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- 2012-02-27 Standard Chartered, BNP Paribas gold price forecasts 2012, 2013 to 2020
- Commodity ETFs: Energy Leads Huge Inflows
- $5 Gas Paves The Way For Natural Gas And Electric Vehicles
- Chris Cook: The Oil End Game
- The ECB Gone Wild: Living In Interesting Times
- Kings Of Commodity Dividends: ETF Style
- Technicals: Final February Forecast on Gold & Silver
- Central Banks Seizing Gold
- Vietnam’s Central Bank Plans New Gold Regulations
- Can Silver Keep Up Its Polished Performance?
- Argonaut Gold Announces 2012 Project Initiatives
- The Gambler Economy
- Gold Fire Sale
- What to Expect for Metals, Gold Stocks & the Dollar
- Elliot Wave Projection for the Price of Gold
- US Monetary Base Hits New Record of $2.8 Trillion
- Riksbank Denies IMF Data Showing Sweden Gold Reserves Up Sharp 18.3 Tons in January
- Todays (quote-unquote) "Gold"
- Rational Exuberance?
- Gas Prices Signal Tsunami of Inflation
- Silver Price Rises Twice as Fast as Gold
- The Mystery Behind Rising Gold & Oil Prices Solved
- US Monetary Base Hits New Record
- What Is the ‘Spot Price’ of Gold and Silver?
- Morning Outlook from the Trade DEsk 02/27/12
- Wyoming Prepares Doomsday Contingency Plans “In the Event of a Collapse in the United States”
- Monetary gold to act more visibly in inter-government finance
- Inflation expert Williams issues a new warning on Federal Reserve money printing
- The real state of the housing market in one simple chart
- What To Expect in the Final Week Of February for Precious Metals, Gold Stocks & Dollar
| 2012-02-27 Standard Chartered, BNP Paribas gold price forecasts 2012, 2013 to 2020 Posted: 27 Feb 2012 03:12 PM PST Newest gold price predictions from Standard Chartered Bank and BNP Paribas. Standard Chartered: $1,975/oz in Q4-2012 Source: Commodity ETFs: Energy Leads Huge Inflows Posted: 27 Feb 2012 06:12 AM PST Surging commodity prices attracted more than $1.7 billion into commodity-related exchange-traded products this past week (ending Thursday) bringing the sector total to more than $176.6 billion. Energy, as it has for the past several weeks, led all assets classes with $1.17 billion of inflows, followed by precious metals with $464 million, board market (multicommodity) with $140 million, agriculture with $39 million and industrial metals also came in with positive inflows of $9 million. Exchange-traded products (ETPs) include exchange-traded funds (ETFs), exchange-traded vehicles (ETVs) and exchange-traded notes (ETNs). ETP Inflows/Outflows Energy Select Sector SPDR Fund (XLE) led all funds with more than $581 million in inflows, followed by Market Vectors Oil Services (OIH), United States Oil (USO), iShares Silver (SLV) and Market Vectors Gold Minters (GDX) with inflows of $176 million, $135 million, $112 million and $94 million, respectively. An energy fund also led redemptions. Direxion Daily Energy Bull 3X (ERX) | |||||||||||||||||||||||||||||||
| $5 Gas Paves The Way For Natural Gas And Electric Vehicles Posted: 27 Feb 2012 06:11 AM PST By Simit Patel: As virtually everyone has noticed by now, gas prices are back at a painful level: the national average in the US is around $3.67 per gallon of unleaded gasoline. I agree with this assertion from Forbes noting that gas prices are not rising so much as the dollar is falling. A weak dollar, fueled by inflationary monetary policy as well as twin budget and trade deficits that have driven the dollar lower for the past 11 years, are sending the price of everything up -- including gasoline. Regardless of the cause, though, I don't think gas prices are going to come down any time soon. There is still the issue of peak oil, an issue that is only getting more severe as time passes. I believe it is time to seriously consider new means of transportation. And so, the main question: what displaces gasoline? I believe there are two solutions: Complete Story » | |||||||||||||||||||||||||||||||
| Posted: 27 Feb 2012 05:54 AM PST By Chris Cook, former compliance and market supervision director of the International Petroleum Exchange. Cross posted from Asia Times The end game is about to begin. On the one hand you have the noise and rhetoric. Greedy speculators gouging gasoline prices; mad mullahs preparing to wipe Israel off the map; bunker buster bombs and fleets being positioned; huge demand for oil from the BRIC countries; China's insatiable thirst for oil; the oil price will head for $200 a barrel and will never again fall below $130 … On the other hand you have the reality. Oil Markets The oil markets are completely manipulated and orchestrated, and the conductors of the orchestra have the benefit of having already held a rehearsal in 2008. History never repeats itself, but it does rhyme. This time around it is not demand from the United States that is collapsing, but European Union and United Kingdom demand, as oil prices in euros and pounds sterling have never been higher. In the meantime, the US is awash in oil as domestic production quietly increases, flushed out by the high prices. As I have outlined in previous articles, the culprit for the high oil prices between 2009 and 2012 – with the exception of the speculative "spike" between March 2011 and June 2011 driven by Fukushima and Libyan price shocks – has been passive investment by risk-averse investors, which enabled producers to support oil prices at high levels. Much of this passive money underpinning the market and enabling producers to monetize inventory pulled out of the market in September 2011, and another wave pulled out in December 2011. What is now happening is the end game: an orchestrated wave of noise that is drawing in speculative money. This is enabling the producers who are actually in the know to hedge by selling production forward during what they confidently expect will be a temporary – and pre-planned – managed fall in the oil price. The Game Plan The smartest kids on the block knows that gasoline prices much over US$4 per gallon will be both deflationary and lethal to President Barack Obama's re-election chances. So that won't happen other than briefly. I am by no means the only commentator who has pointed out the complete counter-productivity of these oil sanctions. The smart kids are well aware that oil sanctions are completely useless, and simply enable China to fill its strategic reserves at a discount to the market price at the expense of Greece and Italy in particular. But the US has been quite happy to let the EU – as useful idiots – take the economic hit. The high oil prices caused by all this noise and nonsense are actually a net benefit to Iran – which rattles its sabre loudly as elections approach. The effect of a managed decline in oil prices to, and probably over-correcting well through, $60 a barrel – which is coming fairly soon – will be extremely beneficial to the US in two ways. Firstly, it will be catastrophic in particular for Iran, Russia and Venezuela – not exactly on the White House party list – whose hugely oil-dependent revenues will collapse. The ensuing economic mayhem will open these countries up to regime change and to rescue plans which Wall Street will be dusting off. Secondly, the US population will be laughing all the way to the gas station as gasoline prices fall – at least temporarily – below $2.50 a gallon and release purchasing power into the economy, thereby doing the president's re-election chances no harm at all. What will then happen is that members of the Organization for Petroleum Exporting Countries will panic and genuinely reduce their production. The Saudis/Gulf Cooperation Council will again orchestrate the inflation of the oil price – as they did in 2009 – comfortable in the knowledge that they have been able to hedge against this temporary fall in prices at the expense of the speculators currently pouring in to the market. That's the game plan as I see it of the smartest kids on the block. What could ever go wrong? A Buyers' Strike Quite clearly, consumer nations, like everyone else, are in the dark in relation to what has been going on in the oil market and have swallowed the populist "greedy speculator" meme. They are simply unaware of the nature and cosmic scale of the oil market manipulation that has been taking place, and as a result have been happily overpaying for oil for years. What happens if they simply refuse to pay these prices? Possibly a "buyers' strike" by China would be enough to crater the market. We've already seen the effect of that on Iran, which has clearly agreed new terms with China after the latter held back purchases earlier this year. Or possibly speculative short selling of crude oil by hedge funds funded by Chinese investment? I pointed out at a rather spooky conference on "economic terrorism" a few years ago in Lausanne – which examined ways in which terrorists might make economic rather than physical attacks – that the only difference between an economic terrorist and a hedge fund is motive. System Fragility The markets in oil have never been so fragile and susceptible to shocks. Private inventories of oil are low. The investment banks interpret this – as they interpret everything – as a sign of physical demand and therefore as bullish for the oil price … oh, and by the way, here are some oil funds they have to sell you. The reason inventories are low is that private intermediary buyers will only store oil if they can both finance it and lock in a higher forward sale price. Bank financing is scarce and getting scarcer, while forward prices are below current prices; the result is that inventories are low. The systemic shortage of finance capital means that neither physical oil traders nor the remaining proprietary traders of banks can afford to take into storage much of the approaching flood of oil onto the market. Also, derivative market risk has become concentrated – since intermediaries are no longer capitalized to take it – in centralized clearing houses, which have for commercial reasons become fragmented silos. In my view, the steep decline which is planned could easily get out of hand in a not dissimilar way to the tin market in 1985 when the price collapsed – literally overnight – from $8,000 per tonne to $4,000 per tonne. We will then see whether the clearing houses are "too big to fail" – and ask why, if so, such utilities are run for private profit? When, Not If In my analysis, absent a massive, and sustained, shortfall in oil supplies – which I cannot see occurring, since all involved have every interest in ensuring it does not occur – the oil price will, as I have already forecast, fall dramatically by the end of this year's second quarter at the latest. It's not a matter of if, but when it will happen. Finally, as an interesting aside, I have credible reports that Marc Rich – who got on well with both the Shah of Iran and Imam Khomeini, and who sold oil from Iran to Israel for 20 years between 1973 and 1993 – has recently been seen again in Tehran. I doubt that this is for the night life, or because he prefers Tehran air to Swiss: but as a trusted third party there would be few better placed to act as a go-between. Let's hope so. Once the stultifying political uncertainties of elections in Iran and Russia are over, things could get interesting.
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| The ECB Gone Wild: Living In Interesting Times Posted: 27 Feb 2012 05:18 AM PST By David Knox Barker: The historically hawkish European Central Bank (ECB) has the single mandate of ensuring price stability in the European Union. In the face of the rapidly unfolding debt deflation collapse of the European banking system in December 2011, the ECB shocked global financial markets with the December surprise of $645 billion in long-term refinancing operations (LTRO). The program provided three-year loans to strapped banks. The ECB on a lending binge to over 500 banks qualifies as interesting times by any standard. To make matters even more interesting, the ECB is stepping up with a second round of LTRO this week. There are calls for as much as one trillion euro in new LTRO lending by the ECB. Such calls are no doubt from those with vested interests in preventing debt deflation. In short, banks owing more to creditors than they can pay without ECB help. The ECB appears to be more Complete Story » | |||||||||||||||||||||||||||||||
| Kings Of Commodity Dividends: ETF Style Posted: 27 Feb 2012 05:06 AM PST By CommodityHQ: By Jared Cummans Income investors often feel that commodities are not sound investments for their portfolio as something like a futures contract on gold offers no yield. But there are plenty of other ways to make a play on commodities while adding the safety net of dividend yield. Some turn to stocks while others are more partial to the security that index funds offer, namely, exchange traded products. ETFs offer investors immediate diversification through a single ticker while holding onto added benefits of intraday liquidity, transparency, and some favorable tax treatments. A number of ETFs that choose to focus on commodities come with handsome yields attached. Below, we outline the highest yielding commodity products [see also 12 High-Yielding Commodities For 2012]. Copper Miners ETF (COPX) – 3.72% This fund is designed to reflect the performance of the copper mining industry. As would be expected, top holdings of COPX include heavy Complete Story » | |||||||||||||||||||||||||||||||
| Technicals: Final February Forecast on Gold & Silver Posted: 27 Feb 2012 04:59 AM PST Chris shows you what to expect in the final days of February. from TheTechnicalTraders: | |||||||||||||||||||||||||||||||
| Posted: 27 Feb 2012 04:16 AM PST from ETFDailyNews.com:
And listen, I'm the last person who will defend the Greek state and its terribly indebted government. But that shouldn't make it okay for Greeks to lose their sovereignty to a group of unelected bankers. But these Euro-states CAN'T let Greece default now. They've made a suicide pact to keep the Euro solvent and all member states as members forever. And to seal the deal, lenders are now eyeing up the collateral they're willing to grab in the event that Greece gets any bright ideas about defaulting. Top of my list of interesting "assets" is Greece's gold. Read More @ ETFDailyNews.com | |||||||||||||||||||||||||||||||
| Vietnam’s Central Bank Plans New Gold Regulations Posted: 27 Feb 2012 04:12 AM PST by Roman Baudzus, GoldMoney.com:
The State Bank of Vietnam is keeping a close eye on developments at the national gold market. In order to control the flight from the dong and the outflow of capital from the country, last year the central bank set limits on gold trading and significantly reduced the number of licensed refiners officially allowed to produce gold bars. From November 2011 onwards all companies wishing to continue their operations had to hold a minimum of 500 billion dong in funds and a market share of 25%. These requirements have forced many smaller producers out of business. Read More @ GoldMoney.com | |||||||||||||||||||||||||||||||
| Can Silver Keep Up Its Polished Performance? Posted: 27 Feb 2012 04:10 AM PST Precious metals have been one of the best-performing asset classes of 2012 – with silver being the star performer. by Garry White, Telegraph.co.uk:
In the year to date, platinum prices have risen 22pc, gold prices are 13pc ahead, with palladium bringing up the rear with a gain of 8.5pc. Precious metals have put the 6.5pc rally in the FTSE 100 this year in the shade, but can the gains continue, particular in silver? Silver is one of the most volatile of all the precious metals. In the last 12 months it has been as high as $48.44 and hit a low of $27.10. The price is now almost in the middle of this 12-month range. One measure of the relative under or over-valuation of silver is the gold:silver ratio. Read More @ Telegraph.co.uk | |||||||||||||||||||||||||||||||
| Argonaut Gold Announces 2012 Project Initiatives Posted: 27 Feb 2012 03:51 AM PST Link: Gold Production has Begun at La Colorada TORONTO, ONTARIO–(Marketwire – Feb. 27, 2012) - Argonaut Gold Inc. (TSX:AR) ("Argonaut" or the "Company") is pleased to announce its plans for 2012 project initiatives for both of the Company's operating mines in Mexico. The El Castillo mine is located 100 km north of the capital city of Durango in Durango, Mexico, and the La Colorada mine is located 50 km southeast of the capital city of Hermosillo in Sonora, Mexico. El Castillo 2012 Initiatives:
Pete Dougherty, Argonaut President and CEO, stated: "These initiatives will be implemented in a stepped phase throughout the year, and are designed to create a more efficient mining environment at El Castillo. At the end of last year as we extended operations to the east pads and plant, El Castillo experienced higher cash operating costs. We feel these initiatives will mitigate these costs. We believe El Castillo will be in a position to take the next steps in advancing production by year end with the addition of the new west pad #8." La Colorada 2012 Initiatives:
Mr. Dougherty commented: "The Company is happy to announce that gold production has begun at the La Colorada mine. We are currently reprocessing material from the existing leach pads. Construction is well underway on the new desorption and recovery plant, as well as the refinery. When completed in the second quarter, it will have the capacity to handle material from all of the Company's Mexican operations. The enhancement of the desorption and refining circuit will allow the Company to process all loaded carbon at a single site, therein reducing costs, and expediting our sales process. It is satisfying to see the La Colorada mine begin ahead of schedule and continue to expand." Total Capital Expansion Program for 2012
Mr. Dougherty commented: "The Company is pleased to add a second producing mine to the Company's portfolio. The initiatives underway at both mines will allow for greater efficiencies and enhancements to production. Gold production at El Castillo is expected to be between 17,000 and 18,000 ounces for Q1 and is budgeted to increase each quarter. Q4 production is expected to reach 21,000 - 22,000 ounces, finishing the year for a total of 75,000 and 80,000 ounces at an average cash cost for the year of $625 to $650 per ounce. Gold production at La Colorada is expected to be between 2,000 and 2,500 ounces of gold for Q1 with gradual increases anticipated each quarter;. Q4 production is expected to be between 4,500 – 5,500 ounces at an average cash cost for the year of $625 to $650 per ounce. Full year La Colorada production is expected to be 13,500 to 17,000 ounces." About Argonaut Gold Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico. Creating Value Beyond Gold Cautionary Language Regarding Forward-Looking Information This news release contains and refers to forward-looking information based on current expectations. All other statements other than statements of historical fact included in this release are forward-looking statements (or forward-looking information). The Company's plans involve various estimates and assumptions and its business and operations are subject to various risks and uncertainties. For more details on these estimates, assumptions, risks and uncertainties, see the Company's most recent Annual Information Form and most recent Management Discussion and Analysis on file with the Canadian securities regulatory authorities on SEDAR at www.sedar.com[1]. These forward-looking statements are made as of the date hereof and there can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. The Company assumes no obligation to update the forward-looking information contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements that are included herein. The release should also reference La Colorada as being brought into production without a feasibility study demonstrating economic and technical viability and that there may be increased uncertainty and certain risks (identify if possible) of failure associated with the production decision. Qualified Persons Preparation of this press release was supervised by Mr. Thomas Burkhart, Argonaut's Vice President of Exploration and a "Qualified Persons" as defined by NI 43-101. Mr. Alberto Orozco, Argonaut's Mexico Exploration Manager, also supervised the drill programs and on-site sample preparation procedures at La Colorada. For more information, please refer to the appropriate project's technical report available on the Company's website as well aswww.sedar.com [1]:
For more information, contact:
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| Posted: 27 Feb 2012 03:05 AM PST In a recent commentary I pointed out how ordinary investors were being "forced" to funnel most/all of their savings into precious metals – due to the lack of any rational alternatives. I pointed out how ordinary people were being denied any other opportunity to "invest", but rather were being forced by their financial advisors to become "traders" (i.e. gamblers). I devoted the rest of that commentary to explaining how and why converting our paper currencies to gold and/or silver did not represent gambling. However, there is plenty more that can (and should) be said about our "gambler economies", and so that will be the purpose of this effort. As is often the case, the only way in which we can properly understand our present circumstances is by stepping back (in historical terms) to provide ourselves with the necessary context to properly comprehend these modern day parameters. The first point which must be made is that if we go back even a century, the concept of investing was almost entirely alien to the average person. Instead our markets were 100% the playgrounds (or casinos) of the wealthy. Why was this so? In part this was a function of opportunity. A century ago ordinary people were much less sophisticated in their understanding of finances. Financial advice was reserved exclusively for the wealthy. So to some extent ordinary people were shut out of markets. However that is literally only half the story. More importantly, ordinary people didn't need to "invest" (i.e. gamble with) the fruits of their labours. In part this was a function of lower expectations with respect to our standard of living. A century ago we were not being continually bombarded with advertising first telling us how we "needed" an infinite number of consumer goods for a normal existence, while we were simultaneously bombarded telling us how easy/affordable it was to get credit. Thus a big part of the reason why ordinary people a century ago did not need to invest while ordinary people today are forced to invest is that today people have to find a way to pay off their debts (along with a hefty rate of interest) incurred buying a plethora of consumer goods which they never needed. But there is still more to this story than that. A century ago, people were paid fair wages. Today, with the real rate of unemployment being above 15% in every Western economy, and with real wages (i.e. accounting for inflation) having been falling steadily for the last forty years; the modern worker is little more than an economic slave – indentured with debts. And (according to the bankers and their advertising) the only hope these 21st century serfs have to purchase their freedom is through "investing" – i.e. entering the rigged casinos of the banksters and entrusting our wealth in their hands. Thus the crimes of the pseudo-regulators who condone this market-rigging (via automated trading algorithms, naked shorting, and a near endless list of other tolerated crime) are doubly heinous. It would be bad enough if these supposed protectors of the integrity of our markets were only allowing people to be fleeced who were drawn to the markets by greed. Indeed, the attitude of many toward any "rigged casino" is that those who venture inside deserve their fate. However, when ordinary people are being forced to gamble their tiny nest eggs due to the relentless economic oppression of debts + interest, then the corruption of these regulators is absolutely intolerable. | |||||||||||||||||||||||||||||||
| Posted: 27 Feb 2012 03:00 AM PST | |||||||||||||||||||||||||||||||
| What to Expect for Metals, Gold Stocks & the Dollar Posted: 27 Feb 2012 02:32 AM PST Once a support level is broken it then becomes resistance. So if that holds true with the current move in the dollar we should see stocks and commodities find a short term bottom and continue higher today or tomorrow from the looks of things. | |||||||||||||||||||||||||||||||
| Elliot Wave Projection for the Price of Gold Posted: 27 Feb 2012 01:57 AM PST | |||||||||||||||||||||||||||||||
| US Monetary Base Hits New Record of $2.8 Trillion Posted: 27 Feb 2012 01:54 AM PST The seasonally-adjusted St. Louis Fed Adjusted Monetary Base just jumped to a historic high level in the two-week period ended February 22nd and now stands at $2.8 Trillion. The movement here largely is under direct control of the Fed's Federal Open Mark Committee (FOMC) and is suggestive of a deepening systemic solvency crisis, according to [...] | |||||||||||||||||||||||||||||||
| Riksbank Denies IMF Data Showing Sweden Gold Reserves Up Sharp 18.3 Tons in January Posted: 27 Feb 2012 01:49 AM PST | |||||||||||||||||||||||||||||||
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| Posted: 27 Feb 2012 01:38 AM PST Spot gold dealings commenced the new trading week with a loss of $6 per ounce and the yellow metal was quoted at $1,767 on the bid-side. Silver prices fell by about a dime per ounce and initial indications came in at $35.32 the ounce in the white metal. | |||||||||||||||||||||||||||||||
| Gas Prices Signal Tsunami of Inflation Posted: 27 Feb 2012 01:31 AM PST from Greg Hunter's USAWatchdog.com:
A good friend of mine, who has family living abroad, called me this weekend. One of the first things out of his mouth was about his sister in London and how she was dealing with "terrible inflation." No doubt he was talking about the spike in gasoline prices that have risen to more than $8 a gallon. (The official inflation rate in the UK is around 3.6%, but I'm sure the numbers over there are as reliable as the inflation numbers in the U.S. where fuel and food are not counted in the so-called "core" inflation.) Part of this price spike is due to Iran cutting off crude oil shipments to the EU recently, but part of it is the fact the UK has been engaging in quantitative easing (QE), or money printing, to help its ailing economy and insolvent banks. Just in the last few weeks, it announced another $50 billion in QE. The UK is not alone as most Western countries are engaging in QE to prop up an insolvent system bloated on bad debt. "Inflation is always and everywhere a monetary phenomenon." This famous quote from Nobel Prize winner Milton Friedman really says it all about what is happening to fuel prices and inflation. The Federal Reserve is creating trillions of dollars in new currency to paper over the meltdown of 2008 and stave off a sovereign debt crisis in Europe. Oil is priced in dollars; so, of course, fuel prices are rising around the globe. An article on Zerohedge.com, last Friday, predicts oil hitting $200 a barrel in the next 5 years, but I think we will hit that mark much sooner. The post unabashedly said, "The sole reason why crude prices are surging . . . is because global liquidity has risen by $2 trillion in a few short months, on the most epic shadow liquidity tsunami launched in history in lieu of QE." (Click here for the complete Zerohedge.com story.) | |||||||||||||||||||||||||||||||
| Silver Price Rises Twice as Fast as Gold Posted: 27 Feb 2012 01:30 AM PST by Peter Cooper, SilverSeek: Silver Price Rises Twice as Fast as Gold as the Eurozone Floods with Money The battleground for the week ahead is the $1,800 mark for gold. Once that is decisively breached the way is open for an assault on $1,900 and a new all-time high. Paulson's tip Read More @ SilverSeek.com | |||||||||||||||||||||||||||||||
| The Mystery Behind Rising Gold & Oil Prices Solved Posted: 27 Feb 2012 01:27 AM PST from King World News:
Continue Reading @ KingWorldNews.com | |||||||||||||||||||||||||||||||
| US Monetary Base Hits New Record Posted: 27 Feb 2012 01:26 AM PST from GoldMoney.com:
As the Telegraph reports, markets had been hopeful that the G20 would agree to provide extra support. Add to this signs of disagreement between the Germans and Americans – with the latter once again demanding Germany and others dole out more bailout cash – and it's no surprise to see a slight "risk off" move in the markets this morning, with equities struggling, crude oil prices slipping and the dollar rising against the euro. Read More @ GoldMoney.com | |||||||||||||||||||||||||||||||
| What Is the ‘Spot Price’ of Gold and Silver? Posted: 27 Feb 2012 01:23 AM PST from Jesse's Café Américain:
When you ask even an experienced trader, or even an economist who may have received a Nobel prize, 'What is the spot price, where does it come from, who sets it?' you will often hear that this is the last physical trade, or the current market price of physical bullion for delivery. Here is a fairly typical explanation one might get from an 'industry expert.' Read More @ JessesCrossRoadsCafe.Blogspot.com | |||||||||||||||||||||||||||||||
| Morning Outlook from the Trade DEsk 02/27/12 Posted: 27 Feb 2012 01:20 AM PST Markets still sensitive to equity moves. gold closing under $1,775 Friday was a weak sign and equities are again weaker this morning. Fed speaks twice this week and the focus will be on deflation vs inflation. Still believe the central bankers will continue to print which is the underlying fuel for the markets. If we lose $1,755 I may re-consider short term, but weakness would be considered entry points. | |||||||||||||||||||||||||||||||
| Wyoming Prepares Doomsday Contingency Plans “In the Event of a Collapse in the United States” Posted: 27 Feb 2012 01:09 AM PST | |||||||||||||||||||||||||||||||
| Monetary gold to act more visibly in inter-government finance Posted: 27 Feb 2012 01:05 AM PST Monetary gold to act more visibly in inter-government finance With gold and silver slipping today on continuing Eurozone uncertainty, attention has to move to protect against Portugal and Spain following the Greek road Author: Julian Phillips Posted: Monday , 27 Feb 2012 BENONI - The week opened in Asia with gold standing at the same level as New York closed at $1,772. London then tended to pull it lower just ahead of its opening. The euro is now rising strongly at €1: $1.3455 up just under a cent. In London, gold Fixed at $1,765.00 and in the euro at €1,316.182. The euro weakened slightly in front of New York's opening. Ahead of New York gold started to climb again through $1,767.75 and in the euro to €1.318.28. Silver opened in London over $35.37 holding onto its recent gains for the most part. Ahead of New York's opening it stood at $35.20 and has since slipped marginally further. The markets are taking the Greek bailout as a done deal now. Standing back from the story, it is becoming much clearer now that politicians can agree anything they want, but cash flow may well prove more powerful. One of Germany's opposition leaders reflected these thoughts when he suggested Greece should leave the Eurozone, because it will return for more help as it is realized that austerity has deeply harmed cash flows to the government and they won't be able to cover even the much lower costs they now have. Attention must now move to building more buffer funds to protect against Portugal and Spain following Greece. The banks have had time to re-capitalize with cheap E.C.B. funds, which came indirectly from the U.S. [Swaps]. So preparations, to guard against more money storms, have been made. The banking system is liquid [and will be kept so, not matter the cost] and the G-20 has told Europe to put up more of its own money to firewall itself. Does this cure the disease, no! Growth may, but meantime the fundamentals for gold improve steadily The test will come, inevitably, to see if confidence lies in governmental moves to repair the system or overwhelming realities show these as insufficient. Where are you putting your money? As insurance, we can see gold acting more visibly in government finances [as we saw in Greece]. This is not a matter of choice by governments but a reflection of need, as extreme times start to spread in different parts of the world. The developed world is not immune to this. Meanwhile, Asian demand for gold has slipped slightly in the short-term, but silver demand is increasing there. http://www.mineweb.com/mineweb/view/...ail&id=110649 | |||||||||||||||||||||||||||||||
| Inflation expert Williams issues a new warning on Federal Reserve money printing Posted: 27 Feb 2012 12:27 AM PST From King World News: John Williams just issued a warning regarding the monetary base vaulting to an historic high. Williams, who founded ShadowStats, also stated the reason for the expansion is directly related to a deepening systemic solvency crisis. Here is what Williams had to say about the situation: "The seasonally-adjusted St. Louis Fed Adjusted Monetary Base just jumped to an historic-high level in the two-week period ended February 22nd, as shown in the (above graph). The movement here is largely under direct control of the Fed’s Federal Open Mark Committee (FOMC) and is suggestive of a deepening systemic solvency crisis." John Williams continues: "Adding liquidity to the system usually is contrary to the action that would be taken if the Fed were trying to... Read full article... More on inflation: The Federal Reserve openly admits plans to crush the dollar Top manager Burbank: Oil will not stop "until the economy breaks" Your chance to take advantage of this "risk-free" inflation hedge could be over soon | |||||||||||||||||||||||||||||||
| The real state of the housing market in one simple chart Posted: 27 Feb 2012 12:22 AM PST From Pragmatic Capitalism: There 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... Read full article (with chart)... More on housing: Top housing blogger is calling a bottom in the U.S. housing market What the dramatic declines in housing inventories could be signaling now Unbelievable: The big banks are becoming desperate to avoid foreclosures | |||||||||||||||||||||||||||||||
| What To Expect in the Final Week Of February for Precious Metals, Gold Stocks & Dollar Posted: 26 Feb 2012 11:45 PM PST This morning we are seeing the US Dollar index move higher retesting a short term breakdown resistance level. What this means is that the dollar fell below support and is not slowing drifting back up to test the breakdown level. As we all know once a support level is broken it then becomes resistance. So if that holds true with the current move in the dollar we should see stocks and commodities find a short term bottom and continue higher today or tomorrow from the looks of things.
Gold has been pulling back the past couple trading session on light volume which healthy price action. It has done the opposite of what the dollar did above. Gold broke through a key resistance level and is slowly drifting back down to test the breakout level to see if it is support. If so then gold should continue higher in the coming days.
Both silver and gold miner stocks are lagging he price of gold. They have yet to break through their key resistance levels. That being said it could happen an day now as they have both been flirting with that level for a couple trading sessions now.
Crude oil continues to hold up strong and is headed straight for its key resistance levels without any real pullback. Chasing price action like this is not something do often because risk: reward is not in your favor. I am staying on the sidelines for oil until I see a setup that has more potential and less risk.
The equities market remains in a strong uptrend at this time. I do feel a 1-3 weeks pause/pullback could take place at any time but in the grand scheme of things we could be only half way through this runaway stock market rally as noted in the video.
The equities market is going to gap down this morning which is typical in a bull market. Remember. in an uptrend the stock market tends to gap lower at the open and close higher into the close. And it's the opposite in a down trend with stocks gapping higher and sell off through the trading session. Watch my detailed video analysis for this week: http://www.thetechnicaltraders.com/ETF-trading-videos/ Chris Vermeulen |
Kevin McElroy: It's bad enough that Greeks are losing their sovereignty. When officials from Germany, Belgium and other north-European states can come in and tell Greeks how to run their government it's simply wrong.
Vietnam's economy is facing hard times and the communist government is desperately seeking ways to solve the crisis affecting the country. In the past two years the Vietnamese central bank has taken a series of measures aimed at avoiding further capital flight from the country. Measures taken by the government thus far include greater controls on the gold market. According to estimates there are 300 to 500 tonnes of privately held gold in Vietnam. Nguyen van Binh, governor of the Vietnamese central bank, stated in an interview that he wants "to mobilise gold from the public in service of the socio-economic development."
Last week the silver price leapt by 6.4pc to $35.395 an ounce, bringing the total gains for the year to a very impressive 27pc.
Gold and silver prices really got the wind behind them last week and reaped the benefit of the Greek bailout deal as ArabianMoney suggested was likely (click here). Gold got to $1,780 and silver close to $36 with weekly gains of three and six per cent respectively.
Today Michael Pento told King World News that investors are fleeing out of fiat paper and into gold and energy. Pento, who founded Pento Portfolio Strategies, also said rising oil prices will further damage an already weak global economy. Pento had this to say about the situation: "Everything I've been worried about regarding the fallout of global central bankers' love affair with inflation is coming to fruition. Investors across the globe are once again dealing with the fact that the cost of filling up their gas tank is eating a significant portion of their discretionary purchases. The price of a barrel of oil has soared to near $110 a barrel, just as it always has done when the Fed has gone on one of their counterfeiting sprees."
Precious metal prices have endured a correction in trading this morning, following last week's impressive gains. Gold remains above support at $1,750, while silver is still above the important $35 mark, however. Yesterday the G20 warned that it was not prepared to contribute more IMF cash to eurozone bailouts until eurozone governments have themselves made more contributions to the European Stability Mechanism (ESM).
This is a partial reprise of a post from two years ago. The question has again arisen about the discrepancy between the spot price of gold and silver, and the prices shown on the front month of the futures market.
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