Gold World News Flash |
- Gold at Risk of Sharp Decline
- Manufacturing PMI Data Reflects Stronger Global Outlook, Supportive of Silver Industrial Demand
- Precious Metals Benefit From Continued Dollar Weakness
- Gold Seeker Closing Report: Gold and Silver End Slightly Lower
- Robert Prechter on How Social Mood Drives Markets, and Movies
- A Very Different Take On The “Iran Barters Gold For Food” Story
- The Silver Bullet and the Silver Shield – 12. The Three Big Charts For Silver
- Rant Topic: Canadian Bullion Storage IRA Update
- Understanding the Uptrend in Wealth Cycles
- Infographic: Presenting A World Covered In (Hundred Dollar Bill) Debt
- A 'controlled retreat' by central banks in the gold market isn't nearly enough
- A Very Different Take On The "Iran Barters Gold For Food" Story
- Banks Get Off Easy on Foreclosure Fraud
- Harvey Organ's Daily Gold & Silver Report
- Davies sees new interest in gold, fair value at $4,000
- Jim Sinclair: Gold’s Role During Periods Of Monetary Stress (A Review)
- Ben Davies - Fair Value on Gold Today is Over $4,000
- The rush to commodities, Silver/Gold...David Morgan on Fox Business
- The Gold Price Rose $9.70 to $1,739 Gold Must Trade Through $1,750 Tomorrow and Close Above that Mark
- Greece / Iran and Indian Rice / Banks Get Big Break With a $26 Billion Foreclosure Settlement
- CME Cuts Gold, Silver, Platinum And Copper Margins
- Russia Behind Bulgarian Anti-Fracking Protests?
- Pimco Borrows A Record $88 Billion To Bet On Fed's Upcoming MBS Monetization
- Gold Continuing to Fail at $1750
- Of Fat Tails and Fashionable Gloom and Doom
- Warren Buffett: Why stocks beat gold and bonds
- TF Metals Report: Ramblings - Let's Talk Dollar, Gold, Silver, Crude & Freedom
- Anarchists Unite Behind Gold and Silver-Jeff Berwick and Gary Gibson–02-09-2012
| Posted: 09 Feb 2012 06:17 PM PST courtesy of DailyFX.com February 09, 2012 03:39 PM 60 Minute Bars Prepared by Jamie Saettele, CMT The decline from the 2/3 high and subsequent recovery may compose waves 1 and 2 of a larger bear leg. 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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| Manufacturing PMI Data Reflects Stronger Global Outlook, Supportive of Silver Industrial Demand Posted: 09 Feb 2012 04:23 PM PST According to a Markit Economics survey of 30 nations' purchasing managers, the world's leading manufacturing nations began the year considerably better than expected. The Markit survey showed its Global Manufacturing Purchasing Manager's Index had risen from 50.2 in December to 51.2 in January, with a number over 50 indicating expansion. This number and other recent data from several large manufacturing countries support a more favorable outlook for the global economy. In addition, as a result of silver's dual role as both a precious and industrial metal, an expansion in anticipated manufacturing activity tends to boost silver prices since it often is a leading indicator of increased industrial demand. Furthermore, many investors were concerned that the Greek-led sovereign debt crisis would have a depressive effect on the outlook of purchasing managers. Nevertheless, this does not seem to be the case yet, because as Greece approaches default, surveys of purchasing ma...
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| Precious Metals Benefit From Continued Dollar Weakness Posted: 09 Feb 2012 04:03 PM PST The dramatic rise in the price of precious metals — especially silver — in January was due in some part to the weakness in the U.S. Dollar among, with both gold and silver rising from their near term lows seen at the end of December 2011. The inverse relationship in the valuation of the U.S. Dollar versus precious metals has continued to increase, with the U.S. Dollar approaching all-time lows against most major currencies, except against the Euro and the Pound Sterling. Fed Moves Weaken Dollar Further Also weakening the Greenback recently was the decision by the Federal Reserve's monetary policymakers on the Federal Open Market Committee or FOMC to extend its expectations for currently low rates out to 2014. Another factor was the U.S. central bank's historical announcement of a relatively low inflation target of 2%. Increased speculation of additional Fed quantitative easing measures also hit the Dollar's prospects in recent trading. Dollar Historically Weak R...
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| Gold Seeker Closing Report: Gold and Silver End Slightly Lower Posted: 09 Feb 2012 04:00 PM PST Gold fell a few dollars to $1728.77 in London before it shot to as high as $1752.80 by about 9:30AM EST, but it then fell back off for most of the rest of trade and ended with a loss of 0.27%. Silver surged to as high as $34.42 before it also fell back off in New York and ended with a loss of 0.38%.
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| Robert Prechter on How Social Mood Drives Markets, and Movies Posted: 09 Feb 2012 03:38 PM PST from CapitalAccount: Italian Prime Minister — Technocrat — Mario Monti met in Washington today with President Barack Obama. Meanwhile, Greek leaders scraped together a deal on austerity. They may face the same problem again though three months from now. Fractures in the EU continue to appear as leaders try to keep it together. But, does any of this matter, or does the threat of European disintegration have to do with something else entirely? And is the same thing that moves markets what moves women's hemline? Is the same thing driving the Dow what drives a hollywood producer to make a movie like "The Road," or "Texas Chainsaw Massacre?" And forget jobs or the eurozone crisis, is the Dow really the best indicator of who will be US president in 2012, or any year for that matter? We'll hear from Robert Prechter, founder and president of Elliot Wave International. And states and federal official have finally reached that foreclosure deal. A 25 billion dollar settlement with the five biggest banks guilty of abusive practices like robo-signing. It's billed as helping homeowners, but Nomi Prins says this is yet another example of only a good deal for the banks. You'll hear why.
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| A Very Different Take On The “Iran Barters Gold For Food” Story Posted: 09 Feb 2012 03:36 PM PST from ZeroHedge:
Original Source @ ZeroHedge.com
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| The Silver Bullet and the Silver Shield – 12. The Three Big Charts For Silver Posted: 09 Feb 2012 03:32 PM PST |
| Rant Topic: Canadian Bullion Storage IRA Update Posted: 09 Feb 2012 03:29 PM PST by Andrew Hoffman, MilesFranklin.com:
I receive many messages from readers, which each day I dutifully present in the Mailbox at the bottom of my RANTS. For those of you that don't read to the end, or realize the Mailbox exists, I suggest taking a look at it every so often. Many of the messages pose thoughtful questions, or are simply uplifting, a medium to bond in our alliance against the fiat currency cancer destroying the global economy. Perhaps my message is getting out to just 2% of the population, but many of those 2% are here, allying with Miles Franklin in its quest to convert as many as possible to the wisdom of REAL MONEY. Of the questions I receive, by far the most common specific topic regards the potential for confiscation of government-sponsored retirement plans such as 401k, IRA, Roth, 403b, and pension programs. I have discussed at length the myths and cognitive bias that make it difficult for most to comprehend cashing out such plans early, the largest being the popular delusion that IRAs are after-tax funds when in fact they are pre-tax funds. Irrespective, many people are uncomfortable with early withdrawals, which is why Miles Franklin has always offered IRA plans capable of holding PHYSICAL Precious Metals under the custodianship of our IRA Administrator partners and our storage Depository partners.
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| Understanding the Uptrend in Wealth Cycles Posted: 09 Feb 2012 03:25 PM PST from WealthCycles:
Presently it appears that Chanos is winning the long-term growth bet. The Shanghai composite has dropped 50% from its 2008 high. It is important to know that Chanos runs a $6 billion dollar short fund, which successfully shorted Enron. He states that his fund starts with a top-down approach. He starts with a macro analysis and drills down into individual assets. Here is his slightly sarcastic take on our present state: "[Stock promoters] find a different investment hype, a story, to get people excited. In the 1990s, it was the Internet, and now it's China. Unbridled growth."
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| Infographic: Presenting A World Covered In (Hundred Dollar Bill) Debt Posted: 09 Feb 2012 02:29 PM PST Our friends at Demonocracy have once again surpassed themselves, and have followed up the infographic showing the truckloads of cash that are needed to rescue the insolvent PIIGS, with this masterpiece which, while making the naive assumption that debt is represented by physical paper (when it is nothing but a bunch of electronic ones and zeros stored in various computers around the world), presents in gloriously visual terms precisely what the literal debt burden of the world's would look like expressed in piles of one hundred dollar bills. The result is quite stunning...
Source: Demonocracy.info
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| A 'controlled retreat' by central banks in the gold market isn't nearly enough Posted: 09 Feb 2012 02:10 PM PST 7:18p PT Thursday, February 9, 2012 Dear Friend of GATA and Gold: In his commentary this week, "Gold Cars and Gas Stations," posted at GoldSeek, 24hGold, and 321Gold -- http://news.goldseek.com/GoldSeek/1328632354.php http://www.24hgold.com/english/news-gold-silver-gold-cars-and-gas-statio... http://www.321gold.com/editorials/thomson_s/thomson_s_020712.html -- financial letter writer Stewart Thompson remarks that "banks likely are manipulating gold, and manipulating it higher, with central bank buy programs" and that gold investors should take a break along with the gold price rather than keep "screaming that you're being manipulated to death." That Western central banks may be working the gold price higher is not a new idea to readers of these dispatches and followers of market analysts like GATA Chairman Bill Murphy and GATA consultant James Turk, founder of GoldMoney. ... 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... Our camp has often asserted that the Western central banks long have been undertaking a "controlled retreat" with gold, using derivatives and leases (not so much sales anymore) to keep the price from exploding after years of essentially short selling the metal or backstopping such short selling by bullion banks. Federal Reserve Chairman Alan Greenspan confirmed as much in his testimony to Congress in July 1998 when he said that "central banks stand ready to lease gold in increasing quantities should the price rise": http://www.federalreserve.gov/boarddocs/testimony/1998/19980724.htm And GATA long has been calling attention to the scholarly study written in 2006 by the Scottish economist Peter Millar, who showed how central banks use the upward revaluation of gold to avert catastrophic debt deflation at the end of an economic cycle: From time to time GATA also has called attention to Thompson's own speculation that central banks want the gold price higher now as a mechanism of economic stimulus and devaluation: But GATA's complaint about gold market manipulation and price suppression is no less valid for all this. For while some central banks now may want to devalue their currencies, they want to do it on their own schedule and with their favored bullion bank agents preferentially positioned to profit from it rather than leave devaluation to free markets. Central banks certainly don't want a true free-market price of gold discovered any time soon, if ever. For such a gold price would prove terribly inconvenient to central banks and their bullion bank agents, as it might result from wider realization that most of what the world imagines to be its gold supply doesn't exist -- that, as CPM Group director Jeff Christian acknowledged at the hearing of the U.S. Commodity Futures Trading Commission on March 25, 2010, as he had acknowledged in a report written a decade earlier, there is no metal at all behind most gold contracts and depository receipts: Free markets in the monetary metals, markets that discipline governments and their currencies and protect individuals against expropriation, markets that enforce limited government, are GATA's objective, and we're not going to be mollified by 10 or 20 percent increases over the course of another year of "controlled retreat." To the contrary, we want to rout the bad guys, and that's likely to involve a lot more screaming that the markets are being "manipulated to death." CHRIS POWELL, Secretary/Treasurer 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 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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| A Very Different Take On The "Iran Barters Gold For Food" Story Posted: 09 Feb 2012 02:00 PM PST The basic conclusion is that a slow demise of the petrodollar system is bullish for gold and very bearish for the US dollar.
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| Banks Get Off Easy on Foreclosure Fraud Posted: 09 Feb 2012 01:52 PM PST from TheAlyonaShow: $26 billion dollar settlement reached between 49 states, government authorities, and the 5 biggest banks. But this $26 billion won't go too far in helping the millions of Americans that need it. But what is $26 billion to the banks? Is this even a punishment? Richard Eskow, senior fellow with Campaign For America's Future.
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| Harvey Organ's Daily Gold & Silver Report Posted: 09 Feb 2012 01:41 PM PST Greece/Iran and Indian Rice/Banks get big break with a $26 billion foreclosure settlement
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| Davies sees new interest in gold, fair value at $4,000 Posted: 09 Feb 2012 01:37 PM PST 6:35p PT Thursday, February 9, 2012 Dear Friend of GATA and Gold: Hinde Capital CEO Ben Davies today tells King World News that gold is starting to attract some retail investment interest and that its fair value as a ratio with the monetary base is about $4,000. (Somebody please call GATA when life is fair so we can go back to our vegetable garden or neighborhood tavern.) An excerpt from Davies' interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/2/9_Ben... 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 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:
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| Jim Sinclair: Gold’s Role During Periods Of Monetary Stress (A Review) Posted: 09 Feb 2012 01:36 PM PST Gold's job is, & will always attempt to during periods of monetary stress, balance the INTERNATIONAL Balance Sheet of the USA.
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| Ben Davies - Fair Value on Gold Today is Over $4,000 Posted: 09 Feb 2012 01:29 PM PST I would not be surprised if 2012 is the year we really start to get that retail momentum into the (gold) market.
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| The rush to commodities, Silver/Gold...David Morgan on Fox Business Posted: 09 Feb 2012 01:19 PM PST
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| Posted: 09 Feb 2012 12:04 PM PST Gold Price Close Today : 1739.00 Change : (9.70) or -0.55% Silver Price Close Today : 3388.40 Change : 21.10 cents or 0.63% Gold Silver Ratio Today : 51.322 Change : -0.610 or -1.17% Silver Gold Ratio Today : 0.01948 Change : 0.000229 or 1.19% Platinum Price Close Today : 1659.20 Change : -4.30 or -0.26% Palladium Price Close Today : 709.40 Change : -4.35 or -0.61% S&P 500 : 1,351.95 Change : 1.99 or 0.15% Dow In GOLD$ : $153.23 Change : $ 0.94 or 0.62% Dow in GOLD oz : 7.413 Change : 0.046 or 0.62% Dow in SILVER oz : 380.43 Change : -2.19 or -0.57% Dow Industrial : 12,890.46 Change : 6.51 or 0.05% US Dollar Index : 78.61 Change : 0.037 or 0.05% With the pressure off the euro, the silver and GOLD PRICE rose when one might expect that, fears removed, they would fall. They didn't. The GOLD PRICE rose 9.70 to $1,739.00 and silver rose 21.1c to 3388.4c. Although gold reached up and touched $1,750.96, it couldn't even hold on above $1,740. Oddly, too, in the aftermarket it slipped back to $1,730.80, and yesterday's aftermarket (when I checked it) was $1,730.60. For gold that score is "$1750 - two, Gold - zero." Two failures at the same level points to lower prices. To gainsay that gold must trade through $1,750 tomorrow and close above that mark. Yet if the GOLD PRICE cannot beat the top of its range, the bottom of the range cannot beat gold, either. Once again today gold's low came at nearly the self-same spot in the $1,725.80s. If that level gives way, gold will seek $1,680, perhaps $1,650. SILVER PRICE rose to 3388.4c -- good, but still range-bound, so no questions answered. Strong, yes, but not strong enough to break through 3450c resistance and make good its escape from the range. All I can see on the 5-day chart is a lower high today than yesterday's and a trap door at 3360 that silver had better not step through. What makes all this so riddlesome is that silver and gold keep falling off without following through on the downside, but at the same time refuse to push on upwards. All this has the feel of burning up gas, spinning wheels, and lost momentum. Oh, the long term outlook hasn't changed. Silver and gold remain in a bull market fueled by monetary demand, thanks to their best friends, the inflating central banks and deficit-spawning governments of the world. But for right now metals can't decide whether to swim or go boating. Be patient. On Friday, 24 February 2012 I will be speaking for the Fayette County (Tennessee) Tea Party, probably at the county courthouse in Somerville. I'll send y'all more details about time and exact place as soon as I get them. This is your chance to see a natural born fool from Tennessee in the flesh before they become extinct. One thing y'all can always bet on: whenever the banks make a deal, it's to their advantage and the borrowers' disadvantage. Take today's much applauded deal between big banks and 25 state attorneys general over bank wrongdoing in foreclosures. At the end of the day, it costs the banks nothing and secures their otherwise unsecured loans. Here's how: banks have no clear title to mortgages because when they securitized them and sold them, they were in too big a hurry to preserve a chain of clear title. Thus they sue to foreclose, and can't prove any mortgage, foreclosure thrown out. So how does the deal help banks? Oh, they put up a paltry $1.5 billion for 750,000 illegally foreclosed homeowners to split amongst themselves, about $2,000 a head, peanuts. Next the banks agreed to re-finance or "modify" $20 bn or so in existing mortgages "to prevent foreclosure." Now, let's see. #1, the banks create the whole $25 billion out of thin air. Cost to banks? Nothing. #2, banks now hold bad paper that offers no legal basis or claim for a mortgage, but banks generously -- be still, my beating heart! -- re-finance said mortgages, creating new paperwork that PERFECTS their bad title. Yeah, buddy, that sounds like the banks gave up a truckload of goodies, swapping unclear title for perfect title they can now foreclose on legally, and all under the cover of a government-sanctioned deal. "Oh, puh-leez, B'rer Gummint, don't t'row me in dat old mortgage refinancing briarpatch! Puh-leez!" I'm not even going to talk about the Great Greek Debt Deal. My Stupid Meter just blew a fuse and my Hogwash Detector is SMOKING. I can't take any more. Whole investing world's been waiting on that Greek Debt Deal, but what happens when it arrives? Anticlimax. Stocks sputtered, euro spluttered, and silver and gold rose. Mmmmm. Welcome to the world of investor irrationality! Five day stock charts offer neither charm nor enthusiasm. Dow is stuck, blocked, stymied by 12,900. Oh, it rose a MASSIVE 6.51 points (0.05%) today to close at 12,890.46, but I will be tactless and tacky enough to ask the sore question: "With the Greek debt-threat removed, why didn't stocks soar?" Maybe because their wings have been clipped? S&P acquitted itself a little better, closing 1,351.95, up 1.99 points or 0.15%. If they do this in the green tree, what will they do in the dry? They won't bud and blossom, I can promise you that. The US dollar index moved very little, dropping 5.4 basis points (0.07%) to 78.587, still hovering above that deathful 78.50 support. Don't get the idea it was a manic day, either with a high at 78.78 and a low at 78.36, it was a bore-fest. With a 0.07% trading range from high to low, the euro wasn't where the action was today, either. Closed up 0.2% at 1.3285. You would have thought the scared shorts running away would have driven it up, but not at all. That implies -- if I were a guessing man -- that there weren't many shorts in the euro and that all the positions were longs expecting the Greek Deal. Now that they've shot that round, who's left to buy euros? Meanwhile the yen gapped down again today, following through on yesterday's close below the 20 day moving average, and for good measure plunging clean through its 50 DMA as well. Closed near the bottom of the 3- month range. Close was 128.77c/Y100 (Y77.66/US$1), a hefty 0.82% fall. Yen is on the run. 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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| Greece / Iran and Indian Rice / Banks Get Big Break With a $26 Billion Foreclosure Settlement Posted: 09 Feb 2012 11:42 AM PST by Harvey Organ: Good evening Ladies and Gentlemen: Gold closed higher by $9.70 to $1739.00. Silver also rebounded nicely rising by 21 cents to $33.88. Gold jumped immediately at comex opening and remained positive until London was put to bed and that is when the crooked bankers sold their paper metals to drive the price down. Let us head over to the comex and assess trading today. The total gold comex OI fell by 3,914 contracts as the raid had a little effect forcing some of the weaker longs to pitch their contracts. The front delivery month of February saw its OI rise by 4 contracts despite 35 delivery notices yesterday. We thus gained 39 notices or 3900 additional gold ounces standing in this delivery month. The next big delivery month is April and it is here that some the biggest contraction from 240,326 contracts to 236,981 for a loss of 3345. The estimated volume today was quiet at 147,155. The confirmed volume yesterday, the day of the raid came in at 162,522 as the bankers supplied all of their non backed gold paper fire power. Read More @ HarveyOrgan.Blogspot.com
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| CME Cuts Gold, Silver, Platinum And Copper Margins Posted: 09 Feb 2012 11:39 AM PST Did the paper bull trap season just open? how long before these are re-hiked by 15%, 20% or more? For now, this is certainly near-term bullish.
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| Russia Behind Bulgarian Anti-Fracking Protests? Posted: 09 Feb 2012 11:01 AM PST Pity the poor Eastern Europeans. Fifty years under the domination of their massive Soviet eastern neighbor then the collapse of Communism there two decades ago offered undreamed of opportunities to join both the European Union and NATO. Read More...
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| Pimco Borrows A Record $88 Billion To Bet On Fed's Upcoming MBS Monetization Posted: 09 Feb 2012 10:52 AM PST Regular readers of Zero Hedge know that in recent months tracking the portfolio and thoughts of one Bill Gross via the holdings of his flagship Total Return Fund (which just jumped by $6 billion in the past month and is just shy of its all time record north of $250 billion) has meant one thing and one thing only: betting on the Fed monetizing Mortgage Backed Securities or bust. Well, in January he just took it to a whole new level. The fund has now borrowed a record $88 billion, or -35% of its AUM, in cash (shows how much he things of the dollar) and used the proceeds (together with dumping European sovereign bonds from 18% to 11% of AUM) to bet on MBS which now stood at a whopping 50% of the entire portfolio - the highest since July 2009 when QE1 was in full force. However, in absolute dollar terms, due to the growth of the fund's AUM, the actual bet on MBS has never been bigger, and at $125 billion, represents the biggest notional bet ever made by PIMCO. Treasury holdings of just over $100 billion with an effective duration of 6.33 complete the epic bet that the fund has now put on QE3.
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| Gold Continuing to Fail at $1750 Posted: 09 Feb 2012 10:15 AM PST [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Gold has now spiked through the $1750 level several times since the end of last month but has not been able to CLOSE THROUGH this level. Until it does, the market will not be able to start a new leg higher in the uptrend. Generally speaking, markets tend to pause at resistance levels until they can gather enough of a spark to take them strongly through those or they retreat and consolidate leading to some basing action. During the latter, some of the shorter term oriented bulls will liquidate longs out of frustration or out of a desire to cash in some profits and bank them. That selling then paves the way for some opportunistic short selling to emerge. We had a combination of both today leading to a pull back in price. Support on the downside remains near $1725 - $1720 with stronger support down closer to $1710 - $1705. Silver needs to get above $34 and stay there to allow it a chance to te...
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| Of Fat Tails and Fashionable Gloom and Doom Posted: 09 Feb 2012 09:35 AM PST "Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse," says a report at CNNMoney, "lawmakers from 13 states… are seeking approval from their state governments to either issue their own alternative currency or explore it as an option." "In the event of hyperinflation," warns Glen Bradley, who has sponsored one such proposal in North Carolina "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." And with that we find ourselves in peculiar territory this morning. We're on a train to D.C. to meet with fellow conspirators — gentlemen from the 'left' and the 'right' — who share in the belief gold must be reintroduced to the global monetary system. It's become an unintentional hobby of sorts. The meeting is classified at the moment, so we'll reserve comments for another time. But our current mission is only part of what's making us uneasy. We begin today by briefly exploring what our line of work is all about. Scientists who've studied probabilities and plotted them on a chart typically find a bell-curve distribution — in which the most likely events bunch up in the middle of the curve. But a funny thing happens out at the ends of the curve, where the rare events are registered. "Scientists have found small bumps and bulges," explains Bill Bonner. "Things that were not expected to happen very often actually happened more than they thought." "'Hundred-year floods,' for example, happened every 88 years. 'One in a million' shots hit their mark every 700,000 or so. Statisticians refer to these odd bulges on the extremities of bell-shaped curves as 'fat tails.' Instead of tailing off as they are supposed to, the rare events seem to swell up where you don't expect them." We are in the business of anticipating fat-tail events — while the "mainstream media" sit in the middle of the bell curve. Click the graph to enlarge and you'll get the idea:
The problem is that since 2008, "fat-tail events" — like the collapse of the U.S. dollar and the dismembering of the Federal Reserve system — have become harder for us to stake out. We were once derided as "doom and gloomers." Now doom and gloom has become downright fashionable. Heck, we see the National Geographic Channel debuted a show last night visiting survivalists in their bunkers… and here we are carrying on with business as usual in the "belly of the beast." With all that in mind, we daresay that declaring the mother of all financial bubbles might be passe. Don't get us wrong: It's still inevitable the bubble will pop. But today we throw in the towel and make a concession: The monetary mandarins will successfully inflate the bubble a few months longer. And the peace we expect to break out once they're defrocked of their power and prestige will have to wait for another day. "The Federal Reserve Open Market Committee (FOMC) has made it official," writes Daily Reckoning regular Charles Kadlec at Forbes: "After its latest two-day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years." And that's if everything goes according to the plan… based on the Fed's now-formal target of 2% annual inflation. Likewise, the Federal Reserve's latest figures on consumer credit jumped in December — to an annualized 9.3% rate, on top of November's 9.9%. We've seen nothing like it in 10 years — not since the Fed poured gasoline on the fire first ignited by the tech bust in late 2001 made it possible for automakers to offer 0% financing. Yes, student loans are a big part of the growth, as they've been for many months now. But auto loans are up big, and even credit card use is growing again. The Wall Street Journal talks to a bank president in Colorado who says loan volume is up because more people now qualify and they're willing to take on more debt. The paper also profiled a couple in Pennsylvania financing a new SUV. "We had looked at our budget, and it was something we knew we were comfortable affording," said Heather Davidson. They're buying a 2012 Nissan Armada for $57,000. Presumably they got every bell and whistle available, since the manufacturer's suggested retail for the base model Armada is $40,275. But hey, why not splurge and trick the thing out? It's easy payments of $650 a month for the next 72 months, the paper says. Six years? Oy… Addison Wiggin Of Fat Tails and Fashionable Gloom and Doom 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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| Warren Buffett: Why stocks beat gold and bonds Posted: 09 Feb 2012 08:58 AM PST In an adaptation from his upcoming shareholder letter, the Oracle of Omaha explains why equities almost always beat the alternatives over time. By Warren Buffett From our definition there flows an important corollary: The riskiness of an investment is not measured by beta (a Wall Street term encompassing volatility and often used in measuring risk) but rather by the probability — the reasoned probability — of that investment causing its owner a loss of purchasing power over his contemplated holding period. Assets can fluctuate greatly in price and not be risky as long as they are reasonably certain to deliver increased purchasing power over their holding period. And as we will see, a nonfluctuating asset can be laden with risk. Investment possibilities are both many and varied. There are three major categories, however, and it's important to understand the characteristics of each. So let's survey the field. Investments that are denominated in a given currency include money-market funds, bonds, mortgages, bank deposits, and other instruments. Most of these currency-based investments are thought of as "safe." In truth they are among the most dangerous of assets. Their beta may be zero, but their risk is huge. Over the past century these instruments have destroyed the purchasing power of investors in many countries, even as these holders continued to receive timely payments of interest and principal. This ugly result, moreover, will forever recur. Governments determine the ultimate value of money, and systemic forces will sometimes cause them to gravitate to policies that produce inflation. From time to time such policies spin out of control.
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| TF Metals Report: Ramblings - Let's Talk Dollar, Gold, Silver, Crude & Freedom Posted: 09 Feb 2012 08:34 AM PST Ultimately, only question is: Who is going to be stuck with the losses that the Fed will paper over? The Fed will print dollars to soothe the crisis.
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| Anarchists Unite Behind Gold and Silver-Jeff Berwick and Gary Gibson–02-09-2012 Posted: 09 Feb 2012 08:29 AM PST Gary Gibson of www.WhiskeyandGunPowder.com and Jeff Berwick of www.DollarVigilante.com join your humble host for a no holds barred discussion of why they believe that anarchy is the best course for humanity. While one can question the practicality of a world without government, Gary and Jeff have really thought things through and believe that we are all grown-up enough to live without the guiding hand of all knowing government. And while that may or may not be the case, governments today are teetering on the edge and we may have no choice but to prepare for life without them. Certainly government as it is now constituted, represents a threat to every individual's liberty around the planet. Whether it's getting into unnecessary wars, bailing out criminal financial miscreants, or spending their way into the poorhouse, there is something inherently wrong with government as it is now practiced. So if we can devise a transition to anarchy that will not result in humanity's descending into chaos, perhaps it's worth considering. In any event, discussion of anarchy inevitably leads to a discussion of the proper role and scope of government, and this is a debate that has been much too long in coming. Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.
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Much has been made of today's 
Two men, Jim Chanos (left) and Jim Rogers (right), are both famous for being very right throughout their careers managing money. So how can they be diametrically opposed when considering the long-term prospects of Chinese growth?
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