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Saturday, February 25, 2012

Gold World News Flash

Gold World News Flash

The Coming Storm

Posted: 24 Feb 2012 04:46 PM PST

from The Victory Report:

Storm Clouds
The current state of finance continues to change at rapid pace and global economies have slowed to levels significantly less than experienced in decades. The time has come to accept things are not as they once were and what we experience is not a regular economic cycle. Individuals prepared to navigate through this new climate will emerge when the storm is over, as the architects of tomorrow. Preparing requires; planning, an understanding of and the ability to economize, the capacity to be flexible, and thinking outside the ideas of what has been considered "normal".

Danger Past and Present
The financial crisis of 2008 was a result of fraudulent and deceptive financial instruments created by "too big to fail" banks. Even with unquestionable evidence of financial crimes, no one went to jail. Instead, criminals like Angelo Mozilo, Dick Fuld, and the latest to join the club Jon Corzine, are sipping cocktails on the coast. What was their punishment for predatory lending and theft? The answer is very little, and taxpayers will pay for their misconduct for decades to come. When people steal and get away with it, they are likely to do it again. The same types of financial transgressions that ensued in 2008, exist today.

Slow Burn
Take a close look around. Has the economy gotten better? Regrettably the music has stopped and the collapse is visibly in progress. If you believe the dangers that jeopardized the world the way we know it are behind us, you may experience what is called normalcy bias.

Read More @ thevictoryreport.org

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Almost 3% and 7% on the Week

Posted: 24 Feb 2012 04:00 PM PST

Gold rose a few dollars to $1782.85 in Asia before it fell back to $1770.60 in New York, but it then bounced back higher in late trade and ended with a loss of just 0.42%. Silver surged to $35.707 in Asia before if fell back to $35.185 by a little after 8AM EST, but it then bounced back higher in New York and ended unchanged on the day.


Silver Update: 2/24/12 – Silver Salvage

Posted: 24 Feb 2012 03:39 PM PST

Happy New Year! Iran War to Start by March 20th?

Posted: 24 Feb 2012 02:57 PM PST

from The Daily Bell:

Iran Is Celebrating the New Year by Ditching the Dollar … March 20th is a holiday in Iran. It is called NOWRUZ and it's the equivalent of New Year's Day. On the Iranian calendar it ties in with the vernal equinox (the first day of spring). The holiday's roots are based in the ancient religion of Zoroastrianism and it is considered the biggest holiday of the year in the country. Generally the Persian New Year is celebrated by a symbolic purging of the home and spiritual representation of creation and fertility. Families get together and traditional feasts are consumed. This year, though Iran is doing something a little different to celebrate the New Year and the result may be fireworks of a less than celebratory nature. This year Iran is changing it's policy for payment of oil. Iran will no longer accept the US dollar and will be looking for other currencies and commodities instead. – DaisyLutherblogspot.

Dominant Social Theme: Iran is simply out of control. A war would be justified.

Free-Market Analysis: Whoever Daisy Luther is, she (apparently a "she") writes good libertarian-oriented articles. The one we've excerpted, above, clearly states the case as to why Iran might be attacked.

The Iran Oil Bourse, as she points out, "has been actively seeking alternative currencies and commodities in trade for the oil produced there. The Bourse has directly approached Japan, Russia and China to negotiate payments in other currencies."

Read More @ TheDailyBell.com

Gerald Celente, the Kleptocrat's Carry-Trade and the Revolution Against Financial Occupation

Posted: 24 Feb 2012 01:36 PM PST

from CapitalAccount:

A US lawmaker is reportedly planning to introduce the "Sound Dollar Act" early next month. This is legislation that would move the federal reserve from its dual mandate of maintaining price stability (which is anathema to the dollar debasement that it creates through its massive money printing operations) and keeping unemployment low (which it has failed to do…curious…) to just promoting price stability. Hmmm…what would that mean for the Fed's unofficial mandate of trashing the dollar?

And Turkey, the fastest growing economy after China, is being penalized in the credit markets for failing to promote consumer savings, according to bloomberg. What? You mean savings matter!! That's amazing…ummm not to us it isn't. You can't have economic growth without savings, because you can't have investment without capital. Capital comes form savings, and growth comes from investment, but its shocking how many people think money "grows on tress." Can you blame them, when we have a serial money printer at the Federal Reserve, pushing us all into serfdom and neo-feudalism with a policy of perpetual bailouts and zero percent interest rates? Oligarchy here we come!

Finally, with central bank policies of the fed and ECB amounting to –trash for cash — as economist David McWilliams puts it with his "Punk Economics: Lesson 2," turning "water into wine." These perpetual bailouts are nothing other than an institutional form of wealth transfer. They are nothing but wealth extraction, moving money from the bottom of society, to the top. The money changers. The banksters. The feudal lords. The money chieftains. Call them what you will. They are kleptocrats, and using compounding interest in order to pound society back into the feudal period of landless serfdom.

We speak with our guest, famed trends forecaster Gerald Celente about Greece, the global banking kleptocracy and the attempt by financial oligarchies to occupy the world using paper derivatives index to nothing but wealth extraction.

Grantham Nails It: "The Industry So Much Prefers Bullishness...So Does The Press"

Posted: 24 Feb 2012 01:35 PM PST

In his most recent quarterly letter titled appropriately enough "The Longest Quarterly Letter Ever" GMO's Jeremy Grantham literally kills it. Well, maybe not literally but certainly metaphorically.

Do yourself a favor and read the whole thing cover to cover, but in the meantime here is a choice selection:

Believe in history. In investing Santayana is right: history repeats and repeats, and forget it at your peril. All bubbles break, all investment frenzies pass away. You absolutely must ignore the vested interests of the industry and the inevitable cheerleaders who will assure you that this time it's a new high plateau or a permanently higher level of productivity, even if that view comes from the Federal Reserve itself. No. Make that, especially if it comes from there. The market is gloriously inefficient and wanders far from fair price but eventually, after breaking your heart and your patience (and, for professionals, those of their clients too), it will go back to fair value. Your task is to survive until that happens. 

...

Try to contain natural optimism. Optimism has probably been a positive survival characteristic. Our species is optimistic, and successful people are probably more optimistic than average. Some societies are also more optimistic than others: the U.S. and Australia are my two picks. I'm sure (but I'm glad I don't have to prove it) that it has a lot to do with their economic success. The U.S. in particular encourages risk-taking: failed entrepreneurs are valued, not shunned. While 800 internet start-ups in the U.S. rather than Germany's more modest 80 are likely to lose a lot more money, a few of those 800 turn out to be today's Amazons and Facebooks. You don't have to be better; the laws of averages will look after it for you. But optimism comes with a downside, especially for investors: optimists don't like to hear bad news. Tell a European you think there's a housing bubble and you'll have a reasonable discussion. Tell an Australian and you'll have World War III. Been there, done that! And in a real stock bubble like that of 2000, bearish news in the U.S. will be greeted like news of the bubonic plague; bearish professionals will be fired just to avoid the dissonance of hearing the bear case, and this is an example where the better the case is made, the more unpleasantness it will elicit. Here again it is easier for an individual to stay cool than it is for a professional who is surrounded by hot news all day long (and sometimes irate clients too). Not easy, but easier.

...

Resist the crowd: cherish numbers only. We can agree that in real life as opposed to theoretical life, this is the hardest advice to take: the enthusiasm of a crowd is hard to resist. Watching neighbors get rich at the end of a bubble while you sit it out patiently is pure torture. The best way to resist is to do your own simple measurements of value, or find a reliable source (and check their calculations from time to time). Then hero-worship the numbers and try to ignore everything else. Ignore especially short-term news: the ebb and flow of economic and political news is irrelevant. Stock values are based on their entire future value of dividends and earnings going out many decades into the future. Shorter-term economic dips have no appreciable long-term effect on individual companies, let alone the broad asset classes that you should concentrate on. Leave those complexities to the professionals, who will on average lose money trying to decipher them

...

If you can be patient and ignore the crowd, you will likely win. But to imagine you can, and to then adopt a flawed approach that allows you to be seduced or intimidated by the crowd into jumping in late or getting out early is to guarantee a pure disaster. You must know your pain and patience thresholds accurately and not play over your head. If you cannot resist temptation, you absolutely MUST NOT manage your own money. There are no Investors Anonymous meetings to attend.

...

On the other hand, if you have patience, a decent pain threshold, an ability to withstand herd mentality, perhaps one credit of college level math, and a reputation for common sense, then go for it. In my opinion, you hold enough cards and will beat most professionals (which is sadly, but realistically, a relatively modest hurdle) and may even do very well indeed.

...

the current U.S. capitalist system appears to contain some potentially fatal flaws. Therefore, we should ask what it would take for our system to evolve in time to save our bacon. Clearly, a better balance with regulations would be a help. This requires reasonably enlightened regulations, which are unlikely to be produced until big money's influence in Congress, and particularly in elections, decreases. This would necessitate legal changes all the way up to the Supreme Court. It's a long haul, but a handful of other democratic countries in northern Europe have been successful, and with the stakes so high we have little alternative but to change our ways.

...

Karl Marx went on and on about the tendency of capitalism to so fixate on growth that in time it would forget the need to put on a friendly face for society and would drive home too clearly and brutally its advantage over labor. Ironically, in some way he and Engels looked forward to globalization and the supranational company because they argued it would make capitalism even more powerful, over reaching, and eventually reckless. It would, they claimed, offer the capitalists more rope to hang themselves with or, rather, to be hung with, in the workers' revolution. The rope for the job, they suggested with black humor, would be bought from briskly competing capitalists, eager till the end for a good deal. Well, time marches on and it's going to be hard to have a workers' revolution with no workers. Organizing robotic machine tools will not be easy. However, Marx and Engels certainly got the part right about globalization and the supranational company increasing the power of capital at the expense of labor. To interfere with Marx's apocalyptic vision, we need some enlightened governmental moderation of the new globalized Juggernaut (even slightly enlightened would be encouraging) before capitalism gets so cocky that we have some serious social reaction.

...

Capitalism, by ignoring the finite nature of resources and by neglecting the long-term well-being of the planet and its potentially crucial biodiversity, threatens our existence. Fifty and one-hundred-year horizons are important despite the "tyranny of the discount rate," and grandchildren do have value. My conclusion is that capitalism does admittedly do a thousand things better than other systems: it only currently fails in two or three. Unfortunately for us all, even a single one of these failings may bring capitalism down and us with it.

...

the S&P 500 is materially overpriced, with an imputed return on our 7-year forecast of about 1% real, and because the high quality quarter of the S&P is priced to deliver 5.5% real (about a fair return), the 75% balance of the S&P has a slightly negative return. The rest of the world's equities were (when I sat down to write this in January) on average slightly cheap at close to 7% real, so that non U.S. equities plus U.S. quality stocks offered a slightly higher average return than normal (a normal mix is about 6.1% real). (Today, after a dazzling rally, the forecast for the same global equity mix has dropped by 1.1%, to very slightly expensive.)

....

The 800-pound gorilla (the one that prefers bond holders to bamboo) is not in the room yet, but you can hear him thumping his chest up in the hills. He will come eventually, and before he does, you should remember that stocks are underrated inflation hedges. The underlying corporations have real assets, employ real people, and sometime even make real things, although a good idea embedded in a small thing (like an iPad) or a service is just as good. Equities have been tested over and over again in different places and in different decades and they have always been found to be very effective hedges. Serious resources – oil and copper in the ground and forestry and farmland – will almost certainly also be good and very probably much better than broad stocks in the short run. Gold may be good too.... But for stocks to work dependably as inflation hedges one has to have a several-year time horizon: in the short term, rising inflation can hurt stocks badly, for as mentioned last quarter, inflation is usually a powerful negative behavioral input. Investors hate jumps in inflation because they sharply raise the levels of uncertainty.

...

When I read the 120 contradictory bits of advice in the Financial Times alone, I find myself asking the question: who is an expert? To the extent that anyone has profitably specialized in this type of problem, I suppose it is George Soros. There are also, in my opinion, one or two investment management groups that seem to talk sense (which groups will go nameless for weasely competitive reasons). This is the problem: these probable experts are much more worried than the general market. This fact is giving rise to a new, tentative but definitely uncomfortable theory: perhaps the default assumption when dealing with ignorance or lack of confidence and skill is to assume everything will muddle through okay. Certainly we were amazed by this attitude generally displayed by the world (and most competitors) in the build-up to the 2000 and 2008 bubbles. Now we at GMO are calmly sitting around playing equities by the numbers, which are not too bad, and the market in general seems quite relaxed, while those few who look like experts on this crisis are pulling out their hair in fright. As I said, this is just a theory. But it is scary.

... and the punchline ....

The U.S. market was terrible for the last 10 years, gaining a pathetic 0.5% per year overall, after inflation adjustments and even including dividends. Without dividends, the index itself has not gone up a penny in real terms from mid-1997 to end-2011, or 14½ years. This is getting to be a long time! Are we expected to be bullish out of patriotism? You might think so given the flood of optimistic views for the last 10 years (or is it 100?). The industry so much prefers bullishness. It is much, much better for business. So, in general, does the press, and I do sympathize – optimism really does make for more compelling reading. I'll tell you what. Try taking it out on the army of well-known bulls who blew the trumpets in 1999 and 2007 and waved everyone into the rather bloody breach. (Did you know that trumpeters were killed out of hand in the Middle Ages because of their pernicious role? How about that for a precedent when we get to the next burst bubble?)

Alas, now it's different.

Full letter (pdf)

 

By the Numbers for the Week Ending February 24

Posted: 24 Feb 2012 01:08 PM PST

HOUSTON --  Just below is this week's closing table. 

20120224-Table

If the image is too small click on it for a larger version.

That is all for now, but there is more to come.       

Bloody Revolution in Syria, Iran Cuts off Oil to Europe and More: Weekly News Wrap-Up

Posted: 24 Feb 2012 12:47 PM PST

Oil is well over $100 per barrel and gold is inching towards $1800 an ounce. Before it's all over, both will be much higher,


FOFOA: Today's (quote-unquote) "Gold"

Posted: 24 Feb 2012 11:59 AM PST

Once the flow of "gold the wealth reserve" (physical gold only) is credibly reestablished at the revalued Freegold price, the savers will eat it up...


Now China is Venezuela's partner in developing Las Cristinas gold project

Posted: 24 Feb 2012 11:55 AM PST

Venezuela to Develop Las Cristinas Gold Mine with China

From Reuters
Friday, February 24, 2012

http://www.reuters.com/article/2012/02/24/venezuela-gold-idUSL2E8DOBTT20...

Venezuela will develop its huge Las Cristinas gold project in partnership with Chinese state investment company CITIC, President Hugo Chavez announced on Friday.

The government last year canceled Canadian company Crystallex International's permit to develop the long-troubled mine project south of the Orinoco River.

Russian-Canadian miner Rusoro had hoped to partner with Venezuela in what could be Latin America's largest gold deposit. Las Cristinas has estimated reserves of 17 million ounces.

... Dispatch continues below ...

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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


In a meeting with Chinese investors, Chavez said he was firming "an agreement with CITIC for the joint development of Las Cristinas." He gave no details.

Chavez, who was speaking at his last meeting before flying to Cuba for cancer treatment, has brought Venezuela ever closer to China in terms of business and political ties during his 13-year rule of the South American OPEC member.

Development of the Las Cristinas mine, near a town bearing the name of the mythical golden city of El Dorado, has dragged for decades due to a mixture of bureaucratic, political and financing issues.

Some locals say the mine is cursed.

* * *

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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...

Euphoria Shifts From Stocks To Commodities

Posted: 24 Feb 2012 11:46 AM PST

from ZeroHedge:

Silver and Gold remain the major outperformers year-to-date but the rest of commodities – most notably oil is catching up very fast having over taken stocks this week. It appears that the new-found flood of liquidity that we have been so passionately banging the table on for weeks, has found its way into the energy complex as European Sovereigns, European Financials, European Stocks, and US Stocks have all flattened or turned down as Crude and WTI surge. And as a hint to anyone who hasn't jumped on this tidal movement yet, one thing to note is that unlike stocks, commodities always have the risk of marginal or weak hands being shaken out via CME…margin hikes.

Read More @ ZeroHedge.com

Cartel Dumps 102.5 Million Ounces of Paper Silver in 7 Minutes, Yet RAID FAILS!

Posted: 24 Feb 2012 11:36 AM PST

Check out the following price and volume chart screen shot


IS The United States Bankrupt?

Posted: 24 Feb 2012 09:56 AM PST

"it depends on what the meaning of the word 'IS' is"  - Bill Clinton




Have a great weekend.  I hope everyone has been accumulating gold and silver at these fire sale prices.

Gold and Silver Disaggregated COT Report (DCOT) for February 24

Posted: 24 Feb 2012 09:49 AM PST

This week's Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report suggests once again stepped up "opposition" to the advances in the prices for gold and silver as of Tuesday.  However, it also suggests that speculators had a somewhat larger appetite than the hedgers with gold at $1,758 and silver sporting a $34 handle.  Both metals finished the week considerably higher (gold about to settle in the $1,773 neighborhood and silver near $35.40).  

In the DCOT table below a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting "longer" and red figures are traders getting less long or shorter.

All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.

20120224-DCOT

(DCOT Table for Friday, February 24, 2012, for data as of the close on Tuesday, February 21.   Source CFTC for COT data, Cash Market for gold and silver.)  
Continued...

Vultures, (Got Gold Report Subscribers) please note that updates to our linked technical charts, including our comments about the COT reports and the week's technical changes, should be completed by the usual time on Sunday evening (around 18:00 ET).   Please note changes to our trading stop for the silver trade then. 

As a reminder, the linked charts for gold, silver, mining shares indexes and important ratios are located in the subscriber pages.  In addition Vultures have access anytime to all 30-something Vulture Bargain (VB) and Vulture Bargain Candidates of Interest (VBCI) tracking charts – the small resource-related companies that we attempt to game here at Got Gold Report.   Continue to look for new commentary often. 

Why Gas Prices Are Actually Falling

Posted: 24 Feb 2012 09:40 AM PST

In a world of rising gasoline prices, Forbes tells us that gasoline prices are not actually rising, and in fact are lower than ever. And they ain’t lyin’! Writing for Forbes Louis Woodhill gets this seeming contradiction right. He views the price of gas not in terms of the depreciating monopoly money issued by the politically-empowered central bank…but in terms of the market’s favorite money: gold. When viewed in relation to gold, gas prices are low…only 82% of their average over the past 41 years. Gas prices aren’t high. The dollar is just falling, its value being undermined by politically-driven over-issue. So if you count the Fed-issued dollars as money — and are actually using it as a savings vehicles — then your world is being rocked by rising gas prices (and rising prices in everything else, too, except for computing power). But it’s not just the rising prices of everything that threaten all of us. In his article Mr. Wood...


Ben Davies - Central Bank Buying Has Gold Shorts Trapped

Posted: 24 Feb 2012 09:24 AM PST

A bigger player (and a new player) came into the market and it's a central bank and that tells me the market is going higher.


Guest Post" The "Housing Recovery" In One Index

Posted: 24 Feb 2012 09:13 AM PST

Submitted by Lance Robert of StreetTalk Live

The Housing Recovery In One Index

housing-totalactivityindex-022412There have been numerous media stories out over the last couple of weeks about the recovery in housing at long last.   Of course, this is the same housing bottom call that we heard in 2009, 2010 and 2011 - so why not drag it out again for 2012.  Eventually, the call will be right and they will be anointed with oils and proclaimed to be the gurus that called the bottom.  In the financial world you only have to be right once.

However, back on earth, where things really matter, housing is a major contributing component to long term economic recovery.  Each dollar sunk into new housing construction has a large multiplier effect back on the overall economy.  No economic recovery in history has started without housing leading the way.  So, yes, housing is really just that important and we should all want it to recover and soon.  The calls for a bottom in housing now, however, may be a bit premature as I will explain.

The Total Housing Activity Index shown here is a composite of the sales of new and existing homes, new construction permits for single family homes and new single family home starts.  As you can see we are still near the same lows that we were in 2009 at the end of the recession.  Furthermore, and what is really worse, is that the "recovery" was built on the bank of a whole slew of tax payer funded bailouts, tax credits and incentives from HAMP to HARP to the Home Buyer Tax Credit.  Not quite the recovery the government was hoping for.

shadow-inventory-020912The recent bumps in housing have been due to the warmest winter on record in the last 5 years which is skewing the seasonal adjustments.  With 1 in 4 home owners under some form of duress with their mortgage it is only a function of time until a further erosion in price resumes particularly as banks start to deal with the backlog of foreclosures and delinquencies that are on their books.

The bottom line here is that while we have witnessed a very mild recovery in housing from the depths of the abyss; it is important to not forget that it has been with the help of a large amount of artificial support including the zero interest rate policy by the Fed and "Operation Twist" which has suppressed interest rates on mortgages to historic lows.  That won't last forever and as we wrote in our article on "Why Home Prices Have Much Further To Fall" people buy payments not home prices. 

The shear magnitude of the TOTAL inventory that must be cleared, the potential for rising interest rates, a weak employment market (no job=no house), declining real incomes and rising inflationary pressures will likely keep the housing market suppressed and disappointing for quite a while in the future.  This is just a function of economics.

Maybe we have seen the low point in housing?   Maybe the bottom truly has been put in?  A bottom, however, doesn't mean that a sharp rise in prices or activity is just around the corner.   This particular patient could very well remain comatose for much longer than people expect.

Banking Cartel Prepares 17 tonne Silver Heist

Posted: 24 Feb 2012 09:13 AM PST

17 tonnes of silver historical significance are about to become the property of Spain, which then be required to hand over the silver to the banksters


Ty Andros Says The Golden Reality Is Starting To Dawn–02-24-2012

Posted: 24 Feb 2012 08:44 AM PST

Ty Andros, of Traderview, joins us again this week to review the current global economic events. The head of the European Central Bank has started telling the truth, and the world might never be the same.  Socialism just isn't working out like the brilliant architects of the collectivist scheme planned. In fact, they're collapsing faster than anyone ever thought possible. Europe and the US must eliminate needless regulations and cut taxes to unleash the private sector.

Tax increases, like those in the UK, have not yielded the tax revenues that were anticipated. Increased taxation on the rich never works because the wealthy can determine when and if they are going to recognize income and how much taxes they will pay. The system has been designed to accomplish this end, and it has been very effective. There is no way redistributive systems will ever succeed. Therefore, the best thing the government can do is get out of the way and allow the free market to enrich all of society. Capitalism has always worked this way, and it always will.

During our chat, Ty also questioned the use of Greece's gold reserves in an effort to collateralize new loans. When Greece ultimately defaults, this will leave the country completely impoverished, and it will result in years of impoverishment to the population. Ty fears the US's gold is gone or has long since been sold off. We hope his opinion is incorrect, but we've seen far too many governmental schemes to think otherwise. But at some point, we will all learn the truth.

Please fill out the subscription box on KerryLutz.com to receive your free Financial Survival Toolkit.


This posting includes an audio/video/photo media file: Download Now

Gold to Assault November High

Posted: 24 Feb 2012 08:19 AM PST

Daily FX (Feb 24) — "Gold's break higher shifts focus to the November high at 1813.30, the 61.8% extension of the 1527.30-1764 rally at 1853.85 and ultimately the September and all time high at 1932.60." Near term structure remains bullish with the recent pullback probably composing a small 4th wave. 1773 is support.

Bottom Line – Higher

[Source]

Gold Daily and Silver Weekly Charts

Posted: 24 Feb 2012 08:17 AM PST


This posting includes an audio/video/photo media file: Download Now

Gold, Silver Juniors Should Shine in 2012: Mark Raguz

Posted: 24 Feb 2012 08:02 AM PST

The Gold Report: Mark, what do you think will determine Pinetree Capital Ltd.'s (PNP:TSX) success in 2012, especially regarding the junior resource sector? Mark Raguz: What we need to see is the embracing of less risk aversion and the desire of investors to move further along the liquidity curve toward the junior resource space. There are signs this is starting to happen. In the meantime, we believe we can add value by drawing on our expertise in the resource sector and filtering out the best names, whose value might be realized over time. TGR: How do you determine the best names? MR: We see things very early and we look at a lot of different names. Finding the gems becomes a lot easier as we have a lot of experience in this area and a lot of comparables to use because of the amount of companies we look at. My goal is to draw out the best management teams with the best assets, given our exposure to most of the names in the space. TGR: Based on your experience in previous cycles,...


Fingers of Instability

Posted: 24 Feb 2012 08:02 AM PST

Author: David Galland Synopsis: A scientific study of sand piles sheds light on the likelihood of another market crash. Dear Reader, Earlier this week, I wrote an article "Ben Graham's Curse on Gold" for John Mauldin's excellent weekly service, Outside the Box. While the article has been fairly widely picked up – and by those stuck in a conventional mind-set, roundly lambasted (as anticipated) – you might enjoy it. The article expands on something we touched on in The Casey Report a few months back, namely that an underlying reason so many mainstream brokers and analysts – and by extension, their clients – have missed the gold bandwagon so far has to do with the blank spot in Benjamin Graham's career, most of which occurred when private gold ownership was illegal. Rather than recap the whole story here, please read it if you haven't yet done so. Call it a mutual-...


Gold bullion or cash? And GATA's secretary interviewed

Posted: 24 Feb 2012 07:49 AM PST

3:48p ET Thursday, February 23, 2012

Dear Friend of GATA and Gold:

Our friends at GoldCore in Ireland have put together a catchy 4 1/2-minute video commercial detailing the superiority of gold over government currency as a vehicle for savings. It's titled "Gold Bullion or Cash?" and it's posted at YouTube here:

http://www.youtube.com/watch?v=-HaqwFJj4ZY

And Dan Ameduri of Future Money Trends interviewed your secretary/treasurer this month during Cambridge House's California Investment Conference in Indian Wells. I tried to explain how gold price suppression is not "conspiracy theory" but rather longstanding public policy, much of it on the public record. That interview is 12 minutes long and it's posted at Future Money Trends here:

http://futuremoneytrends.com/index.php/category-table/142-chris-powell

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:

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

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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

Gold and Silver Stocks' Wild Ride Ahead: Greg McCoach

Posted: 24 Feb 2012 07:35 AM PST

The AU Report (Feb 20) — "I think in the immediate term it's very difficult to predict, but before year-end we're going to run to the next new highs in gold and silver. I would expect gold to be well above the $2,100/oz level in this next run with silver pushing toward $70/oz. The driver for this will be QE3 and the stoppage of the manipulation game in New York on the Comex. That game has been played for a long time now, over 15 years in my opinion, but will soon be vacated by the shorts due to horrendous losses as other big players—Russia and China—fight against them."

"In the longer term, the end game for all this debt and fiat currency insanity will take gold to a minimum of $6,500/oz. In reality, it will probably go much higher than that as governments topple and civil unrest unfolds. As an example, if you took all the current debts known to the world in the system right now and had to cover those debts with gold, it would take a price of $19,500/oz to do so! Of course, this is just one methodology of trying to figure out just how high gold could go, but I think you get the picture. What I am trying to say is that my $6,500/oz number is probably very conservative. How long is it going to take to get there? I don't have a crystal ball. Those prices would happen as the world financial system hits systemic collapse."

"In this next run higher for this year, gold could easily hit $2,500/oz to $3,000/oz, depending on how much QE3 is injected into the system. The more QE3 that is done, the higher the precious metals prices would go. Also, the vacating short situation on the Comex could be a big swing factor. Silver could easily see $70, $75, even $80/oz if these events occur this year as I expect. That's also going to lift our junior mining shares and get them going once again."

[Source]

COT Gold, Silver and US Dollar Index Report - February 24, 2012

Posted: 24 Feb 2012 07:32 AM PST

COT Gold, Silver and US Dollar Index Report - February 24, 2012


New all-time highs for gold may only be days away

Posted: 24 Feb 2012 07:31 AM PST

Four key elements suggest that gold is due for a break-out from its current trading range & point to a move very soon with new highs by the summer


Gold Price Hovers Near 3-Month High

Posted: 24 Feb 2012 07:25 AM PST

IB Times (Feb 24) — GOLD PRICE NEWS – The gold price ­traded near unchanged Friday, hovering near $1,780 per ounce. The spot price of gold climbed to $1,789.10 – the highest level since November 11, 2011 – during yesterday's session, but pared its gains as short-term traders took profits in the yellow metal. With its slight advance, the gold price extended its weekly and year-to-date gains to 3.4% and 13.8%, respectively.

While the gold price held near unchanged yesterday, silver continued its ascent. The price of silver jumped $0.94, or 2.7%, to $35.42 per ounce amid widespread strength in commodities and weakness in the U.S. dollar. Thus far in 2012, silver has now surged 27.8%, making it one of the best performing asset classes this year.

Another standout performer in the commodities complex was crude oil, which rallied to a nine-month high above $108 per barrel as geopolitical tensions in Iran provided a solid underpinning. Nikos Kavalis, a strategist at Royal Bank of Scotland, noted in a report that "The fact that we have Iran in the background is certainly helping through higher oil prices, which are a negative for most other industrial commodities. But for gold, it's positive as it boosts inflation-hedging and boosts its safe-haven attributes."

[Source]

Gold Stocks Nearing End of Wall of Worry Stage

Posted: 24 Feb 2012 07:22 AM PST

Over the past few months we’ve analyzed gold stocks from a historical perspective. We’ve compared this bull market to the past bull market as well as historical bull markets in equities. We’ve found that nothing is out of the ordinary. Gold stocks are not being manipulated. In fact, this bull market is actually ahead of the bull market in the 1960s and 1970s. They are following a typical bull market which evolves in three stages: the stealth phase, the wall of worry phase then the bubble or public phase. The wall of worry stage entails many twists and turns and marginal new highs along the way. Profits continue to rise but valuations drop as investors remember the first major correction of the bull market. Gold Stocks have quietly rebuilt momentum. GDX reversed its breakdown in January and has steadily climbed back. One thing of note, the daily RSI has not pierced 70 since May 2010. Momentum has subdued for almost two years while the gold stocks have not ...


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