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Tuesday, February 14, 2012

Gold World News Flash

Save Your ASSets First

Gold World News Flash

The race, the ribbon, the rutancluskifs

Posted: 13 Feb 2012 06:57 PM PST

Now that I have your attention about the rutancluskifs, come on in I'll tell you what this means for Silver.


Galactic Gold: A Valentine Story

Posted: 13 Feb 2012 06:00 PM PST

npr


Bank of Japan Sprays World With Surprising ¥10 Trillion Gift In Valentine's Day Liquidity

Posted: 13 Feb 2012 04:29 PM PST

In a move that will surely shock, shock, the monetary purists out there, the Bank of Japan has just gone and done what we predicted back in May 2011, with the first of our "Hyprintspeed" series articles: "A Look At The BOJ's Current, And Future, Quantitative Easing" (the second one which discussed the imminent advent of the ¥1 quadrillion in total debt threshold was also fulfilled three weeks ago). So just what did the BOJ do? Why nothing short of join the ECB, the BOE, and the Fed (and don't get us started on those crack FX traders at the SNB) in electronically printing even more 1 and 0-based monetary equivalents (full statement here). From WSJ: "The Bank of Japan surprised markets Tuesday by implementing new easing policies and moving closer to an explicit price target, the latest sign of growing worries around the world about the ripple effects of the European debt crisis on the global economy. With interest rates already close to zero, the BOJ has relied in recent months on asset purchases to stimulate the economy. In Tuesday's meeting, the central bank expanded that plan by ¥10 trillion, or about $130 billion. The facility, which includes low-cost loans, is now worth about ¥65 trillion, or $844 billion." The rub however lies in the total Japanese GDP, which at last check was $6 trillion (give or take), and declining. Which means this announcement was the functional equivalent to a surprise $325 billion QE announced by the Fed. What is ironic is the market reaction: the BOJ expands its LSAP by 18% and the USDJPY moves by 30 pips. As for gold, not a peep: as if the market has now priced in that the world's central banks will dilute themselves to death. Unfortunately, it is only at death, and the failure of all status quo fiat paper, that the real value of the yellow metal, whose metallic nature continues to be suppressed via paper pathways, will truly shine.

The WSJ explains the BOJ's stunning decision further:

Only one out of the 11 analysts polled by Dow Jones Newswires had predicted the BOJ to ease this week.

 

Most BOJ watchers had said that while there were concerns over the impact of the strong yen and the European debt crisis, neither financial nor economic conditions had worsened to levels that warranted immediate further action.

 

The BOJ policy board also revised the wording of its "understanding of price stability," saying now it has set a "price stability goal" of 2% or lower in the core consumer price index in the medium- to long-term and a goal of 1% growth for the time being. For calendar year 2011, Japan's core consumer price index—excluding food prices—was negative 0.3%.

 

The bank had come under criticism that its definition of price stability, the goal it seeks to achieve in its fight against deflation, was too convoluted and vague. Such attacks had increased in recent weeks after the U.S. Federal Reserve in late January adopted a more explicit price target.

 

Faced with a prolonged deflation, politicians have stepped up their calls on the BOJ to take fresh action, with some threatening to revise legislation to strip away the central bank's independence from the government.

First of all, don't get us started on inflation targeting. Or rather, get Dylan Grice started: he will tell you all about it, and then some.

And while we now really just can't wait to bring to our readers what the global central bank balance sheet will look like after February, when it takes into account the recent GBP50 billlion BOE expansion, the €500-€1000 billion European LTRO part Deux, and now the ¥10 trillion additional BOJ easing, here is what we said on the topic back in May of 2011.

"In a sign some in the BOJ were more cautious about the economic outlook than Shirakawa, Deputy Governor Kiyohiko Nishimura proposed on Thursday expanding the central bank's asset buying scheme by 5 trillion yen ($62 billion).  While the proposal was outvoted by the board, some market players said it may be a sign the BOJ may loosen policy as early as next month. "And loosen it will, because unfortunately as the past 30 years have shown, the country at this point has no other choice but to take the same toxic medicine which merely removes the symptoms briefly, while making the underlying problems far worse.  Also, with the Fed threatening to end QE2 in precisely two months, someone out there has to be dumping hundreds of billions in infinitely dilutable 1 and 0s into primary dealer prop desks. Furthermore, as shown above, the BOJ needs not to buy securities outright: tinkering with the shadow economy in the form of the repo market will provide just as desirable an outcome… If, of course, said outcome is to see gold and silver continue on their relentless rise to new all time record highs. And/or higher. Because the only thing limiting the price of gold is price stupidity and the amount of paper money in existence. Both are infinite.

It's good to see that our May 2011 quote on what the only realy gating factor on the price of gold is has now been broadly absorbed in the asset management vernacular. And yes, once the market does realize what is happening, following the usual 6-8 week uptake period, expect another step function higher in precious metals, CME margin hikes notwithstanding (and the recent CME faux margin cut bull trap aside).

Finally, unlike our own Fed, at least the BOJ is not shy telling the world it is openly buying up REITs and ETFs. For some odd reason our boys over at Liberty 33 are still playing so coy they can only punch their equity trade tickets via Citadel.

Richard Russell - A Bitter Pill to Swallow, Austerity or Inflation

Posted: 13 Feb 2012 04:01 PM PST

With investors globally wondering what central planners are up to next and how it will impact gold, today the Godfather of newsletter writers, Richard Russell, was discussing this very subject: "A few months ago I wrote a piece about avoiding pain in the economy. How do we do it? We do it by turning away from austerity and embracing inflation. And the question -- will the inflationary method of avoiding economic pain kill our economy, just as the drug (taking drugs) way of avoiding pain has killed so many talented musicians? I think the results will be the same."


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Gold Seeker Closing Report: Gold and Silver Rise With Stocks and Oil

Posted: 13 Feb 2012 04:00 PM PST

Gold climbed $13.72 to $1733.32 in Asia before it fell back to $1716.19 by a little before 10AM EST, but it then bounced back higher midday and ended with a gain of 0.22%. Silver rose to $34.025 in Asia before it slipped back to $33.45, but it also rebounded midday and ended with a gain of 0.69%.


Uncle Warren Peddles For the Fiat Masters Who Made Him Rich… Henry Blodget Obliges.

Posted: 13 Feb 2012 03:54 PM PST

BUFFETT: Guess How Big A Cube All The Gold In The World Would Make—And How Much It Is Worth

by Henry Blodget businessinsider.com:

In his excellent investing primer in Fortune (an excerpt of his forthcoming Annual Letter), Warren Buffett devotes a few paragraphs to gold and the fools who worship it.

He also explains why gold is generally a crappy investment, even if its price in dollars goes up from time to time (as it has over the past decade).

If you molded all the gold in the world into a cube, Buffett says, it would be about 68-feet per side. This is four feet shorter (and considerably wider) than a tennis court. As Buffett observes, it would fit comfortably in the middle of a baseball infield.

The value of all that gold at today's prices, Buffett observes, would be about $10 trillion. As for its merit as an investment, Buffett observes the following:

Read More @ businessinsider.com

Adrian Douglas: Large move in the gold stocks imminent?

Posted: 13 Feb 2012 03:51 PM PST

11:43p PT Monday, February 13, 2012

Dear Friend of GATA and Gold:

The latest edition of the Market Force Analysis letter, published by GATA board member Adrian Douglas, finds very compelling the question: "Large Move in the Gold Stocks Imminent?" It's posted at GATA's Internet site here:

http://www.gata.org/files/AdrianDougasMFA-02-13-2012.doc

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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Prophecy Coal (TSX: PCY) Wins Positive Feasibility Study
for the 600-MW Chandgana Power Plant in Mongolia

Company Press Release
January 17, 2012

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...


Join GATA here:

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

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Sona Discovers Potential High-Grade Gold Mineralization
at Blackdome in British Columbia -- 13.6g over 1.5 Meters

From a Company Press Release
November 22, 2011

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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Silver Update: 2/13/12 Bogus Budgets

Posted: 13 Feb 2012 03:10 PM PST

India's Gold

Posted: 13 Feb 2012 02:57 PM PST

Last night CBS' 60 Minutes aired a great segment on India's penchant for buying gold. I've written a few thoughts below, but first watch the segment: Notes First, here are a few notes I took from the video: 1.2 billion people in India. 10 million weddings each year in India. Half of the gold bought in India is jewelry for weddings. In India, a family without gold is an "incomplete


Turk foresees 'buying panic' when gold hits $1,750

Posted: 13 Feb 2012 02:46 PM PST

7:40p PT Monday, February 13, 2012

Dear Friend of GATA and Gold (and Silver):

GoldMoney founder and GATA consultant James Turk tells King World News today that he's encouraged by gold's holding its big recent gains during a consolidation, and he predicts a "buying panic" when gold regains $1,750. An excerpt from the interview is posted at the King World News blog here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/2/13_Tu...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Ummm, Really?

Posted: 13 Feb 2012 02:44 PM PST


GoldMoney. The best way to buy gold & silver



My worst trading performance has been when I have gone short. I have made big money (like when I was leveraged short during the fall of 2008 as documented here and here), but I have also lost large amounts of money fighting the hoards of determined bulltards still stuck in last century's paradigms. The tsunami of paper depreciation unleashed upon us over the past decade makes shorting any market much more hazardous than being long. Trust me, I have learned my lesson in this regard the hard way.

Right now, my subscribers and I are short senior Gold stocks as a scalp trade (after catching the high in the GDX ETF on February 2nd). So far, so good. It is almost time to flip back to going bullish on the precious metals sector. When I look at the general common equity markets, I see rabid paperbug froth everywhere. Just a few minor points of extremely bullish sentiment to point out.

First up, here's a chart from a piece by sentimentrader.com, which examines the ratio of money flowing into a Rydex bull mutual fund versus a bear fund (i.e. examines retail money flows into bullish bets versus bearish bets):





Next up, a chart of a proprietary NASDAQ sentiment indicator from Market Harmonics:




Record highs, eh? I can see why, what with the super-strong economy and what not. And here's the opinion of the trusted and revered investment advisors that always buy low and sell high for their clients (sarcasm off). Following is the NAAIM (National Association of Active Investment Managers) sentiment survey thru last week:




I am thinking a sharp chop lower in common equities followed by a drunken and staggering final charge into a March peak. After that, we'll have to see. But for now, risk is exceedingly high in common equities. There's rarely a need to tell a Gold bull about such risk, as those who have crossed over to the dark side and embraced the secular bull market that is the enemy of the state rarely need reminding that we are in the cycle where paper declines relative to real/hard assets.

Own physical Gold and sleep well. When the Dow to Gold ratio hits 2 (and we may well go below 1 this cycle), consider waking up from that comfortable financial sleep and looking for something to buy with your bling bling. And if you're interesting in speculating in the paper markets after you have established a core position of physical metal held outside the banking system, consider trying my low cost subscription service.



Buy gold online - quickly, safely and at low prices[Most Recent Charts from www.kitco.com]

Here Are 2 Benefits of Devaluating the USD and How It Could Be Achieved

Posted: 13 Feb 2012 02:34 PM PST

The primary obstacle to economic recovery is widespread insolvency among households and banks (meaning liabilities exceed assets). A consumer who is broke cannot spend, and a bank that is broke cannot lend. Devaluing the dollar would reduce the real value of the debt (increase the nominal value of the assets), rendering millions of households and most banks instantly solvent. [Let me explain.] Words: 590 So said W.C. Varones*([url]www.wcvarones.com[/url]) in edited excerpts from his original article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note t...


Today's Black Gold Swan – Presenting The Reason Why The CME's Crude Market Was Halted For Over One Hour

Posted: 13 Feb 2012 02:08 PM PST

from ZeroHedge:


Earlier today, we reported on the extended halt of the CME Globex crude market, which following an errant trading pattern, did not quite crash, but did the next best thing – go offline for a full 75 minutes. Why did this happen? Our initial speculation was that this "may have been an algo gone berserk in advance of what may or may not have been a block order…. Someone take quote stuffing a little too far today?" It turns out we were not too far off. Below is Nanex visualization of just what occurred in those seconds between 13:59:57 and 14:04:55 when "a blast of quotes corrupted a memory queue causing the software to believe the queue was full all the time." In other words just under two years after the May 2010 flash crash, another algo may have been the reason for the halt in one of the world's most important markets. At least this time there was no 10% "correction." How long until there is, and when it does happen again, will it be limited to just 10%? Oh, and whatever you do, most certainly don't expect this little incident to be brought up ever again by those in control, for any precautionary measure to be taken, or for the SEC to ever get involved. Any of those three would immediately imply something is very wrong with the market. And that's simply not allowed.

Read More @ ZeroHedge.com

All the makings are in place for another massive paper raid.

Posted: 13 Feb 2012 01:40 PM PST


Commercials Increase Net Silver Shorts 71 Million Ounces in Last 3 Weeks! COT Report 2/10/12 The Silver Doctors

So much for the theory that JPM was finished manipulating silver, and was attempting to rid itself from its remaining short silver position.
The commercials increased their net short silver futures position another 5,921 contracts (29.6 million ounces!) in the week ending 2/7/12.
In the last 3 weeks, the commercials have increased their net short silver futures position from 20,382 net shorts to 34,650 net short contracts. This is an increase of 14,268 contracts, or an addition 71.34 million ounces of net short silver positions in just 3 weeks!

As we mentioned this morning, the 1 and 2 month silver lease rates have suddenly plunged into NEGATIVE territory as well, which is very ominous for the paper silver price in the near future. Combine this with the CME Group's slashing of gold and silver margins likely to entice speculative longs back into the futures market, and a 71.34 million increase in the commercial net short position in 3 weeks (likely mainly of the naked variety courtesy our friends at The Morgue), and all the makings are in place for another massive paper raid.
_________________________

David Morgan. More Bullish On Silver NOW Than Ever Before

_________________________

Analysis of the Long-term Silver Chart
By Hubert Moolman

________________________

White House Wish List: Minimum Global Tax & Financial Crisis Responsibility Fee

Posted: 13 Feb 2012 01:02 PM PST

We take a quick look at Obama's 2013 budget here, but there are a few other items to leave you with this evening.

First, White House National Economic Council Director Gene Sperling formally announced today that the White House believes "we need a Global Minimum Tax, so that people have the assurance that nobody is escaping doing their fair share as part of a race to the bottom." Just a few questions from the few who are actually paying attention: imposed by whom? collected by whom? And how will the funds be used? ... nevermind the details, these aren't the droids you're looking for.  

 

 

 

This is excellent news, as this is precisely what the United Nations would like to see. Not to worry, we're sure to hold on to our sovereignty as these initiatives unfold... 

 

Also worth noting, looking through some of the detail in the proposal, Obama is calling for a $61 Billion dollar "Financial Crisis Responsibility Fee" to be paid by the banks who received TARP money (regardless if they've paid the funds back or not). This is a pretty creative way to raise revenue - we look forward to seeing the banks begin to reserve for this fee, should be any day now. 

 

Also, will GM will get a piece of that action? Surely they "benefited enormously from the extraordinary actions"

 

 

More later.

 

Ranting Andy’s a Happy Gold Standard Extremist – 02-13-2012

Posted: 13 Feb 2012 01:00 PM PST

from The Financial Survival Network:

It's now official, Ranting Andy Hoffman and I are extremists. Why, because we favor a return to the Gold Standard and believe that the United States went bankrupt as a result of Nixon's decision to abandon the remnants of the Gold Standard that were still in place in August 1971. The FBI is warning local law enforcement that people who consider themselves to be sovereign citizens, who object to EPA regulations, who resent the IRS, could be prone to extreme violence with no warning.

If we're extremists, then we hope you will join us and together we can show the FBI and the US Government what peaceful extremism is all about. We also took your questions about precious metals investing and hope that you won't wait until it's too late to start buying. If there's something you would like us to discuss, please email me or leave a message.

Click Here to Listen to the Podcast


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20 Things We Can Learn About The Future Of America From The Death Of Detroit

Posted: 13 Feb 2012 12:50 PM PST

from The Economic Collapse Blog:

Do you want to know what the future of America is going to look like? Just check out what is happening to Detroit. The city of Detroit was once one of the greatest industrial cities in the history of the world, but today it is a rotting, decaying, post-apocalyptic hellhole. Nearly half the men are unemployed, nearly half the population is functionally illiterate, more than half of the children are living in poverty and the city government is drowning in debt. As economic conditions have gotten worse, crime has absolutely exploded. Every single night in Detroit there are frightening confrontations between desperate criminals and exasperated homeowners. Unfortunately, the police force in Detroit has been dramatically reduced in size. When the police in Detroit are called, they often show up very late if they even show up at all. Detroit has become a lawless hellhole where violence is the currency of the streets. If you want to survive in Detroit, you better be ready to fight because there are hordes of desperate criminals that are quite eager to take literally everything that you have got. But don't look down on Detroit too much, because what is happening in Detroit will soon be happening all over America.

The following are 20 things we can learn about the future of America from the death of Detroit….

Read More @ TheEconomicCollapseBlog.com

Gold Slips Below Steep Trendline

Posted: 13 Feb 2012 12:31 PM PST

courtesy of DailyFX.com February 13, 2012 02:26 PM Daily 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 1706.40 would shift focus to the January congestion zone at 1647/85. Bottom Line – short, stop 1765.90, target open...


How to Ruin Your Economy and Influence People

Posted: 13 Feb 2012 12:31 PM PST

Bill Bonner View the original article. February 13, 2012 12:02 PM We can learn a lot from the Argentines. When it comes to messing up an economy, they're Numero Uno. They're Olympians of financial legerdemain and masters of the old false shuffle. In 2001, the country was deeply in debt. The government was out of money. And the currency was losing value fast. What did the Argentines do? First, they broke their promise to investors and savers, cutting the peso loose from the dollar. Then, they seized control of banks and bank accounts. People had been saving money in US dollar accounts in order to avoid problems with the peso. But the Argentine feds forcibly converted their accounts to pesos, just as the peso was losing 2/3rds of its value. The next thing was to take the reserves in the central bank and use them to pay current expenses — which caused the head of the bank to resign in protest. And finally, a few years later, they took over private pension funds — to protect them for ...


David Cottle: Gold has humbled smart men before

Posted: 13 Feb 2012 12:05 PM PST

By David Cottle
The Wall Street Journal
Monday, February 13, 2012

http://blogs.wsj.com/source/2012/02/13/gold-has-humbled-smart-men-before...

It takes a brave man to suggest that Warren Buffett has missed a point. After all, unless you are Carlos Slim or Bill Gates, a comparison of his bank balance and yours will show that he caught quite a few that you and I saw only when it was far too late.

However, as Mr. B rails against gold in an article for Fortune magazine --

http://finance.fortune.cnn.com/2012/02/09/warren-buffett-berkshire-share...

-- it's tempting to think that he just might have it wrong when it comes to the oldest haven of all. He mounts all the attacks that exasperated non-gold-bugs often go for: The stuff has no inherent value, it underperforms stocks horribly over time, and has merely become a self-inflating bubble in its long climb to record highs.

Perhaps he's right, but, in its enduring relationship with mankind, the yellow metal has a history of humbling very smart people.

... Dispatch continues below ...


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Golden Phoenix Discusses Royalty Mining Growth Strategy
on '21st Century Business' on Fox Business Network

Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project.

"21st Century Business" has been airing for 15 years. Previous hosts have included Gen. Alexander Haig, Gen.l Norman Schwarzkopf, and Secretary of Defense Caspar Weinberger. Golden Phoenix appeared as paid programming on this broadcast.

To view the program with Golden Phoenix, please visit Golden Phoenix's Internet site here:

http://goldenphoenix.us/fox-business-network/


John Maynard Keynes denounced the gold standard as a barbarous relic. Soviet Marxists dreamed of the day when gold would be consigned to the scrap heap, literally and figuratively, useful only for lavatory fittings.

Closer to our own day, it's still fashionable to snigger at Gordon Brown's decision, when U.K. chancellor of the exchequer, to sell off British gold in favor of paper assets between 1999 and 2002. Gold prices were at 20-year lows back then, primed as we now know for a record upward charge.

So please, be my guest and snigger away. But Mr. Brown didn't make this decision alone. The doctorate-garlanded staff of Her Majesty's Treasury went along with it too.

And now Keynes is gone, the Soviet Union too, and even Gordon Brown seems to have disappeared. But here's gold, all yours for $1700 odd per ounce.

The reason investors like gold is not because they hate stocks or real estate or anything else. It's high because the word of governments is in disrepute as it hasn't been in living memory.

Across the developed markets, bonds and currencies have been debauched to cover debt. Even claims on the U.S. Treasury aren't the rock solid bet they once were. They may be in practice, of course, but in theory it's a different matter. The U.S. is no longer "triple A," and it's still wrangling over a budget that is going to need "Greek-style" cuts to make spending sustainable.

Top credit ratings are now the preserve of smaller, less liquid economies. The world's investors simply cannot pile into Australian or Scandinavian bonds in the same way they used to run for cover in the Treasury market. There aren't enough of them.

Gold may well annoy the likes of Mr. Buffett, and swashbuckling investors everywhere, who will probably continue to reap better rewards elsewhere. Good luck to them.

But in a world short of trustworthy governments, gold will remain a more important and permanent part of portfolios than it was in the pre-crisis days of innocence.

* * *

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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16


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Or call Northaven CEO Allen Leschert at 604-696-3600.


Today's Black Gold Swan - Presenting The Reason Why The CME's Crude Market Was Halted For Over One Hour

Posted: 13 Feb 2012 11:49 AM PST

Earlier today, we reported on the extended halt of the CME Globex crude market, which following an errant trading pattern, did not quite crash, but did the next best thing - go offline for a full 75 minutes. Why did this happen? Our initial speculation was that this "may have been an algo gone berserk in advance of what may or may not have been a block order.... Someone take quote stuffing a little too far today?" It turns out we were not too far off. Below is Nanex visualization of just what occurred in those seconds between 13:59:57 and 14:04:55 when "a blast of quotes corrupted a memory queue causing the software to believe the queue was full all the time." In other words just under two years after the May 2010 flash crash, another algo may have been the reason for the halt in one of the world's most important markets. At least this time there was no 10% "correction." How long until there is, and when it does happen again, will it be limited to just 10%? Oh, and whatever you do, most certainly don't expect this little incident to be brought up ever again by those in control, for any precautionary measure to be taken, or for the SEC to ever get involved. Any of those three would immediately imply something is very wrong with the market. And that's simply not allowed.

From Nanex:

NYMEX Black Swan ~ The March 2012 Crude Oil Futures Quote Loop
On February 13, 2012, starting 13:59:57, quotes for crude oil began queuing. At 14:00:35, all of the queued quotes were sent at once. Again at 14:01:08 the same 38 second block of quotes sent earlier was sent again -- old timestamps and all plus a few new quotes. Again at 14:01:18, all quotes since 13:59:57 were sent again. This repeated 12 times.

From a programmers perspective, it looks like a system problem caused a blast of quotes that corrupted a memory queue causing the software to believe the queue was full all the time.

 

Tick chart of bid prices (red) along with quote age (blue).

Note that as the cycle repeats, it includes a few more quotes (the new quotes + those since 13:59:57). There are 500 quotes between time axis labels.

 

500 millisecond chart of ETF U.S. Oil Fund (USO) showing massive quote traffic as it reacts to stale futures quotes.

 

500 millisecond chart of ETF U.S. Oil Fund (USO) showing massive trade executions in reaction to stale futures quotes.

G. Edward Griffin, “The Federal Reserve is a Private Banking Cartel”

Posted: 13 Feb 2012 11:34 AM PST

from CapitalAccount:

You have probably seen the images by now. Athens on fire, the city literally burning as politicians within parliament voted to pass tough austerity measures to meet the demands of the EU and IMF, Greece's international lenders. This story is about more than just austerity and riots – it's wealth-extraction amidst economic collapse at work. The Greek economy is in the 5th year of a recession, which is a nice way of saying that it is in a depression. Money supply continues to contract, deposits are being drained and liquidity has dried up. The economy is in a free fall, and there is no bottom in sight. The proposals for recovery through "austerity" are just another way to keep the political system in place for as long as possible with the hope that the elites will be able to ride this storm out and come out the other end richer and more powerful than every before. We break down how exactly that works with Capital Account producer Demetri Kofinas.

And while we're on the issue of debt, let's take a look at how the US is dealing with it. US President Barack Obama released his 2013 budget today. While it will be analyzed, touted, and attacked, why should you care, or rather, why should you not care? We'll tell you. And more economists come out saying the Federal Reserve is making a big mistake if it sticks to keeping interest rates near zero for the next three years. We look at how the Fed got here – it's evolution into central planner, buyer of junk, war enabler, and firefighter of the economic fires it creates itself. We speak to G. Edward Griffin whose been opposing the Fed since at least the 1960s. G. Edward Griffin is author the bestselling book The Creature from Jekyll Island, which has been recommended by Republican Presidential hopeful Ron Paul on his reading list and which reportedly informed Dr. Paul's writing on the Fed in his own books on the subject.

Griffin also takes us back in time, and reminds us how the Fed even came to be — the money trust meeting in secret on Jekyll Island in order to draft a cartel agreement that would eventually be known as the "Federal Reserve Act."

Dumb, Dumber, and Dumbest: Trading Gold for Oil

Posted: 13 Feb 2012 11:19 AM PST

A Monday Morning Musing from Mickey the Mercenary Geologist [EMAIL="Contact@MercenaryGeologist.com"]Contact@MercenaryGeologist.com[/EMAIL] February 13, 2012 A recent headline blasted the "breaking news": "India to Pay Gold Instead of Dollars for Iranian Oil: Markets Stunned" I too was stunned; well, more like dumbfounded. That is one of the dumbest ideas to cross my desk in a long while. The article underneath the headline immediately brought China into the mix. These two countries, India and China, were purported to have made a deal with Iran to pay for their oil imports, totaling one million barrels per day, with gold in order to skirt United States and European Union sanctions. As you are aware, the freezing of Iranian offshore assets and the embargo of its oil exports came about because of the rogue nation's continuing efforts to produce highly-enriched uranium and concoct an atomic bomb. While reading, I immediately envisioned a sequel to the movie "Dumb a...


Best of the Web Archives

Posted: 13 Feb 2012 11:16 AM PST


Ben Davies Interview – King World News

Stephen Leeb Interview – King World News

Mark Steyn Says America Is on Its Way to Armageddon – The Preparation Station

Ten Things That Every American Should Know About The Fed – ETF Daily News

Why Our Currency Will Fail – Chris Martenson

Occupy Movements of Mutual Knowledge – Automatic Earth

Headlong On The Path To Ruin And Destruction – Alan M. Newman

The Fed is Engineering Obama's Re-Election Campaign – Gary Dorsch, Global Money Trends

The Confidence Fairy, Pixie Dust and a Sleeping Dragon – Daniel Alpert

How Euro Brinkmanship Is Beginning to Succeed – Jacob Funk Kirkegaard

Ron Paul's Worldview Forged in Early Family Life – David Halbfinger, New York Times

An Adult Approach – GATA

Illusion of Recovery – Feelings Versus Facts – Burning Platform

What If We're Beyond Mere Policy Tweaks? – Charles Hugh Smith

Why Junior Mining Stocks Represent Best Value – Brent Cook

Greece Bailout Yes or No? / The USA 2013 Budget / Possible Raid Tomorrow / Moody's Downgrade

Posted: 13 Feb 2012 11:08 AM PST

by Harvey Organ:

Good evening Ladies and Gentlemen:

Gold rose by $1.00 to $1723.00 at comex closing time. Silver rose 10 cents to $33.70. Initially gold and silver rose, however the bankers do not want our precious metals rising in these precarious times so they provided a brick wall with more non backed paper gold and silver selling. It seems that 34.00 dollar per oz is the barrier for silver. Anything over $1750 for gold will bring on much bank selling.

Let us head over to the comex and assess trading today. The total gold comex OI (open interest) fell by 2517 contracts to 428,559 from 431,076 contracts. The huge raid on Friday, caused minor liquidation of some longs in the gold complex. The front delivery month of February saw its OI fall by 248 contracts to 538. We had 229 delivery notices filed on Friday so we lost 19 contracts to cash settlements as Blythe Masters offered copious fiat money to some of our longs instead of letting them stand for actual metal. The next big delivery month is April and here the OI fell by 3104 contracts from 235,628 to 232,524. The estimated volume today at the comex must surely bother our CME folk. It registered a measly 102,890 contracts. The confirmed volume on Friday, the day of the big raid saw its volume come in at 191,182 contracts. To me it looks like many have abandoned the comex to seek their physical elsewhere. They know the game is crooked and the risk of another MFGlobal must weigh on investors. This is the reason for the lowering of the margin requirements in all commodities to entice players to return, but it is a little too late.

Read More @ HarveyOrgan.Blogspot.com

Jim Rogers Out of Step with KWN Gold Bugs

Posted: 13 Feb 2012 10:49 AM PST

Speaking with Investment Week, Jim Rogers of Rogers Holdings said he doesn't expect gold to surpass $2,000 in 2012, putting him on the other side of the boat of some well-known analysts.

"I do not think it will go to $2,000 this year, no," said the 69-year-old American expatriate living in Singapore. "I own it and I am not planning on selling it. It will go over $2,000 one day, but not this year."

No elaboration on Rogers' latest take on gold was contained in the Investment Week article of Feb. 10.

In sharp contrast to Rogers' sentiments about the yellow metal, almost every regular guest on King World News, save Marc Faber, has come out with some bullish expectations for the gold price in 2012.  One in particular, Matterhorn Asset Management Founder Egon von Greyerz, told Eric King this week that he expects gold to reach $5,000 per ounce within 24 months, with a reasonable assumption gleaned from his forecast that he expects gold to clear $2,000 by the end of this year.  Otherwise, is von Greyerz suggesting a triple in price for gold during 2013, alone?

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The Gold Price Must Rise Above $1,730 Otherwise it Risks Falling as low as $1,650

Posted: 13 Feb 2012 10:40 AM PST

Gold Price Close Today : 1723.00
Change : (0.30) or -0.02%

Silver Price Close Today : 3369.60
Change : 12.00 cents or 0.36%

Gold Silver Ratio Today : 51.134
Change : -0.192 or -0.37%

Silver Gold Ratio Today : 0.01956
Change : 0.000073 or 0.37%

Platinum Price Close Today : 1650.00
Change : -13.50 or -0.81%

Palladium Price Close Today : 696.25
Change : -17.50 or -2.45%

S&P 500 : 1,351.77
Change : 9.13 or 0.68%

Dow In GOLD$ : $154.46
Change : $ 0.92 or 0.60%

Dow in GOLD oz : 7.472
Change : 0.044 or 0.60%

Dow in SILVER oz : 382.06
Change : 0.80 or 0.21%

Dow Industrial : 12,874.04
Change : 72.81 or 0.57%

US Dollar Index : 78.97
Change : 0.115 or 0.15%

The Silver and GOLD PRICE are still stuck, and disagreeing today. The GOLD PRICE fell thirty cents [sic] to $1,723. Silver rose 12c to 3369.6c.

Those numbers look promising, but the chart doesn't. Unless gold begins to climb and rises first over $1,730 it will drop. Once it drops below $1,705, then it will go whole hog to $1,680 or $1,650.

On the other hand, if gold clears $1,730, it's back in the fight. RSI and MACD whisper gold is headed down, though.

The SILVER PRICE chart doesn't say much more than gold's, just has different boundaries. Upside silver must clear 3400c, and hasn't yet been to make that stick. Down below 3320c must hold, or silver will give up another dollar.

I reckon the clean up crews out sweeping up after fire-bombing protestors in Greece have left markets wondering whether the Greek Debt Deal is a done deal or not. Something about protestors throwing rocks and firebombs calls into question the parliament's vote.

Stocks rose a little while the US dollar, euro, yen, and silver and gold twitched sideways.

Dow Jones Industrial Average today rose 72.81 or 0.57% to 12,874.04. S&P rose 0.68% (9.13 points) to to 1,351.77.

Spooky how stocks dropped like your car keys down a well on Friday, then did what your car keys never do, popped right back up. Well, almost to the lip of the well, but not quite. The bounce didn't reach as high as Thursday, so this could promise two different outcomes, either extending the rally, or failing and falling.

Clue to which outcome will eventuate is the Dow's 20 day moving average at 12,734. That opens a deep and unforgiving mineshaft below the Dow.

And there is also more discouraging news from the MACD and RSI indicators, bumping up on highs and rolling over downward.

Currencies are all holding their breath, waiting to see what will happen in Greece. US dollar fell 11.5 basis points (0.15%) to 78.974, 'bout the same place it stood on Friday. Euro fell 0.03% (get out your microscope) to 1.3194, yen rose 0.04% to 128.92c/Y100 (Y77.57/US$1). Euro is trying to fall out of bed.

SPECIAL OFFER

Somebody asked me why, if I think gold will rise, I would sell gold coins. Simply because I make my living buying and selling gold, and if I held on to everything I bought, I'd be out of business in about two days.

But why these special offers? Because they offer some special value. Maybe I've been accumulating them for a while at lower prices, and so can sell them cheaper than usual, or maybe they just backed up in my inventory and I want to clean them out. Either way, my problem is your opportunity.

Today I have ONLY six US $20 gold pieces I have accumulated over time. You buy them as is. Remember, they contain only 0.9675 troy ounce fine gold. I priced them based on $1,723 spot gold, and the premium is shown with each.

The Liberty $20 gold was minted before 1907. The St. Gaudens from 1907 -1934.

MINIMUM PURCHASE: any Two (2) coins, plus $25 per order shipping. Any problems with the coins are fully described.

I'm not selling these as collector's items, but simply as gold coins at a small premium over their gold content. I am selling them "as is."

1. One 1879-S which might be an Extremely Fine grade but isn't because it has a heavy scratch on the obverse, $1,750.00 (a 5% premium over gold value).

2. One 1885-S which might be an EF grace but isn't because somebody cleaned it and it has scratches on the reverse, $1,750.00 (a 5% premium over gold)

3. One 1892-S Extremely Fine grade, no problems, $1,760.00, at 5.6% premium over melt.

4. One 1904 About Uncirculated, no problems, $1,780.00 or a 6.8% premium over gold value

5. One 1904 that surely would have graded VF but somebody polished it and it has a little edge bruise, $1,750.00 (a 5% premium over melt)

6. One 1924 (St. Gaudens type) About Uncirculated with a small scratch on the reverse, $1,780.00 (6.8% premium).

Sorry, no re-orders at these prices. Offer ends when my supply runs out.

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 at .

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 $1,723.00. ORDERING INSTRUCTIONS:

1. You may order by e-mail only to . No phone orders, please.

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, your email 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.

Mention goldprice.org in the email.

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.

What Does the Bank of England Think Its Doing?

Posted: 13 Feb 2012 09:21 AM PST

Bullion Vault


Goodbye to Russia as Barrick to exit Roman Abramovich gold venture

Posted: 13 Feb 2012 09:14 AM PST

Barrick Gold, the world's biggest gold producer, has put its stake in a Russian miner backed by Chelsea owner Roman Abramovich up for sale - a move seen as marking its exit from the region.


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