Gold World News Flash |
- Richard Russell - Gold to Take Out $1,800 as Tangibles Soar
- CAPITALISM MAKES SOCIALISM ACCEPTABLE
- Gold Seeker Closing Report: Gold and Silver End Slightly Lower
- UPDATE: $15 Trillion Bond Fraud to Prop up the U.S. Dollar?
- Silver Update: 2/27/12 Global Ponzi
- Living With Snipers: The Reality of Collapse *Photos; Video*
- 20 Signs That Dust Bowl Conditions Will Soon Return To The Heartland Of America
- No, ITG, Zero Hedge Would Prefer To Not Regulate You Either
- Japan may be bailing out Europe in secret, economist Mosler says
- Something big imminent for metals, Turk tells King World News
- In The News Today
- “The UK Has Run Out Of Money” – George Osborne
- The Curious Warren Buffet
- G20 Meeting a Complete Failure / Gold and Silver / Greece in Selective Default S & P
- Gold Support at 1750
- Buy Gold...schlager: Booze Inflation Highest In 20 Years
- Gold and Silver Update: Feb 27, 2012
- The Gold Price May Fall to $1,745 Touching the September Downtrend Before Shooting up
- Gold and Silver Update
- Gold encountering resistance near $1780
- The Ultimate Conspiracy Theory: “The People are out to Get U.S.!”
- Gold and Silver Stocks Poised to Recover in 2012
- Guest Post: Guess Who Folded Now
- Flash Crash Times 100?
- Broad Risk-Off Day - Apart From Stocks
- Gold Daily and Silver Weekly Charts - SP Cuts Greece to 'Selective Default'
- Turk - Something Big is About to Happen in Gold & Silver
- Why This Isn't Your Father's Gold Market
- “Ranting” Andy Hoffman Watches the Gold Tide Come In–02-27-2012
| Richard Russell - Gold to Take Out $1,800 as Tangibles Soar Posted: 27 Feb 2012 04:21 PM PST  With many high net worth individuals continuing to exit paper money, today the Godfather of newsletter writers, Richard Russell, had this to say about gold, fine jewelry, fine art, the economy and more: "What we're seeing now is flagrant divergence in the D-J Averages with volume sinking precipitously. This is a dangerous situation -- acute divergence in the Averages on sinking volume -- not good, not good at all. I feel that low volume in this case is highly significant. It's as though the very heart of the market is whispering 'caution,' as the smart money pulls back on its buying. It's notable that volume picks up on days when the market is down (a sign of institutional selling)."
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| CAPITALISM MAKES SOCIALISM ACCEPTABLE Posted: 27 Feb 2012 04:07 PM PST  The MMR conversation on savings and investment has now raged to over 600 comments. It would be an understatement to say that the conversation has been illuminating. To me, one of the more interesting facets of this discussion is the fact that we have MMTers, horizontalists (like Ramanan), MMRists and previously undecideds (like the mysterious JKH) all agreeing! I think this speaks volumes about the merits of what MMR is building. Our flexible, fact based and apolitical approach is proving agreeable to many and I hope we'll continue to embrace even those who might disagree with much of what we say.But the most illuminating point that came from the discussions was the point on S = I + (S-I), where S = Savings, I = Investment. Now, for the layman, I will try to break this down as best I can so bear with me. What we learn from the sectoral balances approach is that the government's deficit is the non-government's surplus. If the government taxed all your assets at a rate of 100% then you'd have no dollar denominated assets. That's simple enough. The sectoral balances is a powerful concept as it highlights the power of the government and helps explain why a sovereign currency issuer might run persistent budget deficits without running into a Greek problem (the USA for instance has pretty much always run deficits so the idea that deficits are inherently bad, is inherently wrong!). But when we break this equation down we have to be very precise about what it means because improper explanation will lead one to put the cart before the horse. Read more...... 
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| Gold Seeker Closing Report: Gold and Silver End Slightly Lower Posted: 27 Feb 2012 04:00 PM PST Gold fell to $1761.83 by about 6AM EST before it climbed to as high as $1779.17 by late morning in New York, but it then fell back off in late trade and ended with a loss of 0.31%. Silver slipped to $35.04 in London before it rose to as high as $35.60 in New York, but it also fell back off in late trade and ended with a loss of 0.06%.
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| UPDATE: $15 Trillion Bond Fraud to Prop up the U.S. Dollar? Posted: 27 Feb 2012 03:44 PM PST by Jason Hamlin, GoldStockBull.com: "The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks." — Lord Acton It reads right out of a fictional spy novel and is quite interesting considering the scale of the potential money laundering fraud – $15 TRILLION! The plot involves the US government lying about hundreds of thousands of tons of imaginary gold, illegal wire transfers and loans or counterfeiting totalling $15 trillion used to prop up the U.S. dollar as bond buyers have disappeared.
This staggering amount of $15 Trillion matches the total amount of the U.S. 'official' debt. It would be easy to dismiss this story on the surface as fake, but the funds were apparently cleared and accepted by senior executives at both HSBC and the Royal Bank of Scotland. Lord James of Blackheath, a member of the UK House of Lords, has done his research and claims that the $15 trillion is the property of what some people have called "the richest man in the world", Yohannes Riyadi. My Riyadi is supposedly descendent of the emperors of the Indo-China dynasty. At farfetched as it sounds, Lord James of Blackheath claims to have seen some of his accounts, showing that he owns upwards of $36 trillion. Others point to the fact that the name Yohannes Riyadi is listed on the NY FED website in connection with other bonds scams. However, an original copy of the document has been unveiled with the signature of Ben Bernanke.
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| Silver Update: 2/27/12 Global Ponzi Posted: 27 Feb 2012 03:40 PM PST |
| Living With Snipers: The Reality of Collapse *Photos; Video* Posted: 27 Feb 2012 03:36 PM PST by Mac Slavo, SHTFPlan.com:
Whether the cause is a natural disaster, economic and monetary calamity, political revolution, or armed conflict, the consequences for the general population can be severe. When just-in-time food and medicine distribution systems fail, utility infrastructures crumble, emergency response becomes non-existent, and the rule of law becomes unenforceable, only survival will matter.
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| 20 Signs That Dust Bowl Conditions Will Soon Return To The Heartland Of America Posted: 27 Feb 2012 03:31 PM PST from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| No, ITG, Zero Hedge Would Prefer To Not Regulate You Either Posted: 27 Feb 2012 03:00 PM PST While reading Advanced Trading today we stumbled across the following curious excerpt:
And here we were thinking that after three years of reading us, at least the supposedly more sophisticated market elements would have moved beyond merely pedestrian stereotypes. Alas, as always happens when we assume anything other than sheer stupidity, we end up 100% wrong. Here's the deal Jamie: Zero Hedge, knowing full well we are quite mortal, and as like everyone else - very susceptible to temptation - realize we too 'have our price', would have no interest in finding out just what said "price" may be, by succumbing to bribery or any other form of corruption by you and/or your HFT peers and competitors. Nor do we have an interest in pretending to "regulate" you for several years, then submitting our resumes to you, tired of five figure government jobs, and expecting some quid pro quo in exchange for all those years when we saw the HFT 'lobby' engage in gross market manipulation, and demanding some form of equitable recompense, preferably in a far better paying job but really anything with a lot of the zeros (that we enabled) at the end of it, would do. We have no interest in that. We realize that makes us different than the SEC. Because frankly, just like you, we also realize that the first entity to be purchased in any regulated venue, is none other than the regulator. Which in the absence of the SEC, we assume would be us. We have no interest in that either. But more importantly, we would not even dream of regulating you, or anyone else for that matter, because frankly, unlike the collapsing and insolvent status quo, we believe in the myth of a fair market, one where a room full of academics does not believe it is smarter than the collective rational whole of countless unitary market actors. We believe in a market that regulates itself. That means that the banks can go hog wild in loading up on CDOs, selling CDS, leveraging themselves 1000x times, and whatever else they fell like doing in pursuit of that ever more elusive ROE, but when they blow up, the blow up. Game over: not a penny in taxpayer money would ever be used to rescue them. That means abolishing the Fed, firing the 10 academics that determine the fate of the world on a daily basis, and letting the market itself determine the true cost of money. Of course, that also would mean scrapping generations of Ivy League-taught economists as their art, pardon science, is exposed to be the flawed and erroneous travesty that has led the world to a precipice, whose outcome could easily be global war next. Just like that last time. But that is irrelevant to you. What is relevant, is that we would most certainly let you and your "market-making, liquidity providing" colleagues run amok in the market, sub-pennying each other, stub quoting endlessly, churning and quote stuffing to the point where you and all your HFT peers drive the last remaining real investor out of the market, in the process sending volatility to record proportions and terminally breaking what's left of the a stock market. At that point the real cannibalization can begin, which is the only way that the market can eradicate itself of the scourge that is HFT - because what would happen then is the perfectly normal and long overdue reversion to the mean, long pushed away from its equilibrium point courtesy of endless artificial intervention propping up parasitic trading, or, said otherwise, your quarterly EPS bottom line, which of course, is all your care about. Incidentally we have seen what happens when HFT is not regulated, such as ever since the adoption of Reg NMS: first an algorithmic take over of all trading, then a flash crash, then hundreds of billions in retail capital outflows as the retail investors figure out what a sham (and scam) the marketplace truly is, and finally the collapse in volume, which as you well know Jamie, is the death knell for you and your peers. What is most ironic in all of this, is that the second before you pull the plug on your algos for the last time, as the hollow market collapses under its own weight, you will wish that Zero Hedge had been regulating you... It will be too late.
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| Japan may be bailing out Europe in secret, economist Mosler says Posted: 27 Feb 2012 01:10 PM PST 9:13p ET Monday, February 27, 2012 Dear Friend of GATA and Gold: If GATA has proved anything, apart from the rigging of the gold market by Western central banks for almost 80 years, it is that those central banks often lie and conceal, that even when they tell the truth it's far from the whole truth, and that their surreptitious manipulations conducted through intermediaries facilitates insider trading. So it's delightful when even a respected liberal economist like Warren Mosler implicitly comes to a similar conclusion, as he did today with his speculation that Japan is underwriting the bailout of Europe. Mosler writes: "I'm now thinking it may have been the Bank of Japan giving the nod to its member banks to buy euro-member debt denominated in euro and to keep the foreign exchange risk on their books, with the assurance that government policy would keep the yen weak and guarantee the banks an FX profit." Just three weeks ago GATA noted the disclosure by Dow Jones Newswires that the Bank of Japan was intervening in the currency market surreptitiously, through intermediary commercial banks, to devalue the yen: http://www.gata.org/node/11015 That fits very well with Mosler's speculation, which can be found at his blog here: http://moslereconomics.com/2012/02/27/ltro-birdie-telling-me-maybe-the-b... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Free Month Subscription to Market Force Analysis for GATA Supporters Market Force Analysis is a unique, patent-pending approach to commodity market analysis. 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| Something big imminent for metals, Turk tells King World News Posted: 27 Feb 2012 12:54 PM PST 8:54p ET Monday, February 27, 2012 Dear Friend of GATA and Gold: GoldMoney founder and GATA consultant James Turk tonight tells King World News that the continued strength of the precious metals after last week's strong gains signals that something big is about to happen. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/2/27_Tu... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix Discusses Royalty Mining Growth Strategy 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/ Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Be Part of a Chance to Discover Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries. -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600.
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| Posted: 27 Feb 2012 12:38 PM PST Jim Sinclair's Commentary Eric King of www.KingWorldNews.com has interviewed Egon von Greyerz on what he sees coming for the gold market in the next few weeks. Greyerz – Gold Will Trade Above $2,000 by the End of March Today Egon von Greyerz told King World News that we will see some major fireworks Continue reading In The News Today
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| “The UK Has Run Out Of Money” – George Osborne Posted: 27 Feb 2012 12:10 PM PST [Ed. Note: For anyone who takes issue with Andy Hoffman's recent $1,000+ Silver call, we advise that you add up the total amount of outstanding bonds (debt), credit cards (debt), mortgages (debt) and consumer debt on planet earth. Factor in the multi-trillion dollar budgetary shortfalls of nation states and regional governments. Add in a dash of under-funded pension funds, Social Security and Medicare. Tally up the hundreds of trillions in outstanding derivatives, and then divide it all by $30 billion or so in above-ground physical silver... then get back to us.] The Government 'has run out of money' and cannot afford debt-fuelled tax cuts or extra spending, George Osborne has admitted. by Rowena Mason, Telegraph.co.uk:
Mr Osborne made it clear that due to the parlous state of the public finances the best hope for economic growth was to encourage businesses to flourish and hire more workers. "The British Government has run out of money because all the money was spent in the good years," the Chancellor said. "The money and the investment and the jobs need to come from the private sector."
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| Posted: 27 Feb 2012 11:32 AM PST Warren Buffet is so 1980's. His aura peaked in the 1990's. He should've sold out and moved to the South Pacific. By the time he dies, he will have made himself look like a complete jack-ass, especially with regard to his comments about gold.Before I start in on my commentary, I wanted to post a little update to the housing data that has been released over the past few days. I think these numbers further support claim that the housing data is misleadingly manipulated and fraudulent and that the housing market is headed a lot lower. New home sales were reported on Friday for the month of January to be a better-than-expected "seasonally adjusted" 321,000 annualized rate. Here's the real data: Only 22,000 new homes were contracted for in January; in total, 4,000 new home sales actually closed; 6,000 were vacant lots - 12,000 have not started in construction. Now how does the new home sales report look? You can draw your own conclusions. For me, Warren Buffet epitomizes everything about myth vs. reality and the power of the media's ability to influence the perceptions of large masses of the population. The mainstream public and it's penchant for instant gratification will typically, at best, catch only brief snippets of real news, preferring to feed any thirst for news and gossip with "reality tv" and shows like Jersey Shore and The View. What better way to shape perception than to flash ads with images of a smiling Warren Buffet sipping Cherry Coke? The myth that, despite his billions, he lives in the same small red brick house in Omaha, Nebraska with his wife is just that - pure myth. He hasn't lived in that house or with his wife for many years. He has beautiful homes and mistresses all over the country in places where the very wealthy "quietly" congregate, like Sun Valley and Santa Fe. I remember back in the mid-1990's reading an article that outlined the man vs. myth about Buffet which detailed how his simple "wrinkled, cheap sack suit" look was in truth very expensive Italian suits tailored for that look in order to give Buffet the Willy Loman veneer. It's also pure bullshit that he's going to put all of his wealth in a charitable trust when he dies rather than pass it on to his heirs. There have been several recent examples that have slipped out of the "do as I say, not as I do" reality of Warren Buffet. A few years ago he wrote a piece that famously referred to derivatives as being financial weapons of mass destruction and said that he avoided them in his course of business. But then not too long after that one of Berkshire Hathaway's large insurance companies, General Re, revealed that it was sitting on huge derivatives losses. Executives at the company subsequent to that were prosecuted for accounting and business fraud. In the latest reported quarter Berkshire's earnings were directly affected by big derivatives losses. And how about Buffet talking big about how the very wealthy should pay more taxes, and yet Buffet's personal marginal tax rate is significantly lower than that of the secretaries who work for him. To paraphrase NJ Governor Christie, Buffet should either shut the f_ _ k up or write the Government a big check. I am going into all of this because I want to underscore the true lack of credibility Buffet has when he uses his annual shareholder meeting, in part, as a forum to make derogatorily incorrect statements about the investment value of gold. How many of you reading this knew that Warren Buffet's father was a 4-term Congressman from Nebraska who championed the use of gold as a currency anchor? Buffet spent - dare I say "wasted?" - a considerable amount of space in his widely read shareholder letter explaining why gold is not a good investment. You can see his thoughts on the matter HERE. In one sense, on a superficial level (of course, everything about Buffet's public display is superficial), his thoughts make perfect sense. I'm not going to "invest" in gold to produce something useful in the same manner that I would invest in farmland or invest in a plant to produce widgets. But "investing," in that context and meaning of the term, is not why you buy gold. In fact, you don't really buy gold. When you acquire a holding in physical gold that you control, you are really doing no more than exchanging fiat dollars - which are used as a currency - for gold, which is the world's oldest currency. It just so happens that over the last 10 years the number of dollars it takes to exchange into an ounce of gold has increased. Why? Because fiat dollars are rapidly being devalued by catastrophic public policy AND the dollar appreciation of gold - gold as currency - is not going up in value the way a successful investment might but instead is merely reflecting the fact that the market demands more paper fiat dollars in order to exchange gold for those fiat dollars. Here's an interesting way to look at it. In 1971, right before Nixon closed the gold window and took the $35 fixing off of the price of gold, oil was roughly $3/barrel and an ounce of gold would buy 11 barrels of oil. Today, with gold at $1750 and West Texas oil around $109, an ounce of gold will buy 16 barrels of oil. If the world was on a currency exchange standard that was based just on oil and gold, does it look like the price of gold is in some kind of investment bubble, as Buffet would have you believe? That example shows the remarkable stability of gold as a currency versus the remarkable depreciation of fiat dollars, as it takes slightly less gold in 2012 to buy a barrel of oil than it did in 1971 BUT it takes 36 times more fiat dollars to buy the same damn barrel. Which would you rather hold in your pocket to use as a currency? But perhaps this is why Buffet is so unhappy with gold:  This chart shows the number of ounces of gold it takes to buy 1 share of Buffet's Berkshire Hathaway class A stock. In 1999, at the peak of the internet bubble (which was fueled by Greenspan's money printing/dollar devaluation), it took 280 ounces of gold to buy one class A share. Currently it takes just under 70 ounces of gold. A picture says 1000 words, huh? In less that 1000 words, and in summation of the chart, a market participant would be about 400% wealthier if they had exchanged their investible fiat dollars for gold in 1999 and simply held it until now than if they had invested in Warren Buffet. No wonder he's coming out of his Depends over gold. As you can see, gold is not an investment at all. It's a currency that embodies relative purchasing power in the same way that the U.S. dollar or the euro contain relative purchasing power against each other and against the goods and services these currencies are used to procure. The relative purchasing power of each global paper fiat currency pretty much fluctuates on daily basis. But it is a fact that the relative purchasing power of each currency against gold has been rapidly declining over the past 11 years. So gold isn't even an investment, contrary to the notion of gold which Buffet absurdly attempts to explain. Gold is a nothing more than something that possesses decorative value as jewelry, but more significantly has functioned for over 5,000 years as a remarkably stable currency for the purposes of commerce. Looked at properly, Buffet's long-winded written pontification on why gold is not a good investment seems absolutely silly. 
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| G20 Meeting a Complete Failure / Gold and Silver / Greece in Selective Default S & P Posted: 27 Feb 2012 11:26 AM PST by Harvey Organ: Good evening Ladies and Gentlemen: Gold closed down $1.50 to finish the comex session at $1773.60 (1:30 pm est). Silver on the other hand rose by 19 cents to close at $35.52. Europe got a jolt as the G20 completely snubbed advances by Europe for bailout help. The LTRO refinancing begins its bidding tomorrow with results on Wednesday. The German government approved the financing for Greece but it really wants this Hellenic nation to leave the Euro group and initiate its own currency, the drachma. These topics will be discussed in the body of my commentary. Let us head over to the comex and assess trading. Read More @ HarveyOrgan.Blogspot.com
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| Posted: 27 Feb 2012 11:00 AM PST courtesy of DailyFX.com February 27, 2012 01:40 PM Daily Bars Prepared by Jamie Saettele, CMT “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.” The gold bull should be expected as long as price is above 10706. 1745/50 is reinforced as support by a trendline, 20 day average and 2/22 low. Bottom Line – correcting into a low...
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| Buy Gold...schlager: Booze Inflation Highest In 20 Years Posted: 27 Feb 2012 10:54 AM PST Americans can handle soaring rent, gas, and even food prices (all those thing that the Fed conveniently ignores) with the stoic patience of a Greek who welcomes 160 German tax collector on his rehypothecated front porch. But if there is one thing that is sure to kindle the revolutionary spirits it is the soaring price of booze. As it just so happens, ships are parked in the Boston harbor with crates of Grey Goose prepped for tossage overboard as we speak. As the following chart of alcoholic beverage inflation indicates, courtesy of John Lohman, January saw the biggest month over month spike in booze inflation in 20 years. In other words, about 90% of all traders alive today have never seen a bigger jump in liquor inflation in their lives. Then again, with nobody trading any more, and since the new venue du jour of most of said now ex-traders is the local watering hole, perhaps we are seeing demand pull inflation in at least one item. Needless to say, there is something very ironic that surging alcohol inflation is the only thing that is resilient to the central banks (un)sterilized liquidity explosion. The good news: there is distinct relative deflation in the cost of ammunition. At least for the time being...
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| Gold and Silver Update: Feb 27, 2012 Posted: 27 Feb 2012 10:41 AM PST [B] [/B] In 1980 gold topped out at $850.00. That bull market produced an increase of +2,276% from start to finish. The current rally in gold began in 2002 at $260.00 and has thus far risen +582%. By comparison this current bull market has the potential to rise much further. In 1980 silver topped out at $50.00 after rising +3,100%. The current bull market in silver began at +/- 5.00 in 2003. It has thus far risen +600%. Silver also has the potential to rise much further. Featured is the monthly gold chart. The uptrend is well defined within the blue channel. The supporting indicators A, B and C, are rising as well. Price is breaking out from beneath the resistance line. The last time this happened gold rose for almost three years. During that time the price doubled! A double from here takes gold to $3,500.00! "The fear of hard times leads to inflating the money supply and inflating the money supply leads back to hard times." …Ayn Rand. This ...
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| The Gold Price May Fall to $1,745 Touching the September Downtrend Before Shooting up Posted: 27 Feb 2012 10:20 AM PST Gold Price Close Today : 1775.10 Change : (9.80) or -0.55% Silver Price Close Today : 3533.80 Change : 21.80 cents or -0.61% Gold Silver Ratio Today : 50.232 Change : 0.032 or 0.06% Silver Gold Ratio Today : 0.01991 Change : -0.000013 or -0.06% Platinum Price Close Today : 1704.60 Change : -8.20 or -0.48% Palladium Price Close Today : 702.75 Change : -8.60 or -1.21% S&P 500 : 1,365.74 Change : 2.29 or 0.17% Dow In GOLD$ : $151.19 Change : $ 0.82 or 0.55% Dow in GOLD oz : 7.314 Change : 0.040 or 0.55% Dow in SILVER oz : 367.39 Change : 2.20 or 0.60% Dow Industrial : 12,982.95 Change : -1.96 or -0.02% US Dollar Index : 78.31 Change : -0.511 or -0.65% The Silver and GOLD PRICE spake today with forkéd tongue, but we've learned that these ambiguities often resolve in higher prices next day. But judge for yourselves: The GOLD PRICE pared off $1.50 to settle at $1,773.60 while the SILVER PRICE gained 18.6c to 3552.40 after a 3559c high and defending 3500c at a 3499c low. None of this tells us much. Gold was blocked today at $1,779.19, and has made lower tops since Thursday. I'm included to write this off as a normal shallow correction after that big gain to Thursday's high. For gold that $1,760 level is key support because it was at $1,760 that it leapt up to $1,780 in one day (Wednesday last). Looking at the longer term chart, I can picture that the GOLD PRICE is making a minor correction in its uptrend, may fall to $1,750 or $1,745 for a Final Kiss Good-bye at the downtrend line from the September top, and from thence will roar past your eyes like the Blue Angels. A drop below $1,735 would disappoint and gainsay that expectation. SILVER PRICE resembleth not gold. It has created a resistance ceiling at 3560 since last Thursday, and keeps on bumping against that. Today it backed off to 3500c, and conceivably it might back off to 3480c. Yet my eyes keep screaming into my ears that silver feels strong as a garlic-milkshake. (How's that for synesthesia-chocked metaphors and similes?) This ceiling pattern reminds me of the same figure silver traced out at 3450c -- before it smashed that barrier. Early this week may show silver and gold slightly lower as they digest last week's new highs, but they have lost none of their enthusiasm. This ought to prove another week of higher closes at the last. Behold! A couple of articles y'all might want to read (he said, employing gross understatement): http://www.huffingtonpost.com:80/l-randall-wray/new-yorks-us-bankruptcy-c_b_824167.html The other is at www.thebubblebubble.com/european-housing-bubble/ The first explains that the company the banks set up to speed up bundling mortgages for securitization, Mortgage Registration Electronic Services (MERS), was found by a US bankruptcy judge to have bungled transferring mortgages. Bottom line is that papers proving the mortgages have disappeared, and "no mortgage paper, no mortgage, no foreclosure." This proves my contention that the reason the banks entered into the $25 bn agreement with state attorneys general was so they could perfect their bad title into good title by re-writing the mortgages. "Please don' t'row me in dat brier patch, B'rer AGs!" Likewise it means that millions of people with underwater mortgages might find themselves the owners of a house, for free, with no mortgage, and a plethora of banks will be sucking wind like a worn out pump with all gaskets blown. The second concerns that world wide real estate bubble y'all thought had burst. Think again! Article outlines European countries -- most of 'em -- where the bubbles were blown as big or bigger as the US but have NOT YET burst. This does not exactly argue that "happy days are here again." Finally, this is not exactly the speech I gave last Friday in Somerville, but contains the same ideas in greater detail. You will find "Restoring Freedom in Tennessee" at http://farmersandfreeholders.org/2011/06/27/restoring-freedom-in-tennessee/ TODAY'S MARKETS: Just like an old mangy tomcat, the US dollar index has, it seems, nine lives. I counted it dead on Friday because its body had been thrown over the fence of 78.36. Yet today, here it came, clawing up onto the porch again, ears all chewed up, patches of fur missing, one eye swollen shut, lacking a couple of front fangs, but still going. Dollar index rose today 17.8 basis points to 78.59, up 0.23% and above the morale-killing 78.50 mark -- that is, it kills morale when the dollar falls below that. So all said, the mangy and scrofulous dollar remains in the game. A break below 78.35 would send it hurtling toward its 200 day moving average, now 76.97. Reality paid a visit to the Euro today, and slapped it down 0.35% to 1.3400. Might be that Friday's intraday high, 1.3486, marked the rally's top, but who knows with currencies? Parsing currencies is like trying to shoot skeet off the back of a bass boat in a windstorm with the government sneaking blanks into your shotgun shells. Yen continues to recover from its slide. Closed up 0.66% today at 124.15c/Y100 (Y80.55/US$1). So bad overbought its cousins and in-laws are overbought. Bound to rally some. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2012, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. 
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| Posted: 27 Feb 2012 10:14 AM PST In 1980 gold topped out at $850.00. That bull market produced an increase of +2,276% from start to finish. The current rally in gold began in 2002 at $260.00 and has thus far risen +582%. By comparison this current bull market ... Read More...
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| Gold encountering resistance near $1780 Posted: 27 Feb 2012 10:01 AM PST [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Based on what we have seen in the price action the last few trading sessions, gold is having some difficulty convincingly clearing the level near $1780. That has now formed as a technical chart level that will need to be taken out to set up the potential for a thrust to the $1800 mark. If the bulls can do that, the level near $1820-$1825 comes into play. Downside support still remains untested near the $1750 level. You will recall that it was this level that kept the price from moving higher on the way up after gold stalled out there on several tests. I will feel extremely confident that this market is going to move higher as long as we hold above $1725-$1720 on any possible move back towards those levels. This market has had a sharp move off the lows near $1535 that was nearly unimpeded all the way to $1750. It then consolidated for nearly two weeks working in a range of some $60 or so ove...
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| The Ultimate Conspiracy Theory: “The People are out to Get U.S.!” Posted: 27 Feb 2012 09:59 AM PST Mark J. Lundeen [EMAIL="Mlundeen2@Comcast.net"]Mlundeen2@Comcast.net[/EMAIL] 24 February 2012 By Patrick Temple-West WASHINGTON | Mon Feb 6, 2012 7:21pm EST "Anti-government extremists opposed to taxes and regulations pose a growing threat to local law enforcement officers in the United States, the FBI warned on Monday. These extremists, sometimes known as "sovereign citizens," believe they can live outside any type of government authority, FBI agents said at a news conference. The extremists may refuse to pay taxes, defy government environmental regulations * and believe the United States went bankrupt by going off the gold standard *." I know what you're thinking; this statement from the FBI is the Justice Department's opening salvo for the prosecution of Jon Corzine for stealing over a billion dollars from his clients at MF Global: but you are wrong. The tipoff they are talking about you and me, and not members of some LA street gang or a renegade...
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| Gold and Silver Stocks Poised to Recover in 2012 Posted: 27 Feb 2012 09:57 AM PST Opportunities abound across the spectrum of precious metal equities, which remain undervalued as bullion prices continue their upward trends. That's the word according to Charles Oliver and Jamie Horvat, both senior portfolio managers at Sprott Asset Management. In this exclusive interview with The Gold Report, Oliver and Horvat express cautious optimism about the prospects for gold stocks in 2012.
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| Guest Post: Guess Who Folded Now Posted: 27 Feb 2012 09:54 AM PST Submitted by Simon Black of Sovereign Man Guess Who Folded Now Banking privacy is dead. Completely, totally dead. Murdered, really. The US government is the assailant, and FATCA is the murder weapon. We've talked about this a few times before– FATCA is the heinously insidiously piece of legislation that the Honorable Barrack Hussein Obama passed into law in 2010 as part of the "Hiring Incentives to Restore Employment Act". There were no hiring incentives, and there was no restoration of employment. But any vestiges of banking privacy were destroyed. In brief, FATCA has two key concepts. First, it requires an additional (and completely unnecessary) layer of reporting from all US taxpayers who have 'foreign financial accounts' at 'foreign financial institutions.' Though as we have discussed before, both of these critical terms are ridiculously and flagrantly ambiguous, putting the onus entirely on the taxpayer. Without clarifying what constitutes foreign financial accounts and institutions, Congress has effectively created decades of debate in tax court… a move that will undoubtedly ruin the lives of the unfortunate folks who get dragged into the fight. The second key issue is that FATCA puts a burden on ALL foreign financial institutions worldwide to enter into an information-sharing agreement with the IRS; this essentially obliges every bank on the planet to submit reports and customers' private data to the IRS. Banks who don't enter into this information sharing agreement will have a 30% tax withheld on funds that originate from, or go through, the US banking system. Further, banks who enter into the information sharing agreement are obliged to withhold the 30% tax on transfers to other banks who do NOT enter into the agreement. Such provisions are absolutely, 100% impossible. And it's becoming clear that FATCA was passed with no intention of being enforceable. It's inconceivable that every institution on the planet could enter into an agreement. And it's inconceivable that every institution on the planet could possibly know whether every other institution has entered into the agreement. The only thing FATCA has accomplished is scaring the living daylights out of non-US banks. So much so that foreign banks have approached their governments to ask for help. As I wrote last week, in order to dull the effect of FATCA in their countries, the governments of Spain, Italy, Germany, France, and the United Kingdom recently announced that they were entering into inter-governmental information sharing agreements. Individual banks will no longer have to comply with the IRS, but instead share all with their home governments. In other words, French banks will report to the French government, US banks will report to the US government, and the two governments will swap data. It's no small coincidence that the first signatories to such an inter-governmental sharing agreement are five of the largest (albeit most insolvent) countries on the planet, forming the core of the OECD. Now it's only a matter of time for smaller nations to fall in line. Last Friday, Isle of Man became the first. Treasury Minister Eddie Teare announced that "the inter-governmental partnership approach announced by the US, France, Germany, Italy, Spain and the UK should be explored by the Isle of Man Government" and that a "high-level FATCA working party has already been formed." With Isle of Man laying down, we can expect places like the Channel Islands, BVI, Cayman, Bermuda, Mauritius, and other popular offshore banking jurisdictions to sign up next. There are two key points I'd like to make here- 1) There is no such thing as banking privacy. Do not trust your banker to keep secrets for you, and definitely do not trust a government-regulated banking system to keep secrets for you. If you have undeclared income that's been nestled offshore, it should be obvious at this point that such arrangements will soon unravel. Voluntary disclosure is always better than getting caught by your home government's tax authorities. And, especially if you're a US citizen where tax noncompliance is a criminal offense, paying hefty penalties is a much better outcome than going to court and ending up in a day-glow orange jumpsuit. 2) Most people who are interested in financial privacy tend to use cash. But since carrying large amounts of cash is more and more being criminalized (and confiscated), this is no longer a viable option. The best form of financial privacy at the moment is physical gold, at least until a better option for digital currency hits the market. Gold may not be useful for day-to-day transactions, but as a store of value tucked away in an anonymous offshore facility, there is no better way of maintaining financial privacy.
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| Posted: 27 Feb 2012 09:53 AM PST February 27, 2012 [LIST] [*]Hackers, the GPS "spoofer," the "Flash Crash" and your retirement account... a new hassle you probably didn't know existed... [*]Wyoming prepares for catastrophic collapse with... an aircraft carrier? Why Colombia might prove a better refuge... [*]Will the Dow top 13,000 this week? How to make money without caring about the answer [*]Out of nowhere emerges the nation's second-largest shale oil deposit... in addition to all the others [*]Real-time affirmation of Byron King's revival outlook... a reader's reminder the Tea Party isn't dead... deconstructing a viral email about Nicaragua... and more! [/LIST] Wealth. Helping you create it and defend it. That's what defines our work here at The 5. On some days, that task is akin to deciphering nude images in a Picasso. We didn't know, for example, what to make of the first nugget today when we ran across it over the weekend: Hackers, we're told by the U.K. edition of Wired, can now gene...
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| Broad Risk-Off Day - Apart From Stocks Posted: 27 Feb 2012 08:51 AM PST Today was another tale of two worlds as stocks outperformed everything as broadly speaking risk assets leaked notably lower post Europe's close and accelerated post Nowotny. Financials led the exuberance (in stocks not credit) on a day when volume was certainly not terrible and credit market indices tracked stocks (ES) almost tick for tick (which along with desk chatter suggested little activity in credit today as credit dealers reracked along with futures movements). HYG dipped significantly into the close - after a decent drop in the middle of the day that was saved - only to be held up by its VWAP. For the second day in a row, VIX closed higher on a higher S&P close and implied correlation is sending those trend fade warnings once again but it was the broad-based disregard for any and every other asset class today (by stocks) - as Treasuries remained near their low yields of the day, Crude, Gold and the commodity complex all sold off, FX carry reverted back to risk-off after Europe closed, and apart from a minor leak higher in the last hour bond curves were notably flatter - that was surprising (and unusual in recent weeks/months). In the medium-term, credit remains considerably less sanguine than stocks here and the late day disappointment from Nowotny ahead of LTRO2 may have just taken the jam out of the equity market's doughnut for now. The trading day seemed broken into 5 segments. Through the European market (early morning), risk was leaking lower broadly speaking as all asset classes stayed together. Then around 8am ET, Crude and Gold took off while the rest of risk assets deteriorated (looked like a QE/LTRO trade), then as the US opened, risk assets awoke broadly even as Treasuries remained at their low yields of the day. This print-fest-prone action lasted until Europe closed at which all momentum was lost. Stocks leaked higher as broad risk assets drifted lower (and Treasuries remained bid). Then finally Nowotny's comments incited some realization that the ECB is really not (at least not yet) a bottomless pit of money for everyone to borrow and lever forever, which saw commodities leg lower, USD leak higher, VIX accelerate higher (inverted on the chart), and even stocks give some back (as AAPL and the financials also gave some back right at the death).
HYG tried and failed in the middle of the day to sell-off as once again a decent drop was saved from nowhere (as it crossed Friday's closing VWAP and today's VWAP at the time). Credit indices tracked rather remarkably well to ES for a change, suggesting little actual flow occurring - although we do note that when HYG dipped, so IG and HY were also underperforming - only to catch up at the close.
Trying to put today's equity strength in CONTEXT, the following charts may help. Upper left shows the equity ETF (SPY) diverging upwards notably away from its empirical relationship with Vol (VXX), rates (TLT), and credit (HYG). Upper right shows the more broad-based CONTEXT (our proxy for risk assets overall) deteriorating from around the European market close - even as stocks leaked higher and higher.
In the lower left, our VIX model (based on equity/credit/vol relationships) was once again very informative as the aggressive open to VIX (over 19%) was well above where equity and credit would have thought. VIX compressed back to 'fair' but there was a clear demand for macro-protection as it pushed higher into and after the European market close. The last hour of the day saw correlations (lower right chart) start to pick up once again as equities regained some sanity and drofted lower with risk assets.
FX was volatile with a slow drift lower (vs USD) broadly into the US open (aside from JPY which gained over 1% from Friday's close). AUD rallied handsomely to drive broad risk assets up on carry but as Europe closed all that exuberance faded once again and we limped lower in JPY and USD and sideways in EUR and DXY broadly - to end with the USD +0.2% or so from Friday's close. Commodities were extremely volatile as tomorrow's LTRO print-fest remains front-and-center. WTI wobbled around $108-109 but eventually lost $108 post Nowotny - even though the Brent-WTI spread was stable around $15.5 all day (since Thursday now). Gold is modestly down (along with Silver) as they tracked USD's moves with a higher beta today. Treasuries rallied almost 7bps in the long-bond today before giving a little back into the close and 2s10s30s dropped 4-5bps overall dragging risk off in general. Charts: Bloomberg and Capital Context
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| Gold Daily and Silver Weekly Charts - SP Cuts Greece to 'Selective Default' Posted: 27 Feb 2012 08:35 AM PST |
| Turk - Something Big is About to Happen in Gold & Silver Posted: 27 Feb 2012 08:32 AM PST  With gold near $1,770 and silver near $35.50, today King World News interviewed James Turk out of Spain. Turk told King World News the fact that silver is not pulling back is an indication of how strong that market is right now. Turk also the move in oil and gold. Here is what Turk had to say about the situation: "This is a great start to the week for the precious metals, Eric. We need to see this kind of strength to make sure both gold and silver follow through in the next few trading days to confirm the big gains from last week where gold climbed 2.9%, while silver soared 6.4%. It is remarkable to see both metals hold their gains with no profit taking. Clearly, traders see something big is about to happen, and so do I."
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| Why This Isn't Your Father's Gold Market Posted: 27 Feb 2012 08:31 AM PST [Following are excerpts from the current issue of the Weekend Update at Iacono Research. By the way, the new combined investment website/blog will launch in the next week or so and, as part of that process, subscription rates will be going up considerably, so, if you're thinking of subscribing, sooner would be better than later - the link is here.] Gold and silver prices picked up where they left off in January, surging again after a three week pause on optimism that a messy debt default in Greece will be avoided, heightened tension in the Middle East, and a weaker trade-weighted dollar as bullish technical factors triggered hedge fund buying, most analysts now predicting even higher prices ahead.
Silver reached a five-month high at $35.70 an ounce on Friday after piercing through its 200-day moving average the day before (as indicated in red in the one-year silver chart below) and, while some analysts think it is now vulnerable to profit taking, others think this sets the stage for another assault on the $40 an ounce level, last seen in early-September prior to the vicious sell-off that affected nearly all asset classes. [To continue reading this story, please visit Seeking Alpha.]
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| “Ranting” Andy Hoffman Watches the Gold Tide Come In–02-27-2012 Posted: 27 Feb 2012 07:08 AM PST "Ranting" Andy Hoffman may not always be right, but he's never in doubt. Andy has been following the precious metals markets for too long to be fooled by the obvious hand of governmental sponsored manipulation. According to Andy, unbacked paper contracts are losing their affect on the physical metals prices. While it's been a long time coming, it's obvious now the market is getting away from the manipulators and is seeking its true free market value. As we all know, markets can be manipulated in the short run. However in the long term, they will trade at their free market value. Unfortunately, every market the government meddles with results in malinvestment and irrational price movement and discovery. This is exactly what's happening in the mortgage, housing, and student loan markets as well as in the precious metals markets. Like all good things, however, it eventually comes to an end. So you should start thinking about picking up some silver eagles, maple leafs, 90% silver-pre 1965 coins, and whatever else suits your preference. But do it soon because the odds are the next big move is happening now. Please fill out the subscription box on KerryLutz.com to receive your free Financial Survival Toolkit.
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What does it look like when your relatively safe, stable and secure way of life is plunged into chaos, disorder and violence? Though history is replete with examples of entire civilizations collapsing for various reasons, we need only review the events of the last century to see how quickly modern-day society can devlolve into hell on Earth.
For decades, the heartland of America has been the breadbasket of the world. Unfortunately, those days will shortly come to an end. The central United States is rapidly drying up and dust bowl conditions will soon return. There are a couple of major reasons for this. Number one, the Ogallala Aquifer is being depleted at an astounding pace. The Ogallala Aquifer is one of the largest bodies of fresh water in the entire world, and water from it currently irrigates more than 15 million acres of crops. When that water is gone we will be in a world of hurt. Secondly, drought conditions have become the "new normal" in many areas of Texas, Oklahoma, Kansas and other states in the middle part of the country. Scientists tell us that the wet conditions that we enjoyed for several decades after World War II were actually the exception to the rule and that most of time time the interior west is incredibly dry. They also tell us that when dust bowl conditions return to the area, they might stay with us a lot longer than a decade like they did during the 1930s. Unfortunately, without water you cannot grow food, and with global food supplies as tight as they are right now we cannot afford to have a significant decrease in agricultural production. But it is not just the central United States that is experiencing the early stages of a major water crisis. Already many other areas around the nation are rapidly developing their own water problems. As supplies of fresh water get tighter and tighter, some really tough decisions are going to have to be made. Fresh water is absolutely essential to life, and it is going to become increasingly precious in the years ahead.
In a stark warning ahead of next month's Budget, the Chancellor said there was little the Coalition could do to stimulate the economy.
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