Gold World News Flash |
- Robert Mish: Front-Line Evidence That We Are Nowhere Near a Gold Bubble
- California Refuses to Fix Public-Sector Pensions
- Collapse Coming–Not Recovery
- Jim's Mailbox
- John Hathaway - 9 Key Points for the Gold & Silver Markets
- Gold Seeker Closing Report: Gold and Silver Fall Almost 1% and 2%
- Japan starts buying Chinese debt to diversify away from dollar
- NOTHING The Fed And The Obama Administration Claims, Adds Up To AN Economic Recovery
- Is the Banque de France eager to show it still has its gold?
- Europe?s Scariest Unemployment Chart ? Ever
- Balestra Capital: "If Government Programs Were Cancelled, The Economy Would Collapse Back Into Severe Recession"
- The Gold Price Fell Today You are Watching the Last Leg of the Correction
- Marc Faber : Gold not in a Bubble
- China's SAFE: “We Wont Put All The Eggs In One Basket”
- The Silver Catalyst: An Exclusive Interview with Hugo Salinas Price
- The Silver Circle – A SciFi Thriller – The Forces of Good Declare War On The Fed
- New York Sun: Obama in your tank
- Broken Promises: Pensions All Over America Are Being Savagely Cut Or Are Vanishing Completely
- The Dangers of Ideology
- Additional 107 Billion Euros Worth of Greek Bonds Hidden From View and Tendered to ISDA
- Ty Andros and Kerry Lutz – The Weekly Wrap – 03-9-2012
- Gold and Silver in Dullsville
- Fed to Test 19 Banks’ Capital Against Recession Scenario
- Grandich Client Oromin Explorations
- Gold Upside Favored against Last Week?s Low
- JPM Expects Fed To Acknowledge Inflation Tomorrow As Hawks Continue Dissenting
- Ira Stoll: Bernanke's big hidden tax on savers
- HUI Stocks vs Gold
- Metals to resume their uptrend imminently, Turk tells King World News
| Robert Mish: Front-Line Evidence That We Are Nowhere Near a Gold Bubble Posted: 12 Mar 2012 05:37 PM PDT Chris Martenson
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| California Refuses to Fix Public-Sector Pensions Posted: 12 Mar 2012 05:28 PM PDT  Serious people know that California faces a serious financial problem because over-sized compensation packages for the state's public employees are consuming every public dollar in sight and imposing a long-term debt on future taxpayers. Unfortunately, one won't find many serious legislators in the state Capitol, especially in the majority party these days.Faced with depressing fiscal numbers, the Sacramento brain trusts have decided that the best way to deal with unfunded pension liabilities is not to reduce the benefits that are causing the problem. Their idea is to create yet another program that would boost pensions for private-sector workers after first deducting 3 percent of workers' paychecks to fund it. In the view of the Democratic leaders who propose this goofy idea, government pensions are fine. The real problem is the stingy private sector. And they have a new government program to fix it. State Senators Kevin de Leon and Darrell Steinberg and Assembly member Warren Furutani last month introduced SB 1234. "The bill would require a specified percentage of the annual salary of an eligible employee participating in the retirement or pension plan to be deposited in the Golden State Retirement Savings Trust … ." Read more...... 
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| Collapse Coming–Not Recovery Posted: 12 Mar 2012 04:55 PM PDT By Greg Hunter's USAWatchdog.com (Revised) Dear CIGAs, The way the latest unemployment numbers were reported by the mainstream media (MSM), you would think the Great Recession was over and the United States was solidly on the road to recovery. The Associated Press reported the numbers by the Bureau of Labor Statistics (BLS) with a Continue reading Collapse Coming–Not Recovery
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| Posted: 12 Mar 2012 04:53 PM PDT Consequences Of Infinite Liquidity CIGA Eric The charts below illustrate several points about the evolving sovereign debt crisis. External debt levels and equilibrium price of gold (external debt divided by ounces held United States) continue soar in an increasing comical and disturbing fashion. China is slowly reducing their exposure to U.S. Treasuries. Chart 3 Continue reading Jim's Mailbox
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| John Hathaway - 9 Key Points for the Gold & Silver Markets Posted: 12 Mar 2012 04:18 PM PDT  With continued volatility in the gold and silver markets, today King World News reached out to 40 year veteran John Hathaway. Hathaway is the prolific manager of the Tocqueville Gold Fund and he has achieved a 5-star rating from Morningstar. Hathaway sent KWN, exclusively, an outline of 9 key points in the gold and silver markets. Here is a portion of one of the 9 key points (all 9 points below): "The fact that gold has survived the negative news flow from the monetary and economic front is encouraging. If gold can withstand the apparently changing narrative that had underpinned a bullish stance on gold, it will be a sign of enormous strength."
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| Gold Seeker Closing Report: Gold and Silver Fall Almost 1% and 2% Posted: 12 Mar 2012 04:00 PM PDT Gold fell over 1% to as low as $1692.132 by a little after 10:30AM EST before it rebounded midday, but it still ended with a loss of 0.72%. Silver slipped to as low as $33.34 and ended with a loss of 1.76%.
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| Japan starts buying Chinese debt to diversify away from dollar Posted: 12 Mar 2012 03:04 PM PDT By Stanley White http://www.reuters.com/article/2012/03/13/us-japan-economy-azumi-idUSBRE... TOKYO -- Japan said on Tuesday it had received approval from China's government to purchase 65 billion yuan ($10.3 billion) in Chinese government debt in a move that can help Japan diversify its reserves away from the dollar and strengthen economic ties between the two Asian countries. The timing of purchases hasn't been set yet as Japan still needs to make some administrative preparations, but Japan is likely to start with a small amount and then increase purchases, Japan's Finance Minister Jun Azumi said. Japan will also consider the impact on financial markets when it decides the timing of its purchases, Azumi said. ... Dispatch continues below ... 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/ China said on Monday it would continue its purchases of Japanese government debt but would reduce purchases when the yen is rising as China and Japan, holders of the largest and second-largest currency reserves, look to limit exposure to the dollar. "We feel this is an appropriate amount when considering our mutual goal of strengthening economic cooperation between Japan and China," Azumi told reporters. Japan and China agreed at a summit in December to facilitate trade between the yen and the yuan as part of a broader push to strengthen economic cooperation. 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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| NOTHING The Fed And The Obama Administration Claims, Adds Up To AN Economic Recovery Posted: 12 Mar 2012 02:35 PM PDT IF...as our "fearless leader that couldn't lead a horse to water" President, AND our "I've never told the truth about a damn thing" Federal Reserve Chairman would have you "believe", the US Economy is growing and in "recovery", then: Why has the Fed injected $16 TRILLION into the banking system since 2008? Why Is Gasoline Consumption Tanking? Gasoline deliveries reflect recession and growth. The recent drop in retail gasoline deliveries is signalling a sharp contraction ahead. Why are tax revenues continuing to fall? ...through last Friday, and net of tax refunds, total US tax revenues were actually lower in the fiscal 2012 year to date period than compared to 2011, by just under $2 billion, at $625.5 billion. Which is the weakest link for any argument that the US is actually growing: what is growing is America's debt (now almost exponentially), while its revenues are at best unchanged. -ZeroHedge Why are the Non-Farm Payrolls numbers NOT supported by reported income tax collections? ...the BLS refuses to use the data embedded in income tax collections to be able to report real time jobs and wages. Why does it refuse? Could the reason it refuses to use real time data on jobs and incomes be because perhaps this jobs number is politically motivated? The entire world is looking at U.S. job creation as a proxy on how well Obama is doing? Could the Obama Administration be pressuring its economist employees to create the best possible new jobs number? How can the stock markets keep rising when individuals have been net sellers for the past several years? "Individuals are net sellers of US equities and have been for years, probably because they need to pay bills and stuff. So how are they able to do that and get decent prices without the stock market cracking. Well simple the Federal Reserve has been printing huge amounts of money and that ultimately has been boosting the value of US equities, and therefore the sellers can sell." -TrimTabs Charles Biderman THERE IS NO RECOVERY, AND THERE IS NO GROWTH. An illusion of both has been, and is being, painted by those with a sound bite voice. The President is a liar, the Fed Chairman is a liar, and Americans are fools to believe their lies. There is only one thing, and one thing only that is growing rapidly in America, and that one thing is DEBT.  Is it "just a coincidence" that the price of Gold was smashed in the Spring of 2008 prior the Fed and ECB money printing in the Fall of 2008? The Fall of 2009? The Fall of 2010? The September 2011 hit on the Precious Metals as the ECB went hog wild printing money? This is NO COINCIDENCE people! This is a blatant effort by those that too many trust to deceive us into believing "nothing is wrong, the government will fix everything". BULLSHIT!!! Deceive though they may, and rig as they might, the Fed, the ECB and western governments are POWERLESS to "stop" the rise in Gold and Silver prices... THE CHART SPEAKS FOR ITSELF Despite every effort, the price of Gold has continued to rise as the Fed and ECB print money to delude the world into believing that an economic recovery is occuring "right before our eyes"! Is it a safe bet that the price of Gold will triple at a minimum over the next two years? Look at the chart above again. Following the take down in Gold in the Spring of 2008 and the subsequent ramp in assets of the Fed and ECB [money printing], what did the price of Gold do? That's right, IT TRIPLED! Do not doubt for a day that it will not at least TRIPLE again from current prices by the end of next year. America is NOT in a recovery. America is in a DEPRESSION masked by US Federal Reserve money printing, and the lies of the Obama Administration. Five Charts That Prove We're in a Depression and That the Federal Reserve and Washington Are Wasting Money By Graham Summers Wall Street and mainstream economists are abuzz with chatter that we're seeing a recovery in the US due to the latest jobs data. These folks are not only missing the big picture, but they're not even reading the fine print (more on this in a moment). The reality is that what's happening in the US today is not a cyclical recession, but a one in 100 year, secular economic shift. See for yourself. Here's duration of unemployment. Official recessions are marked with gray columns. While the chart only goes back to 1967 I want to note that we are in fact at an all-time high with your average unemployed person needing more than 40 weeks to find work (or simply falling off the statistics).  Here's the labor participation rate with recessions again market by gray columns:  Another way to look at this chart is to say that since the Tech Crash, a smaller and smaller percentage of the US population has been working. Today, the same percentage of the US population are working as in 1980. Here's industrial production. I want to point out that during EVERY recovery since 1919 industrial production has quickly topped its former peak. Not this time. We've spent literally trillions of US Dollars on Stimulus and bailouts and production is well below the pre-Crisis highs.  Here's a close up of the last 10 years.  Again, what's happening in the US is NOT a garden-variety cyclical recession. It is STRUCTURAL SECULAR DEPRESSION. As for the jobs data… while the headlines claim we're adding 200K+ jobs per month the sad fact is that without adjustments we've lost jobs 1.8 million jobs so far in 2012. Not only is this data point actually in the JOBS REPORTS THEMSELVES… but it's supported by the fact that taxes (which are closely tied to actual incomes/ jobs) are in fact below 2005 levels.  Folks, this is a DE-pression. And those who claim we've turned a corner are going by "adjusted" AKA "massaged" data. The actual data (which is provided by the Federal Reserve and Federal Government by the way) does not support these claims at all. In fact, if anything they prove we've wasted money by not permitted the proper debt restructuring/ cleaning of house needed in the financial system. It all boils down to the same simple sentence repeated by myself and others: you cannot solve a debt problem by issuing more debt (even if it's at better rates). Indeed, take a look at Greece today. The ECB and IMF have spent two years trying to post-pone a real default. Having wasted over €200 billion, they've now let Greece stage a pseudo-default (at least in their minds)… which, by the way, has only actually increased Greece's debt load and crippled its economy. Just like in the US. And while the topic of a US default is not openly discussed today, it's evident that what's happening in Greece will eventually come our way, after first making stop at the other PIIGS countries as well as Japan. Which is why smart investors are already preparing for a global debt implosion. And they're doing it by carefully constructing portfolios that will profit from it (while also profiting from Central Bank largesse in the near-term). Time to Accumulate Gold and Silver Jeff Clark, Senior Precious Metals Analyst, Casey Research Regardless of what you think will happen over the remainder of this decade, one thing seems virtually certain: the value of paper money will be affected, perhaps dramatically. Even if the economy slips into deflation, the deflation wouldn't last long. A panicked Fed would print to the max and set off a wild rise in prices. This is why we're convinced currency dilution will not only continue but accelerate. Let's take a look at what's happened so far with the value of our currency vs. gold, after accounting for the loss in purchasing power. _____________________________ Got Gold You Can Hold? Got Silver You Can Squeeze? It's Not Too Late To Accumulate! 
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| Is the Banque de France eager to show it still has its gold? Posted: 12 Mar 2012 01:29 PM PDT 9:24p ET Monday, March 12, 2012 Dear Friend of GATA and Gold: After the Netherlands, Switzerland, and Germany, maybe gold suspicion now has struck France, for the Banque de France has just granted a newspaper reporter, Le Figaro's Katia Clarens, a tour of its vast gold vault beneath the streets of Paris, where she discovered many bars of shiny yellow metal, some, perhaps, repatriated from the vault of the Federal Reserve Bank of New York almost a half century ago. (As all true Americans -- revolutionaries and anti-imperialists -- might say, just as was shouted in defiance by the denizens of Rick's Cafe Americain in December 1941: "Vive la France! Vive la democratie!") Thanks to our friend J.S. and Google Translator for the attempt to put the Le Figaro story into English below. Clumsy as it is, it still may convey the point. But do check out the original story with its photos at the link under the byline. CHRIS POWELL, Secretary/Treasurer * * * At the Bank of France, 100 Million Euros in the Basement By Katia Clarens http://www.lefigaro.fr/actualite-france/2012/03/08/01016-20120308ARTFIG0... It's called "the Underground." In this highly secret place -- one hectare underground in the heart of Paris -- is our national treasure. Here are pictures, never seen before. This is one of the most secure places of the Republic. Located in the eighth basement of the Bank of France, in the first arrondissement of Paris, "the Underground," a spectacular bunker room of 11,000 square meters, contains 658 columns between the gold reserves of France: 2,435 tons of precious metal in coins and bars. At current prices, the loot amounts to more than 110 billion euros. After the United States and Germany, France, neck and neck with Italy, is third-largest holder of gold in the world. The robbers changed their minds; the temple of Saturn is inviolable. The entrance is at 20 Rue du Colonel Driant. One must first obtain an access badge. The visitors and their belongings, flanked by security agents, are then scanned. On the roof of the building, the old guard tower draws a path of metal railings. Below is the kingdom's billions. At the fourth basement elevator, an empty room offers a cloakroom for visitors. Then a reinforced door opens to 7 tons on rails, after which there is a cinderblock of 17 tons. At closing hour, it will reside on a rotating turret of 35 tons, forming an unbreakable lock. Access to the Underground is by a second elevator to the eighth basement. Again a door, again a cement block on rails. It happens in a world of aesthetic prison. An ocher-tiled floor, a long corridor leading to a pale grid. At this last one, you can see the columns and finally the checkered floor. ... Dispatch continues below ... 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. Over time, to improve security, the room has been walled up. In the partitions between the columns, even doors bar access. They are opened with different keys. One of them is in the hands of the controller, the other ones with the cashier. They are accompanied by an official body. Behind the doors, there are greenhouses. They are home vaults in which rests, motionless, the gold of France. Not a display of bullion, as one would have hoped. No, almost invisible, the treasure is packed in pallets, boxes, or metal cabinets. He waits, secure in the extreme, in one of the most gigantic buildings ever built in France. The decision to build a new vault was taken around 1920. It followed the bombing of Paris in 1870, then the bombinbs of World War I. Is the fear now that of an enemy occupation or a popular uprising? The bunker must be unobstructed. Work began in 1924. From May 1924 to November 1927, 1,200 workers worked day and night on site. At 20 meters deep, they will remove 150,000 cubic meters of fill and will use 10,000 tons of steel, 20,000 tons of cement, and 50,000 tons of sand. Tthis building will be award-winning 10 years later at the International Exhibition of Paris. In addition to the greenhouses of gold, chests, and vaults, part of the Underground is equipped with kitchens, sinks, and refrigerators. In case of conflict, 3,000 people can take refuge there. A spectacular place. Allowed to visit, Stefan Zweig wrote in 1932: "Heaven and hell had the seven circles of Dante. The vaults of the Bank of France have perhaps even more," speaking as "a treasure that neither Caesar or Crassus or Cortes or Napoleon or all the emperors and the great families of this planet, nor any mortal since the beginning of time have never seen together." But what is such a gold reserve? "Gold is a safe haven," says Denis Beau, chief operating officer. "A store of value, it contributes to ensuring monetary credibility. It is especially an asset diversification that can reduce exposure to the currency risk of the dollar. An important part of French reserves is in dollars. It was found that the dollar's value is generally inversely proportional to that of gold." If the first gold coins were minted in 550 BC, the precious metal knew its heyday in the 19th century with the triumph of the gold standard adopted by England, Portugal, Germany, Austria-Hungary, Russia, Japan, and France and its partners in the Latin Union. Therefore, the monetary unit is defined with reference to a fixed weight of gold, net settlements between countries are made via gold reserves, and central banks must cope with the demands of conversion into gold of banknotes in circulation. The system continues but after many incidents (world war, the 1929 crisis, and devaluations) France abandoned gold convertibility in 1937. In July 1944, with the signing of the Bretton Woods agreement that began an international monetary system, the dollar became the only currency convertible into gold. But in January 1976, the system collapsed; it is over the monetary role of gold. Over the following decades, the metallic treasures lie dormant in the basement. Recently, however, gold has found a new modernity. With the financial crisis, its price has tripled in five years. "Three factors explain this phenomenon," says Denis Beau. "The increase in demand for jewelery came from emerging countries, as well as industrial demand" -- gold has unique chemical properties: fastness, excellent electrical conductivity, for example -- "and finally a strong aversion to credit risk. There is also, and what is new in recent years, a phenomenon of financialization of gold due to the interest of portfolio managers in raw materials, and especially gold." Volatility sometimes means a new price. Eager to boost the portfolio currency of France, Nicolas Sarkozy, then minister of economy, in 2004 agreed with the governor of the Bank of France for a sale of more than 580 tons of gold. The minister, however, indicates that "the pace of implementation of the sales program" will depend on the judgment of the governor of the bank. Executed between 2004 and 2009, the program is criticized by the Court of Auditors. Reason: In 2007, the financial crisis caused the surge in gold prices, which, according to the wise, should have curbed the sales program, yet completed it in 2009. The Bank of France, however, has defended the operation, as the dollar was bought low during that summer, according to the institution, and profitably placed. Gold is more popular than ever with its "yellow flashes that ignite and excite a curious way the human eye." However, about the gold of the Bank of France we had only very limited information. Until 2003, when one day the cashier discovered a chest full of Underground documents. It is there that all the tribulations of the stacked gold of the Bank of France during World War II were recorded. They reveal the fantastic adventure of the French treasury. The founder of the historic mission of the Bank of France, its honorary director general, and author of "The Secrets of Highly Documented gold," Didier Bruneel seizes it. "After so many years at the Bank of France, to discover so many new things, it was great!" With regard to these documents, the gold comes alive. It is about incredible travel, transfers, and removals from the early 1930s until the end of World War II. But the adventures of gold began long before. An anecdote among many: We are in 1871, at the Paris Commune. There are fears about a decision on the Bank by the Communards. The gold is then in the cellars of the Hotel de Toulouse, then headquarters of the bank. The vault is 32 meters long, 8 meters wide, and 4 meters high. It is accessible only by a narrow spiral staircase, where two people cannot cross together and whose top is closed by a heavy iron plate. The evacuation of gold is no longer possible and time is short. At the bank we seek a solution to protect the treasure. The chief finally decided to silt up the stairs to the vault right to its summit. The city never took the gold from the Bank of France. 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 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/
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| Europe?s Scariest Unemployment Chart ? Ever Posted: 12 Mar 2012 01:26 PM PDT The last time we plotted European youth unemployment…Spain was actually worse off than even Greece…Following the latest economic…update from Greece, however, things are back to normal, as Greek youth unemployment is officially the second one in Europe after Spain to surpass 50%. In other words, Europe’s scariest chart just got even scarier [as seen below]. Words: 370 So reports Tyler Durden ([url]www.zerohedge.com[/url]) in edited excerpts from his original article* which Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited further 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.) Durden*goes on to say, in part: [It would appear that,] while the Greek economy is in tatters…that’s only the beginning. It now appears that a terminal collapse of not just [occurring in] the Greek financial secto...
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| Posted: 12 Mar 2012 12:52 PM PDT While hardly an opinion that would be questioned around these parts, it is still good to see that even some of the smart money shares our views about the Schrodinger Economy ('alive' and 'dead' at the same time, depending if the BLS or anyone else is observing it) and we are not totally insane vis-a-vis one-time, non recurring government bailouts, which just incidentally have become perpetual and endless: "The Federal government has manfully stepped up to fill the gap left by consumers who have been forced to retrench and who are trying to repair their finances by paying down debt and increasing their savings. So the next question has to be: Is this recovery self-sustaining or is the economy still on life support, held together by periodic massive liquidity injections and ultra low interest rates, and accompanied by a dangerous, if not reckless, expansion of government debt? We think that if government programs were canceled, the economy would collapse back into severe recession." And here Balestra's Chris Gorgone explains quite astutely why anyone betting on a decoupling or perpetual USD reserve status may want to reconsider: "the U.S. is no longer in complete control of its own destiny. We exist now in a world of increasing correlation in the arenas of economics, finance, trade, politics, etc. What happens in Europe, China, the Middle East, etc. will have major impacts on American economic, political, and social outcomes. The world is changing rapidly. The old rules that so many investors rely upon may no longer apply the way they did during the great growth years after World War II." Alas, this too is spot on. More:
As for where Balesta is invested:
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| The Gold Price Fell Today You are Watching the Last Leg of the Correction Posted: 12 Mar 2012 12:44 PM PDT Gold Price Close Today : 1699.20 Change : (11.70) or -0.68% Silver Price Close Today : 3337.4 Change : 80.0) cents or -2.34% Gold Silver Ratio Today : 50.914 Change : 0.851 or 1.70% Silver Gold Ratio Today : 0.01964 Change : -0.000334 or -1.67% Platinum Price Close Today : 1702.00 Change : 12.75 or 0.75% Palladium Price Close Today : 709.00 Change : -2.25 or -0.32% S&P 500 : 1,371.14 Change : 0.27 or 0.02% Dow In GOLD$ : $157.66 Change : $ 1.55 or 0.99% Dow in GOLD oz : 7.627 Change : 0.075 or 0.99% Dow in SILVER oz : 388.32 Change : 10.21 or 2.70% Dow Industrial : 12,959.86 Change : 37.84 or 0.29% US Dollar Index : 79.88 Change : -0.098 or -0.12% About as I expected, silver and GOLD PRICE fell today. Gold doesn't have enough steam yet to breach the $1,715 barrier. It will, it will, but first another dip of the toe below $1,700. Today the GOLD PRICE dropped $11.70 and ended the day on Comex at $1,699.20. Gold was ailing the whole day, and never reached higher than $1,708.20. Still, it might well catch hold here at the 50 day moving average ($1,694.16) where also some lateral support hides at $1,696. If that gives way, then gold could shoot for $1,674.76, the 200 DMA, or it might peek below $1,650, just to scare all the gold bugs to death. Matters little, as you are now watching the last leg of the correction from the $1,787 rally. The SILVER PRICE lost 80.1c today to close at 3337.4c, near the 3333.3c low. I'd prefer silver drop not below today's low, since that would preserve the 5-day uptrend. Silver's next fight comes at 3300c, if it doesn't hold this line. But I don't much care if it falls to 2900c (now rather unlikely) because I've been looking at a technical measure that implies silver has very little downside left before another wild rally begins, if it hasn't already. This will probably turn out to be a toilsome week for silver and gold, but this humiliation has not long to run. By March's end 'twill be past. Hence y'all had best keep your eyes peeled for a spot to buy. Once this has ended, you will only be able to spot silver and gold rapidly disappearing toward the stratosphere. In the biggest bond writedown in history, the Greek government swapped most of the bonds coming due mid-month for others worth less than half their value. Wow. World is getting better and better, making new records all the time. Ain't that fiat money and fractional reserve banking great! Hey! What about them bankers, huh?! I mean, re-po'ing an entire COUNTRY! That takes some gall, as my grandmama might say. Y'all proud of your banks yet? Your politicians? 'Twas a rough day for silver and gold, but pay it no mind. Higher prices are coming shortly for metals, and lower prices for stocks. Something will break soon. For too long stocks and metals have been closely tracking each other. Either I am dead wrong and stocks will not lose another 80% of their value against metals and silver and gold do not have most of their bull market gains in front of them, OR stocks will breakdown soon against silver and gold. (Naturally I do NOT think I am wrong about that.) I've been looking at my superbly reliable indicator, the Dow in Gold Dollars that measures the value of stocks in gold. Soon, soon, it should break down, probably as a consequence of stocks falling AND gold advancing both. But y'all recall that I am no more than a natural born fool from Tennessee, and I ain't as smart as them fellows who want to sell y'all stocks. US dollar index gave away 9.8 basis points today, a measly 0.13%, but that carried it below 80 again, a blow to morale. As long as it clings above 79.60 the noxious dollar will keep climbing. The nasty euro today rose 0.22% to $1.3153. True, it has caught on its 50 and 62 day moving averages (1.3093 and 1.3083), but in the last 5 days it also left behind an island reversal, a pattern that very seldom fails to wreak its vengeance. Expect to see it lower. All the good news (?) about the Greek Debt Deal has come out, and the future holds -- what? What good news? I sure don't know. The nugatory yen edged up 0.23% today to 121.57c/Y100 (Y82.26/US$1). Maybe Friday's spike down marked the bottom. Hard to fathom who would sell more oversold yen from here. No matter much -- all the fiat currency exchange rates amount to no more than an elaborate kabuki anyway. Stocks eked out small gains today, but not unanimously. Dow rose, S&P rose barely, while the Nasdaq composite and Russell 2000 fell. Disagreement, non-confirmation, confusion, bewilderment. You couldn't get from here to Tupelo using that roadmap. Dow rose 37.84 (0.29%) to the same old neighborhood, 12,959.86. S&P500 barely moved, but you could catch it with time-lapse photography. Climbed 0.2% (0.27 points) to 1,371.14. 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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| Marc Faber : Gold not in a Bubble Posted: 12 Mar 2012 12:31 PM PDT Marc Faber : Gold is nowhere near a bubble phase... [[ This is a content summary only. Visit my website http://goldbasics.blogspot.com for full Content ]] 
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| China's SAFE: “We Wont Put All The Eggs In One Basket” Posted: 12 Mar 2012 12:23 PM PDT from GoldCore:
Friday's AM fix was USD 1,699.50, EUR 1,285.36 and GBP 1,078.30 per ounce. Gold rose nearly 1% in New York on Friday and closed at $1,713.50/oz. For the week, gold was 0.01% higher. The positive weekly close and the close above the 200 day moving average and the $1,700/oz level bodes well for this week. Gold dropped in Asia and is marginally lower in European trading which has gold now trading at $1,704.30/oz. Gold fell today as the US dollar rallied to its highest price in more than 7 weeks. Investors may be waiting for the US Federal Reserve meeting tomorrow before making further commitments in the market.
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| The Silver Catalyst: An Exclusive Interview with Hugo Salinas Price Posted: 12 Mar 2012 12:20 PM PDT by John Butler, FinancialSense.com:
Introducing Mr. Salinas-Price Prior to his retirement some years ago, Hugo Salinas-Price was a highly successful businessman in Mexico. He took a tiny radio-manufacturing company and turned it into a completely integrated chain of retail stores selling a range of durable consumer goods. Interestingly, one of the ways in which he financed this dramatic expansion was by introducing vendor financing, something which had already become common in the US and a handful of other countries but was entirely new in Mexico. As such, he had much first-hand experience not only with inventory management but also with consumer credit and the associated financial risks. Read More @ FinancialSense.com
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| The Silver Circle – A SciFi Thriller – The Forces of Good Declare War On The Fed Posted: 12 Mar 2012 12:19 PM PDT from The Financial Survival Network:
The production values of this movie are quite impressive as are the dedicated group who've made its release their life's work. They've been traveling around the country, seeking support for their cause and finally are nearing completion. Their goal is to educate and inform that younger members of society, who feel disconnected and cheated, but are uncertain of where their disdain comes from. As Megan Duffeld said, they are very sympathetic to the Occupy group, however, they want them to understand how the economy got to where it is now. We'll keep you posted and let you know when the film gets released. Click Here to Listen to the Podcast
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| New York Sun: Obama in your tank Posted: 12 Mar 2012 12:16 PM PDT 8:15p ET Monday, March 12, 2012 Dear Friend of GATA and Gold (and Silver): A New York Sun editorial tonight echoes the point often made by GoldMoney's James Turk -- that gasoline isn't going up in price, but rather the dollar is going down in value, and that the relevant policy isn't energy policy but monetary policy. The Sun's editorial is headlined "Obama in Your Tank" and it's posted here: http://www.nysun.com/editorials/obama-in-your-tank/87740/ CHRIS POWELL, Secretary/Treasurer 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 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. 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.
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| Broken Promises: Pensions All Over America Are Being Savagely Cut Or Are Vanishing Completely Posted: 12 Mar 2012 12:11 PM PDT from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| Posted: 12 Mar 2012 12:08 PM PDT by Jeff Nielson, Bullion Bulls Canada:
Labels and dogma sabotage communication, and thus they sabotage understanding. However these mental short-cuts undermine our intellects and analysis in very different manners. Any/every label is a simplistic representation of what it portrays, with the exception of totally generic labels/nouns. As a general example, if someone saw me walking through a crowd of people they might label me "that tall man", or "that bald man". Either label doesn't come remotely close to identifying what I'm all about as a person. However, if someone were to label me a capitalist or a communist, they have engaged in a very different type of simplification. They have attached a discrete set of intellectual properties/qualities to me. Some of these properties may be accurate, all of them could be accurate, or none of them could be applicable. Because these traits are not tangible, it is impossible to discern if that label is partially correct, entirely correct, or totally inapplicable. Thus as soon as we begin to introduce such labels into any discussion we immediately "muddy the waters" intellectually, and undermine any message or analysis we are attempting to convey. Read More @ BullionBullsCanada.com
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| Additional 107 Billion Euros Worth of Greek Bonds Hidden From View and Tendered to ISDA Posted: 12 Mar 2012 12:04 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: The USA government does not like to see gold rise for consecutive days especially if we had an outside day reversal like the one we experienced on Friday. Thus the bankers raided today. Gold fell by $ 11.70 to $1699.20 whereas silver fell by 81 cents to $33.34 The big news of the day actually arrived yesterday where Mark Grant noticed that a huge 107 billion euros worth of Greek bonds were tendered for ISDA certification of a credit default swap. It seems that the authorities missed these bonds which were State Owned Enterprises that had the Republic of Greece guarantees. We will go over this in great detail in the body of my commentary but first let us head over to the comex and assess the damage today. Read More @ HarveyOrgan.Blogspot.com
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| Ty Andros and Kerry Lutz – The Weekly Wrap – 03-9-2012 Posted: 12 Mar 2012 12:01 PM PDT from The Financial Survival Network:
We are fortunate to be able to review the most important and urgent events every Friday with him. Today, we covered Japan's upcoming debt implosion, Greece's never-ending debt default tragi-comedy, the Euro and ECB's juggling act, the dollar's effect on it all and much more. Click Here to Listen to the Podcast
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| Posted: 12 Mar 2012 11:56 AM PDT from TFMetalsReport.com:
Really, it seemed that the only things moving today were crude, gold and silver. I guess I can kind of see a scenario where one might sell both crude and gold but silver, too?? It just wreaks of the continued, repressive and nasty manipulation scheme we are all sick of. If gold and silver were simply left to trade freely, today might have held the same boring, flat trading that we saw in stocks. Instead, when crude sold off, The Cartels attacked and tried to shove both metals down and away from the resistance levels against which they were beginning to press up. Fortunately for us, both metals eventually found some significant buying support and now those levels should serve to contain further Cartel advances later tonight. Read More @ TFMetalsReport.com
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| Fed to Test 19 Banks’ Capital Against Recession Scenario Posted: 12 Mar 2012 11:42 AM PDT The Federal Reserve will show how the capital of 19 U.S. banks might fare through a deep recession and a second housing crisis when they unveil stress-test results in three days. The tests will show results for revenues, capital ratios and profits or losses at each firm over a nine-quarter period, the Fed said in a paper released today in Washington. The results will be released at 4:30 p.m. on March 15. Templates included in the Fed release today showed an array of categories it plans to disclose, from trading and counterparty losses to credit cards and first-lien mortgages. "Strong capital levels are critical to ensuring that banking organizations have the ability to lend and to continue to meet their financial obligations, even in times of economic difficulty," the Fed said in a statement. "The supervisory stress scenario is not the Federal Reserve's forecast for the economy, but was designed to represent an outcome that, while unlikely, may occur if the U.S economy were to experience a deep recession at the same time that economic activity in other major economies contracted significantly." The KBW Bank Index of 24 U.S. lenders has advanced 15 percent this year as investors bet a strengthening economy will help firms boost earnings. Concern that the nation's banks may be damaged by Europe's debt crisis helped drive down the index 25 percent in 2011, its worst annual performance since the 2008 credit crisis. Lehman Brothers CollapseStress tests date back to 2009, when supervisors tried to determine the extent of losses facing the nation's largest lenders following the collapse of Lehman Brothers Holdings Inc. (LEH) and the subsequent financial crisis. Gross domestic product contracted at an 8.9 annual rate in the fourth quarter of 2008. For the current test, the Fed provided the banks with 25 variables, including estimates on gross domestic product, Treasury bill rates and indexes of consumer prices and home prices. The more severe scenario assumes an 8 percent drop in U.S. gross domestic product, an unemployment rate as high as 13 percent and a 21 percent drop in home prices. Six banking-holding companies with large trading, private equity and derivatives activities were also subjected to tests of these positions from a "global market shock," the Fed said. The six banks are Citigroup Inc. (C), Bank of America Corp. (BAC), Wells Fargo & Co., Morgan Stanley, Goldman Sachs Group Inc. (GS), and JPMorgan Chase & Co. (JPM) The Fed said it estimated revenue and losses under the stress scenario based on detailed data provided by the firms and verified by supervisors. The Fed said the tests draw on the expertise "of hundreds of staff," including supervisors, economists, and market analysts. Source: Bloomberg
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| Grandich Client Oromin Explorations Posted: 12 Mar 2012 11:41 AM PDT The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! March 12, 2012 03:23 PM As suggested in recent comments of mine, the fact that the company had not said anything different from its December 7th release, it was safe to assume takeover/merger talks were still ongoing. The company confirmed that after the close today. On the belief gold should hold its own over the next few weeks/months and nothing unforeseen takes place at and/or around OLE, there seems to be limited downside risk from here and significant upside potential from current levels. [url]http://www.grandich.com/[/url] grandich.com...
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| Gold Upside Favored against Last Week?s Low Posted: 12 Mar 2012 11:30 AM PDT courtesy of DailyFX.com March 12, 2012 12:40 PM Daily Bars Prepared by Jamie Saettele, CMT “Gold’s decline from 1790.55 is in 3 waves, which is corrective. Pattern from last week’s low may compose waves 1 and 2 of an impulsive advance. This bullish interpretation is favored as long as price is above 1663.29. Interim resistance is 1726.05. Bottom Line (next 5 days) – higher...
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| JPM Expects Fed To Acknowledge Inflation Tomorrow As Hawks Continue Dissenting Posted: 12 Mar 2012 10:23 AM PDT While largely uneventful to most, the tomorrow's FOMC statement redline to the January one will be promptly scoured by algos everywhere for even the tiniest mention of the word inflation, as that will not only push back any hopes for a quick QE episode, but may temper expectations that ZIRP will last through 2014 (as the shaky 3 Year auction earlier indicated). And if JPMorgan's Michael Feroli is right, inflation is precisely what will be Bernanke's oh so observant mind tomorrow. In which case at 2:15pm watch out: the Chairsatan may just pull the punchbowl away as the Hawkish dissent mounts... if only until the market has a downtick of course, which will threaten to destroy the ever flimsier hollow house of ponzi cards, or something, and the chief fireman comes scrambling back with the firehose spraying trillion dollar bills. From JPM:
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| Ira Stoll: Bernanke's big hidden tax on savers Posted: 12 Mar 2012 10:00 AM PDT 6p ET Monday, March 12, 2012 Dear Friend of GATA and Gold: The New York Sun's Ira Stoll today remarks on the enormous tax imposed on savers by the Federal Reserve's zero interest rate policy (ZIRP) and concludes: "The person who sets the ZIRP, the chairman of the Federal Reserve, Ben Bernanke, is appointed by the president and testifies regularly before Congress. But that's an awfully indirect method of democratic accountability. In the rest of the government, those with the power to shift hundreds of billions of dollars out of the pockets of savers and into the pockets of others through government decisions at least have to stand for election themselves every once in a while." Stoll's commentary is headlined "Bernanke's Zero Interest Rate Policy Turns Out To Have a Big Hidden Cost To U.S. Savers" and it's posted at the Sun's Internet site here: http://www.nysun.com/national/bernankes-zero-interest-rate-policy-turns-... CHRIS POWELL, Secretary/Treasurer 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 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. 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.
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| Posted: 12 Mar 2012 09:46 AM PDT In this article we will have a look at the performance of the HUI index (Amex Gold Bugs) compared to the performance of Gold.
Now here is a chart that plots the HUI index since January 1st 2000:
When we take a look at the medium term (5 years) for the HUI index, we can see that in 2008 it got flushed because of the liquidity crisis. Everything was being sold for cash, even the best quality assets. However, from the low of $150 in 2008, the HUI rallied more than 4-fold over the next 3.5 years, which is very impressive to say the least. In the autumn of 2010, the HUI broke out above the pink dotted line, and as we can see, it retested this level several times. If this line fails to hold, then the Fibonacci Retracement levels come in to play.
The performance of the HUI index seems to be very strong. But is it really that strong? Perhaps not. However, when we look at the following chart, which plots the HUI index divided by the price of Gold, we can see that the HUI index is not acting that strong at all. In fact, since April-May 2011 (remember that Silver set a top back then), the ratio of the HUI:Gold is falling, indicating that Gold outperforms the mining companies (or that the mining stocks underperform the price of Gold).
That's a bit scary, isn't it?
However, this doesn't necessarily mean that we are going to see a similar crash this time around, but a warned investor counts for 2. Now here is an interesting observation: Gold is acting in a similar way as it did in 2006. Check out the chart below, which compares the Gold price since early 2011 until now to the Gold price in 2006 and beyond.
If the pattern holds, one would expect Gold to trade sideways for the remainder of the year, followed by a new sharp increase in price, which could take it up to $2,800 per ounce. The interesting about it, is that the HUI is also acting similarly to 2006, as price has been trading sideways for over a year now:
Last but not least, below you can see a chart of Silver.
In another article (subscribers only) called "A Look At The 16 HUI Stocks", I analyzed the performance of each component of the HUI index relative to the price of Gold and had a look at fundamental valuations (Price/Earnings, Price/Sales and Price/Book ratios). You can read a brief excerpt here: Barrick Gold (ABX): Barrick Gold, the world's largest Gold producer, has underperformed Gold over the last 12 years as the following chart shows:
Barrick Gold is trading at only 7.5 times Forward Earnings, the lowest level since at least 1990 and pays a Dividend Yield of 1.30%:
ABX is trading at 3.22 times Sales, which is not far above the level reached in 2008:
ABX is trading at 1.80 times BookValue, and appears to bounce when trading at 1.4-1.60 times BookValue:
To continue reading, log in or subscribe and click here…
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| Metals to resume their uptrend imminently, Turk tells King World News Posted: 12 Mar 2012 09:39 AM PDT 5:40p ET Monday, March 12, 2012 Dear Friend of GATA and Gold: GoldMoney founder and GATA consultant James Turk is his calm old self today, telling King World News that gold and silver will resume their uptrends imminently as the paper shorts give away again. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/3/12_Tu... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum (TSXV: NKL) and Ursa Major Minerals Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) and Ursa Major Minerals Inc. have signed a binding letter of agreement for a business combination through a proposed all-share transaction. In doing so Prophecy and Ursa have acted at arm's length and the transaction has been negotiated at arm's length. Prophecy will issue one common share in exchange for every 25 outstanding common shares of Ursa. Ursa options and warrants will be exchanged for options and warrants of Prophecy on an agreed schedule. Prophecy's offer represents a value of about $0.15 per each common share of Ursa based on Prophecy's share price of $3.70 as at March 1, representing a premium of 130 percent to Ursa's March 1 closing price of $0.065. Prophecy is to subscribe for $1 million common shares of Ursa by way of private placement financing at $0.06 per share, subject to regulatory approval. Upon placement completion, John Lee and Greg Hall, current Prophecy directors, will be appointed to Ursa's board. Prophecy thus will become a mid-tier resource company with a robust and -- The fully permitted open-pit Shakespeare PGM-Ni-Cu mine close to Sudbury, Ontario, infrastructure with near-term production capabilities. -- The flagship Wellgreen (Yukon) PGM-Ni-Cu project with more than 10 million ounces of Pt-Pd-Au inferred resource. Drilling is under way and a preliminary economic assessment study is pending. -- Manitoba's Lynn Lake Ni-Cu project with more than 262 million pounds Ni and 138 million pounds Cu measured and indicated. For the complete announcement, please visit Prophecy Platinum's Internet site here: http://www.prophecyplat.com/news_2012_mar02_prophecy_platinum_ursa_major... 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 Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf
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Gold's London AM fix this morning was USD 1,705.25, EUR 1,299.93, and GBP 1,088.57 per ounce.
This month I am pleased to provide readers with the transcript of my recent interview with Hugo Salinas-Price, focusing on his plan for re-introducing circulating silver coinage. For those not familiar with Mr. Salinas-Price, he has been a tireless and eloquent hard-money advocate for decades. However, rather than merely rant at the destabilizing effects of inflationary monetary policies, some years ago he formulated a detailed plan to not only help protect savers from the erosion of wealth through inflation but also to potentially catalyze a return to sound monetary policy in his native Mexico and elsewhere. While ambitious in its potential effects, his plan is nevertheless refreshingly simple and would be quick to implement, making it ideal for any country seeking a way to restore financial stability, protect savings, attract investment and create jobs.
A dedicated group of young film makers is producing an animated full length feature film set in the future. The film is set in 2019 after a massive economic collapse has taken place. Tyranny, explosions, monetary mayhem, romance and a young rebel force, take on the evil world financial controllers who work at the Fed. Ron Paul was asked to star in the movie, however it's set too far into the future for him to participate.
How would you feel if you worked for a state or local government for 20 or 30 years only to have your pension slashed dramatically or taken away entirely? Well, this exact scenario is playing out from coast to coast and in the years ahead millions of elderly Americans are going to be affected by broken promises and vanishing pensions. In the old days, things were much different. You would get hired by a big company or a government institution and you knew that the retirement benefits that they were promising you would be there when you retired in a few decades. Unfortunately, we have now arrived at a time when government institutions and big companies have promised far more than they are able to deliver, and "pension reform" has become one of the hot button issues all over the nation. Many Americans that have been basing their financial futures on their pensions are waking up one day and finding that their pensions are either gone or have been cut back dramatically. According to Northwestern University Professor John Rauh, the latest estimate of the total amount of unfunded pension and healthcare obligations for state and local governments across the United States is 
There are so many things going on in the world that it's virtually impossible for anyone to keep track of it all. We're all facing information overload; Greek debt defaults, Portugal's on-going implosion, the debt bubble inflating at an unsustainable rate, to name just a few. Fortunately, Ty Andros stays up late nights sifting through numerous sources to keep up better than just about anyone out there.
So much for the expected volatility. After all the wailing and grinding of teeth over Greece, the market impact was negligible. U.S. stocks and bonds have been in a quiet, tight range all day. Yawn. However, the lack of buying enthusiasm allowed The Cartels to press their advantage in the PMs and down they went.
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