Gold World News Flash |
- Silver
- The Joke's On US
- Richard Russell - A New Golden Age or The New Normal?
- Gold Seeker Closing Report: Gold and Silver Fall With Stocks
- Volatility, Fear, Stocks and Gold
- Monday’s With ”Ranting” Andy Hoffman – Live from Inside the Central Bankers’ Minds – 03-05-2012
- Mystery Trader Revealed...And His Name Is 'Hope'
- Lack of Physical Precious Metals Supply Dooms The Fractional Reserve Bullion Banksters ...tick-tick-tick-tick
- Gold Panic Decline Stalls at Averages / Former Resistance
- 15 Potentially Massive Threats To The U.S. Economy Over The Next 12 Months
- Bill Fleckenstein: Fears of a Banking Collapse, Dow 13,000 & Gold
- The Wisdom of Uncle Ted
- Financial Conditions Deteriorate in Europe / Credit Event in Greece Looks Likely / Another Raid On Silver And Gold
- Traders Got Robbed
- 2012 CIGA Meeting Webcast Now Available
- Gold: Manipulation and Confiscation
- Morgan Stanley's Latest 'Commodity Thermometer'
- - Breaking News - “Return to the Gold Standard would be Damaging!”
- The 400% Man
- Gold Price Fell Below the Critical $1,705 Support How Far Can it Fall?
- Gold's Violent Downside Reversal
- Silver's Failure to Breakout
- Silver clinging to Support at $34
- Fleckenstein - Fears of a Banking Collapse, Dow 13,000 & Gold
- Gold Investor Fantasies Not an Investment Strategy
- Gold Falling Below $1690 Could Spark Fresh Selling
- On Contagion: How The Rest Of The World Will Suffer
- Monday’s w/”Ranting” Andy Hoffman–Live from Inside the Central Bankers’ Minds–03-05-2012
- Playing the Gold, Silver Equities Selloff: Stephen Taylor
| Posted: 05 Mar 2012 05:57 PM PST
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| Posted: 05 Mar 2012 05:27 PM PST Our whole system or Rule of Law and accountability has completely broken down at the highest levels of Government and banking. Our system is no better than the Banana Republics we grew up to mocking and despising - THAT's our system now... It's now starting to look like Jon Corzine and JP Morgan both are going to get away with hijacking customer funds. I predicted early on that 1) the original amount of missing $600 million in customer would funds would turn out to be a much greater amount and 2) that Corzine and Company would get away with robbing from the middle class and giving to the wealthy. There's just no justification whatsoever for that customer money disappearing and no one is being held accountable for it other than that Wall Street executives feel entitled to loot and plunder the country's wealth free from fear of prosecution. It surprised me that no one involved in the banking collapse of 2008 was investigated or prosecuted. The entire situation was bleeding fraud and corruption. But it blows my mind that Corzine and JP Morgan can openly steal like this and get away with it LINK Obama ran on a platform that included cleaning up Wall Street and DC. Not only has he not honored that promise - that pact with his supporters - but fraud and corruption has become a lot worse. In fact, it's gotten to the point where the perpetrators don't even try to camouflage their crimes, because they know the Government looks the other way and it seems that most people don't give a shit. And Tim Geithner has decided that he can't bothered paying taxes or with court subpoenas. It turns out that apparently Geithner, when he was head of the NY Fed, was involved in the transfer of $8 billion in assets from Lehman to JP Morgan - there's JP Morgan again - right before Lehman collapsed. The Lehman creditor's committee would like to bring Geithner in to ask him some questions surrounding his knowledge of the asset transfer. Geithner made 35 calls to then Lehman CEO Richard Fuld and 10 to JPM's Jamie Dimon the week before the asset transfer and the subsequent Lehman collapse. Geithner decided that he couldn't be bothered with answering questions so he simply ignored the subpoena. Now the creditor's committee is appealing to the judge overseeing the bankruptcy to compel Geithner to appear. You can read the story about this HERE. What's mind-blowing about this is that Geithner is a public employee and should be held to the highest standard of integrity and truth. As a public servant, and especially since north of a trillion dollars of public money was used to prop up the banking system, Geithner should be jumping through hoops for the creditor committee. It's almost like he's taunting the entire legal system and the people who voted in his appointer, Obama, by ignoring the subpoena. What better use of his time does Geithner have? Because, quite frankly, he's been completely useless as a public servant serving as Treasury Secretary. It really underscores what a joke our entire system as become. 
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| Richard Russell - A New Golden Age or The New Normal? Posted: 05 Mar 2012 04:12 PM PST  With gold holding near the $1,700 level, today the Godfather of newsletter writers, Richard Russell, had this to say about what is happening in the markets and on the streets: "Treasuries provide you with zero or minus yields. So, in general the little guy is stuck with whatever meager money his salary brings in after taxes. And as for savings, well, that's just the dream of a decade ago."
This posting includes an audio/video/photo media file: Download Now | |
| Gold Seeker Closing Report: Gold and Silver Fall With Stocks Posted: 05 Mar 2012 04:00 PM PST Gold fell $16.90 to $1694.70 at about 4:45AM EST before it rebounded to $1709.86 and then dropped back to $1694.23 in New York, but it then bounced back higher midday and ended with a loss of just 0.37%. Silver slipped to $33.971 before it shot up to $34.754, but it then fell back to $33.53 by early afternoon and ended with a loss of 2.1%.
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| Volatility, Fear, Stocks and Gold Posted: 05 Mar 2012 03:06 PM PST Volatility, Fear, Stocks and GoldCourtesy of Chris Vermeulen Over the past 5 months we have seen volatility steadily decline as stocks and commodities rise in value. The 65% drop in the volatility index brings it to a level where it has triggered many selloffs in the stock market over the years - this reflects investors becoming more and more comfortable and greedy with rising stock prices. Looking at the market from a HERD mentality and seeing people run to buy more stocks for their portfolio has me on edge. We could see a strong wave of fear/selling hit the S&P 500 Index over the next two weeks catching the masses with their hand in the cookie jar . . . again. If you don't know what the volatility index (VIX) is, think of it as the fear index. It tells us how fearful/uncertain investors are or how complacent they are with rising stock prices. Additionally a rising VIX also demonstrates how certain the herd is that higher prices should continue. The chart below shows this fear index on top with the SP500 index below and the correlation between the two underlying assets. Remember the phrase "When the VIX is low it's time to GO, When the VIX is high, it's time to BUY". Additionally the Volatility Index prices in fear for the next 30 days so do not be looking at this for big picture analysis. Fear happens very quickly and turns on a dime so it should only be used for short term trading, generally 3-15 days. Volatility Index and SP500 Correlation & Forecast Daily Chart:
Global Issues Continue To Grow But What Will Spark Global Fear? The stock market has been on fire since the October lows of last year with the S&P 500 Index trading up over 26%. It has been a great run, but is it about to end? Where should investors focus on putting their money? Dividend stocks, bonds, gold, or just sit in cash for the time being?? Below is a chart of the Volatility index and the gold exchange traded fund which tracks the price of gold bullion. Notice how when fear is just starting to ramp up, gold tends to be a neutral or a little weak? But not long after investors start selling their shares of securities we see money flow into the shiny yellow safe haven. Gold & Fear Go Hand-In-Hand: Daily Chart Looking at the relationship between investor fear/uncertainty and gold you will notice scared money has a tendency to move out of stocks and into safe havens.
Trading Conclusion Looking Forward 3 months… I think the financial markets overall (stocks, commodities, and currencies) are going to see a rise in volatility. Larger daily swings inherently increase the overall downside risk to portfolios. To give you a really basic example of how risk increases, look at the daily potential risk the SP500 can have during different VIX price levels: Volatility index under 20 - Low Risk: Expect up to 1% price gaps at 9:30am ET, and up to 5% corrections from a previous high. Volatility index between 20-30 - Medium Risk: Expect up to 2% price gaps at 9:30am ET, and up to 15% corrections from recent market tops or bottoms. Volatility index over 30 0 High Risk: Expect 3+% price gaps at 9:30am ET, and possibly another 5-15% correction from the previous VIX reading at Medium Risk To continue on my market outlook, I feel the stock market will trade sideways or possibly grind higher for the next 1-2 weeks. During this time, volatility should trade flat or slightly higher because it is already trading at a historically low level. It is just a matter of time before some bad news hits the market or sellers start to apply pressure; either of these will send the fear index higher. I hope you found this info useful and if you would like to get these reports free every week delivered to your inbox be sure to join my FREE NEWSLETTER HERE: www.GoldAndOilGuy.com
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| Monday’s With ”Ranting” Andy Hoffman – Live from Inside the Central Bankers’ Minds – 03-05-2012 Posted: 05 Mar 2012 02:31 PM PST from The Financial Survival Network:
Click Here to Listen to the Podcast
This posting includes an audio/video/photo media file: Download Now | |
| Mystery Trader Revealed...And His Name Is 'Hope' Posted: 05 Mar 2012 01:40 PM PST The UK's Daily Mirror newspaper has uncovered the FX trader who dropped over $300k in a Scouse club. It is a 23-year old 'self-taught' barrow-boy named (somewhat ironically in our view) Alex Hope. Self-described as "talented (three years in and a six-figure salary, hhmm), charismatic (its amazing how much 'charisma' a GBP125k bottle of bubbly will buy), and thoroughly likeable (ditto) man. Alex Hope exudes knowledge..." and is willing to share it with you according to his website. How did he become this B.S.D. of the FX markets? "I took two months off my job at Wembley, got really obsessed with reading charts and got the guts to start trading properly." This self-made rosy-cheeked young man with a penchant for mind-numbingly-arrogant-looking photos on his website may have just become the poster boy for all that is 'great' about the free market - or perhaps a skim through his blog and media exposure will reassure us all that anything is possible as we note he does have some good taste (not just in Champagne) in RTing our posts on Twitter.
We can only HOPE that the next time he decides to go down the rub-a-dub-dub for a Leo Sayer, maybe he'll take some of us Septic Tanks with him on the frog-and-toad...as the days of the ship-it-in-large-on-the-left John, done-a-yard by-breakfast spot FX trader are clearly back with us.
And here is his Bio, enjoy:
We can only assume that his current place of employ, Zone Invest, will soon be doubling his base as the offers come flooding in as momo funds rotate from AAPL to HOPE...
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| Posted: 05 Mar 2012 01:30 PM PST A few days ago in a blog post I asked: Is The Demand For Physical Silver About To Overwhelm Supply? After last weeks OBVIOUS Precious Metals Market manipulation, the only answer to that question has got to be yes. The banks that have sold MILLIONS of ounces of Silver that they do NOT own have been exposed. Silver's price breakout at $35.00 Wednesday, February 22, and subsequent short squeeze initiated Monday morning ahead of First Notice day to take delivery in the March CRIMEX Silver contract signaled that the criminal bullion bankers were indeed up the creek without a paddle. Action, no matter how criminal, was needed to bail these pathetic bankers out of a situation that bordered on their annihilation. The buying that the Silver market witnessed as trading opened last Monday was "panic buying"...the Silver train was about to leave the station. As the momentum traders entered the Silver Market following the $35 price breakout, the shorts, already enduring pain, were forced to cover and add fuel to the fire a breakout in Silver had started. The criminal bankers had no one to blame but themselves for the HUGE loses they were experiencing on their naked short positions. But in true 21st century banking tradition, our bad bet bankers chose to make the honest Silver Market participants pay for the banks loses on their naked short positions by bombing the Gold Market with an outrageous mountain of paper Gold in an effort to chase March Silver Contract holders from their positions as Silver prices fell in sympathy with Gold. From www.lemetropolecafe.com : [please subscribe] Reported massive 31 tonne sell order triggered gold and silver price collapse Does the crash in gold and silver prices, reportedly due to a single huge 31 tonne gold sell order, create a window of opportunity for precious metals investors? Author: Ross Norman Posted: Thursday , 01 Mar 2012 LONDON A reported 31 tonne sell order on the CME rocked gold which saw prices collapse from a high of $1790 in London hours to $1703 during NY trading, followed by a further dip to the low of $1687 in out of hours electronic trading. A fall of over 6% which erased roughly half of the gains since the beginning of the year. Much has been placed on the testimony by Fed Head Bernanke but other markets saw less impact leading to suggestions that it simply provided an excuse for a particular "non US" fund to bail and take profits in dramatic fashion. It may be possible that the seller had hoped the 1,000 lot sell order would trigger stops and thereby exaggerate the move lower, allowing the buying to potentially come back in at a much lower price. Like the price, there is much speculation on their motive. Ordinarily if a seller wanted to get the best price for his metal he would seek to finesse the selling over time, hunting out liquidity (finding people who are the other side of his sell order) and thereby ensure he gets the best possible profit. This seller was clearly simply out for effect… -END- You have to be kidding me! A hedge fund was waiting in the lurch waiting for Bernanke to speak and then dumps 31 tonnes on the market? Submitted by cpowell on 08:32AM ET Thursday, March 1, 2012. Section: Daily Dispatches 11:35a ET Thursday, March 1, 2012 Dear Friend of GATA and Gold: Friends have sent the full text of the CIBC gold market note from yesterday that was quoted in part at GoldAlert here: http://www.goldalert.com/2012/02/large-seller-in-the-market-as-comex-gol... The full text reads: "Looks like a large seller of gold in the market, as a 10,000 contract traded, down-ticked the price by $40 per ounce, and represents 1 million ounces of gold sold. Roughly 200,000 contracts trade per day, but unusual to see such a large single trade. Not likely due to contract expiry either. Bernanke isn't really helping either, but we haven't seen any either-size transactions post the one big trade, so hopefully will see the price decline settle down. Shortly after the 10,000 order, which was closer to 11,000 contracts, looks like one size seller out there. Sold 1.8 million ounces of gold on the day. Smells like a liquidity squeeze." That kind of selling certainly gives the impression of someone with immensely deep pockets trying very hard to drive the price down while a congressional committee was taking testimony from the world's leading central banker, Federal Reserve Chairman Ben Bernanke, who, perhaps not so coincidentally, also has immensely deep pockets. CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. "Curiously I was logged into Bullionvault.com [1] at the time Bernank started speaking and huge offers appeared at exactly the same time in silver and then in gold - just as they appeared in the US futures market as described below In my view evidence of a very clearly coordinated intervention across all platforms." Adam Cleary One thing for sure though, it was no liquidity squeeze. That part was all wrong the way I see it. You don't have liquidity squeezes when a market is on its highs, rolling along to the upside, and outside markets are all copacetic. Liquidity issues appear when there are cash crunches, and or, overall fear about losing too much capital is pervasive. Never in financial market history has a market been so misreported. It is no wonder the general public is so gold/silver clueless. They listen to the likes of Dennis. I can't recall ONE TIME when he was on CNBC that he was bearish when gold was rising and bullish when it tanked like it did today. It is times like this when investors ought to be taking advantage of the gifts The Gold Cartel is handing them. Actually, a number of them are, the ones who don't watch CNBC. An email sent to CP and me yesterday: I thought that you guys would want to know that we had nothing but buyers on this pullback today...all day and into tonight. We had very heavy gold and silver buying. Best regards, Dan Ward Owner True Metals Group www.silver50.com Jesse on the case… 01 March 2012 A Single Large Seller Smashed the Gold Market Yesterday: Dr. Evil Strategy? There are a variety of reasons to liquidate a large position. But whatever the reason, no experienced trader would take a very large position into a thin market and then just dump it at the market, if they wanted to achieve some sort of reasonable economic benefit from selling that position, unless they were under duress, or had some other motive than profit. Such a trade is called 'selling against yourself.' Usually one diversifies their positions slowly and carefully, selling some and buying others without roiling the markets. At some point their trading becomes know, but by then it is fait accompli. Unless of course they have a strategy to lose some in one market while making huge profits and buys in others at cheap prices, as in the case of the mining sector for example. Here is one old hand explaining how funds rig the markets. A trader who was being paid to obtain the best value for the seller would be fired if they simply dumped a large position in the market, driving the prices realized down almost 10 percent in less than an hour. The same situation occurred at roughly the same time in the silver market, as hundreds of millions of paper ounces of silver were just dumped in the market in less than an hour, breaking the price down dramatically. Such unbridled selling triggers other selling, as the complex web of trades and relationships drive other parties to liquidate their positions and trigger stop loss orders. I have described in the past how the big trading desks use the Dr. Evil tragedy to artificially disrupt markets. Regulators are in place to prevent such things from happening. And this is the story of the economy and the governance of the US markets today. There is little rule of law, only the power of size. And it will get worse as the paper game comes closer and closer to default. Personally I think there were multiple reasons and beneficiaries from yesterday's market action in the metals. When the word goes out from some powerful party, others in the market find out and craft their own strategies and trades to benefit from this insider information. This is how outsized profits are made. I believe that some parties who were heavily short silver were staring into the abyss, seeing a first delivery notice going out into a paper market that is many multiples of their ability to deliver silver into it. And a default of a major commodity exchange would have disastrous results for the confidence in the markets, already stretched thin by fraud and scandal. So let's see what happens. Because when these things happen, these artificial market operations, they only tend to reinforce the primary trend, the shortage of real bullion caused by many years of price manipulation and underinvestment. And when that tide of corruption goes out, 'we will see who was swimming naked,' as someone who some years ago owned a huge amount of silver, and then capitulated under duress and sold it, once said. And he remains bitter about it to this day. *** Folks a 31 tonne sell order in Gold, an order that hit the market in one fell swoop at 10AM [exactly as Ben Bernanke stepped before Congress to deliver his annual assessment of the economy] is the equivalent of OVER ONE MILLION ounces of Gold. Outrageous! Even more shocking than this single Gold order was to learn that over 500 MILLION ounces of Silver trade on the CRIMEX last Wednesday. Only 700 MILLION ounces of Silver are mined globally each year, and 500 MILLION traded in ONE session on the CRIMEX? From King World News Today billionaire Eric Sprott told King World News that a staggering 500 million ounces of paper silver traded hands during the takedown in the metals this week. Eric Sprott, Chairman of Sprott Asset Management, had this to say about what took place the day of the plunge in gold and silver: "I can only imagine it's the same forces that for the last twelve years have been at work in the gold market, trying to keep the volatility very large on the downside. As you are aware, we hardly ever get days when you get an intraday $100 rise in gold. When we look back at what happened (on Wednesday) we saw huge sell orders in gold and silver." LISTEN HERE ___________________________ Did you buy "physical"Silver today? I did as prices retested last Wednesday's lows just before the CRIMEX closed this afternoon. Could prices continue lower...sure. It just doesn't seem likely though. has a criminal hit in the price of Silver ever resulted in a drop in DEMAND for REAL PHYSICAL SILVER? NO! Demand always increases when prices drop. The hit in both Gold and Silver may have gotten the criminal bankers out of the kettle, but the water is still boiling people. Bernanke's B.S. Bludgeons Bullion Written by Jeff Nielson The U.S. economy is "healthy"? As I have pointed out on previous occasions, 0% interest rates are nothing less than an economic defibrillator – a (temporary) desperation measure to attempt to breathe life into a dying economy. Permanent 0% interest rates simply mean that economy is already dead, as we have seen with Japan. All that remains to be done is to put these zombie-economies out of their misery, through debt-default followed by massive restructuring. As I have stressed in my recent commentaries, it is also beyond absurd for B.S. Bernanke to pretend that the Federal Reserve has ceased its money-printing orgy. The gravity-defying U.S. Treasuries market provides conclusive, mathematical proof that such a claim is tantamount to an admission of massive fraud. Maximum bond prices at a time of maximum supply defies every economic principle in the books. Maximum bond prices at a time of maximum supply, when the largest buyer (China) has been selling Treasuries for more than a year, when the "economic surpluses" which financed Treasuries-buying have nearly vanished, when Treasuries auctions have been rigged so that no one knows who the buyers are, and at a time when the U.S. economy is obviously and hopelessly insolvent defies legality. Someone, somehow is financing the totally opaque purchases of $trillions in U.S. Treasuries, and the list of suspects is rather short: the Federal Reserve. If the Fed is not financing those purchases with its officially/legitimately created funny-money then it must be doing so in some less-than-legitimate manner. More broadly speaking, it demonstrates the terminal stupidity of the entire mainstream media that they could believe anyone claiming there will be little-to-no-inflation, in a world of deadbeat-debtors – who can only continue to finance their economic Ponzi-schemes through exponentially increasing their money-printing (and thus diluting their currencies, and thus producing inevitable inflation). The only other mathematically-possible scenario is debt-default: bonds immediately going to zero (or close to it). Otherwise, exponential money-printing takes the underlying currencies to zero, also making the bonds worthless. Either way we are 100% certain to get to the same result. Paying maximum prices for any of these paper time-bombs goes well past idiocy and all the way to deliberate economic suicide. As I have explained on a number of previous occasions, in either a debt-default or hyperinflation scenario gold and silver prices will explode in an equally exponential manner – again as a function of basic arithmetic (along with supply and demand). Thus the long-term upward revaluation of precious metals is as certain as sunrise following sunset. With the supposed "reasons" for gold and silver prices going lower being exposed as ridiculously fraudulent propaganda, once again we are left no explanation other than market manipulation to explain the abrupt plunges in the prices of gold and silver – just as they had achieved technical break-outs indicating that prices should move substantially higher. With both the fundamental factors and the technical factors absolutely and unequivocally bullish, there is no conceivable, legitimate explanation for the price moves seen on Wednesday. While it may frustrate the readers who send me their mail seeking guidance, I have essentially ceased any/all short-term predictions for the precious metals sector. My reasoning is elementary. Market manipulation is both an exogenous and arbitrary event. As such, the timing of manipulation events can never be predicted – except as a response to any/every potential break-out with gold, silver or the mining stocks. The Catch-22 here, however, is that while we know the banking cabal will attempt to manipulate the market lower any time there is a break-out, sometimes they succeed and sometimes they fail. And when they fail, the train has left the station, and it's never coming back. Equally, whenever any "manipulation operation" is underway, both the duration and intensity of the event are also arbitrary, and thus these factors (as a matter of logic) can also never be predicted. Given these parameters, investors have two (and only two) strategies open to them. They can continue to attempt to play the swings in the markets (knowing those swings are absolutely unpredictable). This is nothing less than pure gambling, and thus (in my own humble opinion) plays directly into the hands of the banksters. The other alternative is to recognize we cannot predict the unpredictable, and are thus relegated to playing "pure defense". In this context, this would seem to dictate a strategy as simple and conservative as dollar-cost averaging (or some close proxy). Remember that as long as we are able to exchange (worthless) paper for (valuable) metal at all that ipso facto this means the metal is "cheap". Ignore the market fraud of the banksters. Ignore the wild gyrations in prices – and just keep buying real, "physical" bullion. The Achilles Heel of the banksters is that they require significant amounts of real bullion to leverage in their illegitimate paper manipulations, and you cannot leverage zero. When the banksters run out of bullion, their paper-fraud schemes come to an end. The latest desperation attack on the gold and silver markets is equivalent to pushing down (very hard) on a spring. Ultimately there is always a counter-reaction to such economic force – even if it is delayed. That counter-reaction will inevitably mean an even more violent explosion upward in prices. While we should avoid trying to time these manipulated markets, there would seem to be no more fortuitous time to buy than right after another of the banksters' fraudulent take-downs. Bon appetit! ___________________________
Got Gold You Can Hold? Got Silver You Can Squeeze? It's Not Too Late To Accumulate! 
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| Gold Panic Decline Stalls at Averages / Former Resistance Posted: 05 Mar 2012 12:54 PM PST courtesy of DailyFX.com March 05, 2012 01:03 PM Daily Bars Prepared by Jamie Saettele, CMT Gold plunged last week (last Wednesday) after failing ahead of the November high. The market has stabilized just above the 50 day average and former January resistance. I’ve no confidence in the larger pattern but will note that gold has traded in roughly a $300 range since September (if you must trade gold, then play the range). Bottom Line – no idea...
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| 15 Potentially Massive Threats To The U.S. Economy Over The Next 12 Months Posted: 05 Mar 2012 12:46 PM PST from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| Bill Fleckenstein: Fears of a Banking Collapse, Dow 13,000 & Gold Posted: 05 Mar 2012 12:43 PM PST from King World News:
Bill Fleckenstein continues: Read More @ KingWorldNews.com
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| Posted: 05 Mar 2012 12:41 PM PST from TFMetalsReport.com:
Read More @ TFMetalsReport.com
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| Posted: 05 Mar 2012 12:33 PM PST by Harvey Organ: Dear Ladies and Gentlemen: Gold finished the comex session down $5.80 to $1703.00 Silver was the object of interest falling by 81 cents to $33.67. Most of the fall occurred after the second fix. The high open interest in silver certainly provided the fodder for another attack orchestrated by our bankers today. As you will see in the numbers, Read More @ HarveyOrgan.Blogspot.com
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| Posted: 05 Mar 2012 11:22 AM PST www.preciousmetalstockreview.com March 3, 2012 The week was dominated by strong markets and stocks but the main focus was the huge gold and silver smashing which was obviously a successful attempt to take prices down. It was manipulation plain and simple. Whether the SEC looks into this or not remains to be seen but it would not take them more than 5 minutes to prove this was a manipulation effort. The problem is that it was their bosses who did it! Nothing will come of this and the gold and silver bull markets are strongly intact with this latest effort only affecting traders, including our recent trading positions in gold and silver. It happens I suppose, but it was theft. Someone literally came and took money from our trading account within the blink of an eye. It was theft plain and simple but it’s ok because our physical positions profits are far outweighing these small little crumbs the scumbags took from us t...
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| 2012 CIGA Meeting Webcast Now Available Posted: 05 Mar 2012 11:12 AM PST Jim Sinclair's Mineset Dear Friends, The history of this period will focus attention on two economic clutch type events. These events will have mandated the need for the construction of a new monetary system utilizing a virtual reserve currency traded only by central banks. This reserve currency will be related to gold via a global Western world M3. An economic clutch type event is one that by its occurrence allows the world to shift gears and change into a new economic velocity and direction. The first economic clutch event took place when the decision was made that the US Federal Reserve and US Treasury would not support a rescue of the prestigious investment firm of Lehman Brothers. By doing this, they threw that institution and all of its transactions in which it was the deficit other party into default via bankruptcy. Before then the entire OTC derivative debacle had a simple but extremely controversial solution. The tactic would have been sim...
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| Gold: Manipulation and Confiscation Posted: 05 Mar 2012 11:10 AM PST March 5, 2012 [LIST] [*]End of an era... whom can The 5 mock next? At least Chavez is still around... [*]Gartman comes around to gold manipulation... Faber warns of gold confiscation... (a reader engages in self-flagellation...) [*]Two factors that will keep oil in a tight range this week...how to pocket a handsome profit by week's end if it does... [*]Something America can do right! (for the first time since 1949)... [*]The problem with many cancer drugs... and how it could soon be solved [*]One chart captures the dramatic decline of a dinosaur industry... readers riff on the word "fraudclosure"... comparing gold with tulips (uh-oh)... and more! [/LIST] We start the week with heavy hearts. One of the world's most reliable boobs was rendered irrelevant over the weekend. Five years of relentless mockery in these pages are coming to an end. Not with a bang, but a whimper. "Ahmadinejad Reduced to Lame Duck," says a headline in The Christian Science Monitor after ...
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| Morgan Stanley's Latest 'Commodity Thermometer' Posted: 05 Mar 2012 10:50 AM PST Two weeks ago we presented the latest and greatest "commodity thermometer" courtesy of Morgan Stanley's commodities team. Below is the latest just released iteration. Not much of a change, with gold still the most loved, and inc the most hated (this could well be one of those "endorsed by John Paulson" moments), and the only notable change being that silver has pushed above Live Cattle and entered the Top 5.
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| - Breaking News - “Return to the Gold Standard would be Damaging!” Posted: 05 Mar 2012 10:42 AM PST Mark J. Lundeen [EMAIL="Mlundeen2@Comcast.net"]Mlundeen2@Comcast.net[/EMAIL] [EMAIL="Mlundeen2@Comcast.net"][/EMAIL] 03 March 2012 Before I lambast Reuters' for sending a rookie, know-nothing reporter to cover the gold standard, let's take a look at the stock market for the week. There can be no doubt that the stock market is moving on to a new phase in its bull market. No kidding, that's all that CNBC talked about this week. We've certainly seen the Dow flirting with 13,000 over the past month, but we don't know for sure whether it is contemplating marriage to it as the market moves into March. Look at the daily trading for the past month in the table below. Yes, on February 28, the Dow Jones did kiss 13,000 at the close, but only with a little $5.12 peck on the cheek. Well, as of the close on February 28, $5.12 didn't buy much at MacDonald's, and to my way of thinking it buys even less in the stock market. Then today, Friday, for the first time since February 21 (...
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| Posted: 05 Mar 2012 10:21 AM PST On a fall day in 2010, half a dozen wealthy investors and portfolio managers converged on an office in midtown Manhattan. These were serious Wall Street moneymen; in aggregate, they handled more than a billion dollars. They had access to the most exclusive hedge funds and investment partnerships and often rubbed shoulders with the elite of New York, Greenwich and Palm Beach. But on this day, they had turned out to meet an unknown college dropout from Utah — and to find out how he was knocking them all into a cocked hat. The unknown, Allan Mecham, had been posting mind-bogglingly high returns for a decade at a tiny private-investment fund called Arlington Value Management, and the Wall Streeters were considering jumping on board. For nearly two hours, they peppered him with questions. Where did he get his business background? I read a lot, he replied. Did he have an MBA? No. I dropped out of college. Did he have a clever computer model or algorithm? No, he replied. I don't use spreadsheets much. Could the group look at some of his investment analyses? I don't have any of those either, he said. It's all in my head. The investors were baffled. Well, could he at least tell them where he thought the stock market was headed? "I don't know," Mecham replied. When the meeting broke up, "most people left the room mystified," says Brendan O'Brien, a New York City money manager who was there. "They were expecting to see this very sharp-dressed, fast-talking guy. They were saying, I don't get it, I don't understand why he wouldn't have a view on the market, because money managers get paid to have a view on the market." Mecham has faced this kind of befuddlement before — which is one reason he meets only rarely with potential investors. It's tough to sell his product to an industry that's used to something very different. After all, according to their rules, he shouldn't even be in the business to begin with. Over a 12-year stretch, through the end of 2011, Mecham, now a mere 34 years old, has earned an astounding cumulative return of more than 400 percent by investing in the stock of U.S. companies — many of them larger ones like Philip Morris, AutoZone and PepsiCo. That investment performance leaves the stock market indexes and most mutual funds trailing far in the dust. Of the thousands of mutual funds in America, only a smattering of stock-oriented funds have done better, according to Lipper. Arlington, which is structured like a hedge fund, has put most firms in that category deep in the shade as well. It even managed to turn a profit during the crash of 2008, when Standard & Poor's 500-stock index fell nearly 40 percent. And Mecham has done this mostly while sitting in an armchair, in an office above a taco shop, in downtown Salt Lake City. Mecham doesn't look, talk or act like a typical Wall Street manager. He's soft-spoken. He doesn't use jargon. He dresses like he works in a bookshop, with a patterned shirt and a plain tie. And the story of his success, arguably, says a lot about the flaws of the fund-management industry. By his own account, and those of other investors who have vetted his fund, Mecham has no secret sauce or amazing algorithm; what's extraordinary about this young man is how ordinary he is. But his investment approach relies on a handful of common-sense tactics — focusing on just a few stocks, for example, and avoiding or ignoring short-term statistical analysis — that big money-management firms either can't use or are reluctant to try. Skeptics and admirers alike agree that Mecham's approach involves a higher-than-usual potential for hefty losses. Russ Kinnel, director of fund research at Morningstar, says most fund customers would be unlikely to take that chance. "Pension funds, consultants, investors in general are quite benchmark-centric," Kinnel notes; they get uncomfortable when their money managers deviate. But that notwithstanding, it would be a bit of a stretch to characterize Mecham as a rebel — this is a man, after all, for whom one of the highlights of the past year was a trip to Omaha. (He took his girlfriend to Warren Buffett's annual investment conference.) As does virtually every other manager in the business, Mecham says he would like to raise more capital to invest — his firm is small, with $80 million under management. But for now, the handful of pros who have jumped on his bandwagon are happy to have the fund remain undiscovered. It's clear that several think they're onto something special. After the awkward New York meeting, O'Brien, who runs Gold Coast Wealth Management, was sufficiently intrigued to do more digging — and after spending months talking with Mecham and checking his results, he got on board, investing more than $1 million with the Utah unknown. "To use a sports analogy," O'Brien says, finding Mecham was like "one of the rare few times when a star free agent becomes available in the beginning of his prime."
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| Gold Price Fell Below the Critical $1,705 Support How Far Can it Fall? Posted: 05 Mar 2012 10:12 AM PST Gold Price Close Today : 1703.00 Change : (5.80) or -0.34% Silver Price Close Today : 33.651 Change : (0.830) cents or -2.41% Gold Silver Ratio Today : 50.608 Change : 1.050 or 2.12% Silver Gold Ratio Today : 0.01976 Change : -0.000419 or -2.07% Platinum Price Close Today : 1660.00 Change : -36.30 or -2.14% Palladium Price Close Today : 707.00 Change : -9.20 or -1.28% S&P 500 : 1,364.33 Change : -5.30 or -0.39% Dow In GOLD$ : $157.35 Change : $ 0.37 or 0.24% Dow in GOLD oz : 7.612 Change : 0.018 or 0.24% Dow in SILVER oz : 385.21 Change : 8.84 or 2.35% Dow Industrial : 12,962.81 Change : -14.78 or -0.11% US Dollar Index : 79.36 Change : -0.031 or -0.04% It wasn't a great day for the silver or GOLD PRICE. Gold dropped down to $1,694.93 to feel around with its toes for a bottom, then closed Comex at $1,703.00, down 5.80 but more damaging to morale, below critical $1,705 support. Gold tried to move higher today but was stopped cold at $1,713. What bothers me is that the GOLD PRICE closed below its 150 day moving average ($1,715.09) which pushes momentum downward. Gold might catch at the 50 DMA, $1,687.30, or might drop to the 200 DMA at $1,673, but in any event it looks like this week will be painful. The SILVER PRICE dropped 2.4% (83c) to 3365.1c. That lands silver below the crucial 300 DMA (3485), way below it. Face it, that augurs lower prices, and offers 3250c to 3200c as a low. Watch. Let's see what unfolds. I'm not expecting a gigantic drop, but this week silver and gold will probably struggle. A gold close above $1,725 would gainsay that. Today was a day of trifling and bewilderment. Stocks sank to the scalp, dollar burped back some of Friday's gains, silver and gold suffered losses not apparently large, but significant still. Here's a closer look. Dow dropped 14.78, down 0.11% to 12,962.81. looking at the lines, they have dropped out or are about to drop out of the deadly rising wedge forming since last October. Dow cut through, but did not stay below, its 20 day moving average (12,920.88), barely saving face for its momentum. S&P500 did no better, down 5.3 (0.39%) to 1,364.33. These rising wedges do not end well for bear markets, falling out downside -- and sharply -- almost every time. Should the Dow break 12,880 (today's low), wave bye-bye. Quickly. US dollar index dropped 3.1 basis points today, nothing, to end at 79.359, still crowing above that 79 level. Euro gained 0.14% today to close $1.3217, but the one year chart has peaked and should drop like the back side of the Matterhorn. Yen tried again today to bottom, closing at 122.62c/Y100 (Y81.56/US$1). Yen remains severely oversold, but gives only feeble signs of turning up. 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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| Gold's Violent Downside Reversal Posted: 05 Mar 2012 09:50 AM PST Gold reversed violently to the downside last week, an event which has serious implications. It had been doing well up to that point and we did not see this reversal coming, so this is going to be "wise after the event" update - still it is considered to be better to be wise after the event than not wise at all, particularly if our interpretation of the meaning of this development proves to be correct.
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| Posted: 05 Mar 2012 09:46 AM PST Silver has had a good run from its lows at the end of last year and was on course to break out of the major downtrend in force from its highs of April last year, but it was not to be, for last week it reversed sharply to the downside, leaving behind a bearish engulfing pattern on its chart, as we can see on its 15-month chart below. While it has not yet broken down from the intermediate uptrend in force from late last year, action last week suggests that it is destined to shortly.
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| Silver clinging to Support at $34 Posted: 05 Mar 2012 09:43 AM PST [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Risk off trades were in vogue today after news came out that China reported that expected growth in their economy would be slowing a bit. That was all that was needed to bring out the sellers in both the equity and commodity markets. Silver fell below pyschological round number support at $34 but then recovered, only barely, by the end of the trading day. It is clinging to support above this level as I write this. There is a band of stronger support as one drops down towards $33 which will be tested unless the market can keep its footing above $34. It is still trying to repair the technical damage inflicted from last Wednesday's bear raid which forced an outside reversal pattern on the daily chart. Thus far this selling that we are seeing seems to be drying up as it does move below $34 but any further negative global economic news will see that selling reappear once again. Gold dropped be...
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| Fleckenstein - Fears of a Banking Collapse, Dow 13,000 & Gold Posted: 05 Mar 2012 09:30 AM PST  Today Bill Fleckenstein, President of Fleckenstein Capital, told King World News the Federal Reserve is totally out of control and thinks nothing of turning the US dollar into confetti. But first, when asked what his biggest concern was going forward, Fleckenstein responded, "The fact that the Europeans have gotten themselves in this mess, where they pretend like they are not going to print money and then they do print money. But they don't ever print enough to get past this point."
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| Gold Investor Fantasies Not an Investment Strategy Posted: 05 Mar 2012 09:27 AM PST While having not read any research into the time devoted by people to fantasizing, we suspect that activity represents a significant portion of the day for many. Morning coffee for men involves the exchange of fantasies surrounding sporting events. We know not what women fantasize about during their coffee, but suspect it might include a discussion of how some man could be made better. While romantic fantasies are beyond our mandate here, we suspect most are more likely to occur than some of the investment fantasies observed in recent years. Fantasies are fine, but they are not investment strategies. Some investment fantasies of recent times have been:
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| Gold Falling Below $1690 Could Spark Fresh Selling Posted: 05 Mar 2012 09:22 AM PST DOLLAR gold prices briefly dipped back below $1700 an ounce Monday morning in London, as stocks, commodities and the Euro all fell before recovering some ground, following news that China has cut its official growth target. Silver prices dropped to $34.06 per ounce – 2.2% down on Friday's close – before making up some of the loss.
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| On Contagion: How The Rest Of The World Will Suffer Posted: 05 Mar 2012 09:20 AM PST Excess debt is causing global banking problems. Euro-Area debt is estimated to be 443% of GDP, third highest in the world, far above the US at 355% and completely unmanageable in a currency union burdened with a one-size-fits-none monetary policy and huge sovereign debt problems. Insolvent European banks sold many CDS, so counterparty risk is huge. A Greek or any other significant default will precipitate a European banking crisis in the foreseeable future. Markets are already speculating on Portuguese negotiations for haircuts and Ireland can't be far behind, as it elected the current government to negotiate haircuts on private holdings of bank debt. The Lehman default occurred 13 months after the US TED spread crossed 100 basis points. The European equivalent crossed 100 basis points in September 2011, so its banking crisis would occur this autumn if a year or so is a normal incubation period. Contagion to US (and global) banking systems is inevitable given counterparty risks, debt loads (and refi needs), and capital requirements (no matter how well hidden by MtM math), no matter how many times we are told net exposure is small or non-current loans are reserved. Lombard Street Research: Contagion to the US US interbank markets have also been showing the strain of problems in the EA, with the 3-month LIBOR-OIS spread tracking the upward trend in the cost of EA interbank lending (see chart 9).
US banks' exposure to the EA through lending to governments and exposures to financial and nonfinancial institutions is significant. According to data from the BIS, US banks' total claims on Club Med banks, plus Germany and France, and the UK banking system, comprise around 80% of US banks' total equity (see chart 10). Bank claims on government and the private sector are reasonably transparent in the UK, but not in the US – so concerns over EA exposure are likely to resurface this year.
In addition to this exposure to the EA crisis, US banks must work through the remaining legacy of the domestically-generated subprime crisis. Falling loan loss provisions (see chart 11) have delivered practically all the sector's net operating revenue growth over the last two years. Pre-provision net operating revenue has been flat.
Noncurrent real estate loans in the US remain elevated, at 6.5% of the total – compared with only 0.7% in the 2005-06 period – and stand to rise again if the US economy deteriorates in 2012. Banks' quarterly rate of provisioning looks inadequate to cope with even current levels of noncurrent loans. Quarterly provisions are currently around one-third of their 2008 average, but noncurrent loans are down by only 20% since their Q1 2010 peak. Provisions were only $18.6 billion in Q3 2011, their lowest since 2007 Q3. Noncurrent loans would have to fall quite sharply to justify this level of provisioning, when in fact the opposite is the more likely outcome. Raising the loan loss allowance to 100% of total noncurrent loans would require an extra $112 billion of provisions, in addition to the amount needed to cope with current write-offs. Real estate net charge-offs are currently around $14 billion per quarter. The banks are ill placed to absorb increased loan loss provisions and the subsequent pressure on overall profitability. 14% of US banks are still reporting negative quarterly net income – down from a peak of 35% in Q4 2009, but double the average of 7.5% in 2005-06. At the sector level, net interest income growth in particular has ground to a halt, falling on an annual basis for the last three quarters – the longest period of contraction on record (see chart 12). Indeed, the last time annual net income growth contracted outright was in Q4 1989, and that was only for one quarter.
Downward pressure on longer term yields from slow growth, low inflation and Fed interventions will continue to erode banks' ability to generate net interest income growth. In addition, the Congressional Budget Office predicts the Treasury's tax take will rise by an average of 1½ percentage points a year from fiscal 2011 to fiscal 2014, so growth will be minimal and defaults will rise. US banks are in a poor position to withstand a European banking crisis. They appear well capitalised with assets 11.9 times net tangible equity. However, they need an estimated $400-$600 billion of capital to absorb the cost of marking their toxic assets to market, which raises their effective leverage to 19 to 28 times – too high to weather the recession and European banking crisis without significant failures. In addition, Professor Robert Reich of the University of California at Berkeley wrote that Wall Street's total exposure to the EA totals about $2.7 trillion, not far short of triple the equity of American banks. Global contagion Global financial assets were only slightly greater than global GDP in 1980 but 3 3/8 times greater in 2010 with the increase in debt outstanding rising from a fraction of GDP to 2½ times accounting for the rise. The collapse of the credit bubble shows Ponzi debt had pervaded the credit structure, so deleveraging and a drop in asset prices to levels that incomes and production could sustain was necessary. Governments immediately engaged in an all-out battle to prevent this necessary correction. As a result, the People's Bank of China balance sheet has expanded by an average rate of 43% a year over the last five years, the Fed's by about one-third, the Bank of England's by over one-fifth and the ECB's by one-sixth. Printing money on his unheard of scale reversed a significant part of the 2008-09 losses in asset markets – but the cost has been the rising insolvency of governments and banks. Insolvency will keep dragging the EA economy down until sovereign and bank balance sheets are repaired. Eliminating the Ponzi debt without fracturing the entire credit system is impossible. The next section will offer some ways of minimizing the damage and preventing recurrences but deleveraging is absolutely essential to restore optimum growth. Total industrial production in the OECD remains below the pre Great Recession peak and widespread falling real incomes show the lower income brackets are in a depression. Other developed nations are in less dire straits than the EA, but slow economic growth and deteriorating sovereign balance sheets are pushing many of them in the same direction. Banking problems are becoming more acute and Europe is the canary. The ECB didn't prevent broad money from beginning to fall – even though it increased its balance sheet by almost half in the last seven months of 2011. The same is likely to happen in other developed nations.
The contagion will likely show up as a risk premium in the credit markets initially as we suggest the recent underperformance of both US and European bank credit relative to stocks is a canary to keep an eye on.
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| Monday’s w/”Ranting” Andy Hoffman–Live from Inside the Central Bankers’ Minds–03-05-2012 Posted: 05 Mar 2012 09:08 AM PST "Ranting" Andy joins us again this week to reassure you the Leap Day violation on gold and silver was as blatant of an attack as you could possible see in the paper markets. Andy reiterates that short term charts are meaningless, and he explains what we're seeing today is simply follow-through operation. The 200-day moving average of the precious metals, gold and silver, has been very consistent over the past eleven years; these are commodities that have rarely been under their 200-day moving average. Effectively, Da Boyz are not only painting the charts, they are trying to take your money! They are manipulating the charts to make the market look like its behaving in a way that it's really not. The long term chart patterns speak for themselves! Please fill out the subscription box at KerryLutz.com to receive your free Financial Survival Toolkit & weekly gold and silver newsletter.
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| Playing the Gold, Silver Equities Selloff: Stephen Taylor Posted: 05 Mar 2012 08:53 AM PST The Gold Report: The Global and Mail reported that more than 50 private-equity mining deals were struck in Canada in 2011—more than in any other sector. Why is private equity pouring venture capital into junior mining plays faster than any other Canadian business sector? Stephen Taylor: The important thing is that private equity funds have the patience and the experience to take the long-term view that's required with development-stage mining companies. There's been a growing dysfunction in the U.S. initial public offering market for small-cap companies and development-stage enterprises of any type. It has led to depressed valuations. It's not surprising that managers of private equity funds have the patience and see some bargains and are jumping into the sector. TGR: Most of the deals involved minority positions, not takeovers. Why? ST: That is really the best way to do deals as a private equity investor. These firms are looking to partner with or back experienced management teams....
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"Ranting" Andy joins us again this week to reassure you the Leap Day violation on gold and silver was as blatant of an attack as you could possible see in the paper markets. Andy reiterates that short term charts are meaningless, and he explains what we're seeing today is simply follow-through operation. The 200-day moving average of the precious metals, gold and silver, has been very consistent over the past eleven years; these are commodities that have rarely been under their 200-day moving average. Effectively, Da Boyz are not only painting the charts, they are trying to take your money! They are manipulating the charts to make the market look like its behaving in a way that it's really not. The long term chart patterns speak for themselves!
We live in a world that is becoming increasingly unstable, and the potential for an event that could cause "sudden change" to the U.S. economy is greater than ever. There are dozens of potentially massive threats that could easily push the U.S. economy over the edge during the next 12 months. A war in the Middle East, a financial collapse in Europe, a major derivatives crisis or a horrific natural disaster could all change our economic situation very rapidly. Most of the time I write about the 
Today Bill Fleckenstein, President of Fleckenstein Capital, told King World News the Federal Reserve is totally out of control and thinks nothing of turning the US dollar into confetti. But first, when asked what his biggest concern was going forward, Fleckenstein responded, "The fact that the Europeans have gotten themselves in this mess, where they pretend like they are not going to print money and then they do print money. But they don't ever print enough to get past this point."
As many of you know or suspect, I am a subscriber to Ted Butler's newsletter service. Simply put, "Uncle Ted" has forgotten more than I'll likely ever know about the silver market and I find his perspective to be quite valuable. He usually puts out two newsletters per week and, last Monday, after reading his "Weekly Review" of 2/25/12, I asked him for his permission to re-print it here, in its entirety. It's nothing unusual, earth-shattering or out-of-the-ordinary. It is, however, a discussion of many of the issues we commonly mention here and it serves as a fine example of the value of his service.
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