Gold World News Flash |
- LTRO – Fatter than El Gordo
- Which Will It Be: Gold is About to Go Way UP or the Dow is About to Go Way DOWN?
- The Case for a Genuine Gold Dollar
- Gold And Silver Bullion Coin Sales Plunge In February
- Today was a Cover-Up By the Fed & Mainstream Media
- Gold Decline Highest Since December Crash
- Gold Seeker Closing Report: Gold and Silver Fall Over 5% and 6%
- Silver Update: 2/29/12 Bernanke Busted
- RON PAUL BELIEVES IN AN INFLATION CONSPIRACY THEORY: And Here's Why It's Totally Wrong
- Sean Corrigan Crucifies MMT
- Precious Metals Raid: SGTreport Saw It Coming, Sort of…
- The Silver Bullet and the Silver Shield – SBSS 17. Warren Buffett Paradigm Puppet
- Chris Duane on the Leap Day Metals Massacre – 02-29-2012
- To end the Fed, Paul will have to start questioning it
- Gold and Silver Plunge On Bernanke’s Remarks – What Happens Next?
- A Hard Reset Coming
- “Ranting” Andy – Leap Year Only Comes Once Every Four Years, But The Fed Intervenes Every Day – 02-29-2012
- Opportunity Knocking
- Fed, media today concealed massive liquidity injection, Sinclair tells King World News
- UK Parliament Member Lord James of Blackheath Alleges 15 Trillion Dollar Fraud Involving the Fed and Imaginary Gold
- Complete Paulson 2011 Letter
- Kitco News interviews GATA Chairman Murphy
- Sale Prices On Gold And Silver, While Supplies Last!
- Gold and Silver Prices Plunge
- Is Gold Backwardation Now Permanent?
- Gold Price Close Today $1,709.90 Down $77.10
- PayDay for our Silver Trade February 29
- Chris Duane on the Leap Day Metals Massacre–02-29-2012
- Leap Day Lunacy
- Silver - Is the Party Over?
| Posted: 29 Feb 2012 06:08 PM PST Bullion Vault
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| Which Will It Be: Gold is About to Go Way UP or the Dow is About to Go Way DOWN? Posted: 29 Feb 2012 05:46 PM PST It is very understandable why investors believe America's engines are ready to roar again because economic indicators in America are turning up even though bad news barrages us from all sides… [That being said,] I believe the Dow Jones Index has not bottomed when viewed*from an historical perspective with gold. We have further to go down in the Dow/gold ratio before the next big bull market begins. [Let me explain.] Words: 1250 So says Asa Harrington ([url]www.tryfreedom.us[/url]) in edited excerpts from an article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited below for length and clarity – see Editor’s Note at the bottom of the page. (This paragraph must be included in any article re-posting to avoid copyright infringement.) Harrington*goes on to say, in part: The Dow/gold ratio measures the number of gold ounces it would take to buy a share of the Dow Jones Index. The graphical representation of the Dow Jones Ind...
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| The Case for a Genuine Gold Dollar Posted: 29 Feb 2012 05:30 PM PST Mises.org
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| Gold And Silver Bullion Coin Sales Plunge In February Posted: 29 Feb 2012 05:08 PM PST The latest production figures from the U.S. Mint show a dramatic decline in the sale of both gold and silver bullion coins. According to the U.S. Mint, sales of American Gold Eagle bullion coins in February 2012 totaled 21,000 ounces, a decrease of 83.5% from January sales of 127,000 ounces. Gold bullion coin sales declined [...]
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| Today was a Cover-Up By the Fed & Mainstream Media Posted: 29 Feb 2012 04:22 PM PST My Dear Extended Family, Because of the volatility you experienced in gold today, and the absolute fact that it was an MSM cover operation of today's covert operation, which was one of the largest injections of QE liquidity into the Euro banking system ever, you must know the facts. I have done Continue reading Today was a Cover-Up By the Fed & Mainstream Media
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| Gold Decline Highest Since December Crash Posted: 29 Feb 2012 04:04 PM PST courtesy of DailyFX.com February 28, 2012 06:17 PM Daily Bars Prepared by Jamie Saettele, CMT I have no idea what moves gold. The yellow metal made its February high AND low in the span of a few hours on Wednesday. The decline, directly from the top, was the largest one day decline since December 14th but that decline occurred AFTER several weeks of weakness when one would expect a panic capitulation type of move. This decline is seemingly out of the blue. Regardless, the price is coming into the confluence of the 20 and 200 day averages. A break exposes 1640. 1740 and 1760 are resistance. Bottom Line – no idea...
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| Gold Seeker Closing Report: Gold and Silver Fall Over 5% and 6% Posted: 29 Feb 2012 04:00 PM PST Gold traded mostly slightly higher in Asia and London, but it then plummeted throughout most of trade in New York and ended near its late session low of $1688.77 with a loss of 5.28%. Silver slipped to as low as $33.95 and ended with a loss of 6.48%.
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| Silver Update: 2/29/12 Bernanke Busted Posted: 29 Feb 2012 03:55 PM PST |
| RON PAUL BELIEVES IN AN INFLATION CONSPIRACY THEORY: And Here's Why It's Totally Wrong Posted: 29 Feb 2012 03:28 PM PST  Ron Paul put on a show at Fed Chairman Ben Bernanke's testimony on monetary policy earlier today—even challenging the Fed to let him pay his taxes in gold.In his rant, Paul argued that inflation was actually more like 9 percent—and not the 2.9 percent increase that Bureau of Labor Statistics says we've seen in the last 12 months—based on the old CPI statistics. This "old measure" of measuring consumer prices actually touches on a much larger debate–one that has been spearheaded by John Williams and his website Shadow Government Statistics. Ron Paul's website actually cites Williams in many of its economic commentaries. The stats Williams's research contends that the 12-month inflation statistic we should have seen last month was 10.5 percent, arguing that the basis for calculating CPI back in 1980 was the pure formula before "the reporting system increasingly succumbed to pressures from miscreant politicians, who were and are intent upon stealing income from social security recipients, without ever taking the issue of reduced entitlement payments before the public or Congress for approval." Read more....... 
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| Posted: 29 Feb 2012 02:35 PM PST While hardly needing a full-on onslaught by an Austrian thinker, when even some fairly simplistic reductio ad abusrdum thought experiments should suffice (boosting global GDP by a few million percent simply by building a death star comes to mind), Diapason's Sean Corrigan has decided to take MMT, also known as "Modern Monetary Theory", to the woodshed in his latest missive in a grammatical, syntaxic (replete with the usual 200+ word multi-clause sentences) and stylistic juggernaut, that only Corrigan is capable of. So sit back in that easy chair, grab your favorite bottle of rehypothecated Ouzo, and let the monetary hate wash through you. Money, Macro and Markets by Sean Corrigan of Diapason Commodities Management, and author of the excellent Santayana's Curse As regular readers of these scribblings have hopefully come to appreciate, this is not the place to come to slake your thirst for mechanistic 'models' and fancy-dan macro-correlation studies (for the technically-minded, this is precluded by the subjectivist, methodological individualism of the Austrian School to which we adhere). The only exception to this—if, indeed, an exception it is—is to be found in out penchant for mapping out developments in money supply and, in particular, real money supply and relating these to potential changes in the revenue stream percolating through the economic structure and, hence, to their implications for income, returns on invested capital, and the supportability or otherwise of the accumulated debt burden. To an Austrian, the credit cycle IS the business cycle, while, more generally, the many disruptions to the progressive delivery of greater material satisfaction we suffer —outside of those forcefully visited upon us by the political process—are almost inevitably the result of some unlooked-for departure in the rate of provision of new money from that to which people had become accustomed. Just occasionally it is not the supply itself, but rather some unwonted alteration to the eagerness with which money's recipients hold on to that which comes their way which brings about these changes. In other words, every once in a while it may be a question of a changed appetite for, rather than a changed helping of, cash-at-hand which occasions a disruption. Such departures are hard to pick up from an inspection of the raw data, making their interpretation both more challenging and more a matter of inference than of brute manipulation of a spreadsheet. Either way, once 'monetary disequilibrium' breaks out, look out below! If there is one incontrovertible thing about monetary matters, it is that they offer a field rich in misunderstandings, obtuseness, half-reasoned suppositions, and outright crankdom—much of it a wearily reworked canon of old fallacies dressed up in (terminologically) new clothes by a profession which has long since decided that mathematical dexterity and political expedience is far more important than an awareness of its own history, meaning it never manages to build cumulatively on past insights, unlike the physical sciences which its practitioners so envy, alas! Among the latest vogues is the so-called 'Modern Monetary Theory' - a truly laughable epithet, given that Mises was deriding its Chartalist-founding father Knapp's vainglorious use of exactly the same term almost exactly a century ago. Among its supposed 'breakthroughs' is the truism that a government which issues its own fiat currency can never go bankrupt—at least in an accounting sense—and so should never shrink from commandeering ever more resources from its subjects (we shall overlook the mere trifle that it may well be able to set the nominal terms of its actions, but has little control over the real ones; or that there do, in fact, exist limits to its seigniorage, not least of which the one which arises when the mass no longer accepts the money which it has so determinedly debauched, whether or not taxes are to be paid in it!) One of the classic examples of faux reasoning disported by this soi disant school of innovative thinkers is one which leaps from the tautological observation that a flow-of-funds reckoning of an economy—conveniently, if rudely, carved up into vast, faceless blocs labelled, 'Public' and 'Private'—must see a net private surplus offset by a net public deficit (ignoring the external 'sector' for the moment) and hence, that the overspending state is doing all its subjects a favour by living beyond the means honestly voted to it, otherwise their aggregate desire to acquire net new 'assets' (i.e. retaxed claims on taxes!) could never be fulfilled! On this reckoning, the Greeks, far from being the most fiscally benighted and sorely afflicted of peoples, should rejoice in the effulgence of their status as beacons of true MMT enlightenment and prosperity! Suffice it to say that we can put this canard—one equivalent to saying that we benefit from paying protection money to the Mob if only the Capo holds the monthly dinner party for his lieutenants in our pizza parlour—firmly to rest after carrying out only the most trivial of disaggregations. Absent the predations of the Provider State, individuals may well, on balance, engage in saving (with a view to better providing for their future needs) by acquiring claims on entrepreneurial endeavours, these latter being happy to put the funds so raised—and, by extension, he resources so spared—to a hopefully profitable, productive use. Under these circumstances, the consolidated balance sheet of the private sector will certainly still show a zero balance but the twin aggregates which comprise this will show an expanding count of genuine capital accumulation, even without some insistent spendthrift in office to 'remedy' the associated joint lack by throwing a good war, or an equally useless Olympics! Moreover, MMTers also bruit about the ludicrous idea that such grossly confiscatory measures as are entailed by government spending and borrowing are easily justified because they ensure that an otherwise elusive medium of exchange is called into existence. In effect, they are asking us to believe that, short of having this paternalistic blessing conferred upon us by our selfless Platonic Guardians, it would be utterly beyond the wit of Acting Men to devise some alternative means of lubricating their frequent, voluntary, and so value-enhancing transactions. Risible! As part of their insidious idea that no government can be too big, no deficit too wide—saving only that Leviathan has not foolishly ceded control of the printing press to some party beyond the reach of his coercion—the MMTers also insist that the gargantuan programme of monetisation being undertaken as part of the global bank rescue attempt has not and, moreover, cannot, under any circumstances, lead to 'inflation' (by which they conventionally mean sustained price rises in goods and services, of course). Well, let us here quote the words of an early 20th century thinker on such matters, Harry Gunnison Brown, in the slightly different—but still relevant— context of denying that there can ever be such a phantasmagorical creature as a 'liquidity trap': "...it has been argued… [that] it is impossible for banking policy - or any purely monetary policy devoted to increasing the circulating medium - to bring business back near to normal in any reasonable period, once depression has become acute. For, it is contended, the increased money will in any case merely be hoarded. Depression psychology will prevent borrowing from banks for business expansion, however large... reserves become through favourable Federal Reserve policy. Depression psychology will prevent any person or persons from whom the Federal Reserve banks purchase securities, from either investing or spending the money so received! And if the federal government directly supplements Federal Reserve policy, printing billions of dollars of new money which it then pays out to buy back or redeem federal government bonds, this new money will also be hoarded, every dollar of it, and so will have no effect toward increasing the demand for goods and restoring employment! " "In this view it would appear that if each person in the country, during a period of depression, were put into possession of more money than before whether twice as many dollars or 100 times as many or 10,000 times as many-there would nevertheless be no appreciable increase in spending, no increased demand for goods and no stimulus to business and employment! Instead, production would remain low or even sink lower, spending would remain low or even become less, prices of goods would remain low or fall even lowed All this, of course, is preposterous nonsense but it is to such a conclusion that those economists must inevitably be driven who do not admit that monetary policy can possibly promote recovery from depression." Now it may well be the case that what Brown is here exploding is the nonsense associated more closely with the ineffable Paul Krugman and his fellow-travellers, but the MMTers seem to be even more precariously balanced than he, straddling as they are, the Great Deflationary Abyss— with one foot planted firmly in a land where live those who believe that money can be effective in reigniting a temporarily slackened desire to spend, but with the other dangling in mid-air, well short of the opposite bank where reside those who take this to the logical conclusion that too much money can likewise easily lead to far too much spending, vaulting us headfirst from the frying pan (or the freezer cabinet, as may be the more suitable image) and into the fire of inflation.
Unsurprisingly, this undertaking has seen the prices of bonds, stocks, and commodities increase, even if the usual concomitant of rising property prices has not yet become universal (largely by the happenstance that this was the pre-eminent medium through which the last inflation was given vent and hence its overhang remains largely unliquidated and its components in widespread oversupply in several of the worst offending markets). Just look at the evidence. Despite the unquestioned disruption of the Crash itself and the fire-in-a-theatre rush for liquidity which it occasioned, the central bank expansion programmes at just six prime exemplars have seen their combined balance sheets doubling in the past four years, with more than half that expansion coming since the first emergency injections began in earnest, in early 2009. Money supply has risen by a not incomparable amount, even if the efficacy of the marginal bank reserve in generating bank demand deposits has been reduced lately to below unity (partly, one suspects, because the pre-LTRO, pre-Draghi ECB was expanding more by providing its stricken and mutually-distrustful banks and sovereigns with an intermediate, 'credit-wrapper' than by a deliberate and very un-German recourse to the money-spigot). As a direct consequence, prices have risen—i.e., whatever temporarily elevated desire there has been to hold more money (whatever reduction in 'velocity', if you must); whatever difficulty in accessing the credit with which to economise on the stuff itself; an expansion of the money supply has lead inexorably to a rise in prices—fiscal austerity and output gaps and other such Keynesian mental clutter notwithstanding! To understand why we are here is one thing of course: it is yet another to try to work out where we seem to be heading next. If To answer this we must recognise that the world economy seems to have divided into three camps—a more ebullient US of A, a bemired Europe, and an obscured Asia—so we have a triad of central bank actors to second-guess in each of these if we are to attempt a little divination regarding this question. In the first of them, the Fed seems to have truly let the dogs out: even without the launch of what seems an increasingly-redundant QEII, the aggregates are surging ahead as domestic banks eat into their excess stockpile of reserves (cash down $135 billion, bank credit up $375 bln to a new high, C&I loans up $100 bln). We have previously shown that the rate of money creation is currently further above its 30-year real trend than at any time in that sample, but, for the sake of variety—and with a firm injunction not to take the projections as anything other than broadly illustrative—we look instead at money supply per capita. Here, too, a clear pattern emerges.
As for our second main player, the ECB, this week marks the second great confusion of capital with liquidity comes to its multiple hundreds-of-billions second installment. Expectations are high—as they were ahead of the apparently successful (but yet to be implemented) negotiation of the Greek debt accord. Your author, however, cannot entirely suppress the nagging suspicion that, just as that ostensible landmark brought only grumbling, not relief, perhaps Super Mario will also fail to excite jaded palates and a near-term disappointment might be the result no matter how clear the progress to full Weimarization. We shall see. Further out in Asia, where the world's marginal consumer of and producer of stuff has slipped into the statistical Lunar shadows of the New Year holiday, all is meant to be on the up again as the PBOC has unveiled not one, but two successive cuts in reserve requirements. The act has not exactly been greeted with dancing in the streets, however, one reason for which may be that it has simply addressed a touch of overkill in cranking up the ratios last year. More binding at this stage may be a loan:deposit ratio which seems to have surged to six-year highs. At a point where the average rests only 3 points below the mandatory ceiling, this must leave a sizeable tail of the distribution scrambling to avoid official sanctions and so hardly best placed to swell its constituents' already engorged loan books.
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| Precious Metals Raid: SGTreport Saw It Coming, Sort of… Posted: 29 Feb 2012 02:11 PM PST by SGT:
The danger resistance level SJB was concerned about last night was $37, he was spot on. He thinks that based on the long term trend, the real "lift-off" in silver won't take place until Q3 2012. So I took his advice, I just bought the fricken dip. Today I placed an order to buy a bunch of these fricken cute little .999 pure silver Perth Mint Koalas, at a price far more favorable than what I was quoted on Tuesday evening. For saving me a couple bucks per ounce when I'd planned to make this purchase previously any way, thanks SJB. And despite being a modern day wicked witch of the East, thanks for this latest slam and another discount Blythe. One note of caution, SJB wrote me today: "From now on, I wish to be called "the oracle of western canada"… but in all lower case, like that, so nobody thinks I've gone too far up my own egotistical ass.
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| The Silver Bullet and the Silver Shield – SBSS 17. Warren Buffett Paradigm Puppet Posted: 29 Feb 2012 02:10 PM PST |
| Chris Duane on the Leap Day Metals Massacre – 02-29-2012 Posted: 29 Feb 2012 01:03 PM PST from The Financial Survival Network:
It's interesting to note the purchasing power of silver has been increasing over the past 50 years. In the early 1960′s one silver dollar bought about four gallons of gasoline. Today, the same silver dollar buys around 8 gallons, but it has gone as high as 12 gallons. So much for paper based "assets." Click Here to Listen to the Podcast
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| To end the Fed, Paul will have to start questioning it Posted: 29 Feb 2012 01:03 PM PST 9:08p ET Wednesday, February 29, 2012 Dear Friend of GATA and Gold: At a hearing today of the U.S. House Committee on Financial Services, Rep. Ron Paul did an entertaining job of berating Federal Reserve Chairman Ben Bernanke about the Fed's long debasement of the dollar. Video of Paul's comments has been posted at GoldSeek's companion Internet site, SilverSeek, here -- http://www.silverseek.com/article/ron-paul-assaults-ben-bernanke-paralle... -- and Forbes' Agustino Fontevecchia produced a fair and complete written account, which is appended. But as much as advocates of free markets in the monetary metals may have enjoyed the proceedings, to GATA they were another waste of the most precious opportunity -- the opportunity to pry gold information out of the Fed or to show the Fed concealing its most sensitive secrets. Paul knows these issues intimately. GATA's officers have discussed them with him and his staff several times. He is fully informed about GATA's work. Indeed, in his comments to Bernanke today Paul referred, without naming him, to the case of Liberty Dollar proprietor Bernard von Not Haus, who is facing a federal prison sentence for his conviction on a ridiculous charge of (sort of) counterfeiting, and to the campaign in Mexico led by the president of the Mexican Civic Association for Silver, Hugo Salinas Price, for the introduction of a silver coin as part of a system of parallel money. But talking about these things today, Paul once again let the Fed's great vulnerabilities escape notice. ... Dispatch continues below ... ADVERTISEMENT A Rare Opportunity with Collectible Gold Coins Sovereign debt problems in the United States as well as Europe will worsen this year. The mainstream financial media may never report about the likely inflationary consequences of bailouts and "quantitative easing," nor are they likely ever to recommend tangible assets for financial protection. But at Swiss America Trading Corp. we believe that it is no longer a luxury to own gold and silver coins but rather a necessity. At the moment the public is showing little interest in Double Eagle U.S. $20 gold coins, so the price premiums above the intrinsic melt values (.9675 ounce of gold in each coin) are historically low. The ratio of price to bullion content for these coins has been 2:1 but today it is only about 1.25:1. This is a real opportunity. So give us a call or e-mail and we will be glad to discuss the potential of these coins and how to use a ratio strategy to increase your gold ounces without money out of pocket. In the January edition of his Early Warning Report, Richard Maybury writes: "As they are inherently in very limited supply, I believe that high-quality numismatics will become tulips, eventually rising a thousand percent or more in real terms, when money velocity goes into mid-second stage. In late stage, who knows -- 2,000 percent? 3,000?" All inquiries will receive without charge (while supplies last) our latest book, "The Inflation Deception," as well as our newsletter "Real Money Perspectives." -- Tim Murphy, trmurphy@swissamerica.com -- Fred Goldstein, figoldstein@swissamerica.com Telephone: 1-800-289-2646 Swiss America Trading Corp., 15018 North Tatum Blvd., Phoenix, AZ 85032 For example, Paul could have pressed Bernanke about the Fed's admission, in the course of GATA's freedom-of-information lititation three years ago, of its involvement in gold swap arrangements with foreign banks, an admission contradicting the Fed's many denials of involvement with the gold market: http://www.gata.org/files/GATAFedResponse-09-17-2009.pdf Paul could have asked: Exactly what are those gold swap arrangements? What are they for if not surreptitious intervention in markets? How do they work? Have they ever been implemented? Why must they be kept secret? And Paul could have asked Bernanke about the Fed's many other gold secrets, acknowledged during but carefully preserved against GATA's lawsuit against the Fed, secrets whose locations were specified by U.S. District Judge Ellen Segal Huevelle in her decision in the case a year ago: http://www.gata.org/files/GATAFOILawsuitRuling-02-03-2011.pdf Paul could have cited the judge's decision and asked Bernanke: Why all these secrets about gold? And will the Fed provide the committee with the documents at issue? If not, why not? What are you hiding from the American people and the markets, and why? But it didn't happen, as it hasn't happened at any of the dozens of other hearings where Paul has been allowed a few minutes to question Fed officials. Instead Paul has been content to lecture, even though nearly everyone has heard it all before and simply turns it off. That is, despite his long and heroic work, it seems that Paul just has not wanted to be the one to go down in history as having pulled the plug on the institution he has denounced as parasitic and totalitarian, the institution whose abolition he advocated in his recent best-selling book, "End the Fed." Just a few carefully targeted questions posed in a congressional forum -- questions about its constant and surreptitious intervention in the gold market and other markets -- well might end the Fed. All advocates of free markets and transparent government may wish for his election as president, but that is at best a long shot. As he isn't seeking re-election to the House, Paul now has only nine months left in which he is sure to have the chance to hold the Fed to account. So, Representative Paul, if you really want to end the Fed, stop making speeches and start questioning the Fed. CHRIS POWELL, Secretary/Treasurer * * * Ron Paul Tells Bernanke He Killed The Dollar, Silver Coin In Hand By Agustino Fontevecchia http://www.forbes.com/sites/afontevecchia/2012/02/29/ron-paul-tells-bern... Fed Chairman Ben Bernanke had an interesting morning over on Capitol Hill, facing the ire of Ron Paul and receiving Democratic praise from Barney Frank. Bernanke was testifying before the Committee on Financial Services, where he said the economic recovery continues but remains frail, but was put on the spot by Ron Paul, who pulled out a silver eagle and accused him of debasing the currency and destroying America's wealth. Ron Paul was in full campaign mode. So was Barney Frank. Bernanke was caught in the middle. In what was supposed to be a Q&A session, the Fed chief essentially sat down and listened to one side bash him and the other love him. Frank took the floor after some softballs by Committee Chairman Spencer Bachus, praising Bernanke's tenure as Fed Chairman and pointing to continuing job growth. It was Ron Paul, though, who took the day. In what is usually the most heated and interesting exchange of Bernanke's excursions to Congress, the Fed chairman was forced to sit down and listen as Ron Paul scolded him for "debasing" the currency and "destroying" the wealth of millions of Americans. Ron Paul first asked Bernanke if he did his own grocery shopping, to which the Fed Chairman responded with a yes. Paul immediately cut him off and said "no one believes the 2% inflation rate," claiming it was actually closer to 9%. "Someone is stealing wealth," said Ron Paul, in full campaign mode. He then pulled out a silver eagle, a silver coin that has nominal face value of one dollar that is legal tender. Ron Paul told Bernanke that in 2006, as he took the top spot at the Federal Reserve, an ounce of silver bought about 4 gallons of gas. Today, said Paul, it buys about 11. "That's preservation of value," yelled an excited Ron Paul, before accusing Bernanke of loving paper money and begging him to "legalize competing currencies." Bernanke responded by explaining that anyone can hold whatever currency they want and told Paul he'd gladly help him figure out how to hold euros, yen, or whatever he pleases. Paul once again lashed out, telling Bernanke "the record of what you've done is destroy the currency," before saying he still can't pay his bills or taxes with silver eagles, just as his time was running out and he was forced to forfeit the floor to California's Maxine Waters. As usual, Ron Paul put the focus on what he considers to be the illusory essence of fiat or paper money. This time around, though, Paul didn't let Bernanke respond, making it a one-way conversation. Gold continued to decline through the session, down 3.5% to $1,726.50 an ounce while 10-year Treasuries saw rates firm a little to 1.98%. All three major equity indices were in the red, despite major stocks like Apple and Microsoft hitting new intraday all-time highs. 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 Free Month Subscription to Market Force Analysis for GATA Supporters Market Force Analysis is a unique, patent-pending approach to commodity market analysis. An algorithm has been developed to extract supply and demand weightings from futures market data. The difference between supply and demand is the market imbalance that is called "market force," so named because it is what drives price. It brings clarity to past market action and predicts market trends. Because it is derived from accurate futures market data it is not subject to the errors inherent in macro-level estimates of supply and demand. Learn more here: https://marketforceanalysis.com/About_MFA.html Market Force Analysis focuses on short-term (15 days) and medium-term price predictions to help both short-term traders and long-term investors understand market moves and benefit from the generated prediction of prices. 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| Gold and Silver Plunge On Bernanke’s Remarks – What Happens Next? Posted: 29 Feb 2012 12:40 PM PST The price of gold and silver plunged today after investors concluded that the Federal Reserve had no immediate plans for further quantitative easing. In testimony to Congress Fed Chairman Bernanke made positive comments on future U.S. economic growth. When Bernanke gave no indication that further monetary easing would be necessary, a selling stampede began in [...]
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| Posted: 29 Feb 2012 12:39 PM PST by Gary Kinghorn, DollarVigilante.com:
You cannot make this stuff up. The Cheyenne, Wyoming Star-Tribune reported last week that state representatives advanced legislation to launch a study into what Wyoming should do in the event of a complete economic or political collapse of the United States. The task force would look at the feasibility of Wyoming issuing its own alternative currency (OK, good so far), and "examine conditions under which Wyoming would need to implement its own military draft (Really?), raise a standing army (to fend off looters from Idaho, no doubt), and acquire strike aircraft and (wait for it…) an aircraft carrier". Now, folks, there are some pretty bizarre hypothetical scenarios where you could see, maybe, California thinking about buying an aircraft carrier, but one of the last states that needs one is Wyoming. I know Cheney is from Wyoming and all, but, it's a land-locked Rocky Mountain state that doesn't even have a decent-sized lake! And perhaps it goes without saying, but, one of the reasons the U.S. economy will eventually collapse is because they bought too many aircraft carriers and stuff like that, as opposed to letting people spend their money in more profitable ventures. So, how do Wyoming state legislators justify this? Read More @ DollarVigilante.com
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| Posted: 29 Feb 2012 12:34 PM PST from The Financial Survival Network:
What we are witnessing now is nothing short of a financial cataclysm that will leave an impression on the financial world similar to that of the Grand Canyon on the geological landscape. The nation will be divided between those who have the precious metals and those who wish they had it. Time is running short. Click Here to Listen to the Podcast
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| Posted: 29 Feb 2012 12:13 PM PST The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! February 29, 2012 03:11 PM I see gold close near $1700 and silver under $35. I am travelling back from vacation in Florida and consider this an opportunity for those not yet fully invested in gold and silver. Last call! Train to pull out of the station on the way to new highs by summertime. [url]http://www.grandich.com/[/url] grandich.com...
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| Fed, media today concealed massive liquidity injection, Sinclair tells King World News Posted: 29 Feb 2012 12:03 PM PST 8p ET Wednesday, February 29, 2012 Dear Friend of GATA and Gold: In an interview with King World News tonight, market analyst and mining entrepreneur Jim Sinclair details the intervention against gold undertaken by central banks today. Sinclair says: "Today does qualify as one of the biggest injections of liquidity into the system in the history of the system. Today was a cover-up by the Federal Reserve and by the mainstream media of one of the largest injections of liquidity into the system that has ever occurred." An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/3/1_Sin... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Free Month Subscription to Market Force Analysis for GATA Supporters Market Force Analysis is a unique, patent-pending approach to commodity market analysis. An algorithm has been developed to extract supply and demand weightings from futures market data. The difference between supply and demand is the market imbalance that is called "market force," so named because it is what drives price. It brings clarity to past market action and predicts market trends. Because it is derived from accurate futures market data it is not subject to the errors inherent in macro-level estimates of supply and demand. Learn more here: https://marketforceanalysis.com/About_MFA.html Market Force Analysis focuses on short-term (15 days) and medium-term price predictions to help both short-term traders and long-term investors understand market moves and benefit from the generated prediction of prices. To read subscriber comments that show how much the service is appreciated, visit: https://marketforceanalysis.com/Testimonials.html The MFA service has been pioneered by market analyst and Gold Anti-Trust Action board member and researcher Adrian Douglas. The Market Force Analysis premium service provides: -- A bi-weekly report. -- Access to the MFA hot list of junior mining stocks derived from analysis of more than 800 mining stocks. The MFA hot list consistently outperforms well-known mining share indices like the HUI, GDX, and GDXJ. -- E-mail alerts about actionable trades. -- E-mail updates with important information. To obtain your 1-month free trial subscription to the Market Force Analysis letter, e-mail info@marketforceanalysis.com and put "MFA Free Trial" in the subject field. 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 A Rare Opportunity with Collectible Gold Coins Sovereign debt problems in the United States as well as Europe will worsen this year. The mainstream financial media may never report about the likely inflationary consequences of bailouts and "quantitative easing," nor are they likely ever to recommend tangible assets for financial protection. But at Swiss America Trading Corp. we believe that it is no longer a luxury to own gold and silver coins but rather a necessity. At the moment the public is showing little interest in Double Eagle U.S. $20 gold coins, so the price premiums above the intrinsic melt values (.9675 ounce of gold in each coin) are historically low. The ratio of price to bullion content for these coins has been 2:1 but today it is only about 1.25:1. This is a real opportunity. So give us a call or e-mail and we will be glad to discuss the potential of these coins and how to use a ratio strategy to increase your gold ounces without money out of pocket. In the January edition of his Early Warning Report, Richard Maybury writes: "As they are inherently in very limited supply, I believe that high-quality numismatics will become tulips, eventually rising a thousand percent or more in real terms, when money velocity goes into mid-second stage. In late stage, who knows -- 2,000 percent? 3,000?" All inquiries will receive without charge (while supplies last) our latest book, "The Inflation Deception," as well as our newsletter "Real Money Perspectives." -- Tim Murphy, trmurphy@swissamerica.com -- Fred Goldstein, figoldstein@swissamerica.com Telephone: 1-800-289-2646 Swiss America Trading Corp., 15018 North Tatum Blvd., Phoenix, AZ 85032
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| Posted: 29 Feb 2012 11:55 AM PST British Parliament member Lord James of Blackheath has alleged in a speech before Parliament an elaborate fraud involving the US government lying about hundreds of thousands of tons of imaginary gold, illegal wire transfers and loans totaling $15 trillion: We have no idea whether Lord James is onto something big ... or has fallen prey to the equivalent of a Nigerian internet scam. As the Independent notes:
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| Posted: 29 Feb 2012 11:44 AM PST There are those who voraciously, and blindly, read any and all hedge fund reports, allowing the already useless information to enter one brain hemisphere and exit the other, just so they can brag that they read such and such's monthly or year end letter. Frankly, we pity them, especially when in their attempt to ape success they confuse luck (which is responsible for 99% of hedge fund outliers) for skill, and in doing so constrain their minds even more. At least hopefully they don't spend money on self-improvement books. As for trading recommendations, by the time an idea is in writing, the time to implement it is long gone. Anyway, for precisely this subet of people we provide the Paulson 2011 year end letter. Which is 102 pages. It is amazing how when one is printing money, one can get away with two paragraphs of year end ruminations and the LPs will be delighted. When, however one has brought AUM from $32 billion to under $20 billion net of redemptions, much more reading material is required to justify the 2 and 20, especially if the proceeds are used to invest in AAPL (and speaking of Apple, we wonder how long before the company starts charging a fee of 2 and 20 from all of its shareholders). We won't spend much time dissecting the letter of a fund which blindly invested nearly half a billion in a company that two kids with an office exposed as fraud, suffice to copy and paste the following gem: "We believe this outperformance demonstrates our superior security analysis and selection due to our research edge." Yup, mmmhmmm. All this and much more in the enclosed paperweight. Incidentally, when we said 10 days ago that we have "Horrible News For Goldbugs - Paulson Is Bullish On Gold Again", we were not kidding:
So far the thesis is playing out, and the cheap entry points are here again.
h/t Valuewalk
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| Kitco News interviews GATA Chairman Murphy Posted: 29 Feb 2012 11:35 AM PST 7:30p ET Wednesday, February 29, 2012 Dear Friend of GATA and Gold (and Silver): Kitco News' Daniela Cambone today interviewed GATA Chairman Bill Murphy about his Tuesday commentary about Russian and Chinese government knowledge of GATA's work (http://www.gata.org/node/11041) and about today's smashdown in the gold and silver markets. The interview is several minutes long and you can listen to it at Kitco News here: http://www.kitco.com/kitconewsvideo/ 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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| Sale Prices On Gold And Silver, While Supplies Last! Posted: 29 Feb 2012 11:26 AM PST The ECB just created nearly 3/4 of a TRILLION dollars, and handed it to the financial system...why would anybody sell their Silver and Gold? ECB hands out $712-billion in loans to banks European banks gorged themselves on a second helping of cheap European Central Bank loans as the ECB moved with alacrity once again to avert a banking liquidity squeeze and take the edge off the sovereign debt crisis. On Wednesday morning, the ECB lent €529-billion ($712-billion U.S.) of 1-per-cent money to 800 banks, which was slightly above the consensus figure but well below one or two predictions that as much as €1-trillion would be soaked up. In the last auction, in December, the ECB loaned €489-billion to 523 banks. The loans, known as the long-term refinancing operation (LTRO), were introduced by then-new ECB president Mario Draghi late last year as the bank's prime effort to prevent a Lehman Bros.-style banking collapse on home ground. While the ECB had hosed out cheap loans in the past, under Mr. Draghi's predecessor, Jean-Claude Trichet, they were short-term loans. The new loans have been for an unprecedented three years. The December LTRO was widely credited with triggering a bank rally and bringing down the yields on the sovereign bonds of highly indebted countries, such as Italy. That's because the banks, under the urging of French president Nicolas Sarkozy, used some of the loans to buy government debt. Economists and analysts attached no particular significance to bigger size of the second LTRO operation. There is no doubt that more banks took part on Wednesday because the EBC relaxed loan-collateral requirements, allowing hundreds of smaller banks to participate in the auction. Italian and Spanish banks were the biggest consumers of the cheapie ECB loans in December; together, they absorbed €215-billion of ECB liquidity. Economists think the Italian and Spanish banks were the leading borrowers again today. Greek banks were probably only minor participants in today's auction, because of the ECB's decision this week to suspend the use of Greek government securities in ECB refinancing operations. Since Wednesday's ECB auction included funds rolled in from shorter-dated auctions, a net €314-billion of new liquidity was added to the banking system. In December, the equivalent figure was about €193-billion. Economists generally put a positive spin on Wednesday's auction. Martin Van Vliet, of ING Financial Markets, said "in our view it is a Goldilocks outcome: not overly large as to generate concern about the fragility of the European banking system, but high enough to pre-fund a substantial share of maturing bank debt and spark more buying of Italian and Spanish paper." The euro was down slightly against the dollar after the EBC auction. The FTSE was flat but Eurofirst 300 was up 0.4 per cent. The ECB has hinted strongly that no third LTRO is coming, because of moral hazard. Some of the central bankers, notably those from Germany, fear that the cheap loans are effectively a form of subsidy. In a note published last week, Deutsche Bank's economists said that "bank restructuring is undermined by an overly generous provision of funds from the central bank. "Instead of going through painful restructuring, banks may use the cheap central bank money to fund large-scale purchase of government bonds in the hope to use the profits from the carry trade to strengthen their balance sheets." ___________________________ Over the past 11 weeks, the ECB has created an additional 10% of the Eurozone's entire money supply...Why would anybody sell their Silver and Gold? Bumbling Ben Bernanke has created over $2 TRILLION over the past 6 months and because "he" sees no more reason for more you are going to sell your Silver and Gold? This might make a great headline for those opposed to the TRUTH that Gold represents, but it is NOT a reason to sell your Silver and Gold! (Reuters) - Gold fell 5 percent to below $1,690 an ounce on Wednesday for its biggest one-day drop in more than three years, as speculation that central banks might be done with easy monetary policies led funds to exit the bullion trade. Gold fell nearly $100 and silver was down $3 from session highs. Losses started to snowball at 10 a.m. EST (1500 GMT) after U.S. Federal Reserve Chairman Ben Bernanke did not mention another round of monetary easing was imminent. ___________________________ Another round of monetary easing wasn't imminent? What in the hell do you call the $713 BILLION the ECB just force fed the financial system this morning? When Ben Bernanke talks, why do people listen? Bernanke Tries Talking Down Commodities February 29, 2012, at 1:26 pm by Dan Norcini in the category Trader Dan Norcini |  Print This Post |  Email This Post Click here to visit Trader Dan's website… Dear CIGAs, Today was Fed Chairman Bernanke's chance to testisfy before the Congress' Financial Services Committee. Here is a quick synopsis of his comments as I see them. "The economy is getting better based on what we can see of the employment numbers but it is not growing at a fast enough clip to justify any immediate change in our accomodative monetary policy. The uptick in hiring has been helped by this policy and any change to it at the present time is not warranted. Real Estate is still a concern. Us fiscal condition is dire and faces a serious challenge at the end of this year. Inflation is not a concern although temporary rises in energy prices bear monitoring". There you basically have it. Based on this testimony, gold and silver were murdered. The supposed reason? – We are told that traders were expecting QE3 to be imminent and were disappointed because the usually dovish Bernanke did not sound quite as dovish as before. Thus the metals were hammered mercilessly lower. Excuse me – but as a trader who watches these markets each and every day for more hours than I would prefer anymore, I have not seen any analyst explain the reason for the heretofore rally in the metals as traders EXPECTING AN IMMINENT QE3 program to launch. The reason for the rally has been expectations by the market that Central Banks would keep the liquidity spighots open for the foreseeable future (near zero interest rate policy coupled with QE out of Europe and the UK) and thus create an environment in which there was little opportunity cost for buying the metals. This has been generating RISK TRADES in which traders/investors buy both stocks and commodities and generally sell off the Dollar, which was particularly pronounced after a rush back into the Euro once traders were convinced that the immediate fallout from the Greece debacle was past. Comments this morning trying to explain the sell off in gold mentioned the failure of the metal to make it through the $1800 level and downside stops as the culprit but ironically they are deathly quiet in regards to silver, which only yesterday had staged a MASSIVE UPSIDE BREAKOUT on strong volume out of a congestion zone. Yet today we saw a nearly 8% wipe out in silver which completey erased yesterday's breakout and then some. Click here to read the full article… ___________________________ Following today's announcement by the ECB regarding the creation of $713 BILLION, Gold and Silver prices were firm and beginning to rise. At 7:55AM est Zero Hedge commented: Gold rose 1% in New York yesterday and closed at $1,783.90/oz. Gold rose in Asia to a high of $1,790.16 it's highest since mid November then edged down. Europe this morning saw sideways trading until unusually volatile trading around the London AM fix saw gold rise from $1785.oz to over $1790/oz at 1030 GMT and then fall quickly to $1783/oz. Spot silver has gained another 0.5% to $37.05 an ounce, after surging 4.5% yesterday once it rose above resistance at $35.50/oz. Silver reached a 5 month high of $37.21 but remains more than 30% below its nominal high in of April last year of $48.44. Over 800 European banks have taken €529.5 billion from the ECB today after taking €489 billion euros at the first tender in December. The ECB's 3 year lending is now near 1 trillion euros ($1.35 trillion) and the ECB's balance sheet looks increasingly precarious. Although the flood of paper has been credited with fuelling a rally on Europe's distraught bond markets and safeguarding the region's banks, it is another exercise in kicking the beer keg down the road as it fails to address the fundamental issue which is the insolvency of many European banks and many European nations and the obvious risk of contagion from that. The continuation of ultra loose monetary policies increases the risk of inflation which will benefit gold which is an excellent inflation hedge. Extremely low yields on deposits and "risk free" sovereign debt means the opportunity cost of carrying non yielding bullion remains very low. Spot silver gained 0.4% to $37.05 an ounce, after surging 4% and hitting a 5 month high of $37.21 in the previous session. Silver as ever outperformed gold yesterday and traders attributed the surge to "massive fund buying" and to "panic" short covering. Some of the bullion banks with large concentrated short positions covered short positions after the technical level of $35.50/oz was breached easily. Massive liquidity injections and ultra loose monetary policies make silver increasingly attractive for hedge funds, institutions and investors. This time last year (February 28th 2011) silver was at $36.67/oz. Two months later on April 28th it had risen to $48.44/oz for a gain of 32% in 2 months. There then came a very sharp correction and a period of consolidation in recent months. Silver's fundamentals remain as bullish as ever and the technicals look increasingly bullish with strong gains seen in January and February. Very bullish is the fact that silver also remains more than 30% below its record nominal high 32 years ago in 1980 and more than 75% below its inflation adjusted high of $140/oz in 1980. The gold-silver ratio dropped to its lowest level in 5 months, after silver rose more than 12% so far this month and an enormous 34% this year, outperforming other precious metals. Rising holdings of silver-backed ETF's also indicated growing investor interest in the metal. The overall silver Exchange Traded Funds holdings rose to 491.079 million ounces, the highest since last May. Spot platinum gained nearly 0.5% to $1,722.24, as investors await the latest in Impala Platinum's dealing with an illegal strike that has disrupted production at Rustenburg, the world's largest platinum mine. ___________________________ Coincidentally, at 10AM est as The Money Printer In Chief, Ben "I lie like a filthy doormat" Bernanke took a seat before Congress to tell our "fiscally inept" legislators that pigs look better with lipstick on them, Gold and Silver suddenly disintigrate Yeah like this guy is going to stop printing money in an election year...inflation is barely 2%...and the economy is chugging along. The criminals that inhabit the CRIMEX want you to believe just that:  click to enlarge ___________________________ And you should sell you Silver and Gold? Gasp at the sheer size of El Tro, the €1 trillion money storm raining down on Europe's banks... The FATTEST PRIZE in the world's biggest lottery, El Gordo – the "Fat One" – just keeps getting fatter, according to its promoters. But even the fattest total of prizes to date – some €2.5 billion at Christmas 2011 – looks a tin-ribs next to El Tro, the storm of money now raining down on Europe's banks. Wednesday's Long Term Refinancing Operation took the grand total of giveaway money to more than €1 trillion, pumped out by the European Central Bank and known by the acronym LTRO. It is christened El Tro by us here at BullionVault today via the Catalan for "thunder". Because that's just what people keep calling it – El Tro. "You can't argue with [that]," reckons one Credit Agricole analyst, nodding at the €530 billion which El Tro will hand to commercial banks when the latest chunk of cheap-money loans is settled on Thursday. But he should add two exclamation marks (¡the first upside down of course!) and do PR for the Spanish lottery's El Gordo instead. Because El Tro – Europe's money storm – demands a far stronger sales pitch than that. In just two operations in barely 11 weeks, the ECB has created an additional 10% of the Eurozone's entire money supply, lending out €3,084 for every soul in the 17-nation union. Throw in the non-Euro banks scrabbling to scoop up El Tro's gifts on Wednesday, and this latest offer was met by some 800 different institutions. Even the cash raised from shareholders by all US and Eurozone banks added together during the crisis of 2007-2010 fails to match the size of El Tro's gifts. And make no mistake: the LTRO is a gift. Even if price-inflation subsides to average the ECB's annual target of 2.0% between now and start-2015, the central bank will make a loss of €44.7bn in real terms. Inflation stuck (or pushed above) the latest reading of 2.6% would cost the Frankfurt lenders nearer €62bn...a full 6% of the €1,018 billion now lent out in total. Any bank looking to book an instant profit meantime can simply stick the cash into 3-year government bonds and turn their 1.0% annual cost into 1.10% with Finnish debt, 1.55% with Belgian debt...or a massive 5.41% per year with Italian debt. Hell, you could buy German Bunds and make risk-free money on anything above 6 years to maturity. So c'mon! Everyone's a winner with El Tro. Except the central bank, of course. And the banks themselves, if Belgium, Italy or one of the rest fail to make good on their bond repayments. Which the banks already have a very clear interest in avoiding, seeing how they're backed by state guarantees, whether stated or implicit. |
| Posted: 29 Feb 2012 11:23 AM PST I guess I'd be a little concerned if the gold price wasn't still up almost 10 percent for the year and if silver wasn't still up more than double that amount. Nonetheless, profit taking apparently snowballed after Fed Chief Ben Bernanke failed to even mention the idea that the central bank was prepared to print more money for the greater good if the need arose.
Now, clearly, if you were looking to buy precious metals over the last six months or so, the first of the year was the time to do so, but, there seemed to be plenty of buyers stepping in there at the end of the day as the gold price is now back up to $1,705 an ounce. The GLD ETF added 10 tonnes to its holdings this afternoon and China's central bankers were surely pleased to see today's developments, probably adding to their stash of gold bars once again when Western traders pushed prices lower.
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| Is Gold Backwardation Now Permanent? Posted: 29 Feb 2012 11:14 AM PST Worldwide, an incredible tower of debt has been under construction since President Nixon's 1971 default on the gold obligations of the US government. His decree severed the redeemability of the dollar for gold and thus ... Read More...
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| Gold Price Close Today $1,709.90 Down $77.10 Posted: 29 Feb 2012 10:33 AM PST Gold Price Close Today : 1,709.90 Change : -77.10 or -4.5% Silver Price Close Today : 34.58 Change : -2.56 or -7.4% Platinum Price Close Today : 1,691.10 Change : -30.90 or -1.8% Palladium Price Close Today : 706.65 Change : -13.10 or -1.9% Gold Silver Ratio Today : 49.45 Change : 1.33 or 1.03% Dow Industrial : 13,005.12 Change : 23.61 or 0.2% US Dollar Index : 78.19 Change : -0.38 or -0.5% Franklin Sanders has not published any commentary today, if he publishes later it will be available here. 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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| PayDay for our Silver Trade February 29 Posted: 29 Feb 2012 10:12 AM PST HOUSTON -- It will come as no surprise to Vultures (Got Gold Report subscribers) that today, Tuesday, February 29, silver traded below our trading stop, then rallied back above it inside the one-hour grace period, but then fell again to below the stop level we had just moved up to in our linked technical charts on Sunday evening. Once the trading has triggered our grace period, if the issue trades back significantly above the stop we treat the stop as a "hard stop," meaning there is no grace period for a second test of the stop level the same day. Therefore we moved to the sidelines with our short-term silver trade, which we have been in since December 29 of last year. It's Payday!
Continued...
We probably need not mention it, but the above trade has nothing whatsoever to do with our physical metal holdings, merely our short-term trading for silver. Right or wrong, we are out of the silver market with our short-term trading ammo and that is precisely what trading stops are there for. Our trading discipline is to attempt to place our trading stops so that if gold or silver correct harshly, we harvest a majority of the gains we have enjoyed. If gold and silver then continue on lower, our focus can be on where we believe overwhelming support is likely to form - to decide where we will make our first attempt to reenter. We believe that will indeed be our focus in the coming days. However, if silver immediately finds support right here and moves higher instead, we are very unlikely to jump right back into the market, as our short-term trading ammunition is reserved for those times when we feel the odds are heavily in our favor. Just as they were in December - our last short-term silver trade (this one). Now that we are stopped, if silver advances strongly right away, we will just have to be satisfied with our holdings of physical metal and our exposure through the miners and small resource companies we have chosen to hold until the indicators and our instinct tells us the time has arrived to redeploy our now significantly larger short-term ammunition. As always, the first place to look for where we intend to target for reentry is in the linked technical charts on the subscriber pages. With that, it's PayDay for our silver trade, and isn't that always a good reason to go fishing? The markets will be here when we return…
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| Chris Duane on the Leap Day Metals Massacre–02-29-2012 Posted: 29 Feb 2012 09:36 AM PST
It's interesting to note the purchasing power of silver has been increasing over the past 50 years. In the early 1960's one silver dollar bought about four gallons of gasoline. Today, the same silver dollar buys around 8 gallons, but it has gone as high as 12 gallons. So much for paper based "assets." Please fill out the subscription box on KerryLutz.com to receive your free Financial Survival Toolkit.
This posting includes an audio/video/photo media file: Download Now |
| Posted: 29 Feb 2012 09:17 AM PST February 29, 2012 [LIST] [*]Leap Day lunacy: Asteroids, repeal of the First Amendment, trading gold for oil and — what's this? — a real criminal investigation of MF Global [*]"Everyday Price Index" nearly triple that of the government's official inflation number... while housing priced in gold is a steal [*]Bernanke bloviates, sending "risk assets" down... [*]Patrick Cox on how to profit from an end to animal cruelty... Europe's new money flood... a small-business owner's run-in with new yuppie neighbors... and more! [/LIST] So maybe the Mayans were not correct. It's not in 2012 we have to worry about the end of the world. It's in 2040. Blimey. Scientists have discovered an asteroid hurtling our way — an asteroid half again as wide as a football field, enough to destroy a decent-sized city. "It may come close enough to Earth in 2040," according to an account at the Discovery Channel website, "that some researchers are calling for a discussion about how to ...
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| Posted: 29 Feb 2012 09:13 AM PST A couple of weeks ago, we compared the Bull market of Silver to the Nasdaq Bubble. We wrote that Silver could go as high as $38, but that that might be an inflection point. Silver reached a high of $37.22 last night ... Read More...
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Credit where credit is due. SGTreport contributor SJB called this latest metals slam. In an exchange of e-mails last night he reminded me of 
I still think we'll get another shot at sub-$30-ish silver….. A true Greek default will be a "Lehman Bros. moment", and it stands to be a repeat of 2008."
Leap Day, February 29, 2012 was a momentous day for the precious metals markets. Gold and silver were slammed from 10am EST onward. Millions of ounces of unbacked paper gold and silver stampeded into the markets, destroying all weak holders in the process. But one must wonder how many real weak metals holders are left. Federal Reserve Chairman, Ben Bernanke testified before Congress today, and coincidentally, precious metals raids often occur before, during, and after his testimony.
"Ranting" Andy Hoffman made a special appearance today to discuss one of the most transparent Fed moves in recent memory. Today "Da Boyz" put the brakes on gold and silver. The unbacked Paper Silver and Paper Gold was flowing like Tanqueray and Tonic at a Charlie Sheen rehab party! While these one day results have been quite impressive, the US will be in financial rehab for decades to come. This and so many other market manipulations have all but destroyed any semblance of a Free Market Economy.
Leap Day, February 29, 2012 was a momentous day for the precious metals markets. Gold and silver were slammed from 10am EST onward. Millions of ounces of unbacked paper gold and silver stampeded into the markets, destroying all weak holders in the process. But one must wonder how many real weak metals holders are left. Federal Reserve Chairman, Ben Bernanke testified before Congress today, and coincidentally, precious metals raids often occur before, during, and after his testimony.| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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