Gold World News Flash |
- 2 mill here, 2 mill there
- By the Numbers
- Ter·ror·ist (Noun): Anyone Who Disagrees with the Government
- Gold Rockets Higher off of Trendline
- Gold Seeker Closing Report: Gold and Silver Gain About 1.5%
- Backwardation in Silver Continues to Demonstrate Extreme Physical Tightness
- Bernanke Sends Gold & Oil Surging in War Against Middle Class
- Why Is Global Shipping Slowing Down So Dramatically?
- Gabelli Gold's Bryan expects another leg higher in King World News interview
- Chairsatan Isn't Worried About Inflation - Should You Be?
- Jim Rickards: Iran, The Dollar And Financial Warfare
- Guest Post: The Fed Resumes Printing
- Eurasian Minerals and Bullion Monarch Mining Enter Into Merger Agreement
- Webster Tarpley in Iran: "US wages wars to avoid dollar collapse"
- Goldcorp, gold council chairman Telfer implicated in insider scheme; he denies it
- In the Bullring with Gold
- Harvey Organ's Daily Gold & Silver Report
- Caesar Bryan - Strong Gold Buying from Asia on Any Weakness
- Nomi Prins on Bernanke's Testimony, Obama's Mortgage Plan and Greece's Missed “Bailout” Deadline
- France/Greek Rescue Attempts / Bernanke Speaks, Gold and Silver Rise / Manufacturing Leaving Japan
- Gold Price Has Been on a Short Term Correction for the Last Three Days but Wants to Climb Higher
- Ron Paul & Gold As A Competing Currency
- Believe In A Return To The Gold Standard? You Are Now Officially An Extremist According To The FBI
- Greek Economy Implodes: Budget Revenues Tumble 7% In January On Expectation Of 9% Rise
- The Journey Continues!
- SEC Money Market to Throttle Withdrawals and Break a Buck
- Equities And EURUSD Outperform As Divergences Increase
- A Hidden War with Russia?
- Daily US Dollar Index Chat
- The Fed is Engineering Obama’s Re-Election Campaign
| Posted: 07 Feb 2012 07:46 PM PST COMEX is getting very very active again in the silver vaults. Not everyday you see two million ounces flying...
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| Posted: 07 Feb 2012 06:11 PM PST The Gold Speculator
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| Ter·ror·ist (Noun): Anyone Who Disagrees with the Government Posted: 07 Feb 2012 05:03 PM PST I noted in 2009:
This may have seemed over-the-top to some, but events have proven it true. For example, the following is considered terrorism or suspected terrorism in modern America:
In fact – since 9/11 – virtually all dissent has been equated with terrorism. As Paul Joseph Watson notes:
In modern America, curling up in a ball to avoid police violence may also be considered "active resistance" … justifying the use of more force, including baton strikes. And even pointing out tyrannical trends may be grounds for harassment. Note: Some also claim that copyright infringers are terrorists, and swat teams have been deployed against them. See this, this, this and this. I'm not condoning copyright infringement, but merely citing to the all-pervasiveness of the "terror" label. And given that even grandmas and children might innocently and unwittingly download copyrighted content, any tendency to use the terror label is troubling.
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| Gold Rockets Higher off of Trendline Posted: 07 Feb 2012 04:30 PM PST courtesy of DailyFX.com February 07, 2012 03:36 PM Daily Bars Prepared by Jamie Saettele, CMT Gold rallied over $20 today after touching a trendline that extends off of the 12/29 and 1/25 lows. Still, a bearish is valid against 1765.90 (daily key reversal last Friday). A drop below 1712.60 would shift focus to the January congestion zone at 1647/85. Bottom Line – short, stop 1765.90, target open...
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| Gold Seeker Closing Report: Gold and Silver Gain About 1.5% Posted: 07 Feb 2012 04:00 PM PST Gold climbed $9.47 to $1729.67 in Asia before it fell back to $1709.99 in London, but it then rose to as high as $1749.76 in New York and ended with a gain of 1.46%. Silver rose to $33.806 before it slipped back to $33.15, but it then surged to as high as $34.337 in New York and ended with a gain of 1.67%.
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| Backwardation in Silver Continues to Demonstrate Extreme Physical Tightness Posted: 07 Feb 2012 03:32 PM PST backwardation in silver continues to tell the story of EXTREME PHYSICAL TIGHTNESS, AND RISK OF COMEX DEFAULT/ IRRELEVANCE!
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| Bernanke Sends Gold & Oil Surging in War Against Middle Class Posted: 07 Feb 2012 03:09 PM PST  Today Michael Pento told King World News Fed Chairman Bernanke will continue crushing the middle class and throwing money out of helictopers all the way until "doomdsday." Pento, who founded Pento Portfolio Strategies, also noted the price of gasollne has soared 30% in the last 24 months alone. Pento believes that owners of gold can count on Bernanke's policies continuing to push gold prices higher. Here is what Pento had to say about the situation: "Oil and gold prices were both lower before the Counterfeiter-in-Chief read his prepared testimony before the Senate Budget Committee this morning. Mr. Bernanke reiterated his view that interest rates would remain near zero until the end of 2014, or until Jupiter aligns with Mars, whichever comes last. This gave the commodity markets a boost sending gold prices surging nearly $25 an ounce and oil prices up $1.50 per barrel."
This posting includes an audio/video/photo media file: Download Now |
| Why Is Global Shipping Slowing Down So Dramatically? Posted: 07 Feb 2012 02:42 PM PST from The Economic Collapse Blog:
If the global economy is not heading for a recession, then why is global shipping slowing down so dramatically? Many economists believe that measures of global shipping such as the Baltic Dry Index are leading economic indicators. In other words, they change before the overall economic picture changes. For example, back in early 2008 the Baltic Dry Index began falling dramatically. There were those that warned that such a rapid decline in the Baltic Dry Index meant that a significant recession was coming, and it turned out that they were right. Well, the Baltic Dry Index is falling very rapidly once again. In fact, on February 3rd the Baltic Dry Index reached a low that had not been seen since August 1986. Some economists say that there are unique reasons for this (there are too many ships, etc.), but when you add this to all of the other indicators that Europe is heading into a recession, a very frightening picture emerges. We appear to be staring a global economic slowdown right in the face, and we all need to start getting prepared for that. If you don't read about economics much, you might not know what the Baltic Dry Index actually is. Read More @ TheEconomicCollapseBlog.com
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| Gabelli Gold's Bryan expects another leg higher in King World News interview Posted: 07 Feb 2012 02:31 PM PST 10:30p ET Tuesday, February 7, 2012 Dear Friend of GATA and Gold: Gabelli Gold Fund manager Caesar Bryan tells King World News tonight that the physical gold market is strong even as the paper gold market is weak. "I think this is the quiet time before more central bank action," Bryan says. "We are in the eye of the storm and the storm is still raging. Gold has broken out of the downtrend and we expect money printing to light the fire of the next leg higher in gold." An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/2/7_Cae... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix Receives Inferred Gold Resource Estimate Company Press Release Golden Phoenix Minerals Inc. (OTC: GPXM) reports that on behalf of Golden Phoenix Panama S.A., the joint venture entity that owns and operates the Santa Rosa gold mine in Panama, it has received from SRK Consulting (U.S.) an initial resource estimate for Mina Santa Rosa. The Santa Rosa project is a volcanic-hosted epithermal gold-silver deposit previously operated as an open pit-heap leach operation. Production ceased in 1999 in part because of low gold prices. SRK Consulting reports an in-situ inferred resource at the former Santa Rosa and ADLM pits totaling 23.1 million metric tonnes at 0.90 grams/tonne gold, for a contained 669,000 ounces of gold at a 0.30 g/t gold cutoff. The resource also contains an average grade of 2.87 g/t silver for a contained 2.1 million ounces of silver. John Bolanos, Golden Phoenix's vice president of exploration, remarks: "In addition to SRK's inferred resource estimate of 669,000 contained ounces of For the company's full statement, including a table detailing the resources at Santa Rose, please visit: http://goldenphoenix.us/press-release/golden-phoenix-receives-initial-ni... Join GATA here: California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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 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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| Chairsatan Isn't Worried About Inflation - Should You Be? Posted: 07 Feb 2012 02:23 PM PST If you listened to Ben Bernanke's testimony between last week and this week, you were told repeatedly that he is not worried about inflation. Here are some charts that his analysts must have missed - Perhaps they're spending their time hanging out with the SEC boys surfing the web, but either way they should probably bring these to Ben's attention sooner rather than later.
Not Money's Reaction to Ben Today
Not Money's Performance Since Bernanke Began In 2006
EUR/USD Since Bernanke Began In 2006
Oil's Performance - The Most Stealth Tax of All... "Transitory" of Course
And Finally, M2 -- But Don't Worry, They Have Mechanisms In Place To Pull This Back (wink)
On second thought, I think Ben is right - no inflation is around the corner. Sleep well America.
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| Jim Rickards: Iran, The Dollar And Financial Warfare Posted: 07 Feb 2012 02:18 PM PST China, India and Iran take steps, however fitfully, to exit the dollar system once and for all.
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| Guest Post: The Fed Resumes Printing Posted: 07 Feb 2012 02:08 PM PST Submitted by Bud Conrad of Casey Research The Fed Resumes Printing The Federal Reserve recently announced important policy changes after its Federal Open Market Committee (FOMC) meeting. Here are the three most important takeaways, in its own words:
Immediate Reactions The first item is the most important as it was not expected – and it had an immediate effect on markets. As seen in the chart below, gold spiked higher on the surprise news of extending the zero-rate policy through 2014.
The news prompted a similar jump in silver services:
Keeping rates low requires the Fed to print new money to buy Treasuries, so the dollar weakened against the euro, although the reaction wasn't as big as in those in the gold and silver markets. This is partially due to the fact that the ECB is on its own campaign of printing money.
The promise to keep short-term rates low for a longer period also caused longer-term rates to fall slightly, as seen in the 10-year Treasury rate chart below, which fell from about 2.05% to 1.95 %, a relatively modest decline.
What Does This Say about the Fed's Policy? The most important action of the three was to extend the zero Fed funds rate to the end of 2014. This is a form of easing that could affect more rates than just short-term rates. Furthermore, there is a debate as to whether the action was the result of the Fed's concern about the economy slipping back into recession. Or, this could also be a bullish sign for the economy and stock market, as the guaranteed low rates could increase investment to improve our economy. Zero rates drive investors to take on risks – such as buying stocks – to gain higher returns. As a result, this induces more investment toward riskier parts of the market, which might otherwise be underfunded. Though the Fed aims to stimulate the economy, we're more likely to see a slip back into recession rather than see an effective Fed stimulus improving the economy. The press conference suggested that quantitative easing (QE) remains on the table. As a result, new targeted asset purchases by the Fed are likely in our future. These additional purchases with newly printed money could become inflationary. That is why gold shot higher and the dollar weakened in the short term. Both the Fed and the ECB have decidedly less-hawkish members and leadership than just last year. Both have now moved toward more money printing to keep rates low. The chart of central bank balance sheet as a ratio to GDP shows that the central banks of the world are clearly "printing":
(Click on image to enlarge) Longer-Term Implications The problem with printing money and promising to do so for years ahead of time is that the negative consequences of inflation only happen after a delay. As a result, it's difficult to know if a policy has gone too far until years down the road at times. Unfortunately, if confidence in the dollar is lost, the consequences cannot be easily reversed. One problem for the Fed itself is that it holds long-term securities that will lose value if rates rise. The federal government faces an even more serious problem when interest rates rise, as higher rates on its debt mean greater interest payments to service. Due to this federal-government debt burden, the Fed has an incentive to keep rates low, even if the long-term result is higher inflation. However, for now the Fed's statement suggests it sees inflation as "subdued," so it's putting those concerns aside for now. Along with the promise of low rates, the Fed for the first time gave an inflation target of 2%, as measured by Personal Consumption Expenditures. The actual and target inflation show that the Fed is currently not under major pressure from missing its target… not yet.
(Click on image to enlarge) The Fed has not even tried to set a target for the unemployment rate, which is only expected to edge below 8% by 2013. The Fed says that that the longer-run unemployment range is 5% to 6%. The big difference from the current level of 8.5% indicates that the Fed faces a greater challenge with unemployment than inflation now.
(Click on image to enlarge) My conclusion from the Fed's actions is that it doesn't care as much about its inflation target as it does about improving the unemployment rate. Thus, it will err on the side of letting inflation rise, if it would improve unemployment. But holding rates too low too long fueled the housing bubble. Repeating the same game will have consequences of malinvestment in the form of new bubbles in the economy. The Fed hopes to restore employment before the negative consequences of loose monetary policy show up. The Fed provided the accompanying chart of the Fed funds rates expected by the seventeen members of the FOMC. Each dot indicates the value (rounded to the nearest quarter-percent) of an individual participant's judgment of the appropriate level of the target Federal funds rate at the end of the specified calendar year. Over the long run, the Fed expects the funds rate to rise to around 4.25%. Eleven of the members indicate that the rate will rise before 2015. Only six expect the rate to stay close to zero through 2014.
The above chart should not be taken very seriously, as Fed predictions have been notoriously inaccurate. Furthermore, it's likely that rates will rise before 2014 as a result of market forces pushing them upward due to mistrust of the currency – measured by rising gold and commodity prices. The Federal Reserve balance sheet expanded dramatically as the credit crisis became acute in 2008. The Policy Tools (shown below in black) grew by $2 trillion with the QE1 purchase of mortgage-backed securities and the QE2 purchase of long-term Treasuries. This was an unprecedented effort to support those markets, provide liquidity, and drive rates down to zero. A simple extrapolation of similar expansion policies to the end of 2014 suggests that the Fed may require an additional $2 trillion to extend its goals. The problem is that such action would surely weaken the dollar and drive gold much higher. If confidence is lost, rates could rise even as the Fed continues to print and buy securities. The Fed says that it will change its policy if conditions warrant. I think they will be forced to stop this policy well before 2014 is over. Nonetheless, in the meantime, they will plant the seeds of rising prices with ultralow rates.
(Click on image to enlarge) The gold price is driven by Fed policies and its bias toward printing money rather than defending the dollar's purchasing power. This Fed bias was again reconfirmed by this announcement. With all the Fed's renewed vigor toward keeping rates low longer, we can once again reconfirm the ongoing downward slide for the dollar. As a result, gold remains the best investment against the damaging government deficits and central bank policies around the world.
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| Eurasian Minerals and Bullion Monarch Mining Enter Into Merger Agreement Posted: 07 Feb 2012 02:00 PM PST Eurasian Minerals Inc. (TSX-V: EMX; NYSE Amex: EMXX) ("EMX") and Bullion Monarch Mining, Inc. (OTCQB: BULM; FRA: BMJ) ("BULM") are pleased to announce that they have entered into a definitive agreement (the "Agreement") with respect to a proposed merger of BULM with a wholly-owned subsidiary of EMX (the "Transaction").
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| Webster Tarpley in Iran: "US wages wars to avoid dollar collapse" Posted: 07 Feb 2012 01:57 PM PST
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| Goldcorp, gold council chairman Telfer implicated in insider scheme; he denies it Posted: 07 Feb 2012 01:44 PM PST Ian Telfer helped 'Facilitate' Secret Trades in Insider Tipping By Drew Hasselback http://business.financialpost.com/2012/02/07/ian-telfer-helped-facilitat... Ian Telfer -- one of Canada's most prominent mining executives and chairman of Goldcorp Inc. [and chairman of the World Gold Council (http://www.gold.org/about_us/who_we_are/the_team/leadership_team/)] -- helped an old friend, the executive assistant of GMP Securities LP's chairman, disguise an illegal insider tipping and trading scheme, the Ontario Securities Commission claims in a statement of allegations released Tuesday. The OSC alleges that in at least two cases Mr. Telfer advised Eda Marie Agueci to communicate using her BlackBerry's PIN-based messaging service to keep her activities secret from GMP. The securities regulator also alleges Mr. Telfer helped Ms. Agueci facilitate a secret trade in a company that eventually became Gold Wheaton Inc. "His conduct was contrary to the public interest," the OSC alleges. The allegations against Mr. Telfer are part of a larger OSC case that names Ms. Agueci, who worked at GMP Securities for about 20 years, as the "central figure" in a scheme in which she is alleged to have used her position to access non-public information on pending deals, then pass this information to eight other individuals. ... Dispatch continues below ... 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 None of the allegations involves shares of Goldcorp, which, with a $39-billion market capitalization, is Canada's ninth most valuable company. The OSC says Mr. Telfer wasn't a participant in the alleged insider trading and tipping scheme. "I'm very surprised at how the OSC is reacting to this," Mr. Telfer said in an interview Tuesday. The OSC claims that Mr. Telfer gave Ms. Agueci a chance to buy 500,000 shares in 222 Pizza Express. The OSC says Mr. Telfer and Ms. Agueci agreed that the shares should not be purchased in her name to keep the transaction secret. They therefore agreed to conduct the trade in the name of her brother-in-law, Santo Iacono. "That's something that gets done all the time. There's nothing wrong with it," Mr. Telfer said in the interview. "That was it as far as I was concerned. What went on after that or anything else, I was totally unaware of and had nothing to do with." The broader illegal insider tipping-trading scheme allegedly took place between April 2007 and February 2008, and generated $962,000 in profits for the participants from trades in eight mining companies. All the allegations have yet to be proven before an OSC hearing. The OSC has set March 21 as a date for a hearing in the matter. In addition to Ms. Agueci and Mr. Iacono, the OSC has named Dennis Wing, Josephine Raponi, Kimberley Stephany, Henry Fiorillo, Joseph Fiorini, John Serpa, and Jacob Gornitzki as participants in the scheme. All were either friends or acquaintances of Ms. Agueci. The corporate respondent is Pollen Services Ltd., which is a company based in British Virgin Islands that holds the assets of Mr. Wing's offshore family trust, The Honey Trust. Ms. Agueci worked in the GMP's mining group, where she regularly came in contact with details of proposed mining transactions. "She had full access to the email communications of the chairman of GMP and occasional access to the emails of other investment bankers in the mining group at GMP," the OSC alleges. The OSC alleges she conducted her trades using two secret accounts. The regulator also alleges she communicated non-public details to others using code names. She instructed others not to include any stock names or symbols in any emails they sent to her GMP email address. The tipping and insider trading allegations involve shares of NU Energy Uranium Corp., Energy Metals Corp., Yamana Gold Inc., Northern Orion Resources Inc., Meridian Gold Inc., HudBay Minerals Inc., Coalcorp Mining Inc., and 222 Pizza Express Corp. 222 Pizza was eventually restructured and became Gold Wheaton Gold Corp., a gold royalty firm that went public in 2008 with the help of Mr. Telfer. It was acquired by rival Franco-Nevada Corp. last year for $830-million. In a statement sent by email late Tuesday, GMP noted that the OSC allegations do not allege any wrongdoing on the part of the investment bank or any other employee besides Ms. Agueci. "GMP takes these allegations very seriously and will cooperate fully with the investigation. Ms. Agueci has been suspended pending the outcome of this matter." * * * Statement on behalf of Ian Telfer http://www.newswire.ca/en/story/917647/ian-telfer-responds-to-ontario-se... TORONTO -- Ian Telfer categorically denied the allegations made by the Ontario Securities Commission in its statement of allegations released today. "I believe the allegations by the OSC that I have acted contrary to the public interest to be completely without merit", said Mr. Telfer. "The allegation is that I 'acted contrary to the public interest' by agreeing to include a family member of a business associate in a private financing. There is no allegation that I breached any securities law or that I was involved in any insider trading scheme. As the OSC stated, I did not participate in the alleged scheme. "I am very disappointed that the OSC is trying to stretch its jurisdiction to suggest that there is something wrong with agreeing to include someone's relative in a private placement. "I do not believe that there is anything wrong with my conduct. I do not believe anyone should be concerned with my conduct. It is an everyday occurrence in the Canadian business world. If the OSC is trying to send a message that it does not like this common conduct, I do not believe the OSC should be doing it this way." Joseph Groia, of Groia & Company, counsel to Mr. Telfer, stated that "the Task Force to Modernize Securities Legislation in Canada recommended in 2006 that 'the 'contrary to the public interest' regulatory tool be used sparingly and only with the greatest of care if the behavior which is criticized has not been publicly identified in advance as unacceptable.' We very much regret that it would appear that the OSC was not mindful of those comments." "I am prepared to vigorously defend these allegations and look forward to being fully exonerated", said Mr. Telfer. For further information: Joseph Groia, Groia & Co., 416-203-4472 Join GATA here: California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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 Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Prophecy Coal (TSX: PCY) Wins Positive Feasibility Study Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Coal Corp. (TSX: PCY, OTCQX: PRPCF, Frankfurt: 1P2) has received a positive feasibility study for the company's 600-megawatt Chandgana Mine-Mouth Power Project in central Mongolia. The report was independently prepared by Ralf Thomsen, project manager at Steag, a German firm specializing in the planning, financing, construction, and operation of highly efficient thermal power plants for fossil fuels. The study covers technical specifications, deployment, and financial analysis of a 4x150-mw thermal power plant to be built adjacent to Prophecy's Chandgana Tal coal deposit, which contains 140 million tonnes of measured coal. Last year the power plant received a construction license and the coal deposit received a mining license. Engineering, procurement, and construction management selection and project financing discussion have begun and are expected to be concluded this year. Construction is planned to start in April 2013, with the first 150-mw unit being commissioned in October 2015 and subsequent units to start in April 2016, October 2016, and April 2017. With proper maintenance the project will have 30 years of commercial operation. For the complete statement from the company, including maps and charts, please visit: http://www.prophecycoal.com/news_2011_jan17_prophecy_receives_power_plan...
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| Posted: 07 Feb 2012 12:23 PM PST UBS described the situation simply, "if investors needed a (further) reason why they should be long gold now, they got it yesterday …
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| Harvey Organ's Daily Gold & Silver Report Posted: 07 Feb 2012 12:12 PM PST France/Greek rescue Attempts/Bernanke speaks:Gold and Silver rises/Manufacturing Leaving Japan
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| Caesar Bryan - Strong Gold Buying from Asia on Any Weakness Posted: 07 Feb 2012 12:07 PM PST "Demand in the Far East is strong and gold is being accumulated by investors and central banks."
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| Posted: 07 Feb 2012 11:26 AM PST from CapitalAccount: Federal Reserve Chairman Ben Bernanke testified before the Senate today – last week he testified before the House – and the media wanted to hear if the "good" US jobs report, which came out since he last spoke, changes anything about monetary policy. The jobs report has been deemed "good" because the headline unemployment number went down a little to 8.3%. Bernanke actually said this understates the weakness of the labor market, but do these monthly numbers matter at all? People who crunch the numbers seem to say no. David Stockman, Ronald Reagan's former budget director in an email that's been made public wrote you basically can pick and choose what you want from the reports to support your thesis but, "In short, if you spend a little time with these numbers you will know that they are being made up." John Mauldin, financial expert was writing about something similar that these numbers are subject to large revisions up or down – so take them with a grain of salt. So if that's the case and the Bureau of Labor Statistics is the emperor wearing no clothes, coming out with these meaningless numbers each month, why are markets and the media glued to them? We will be speaking with Nomi Prins during the show, and will ask her what she things about this purported oddity of markets hanging on news that the may see as highly dubious. And speaking of news the markets and media hang on – Greek leaders are still in talks over a debt deal – and the markets are doing their usual finger-biting as they wait for some "resolution." The Greek government and its Troika "partners" did agree to some more cuts to public workers, but forget the market and look at the reaction on the streets of Greece. Scenes of protesters burning the German flag, chanting "out with the nazis." So how long will Greeks continue to bear the weight of austerity with no light at the end of the tunnel, and bear policies being pushed by people they don't know, working together with politicians they don't trust? Again, we will ask Nomi Prins what she thinks about this, and if she believes that these policies are there to help the people or to help the creditors, and by extension the banks. And in the US 40 states have signed onto a $25 billion dollar settlement with the five biggest banks guilty of foreclosure abuses such as 'robo signing' of documents — but who would this provide relief to, homeowners? Or big banks. We speak about all of this with Nomi Prins, author of "Black Tuesday" and a former managing director of Goldman Sachs. Plus, is US President Barack Obama a hypocrite for backtracking on Super PAC money (now he wants it) and is the US exerting "extra–territoriality" with regulations on financial markets? With Demetri out sick, the Alyona Show's Alyona Minkovski joins Lauren and Shannon to give her two cents in Loose Change.
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| France/Greek Rescue Attempts / Bernanke Speaks, Gold and Silver Rise / Manufacturing Leaving Japan Posted: 07 Feb 2012 11:24 AM PST by Harvey Organ: Good evening Ladies and Gentlemen: The bankers decided in the wee hours of the morning that it was necessary to raid silver and gold However as soon as Bernanke spoke this morning, the metals skyrocketed when the world realized that we are going to have zero interest rates to infinity. Gold finished the comex session up 23.60 dollars to $1746.40 and silver rose by 45 cents to $34.17. Gold and silver equity shares languished with despair today as they refused to join into the fun. This is the bankers signal that another raid is imminent. Our crooks are at it again. Let us head over to the comex and assess trading and amounts of precious metals standing. Read More @ HarveyOrgan.Blogspot.com
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| Gold Price Has Been on a Short Term Correction for the Last Three Days but Wants to Climb Higher Posted: 07 Feb 2012 10:51 AM PST Gold Price Close Today : 1746.40 Change : 23.60 or 1.37% Silver Price Close Today : 3416.50 Change : 44.30 cents or 1.31% Gold Silver Ratio Today : 51.117 Change : 0.028 or 0.06% Silver Gold Ratio Today : 0.01956 Change : -0.000011 or -0.06% Platinum Price Close Today : 1650.30 Change : 28.80 or 1.78% Palladium Price Close Today : 707.45 Change : 2.45 or 0.35% S&P 500 : 1,347.29 Change : 2.96 or 0.22% Dow In GOLD$ : $152.56 Change : $ (1.55) or -1.01% Dow in GOLD oz : 7.380 Change : -0.075 or -1.01% Dow in SILVER oz : 377.25 Change : -3.66 or -0.96% Dow Industrial : 12,888.76 Change : 43.63 or 0.34% US Dollar Index : 78.52 Change : -0.553 or -0.70% The GOLD PRICE rolled back all its losses since last Friday, and banged on $1,750 resistance as well with a $1,749.71 high. Rose $23.60 to $1,746.40 on Comex. This is good and not so good. It leaves yesterday looking like a bottom at $1,710 (today's low), and a leap up off that bottom through two resistance levels. Think of it this way. The GOLD PRICE bottomed on 29 December at 1523.90 (intraday), and commenced an uptrend. If you draw an uptrend line from 29 December across the bottoms, you'll see that today's low merely touched the uptrend line, nothing more. Trend remains intact. More, gold made a new low for the move today, then closed higher than the day before -- first half of a key reversal. If gold closes higher tomorrow, it was a key reversal and gold has resumed climbing. All that also almost works for the SILVER PRICE, but not quite. Silver rose 44.3c today to shut the doors at Comex on 3416.5c. But silver did penetrate its uptrend line, by a little. Given that silver often does that, then refuses to follow through, we can chalk that up to silver's greater volatility. The SILVER PRICE has reached the threshold of its crucial 300 day moving average (3453c). Clear that hurdle, and silver will run for the finish line. Momentum already points up, with silver above its 50 and 20 DMAs. Turning all that the other way round, a failure at 3450c would hurt silver badly, and send it back toward 3100c to build a broader, firmer foundation. Once again, silver's line in the sand is 3300c. Last three days have been merely a very short-term correction for metals. Seems they want to climb higher. Don't get caught standing in their way. Y'all don't forget: A Greek Debt Deal is Near. With astonishing candor Fed Head Ben Bernancubus told the senate budget committee today that the much-touted 8.3% unemployment rate from January UNDERstates weakness in the US labor market. Something's up. Bernancubus is sounding almost rational -- it's a trick. Or he is sandbagging because he awaits even worse news still. Silver and gold found nothing but support in Bernancubus' remarks, as everything he said implied he will depreciate the dollar much more through inflation. At least, the US dollar index took it that way since it sank a chunky 55.3 basis points (0.71%) to 78.516. That's the bottom of the last 30 days' range. The fall through 78.50 will only confirm the down-ness of a trend already turned down, and 'twill accelerate it. Yeah, buddy! That Greek debt deal is just roaring down the tracks. The euro market thinks so, I reckon, because the euro rose today to 1.3258, up 0.97% and above 1.3200 resistance. Still, if I owned euros (and I don't, and won't, unless I have to travel there) and the deal did go through, I would sell them on the NEWS tomorrow that a deal has been struck. Forget not the proverb, "Buy the rumour, sell the news." Appears that part of what's been driving up the yen was money looking for a refuge for the euro, since the yen fell 0.31% today to 130.25c/Y100 (Y76.78/US$1). Yen pierced but did not close below its 20 DMA (130.16). The yen has a fine future at a lower level. STOCKS struggle yet with that 12,875 resistance. Dow gained 43.63 (0.34%) to 12,888.76 and the S&P500 rose 2.96 (0.22%) to 1,347.29 Are stocks topping or consolidating? Well, they feed off inflation and the Bernancubus today promised more of that -- although stocks feeding off inflation is like the eucalyptus-obligate koala bear eating chocolate cake and expecting to thrive. End thereof will be painful and messy, and fraught with indigestion and enthusiastic puking. If stocks penetrate that 12,875, say, by 2% (13,132.5) they will stretch their legs and run to the 2007 top. I don't expect that, but do expect their strength will wane and vanish by end of the first quarter, second at latest. The gold ARGENTINO was minted from 1881-1887 in 90% gold (same as the US standard) at a fine gold content of 0.2334 troy ounce. These are simply bullion coins with some circulation, for $417.80 each. With spot gold With spot gold at $1,746.40, that's a tee-tiny 2.5% premium over gold content. They don't carry a wide buy/sell spread, since wholesale buy for them today is 98.9% of melt. I will sell minimum lots of Ten (10) coins for $4,178.00 + 25 shipping per lot (total $4,203.00). I have only One hundred (100) coins, so no re-orders at this price. The gold URUGUAYAN 5 PESOS was minted in 1930 at 91.7% pure gold containing 0.2501 troy ounce of fine gold. Minimum lot is Five (5) coins at $447.70 each (2.5% premium), or $2,238.50 plus $25 shipping per lot total $2,263.50/lot). I have only Twenty-five (25) coins, so no re-orders at this price. I also have One (1) only lot of One hundred Two (102) U.S. 1921 MORGAN SILVER DOLLARS, some About Uncirculated (AU) but mostly Uncirculated (BU), $35.55 each or $3,626.10 plus $25 shipping ($3,651.10 total). Absolutely no re-orders at this price. Special Conditions: First come, first served, and no re-orders at these prices. I will enter orders based on the time I receive your e-mail. We will not take orders for less than the minimums shown above. All sales on a strict "no-nag" basis. We will ship as soon as your check clears, but we allow Two weeks (14 days) for your check to clear. Calls looking for your order two days after we receive your check will be politely and patiently rebuffed. If you want faster shipping, please send a wire. Spot gold basis for all prices above is $1,746.40 ORDERING INSTRUCTIONS: 1. You may order by e-mail only to Your email must include your complete name, address, and phone number. We cannot ship to you without your address. Sorry, we cannot ship outside the United States or to Tennessee. Repeat, you must include your complete name, address, and phone number. Our clairvoyant quit without warning last week and I stumbled and dropped my crystal ball, smashing it to pieces, so we can no longer read your mind. 2. Orders are on a first-come, first-served basis until supply is exhausted. 3. "First come, first-served" means that we will enter the orders in the order that we receive them by e-mail. 4. If your order is filled, we will e-mail you a confirmation. If you do not receive a confirmation, your order was not filled. 5. You will need to send payment by personal check or bank wire (either one is fine) within 48 hours. It just needs to be in the mail, not in our hands, in 48 hours. 6. We allow fourteen (14) days for personal checks to clear before we ship. If your hurry is greater than that, you can send a bank wire. Once we ship, the post office takes four to fourteen days to get the registered mail package to you. All in all, you'll see your order in about one month if you send a check. 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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| Ron Paul & Gold As A Competing Currency Posted: 07 Feb 2012 10:41 AM PST Mike Maloney is asked if the emergence of the Tea Party & internet consciousness around the world will help avoid future wars & or political policy blunders.
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| Believe In A Return To The Gold Standard? You Are Now Officially An Extremist According To The FBI Posted: 07 Feb 2012 10:04 AM PST Just when we thought the US could not sink any further in its usurpation of civil rights,
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| Greek Economy Implodes: Budget Revenues Tumble 7% In January On Expectation Of 9% Rise Posted: 07 Feb 2012 09:39 AM PST While hardly surprising to anyone who actually paid attention over the past two months to events in Greece (instead of just reacting to headlines) where among those on strike were the very tax collectors tasked with "fixing the problem", we now get a first glimpse of the sheer collapse in the Greek economy, which also confirms why Germany is now dying for Greece to pull its own Eurozone plug (predicated by a naive belief that Greece is firewalled as was discussed before. As a reminder Hank Paulson thought that Lehman, too, was firewalled on September 15, 2008). And what a collapse it is: according to just released data from Kathimerini, budget revenues lagged projections by €1 billion in the very first month of the year. "Revenues posted a 7 percent decline compared with January 2011, while the target that had been set in the budget provided for an 8.9 percent annual increase. Worse still, value-added tax receipts posted an 18.7 percent decrease last month from January 2011 as the economy continues to tread the path of recession: VAT receipts only amounted to 1.85 billion euros in January compared to 2.29 billion in the same month last year." This it the point where any referee would throw in the towel. But no: for Europe's bankers there apparently are still some leftover organs in the corpse worth harvesting. Unfortunately, at this point we fail to see how this setup ends with anything but civil war, as the April elections will merely once again reinstate the existing bloodsucking regime. We hope we are wrong.
And this is the background against which the Troika wants Greece to cut another 150,000 people, and to cut minimum wage even more? Does nobody realize that at this point the entire Greek economy has frozen to a dead halt, and has joined only its utterly insolvent banking system in the dumpster? How much longer will doctors fret around the patient before they finally have the decency to admit the patient has long since passed away?
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| Posted: 07 Feb 2012 09:34 AM PST STOCK MARKET REPORT February 07, 2012 "Americans look for love in places it never exists, and in forms it never takes. Perhaps this has something to do with the end of the Frontier..." - Kurt Vonnegut, Jr. Gold is the Odysseus of the markets, destined to wonder the hinterland of the financial world for years without achieving the deserved safe haven status. Like Odysseus gold will eventually arrive and the general population will embrace it for what it is, the one and only store of wealth that exists today. Loathed and assailed by the mainstream press, gold is deliberately kept hidden in the financial shadows by those that continue to shovel out paper "assets" like so much manure. Right now the Dow is all the rage with the press as they preach the gospel of the US stock market as a port in the storm. They do so with an old time religious fervor that would make a snake oil salesman blush. The object of the message is to pry that last penny from the ...
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| SEC Money Market to Throttle Withdrawals and Break a Buck Posted: 07 Feb 2012 08:49 AM PST This has the makings of a modern day run on the bank.. This is a problem with all brokerage companies pegging funds to a dollar.
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| Equities And EURUSD Outperform As Divergences Increase Posted: 07 Feb 2012 08:42 AM PST Somehow, once again, we managed to rally EURUSD (to 2 month highs) on the back of Greek deal hopes (even as Merkel stomped her feet, Hollande flexed his muscles, and Dallara/Venizelos had nothing to report) which maintained a modicum of support for equity markets (which also got a little late day push from another record-breaking Consumer-Credit expansion) as cash S&P made it to early July 2011 levels. Unfortunately, with Utilities leading S&P sectors, credit diverging wider in investment grade and high-yield, Copper underperforming (post overnight China reality checks), WTI's exuberance (relative to Brent at least), and implied correlation diverging bearishly from VIX, we can't say this was a wholly supported rally. Broad risk-asset proxy (CONTEXT) did stay in sync with ES (the e-mini S&P 500 futures contract) after the European close as Treasuries held up near the day's high yields and FX carry stabilized. Financials lagged with the majors actually underperforming for a change as we note the late-day surge in ES to new highs saw significant average trade size suggesting more professionals covering longs into strength rather than adding at the top. Volume was above yesterday's dismal performance but remained below the year's average so far. Credit and equity vol are back in line and credit has now been flat and underperforming for the last three days (even as HY issuance has been high).
VIX futures (red) dropped with the S&P as they tend to do but the index's implied correlation (green - based on the relative demand for macro index protection over the underlying demand for protection of the underlying portfolio names) suggested more interest in protecting assets up here than adding risk.
We also note (above) that implied skewness (the distributional expectation based on options prices) has normalized somewhat (short-term concerns are almost at their lows while longer-term options still see some risk) while implied kurtosis (below) remains elevated (both short- and longer-term options show heightened concerns at tail risk - though not explicitly a bad/downside tail).
This expectation of an extreme move that remains embedded is less directly relevant than the drop in implied skewness (or bid for downside protection) - which is a little different to options skew for clarity - and suggests there is little more ammunition to drive a rally (compression in vols) as we have come in so far - but of course central bank liquidity is the all-seeing compressor of risk and inflator of assets.
Commodities did trade notably higher off overnight lows (USD highs). Gold and Silver outperformed the USD's weakness and Oil and Silver had similar magnitude shifts intraday of around 3% from low to high as WTI tried to get back to $99.
Equities (blue) (and HYG (green) which managed to recover from its underperformance early on) handily outperformed the broad IG and HY credit indices (as HY (light red) clearly underperformed). This is the second day in a row of HY underperformance and is worth paying attention to as HY was the 'cheaper' asset all the way up until last week (based on our RV models) and has stalled here. HY has seen major issuance this week which is maybe not totally surprising after such a record-breaking January has brough momentum junkies back into the market. The only two better Januaries than 2012 saw major drops in the following February.
Perhaps this stall in vol compression and credit outperformance is due to what Credit Suisse notes as credit and equity vol markets have converged back in line here from a point where credit was notably cheap. Certainly we have seen a lot of discussion of these arb trades and this will slow risk appetite a little, now that it has compressed, even as momentum remains (though admittedly has been flat for almost 3 days now in credit).
FX markets were dominated early by AUD rallying on RBA news which stymied a modest EUR sell-off into a story-of-the-day decent EUR rally which triggered stops and pushed EURUSD back up over 1.3250 back to nearly 2 month highs and the closest to EUR-USD swap-spread model expectation in almost three months (seen above). Treasuries gave up early gains to end higher in yield on the day and week. The long-bond interestingly outperformed and is only 2.8bps higher on the week while 7s and 10s are more like 5-6bps higher in yield. A 10bps range in 30Y today from low yield to high yield as EUR rallied and stocks rallied didn't seem to extravagant and the modest rate rally into the close suggested this was not risk-off sentiment rotating into stocks by any chance. All-in-all, more canaries, more momentum, more weak-USD strong-gold driven stock buying, more rumors of nothing at all in Europe that push stocks inexorably higher. Perhaps the most important of all the divergences we discuss above is the fact that the major financials saw CDS widen modestly and equities selloff a decent amount (of course relative to their YTD move, hardly at all) into the close. Charts: Bloomberg and Capital Context
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| Posted: 07 Feb 2012 08:40 AM PST February 7, 2012 [LIST] [*]Syrian uprising: A proxy war between the U.S. and Iran... or the U.S. and Russia? [*]Who's really suffering from economic sanctions against Iran... and why it creates a window of danger for the next 3½ weeks [*]More reasons the unemployment numbers don't add up... a "second Great Depression"... and the "screwed generation" coming of age [*]Byron King on two factors propelling gold... and Frank Holmes with two more [*]Statins and CRP: Reader asks what's the big deal with Patrick Cox's favorite "nutraceutical" [/LIST] For a Middle Eastern country that doesn't sit on much oil, Syria is certainly getting a lot of attention from the U.S. government these days. "[W]e have to redouble our efforts outside of the United Nations," says Secretary of State Hillary Clinton, "with those allies and partners who support the Syrian people's right to have a better future." Hmmm... Covert action for regime change, now that China and Russia have nixed ...
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| Posted: 07 Feb 2012 08:24 AM PST Dear CIGAs, Click the image below to open the chart in PDF format.
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| The Fed is Engineering Obama’s Re-Election Campaign Posted: 07 Feb 2012 08:17 AM PST Compared to the price of Gold, the Dow Jones Industrials is currently trading at its lowest level since 1992, - a 20-year low.
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