Gold World News Flash |
- Keiser Report: Unbanked & Unworthy
- Gold Focus is on January Low
- Fleckenstein – Bernanke Dead Wrong About Gold Standard
- 4 Reasons The Bears Are Wrong And More Bubbles Are Coming
- Fleckenstein - Bernanke Dead Wrong About Gold Standard
- Gold Seeker Closing Report: Gold and Silver Fall With Stocks and Oil
- Silver Update: 3/22/12 China Bashers
- Saudi Arabia And China Team Up To Build A Gigantic New Oil Refinery – Is This The Beginning Of The End For The Petrodollar?
- Talking Metals with David Morgan
- Wall Street Journal misses the point about gold twice in one day
- Gold Regulation
- Waterfalls and Rapids
- China and Australia in US$31 billion currency swap
- Slowing Global Growth was the Theme Today
- The Gold Price Lost $7.70 Today the Further Gold Drops the Closer it's Turnaround
- Texas Drought Cost $2 Billion More Than Previously Thought
- Gunning for Gold
- Vulture Bargain #15 Named
- The Shadowy Legend of The Mogambo...
- Gold Daily and Silver Weekly Charts - Welcome to the Jungle
- Gold Outperforms As Stocks Drop and Volume Pops
- Gold Regulation: How Emerging Market Governments are Grappling with Crisis
- The Company We Keep
- Ira Epstein's Weekly Metal Report
- Jeb Handwerger & Jordan Roy-Byrne Explain the Precious Metals Doldrums--03-22-2012
- 6 Bull Market Sectors at Risk of Becoming the Next Big Bubbles
- Catching the "Silver Crusher" Algorithm in the Act
- Mr. Bernanke goes to college
- LGMR: China Contraction Sees Gold Fall Again, "Downtrend Continues" in Silver as G7 Weighs Emergency Action on Oil Price
- Why Gold Can Go the Distance
| Keiser Report: Unbanked & Unworthy Posted: 22 Mar 2012 05:34 PM PDT Watch the full Keiser Report 265 on Thursday. In this episode, Max Keiser and co-host, Stacy Herbert, discuss the great 'unbanked' masses dumping gold believing in a 'recovering economy' and an end to money printing while banks and insiders buy gold and mortgage backed securities in preparation for more quantitative easing by the Fed. In the second half of the show Max talks to Mark Melin of Uncorrelated Investments about MF Global, JP Morgan and the future of the futures market. They also discuss the Charles Manson's of the futures industry and the branch office of the too big too fail banks formerly known as the SEC.
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| Posted: 22 Mar 2012 05:16 PM PDT courtesy of DailyFX.com March 22, 2012 02:40 PM Daily Bars Prepared by Jamie Saettele, CMT In general, the series of lower lows and lower highs since the 2/29 mini crash may be the beginning of a larger decline. The 20 day average crossed below the 50 yesterday and last Wednesday’s large range bar has finally been broken (to the downside). Look lower towards the January low (1600) as long as price is below 1670. Bottom Line (next 5 days) – lower...
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| Fleckenstein – Bernanke Dead Wrong About Gold Standard Posted: 22 Mar 2012 04:31 PM PDT from King World News:
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| 4 Reasons The Bears Are Wrong And More Bubbles Are Coming Posted: 22 Mar 2012 04:27 PM PDT  Bearishness in nominal terms - meaning expectations that broad indices like the S&P 500 (SPY) will decline - continues to be rampant: David Tice is calling for an S&P target of 1,000; John Hussman warns that the market is overbought; David Rosenberg says it's looking like the bear of 2011 all over again.I tend to disagree. I already shared my technical view, in which I expect SPY to reach 182 by 2014, but here's a recap of the four fundamental reasons I think the bull market in equities that has kicked off 2012 is far from over: 1. Like Blackrock's Larry Fink, I think the weakness of the bond market is a major driving factor. It is not so much that equities are such a great opportunity as it is that money has to go somewhere -- and bonds do not look like the right answer. This may be a question bears should spend more time considering: if not stocks, then where? Granted, the "problem" of where to put all their money is not really an issue individual investors/traders like myself face, but for the super-rich and the mega-funds, it's a very real issue. Some will go to gold, some will go to fine art, some will be in cash...but when all the options are considered, I believe more is due to be allocated to stocks, simply because the size of the bond market and its current weakness are driving factors. Read more....... 
This posting includes an audio/video/photo media file: Download Now | |
| Fleckenstein - Bernanke Dead Wrong About Gold Standard Posted: 22 Mar 2012 04:15 PM PDT  Today Bill Fleckenstein, President of Fleckenstein Capital, told King World News that Fed Chairman Bernanke clearly does not understand the business cycle we are in and his comments about the gold standard are wrong. Here is what Fleckenstein had to say about the situation: "When Bernanke speaks or Greenspan speaks, basically I just ignore them because they are the architects of the current problems that we have. The average person has no clue that the root of almost all of these problems we face is irresponsible money printing on the part of the Federal Reserve."
This posting includes an audio/video/photo media file: Download Now | |
| Gold Seeker Closing Report: Gold and Silver Fall With Stocks and Oil Posted: 22 Mar 2012 04:00 PM PDT Gold saw slight gains in Asia before it fell to as low as $1628.00 by about 9:30AM EST, but it then rallied back higher into the close and ended with a loss of just 0.41%. Silver slipped to as low as $31.09 by early afternoon in New York before it also bounced back higher in late trade, but it still ended with a loss of 2.18%.
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| Silver Update: 3/22/12 China Bashers Posted: 22 Mar 2012 03:27 PM PDT | |
| Posted: 22 Mar 2012 03:23 PM PDT from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| Talking Metals with David Morgan Posted: 22 Mar 2012 02:04 PM PDT by Michelle Smith, Business Insider:
SIN: Why is silver better as a monetary metal than other options? DM: This is my opinion, silver's monetary aspects are as good as gold, or perhaps even better, because it's been used more often, more places, for more transactions than gold ever has. It's often said that silver is the poor man's gold. Silver is also the merchant metal in history. When the free market has been able to determine what money is, the free market has gravitated to using silver much more often than gold. SIN: If silver has been the free market choice, why do central banks now focus more on holding gold? Read More @ BusinessInsider.com
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| Wall Street Journal misses the point about gold twice in one day Posted: 22 Mar 2012 02:02 PM PDT 10p ET Thursday, March 22, 2012 Dear Friend of GATA and Gold: Today The Wall Street Journal published two stories about efforts by governments to hinder the acquisition of gold by their people. The first, about Turkey, was dispatched to you earlier: http://www.gata.org/node/11161. The second, about India, is appended. Despite GATA's many hectorings of its reporters, some done in person, the Journal refuses to acknowledge the big underlying story here, the danger to government power that is posed by an independent, competitive, supra-national currency, a currency whose suppression by Western central banks is a matter of long public if largely unreported record. But as always Kitco's Jon Nadler is on speed dial when it's important for journalists to miss the point. "The permanently bullish gold crowd has banked on salvation to come from India," Nadler says, "and what do we do when it's not very active?" No, the permanently bullish crowd is banking on exposure of the massive naked short position in gold that is maintained by the big bullion banks at the behest of Western central banks. But the mainstream financial journalists at the Journal and elsewhere adhere religiously to the Nadler rule of gold market analysis: Never, never, never put a critical or even relevant question to the biggest participants in the market, central bankers. CHRIS POWELL, Secretary/Treasurer * * * Indian Gold: Its Worth and Its Wait By Biman Mukherji, Debiprasad Nayak, and Tatyana Shumsky http://online.wsj.com/article/SB1000142405270230381290457729789152712479... MUMBAI -- The world's biggest gold market is on strike. In India, gold sellers closed up shop last Saturday to protest the government's decision to boost levies on sales of the precious metal. India accounts for more than a quarter of global consumer gold demand. The sudden halt in trading is sending gold prices lower. Gold futures have declined 1% since last Friday, when India's finance ministry issued an order to double the import duty on gold to 4% and instituted a 0.3% tax on most gold-jewelry sales. In India, gold has deep cultural significance: Parents buy it for daughters' weddings, and the metal is given as a gift on some religious holidays. It also is a common vehicle for investment. Buying by Indian consumers is so substantial that any sustained reduction in demand would remove a key pillar of support to gold prices, analysts say. "The permanently bullish gold crowd has banked on salvation to come from India, and what do we do when it's not very active?" said Jon Nadler, senior analyst with Kitco Metals Inc. North America. Gold futures on Thursday fell $7.70 a troy ounce, or 0.5%, to $1,642.30. That brings the losses this month to 4%, although gold still is up for the year. ... Dispatch continues below ... 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 Trade groups estimate about 300,000 proprietors, who employ millions of artisans and clerks, are affected by the tax changes. In a note to clients Tuesday, Standard Bank said "physical buying out of Asia has evaporated" as a result of the shop closures. The protest was initially planned as a three-day action, but industry leaders extended it to Saturday. On Thursday in Mumbai, a few shops reopened temporarily. "If the government doesn't listen to our demands, we may continue," said S.K. Jain, president of New Delhi-based Chandni Chowk Jewellers' Association. The government is seeking to raise revenue to plug a budget shortfall. It also wants to encourage Indians to diversify into other investments, like stocks. In a speech Monday, Indian Finance Secretary R.S. Gujral said domestic savings needs to be directed to more productive assets. Additionally, policy makers increasingly are targeting gold demand -- and imports -- as an easy way to attack the growing current-account deficit, which is weighing on the rupee. The current-account deficit, a measure of a nation's indebtedness to foreign creditors, has been rising as India's gold imports outpace its earnings on exports, raising questions about India's ability to manage its debts. There are early indications the tactic is working. "We had ordered jewelry before the tax hike. But today, when we came to the shop, the jeweler quoted us a higher price," said Shilpa Seth, a 36-year-old housewife, in Mumbai's Zaveri Bazaar gold hub. "So we want to postpone our purchase for the time being." Prithviraj Kothari, president of the Bombay Bullion Association, said the levies could cause India's annual gold demand to fall more than 30%, to 600 tons, and local gold prices could rise. "Imports have almost stopped," Mr. Kothari said. Others say claims of a steep plunge in imports amount to little more than fear mongering. The strike comes at, seasonally, a slow time for imports, as retailers and wholesalers buckle down to reconcile their books for the fiscal year, which ends March 31. The fundamental reason to buy gold in India -- "culture and weddings" -- hasn't changed, said Ajay Mitra, managing director of the World Gold Council for India and the Middle East. He added that, "in the longer term, the tax increase will not substantially affect demand." Some analysts say that if gold prices decline enough, it could offset the taxes, and Indian buyers will re-enter the market. Moreover, savvy gold traders are likely to circumvent the new rules by taking advantage of a loophole that taxes imports from Thailand at a lower rate. While the order to raise taxes already has been issued, it is possible that the Indian government, which has flip-flopped in the past on economic issues, such as cotton exports, could revise the rules so they are more favorable to gold sellers. "While the initial announcement has raised concerns over a drop in demand for gold, we would await the release of the final details before drawing any overly bearish conclusions," wrote Standard Bank analyst Marc Ground. Some jewelers are worried the introduction of the new tax on the gold sold in small shops would add uncertainty over how to comply with the tax code. Until last week, the tax was applicable only on gold jewelry sold by big companies, such as Gitanjali Gems Ltd. or Titan Industries Ltd. "All these taxes could lead to big chaos," said Dinesh Jain, director of the All-India Gems & Jewellry Trade Federation. 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 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...
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| Posted: 22 Mar 2012 01:20 PM PDT Gunning for Gold by Ben Traynor BullionVault Thursday 22 March 2012 Q: What links Turkey, India and Vietnam? A: Weak currencies, trade deficits – and a suspicion that gold is to blame… HERE'S the scenario: a falling currency, a widening trade deficit, and a population buying more and more gold. What's the result? Well, it tends to be an unhappy government – followed by a policy response. We've seen it Vietnam, where central bankers continue to make noises about "mobilizing" the country's privately held gold, having last year handed an effective monopoly to a single refiner (later "administratively acquired" by the central bank). We're seeing it in India, where the government has quadrupled import duties since the start of the year. And we may be about to see it in Turkey where, the Wall Street Journal reports, the government is to publish plans designed to encourage people to deposit their gold bullion with the country's banking sector. One proposal report...
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| Posted: 22 Mar 2012 12:54 PM PDT "A trend is like a river flowing in its banks, around rocks and sharp bends. Occasionally, a river will be stable and flow smoothly. But at other points, it will be hazardous with wild rapids, a deep gorge, even a waterfall or two. The trend is not about measuring the waves in the river because wave analysis is about as valuable as a rear view mirror in a head on collision with a rock. The trend is all about direction, energy and flow." - Trader Garrett - [CENTER][/CENTER] Gold, Silver and the XAU have recently experienced waterfall declines and turbulent rapids. This was due to having both the daily and weekly Trend and Cycle turn down within 2 days of each other at the end of February with the resulting powerful negative effects. These trends continue. Now that we have passed the Ides of March noted here, what is the trend of these rivers? Regrettably, new obstructions have emerged in the river before clear and calmer waters can be enjoyed. [CENTER]Gold and Silver[/CENTER] [...
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| China and Australia in US$31 billion currency swap Posted: 22 Mar 2012 12:35 PM PDT By Simon Rabinovitch and Neil Hume http://www.ft.com/intl/cms/s/0/4b6c4ab6-7404-11e1-bcec-00144feab49a.html China has signed a US$31 billion currency swap agreement with Australia, a step toward boosting the renminbi's profile in developed markets. Beijing has established nearly 20 bilateral swap lines over the past four years, but Australia ranks as the biggest economy yet to sign such a deal, which analysts said could give a shot in the arm to Beijing's goal of internationalising its currency. While central banks normally use swaps to provide liquidity to each other in the event of a financial crisis, China has been using them to lay the groundwork for the renminbi's slow march into global markets. ... 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://www.goldenphoenix.us/company-videos.html Announcing the renminbi 200 billion / A$30 billion (US$31 billion) deal, the Reserve Bank of Australia said: "The main purposes of the swap agreement are to support trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial co-operation." It added that there were "increasing opportunities available to settle trade between the two countries in Chinese renminbi and to make renminbi-denominated investments." China now has more than Rmb 1.5 trillion in swap lines with other central banks, but they have largely been symbolic. Only Hong Kong, the hub of offshore renminbi trading, has had to activate its swap with China, doing so briefly in 2010 when it faced a renminbi squeeze. Nevertheless, the symbolic steps are beginning to add up to something bigger, according to Shen Jianguang, an economist with Mizuho Securities in Hong Kong. "It's quite significant. They haven't had agreements with such advanced economies. This will gain momentum," he said. There has been talk in the market that the Bank of England and the Bank of Japan could soon be in line for currency swaps with China. Building up a global pool of renminbi is proving a challenge for China. The currency is permitted to flow out of the country only through tightly controlled channels, mainly trade. The settlement of trade deals in renminbi grew swiftly from a low base over the past two years, but it has appeared to run out of steam in recent months and offshore renminbi deposits have declined. Some economists say that until China takes bolder steps to open its capital account, allowing freer currency flows across its borders, the project of renminbi internationalisation will not fulfil its promise. China's deal with Australia also underscores the close economic ties between the two countries. China is Australia's biggest trading partner and the main market for its exports of iron, coal, and gas. Figures released by the government on Wednesday showed China had consumed a little more than quarter of Australia's total resource and energy exports in the 2011 financial year. Andrew Skinner, head of global trade and receivables finance at HSBC Australia, said the agreement was a "sensible and logical" progression of Australia's relationship with China. "It's a big step forward in formalising the internationalisation of the renminbi," he said. "It will help a lot of people get more comfortable using the currency knowing that these sorts of arrangements are in place." 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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| Slowing Global Growth was the Theme Today Posted: 22 Mar 2012 10:38 AM PDT [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Overnight news out of China and out of Europe detailing slower than expected growth was the catalyst that served to upset the apple cart of the equity market bulls in today's trading session. It also led to further hedge fund selling of commodities in general with the result that it even took crude oil lower. Copper was clocked for nearly a 2% loss on the trading while Silver was actually down nearly 3% at one time during the session. Silver has broken down below both the 50 day and the 100 day moving averages on the Daily chart as the chart is decidedly bearish in this time frame. The weekly chart shows that since 2009, either the 50 WEEK or the 100 WEEK moving average have served to provide buying support on this time frame. Now that the 50 week has been violated, the next line of support comes in near the 100 week at the $30.15 - $30.00 level. If this does not hold, it will drop back towar...
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| The Gold Price Lost $7.70 Today the Further Gold Drops the Closer it's Turnaround Posted: 22 Mar 2012 10:11 AM PDT Gold Price Close Today : 1642.30 Change : (7.70) or -0.47% Silver Price Close Today : 3131.90 Change : 88.0 cents or -2.73% Gold Silver Ratio Today : 52.438 Change : 1.194 or 2.33% Silver Gold Ratio Today : 0.01907 Change : -0.000444 or -2.28% Platinum Price Close Today : 1617.80 Change : -20.90 or -1.28% Palladium Price Close Today : 651.90 Change : -32.90 or -4.80% S&P 500 : 1,392.78 Change : -10.11 or -0.72% Dow In GOLD$ : $164.21 Change : $ (0.20) or -0.12% Dow in GOLD oz : 7.944 Change : -0.010 or -0.12% Dow in SILVER oz : 416.56 Change : 8.95 or 2.20% Dow Industrial : 13,046.14 Change : -78.48 or -0.60% US Dollar Index : 79.65 Change : 0.008 or 0.01% GOLD PRICE has begun its final descent to a landing. Lost $7.70 today to shutter Comex at $1,642.30, but the low reached $1,628.34. What must we reckon with here? I'm one of those folks who likes to hear the worst first, so I have a feel for the maximum pain that might await me. Right up front, $1,600 jumps off the chart, followed by $1,560. $1,600 might stop it, but today's close took gold through an internal support line that implies -- assuming it falls lower tomorrow -- it must fall further. Just to hedge that call, if the GOLD PRICE touches $1,600 tomorrow, then closes above today's low, I would buy it. SILVER cut through 3180 resistance today and fell as low as 3107c. It recovered enough to close 3131.9c, losing "only" 88c. Now one might behold today's chart and say, "Lookey there! A spikey little bottom!" Indeed, said spike appears, but something argues against that establishing any lower boundary to the move, namely, support really was working at the circa 3150/3160c range, and today's close took the SILVER PRICE beyond that pale. It would have to turn sharply upward tomorrow to contradict that. Otherwise, start reckoning with 3050c, even 3000c. Soon. Yet another witness pointing to lower silver is the GOLD/SILVER RATIO, rising today to 52.438 from yesterday's 51.244. Technically we call that a "right smart higher move." At least, that's what we call it in Tennessee. I don't know what they call it up north. Platinum and palladium were also hammered right hard, not optimistic for the silver and GOLD PRICE. Now before y'all go hide under a galvanized wash tub waiting for your world to end, think a second. The further SILVER and GOLD drop, the closer they are coming to that turnaround. Y'all let everybody else whine and moan and scan the horizon for Planet X and Mayan calendars and stuff like that. Straighten up now, silver and gold are not far from the turning point, so stop flinching. The Yen fulfilled yesterday's promise of a key reversal by adding the second and final ingredient, a higher close today. Y100 closed at 121.18c (Y82.52/US$1), up a seven-league-booted 1.03%. The euro, on the other hand, fell 0.19% to $1.3188. This carries with it the smell of mackerel past its prime, as the euro touched its 50 day moving average and stands below its 20 DMA. A close below 1.3100 will send a large, green, clawed hand up from the swamps below to pull the euro underwater. All this jubilating took place while the US dollar tried to climb out of its trading range, but failed. It traded as high as 79.949, but closed at 79.649 a tee-tiny 8/10 of a basis point higher than yesterday. Still, the dollar index is at least knocking on the door of overhead resistance. No resolution yet, but expectation must be biased downward, along with the trend in progress. Friends and I were talking about Iguaçu Falls today. Two of them had in fact visited the falls, and talked about its several descending levels. Lo, I beheld the Dow's chart the last few days, replete with cataracts flowing down, bouncing up, and falling off again, and I said, "Look! It's Iguaçu!" Have any of y'all ever seen water flow UP hill? At least, water doesn't flow up hill in Tennessee, but maybe in Australia, on the globe's bottom side? Almost all stock indices fell today. Dow fell 78.48 (0.6%) to 13,046.14, parlously close to the 13,000 line. Breaking that point will also break investors' morale and optimism. S&P500 fell 10.11 (0.72%) to 1,392.78, ALREADY below the morale-busting 1,400 line on the board. Did I forget to mention that although the Dow did not close below its 20 DMA (13,033.29) today, it cut into it? Did I leave out that crossing that 20 DMA will begin turning momentum definitively earthward, begging gravity to have its way? 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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| Texas Drought Cost $2 Billion More Than Previously Thought Posted: 22 Mar 2012 09:38 AM PDT Stacy Summary: If you’ll recall, 2011 was a record year for billion dollar weather catastrophes in America. Well 2011 has just been revised upwards. Of the 14 events, one has just been revised up by another $2 billion. Texas Drought … Continue reading
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| Posted: 22 Mar 2012 09:35 AM PDT What links Turkey, India and Vietnam? A: Weak currencies, trade deficits - and a suspicion that gold is to blame... Read More...
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| Posted: 22 Mar 2012 09:21 AM PDT
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| The Shadowy Legend of The Mogambo... Posted: 22 Mar 2012 09:20 AM PDT Hey! It's me, Mogambo! Over here! No, over here! Here! The guy eating the taco! That's me! Hi! Thank you all for your kind comments, although you are doubtlessly aware that admitting to reading the Mogambo Guru, even accidentally, even in passing, even from across the room, even just glancing at it from across a large room, makes me have absolutely no respect for you. At all. I should tell your friends and family about your obvious low standards in reading material so that they could know what kind of person you really, really are and laugh at you, but I won't. All I ask is that you buy gold, silver and oil so that when you are rich as a result of their prices going ballistic because the Federal Reserve is creating so many trillions of dollars, then you can say "I owe it all to the wonderful advice of The Magnificent Mogambo to buy gold, silver and oil when the Federal Reserve was creating so much money and acting so suicidally irresponsible." And when they ask "Who's Mogambo?", you can answer, cryptically, "Who, indeed?" Thus, the shadowy legend of The Mogambo is kept alive. And when they make a movie about it, please make sure that the guy who plays me has great washboard abs, bulging biceps like freaking eggplants, and a handsome face like a young Paul Newman, only more so, if you get my drift. Thanks! The Mogambo owes you one! 
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| Gold Daily and Silver Weekly Charts - Welcome to the Jungle Posted: 22 Mar 2012 09:00 AM PDT | |
| Gold Outperforms As Stocks Drop and Volume Pops Posted: 22 Mar 2012 08:48 AM PDT For the third day in a row, stocks fell, led by the broad high-beta sectors (as one would expect) with energy (suffering as WTI lost almost 2%), materials, industrials, and financials all down notably (with the majors dominating weakness in the financials - though still up significantly post-JPM-divi). Futures and cash volumes picked up from yesterday - nearing their average year-to-date but average trade size fell further equaling the lowest year-to-date. With the China news (and then Europe), it was AUD and JPY that dominated price action as JPY strengthened and AUD weakened leaving the USD tracking the EUR and ending very modestly higher on the day. Commodities faced another day of torment with Silver underperforming. Gold outperformed but was down on the day still as from mid-afternoon, the commodity complex crept higher as the USD stabilized. Broadly speaking risk assets (CONTEXT) led the equity market lower into lunch and then stabilized this afternoon - holding stocks off from further deterioration. An up-day for HYG (the high-yield bond ETF) - seemingly on the back of HY-HYG arbitrage more than asset rotation - and the craziness in the vol complex (VXX vs TVIX) somewhat supported SPY on the day but we note that ES (the S&P 500 e-mini futures contract) was unable to break above its VWAP meaningfully the entire day. Treasuries sold off from early in the US day session but only very marginally as 30Y remains -4bps on the week while the rest of the curve is unch to 1bps lower in yield only. After yesterday's shenanigans with Silver, it remains the biggest loser on the week - and Gold the best performer of the metals/oil complex - though still lower. WTI was a disappointment today as more SPR chatter was a factor but it recovered quickly this afternoon back up almost to $105.50.
The USD remains in a narrow band for the week but the huge divergence between JPY strength (up is USD Strength on the chart) and AUD weakness is evident as carry unwinds and China knock-ons (and Kiwi GDP) gang up to reverse trends for now...
ES, the S&P 500 e-mini futures contract, rallied to VWAP (light blue below) an impressive nine-times today as it tried to escape the clutches of the sell-off and each time - as we would expect volume picked up as institutional sellers were 'allowed' to exit.
The blue line (above) also shows a longer-run CONTEXT from before the Treasury sell-off of last week. The chart below shows the fact that we have recoupled (Green rectangle) from the Treasury-driven-disconnect (orange rectangle) suggests whatever the factor was that drove Treasuries off a brief cliff - has subsided for now.
We wrote earlier on the TVIX-VIX debacle, but it is perhaps noteworthy that short-dated VIX dropped considerably into the close today from 16.5 to 15.5 - though ended the day higher close to close.
Investment grade credit leaked back wider (from its ridiculously rich level relative to its intrinsic underlying fair-value). High-yield underperformed (against stocks and HYG) as we suggested yesterday that the HYG-HY17 arb was back in play (though it is as likely roll-related technicals as there are plenty of rate-related and call-related differences between the yield and spread based products.
Finally, it appears we have once again broken quite a significant uptrend off the Thanksgiving Day start of this rally. As the chart above also shows (based on 135min bars of the day-session of the ES) we also saw an earth-quake in terms of institutional size 'trades' (lower pane is average trade size) as we broke through the trendline this time. Charts: Bloomberg and Capital Context
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| Gold Regulation: How Emerging Market Governments are Grappling with Crisis Posted: 22 Mar 2012 08:28 AM PDT | |
| Posted: 22 Mar 2012 08:02 AM PDT Addison Wiggin – March 22, 2012
On the one hand, it's heartening to see other people corroborate The 5's thesis, first suggested in October, that there's more common ground between the two groups than either would like to admit. On the other hand, the other people in this case are… the Dallas Federal Reserve. "From an economic perspective," says a report by Dallas Fed chief Richard Fisher, "these bailouts are certainly harmful to the efficient workings of the market."
 So much for the reform that was supposed to come with the Dodd-Frank law. "I am of the belief personally that the power of the five largest banks is too concentrated," says Fisher. His solution in light of Dodd-Frank's failure: Break up those banks. The notion that banks should go out of business if they make stupid decisions? That's nowhere to be found in Fisher's 34 pages.
The government Down Under has agreed to a $31 billion currency swap with China. That makes Australia the biggest economy yet among 20 countries now bypassing the greenback in at least some transactions with China. "The main purposes of the swap agreement are to support trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial co-operation," says a statement from the Reserve Bank of Australia. The buzz in currency markets this morning is that the U.K. and Japan might be next to strike deals with China.
It's looking a bit more touch-and-go for Abe Cofnas' mock trade this week. He's counting on the Dow ending the day tomorrow above 12,975. At last check, it's only about 75 points above that number. But if 12,975 holds, it's good for a 19% payout.
Before Fukushima, nuclear provided one-third of Japan's electricity. Now it's 7%. And falling. So Japan is importing as much liquefied natural gas as it can. It's paying through the nose, up to $20 per thousand cubic feet. In the United States, gas currently runs about one-eighth that price. Meanwhile, "you should expect that Japanese demand for diesel and fuel oil will remain strong. Thus, don't expect much relief in oil prices anytime soon. More Japanese demand for oil will help keep oil prices firm, if not rising. You'll see it at the gas pump and in the grocery store, not to mention when you go to buy an airline ticket." "This Japanese aspect of strong oil demand is over and above the strengthening oil demand from a stronger U.S. economy, or any improvement in the eurozone economy or continuing growth in demand from the developing world."
"Prices are firm for uranium due to continuing demand for other reactors worldwide," Byron adds. "Indeed, I expect uranium prices to remain solid and actually increase in the next couple of years — Japan or no!"
In 1866, a miner in Chile snuffed out the stub of his cigarette on a rock. The rock promptly sparkled and burned. He'd come upon caliche ore — the source of nitrate, from which we get fertilizers, and explosives. "All around, for miles and miles, were rich fields of nitrate," says Chris. "The great nitrate boom that created modern Chile was on. Even today, the Chilean desert is an important source of nitrate, iodine, potassium and lithium. It is also home to the world's largest producing copper mine." Chris has researched three U.S.-traded Chilean companies, and likes all of them — with a caveat…
So what's the caveat? "As much as I love these ideas, I simply can't pull the trigger on any of them at these prices." They don't meet the "C" part of Chris' CODE standards. They're not cheap. But "should they stumble, say with a bad quarter or some temporary blip, I would be interested." Chris is presenting some ideas that do meet his standards down here at Rancho Santana this week. It's part of The Rancho Santana Sessions — our intimate gathering for 30 Reserve members interested in giving their precious capital an overseas refuge. Not all the ideas presented here are exotic; you'd be surprised how accessible some of them are. And we're making this information as accessible as possible. You might not be listening in on these sessions in real-time, but you can get the next best thing — recordings of these Sessions. We'll send all interested readers MP3 files of everyone's talk here on or around March 31. Best of all, if you move on this before midnight tonight, you get the best-available price.
"However, if I were writing the amendment, I would have made approval of two-thirds of the states, rather than a simple majority."
"All they can do," adds another, "is force Congress to call a convention for the purposes of amending the Constitution. It does not relate to specific amendment proposals other, perhaps, than to terrify Congress into action. Once you get to a convention, there's no telling what amendments would be proposed, but any of them would, indeed, require the approval of 38 states (three-quarters)."
The 5: "The amendment uses an 'emergency cord' embedded in the Constitution by the Founders," Ralph Benko writes. "Article V allows a supermajority of states to call for constitutional amendments." Ralph points to a recent piece by columnist Rachel Alexander: "In Federalist No. 85," she writes, "Alexander Hamilton explained that states did not need to call for a full constitutional convention since Article V provides full power to amend the Constitution." "James Madison specifically supported the use of Article V in Federalist No. 43. Accusations that an Article V amendments convention will result in a full-blown 'constitutional convention' or 'con-con' are not correct." Concludes Ralph: "Any amendment to the U.S. Constitution must be ratified by 38 state legislatures. State legislators are far more likely to discover that the Article V process is the way to restore constitutional protections dismantled by a power-hungry Congress and a perfervidly imaginative Supreme Court rather than making it a threat to our liberties."
"I still recall how some states did not like the feds insisting they lower the speed limit to 55 in the '70s. The feds threatened to withhold highway funds. We all know how that ended. Sounds like more political posturing to me."
"If he thinks that politics don't have influence on investing and the markets, he is lost for sure. The Republicans and the Democrats have run this nation for over 150 years and run it into the ground, they have. The 5: That's one of the reasons we're here at the ranch this week, exploring overseas alternatives. It doesn't necessarily entail buying overseas real estate… although it doesn't hurt. It can be as simple as finding ways to park some of your IRA assets in overseas investments. It's possible, it's legal and it's easier than you think. What's more, this protective measure is one of dozens we're exploring during The Rancho Santana Sessions. If you're getting itchy about what Uncle Sam has up his sleeve next, you can't afford to miss out on the information being presented here. We have every speaker miked up, and sound techs on duty. You can have recordings of the Sessions in your email inbox only days after they wrap up — in all likelihood, at the end of next week. And best of all, if you act before midnight tonight, you save 20% off the full price. Cheers, Addison Wiggin P.S. "I've picked an exciting biotechnology innovator with a breakthrough drug discovery platform," says Ray Blanco, previewing his new issue. "Mr. Market doesn't seem to appreciate what the company has cooking in its kitchen and has been tough on the company lately. I've been doing some digging into its technology, and I think there is some real value in it." If you've thought about dipping your toe into the world of biotech and high-tech, there's no better way to get started than with Technology Profits Confidential.
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| Ira Epstein's Weekly Metal Report Posted: 22 Mar 2012 07:54 AM PDT At this point in time I don't see reason for gold to rally. Yes, bounces can and will occur, but there isn't reason in terms of chart analysis to get bullish at this time. If anything, in the short term I think the bear side of the market is the place to be.
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| Jeb Handwerger & Jordan Roy-Byrne Explain the Precious Metals Doldrums--03-22-2012 Posted: 22 Mar 2012 07:00 AM PDT Jeb Handwerger and Jordan Roy-Byrne join us for an examination of why the miners and metals are languishing. While there's been a lot of upside in the metals over the past 11 years, the past six months have been trying many investors' patience. Precious metals slam-downs seem to be the rule of the day, and the stocks have not kept up with the metals' price increases. While there are certainly external reasons dealing with metals price supression schemes by governments around the globe, there are also a number of technical reasons why these conditions have arisen. Rather than examine the well known gold/silver manipulations, Jeb and Jordan focused on the technical reasons, which always weigh on the markets. We always need to be aware of the many factors that affect metal prices. Don't forget to go to KerryLutz.com and sign up for an instant free Financial Survival Toolkit and the Weekly Newsletter.
This posting includes an audio/video/photo media file: Download Now | |
| 6 Bull Market Sectors at Risk of Becoming the Next Big Bubbles Posted: 22 Mar 2012 06:42 AM PDT As those familiar with the basics of Austrian economics can attest, an increase in the supply of money and credit [often leads to] asset bubbles in whatever sector(s) the new money and credit find their way into. With the U.S. economy*so robust it will not go down easily and, as such, there is still the possibility that the Fed’s radical inflationary policies will not break the dollar, but just kick the can down the road one more time, and unleash one more bubble before the bill for 40+ years of monetary madness is finally due. What sectors are most likely to be the recipient of a bubble? [Let's look at the possibilities.] Words: 1212 So says Simit Patel ([url]www.informedtrades.com[/url]) in edited excerpts from an article* which Lorimer Wilson, editor of www.munKNEE.com has further edited the article 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. Patel goes ...
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| Catching the "Silver Crusher" Algorithm in the Act Posted: 22 Mar 2012 06:04 AM PDT "That ZeroHedge | On a long enough timeline the survival rate for everyone drops to zero piece should wake you up to the ugly truth about these markets...and how they are managed." ...
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| Posted: 22 Mar 2012 05:59 AM PDT FGMR - Free Gold Money Report March 21, 2012 – Earlier this week Federal Reserve chairman Ben Bernanke gave a lecture to students at George Washington University. It was the first of a four-part series in a course entitled “The Federal Reserve and Its Role in Today’s Economy.” Interestingly, ZeroHedge notes that in his lecture: “The words Gold and Standard appear more times than Central and Bank”. The text of the speech is not yet available on the Fed’s website, but Business Insider provides a summary of it. Not mincing any words, and with its extreme religious devotion to today’s fiat currencies all too apparent, Business Insider enthusiastically exclaimed that Mr. Bernanke “just murdered the gold standard”. Given that sensational headline, I thought it might be useful to present the other side of the story. Here are Business Insider’s comments (in italics) meant to disparage gold, followed by my observation...
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| Posted: 22 Mar 2012 05:58 AM PDT London Gold Market Report from Adrian Ash BullionVault Thurs 22 March, 09:15 EST WHOLESALE bullion fell hard in early London trade on Thursday, with the gold price dipping to nearly its lowest level in 2012 as world stock markets and commodity prices also fell. India's jewelry sector remained on strike in protest at last week's doubling of import duties, and "with physical demand not at full strength and waning investor enthusiasm, the potential for further downside in [the gold price] remains exposed," says today's note from Standard Bank. Silver prices also dropped over 1% in London trade, touching their lowest level against the US Dollar since Jan. 25th at $31.70 per ounce. Worse-than-expected European data was this morning preceded by news that China's manufacturing activity has now contracted for five months running. "Shrinking manufacturing activity in March signals slower demand for resources," notes a column from Thomson-Reuters Breakingviews. "Strong imports hav...
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| Posted: 22 Mar 2012 05:30 AM PDT Gold's been knocked down lately, but several enduring factors have conditioned the yellow metal for an inevitable comeback. Since the beginning of 2012, gold has trailed its precious metals peers, gaining only about 6 percent ... Read More...
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Today Bill Fleckenstein, President of Fleckenstein Capital, told King World News that Fed Chairman Bernanke clearly does not understand the business cycle we are in and his comments about the gold standard are wrong. Here is what Fleckenstein had to say about the situation: "When Bernanke speaks or Greenspan speaks, basically I just ignore them because they are the architects of the current problems that we have. The average person has no clue that the root of almost all of these problems we face is irresponsible money printing on the part of the Federal Reserve."
The largest oil exporter in the Middle East has teamed up with the second largest consumer of oil in the world (China) to build a gigantic new oil refinery and the mainstream media in the United States has barely even noticed it. This mammoth new refinery is scheduled to be fully operational in the Red Sea port city of Yanbu by 2014. Over the past several years, China has sought to aggressively expand trade with Saudi Arabia, and China now actually imports more oil from Saudi Arabia than the United States does. In February, China imported 
David Morgan, founder of the Morgan Report, is often considered an authority on silver, but he considers himself a precious metals aficionado. More than that, he identifies himself as a teacher. Early on, Mr. Morgan put the brakes on our interview to make something clear. "Silver and gold are not my mission statements," he said. "My mission is to teach and empower people to understand the benefits of an honest financial system. What we really need is a system where it is fair, honest, and transparent for everyone involved, from the poorest to the richest, and everyone between."
"Diverse groups ranging from the Occupy Wall Street movement to the Tea Party argue that government-assisted bailouts of reckless financial institutions are sociologically and politically offensive."
The Tea Party/Occupy parallels were incidental to the report's main point: More than half of the banking industry's assets are in the hands of only five "too big to fail" banks — Bank of America, Citi, JP Morgan Chase, Wells Fargo and Goldman Sachs.
Add an unlikely member to the club of countries fleeing the U.S. dollar — Australia.
It's a risk-off day for stocks. The major indexes are adding on to yesterday's losses. Among the numbers in traders' sights today…
Oil's down more than 2% today — perhaps not a big surprise in light of the Chinese and European numbers. A barrel of West Texas Intermediate is back to $105.13.
"One year after the Japanese energy disaster," writes Byron King, "it's clear that we're living in an altered energy reality."
What's more, the fact almost all of Japan's nuclear capacity is offline is having almost no effect on uranium prices. A pound of the stuff has traded between $49-57 for most of the past year. This week it's $51.
Precious metals have been dealt another setback this morning. Spot gold is down a bit to $1,639, and silver is once again getting it in the teeth. At last check, the white metal's down 2%, to $31.50.
"One of the great resource booms of South America began with a man trying to put out his cigarette," says Chris Mayer, shuffling through notes from his recent travels.
"Interesting to read that states are wising up to the national debt," says the first of several emails about the proposed National Debt Relief Amendment.
"The states can only call for a convention," one reader protests. "They cannot propose amendments."
"A constitutional convention," chimes in a third, is a dangerous idea. Remember 1787 in Philadelphia? The Articles of Confederation were thrown out, paving the way for today's democratic tyranny. Its not called a con con without good cause or reason."
"I am wondering how Washington might react," one reader muses about the amendment, "and I imagined the following conversation: 'The States will not authorize raising the debt limit. We are really gonna have to cut spending somewhere this time! If we cut off all the money we send to the States, that should cover it!'"
"The reader who thinks you should stick to true facts and not include political opinion is 100% wrong," writes our final reader, chiming in on a perpetual debate in these virtual pages.| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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