years, and a return to it is the only way to keep politicians from debasing currencies. To most current economists, gold is a commodity, subject to the normal fluctuations of supply and demand. To them, the supply of money should be controlled based on economic principles. With a gold standard, the amount of gold available to back money could grow only at the same rate that gold stocks increased, something that depends on mining successes, not on the needs of an economy. The University of Chicago last month asked a panel of 40 economists, including former advisers to both Democratic and Republican presidents, if they agreed that "price-stability and employment outcomes would be better for the average American" if the dollar's value were tied to gold. Every one of them disagreed, some with more than a little incredulity that such a question was worthy of discussion. "Why tie to gold?" asked Richard Thaler, a University of Chicago professor. "Why not 1982 Bordeaux?" "Eesh," responded Austan Goolsbee, a Chicago colleague and former adviser to President Obama. "Has it come to this?" Even economists with some sympathy to gold opposed the idea. "The gold standard adds credibility when a country lacks discipline," said Edward Lazear of Stanford, who served as chairman of the Council of Economic Advisers under President George W. Bush. "The cost is monetary policy flexibility. The trade-off is unclear in the U.S." Nowhere was the chasm in perception about gold clearer than at a congressional hearing in July, when Mr. Paul asked Ben S. Bernanke, the chairman of the Federal Reserve Board, "Do you think gold is money?" The Fed chairman appeared to be surprised by the question and paused for a few seconds before replying, "No." Then why, asked Mr. Paul, did central banks hold gold reserves? Why not diamonds? "Well," Mr. Bernanke replied, "it's tradition." It is no coincidence that gold is back as an issue now, more than 30 years after its last significant appearance in presidential politics. It was the vanquishing of inflation by the Federal Reserve in the early 1980s under Paul A. Volcker that led to a collapse in the price of the precious metal and to the widespread belief in the wisdom of central bankers. That reputation suffered badly in recent years. There is little doubt that the Fed, under Alan Greenspan, helped bring on the housing bubble through a combination of easy money and loose regulation of banks. But to most economists, the fact that central banks can err does not prove they should be replaced by an inflexible gold-based regime, which many think contributed to the Great Depression. "A gold standard would have avoided the policy mistakes of the 2000s," conceded Daron Acemoglu of MIT in his response to the Chicago survey. But, he added, "discretionary policy is useful during recessions." At the congressional hearing in July, Mr. Paul pointed out that the gold price had doubled over the previous three years. "When you wake up in the morning," he asked Mr. Bernanke, "do you care about the price of gold?" "I pay attention to the price of gold," the Fed chairman replied, "but I think it reflects a lot of things. It reflects global uncertainties. I think the reason people hold gold is as a protection against what we call tail risk — really, really bad outcomes — and to the extent that the last few years have made people more worried about the potential of a major crisis, then they have gold as a protection." Mr. Bernanke has a point. The price of gold in recent decades has been a reflection of the waxing and waning of fears of "really, really bad outcomes." When the Reagan gold commission issued its report in March 1982, the economy was in a severe recession but gold cost about half what it had gone for when the 1980 Republican platform was being written. The country was regaining its confidence. In the current cycle, gold peaked at $1,900 an ounce last fall amid worries that the American economy was headed for a double-dip recession and that the euro zone would collapse. Those fears have since receded, although gold has climbed back over $1,700 since Mr. Gingrich called for a gold commission. You don't have to be a conventional economist to hope that gold prices are going to decline over the next few years, just as they did after the 1980 peak. Join GATA here: 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…
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| Destroy markets and you destroy economies, Arnott tells King World News Posted: 03 Feb 2012 05:53 AM PST GATA 6p ET Thursday, February 2, 2012 Dear Friend of GATA and Gold: Fund manager Rob Arnott tells King World News today that central bank intervention is destroying markets and thus national economies as well. Arnott says: "The three major developed economy centers are all pursuing a process of cranking the printing press to suppress natural market response and natural market interest rates. It represents a powerful distortion for the capital markets. It represents a powerful impetus for people to do one of two things: take risks they might not otherwise have been willing to take, creating the risk-on trade, or take their money off the table altogether. Think of gold as an example — it's a way of taking money out of circulation." An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/2/2_Rob… CHRIS POWELL, Secretary/Treasurer 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 4×150-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… Join GATA here: 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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| New Elliot Wave Silver Discovery Posted: 03 Feb 2012 05:44 AM PST By Alf Field Alf Field Archives I have received numerous emails asking about silver. This article was prompted by a question enquiring what the silver price might be if my gold forecast of $4,500 proved to be correct. The question caused me to take a closer look at silver. The reason why I have written very little about silver in the past was because the beautiful Elliott Wave (EW) symmetry and predictable relationships visible in gold were not to be found in silver. This article reveals a new EW discovery that proves that EW is alive and well and living in silver. I first wrote about silver in December 2003 in an article titled "US Dollar Implosion – Part II". The link to this article is at: US Dollar Implosion - Part II. The brief piece on silver was tacked onto the end of that article. In view of its brevity, the 2003 silver piece is reproduced in full below: Quote: SILVER "In past crises, the wealthy protected themselves by purchas...
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The mainstream media seem willing to sound the all-clear and bring us back from Defcon-3 on the back of what can generously be described by realists willing to look at the actual data as a 'murky' NFP print. The market's reaction seems modestly QE-off (with rates up decently) but the only modest drop in Gold appears to fit with a lack of conviction in the data (especially given the EUR sell-off on Papademos chatter). It seems, as 
"This will have a profound impact on our demography," says Patrick Cox, "as well as investors' bank accounts."
This morning, the question is a lot less hypothetical than it appears.
"I am enormously gratified to see the first clinical data validate my assumptions and predictions," says Patrick, citing the first of the three big events.
The news gets better, which brings us to the second big event: This product is about to be sold by one of the leading supplement retailers in the country.
Here's another bit of propellant in this company's fuel tanks: It's about to collect a significant payday from a blue chip company in a patent-infringement lawsuit. A magistrate has been appointed to oversee the final stages of the suit's resolution.
The Bureau of Labor Statistics delivered a ridiculously bullish monthly employment report this morning. As usual, there's more than meets the eye… and this month, much more.
Thus, the labor force participation rate — the percentage of the working-age population in the labor force, and one of the few numbers the statisticians can't fudge — dropped to 63.7%.
For the record, unemployment as measured by John Williams at ShadowStats.com actually rose last month.
The service sector grew big-time last month, according to the ISM nonmanufacturing survey. It rang in this morning at 56.8, up from December's figure of 53.
Pile the services number on top of the phony unemployment number and you have a nifty end-of-week rally on Wall Street.
Gold is losing ground as the week winds down. At last check, the spot price was $1,737.
How's this for timing? Barely a week after the IRS' watchdog 
"If Odyssey Marine must return the treasure to Spain," reads the first of several emails on the topic today, "then they should put it back where they found it. Outrageous!"
"If the Spanish are suing Odyssey," writes a fourth, "then the ancestors of the Inca and the Aztecs should sue Spain for theft, because they stole the gold from them, slavery and crimes against humanity for the destruction of their civilizations."
"You bunch of thoughtless snobs," writes a reader who took us to task for our elliptical response yesterday to another reader who pointed out that Venezuela's repatriation of gold coincided with gold's drop from $1,900. We said long term, any connection would prove irrelevant as gold continued to climb.
"Guess it's time to buy a shotgun," writes a reader after seeing our item on swarms of drones yesterday, "to fend off the nano quadrotors that will be flying around my house."
"'Swarms of drones,' 'army of bureaucrats' — you forgot to mention that the bureaucrats have less native intelligence than the drones."
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