Gold World News Flash

How Stimulus Fails
Richard Russell - More QE After 40 Year Monster Bubble
Silver Update: 3/13/12 Silver Slowdown
U.S. Deficit Growing–Not Tax Receipts
Why Are Millions Of Americans Preparing For Doomsday?
Gold Seeker Closing Report: Gold and Silver Fall Over 1%
The science of gold and other precious metals
The Gold Price Remains Bullish as Ever Despite Drops
Gold Tests Last Week?s Low
Platinum regains its premium to Gold
China defends tough stance on rare earths
Troika Finds Greece Already Likely To Miss Bailout Budget Targets
Fed Statement: From “Modest” to “Moderate”?
Is This The Chart Of A Broken Inflation Transmission Mechanism?
What’s Driving the Gold, Silver Prices?
SocGen: Tuesday's FOMC was "as good as it gets" for QE3 hopefuls
Harvey Organ's Daily Gold & Silver Report
Investigative journalist Teri Buhl Blows the Whistle on Sex and Money Scandal in New Canaan, CT!
Fed Says 15 of 19 Banks Have Adequate Capital in Stress Scenario
FOMC Results: ZIRP to 2014 And Then They Raid Gold And Silver / Another Scandal At A Commodity Company
Oil, Alternatives, and Nuclear Weapons – An Interview with Marc Faber
Farage - Yes, Germany & Switzerland Want Their Gold Back
What’s Driving the Gold, Silver Prices?
Is a Mortgage a Better Inflation Hedge Than Gold and Silver?
The Gold Price Nearly Touched the Crucial Resistance at $1,705 Needs to Close Above $1,715
Enhance Portfolio Returns by Including 10/15% Gold Mining Stocks ? Here?s Why
Complacency Index hits 45 month low in today's trade
Buy Gold Because a Currency Crisis is Coming
Keiser Report cites vulnerability of German, Swiss gold reserves
James Grant Says Bond Market Is `Desert of Value'

Posted: 13 Mar 2012 05:15 PM PDT

A case study of federal waste in Silver Spring, Maryland

It's not hard to make the case that President Barack Obama's $840 billion stimulus was a failure. The economy, which was supposed to recover as a result of the massive spending, has largely remained in the doldrums. The administration's prediction in the event that the stimulus didn't pass—an unemployment rate of 8.8 percent—was exceeded within two months of February 2009, when the bill was signed into law. (At the time, the total cost was said to be $787 billion; that figure was later adjusted upward by more than $50 billion to align with the president's budget.) Democratic dead-enders claim this laughably inaccurate employment projection was based on a lack of knowledge about how lousy the economy really was. They tend to overlook another broken stimulus promise: that 90 percent of the jobs "created or saved" would be in the private sector. In fact, the biggest beneficiaries of stimulus funds have been public school teachers.

These big-picture truths paint a picture damning enough. But to better understand the fallacies of stimulus economics, it helps to take a close-up look at how the money was spent. To capture such a cross-section of stimulus reality, reason.tv went to Silver Spring, Maryland, a suburb of Washington, D.C., that is home to many government contractors and other recipients of money earmarked for the "shovel-ready" projects that were supposed to bring the economy back to life. Read more..........

This posting includes an audio/video/photo media file: Download Now

Richard Russell - More QE After 40 Year Monster Bubble

Posted: 13 Mar 2012 04:38 PM PDT

With gold trading near the $1,700 level, today the Godfather of newsletter writers, Richard Russell, had this to say in his latest commentaries: "I have been writing my 'stuff' for about 54 years. They say that you can't teach old dogs new tricks, but I'm an old dog and I'm still learning. Many people in this line of work ask me how in the world I stay in business. I tell them, I really don't know, I write about what's on my mind, and most subscribers evidently like it."

This posting includes an audio/video/photo media file: Download Now

Silver Update: 3/13/12 Silver Slowdown

Posted: 13 Mar 2012 04:37 PM PDT

from BrotherJohnF:

U.S. Deficit Growing–Not Tax Receipts

Posted: 13 Mar 2012 04:24 PM PDT

from Greg Hunter's USAWatchdog.com:

Monday's post closed with, ". . . The nonpartisan agency projected the government will run a deficit of $229 billion in February, the highest monthly figure ever." (Click here for the complete report from the Washington Times.) That means the government spent nearly $8 billion more than it took in each and every day of last month (29 days). This is not a sign of economic "strength" but of tremendous weakness. You cannot print your way to prosperity, but it can pave the way to an economic collapse." (Click here for Monday's complete post.) The $229 billion (February) deficit was reportedly revised upward, making the situation worse than I reported.

Read More @ USAWatchdog.com

Why Are Millions Of Americans Preparing For Doomsday?

Posted: 13 Mar 2012 04:19 PM PDT

from The Economic Collapse Blog:

All over America, there are millions of Americans that are quietly preparing for doomsday. They are turning spare rooms into long-term food storage pantries, they are planting survival gardens, they are converting their homes over to alternative sources of energy, they are taking self-defense courses and they are stocking up on just about anything you can imagine. They are called "preppers", and their numbers have absolutely exploded in recent years. In fact, you might be living next door to one and never even realize it. According to a recent Daily Mail article, there are approximately 3 million preppers in the United States today. Others believe that the true number is significantly higher than that. This movement has become so popular that there are now even television shows being done about preppers. The most popular is probably "Doomsday Preppers" on the National Geographic Channel. This movement is still growing and is not going to go away any time soon. In fact, as the world continues to become even more unstable it is likely that a lot more Americans will find themselves becoming preppers in the years ahead.

Gold Seeker Closing Report: Gold and Silver Fall Over 1%

Posted: 13 Mar 2012 04:00 PM PDT

Gold fell $15.88 to $1683.52 by a little after 9AM EST before it rebounded to $1701.28 by midday, but it then fell to a new session low of $1662.70 after the fed's statement and ended with a loss of 1.7%. Silver slipped to as low as $33.011 and ended with a loss of 1.13%.

The science of gold and other precious metals

Posted: 13 Mar 2012 03:26 PM PDT

11:16p ET Tuesday, March 13, 2012

Dear Friend of GATA and Gold:

GoldMoney today distributed a wonderful study by Walt Sosnowski of SRC Capital Management in Rockwall, Texas, that attempts a "scientific" approach to gold and other precious metals, including their functionality as money. There's plenty of documentation here for concluding that gold's performance is far superior to that of the major government currencies, at least for the holders of money. Of course governments issuing currency may consider superiority a matter of currency's ease of debasement, so maybe it's just a matter of which end of the transaction you're on. Sosnowski's study is something you may want to show your investment adviser and elected officials to see if they can think of any way to dispute it -- at least if you'd be happy never to hear from them again. It's titled "The Science of Gold and Other Precious Metals" and it's posted at the GoldMoney Internet site here:

http://www.goldmoney.com/goldmoney-foundation/essays/the-science-of-gold...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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Sona Discovers Potential High-Grade Gold Mineralization
at Blackdome in British Columbia -- 13.6g over 1.5 Meters

From a Company Press Release
November 22, 2011

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

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

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Or by purchasing a colorful GATA T-shirt:

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Prophecy Platinum (TSXV: NKL) and Ursa Major Minerals
Sign Combination Agreement

Company Press Release
Friday, March 2, 2012

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
diversified pipeline of platinum nickel projects, including:

-- 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...

The Gold Price Remains Bullish as Ever Despite Drops

Posted: 13 Mar 2012 02:14 PM PDT

Gold Price Close Today : 1693.70
Change : (5.50) or -0.32%

Silver Price Close Today : 3354.40
Change : 17.0 cents or 0.51%

Gold Silver Ratio Today : 50.492
Change : -0.422 or -0.83%

Silver Gold Ratio Today : 0.01981
Change : 0.000164 or 0.84%

Platinum Price Close Today : 1683.00
Change : -19.00 or -1.12%

Palladium Price Close Today : 701.90
Change : -7.10 or -1.00%

S&P 500 : 1,395.96
Change : 24.87 or 1.81%

Dow In GOLD$ : $160.84
Change : $ 3.19 or 2.02%

Dow in GOLD oz : 7.780
Change : 0.154 or 2.02%

Dow in SILVER oz : 392.85
Change : 4.53 or 1.17%

Dow Industrial : 13,177.68
Change : 217.97 or 1.68%

US Dollar Index : 80.22
Change : 0.330 or 0.41%

I reckon after big drops today in the silver and GOLD PRICE I'll have to re-examine all that optimism I sported yesterday. Let's see . . . Yep, I've re-examined and I am as bullish as ever on silver and gold. I will even explain how, a little later. However, bear in mind that I warned yesterday this would be a toilsome week for silver and gold.

Apparently somebody sent out a world-wide announcement today saying "Buy stocks and sell silver and GOLD at 3:00 p.m. Eastern Daylight Time." That's about when the panic hit the gold market.

The GOLD PRICE had closed at $1,693.70, not bad after a $1,685 low, but at a little after 3:00 the bottom dropped plumb out, taking gold from $1,680 to $1,665 faster than a car window will suck a $100 bill out a window when you're doing 80 miles an hour on the interstate.

Gold bounced on that right cheerily, about like Play-dough bounces, up to $1,675-ish. Fess up, it's a new low for the week, which will suck gold down toward $1,640. If that breaks, chart offers no comfort and support before $1,550 - $1,525. One more push down is in the deck, to finish the correction off the February 29 high. This shouldn't last more than a week, 10 days.

The SILVER PRICE chart doesn't quite match gold's, although it also shows a fast drop after 3:00 pm.. Low came later as it fell fast in the aftermarket, as low as 3296c. Comex actually closed UP 17c at 3354.4c, so it appeared we'd have another of those one-metal-up/ other-metal-down days that lately presages an up day for both following. Not today. Silver reeled like an punchy old boxer hit with brass knucks. This is getting serious today -- if silver lets go of its hold on 3300c, then look for 3183c, maybe 3150c.

Now y'all are scratching your heads wondering what possible Ace in the Hole I might be holding to support my bullish outlook. I believe that silver and gold are putting the finishing touches on upside- down head and shoulders pattern that foretell LARGE rallies. Also, I have been pondering silver's 300 day moving average, checking that against the ancient days of this bull market, and it is flashing a green light.

But what do I know? I'm the Tennessee fool who thought yesterday that stocks were about to drop against gold and silver. Now I am not, I promise going to dredge up all the fundamentals -- the inflation, the bad investment not yet liquidated, all the debt, the Moe-Rons running things -- that doom stocks and smile on silver and gold. I'm not even going to say, as I usually do, that the news for stocks is about as good as it gets. Naw, if I said any of that it would just sound like exculpation or self-justification, and I personally would rather wait for events to unfold and show y'all that all by themselves.

Shucks, I don't know hardly anything. When you talk about buying stock, all I can think of is rare pigs.

One thing you learn from studying history is that DISCONTINUOUS EVENTS -- those great rifts that divide ages and forever change the world from the bottom up -- don't happen very often. Most of the time, today passes about like yesterday did, but every once in a while, something happens, at first perhaps insignificant, that changes everything.

Keep trudging, O Weary Americans, the gate to Schlaraffenland, the land where nobody has to work, the beer is free, and the roast chickens fly into your mouth under their own power, lies right around the bend, our Leaders and Gurus assure us.

Markets certainly can keep you humble -- several times a day. Hard on the heels of my expectation that stocks would begin underperforming gold and silver, stocks rose mightily and silver and gold fell sharply. I reckon I DO look like a natural born fool.

But only for a little while. Veritas temporis filia.

Stocks broke through the 13,000 barrier like thirsty longhorns stampeding to an alkali pond. Couldn't stop em if you tried. Dow gained 217.97 points or 1.68%. (I can't remember -- one of y'all remind me -- what day was it the Dow FELL 203.66 points. Was that 6 March?) S&P500 rose 1.81% or 24.87 points to end at 1,395.96.

About 100 points of today's rally came after 3:00 p.m. From 10:00 to 3:00 the Dow gained from 13,000 to 13,100. Tail end of the day, the last hour, it jumped another one hundred points.

News says stocks had been buoyed by good retail sales reports (government numbers -- need I say more?), then the Bernancubus' open market committee voted to keep interest rates near zero, yakka-yakka-yakka. Today some say the market interpreted all this as meaning more liquidity, a.k.a., printing more money, but if the market's expecting more inflation out of the Fed, why did the dollar rise and silver and gold sink all while stocks rose? Blub, splutter, I don't know, they have to say.

Well, at least charts don't prevaricate much, so let's look at them. The Dow traced out a bearish rising wedge, fell out of it downside as the pattern foretells, then against all expectation turned and crossed above its 20 DMA and broke out above last May's high. What can I say? The chart lied. It's headed higher, maybe to 14,000, floating on a sea of fresh money. Besides, if it reaches 14,000, it will almost reach the inflation-adjusted value of January 2000.

Friends, I'm going to snatch victory out of the jaws of defeat, or die trying.

US dollar index ought to have surprised no one today when it gained 33 basis points (0.42%) to 80.22. 79.90 now will pitch in with strong support while the dollar heads for 82 and above. Higher close tomorrow confirms that upward intention, as it will close above the last high for two days.

The yen and euro bowed courteously to the dollar and fell 0.52% to $1.3086 and 0.81% to 120.56 cents (Y82.95). New low for the yen, with no discernible bottom. At least the euro probably won't fall much below $1.2900.

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.

Gold Tests Last Week?s Low

Posted: 13 Mar 2012 02:13 PM PDT

courtesy of DailyFX.com March 13, 2012 03:10 PM Daily Bars Prepared by Jamie Saettele, CMT Gold tested last week’s low today before rebounding slightly. The yellow metal is extremely choppy and pattern lacks clarity. Continued weakness would expose support from the 12/21 high near 1650. A bearish channel may be developing gives the series of lower highs since late February. Bottom Line (next 5 days) – no idea...

Platinum regains its premium to Gold

Posted: 13 Mar 2012 02:01 PM PDT

[url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] For the last six months or so, platinum has been trading at a discount to gold. This is a rare occurrence as one can see from a glance at the monthly chart going back to 1990. Only in 1991 did platinum trade at a discount to the price of gold. Late last year and early into this year, an ounce of the white metal was over $200 cheaper than an ounce of gold! This came about due to fears that the global economy would slow down as European sovereign debt woes sent out a type of contagion rippling across the planet. Auto sales especially would be hit and since platinum is heavily used in catalytic converters, ideas spread that demand for the metal would falter. If you notice however, platinum has been steadily gaining ground against gold as investors began anticipating Central Bank liquidity injections to deal with the pesky debt issues plaguing Europe, not to mention an ultra low interest rate e...

China defends tough stance on rare earths

Posted: 13 Mar 2012 01:34 PM PDT

By John W. Miller, James T. Areddy, and Sudeep Reddy
The Wall Street Journal
Tuesday, March 13, 2012

http://online.wsj.com/article/SB1000142405270230445000457727877061255529...

Beijing's tough defense of its rare-earths export quotas is expected to escalate trade disputes over the minerals and spur mining investments—although China has strengths in the industry that are potentially long-lasting.

The U.S., the European Union and Japan Tuesday filed a complaint against China at the World Trade Organization over Chinese restrictions on shipments of raw materials, including rare earths, a category of 17 mineral elements and alloys essential to high-tech goods from iPads to the Toyota Prius hybrid car. The complaint, which will be ruled on around the end of 2012, demands that China remove its export restrictions or face trade sanctions. Some uses are more esoteric: Europium is an antiforgery marker in euro banknotes.

Xinhua, China's state-run Chinese news agency, said in a commentary Tuesday the move could "trigger a backlash from China instead of settling the rift." Xinhua said the move "may hurt economic relations between the world's largest and second-largest economies."

China Minister of Industry and Information Technology Miao Wei told Xinhua that Chinese officials "are actively preparing to defend ourselves."

... Dispatch continues below ...

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Golden Phoenix Discusses Royalty Mining Growth Strategy
on '21st Century Business' on Fox Business Network

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/

President Barack Obama announced the U.S. trade action, saying the U.S. will not allow other countries to get away with "skirting the rules."

The WTO usually rules against export quotas, tradeexperts say, but whatever the outcome, the rare-earths trade dispute seems likely to escalate. "Beijing is likely to be preparing a fierce counterpunch, especially since China is in the midst of its own leadership transition and can ill afford to be seen as caving in to international pressure," says Eswar Prasad, a Cornell University professor of trade policy.

China, which currently produces 95% of rare earths, up from 40% in 1995, has cut export quotas to around 30,000 metric tons a year from 65,000 tons in 2005, in recent years citing environmental concerns and a desire to keep the industry sustainable. The U.S. Defense Department estimates that rare-earth prices surged between four and 49 times compared with their values in current dollars in 2001. Prices have been easing in recent months, though they remain historically high.

Rare-earth production in the rest of the world is expected to match China's output by 2020 as others ramp up mine production to counter China's dominance.

Total global production, to be sure, is just over 120,000 tons, making it a market of only a few billion dollars, compared with 1.5 billion tons and a market of more than a trillion dollars for iron ore, steel's main ingredient.

But high-tech firms need the minerals at affordable prices and have ferociously lobbied governments in Brussels, Washington and Tokyo—arguments that resonate as rare earths have numerous military applications, too.

China's tight grip has also sparked a search for alternative rare-earth sources. Gareth Hatch, an analyst at research firm Technology Metals Research, counts more than 419 rare-earth projects in 36 countries. Shares in rare-earths-related companies, most of which trade on the Toronto Stock Exchange, rose Tuesday on news of the trade dispute.

So far, fewer than a dozen rare-earth miners outside China have emerged with the potential to produce between 10,000 and 40,000 tons a year this decade. Two of them, Colorado-based Molycorp Inc., which is reopening an old mine in California, and Australia's Lynas Corp. are racing to bring their mines to full capacity.

Another four are expected to come online in about five years. Those include Frontier Rare Earths Ltd. in South Africa; Avalon Rare Metals Inc. and Quest Rare Minerals Ltd. in Canada; and Rare Element Resources Ltd. in Wyoming. "We're starting to see things shake out," says Randy Scott, the CEO of Rare Element Resources, which in January said that drilling had confirmed a 38% increase in reserves to 6.8 million tons. "We ramped up our efforts three years ago, but the permitting and regulatory work take time."

Those six ventures are expected to result in around 120,000 tons in annual production capacity for the West, effectively doubling global production, according to surveys.

The industry has also seen mergers and consolidations following share-price weakness for the sector.

Last week, Colorado-based Molycorp said it would pay $1.3 billion for Toronto-listed Neo Material Technologies Inc., a company that transforms rare earths into materials used to make specialized magnets. In December 2011, Toyota Motor Corp.'s trading arm said it would form a joint venture with Matamec Explorations Inc., a Canadian firm, and buy all output from its Kipawa mine in southern Quebec, which is set to come on stream in early 2016.

Also in December, Korea Resources Corp. announced it would pay an estimated $24 million for a 10% stake in Frontier, which is based in Luxembourg but is developing a mine in western South Africa. That mine is forecast to produce 20,000 tons of rare-earth oxide a year starting in the second half of 2015, says Paul McGuinness, Frontier's chief financial officer. Frontier is also building a separation plant for a total project cost of around $900 million. "You need to turn the rare earths into metals, and then alloys, then a magnet, before it even ends up in a product," he says.

Such deals have added to cracks in China's hold on production. But its manufacturing sector has made China the largest consumer of rare earths as well, and a fast-growing strength is its capability to process raw elements into usable materials. Such operations can produce radioactive waste that regulators in few other countries allow.

At least until 2016, says Mr. McGuinness, China will hold onto its dominance of global production. "That's why you're seeing big users like Samsung and Toyota looking to go downstream," he says. "Our Korean partners don't want to have to rely on China indefinitely for something that is so critical to major elements of Korean industry."

* * *

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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

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Be Part of a Chance to Discover
Multi-Million-Ounce Gold and Silver Deposits in Canada

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.

Troika Finds Greece Already Likely To Miss Bailout Budget Targets

Posted: 13 Mar 2012 01:29 PM PDT

from ZeroHedge:

The money for Greece has not yet been wired, and already a deeper dive into the previously released Troika report shows what is glaringly obvious to anyone who follows the actual collapse of the Greek economy: that the country is already on course to miss its budget targets for the immediate future (for insane EU assumptions on what the Greek economy should look like through the lens of a Eurocrat, see our chart of the day). The Telegraph reports: "Athens has probably cut spending enough to bring its primary deficit down to 1.5pc this year as agreed. But "current projections reveal large fiscal gaps in 2013-14″ according to a leaked draft report by the European Union (EU), the European Central Bank (ECB) and the International Monetary Fund (IMF). In its report, the troika said Athens will have to impose further fiscal cuts of as much as 5.5pc of GDP to meet next year's targets." And while Europe may be terminally fixed, translated this means that the aborigines of the southern colony of Bavaria Sachs will see their wages cut even more, and even more people will be unemployed soon just to appears the first lien debt holders. This in a country of 10.8 million where just 36% of the population works. So Greece, which today received a rare bit of highly irrelevant but good news, when Fitch became the first rating agency to upgrade the country's credit rating from Default to B- (even as its new bonds saw their yield surge to 19% on the second day of trading), will in a few short months be forced to once again deal with even more consequences of being the proud recipient of the inverted European bailout, whereby the country's gold is used to fund Eurobank capital shortfalls.

Read More @ ZeroHedge.com

Fed Statement: From “Modest” to “Moderate”?

Posted: 13 Mar 2012 01:25 PM PDT

The policy making committee of the Federal Reserve gathered today in Washington to pass judgment on the state of the economy and the stock market certainly liked what it heard, though precious metals markets surely did not.

Fed Rate Cutting Cycles As expected, there were no changes to short-term interest rates, existing policies were unchanged, and no new policy moves were announced.

The Fed acknowledged an improving labor market and rising oil prices while also downplaying the threat of spillover effects from Europe, that is, now that the European Central Bank has finally seen fit to print up more than a trillion dollars for the greater good.

"Steady as she goes" is what equity markets were waiting to hear and they responded accordingly (Susie Gharib and Tom Hudson no doubt had twinkles in their eyes on PBS's Nightly Business Report) while gold and silver traders were again disappointed to hear nary a mention of further central bank money printing on this side of the Atlantic and many of them exited positions as a result.

None of that should come as much of a surprise.

But, what was interesting about today's meeting was that the policy statement released after its conclusion had a few subtle changes as annotated in the graphic below, something that has been the exception to the rule lately.

First, they removed the statement about slowing global growth (see note 1) when, in fact, economies around the world are either tipping into recession (e.g., Spain, Italy) or ratcheting down their growth forecasts (e.g., China, India).

Second, they chose to replace the word "modest" with "moderate" (see note 2) when it came to updating how they view prospects for economic growth in the U.S. I suppose that's an upgrade, but not a very bold one.

Lastly, when discussing inflation and their dual mandate of stable consumer prices and low unemployment (see note 3) they changed "at levels consistent with the dual mandate" to "at the rate most consistent with its dual mandate" which I have no idea what to make of.

Of course, maybe they had some new guy update the policy statement and he didn't know that people scrutinize every little change.

Then again, maybe they're trying to send some sort of message…

Is This The Chart Of A Broken Inflation Transmission Mechanism?

Posted: 13 Mar 2012 01:01 PM PDT

Sean Corrigan presents an interesting chart for everyone who still believes that, contrary to millennia of evidence otherwise, money is not fungible. Such as the Lerry Meyers of the world, who in a CNBC interview earlier said the following: "I'm sorry, I'm sorry, you think he doesn't have the right model of inflation, he would allow hyperinflation. Not a prayer. Not a prayer. If you wanted to forecast inflation three or four years out and you don't have it close to 2%, I don't know why. Balance sheet, no impact. Level of reserves, no impact, so you have a different model of inflation, hey, you like the hawk on the committee, you got good company." (coupled with a stunning pronouncement by Steve Liesman: "I think the Fed is going to be dead wrong on inflation. I think inflation is going up." - yes, quite curious for a man who for the longest time has been arguing just the opposite: 5 minutes into the clip). Because despite what monetary theorists say, monetary practitioners know that money always finds a way to go from point A (even, or especially if, said point is defined as "excess reserves" which in a stationary phase generate a ridiculously low cash yield) to point B, where point B are risk assets that generate the highest returns. Such as high beta stocks (and of course crude and other hard commodities). And the following chart of Inside vs Outside Money from Sean Corrigan shows precisely how this is accomplished.

The explanation:

Despite a certain embarrassment along the way with rising prices last year, other people's tightening efforts (notably in the emerging market engines of recovery) have spared Ben much difficult decisionmaking. Fortuitously, too, a goodly portion of the inflationary injection has stuck anomalously to the fingers of a corporate sector saddled with an unusual degree of certainty about its members' individual prospects as well as about those relating to the fiscal and regulatory environment at large.

Thus, in devoting 85% of retained earnings—or 20% of ex-dividend, after-tax cash flow—to accumulating a $630 billion mountain of money (cash plus demand deposits) over the past 2 1/2 years, these most unlikely of 'hoarders' have helped retard the incendiary effects of the Fed's actions— for now.

This—together with the collapse in the ratio between the monetary base and the money supply itself—has fooled the more mechanistic of the quantity theorists into believing the machinery of debasement has been broken. Meanwhile, the cranks who comprise the MMT mob are crowing that the gold bugs and associated survivalists who inhabit the wilder fringes of the hard moneyworld (whom they insist on conflating with us REAL Austrians) have again been horribly awry in uttering their cries of 'Wolf! Wolf!'

In truth, none of this is so hard to explain. Taking money creation itself, the LEH-AIG-EUR disruption has radically altered the normal generation of money, but has not caused its suspension. In fact, given the speed of its operation since the Crisis, we could even say its efficiency has been greatly enhanced!

Before that watershed, the Fed typically gave rise to around one quarter of the nation's money (OUTSIDE the commercial banks, in the form of currency and reserve balances) while the remaining three?quarters used to be originated INSIDE the banks (by their grant of loans or their purchase of securities against the recording of a credit balance on the relevant demand deposit account in their books).

Since then, however, the position has been largely inverted, so that the banks themselves are now responsible for something barely in excess of two-fifths of the total, with the Fed supplying the other three?fifths through its various 'emergency' programmes.

No?one should be under the illusion that just because the monetary base (the Fed's particular contribution) has swollen dramatically in relation to the sum of the banks' discretionary additions to it, this makes the whole any less spendable or any less assured in its provision—quite the contrary, given Mr Bernanke's inflationary bent and the lack of restraint which attaches to the monstrous institution whose awful power he arbitrarily wields.

Not yet convinced? Tomorrow we will demonstrate how in Q4, 2011 the US Shadow Banking system experienced its 15th consecutive quarterly contraction, from an all time high of $20.9 trillion to just $15.1 trillion (advance teaser chart here), not even offset by the liability creation in the traditional financial system, even as US consumers finally relevered for the first time in years, as eager suckers maxing out their credit cards. All this goes to show that the Fed never had an alternative to pouring money into the system, and indeed has done so endlessly since late 2008, only taking a break in late 2011 when the baton was passed to every other central bank in the world. Now their time is over, and the baton will have to be handed back to the Fed.

Because when it comes to secular market moves, today's little bout of JPM-related euphoria will be truly transitory if not accompanied by much more printing. After all the chart below is exponential and demands a sacrifice soon: perhaps the PBoC will step in briefly, although unlike the other central banks, China's money tends to stick within its own system. As such a far bigger calf will be required.

Which means that far all its hawkish bluster, today's move by the Fed is to be faded, although not before the market will permit sticky energy asset prices to collapse: meaning more outside money injections are coming. Yes, stocks may go even higher briefly, but for all intents and purposes unless accompanied by even more liquidity, the latest peak in stocks will be just like that in April of 2011: short-lived (and yes, we do find it curious how 2012 still continues to play out just like a carbon copy of 2011 YTD).

The end result of the exponential surge in outside money is, sadly we must admit, one which will make Liesman correct. For once. Because, as our earlier anecdote on Weimar showed, this is all precisely just as the Fed has intended from the beginning.

What’s Driving the Gold, Silver Prices?

Posted: 13 Mar 2012 01:00 PM PDT

The last few weeks have seen a larger consolidation pattern forming, pointing to a much bigger consolidating pattern that implies far more than just a short-term trading move just ahead of us. The forces that drive both supply and demand in the very short-term are just about in balance, so it is appropriate that we look at these forces to see how they influence gold prices in the short, medium, and long term.

SocGen: Tuesday's FOMC was "as good as it gets" for QE3 hopefuls

Posted: 13 Mar 2012 12:46 PM PDT

The FOMC statement out this afternoon went more or less as everyone expected it would. There was not much change in the Fed's rhetoric save for recognition of the fact that the economic data has been coming in better than expected in recent months (although economic surprise indices are now rolling over as well). As Vincent Reinhart -- who believes the chances of QE3 by June are still 75% -- noted after Ben Bernanke's recent visit to Capitol Hill, "stronger incoming data have been mostly ignored by the Fed." While there were slight modifications to the verbiage, the Fed's outlook on monetary policy was identical. A red-line comparison of the last FOMC statement with the one released today was posted earlier on ZeroHedge.

SocGen's take (all emphases theirs):

Pointing out that the housing market remains depressed and viewing unemployment as elevated, while at the same time rationalising away the imminent risk of inflation, the Fed leaves the door wide open for a QE3 announcement in April. But the immediate market reaction to the FOMC was muted, suggesting that the market has expected nothing less from the Fed. The Fed does not appear to be in the position to take any option off the table at this critical juncture of the economic recovery. Earlier in the day, retail sales figures surprised on the upside, pushing stocks higher. And yet, the US economy needs to be nurtured by the Fed to gain traction. The Fed is now expected by most market participants to err on the side of being too accommodative. Fix the economy now, worry about inflation later!

This confirms in our view that QE3 is coming.

As Jefferies recently pointed out, financial repression schemes have become a common tool in modern sovereign finance over the last century or so, and the FOMC's reiteration today that "economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014" is no exception.

SocGen questions the central bank's grasp on the whole interest rate situation:

10-year swap spreads are already trading below 7bp, down from 15bp at the beginning of the year and around 20bp six months ago. The risk now becomes that QE3 is already widely priced in (announcement effect), after which the actual announcement and its execution could actually lead to higher interest rates.

Where there are winners, there are losers. And one of the main losers of a Fed keeping the economy on life support for as long as possible is the (30-year) Treasury Long-bond. Following the Fed's announcement, it dropped by almost one point. While the Fed may be able to keep a lid on inflation for three, five or even ten years, the prospect of inflationary pressure creeping up within the next 30 years cannot be ruled out. This is not a good set-up for Wednesday's 30-year Treasury reopening! Caveat emptor!

DailyCollateral.com // @DailyCollateral

Recession Scenario

The Fed said an unemployment rate of 13 percent, a 50 percent drop in stock prices and a 21 percent decline in house prices under the stress scenario would produce aggregate losses of $534 billion over nine quarters.

Even with that blow, the 19 banks would see their tier one common capital ratio — a measure of bank strength against loss — fall to 6.3 percent in the fourth quarter of 2013 in the hypothetical scenario, above the 5 percent minimum the Fed required. The ratio was 10.1 percent in the third quarter of last year.

The Fed started the test and review of banks' forward- looking capital strategy in November, saying they should have "credible plans" to meet tougher standards required by new regulations and to continue lending even in period of financial stress.

Loan Portfolios

Of the $534 billion in total projected losses, $341 billion comes from loan-portfolio losses, the Fed said. Loans and trading portfolio and counterparty losses account for 85 percent of the total, the Fed said.

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 six were Citigroup, Bank of America Corp. (BAC), Wells Fargo & Co., Morgan Stanley (MS), Goldman Sachs Group Inc. (GS) and JPMorgan Chase.

Continue

FOMC Results: ZIRP to 2014 And Then They Raid Gold And Silver / Another Scandal At A Commodity Company

Posted: 13 Mar 2012 12:30 PM PDT

by Harvey Organ:

Good evening Ladies and Gentlemen:

Gold closed today down $5.80 to $1693.70 Silver closed up by 20 cents to $33.54.All eyes were on what Bernanke might say today at 2:15 after his FOMC meeting. He basically said nothing but that was enough for the bankers to whack gold/silver in the access market with few counterparties. I urge you all to buy only physical and avoid the comex. Be thankful that the prices are low that you can accumulate cheaply, like Mainland China.

Let us head over to the comex and assess trading today.

Oil, Alternatives, and Nuclear Weapons – An Interview with Marc Faber

Posted: 13 Mar 2012 12:24 PM PDT

As the world economy teeters on the brink and rising oil prices threaten to de-rail the delicate roots of recovery we asked legendary investor Dr. Marc Faber to join us and give his views on high gasoline prices, the shale boom, alternative energy, developments in the Middle East and much more.

In the interview Mark talks about the following:

• Why investors shouldn't buy oil right now
• Why alternative energy investments are a bad idea for investors
• Why Iran should be allowed Nuclear weapons
• Which direction oil prices could go and why
• Why Investors should be taking money off the table NOW.
• Why we shouldn't be pinning all our hopes on natural gas
• Why selling down the strategic petroleum reserve to reduce oil prices is a useless strategy.
• Why the shale boom won't affect US foreign policy priorities
• Why Obama is a disappointing president

Dr. Faber is a very well known commentator throughout the investment community. He regularly appears on CNBC and is a member of the Barrons round table.
Marc is the editor and publisher of the Gloom Boom & Doom Report, which is a very popular investment newsletter that highlights unusual investment opportunities for its subscribers. You can find out more about the Gloom Boom & Doom Report at Marc's website: www.GloomBoomDoom.com.

OilPrice.com: A number of our readers have been enquiring about the recent oil price increases, where a few weeks ago we saw them rise to a ten month high. Where do you see oil prices going from here, and what do you see as the main reasons for the rapid increase?

Marc Faber: I think there is a risk that oil prices will go much higher. At the same time, the bullish consensus on oil is now at one of the most elevated levels it's ever been. In other words, from a contrarian point of view, you shouldn't buy oil right now.
I think it may go down somewhat. In general, if trouble breaks out in the Middle East, or if there is a war, I think the price of oil could go much higher.

OilPrice.com: What are your 3-5 year projections for oil prices?

Marc Faber: Well, you'll have to give me a second. I need to call Mr. Ben Bernanke and ask him how much money he will print. Commodity prices were in a bear market from 1980 to 1998, and since then they've gone up. But because of expansionary monetary policies and artificially low interest rates they have increased more than would have otherwise been the case. We don't know exactly how long this asset bubble will last – but say if you had interest rates in real terms, of five percent, instead of negative five percent, then I think all commodity prices, including gold, would be lower.

OilPrice.com: Obama is being pressured by the Democrats to use the Strategic Petroleum Reserve in order to flood the market with a large supply of oil in an attempt to drive down prices. Some commentators seem to think that this will help, although only in the short term because low supply isn't the cause of the high prices. Do you think it's sensible advice to use the reserves now to lower short term prices or should Obama remain strong and only use the stockpile for what it was designed for?

Marc Faber: I think selling down the reserves would be a useless strategy as one of the main reasons prices are rising is due to international tensions. It's possible for an increase in supplies to drive down the price a little bit. But in emerging economies like China and India, the demand continues to go up. Now, it may not go up every year by the same quantity it did in the last 3 years, because in the last 15 years, oil demand in China tripled, from 3 million barrels a day to 9 million barrels a day.
So it's conceivable that in a recessionary environment in China, oil demand will not go up substantially for one or two years. But because the per capita consumption is so low in countries like China and India compared to say the U.S. and Japan and Western Europe, I think the trend will continue to increase.

Continue

Farage - Yes, Germany & Switzerland Want Their Gold Back

Posted: 13 Mar 2012 12:04 PM PDT

however much money they borrow, however much money they print, in markets, in the end the fundamentals always win out.

What’s Driving the Gold, Silver Prices?

Posted: 13 Mar 2012 11:58 AM PDT

The last few weeks have seen a larger consolidation pattern forming, pointing to a much bigger consolidating pattern...

Is a Mortgage a Better Inflation Hedge Than Gold and Silver?

Posted: 13 Mar 2012 11:33 AM PDT

Buy a House. Put Nickels in It. Normally we would not look upon buying a single family house for personal use as an investment. But these are strange times we live in. In a completely free market (and a free market means no central bank with a monopoly on currency issue and the ability to manipulate interest rates) housing prices would probably act like the price of all other goods and services. That is to say, that they would tend to move downward over time due to increasing production efficiency and competition among producers against the backdrop of precious metals money and competing currencies that would tend toward stability. The notion that housing prices should rise at all is born of generations constant expansion of the money supply by the central bank. A house’s price has no more natural inclination to rise than the price of a gold coin sans inflationary policy and artificially low interest rates. A house is at base merely a very durable good for consumption. It pro...

The Gold Price Nearly Touched the Crucial Resistance at $1,705 Needs to Close Above $1,715

Posted: 13 Mar 2012 10:51 AM PDT

Gold Price Close Today : 1698.10
Change : 14.80 or 0.88%

Silver Price Close Today : 3378.90
Change : 24.6 cents or 0.73%

Gold Silver Ratio Today : 50.256
Change : 0.073 or 0.14%

Silver Gold Ratio Today : 0.01990
Change : -0.000029 or -0.14%

Platinum Price Close Today : 1663.00
Change : 28.75 or 1.76%

Palladium Price Close Today : 708.00
Change : 19.50 or 2.83%

S&P 500 : 1,365.91
Change : 13.28 or 0.98%

Dow In GOLD$ : $157.13
Change : $ (0.50) or -0.32%

Dow in GOLD oz : 7.601
Change : -0.024 or -0.32%

Dow in SILVER oz : 382.02
Change : -0.70 or -0.18%

Dow Industrial : 12,907.94
Change : 70.61 or 0.55%

US Dollar Index : 79.23
Change : -0.485 or -0.61%

The GOLD PRICE pushed nearly to the crucial resistance at $1,705 with a $1,703.80 high today. Closed below the $1,700 at $1,698.10 on Comex, up $14.80.

Even if the GOLD PRICE climbs to $1,715 it won't convince me that it has completed its correction. Nope, it would have to close ABOVE $1,715, maybe $1,725.

The SILVER PRICE didn't gain as much as gold today, so the GOLD/SILVER RATIO rose from 50.183 to 50.256. That non-confirmation itself jaundices the eye.

Silver added 24.6c to close Comex at 3378.9c. It bounced to 3415c, but resistance at that height wrestled silver back down to that 3378.9. Above 3400c more resistance awaits, stoutly armed, at 3450c.

What if I am wrong? Well, in that alternate universe silver has only corrected back down to and slightly violated that down trend line it broke through in mid-March, and day before yesterday's low just above the 50 DMA played out the oft-seen touchback ("Final Kiss Good-bye") that proves the breakout. Possible, but I can't get into that universe from here. The chart and my suspicion are jamming my de-materializer.

Unlike some folks, I don't mind saying "I told y'all so" especially when it concerns rotten parasites in banking and government. CNBC on 6 March reported "Huge Spike in Repeat Foreclosures." "Thousands of foreclosures that were stuck in process due to delays over the so-called 'Robo-signing' paperwork scandal are working their way through a revamped banking system and heading toward final bank repossession."

When the state attorneys general announced their big compact with the big banks about robo-signing, which the banks signed so they could re-create mortgage documents they lacked for foreclosure, I told y'all that it was a deal of, by, and for the banks. They gave up a piddling $2,000 a head to those they had wronged, and in return got government- encouraged rewriting of mortgages to perfect their bad title. Thus were the mortgagees lured to their doom. Foreclosure surged 28% in January. Only one question remains, Were the attorneys general snookered, or corrupted?

Odd, odd, 5 day gold and Dow charts share a resemblance, so I reckon I am going to have to tell y'all to listen to what I mean, not what I say.

Yesterday I made much of stocks' and gold's and silver's failure to rise above their breakdown points as proof they were in trouble, but today they rose into those areas. Does that disprove my argument? Not in my view. Markets can ease up into that area where they broke down, and still follow through downside. They can even keep on rising above the breakdown, and leave behind a deadly double top, an even surer sign that they will drop more.

Okay, so interpreting a chart is an art. When I paint y'all a picture, I don't always have time to tell you how to wash out the brush.

Start with stocks. On a five day chart they today rose through the 12,850 area I mentioned yesterday. Dow added 70.61 points to close 12,907.94 (0.55%). That's still below the breakdown at 12,950 (exactly), and might become only a double top by reaching for 13,000.

Why would I look for a double top? Context. Background. This break and recovery is played out against an aging (since 1 October 2011) rally, that (2) built into a large, VERY bearish rising wedge. It asketh a whole lot to expect a market that long growing overbought to extend a rally. Add (3), the Dow today closed below its 20 day moving average (12,915.74).

Any way you cut it, it's over for the Dow for a while. S&P500 tagged along, rising 0.98% (13.28) to 1,365.91. Y'all watch: truth is the daughter of time.

The US DOLLAR INDEX lengthened its correction by dropping a meaty 48.5 basis points (0.62%) to 79.227. Dropping below 79.30 was sloppy, and a low at 79.163 looks positively slovenly. But what is the dollar trying to protect? Really just that 79.00 psychological support and the 20 DMA (79.06). It will probably hold and the dollar will resume advancing.

What goosed stocks today and the euro with them? The deadline for the elusive Greek Debt Deal passed with a "majority" of investors signing on. Thus the world waxes again optimistic, until the Deal comes unglued again, as 'twill, and soon. Euro gained 0.92% (big for a currency) to 1.3270. Here's another reason why I wouldn't trade currencies even with your money, because this reaction is wholly irrational. BWDIK? Not a single currency in the world is worth backed by as much as a bus token.

The wave of schizo-optimism pushed traders out of the yen today. It dropped 0.58% to 122.62c/Y100 (Y81.55/US$1). Looks looney. Two gappy reversals in three days. Help.

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.

Enhance Portfolio Returns by Including 10/15% Gold Mining Stocks ? Here?s Why

Posted: 13 Mar 2012 10:22 AM PDT

Gold stocks have historically ranked among some of the most volatile asset classes - about three times that of gold bullion -*but despite this volatility, our research shows that investors can use gold stocks to enhance returns without adding risk to the portfolio. [Let me explain.] Words: 560 So says Frank Holmes ([url]www.usfunds.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.) Who in the world is currently reading this article along with you? Click [COLOR=#0000ff]here[/COLOR] Holmes*goes on to say, in part: Wharton School finance professor Jeffrey Jaffe*presented an academic study back in 1989 that illustrated the effects of portfolio diversification into gold stocks…On the risk side, gold...

Complacency Index hits 45 month low in today's trade

Posted: 13 Mar 2012 10:10 AM PDT

[url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] I like to term the VIX or the CBOE Volatility Index, the Complacency Index, because it is an excellent gauge of whether or not traders are complacent or fearful. The higher the reading, the more fearful or worried they have become. The lower this index reads, the more complacent or careless they generally are. One has to go back a period of 45 MONTHS (June 2007) to find investor psychology at these levels of complacency in regards to the broad stock market as indicated by the S&P 500. I should point out that this was one year prior to the credit meltdown of the summer of 2008. It would currently seem that hardly anyone on the planet is the least bit concerned about the level of the US equity markets due to the enormous amounts of Central Bank supplied liquidity. I intend to keep posting this index at regular periods to keep an eye on this as I believe investors are growing very careless in...

Buy Gold Because a Currency Crisis is Coming

Posted: 13 Mar 2012 10:01 AM PDT

"There is a crisis going on in money that is going to run & run. So there is a good case for being long on gold" the crisis is only really starting.

Keiser Report cites vulnerability of German, Swiss gold reserves

Posted: 13 Mar 2012 09:39 AM PDT

5:40p ET Tuesday, March 13, 2012

Dear Friend of GATA and Gold:

On the latest edition of "The Keiser Report" on the Russia Today network, Max Keiser and Stacy Herbert discuss the growing concern in Germany and Switzerland about the vulnerability of their gold reserves in United States custody. GATA's work is cited. The program is 25 minutes long and it's posted at YouTube here:

http://www.youtube.com/watch?v=GKyFhx9vakY&feature=player_embedded

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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Golden Phoenix Discusses Royalty Mining Growth Strategy
on '21st Century Business' on Fox Business Network

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/