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- Without Greece, The Euro And The S&P 500 Could Soar To New All-Time Highs
- Emerging Market Corporate Bond ETF Launches, Gains In First 2 Days
- Tuesday Options Recap
- Why The Dollar And Stocks Could Start Moving In The Same Direction
- Follow The Cash To Build An Investment Stash
- Austerity - It's The Only Sensible Policy Option Left
- The scientific case for gold
- Platinum above gold ---
- LISTEN: Gerald Celente On GoldSilver Radio
- Mexicos Silver Mines Shine: Mexico Mike Kachanovsky
- Buy Gold Because a Currency Crisis is Coming
- Meyer – ‘Not a Prayer’ of US Hyperinflation
- Ten high-yield stocks growing dividends every year
- Bank of America: The four biggest risks to the bull market in stocks
- "Dr. Doom" Marc Faber: I'm taking the biggest gold position of my life
- Trace Mayer: Four Monetary & Economic Lessons
- GOLD: Because A Currency Crisis Is Coming
- Precious Metals in ‘Wait & See’ Mode Ahead of Fed Decision
- Morning Outlook from the Trade Desk 03/13/12
- Asian trade deficits: prelude to more money printing?
- Gold & Silver Market Morning, March 13 2012
- Links 3/13/12
- Are Investors Still Bullish on Gold?
- Europe is Quiet for Now
- Chris Powell: Gold Now Defends Not Just Liberty...But Simple Reality
- Chris Powell: Gold now defends not just liberty but simple reality
- Please help us get support from mining companies and World Gold Council
- Metals to resume their uptrend imminently, Turk tells King World News
- Is the Banque de France eager to show it still has its gold?
- Gold Resource Corp. to offer dividends in gold and silver coins
| Without Greece, The Euro And The S&P 500 Could Soar To New All-Time Highs Posted: 13 Mar 2012 07:08 AM PDT By Simit Patel: The mess with the euro is very similar to the mess with the British pound, U.S. dollar, and the Japanese yen: there simply is too much debt and it cannot all be repaid. The honest way of dealing with this problem would involve some type of austerity measures to ensure balanced budgets and fiscal responsibility on the part of governments as well as partial cancellation of the outstanding debts. Adding more debt to a debt crisis via bailouts, the policy of choice of monetary authorities around the world, only magnifies the problem over the long run. Since the preferred method of balanced budgets coupled with debt cancellation is not occurring and does not seem to be on the radar, the only other option is to inflate the debt away. Greece cannot do this, however, because its central bank cannot print euros, the currency the debt is denominated in; only the Complete Story » |
| Emerging Market Corporate Bond ETF Launches, Gains In First 2 Days Posted: 13 Mar 2012 06:58 AM PDT By Emerging Money: By Sean Geary A number of debt-focused emerging market exchange traded funds have debuted recently to much fanfare. Last week, WisdomTree debuted its Emerging Markets Corporate Bond Fund (EMCB). This unique, actively-managed fund affords U.S. market participants the opportunity to invest in developing world, dollar-denominated corporate bonds. Although there are plenty of bond ETFs offering exposure to international debt products, EMCB is the first ETF to concentrate solely on corporate debt from emerging markets. Other |
| Posted: 13 Mar 2012 06:38 AM PDT By Frederic Ruffy: SentimentStock market averages opened higher on economic data and then gains were extended after the FOMC rate announcement. Data released before the opening bell showed Retail Sales up 1.1 percent in February and .1 percent more than expected. That, and solid gains across Europe's equity markets, helped set the table for morning strength heading into the Federal Reserve's policy announcement. Trading was choppy when the news hit the wires, but as expected the Fed left rates unchanged and signaled no significant changes to policy. Bonds suffered a beat-down and gold faltered as well. The yellow metal is off $13.3 to $1686.50 an ounce. Crude gained 44 cents to $106.88. JP Morgan (JPM) also helped after announcing a dividend increase and share buyback amid the post-FOMC market rally. The Dow Jones Industrial Average is now up 171 points and near session highs. The NASDAQ gained 41.5 points. With forty-five minutes Complete Story » |
| Why The Dollar And Stocks Could Start Moving In The Same Direction Posted: 13 Mar 2012 06:32 AM PDT By ETF Daily News: The theme of the global financial markets is now moving more toward the realization that growth will be ultra-slow (if not recession like territory), unemployment will remain persistently high and global economic shocks will continue to roll through. This is an important realization. Up until recently, the consensus has been that each economic shock or event along the way has been holding the world back from a return to normalcy - a full recovery. This past week, Europe seems to have dodged another bullet - extending the timeline of Greece and the euro until the next big hurdle, which is a Greek election in April. China revised down its economic growth … and central bankers from Canada and Europe followed the Fed's lead by showing less leaning toward more emergency-like monetary policy. The environment now appears to be shifting for financial markets, for the near term. That shift is away Complete Story » |
| Follow The Cash To Build An Investment Stash Posted: 13 Mar 2012 06:21 AM PDT By Ingrid Hendershot: Seeking to build an investment stash, folks need to decide how to invest their hard-earned cash. There are three broad-based investment categories for investors to consider: fixed-income investments, such as bonds, CD's or U.S. Treasuries; commodities, such as gold; and stocks. In Berkshire Hathaway's (BRK.B) annual letter to shareholders, Warren Buffett cautions investors about investing in fixed-income investments and gold. He says, "Right now bonds should come with a warning label," as inflation erodes current low interest rates, resulting in negative real returns. Gold bullion, of course, provides no income, and Buffett thinks fear over an economic collapse has driven gold prices to bubbly heights. Not surprisingly, Buffett believes stocks will outperform both bonds and gold, explaining, "Berkshire's goal will be to increase its ownership of first-class businesses. Our first choice will be to own them in their entirety -- but we will also be owners by way of holding Complete Story » |
| Austerity - It's The Only Sensible Policy Option Left Posted: 13 Mar 2012 06:21 AM PDT By Jeremy Robson: There is much comment at the moment that austerity is causing more problems than it is solving. Even the word itself is starting to elicit a negative reaction. I am sure that most investors who are long this market would be delighted if austerity were suddenly tarnished as an idea and disappeared as a policy option. This article looks at the policy options available to indebted nations that will allow them to return to sustainable levels of debt and discusses the reasons that I feel that austerity is the only reasonable policy option. It is currently relevant to large parts of Europe, the UK and the U.S. (although to date there has been no problem with debt issuance in either the U.S. or the UK). So first the policy options: Complete Story » |
| Posted: 13 Mar 2012 05:15 AM PDT As far as precious metals are concerned, there's plenty of comment about the bullish case for these metals with reference to economics and politics, but precious (if you'll forgive the pun) little ... |
| Posted: 13 Mar 2012 04:33 AM PDT Been a while, hasn't it? |
| LISTEN: Gerald Celente On GoldSilver Radio Posted: 13 Mar 2012 03:46 AM PDT from WhyGoldAndSilver: ~TVR |
| Mexicos Silver Mines Shine: Mexico Mike Kachanovsky Posted: 13 Mar 2012 02:57 AM PDT |
| Buy Gold Because a Currency Crisis is Coming Posted: 13 Mar 2012 02:48 AM PDT |
| Meyer – ‘Not a Prayer’ of US Hyperinflation Posted: 13 Mar 2012 02:40 AM PDT Former Fed governor Larry Meyer on CNBC's Squawk Box this Tuesday morning: In response to another guest who is planning for high inflation, Mr. Meyer responded: "It's one of the worst investment decisions you could ever make. You'll regret that. Basically what you're saying is you think Bernanke is lying. No, no, no. 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!"
Source: CNBC |
| Ten high-yield stocks growing dividends every year Posted: 13 Mar 2012 01:40 AM PDT From Dividend Growth Stocks: William P. Bengen is an author and a certified financial planner. In 1994, he published a study concluding that if retirees withdrew 4% (the 4% rule) of their nest egg in the first year, and then increased the dollar amount by the inflation rate every year, their savings would easily last 30 years. At the time of the initial study, he assumed the portfolio was held in a tax-deferred account and was evenly split between large-company stocks and U.S. Treasury bonds. In a subsequent study, he revised the withdrawal rate to 4.5%. The higher rate was supported by adding U.S. small-company stocks to the portfolio. This increased the portfolio's potential return, and also increased its volatility. Bengen notes that people who retired in 2000 are of the greatest concern. Since retiring, they have endured two major bear markets. The next five years will be critical for this group. A surge of inflation above its historical average of 3%, could derail the 4% rule for this group. You have to be able to survive worst-case scenarios. There is a better way... Read full article... More on dividends: How to know if you can retire on your dividend portfolio The three big reasons you should build your own dividend-stock portfolio Unique new service could allow you to receive your stock dividends in physical gold |
| Bank of America: The four biggest risks to the bull market in stocks Posted: 13 Mar 2012 01:36 AM PDT From Pragmatic Capitalism: Bank of America has a nice note on the biggest risks to the current bull market and why it's growing increasingly concerned about the potential for a second-half slowdown in the U.S. (via Zero Hedge): Risk #1: Oil prices At this stage, we consider the risk of higher oil prices – due to an escalation of the nuclear stand-off with Iran – as the biggest risk to our outlook between now and the middle of the year. Risk #2: Europe Until the PSI, this was #1. However, clearly important risks remain... Read full article... More on stocks: WARNING: Volatility has collapsed to dangerous levels This could be a fantastic time to buy gold mining stocks How to know if you can retire on your dividend portfolio |
| "Dr. Doom" Marc Faber: I'm taking the biggest gold position of my life Posted: 13 Mar 2012 01:29 AM PDT From Resource Investor: With more than 40 years as an economist to his credit and claiming gold as the "biggest position in my life," Gloom Boom & Doom Report publisher Marc Faber assures us that gold is nowhere near a bubble phase, but cautions that corrections of 40% are not unusual in a bull market. At the end of March, Faber will share his secrets for surviving corrections at the World MoneyShow in Vancouver. In advance of that appearance, he sat down with The Gold Report for this interview, where he discusses his bias for portfolio diversification in terms of geographies as well as asset classes. The Gold Report: After Standard & Poor's (S&P) downgraded a cluster of euro zone countries in January, you came out saying that downgrades should have been even deeper, depending on the country's credit-worthiness. S&P did give below-investment-grade ratings to Portugal and Cyprus – BB and BB+, respectively – but you indicated that... Read full article... More from Marc Faber: "Dr. Doom" Marc Faber: The U.S. government will confiscate gold "Dr. Doom" Marc Faber: World War III will begin in the next five years "Dr. Doom" Marc Faber: Government money printing will create "economic Armageddon" |
| Trace Mayer: Four Monetary & Economic Lessons Posted: 13 Mar 2012 12:32 AM PDT The latest monetary and economic lessons from from Trace Mayer and the RunToGold podcast. Paul Volcker Warning About The Mother Of All Crisis Currently Here How Much Is $700 Billion Of Gold Worth? Why And How The US Treasury Bubble Will Burst Fractional Reserve Banking – Why All Bankers Are Liars And Fraud More @ runtogold.com |
| GOLD: Because A Currency Crisis Is Coming Posted: 13 Mar 2012 12:31 AM PDT TheStreet.com talks with Michael Green about the coming currency crisis. ~TVR |
| Precious Metals in ‘Wait & See’ Mode Ahead of Fed Decision Posted: 13 Mar 2012 12:28 AM PDT Gold prices drifted as low as $1,694 per ounce Tuesday morning in London – 1.3% down on the week so far – while stocks and commodities rose slightly and US Treasuries dipped ahead of today's US Federal Reserve interest rate decision. |
| Morning Outlook from the Trade Desk 03/13/12 Posted: 12 Mar 2012 11:57 PM PDT Platinum was the best trade so far this year. About mid January it was suggested that on a ratio basis buying the white metals against gold would be a trade worth looking at. At that time, platinum was at a $200 discount to gold. Today its at a $5 premium. euphoria about Portugal and better economic numbers out of Germany has pushed equities higher. The Fed speaks today and the stress test for US banks is posted on Thursday. I suspect the Fed will define clearer language today and I believe the language will suggest that they are not firmly convinced that the recovery has legs and will stand ready to assist the markets. taking some risk off the table prior to 2 pm may be warranted, in case the seller from last week still has the star trader on payroll. |
| Asian trade deficits: prelude to more money printing? Posted: 12 Mar 2012 10:45 PM PDT Gold and silver prices slipped lower yesterday, partly perhaps because of bearish Chinese economic statistics, but the more relevant point is simply that these markets are consolidating. Whether or ... |
| Gold & Silver Market Morning, March 13 2012 Posted: 12 Mar 2012 10:00 PM PDT |
| Posted: 12 Mar 2012 09:50 PM PDT Apologies for thin links. I need to turn in early tonight to go to DC tomorrow. And on top of that, Lambert did most of what is here, so thank him! I think his links are on the whole cheerier than mine. Gorilla Reported At Large in Alabama ABC Why It Took So Long to Invent the Wheel Scientific American Viagra Pills Would Need Sex Therapist's Approval in Ohio Bill BusinessWeek Holy Cow! What's Good For You Is Good For Our Planet Annals of Internal Medicine. "Is red meat bad for you? In a word, yes." Darlinghurst Theatre Company is moving to the Eternity Playhouse. OK, I know this is silly, but one of the things that was totally cool about where I lived in Sydney was there was a little theater company a two minute walk from my apartment, and the ticket were cheap, the performances were good to very good, and the theater was itty bitty. Now they've grown up and gone to a big beautiful venue. Germany Fails To Meet Its Own Austerity Goals Der Spiegel The US labour market is still a shambles Joseph Stiglitz FT Rise of the 'maker movement' Al Jazeera Google's moves raise questions about 'don't be evil' motto San Jose Mercury News Silicon Valley's undeserved moral exceptionalism Reuters opinion Fear as death squads hunt Iraq's gays and "emos" Reuters Obama warns against rush for exits in Afghanistan AFP. Sixteen Afghan civilians killed in rogue U.S. attack and Afghans Skeptical Over Shooting Account. Afghans: More than one guy. US: Just the one guy. How it happened: Massacre in Kandahar BBC timeline. So did the one guy bring the fuel to burn the bodies with him in a jerrycan when he walked from the base? And the one guy's home base, Joint Base Lewis-McChord, has had a lot of other problems. –lambert Approval Ratings, Gas Prices and Statistical Noise Nate Silver Times In Obama campaign ad, Bill Clinton praises Osama bin Laden raid Yahoo News 2012 GOP primary shaping up to be cheapest race in years WaPo Specter says Obama ditched him after he provided 60th vote to pass health reform The Hill. Quelle surprise. Government asks judge to approve landmark settlement over banks' foreclosure practices. We don't commit perjury. The little people do. Georgia Joins Other States in Diverting Foreclosure Fund Settlement Money for Non-Housing Purposes and Foreclosure Fraud Settlement Docs Finally Released With Long List of Liability Releases Dave Dayen, Firedoglake How Far Have Home Prices "Really" Fallen? HPI Upcoming Changes; HPI and the CPI Michael Shedlock Whistleblowers drawn by tip-off payouts Financial Times. This is the lead story, and posted the night the Linda Almonte/JP Morgan story breaks, in which the SEC ignored her whistleblower letter. This does not look like a coincidence. Late Night FDL: Pensions Are Good for You Firedoglake (hat tip reader Carol B) Antidote du jour (hat tip Furzy Mouse):
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| Are Investors Still Bullish on Gold? Posted: 12 Mar 2012 09:45 PM PDT According to Bloomberg, hedge funds decreased bets on higher commodity prices for the first time in seven weeks. This comes shortly after China cut its official economic growth forecast to 7.5% this year, the lowest since 2004. |
| Posted: 12 Mar 2012 09:02 PM PDT Below are my comments after a look at the charts as of the end of the day March 8th. Dow Jones Industrial Average: Closed at 12907.94 +70.61 on normal volume and gradually lowering momentum. Price had topped out and sold back dropping under a lower channel line. However, it found new, major support at 12750, a key Dow number. The cycle was a maturing top producing a following sell-off but positive news from Europe and a non-threatening jobs number saved the day. Resistance is 13,000 and support is 12750 with a close above all moving averages. Watch for happy Greek news tomorrow on Friday giving this market a boost. S&P 500 Index: Closed at 1365.91 +13.28 on normal volume and toppy momentum. Resistance is 1375 while new and major support is 1350. Price remains above all moving averages and traders closed the day with a smile finding support from several sources providing a regained confidence Europe was not going to fall apart this week. We can still form a bear head and shoulders top on this trading cycle but if so, the sell-off should be mild, probably dropping to the 50-day moving average at 1326.91. Expect a positive day on Friday with more buying while the index is positioning long next week. S&P 100 Index: Closed at 619.95 +5.52 resisting at 620 and being supported at 614.15 on the 20-day moving average. As price peaked out and began to sell, it fell out of the rising trading channel but has supported on the 20-day moving average. Since it is time to sell on cycles and the calendar, expect a topping action with a smallish head and shoulders correction before new buying can resume. Traders should expect a similar performance from the other indexes as well. However, our leading signal, the Nasdaq, has been gapping-up in new buying, lending further credence to the positive trend. That chart may be double topping as well, however, after being extended a few more days to the long side. A correction is due. Nasdaq 100 Index: Closed at 2637.18 +29.33 with a positive reflection of general market conditions on this up-day Thursday. Support is 2600 and resistance is 2650. Facebook received approval on an $8 Billion line of credit today and with the other positive news, the Nasdaq was rising despite volume being off about -15% of normal. Despite the good trends in stock indexes today, a small correction is due. With three days of rising gaps, this index should do that again tomorrow on Friday and Monday followed by a mild correction beginning on Tuesday next week. We can double top at 2700, or do an overshoot to 2700 before we finally correct. 30-Year Bonds: Closed at 140.69 -1.22 as price travels sideways in choppy trading per our forecast. PMO momentum is flat to sideways but the price is being squeezed in a bearish triangle now trading on 140.00 support to 142.50 resistance. After there is some finality to the Greece credit over the next few days, we can see more buying relief for stocks and new selling for bonds. I would not expect the long bond to sell very much but once the 140.00 hard support is broken, new trading should be found between 138.50 and 139.50. Expect more sideways long bond trading until next Tuesday when they recover a tiny bit. XAU: Closed at 187.89 +2.22 on skidding momentum and a flat metal to shares ratio. The XAU finished a bear double top at the end of February and dropped from near 205 to just below 185 where it found new support. We need some solid gains from gold and silver to move this index and they should begin to support in about 2-5 trading days. Price is under all moving averages with new resistance at 193.83 on the 20-day. All the averages are clustered in the 190's at 193.83, 194.54 and 198.34. Plus, with the price blocked at 205 we have some formidable technical resistance to plow through before new trading daylight is found. Last April, we touched 230 in the first week and nearly matched it again near September 1st. Expect flat channeled sideways trading for the next few days until metals can rise on the new cycle. Gold: Closed at $1700.90 +15.80 on falling momentum, but with new support found at $1665-1675. There is major lower support at $1648.47 on the 200-day moving average. Further, the price range of $1648 to $1655 is also stronger support. The longer view chart pattern is one of selling with lower highs and lower lows since a peak last September. However, we are entering a new cycle of buying that should continue for about six more weeks. A follow-on, secondary rally cycle is possible, but doubtful before the spring sell-off cycle begins. The next few days should produce a mild rally as a minimum on the technicals. Silver: Closed at 33.87 +0.47 behaving with less upside power than gold. Momentum has peaked and is mildly turning lower. Price is under the 20-day average at 34.10 but just above the 50 and 200 day averages. For now, the price appears heavily supported but is once again stuck in that nest of several support and resistance numbers beneath $34.48. Silver is volatile but cannot move much in a new rally until it gets past $34.48 with stronger volume. Price should be flat for about two more trading days at least. US Dollar: Closed at 79.18 -0.52 as the Euro was rising on better news in Europe. The PMO momentum has crossed and picked-up to the bull side. However, the price touched 80.00 and retreated back to the 20-day average on the close. Price remains above the trading channel and is above the 50 and 200 day moving averages. Support is 79.00 with 80.00 resistance. Expect more upside on the Euro and related European news creating a sell in the dollar to between 78.50 and 79.50. Crude Oil: Closed at 106.58 +0.45 on rising but topping momentum. Price touched $110.00 resistance twice and sold back in a modest correction. News has eased from the Middle East taking some steam out of the oil rally, but new buying is forecast after this correction has completed its work. We have solid support at $105-$106 on the 20-day moving average, and the closing price itself. The close is above all moving averages. Trading could stay between $105 and $110 for a few days, but then move more to the long side taking a run at $115 to $120. The price of $115 is the larger upside resistance from an old high last April of 2011. CRB: Closed at 316.04 +1.80 on peaking momentum with good support found on the 50-day moving average at 315.94. The 20-day average is 318.36 and the 200-day 319.18. The moving averages and price are together in a congestion; all within four points. Once crude oil along with metals and grains begins the next rally, we can expect a breakout taking our price above 320. Then, the follow-on buying could take all the averages up to 330 resistance by the end of March, or near the first of April. -Traderrog         This posting includes an audio/video/photo media file: Download Now |
| Chris Powell: Gold Now Defends Not Just Liberty...But Simple Reality Posted: 12 Mar 2012 08:29 PM PDT ¤ Yesterday in Gold and SilverIt was pretty quiet in the gold world yesterday. The day's high came at the London a.m. gold fix at 10:30 a.m. GMT...or 5:30 a.m. Eastern time. The tiny rally attempt at the Comex open ran into the obligatory sell-off at 9:30 a.m....the open of the U.S. equity markets...and the low of the day [$1,691.30 spot] came minutes after 10:30 in New York trading. From that low, gold gained back about fourteen bucks before surrendering a bit of that rally's gain going into the close of electronic trading at 5:15 p.m. Eastern. Gold finished a hair over $1,700 at $1,700.80 spot...down $12.70 from Friday's close. Gross volume was 202,000 contracts, but the net volume was only half of that by the time all the roll-overs out of the April contract were subtracted out.
Silver's price action, as every commentary just relishes pointing out every opportunity they get, was more 'volatile'. When I use the word 'volatile' in that form, it's an euphemism for 'more rigged'. Silver was under pressure right from the open in New York on Sunday night...and hit its Far East low just minutes before 2:00 p.m. Hong Kong time. The subsequent rally took silver to its high of the day which came at precisely 10:30 a.m. in London...the a.m. gold fix. That rally ended the same way as the next two rallies [both in New York] ended... each getting sold down to lower lows on the day. The absolute low [$33.28 spot] came about two minutes before the 1:30 p.m. Comex close. After that, silver made a decent attempt at a rally, but was never allowed to get very far. Silver closed at $33.61 spot...down 71 cents on the day. Net volume was pretty light at around 31,000 contracts...and would have been substantially less than half of that if the high-frequency traders' volumes were removed. Of course, the price would have ended up on the day if they hadn't been around. That's why they're there.
The dollar index didn't do much of anything on Monday...hitting its zenith [such as it was] of 80.12 just minutes before 2:00 p.m. Hong Kong time. Then it slid slowly in fits and starts to its low of the day [such as it was] of 79.84 spot just below the close of trading in New York yesterday afternoon. I doubt very much that the dollar index had any effect on gold and silver prices.
The gold stocks made a serious attempt to break into positive territory during the first ten minutes of trading in New York...but got sold off almost two percentage points by the time gold hit its New York low just minutest after 10:30 a.m. Eastern. Even though the gold price recovered from there, it made little difference to the shares, as they flat-lined for the rest of the day...although the shares did not quite finish on their lows of the day...and the HUI nudged back above the 500 mark at 501.07...down 1.74%.
With silver down 71 cents, the silver stocks got hit as well...and Nick Laird's Silver Sentiment Index closed down 2.60%.
(Click on image to enlarge) The CME Daily Delivery Report was pretty quiet, as only 13 gold and 9 silver contracts were posted for delivery tomorrow. There were not reported changes in GLD yesterday...but an authorized participant withdrew 339,987 troy ounces of silver from SLV yesterday. One thing that I forgot to mention in my Saturday column were the changes in short interest in both GLD and SLV. For the third report in a row, they both showed declines. GLD's short position declined 8.76%...from 11.09 shares to 10.12 million shares held short. SLV's short position declined 16.05%...from 12.55 million shares/ounces down to 10.53 million shares/ounces. Ted Butler was a happy camper. The U.S. Mint had another sales report yesterday. They sold 2,000 ounces of gold eagles...and 320,000 silver eagles. The Comex-approved depositories reported that no silver was added on Friday, but 620,117 troy ounces of silver were withdrawn...all of it out of Scotia Mocatta. The link to that is here. Silver analyst Ted Butler had a few things to say about SLV short selling in his weekend commentary to his paying subscribers. Here are three paragraphs that I've borrowed on this... "You know I've made this SLV short selling as big a deal as possible...and that I am eternally grateful to those of you who took the time to write to SLV's sponsor, BlackRock, to pressure them to help reduce the short position. I've also discussed previously the threatening letter that I received from BlackRock's attorneys back in December and how a subscriber (a European money manager) told me at the time how he felt that was good and how it would work towards reducing the short position. What I didn't tell you about was a brilliant suggestion he made at that time. His suggestion was so brilliant that I felt embarrassed that I wasn't smart enough to think of it on my own. At least, I was smart enough to instantly recognize it as being brilliant. I used his idea in my response to BlackRock's lawyers and I firmly believe it may have been the deciding factor behind the dramatic subsequent decline in the short position of SLV (and GLD)." "Regular readers should know that I am very sensitive about my work being plagiarized by others...and I am also sensitive that I not do that to anyone else. My friend wishes to remain anonymous, so I won't release his name, but I can reveal his observation. He pointed out that the short selling in shares of SLV; in addition to creating shares being issued on an unauthorized basis and resulting in shares not backed by actual metal as required by the prospectus, resulted in something else as well. Any shorted shares would also result in shares being issued in which BlackRock wouldn't collect a management fee (0.5% annually)." "So not only were the shorted shares fraudulent to SLV holders...like my wife...and manipulative to the price of silver; these same shorted shares were depriving BlackRock and its shareholders of income, which I calculated at $5 million for 2011. By cracking down on the shorted shares, BlackRock would be hitting three birds with one stone and, to boot, be doing the right thing as well. That BlackRock and its attorneys saw the wisdom of this and reacted accordingly (by moving to get the short position reduced) is what I think came about. Certainly, the timeline more than supports my conviction. As I said, this was a brilliant suggestion for which silver investors everywhere owe this anonymous money manager a nod of appreciation." Here's a chart courtesy of John Williams over at shadowstats.com that West Virginia reader Elliot Simon sent my way yesterday. It appears that the only credit expansion going on in the economy is in student loans.
(Click on image to enlarge) Reader Scott Pluschau mentioned the potential double bottom pricing pattern on gold on the daily chart...and he put out a post on it. As Scott says, it's not bullish until the neckline breaks. If you would like to read about it, the link is here. Since it's Tuesday, I have more stories that I care to admit. I hope you have time to at least read the 'cut and paste' from each one. Of course, I'm always rooting for 'up'...but always on the lookout for 'in your ear'. Taiwan boasts of gold gains...but promises not to repeat them. Is the Banque de France eager to show it still has its gold? Gold company to offer dividends in gold and silver coins. ¤ Critical ReadsSubscribeThe Fed's Manipulation Of The Market Is Driving Trim Tabs' Charles Biderman "Even More Nuts Than He Already Is"Back in 2009 and 2010, TrimTabs Charles Biderman made waves for being the first person on prime time financial TV to tell it how it is, namely that the Fed is indirectly and directly affecting asset prices. Then he was ostracized. Now, it is not only a given that the Fed does everything in its power to hike stock prices, but is in fact welcome. Indeed, none other than Bob Pisani made point of highlighting that between central bank intervention and kicking the can down the road, the status quo has managed to restore credibility in the system. This 4:29 minute video is posted over at zerohedge.com...and I borrowed it from a GATA release on Saturday. It's a must watch...and the link is here.  An Open Letter to Jamie Dimon: Zero Hedge Guest PostI used to be one of your biggest fans. Back when I was 17 years old working at a Salomon Smith Barney branch in Ft. Lauderdale, you were fired from Citigroup when everyone had you pegged as the heir to Sandy Weill's burgeoning empire. Everyone at the branch was shocked, as we all knew you by reputation as a brilliant CEO-in-the-making, and frankly, most of us were disappointed as we genuinely were all looking forward to working under your leadership one day. Then, the MF Global bankruptcy happened. And, I became aware of your bank's involvement with the firm's collapse. How the New York Times reports that JPMorgan received 325M in segregated customer funds despite the fact that JPMorgan Chase was a primary custodian for them. Then, JPMorgan Chase reportedly failed to return the funds when MF Global reported that they erroneously transferred customer assets and went a step further into "CYA" mode by requesting a comfort letter indicating that JPMorgan Chase had not received customer funds. JPMorgan Chase reportedly did not receive this letter, yet still, it kept customers' property. Through my role as the co-founder of the Commodity Customer Coalition and pro bono counsel for some 8,000+ customers whose property it looks like your institution may be holding without their consent, I have loudly advocated for JPMorgan Chase to return this property. In response to this, rather than doing the right thing, you closed all of my personal and corporate bank accounts and my personal credit card. I have been told by multiple members of the media that JPMorgan Chase has called them and stated that if their media outlet has me on television again, that JPMorgan Chase will pull their advertising from the offending network. The name 'great vampire squid' would equally apply to JPMorgan as well as Goldman Sachs. As you can see, they are crooks on multiple fronts. Reader U.D. sent me this longish zerohedge.com piece on Sunday...and it's worth running through if you have the time. The link is here.  As US Rakes Largest Monthly Deficit In History, 2012 Tax Revenues Net Of Refunds Trail 2011A few days ago we noted that based on preliminary data, the February budget deficit would hit $229 billion (yes, nearly one quarter of a trillion in one month, about where real Greek GDP is these days) - the largest single monthly deficit in history. Unfortunately, this number was low: the final February deficit was just released and the actual print is $231.7 billion. It also means that in the first 5 months of the fiscal year, the US has raked up $580 billion in deficits. This very short zerohedge.com piece contains two very excellent charts...and for that reason alone it's worth checking out. I thank reader Bob Fitzwilson for sharing this story with us...and the link is here.  Deficits Push N.Y. Cities and Counties to DesperationIt was not a good week for New York's cities and counties. On Monday, Rockland County sent a delegation to Albany to ask for the authority to close its widening budget deficit by issuing bonds backed by a sales tax increase. On Tuesday, Suffolk County, one of the largest counties outside New York City, projected a $530 million deficit over a three-year period and declared a financial emergency. Its Long Island neighbor, Nassau County, is already so troubled that a state oversight board seized control of its finances last year. And the city of Yonkers said its finances were in such dire straits that it had drafted Richard Ravitch, the former lieutenant governor, to help chart a way out. This story, out of the Saturday edition of The New York Times, was sent to me by reader Phil Barlett...and the link is here.  New York Sun: Obama in your tankA New York Sun editorial yesterday echoed the point often made by GoldMoney's James Turk -- that gasoline isn't going up in price, but rather the dollar is going down in value, and that the relevant policy isn't energy policy, but monetary policy. This is another item I lifted from a GATA release yesterday...and I thank Chris Powell for wordsmithing the above introductory paragraph...and the nysun.com link is here. |
| Chris Powell: Gold now defends not just liberty but simple reality Posted: 12 Mar 2012 08:29 PM PDT  GATA can't vouch for the data published in the latest edition of Alan M. Newman's financial letter, Crosscurrents, which argues that financial manipulation has become the main pursuit of the United States economy, but he is far from alone in his observations. Commentary about this trend arose around 20 years ago, perhaps first in The New Republic magazine. |
| Please help us get support from mining companies and World Gold Council Posted: 12 Mar 2012 08:29 PM PDT  Now that even some gold fund managers and newsletter writers have started to get suspicious about surreptitious intervention in the gold market by central banks, maybe it's time to try again to get the support of mainstream gold and silver mining companies. Yes, these companies are especially vulnerable if they start complaining about suppression of precious metals prices. Governments, the instigators of the price suppression, control mining licenses, royalty payment requirements, and enforcement of environmental regulations. And as mining is the most capital-intensive business, miners usually need financing by the biggest investment banks, the agents of central banks that implement the price suppression scheme. |
| Metals to resume their uptrend imminently, Turk tells King World News Posted: 12 Mar 2012 08:29 PM PDT  GoldMoney founder and GATA consultant James Turk was his calm old self yesterday, telling King World News that gold and silver will resume their uptrends imminently as the paper shorts give away again. Yes, that may be true, dear reader...but always ask yourself this question as the rally proceeds: who is taking the short side of the long contract that's driving the price higher? If it's JPMorgan et al, the rally will end in the usual way...precisely as it did on February 29th. I thank Chris Powell for the intro...and the link to the KWN blog is here. |
| Is the Banque de France eager to show it still has its gold? Posted: 12 Mar 2012 08:29 PM PDT  After the Netherlands, Switzerland, and Germany, maybe gold suspicion now has struck France, for the Banque de France has just granted a newspaper reporter, Le Figaro's Katia Clarens, a tour of its vast gold vault beneath the streets of Paris, where she discovered many bars of shiny yellow metal, some, perhaps, repatriated from the vault of the Federal Reserve Bank of New York almost a half century ago. (As all true Americans -- revolutionaries and anti-imperialists -- might say, just as was shouted in defiance by the denizens of Rick's Cafe Americain in December 1941: "Vive la France! Vive la democratie!") |
| Gold Resource Corp. to offer dividends in gold and silver coins Posted: 12 Mar 2012 08:29 PM PDT  Gold Resource Corp. is pleased to announce the scheduled launch of its innovative gold and silver dividend program. Gold Resource Corp. is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico. The company has paid 20 consecutive monthly dividends since declaring commercial production totaling over $41 million returned to shareholders. Gold Resource Corp. is scheduled to launch its gold and silver dividend program April 10. The default company dividend will continue to be in cash, but this unique option will give shareholders the ability to convert their cash dividends into physical gold and/or silver. |
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