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Monday, April 23, 2012

Gold World News Flash

Gold World News Flash


The Philosophy of Max Keiser, pt. 2: Crash JP Morgan – Buy Silver!

Posted: 22 Apr 2012 04:59 PM PDT

from Silver Vigilante:

The famed Max Keiser, spawn of Karmabanque, Hollywood Stock Exchange, The Silver Liberation Army, Crash JP Morgan Buy Silver, and more has demonstrated a clear development in his thinking over the nearly 10 years of his journalism. Silver Vigilante presents a series called "The Philosophy of Max Keiser," which begins to summarize the episteme of Max Keiser, and how he believes change can be elicited in the casino gulag. This is part 2.

Max Keiser should win the nobel prize for journalism. So should many others who never will because award of the prize is in the hands of elitists. What Keiser does best, besides piercing financial and copyright law analysis, is create memes that stick. One such meme is "Crash JP Morgan – Buy Silver."

Read More @ SilverVigilante.com


John Hathaway – 8 Key Charts, Gold, Fed & The Big Picture

Posted: 22 Apr 2012 04:50 PM PDT

from KingWorldNews:

With gold near the $1,650 level, King World News was given exclusive distribution rights to this outstanding piece which has eight excellent graphs, by superstar John Hathaway of Tocqueville Asset Management L.P.. John is without question one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating by Morningstar.

Read this Exclusive @ KingWorldNews.com


The Best Reason in the World to Buy Gold

Posted: 22 Apr 2012 04:44 PM PDT

by Gordon G. Chang, Forbes.com:

Beijing is planning to avoid U.S. financial sanctions on Iran by paying for oil with gold. China's imports of the metal are already large, and you can guess what additional purchases are going to do to prices.

On the last day of 2011, President Obama signed the National Defense Authorization Act for Fiscal Year 2012. The NDAA, as it is called, attempts to reduce Iran's revenue from the sale of petroleum by imposing sanctions on foreign financial institutions conducting transactions with Iranian financial institutions in connection with those sales. This provision, which essentially cuts off sanctioned institutions from the U.S. financial system, takes effect on June 28.

The NDAA gives the president the power to waive the sanctions depending on the availability and price of supplies from non-Iranian sources. He can also exempt financial institutions from countries that have significantly cut back purchases of Iranian petroleum.

Read More @ Forbes.com


Why America Will Still Lead the World in 2050

Posted: 22 Apr 2012 04:34 PM PDT

What will America be like in 40 years, after it adds another 100 million people? With so much bipartisan handwringing about everything from illegal immigration to environmental degradation, it seems like many are expecting America to collapse before 2050. Enter urban historian Joel Kotkin, who offers a rare and optimistic take on America's future.

Kotkin is the Distinguished Presidential Fellow in Urban Futures at Chapman University and the author of the new book, The Next Hundred Million: America in 2050. Topics include: immigration, suburbia, job creation, why America's demographic trajectory gives it an advantage over its peers. Read more......


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

53 Percent Of All Young College Graduates In America Are Either Unemployed Or Underemployed

Posted: 22 Apr 2012 04:32 PM PDT

from The Economic Collapse Blog:

If you are in college right now, you will most likely either be unemployed or working a job that only requires a high school degree when you graduate. The truth is that the U.S. economy is not coming anywhere close to producing enough jobs for the hordes of new college graduates that are entering the workforce every year. In 2011, 53 percent of all Americans with a bachelor's degree under the age of 25 were either unemployed or underemployed. Millions upon millions of young college graduates feel like the system has totally failed them. They worked hard in school all their lives, they went into huge amounts of debt in order to get the college education that they were told they "must have" in order to get a good job, but after graduation they found that there were only a handful of good jobs for the huge waves of college graduates that were entering the "real world". All over America, college graduates can be found waiting tables, flipping burgers and working behind the register at retail stores. Unfortunately, the employment picture in America is not going to get significantly better any time soon.

Read More @ TheEconomicCollapseBlog.com


Bill Still on the Gold Standard Part 1

Posted: 22 Apr 2012 04:06 PM PDT

Gordon Chang: China will buy gold to pay for Iranian oil

Posted: 22 Apr 2012 02:39 PM PDT

The Best Reason in the World to Buy Gold

By Gordon Chang
Forbes.com
Sunday, April 22, 2012

http://www.forbes.com/sites/gordonchang/2012/04/22/the-best-reason-in-th...

Beijing is planning to avoid U.S. financial sanctions on Iran by paying for oil with gold. China's imports of the metal are already large, and you can guess what additional purchases are going to do to prices.

On the last day of 2011 President Obama signed the National Defense Authorization Act for Fiscal Year 2012. The NDAA, as it is called, attempts to reduce Iran's revenue from the sale of petroleum by imposing sanctions on foreign financial institutions conducting transactions with Iranian financial institutions in connection with those sales. This provision, which essentially cuts off sanctioned institutions from the U.S. financial system, takes effect on June 28.

The NDAA gives the president the power to waive the sanctions depending on the availability and price of supplies from non-Iranian sources. He can also exempt financial institutions from countries that have significantly cut back purchases of Iranian petroleum. Last month the State Department announced waivers for Japan and 10 European countries. China, which has received American waivers in the past under other Iran legislation, is now Tehran's largest oil customer and investor as well as its largest trading partner. Given the new mood in Washington, Beijing cannot count on getting more exceptions in the future.

... Dispatch continues below ...



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

Company Press Release
Friday, March 2, 2012

VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) and Ursa Major Minerals Inc. have signed a binding letter of agreement for a business combination through a proposed all-share transaction. In doing so Prophecy and Ursa have acted at arm's length and the transaction has been negotiated at arm's length.

Prophecy will issue one common share in exchange for every 25 outstanding common shares of Ursa. Ursa options and warrants will be exchanged for options and warrants of Prophecy on an agreed schedule.

Prophecy's offer represents a value of about $0.15 per each common share of Ursa based on Prophecy's share price of $3.70 as at March 1, representing a premium of 130 percent to Ursa's March 1 closing price of $0.065.

Prophecy is to subscribe for $1 million common shares of Ursa by way of private placement financing at $0.06 per share, subject to regulatory approval. Upon placement completion, John Lee and Greg Hall, current Prophecy directors, will be appointed to Ursa's board.

Prophecy thus will become a mid-tier resource company with a robust and diversified pipeline of platinum nickel projects, including:

-- The fully permitted open-pit Shakespeare PGM-Ni-Cu mine close to Sudbury, Ontario, infrastructure with near-term production capabilities.

-- The flagship Wellgreen (Yukon) PGM-Ni-Cu project with more than 10 million ounces of Pt-Pd-Au inferred resource. Drilling is under way and a preliminary economic assessment study is pending.

-- Manitoba's Lynn Lake Ni-Cu project with more than 262 million pounds Ni and 138 million pounds Cu measured and indicated.

For the complete announcement, please visit Prophecy Platinum's Internet site here:

http://www.prophecyplat.com/news_2012_mar02_prophecy_platinum_ursa_major...



As The Wall Street Journal noted in early January, the sanctions are "an attempt to force other countries to choose between buying oil from Iran or being blocked from any dealings with the U.S. economy." The strict measures put Chinese officials in a bind. They apparently believe their geopolitical interests align with those of Tehran, but their economy is becoming increasingly reliant on America's.

So how can Beijing keep both Iran's ayatollahs and President Obama happy at the same time?

Simple, the Chinese can avoid the U.S. sanctions through barter. China has already been trading its produce for Iran's petroleum, but there is only so much gai lan and bok choy the Iranians can eat. That's why Iran is also accepting, among other goods, Chinese washing machines, refrigerators, toys, clothes, cosmetics, and toiletries.

The barter trade works, but Iran needs cash too. As it is being cut off from the global financial system, the next best thing is gold. So we should not be surprised that in late February the Iranian central bank said it would accept that metal as payment for oil. Last year China imported $21.7 billion in Iranian oil and exported $14.8 billion in goods and services. As the NDAA goes into effect, look for Beijing to ship gold to Iran to make up the difference.

Gold bugs, however, shouldn't get too happy about Iran's plight. There are five principal factors that will depress anticipated demand for gold used to buy Iranian oil. First, other countries will also be bartering agricultural and manufactured goods. Russia and Pakistan, for instance, will undoubtedly continue wheat-for-petroleum arrangements.

Second, Tehran, out of apparent desperation, in February said it would also accept local currencies, thereby avoiding the U.S. financial system. As a result the Indians announced in January that they would not request a waiver from the Obama administration, and they began opening rupee accounts to pay for as much as 45% of their oil purchases with their currency. In 2011 India exported only $2.7 billion to Iran while buying $9.5 billion in oil. Similarly, the Chinese, smelling blood in the water, will surely press the Iranians to accept the non-convertible renminbi.

Third, the result of sanctions is that Iran's oil exports could be cut by as much as 700,000 barrels a day. China, for instance, is increasing its oil purchases from Saudi Arabia, its largest foreign supplier. The Chinese are also buying more from the Persian Gulf emirates as well as Vietnam, Russia, and Africa. Of course, every drop of other crude decreases China's demand for Iran's.

Fourth, China and other countries are taking advantage of Iran's plight by negotiating large price reductions.

Fifth, if the Iranians are willing to accept wheat and non-tradable currencies in payment for oil, there is nothing to say they won't start agreeing to silver too.

But nothing shines like gold. And there is one other reason to be bullish on the yellow metal. "This isn't the end of the road," noted an unnamed senior administration official to The Wall Street Journal days after the enactment of the NDAA. "There are many other sanctions we can put in place and that our multilateral partners around the world can put in place and will." As Washington tightens financial measures against Iran, the mullahs will have less access to hard currency and therefore more need for gold.

Unless, of course, they want to accumulate more Chinese washing machines.

* * *

Join GATA here:

Las Vegas Money Show
Caesar's Palace, Las Vegas
Monday-Thursday, May 14-17, 2012
http://www.moneyshow.com/tradeshow/las_vegas/moneyshow/

Committee for Monetary Research and Education
Spring Dinner Meeting
"Money and the Corporate State"
Union League Club, New York, N.Y.
Thursday, May 17, 2012
http://www.cmre.org/

Vancouver World Resource Investment Conference
Sunday-Monday, June 3-4, 2012
Vancouver Convention Centre East
Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/world-resource-investment-conference

Standard Chartered's Earth Resources Conference
Wednesday-Thursday, June 20-21, 2012
J.W. Marriott, Hong Kong
http://www.standardcharteredsignatureevents.com/earths-resources/welcome...

Hong Kong Gold Investment Forum
Monday-Wednesday, June 25-27, 2012
Renaissance Harbour View Hotel, Hong Kong
http://www.hkgoldinvestmentforum.com/

New Orleans Investment Conference
Wednesday-Saturday, October 24-27, 2012
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
http://www.neworleansconference.com/

* * *

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

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

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



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

From a Company Press Release
November 22, 2011

VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling.

"We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company."

Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered.

For the company's complete press release, please visit:

http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf



Got Gold Report - Special Email Update for April 21, 2012

Posted: 22 Apr 2012 02:22 PM PDT

Vultures please log in to the Subscriber pages to view an important new Got Gold Report released today, Sunday, April 22.  We discuss the gold, silver and mining shares markets in the context of the ongoing buyer's strike for the smaller, more speculative issues and what we are doing with them in the current environment.

To continue reading, please log in or click here to subscribe to a Got Gold Report Membership

 


Customers of MF Global Holdings Ltd. are pushing regulators to get tougher on J.P. Morgan Chase & Co. about money that went missing from accounts just before the firm’s collapse.

Posted: 22 Apr 2012 01:59 PM PDT

MF Customers Press J.P. Morgan for Funds


Future Money Trends interviews GATA Chairman Bill Murphy

Posted: 22 Apr 2012 01:37 PM PDT

9:35p ET Sunday, April 22, 2012

Dear Friend of GATA and Gold:

Interviewed by Dan Ameduri of Future Money Trends, GATA Chairman Bill Murphy explains how the gold and silver price suppression scheme works and what GATA is doing to fight it. The interview is 12 minutes long and you can listen to it at the Future Money Trends Internet site here:

http://futuremoneytrends.com/index.php/category-table/170-bill-murphy-po...

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



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

Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project.

"21st Century Business" has been airing for 15 years. Previous hosts have included Gen. Alexander Haig, Gen.l Norman Schwarzkopf, and Secretary of Defense Caspar Weinberger. Golden Phoenix appeared as paid programming on this broadcast.

To view the program with Golden Phoenix, please visit Golden Phoenix's Internet site here:

http://www.goldenphoenix.us/company-videos.html



Join GATA here:

Las Vegas Money Show
Caesar's Palace, Las Vegas
Monday-Thursday, May 14-17, 2012
http://www.moneyshow.com/tradeshow/las_vegas/moneyshow/

Committee for Monetary Research and Education
Spring Dinner Meeting
"Money and the Corporate State"
Union League Club, New York, N.Y.
Thursday, May 17, 2012
http://www.cmre.org/

Vancouver World Resource Investment Conference
Sunday-Monday, June 3-4, 2012
Vancouver Convention Centre East
Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/world-resource-investment-conference

Standard Chartered's Earth Resources Conference
Wednesday-Thursday, June 20-21, 2012
J.W. Marriott, Hong Kong
http://www.standardcharteredsignatureevents.com/earths-resources/welcome...

Hong Kong Gold Investment Forum
Monday-Wednesday, June 25-27, 2012
Renaissance Harbour View Hotel, Hong Kong
http://www.hkgoldinvestmentforum.com/

New Orleans Investment Conference
Wednesday-Saturday, October 24-27, 2012
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
http://www.neworleansconference.com/

* * *

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

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

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



ADVERTISEMENT

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

Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada.

Check out the exploration program on our Allco gold/silver project :

-- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit.

-- The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries.

-- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited.

To learn more about the Allco property or Northaven's other gold and silver projects, please visit:

http://www.northavenresources.com

Or call Northaven CEO Allen Leschert at 604-696-3600.



John Hathaway: Gold's next move up will ignite mining shares

Posted: 22 Apr 2012 01:32 PM PDT

9:30p ET Sunday, April 22, 2012

Dear Friend of GATA and Gold:

Tocqueville Gold Fund manager John Hathaway, writing at King World News, says gold's move to new highs this year will be the spark to rouse gold mining shares from their long torpor.

"Monetary policy has been boxed in by previous actions, election year politics (and even more broadly by the dynamics of the contemporary state of democracy), and the slowdown in global foreign exchange accumulation," Hathaway writes. "The result, we expect, will be a continuation of financial repression under the most optimistic of scenarios. At the very least returns on liquid capital could remain negative for many years to come. Under such circumstances, demand for the protection offered by gold should remain strong. Should the presumed economic recovery falter, we anticipate that the calls for renewed quantitative easing will be deafening."

Hathaway's commentary is headlined "8 Key Charts, Gold, the Fed, and the Big Picture" and it's posted at the King World News blog here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/22_Jo...

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



ADVERTISEMENT

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

Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada.

Check out the exploration program on our Allco gold/silver project :

-- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit.

-- The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries.

-- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited.

To learn more about the Allco property or Northaven's other gold and silver projects, please visit:

http://www.northavenresources.com

Or call Northaven CEO Allen Leschert at 604-696-3600.



Join GATA here:

Las Vegas Money Show
Caesar's Palace, Las Vegas
Monday-Thursday, May 14-17, 2012
http://www.moneyshow.com/tradeshow/las_vegas/moneyshow/

Committee for Monetary Research and Education
Spring Dinner Meeting
"Money and the Corporate State"
Union League Club, New York, N.Y.
Thursday, May 17, 2012
http://www.cmre.org/

Vancouver World Resource Investment Conference
Sunday-Monday, June 3-4, 2012
Vancouver Convention Centre East
Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/world-resource-investment-conference

Standard Chartered's Earth Resources Conference
Wednesday-Thursday, June 20-21, 2012
J.W. Marriott, Hong Kong
http://www.standardcharteredsignatureevents.com/earths-resources/welcome...

Hong Kong Gold Investment Forum
Monday-Wednesday, June 25-27, 2012
Renaissance Harbour View Hotel, Hong Kong
http://www.hkgoldinvestmentforum.com/

New Orleans Investment Conference
Wednesday-Saturday, October 24-27, 2012
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
http://www.neworleansconference.com/

* * *

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

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

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



ADVERTISEMENT

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

Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project.

"21st Century Business" has been airing for 15 years. Previous hosts have included Gen. Alexander Haig, Gen.l Norman Schwarzkopf, and Secretary of Defense Caspar Weinberger. Golden Phoenix appeared as paid programming on this broadcast.

To view the program with Golden Phoenix, please visit Golden Phoenix's Internet site here:

http://www.goldenphoenix.us/company-videos.html



Bill Murphy Pounding Away at the Gold Cartel!

Posted: 22 Apr 2012 01:04 PM PDT

James Turk: Gold Stocks Are Making History ? Here?s Why

Posted: 22 Apr 2012 12:55 PM PDT

We're making history here. Gold stocks have never been this undervalued before. We've had a 12 year bull market in gold, but we've also had a 15 year bear market in the mining shares…It's very rare in market history to see an outlier like this. This is an extraordinary event. Years from now we are going to look back and shake our heads in disbelief at how undervalued gold stocks were in 2012. So says*James Turk*in edited excerpts from a [COLOR=#0000ff]King World News interview[/COLOR], as provided by Lorimer wilson, editor of www.munKNEE.com (Your Key to Making Money!). This paragraph must be included in its entirety in any re-posting to avoid copyright infringement. Turk*goes on to say, in part [the interview can be read in its entirety here]: It is important to remember that before this is over, the mining shares will be trading like internet stocks. Quality gold shares will be the Apple Computer's of tomorrow. [INDENT][COLOR=#ff0000]Daily Delivery Available! If you enj...


In The News Today

Posted: 22 Apr 2012 10:23 AM PDT

Jim Sinclair's Commentary

This is a scenario that you need to know about because it cannot be wholly discounted as a possibility.

Harvey Organ: Get Physical Gold & Silver! Friday, April 20, 2012, 6:10 pm, by Adam Taggart

Harvey Organ has been analyzing the bullion markets closely for decades. The quality and accuracy of

Continue reading In The News Today


This Past Week in Gold

Posted: 22 Apr 2012 10:20 AM PDT

Summary: Long term - on major sell signal. Short term - on mixed signals. Gold cycle is now at levels of previous bottoms. However we are on major sell signal, therefore, new positions can be considered for trading and not long term holdings. Read More...



Gold Stocks Continue to Underperform Gold

Posted: 22 Apr 2012 09:18 AM PDT

I have written (and warned my readers) several times about the weak performance of the HUI index compared to the price of Gold.
Despite general stock markets approaching pre-crisis highs and Gold holding up quite well so far, the HUI index has dropped quite substantially. The combination of weak performance of HUI stocks and the relatively "strong" action of Gold, caused the HUI index to underperform Gold dramatically.


Chart courtesy stockcharts.com

I have often compared the underperformance of the HUI index relative to Gold to the situation in 2008, right before the "big crash".
Here it is once again:


Chart courtesy stockcharts.com

Now let's suppose the pattern above takes place. How could we get there?
1) a severe market crash, just like in 2008;
2) a big drop in Gold prices, which would most likely lead to an even bigger decline in Gold stocks; OR
3)  a HUGE rally in Gold prices.
How could that be? Well, in the late 1970′s, Gold rallied substantially, causing everybody to believe that those high Gold prices (and therefore mining companies' margins) were not sustainable. They bought Gold bullion while they ignored the mining stocks.
Once it appeared clear that the high Gold prices WERE in fact sustainable, the Gold Stocks rallied. They even rallied to new highs AFTER the Gold price peaked in early 1980!

We might be in a similar situation today. Nobody wants the mining stocks. If Gold would rally to new highs, it could be on its way to $4,000-$5,000. Could it be that most people now think that those Gold Prices ($1,650 per ounce) are not sustainable?
What if Gold suddenly rallies to $4,000? Then suddenly everybody will start to chase stocks of the Gold Miners.

On the other hand, here's another interesting chart, showing the BGMI-to-Gold (BGMI = Barron's Gold Mining Index) from 1967 to 1980 (blue line) and the HUI-to-Gold ratio from 1993 until today. If this pattern continues, it could mean that the underperformance of the Gold Stocks is about to end.

However, it could therefore also imply that the top for Gold is set.
I definitely know that the Fundamentals for higher Gold Prices are there (think of all the money printing etc), but have a look at the following chart from James Paulsen, Chief Invest­ment Strate­gist at Wells Cap­i­tal Man­age­ment (Wells Fargo) recently shared:
Gold does look expensive based on these charts, doesn't it?

For more articles, analyses & trading updates, please visit www.profitimes.com


John Hathaway - 8 Key Charts, Gold, Fed & The Big Picture

Posted: 22 Apr 2012 09:10 AM PDT

With gold near the $1,650 level, King World News was given exclusive distribution rights to this outstanding piece which has eight excellent graphs, by superstar John Hathaway of Tocqueville Asset Management L.P.. John is without question one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating by Morningstar.


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

“500 dollar silver” hit number 4 on Google’s “hot searches” on November 18 2010

Posted: 22 Apr 2012 05:46 AM PDT

The Philosophy of Max Keiser, pt. 2: Crash JP Morgan – Buy Silver!


Flashback from 1975: “The NSA's Capability ... Could Enable It To Impose Total Tyranny, And There Would Be No Way To Fight Back

Posted: 22 Apr 2012 05:09 AM PDT

Senator Church’s Prophetic Warning

Senator Frank Church – who chaired the famous “Church Committee” into the unlawful FBI Cointel program, and who chaired the Senate Foreign Relations Committee – said in 1975:

“Th[e National Security Agency's]  capability at any time could be turned around on the American people, and no American would have any privacy left, such is the capability to monitor everything: telephone conversations, telegrams, it doesn’t matter. There would be no place to hide.  [If a dictator ever took over, the N.S.A.] could enable it to impose total tyranny, and there would be no way to fight back.

Now, the NSA is building a $2 billion dollar facility in Utah which will use the world’s most powerful supercomputer to monitor virtually all phone calls, emails, internet usage, purchases and rentals, break all encryption, and then store everyone’s data permanently.

The former head of the program for the NSA recently held his thumb and forefinger close together, and said:

We are, like, that far from a turnkey totalitarian state

So Senator Church’s warning was prophetic.

Spying Began Before 9/11

While you might assume that the NSA’s spying on Americans is a response to 9/11, the government’s illegal spying on Americans actually began before 9/11.

Bloomberg reported in 2006:

The U.S. National Security Agency asked AT&T Inc. to help it set up a domestic call monitoring site seven months before the Sept. 11, 2001 attacks, lawyers claimed June 23 in court papers filed in New York federal court.

 

“The Bush Administration asserted this became necessary after 9/11,” plaintiff’s lawyer Carl Mayer said in a telephone interview. “This undermines that assertion.”

 

“The U.S. Department of Justice has stated that AT&T may neither confirm nor deny AT&T’s participation in the alleged NSA program because doing so would cause `exceptionally grave harm to national security’ and would violate both civil and criminal statutes,” AT&T spokesman Dave Pacholczyk said in an e-mail.

 

U.S. Department of Justice spokesman Charles Miller and NSA spokesman Don Weber declined to comment.

And see this and this.

In other words, the NSA’s trashing of the constitutional rights of American citizens had nothing to do with 9/11.

NSA Heard the 9/11 Hijackers’ Plans from Their Own Mouths … But Didn’t Stop Them

Indeed, the NSA was listening in on the 9/11 hijackers’ phone calls before 9/11, but didn’t do a whole lot to stop them:

  • The National Security Agency and the FBI were each independently listening in on the phone calls between the supposed mastermind of the attacks and the lead hijacker. Indeed, the FBI built its own antenna in Madagascar specifically to listen in on the  mastermind’s phone calls
  • According to various sources, on the day before 9/11, the mastermind told the lead hijacker “tomorrow is zero hour” and gave final approval for the attacks. The NSA intercepted the message that day and the FBI was likely also monitoring the mastermind’s phone calls
  • According to the Sunday Herald, two days before 9/11, Bin Laden called his stepmother and told her “In two days, you’re going to hear big news and you’re not going to hear from me for a while.” U.S. officials later told CNN that “in recent years they’ve been able to monitor some of Bin Laden’s telephone communications with his [step]mother. Bin Laden at the time was using a satellite telephone, and the signals were intercepted and sometimes recorded.” Indeed, before 9/11, to impress important visitors, NSA analysts would occasionally play audio tapes of bin Laden talking to his stepmother.
  • And according to CBS News, at 9:53 a.m on 9/11, just 15 minutes after the hijacked plane had hit the Pentagon, “the National Security Agency, which monitors communications worldwide, intercepted a phone call from one of Osama bin Laden’s operatives in Afghanistan to a phone number in the former
    Soviet Republic of Georgia”, and secretary of Defense Rumsfeld learned about the intercepted phone call in real-time (if the NSA monitored and transcribed phone calls in real-time on 9/11, that implies that it probably did so in the months leading up to 9/11 as well)

As we reported in 2008, the NSA even monitored the hijackers within the United States:

We’ve previously pointed out that the U.S. government heard the 9/11 plans from the hijackers’ own mouth. Most of what we wrote about involved the NSA and other intelligence services tapping top Al Qaeda operatives’ phone calls outside the U.S.

 

However, as leading NSA expert James Bamford - the Washington  Investigative Producer for ABC’s World News Tonight with Peter Jennings for almost a decade, winner of a number of journalism awards for coverage national security issues, whose articles have appeared in dozens of publications, including cover stories for the New York Times Magazine, Washington Post Magazine, and the Los Angeles Times Magazine, and the only author to write any books (he wrote 3) on the NSA – reports, the NSA was also tapping the hijackers’ phone calls inside the U.S.

 

Specifically, hijackers Khalid al-Mihdhar and Nawaf al-Hazmi lived in San Diego, California, for 2 years before 9/11. Numerous phone calls between al-Mihdhar and Nawaf al-Hazmi in San Diego and a high-level Al Qaeda operations base in Yemen were made in those 2 years.

 

The NSA had been tapping and eavesdropping on all calls made from that Yemen phone for years. So NSA recorded all of these phone calls.

 

Indeed, the CIA knew as far back as 1999 that al-Mihdhar was coming to the U.S. Specifically, in 1999, CIA operatives tailing al-Mihdha in Kuala Lumpur, Malaysia, obtained a copy of his passport. It contained visas for both Malaysia and the U.S., so they knew it was likely he would go from Kuala Lumpur to America.

ABC News reported in 2002:

Shortly before Sept. 11, NSA intercepts detected multiple phone calls from Abu Zubaida, bin Laden’s chief of  operations, to the United States. The intercepts were never passed on.

And Raw Story wrote in 2008:

Author James Bamford looked into the performance of the NSA … and found that it had been closely monitoring the 9/11 hijackers as they moved freely around the United States and communicated with Osama bin Laden’s operations center in Yemen. The NSA had even tapped bin Laden’s satellite phone, starting in 1996.

 

“The NSA never alerted any other agency that the terrorists were in the United States and moving across the country towards Washington,”  Bamford told PBS.

 

PBS also found that “the 9/11 Commission never looked closely into NSA’s role in the broad intelligence breakdown behind the World Trade Center and Pentagon attacks. If they had, they would have understood the full extent to which the agency had major pieces of the puzzle but never put them together or disclosed their entire body of knowledge to the CIA and the FBI.”

 

In a review of Bamford’s book, former senator and 9/11 Commission member Bob Kerrey wrote, “As the 9/11 Commission later established, U.S. intelligence officials knew that al-Qaeda had held a  planning meeting in Malaysia, found out the names of two recruits who had been present — Khalid al-Mihdhar and Nawaf al-Hazmi — and suspected that one and maybe both of them had flown to Los Angeles. Bamford reveals that the NSA had been eavesdropping for months on their calls to Yemen, yet the agency ‘never made the effort’ to trace where the calls originated. ‘At any time, had the FBI been notified, they could have found Hazmi in a matter of seconds.’”

 

Former CIA analyst Michael Scheuer told PBS, “None of this information that we’re speaking about this evening’s in the 9/11 Commission report. They simply ignored all of it.”

Spying Unrelated to Keeping Us Safe

As we’ve previously documented, the spying isn’t being done to keep us safe … but to crush dissent

and to help the too big to fail businesses compete against smaller businesses (and here).

Indeed, the NSA monitoring efforts will not focus on spying on potential terrorists – or even criminal activity – but in recording every phone call, email, internet search or other communication in the country.

Not Just the NSA: Other Agencies and Shady Foreign Groups Spying on Americans As Well

It’s not just the NSA.

As Nat Hentoff writes:

Thirty years after Church’s principled stand, the Washington Post reported that the NSA had already been  enlisting other intelligence
agencies
to assist its surveillance of “people inside the country suspected of having terrorist connections” (“Bush Authorized Domestic Spying,” Dan Eggen, Dec. 16, 2005).

On what basis? That’s classified.

And Bamford reports that shady companies with ties to Israel are wiretapping Americans for the NSA:

One of the [National Security] agency’s biggest secrets is just how careless it is with that ocean of very private and very personal communications, much of it to and from Americans. Increasingly, obscure and questionable contractors — not government employees — install the taps, run the agency’s eavesdropping infrastructure, and do the listening and analysis.

 

And with some of the key companies building the U.S.’s surveillance infrastructure for the digital age employing unstable employees, crooked executives, and having troubling ties to foreign intelligence services, it’s not clear that Americans should trust the secretive agency ….

 

***

 

Secretive contractors with questionable histories and little oversight were also used to do the actual bugging of the entire U.S. telecommunications network.

According to a former Verizon employee briefed on the program, Verint, owned by Comverse Technology, taps the communication lines at Verizon, which I first reported in my book The Shadow Factory in 2008. Verint did not return a call seeking comment, while Verizon said it does not comment on such matters.

At AT&T the wiretapping rooms are powered by software and hardware from Narus, now owned by Boeing, a discovery made by AT&T whistleblower Mark Klein in 2004. Narus did not return a call seeking comment.

What is especially troubling is that both companies have had extensive ties to Israel, as well as links to that country’s intelligence service, a country with a long and aggressive history of spying on the U.S.

In fact, according to Binney, the advanced analytical and data mining software the NSA had developed for both its worldwide and international eavesdropping operations was secretly passed to Israel by a mid-level employee, apparently with close connections to the country. The employee, a technical director in the Operations Directorate, “who was a very strong supporter of Israel,” said Binney, “gave, unbeknownst to us, he gave the software that we had, doing these fast rates, to the Israelis.”

Because of his position, it was something Binney should have been alerted to, but wasn’t.

 

“In addition to being the technical director,” he said, “I was the chair of the TAP, it’s the Technical Advisory Panel, the foreign relations council. We’re supposed to know what all these foreign countries, technically what they’re doing…. They didn’t do this that way, it was under the table.” After discovering the secret transfer of the technology, Binney argued that the agency simply pass it to them officially, and in that way get something in return, such as access to communications terminals. “So we gave it to them for switches,” he said.

“For access.”

But Binney now suspects that Israeli intelligence in turn passed the technology on to Israeli companies who operate in countries around the world, including the U.S. In return, the companies could act as extensions of Israeli intelligence and pass critical military, economic and diplomatic information back to them. “And then five years later, four or five years later, you see a Narus device,” he said. “I think there’s a connection there, we don’t know for sure.”

Narus was formed in Israel in November 1997 by six Israelis with much of its money coming from Walden Israel, an Israeli venture capital company. Its founder and
former chairman, Ori Cohen, once told Israel’s Fortune Magazine that his partners have done technology work for Israeli intelligence. And among the five founders was Stanislav Khirman, a husky, bearded Russian who had previously worked for Elta Systems, Inc. A division of Israel Aerospace Industries, Ltd., Elta specializes in developing advanced eavesdropping systems for Israeli defense and intelligence organizations. At Narus, Khirman became the chief technology officer.

A few years ago, Narus boasted that it is “known for its ability to capture and collect data from the largest networks around the world.”

The company says its equipment is capable of “providing unparalleled monitoring and intercept capabilities to service providers and government organizations around the world” and that “Anything that comes through [an Internet protocol network], we can  record. We can reconstruct all of their e-mails, along with attachments, see what Web pages they clicked on, we can reconstruct their [Voice over Internet Protocol] calls.”

Like Narus, Verint was founded by in Israel by Israelis, including Jacob “Kobi” Alexander, a former Israeli intelligence officer. Some 800 employees work for Verint, including 350 who are based in Israel, primarily working in research and development and operations, according to the Jerusalem Post. Among its products is STAR-GATE, which according to the company’s sales literature, lets “service providers … access communications on virtually any type of network, retain  communication data for as long as required, and query and deliver content and data …” and was  “[d]esigned to manage vast numbers of targets, concurrent sessions, call data records, and communications.”

In a rare and candid admission to Forbes, Retired Brig. Gen. Hanan Gefen, a former commander of the highly secret Unit 8200, Israel’s NSA, noted his former organization’s influence on Comverse, which owns Verint, as well as other Israeli companies that dominate the U.S. eavesdropping and surveillance market. “Take NICE, Comverse and Check Point for example, three of the largest high-tech companies, which were all directly influenced by 8200 technology,” said Gefen. “Check Point was founded by Unit alumni.  Comverse’s main product, the Logger, is based on the Unit’s technology.”

 

According to a former chief of Unit 8200, both the veterans of the group and much of the high-tech intelligence equipment they developed are now employed in high-tech firms around the world. “Cautious estimates indicate that in the past few years,” he told a reporter for the Israeli newspaper Ha’artez  in 2000, “Unit 8200 veterans have set up some 30 to 40 high-tech companies, including 5 to 10 that were floated on Wall Street.” Referred to only as “Brigadier General B,” he added, “This correlation between serving in the intelligence Unit 8200 and starting successful high-tech companies is not coincidental: Many of the technologies in use around the world and developed in Israel were originally military technologies and were developed and improved by Unit veterans.”

Equally troubling is the issue of corruption. Kobi Alexander, the founder and former chairman of Verint, is now a fugitive, wanted by the FBI on nearly three dozen charges of fraud, theft, lying, bribery, money laundering and other crimes. And two of his top associates at Comverse, Chief Financial Officer David Kreinberg and former General Counsel William F. Sorin, were also indicted in the scheme and later pleaded


How long until silver breaks out of its consolidation phase and heads higher?

Posted: 22 Apr 2012 04:20 AM PDT

If you look at the graph below you can clearly see the mini-spike in silver prices last April and the sideways consolidation since then. There was no true spike in prices because there has been no subsequent collapse. Indeed, the silver price has been well supported in the $30-35 an ounce range.


International Forecaster April 2012 (#6) - Gold, Silver, Economy + More

Posted: 22 Apr 2012 04:15 AM PDT

For a company whose corporate motto is "Don't Be Evil," Google Inc. certainly has found itself at the receiving end of its share of lawsuits, claims and controversies. Still, even by Google's standards this past week has been a difficult one.


GATA Chairman Murphy to address Las Vegas MoneyShow

Posted: 22 Apr 2012 04:04 AM PDT

12:05p ET Sunday, April 22, 2012

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy will speak at the Las Vegas MoneyShow, to be held Monday-Thursday, May 14-17, at Caesar's Palace in Las Vegas, in an appearance sponsored by our friends at Liberty Coin and Precious Metals in San Diego.

The conference will feature dozens of speakers, including GATA favorites David Morgan of Silver-Investor.com and Gold Newsletter editor Brien Lundin, as well as scores of exhibiting financial companies. Admission is free for those who register in advance, and the conference has arranged a discount rate for attendees staying at the hotel.

Murphy's presentation will be given Tuesday, May 15, at 5:30 p.m. in the main speaker hall of the conference and will be titled "What GATA, Silver Investor, and Liberty Coin and Precious Metals Recommend to Protect Your Wealth." His presentation will emphasize exploiting the gold and silver price suppression schemes by avoiding the paper markets and taking delivery of gold and silver purchases.

Murphy also will meet conference attendees at the Liberty Coin and Precious Metals booth at 5 p.m. Wednesday, May 16.

For more information about Liberty Coin and Precious Metals, please visit:

http://www.libertycpm.com

Or telephone 1-800-577-COIN.

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



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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:

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Or call Northaven CEO Allen Leschert at 604-696-3600.



Join GATA here:

Las Vegas Money Show
Caesar's Palace, Las Vegas
Monday-Thursday, May 14-17, 2012
http://www.moneyshow.com/tradeshow/las_vegas/moneyshow/

Committee for Monetary Research and Education
Spring Dinner Meeting featuring Jim Sinclair
"Money and the Corporate State"
Union League Club, New York, N.Y.
Thursday, May 17, 2012
http://www.cmre.org/

Vancouver World Resource Investment Conference
Sunday-Monday, June 3-4, 2012
Vancouver Convention Centre East
Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/world-resource-investment-conference

Standard Chartered's Earth Resources Conference
Wednesday-Thursday, June 20-21, 2012
J.W. Marriott, Hong Kong
http://www.standardcharteredsignatureevents.com/earths-resources/welcome...

Hong Kong Gold Investment Forum
Monday-Wednesday, June 25-27, 2012
Renaissance Harbour View Hotel, Hong Kong
http://www.hkgoldinvestmentforum.com/

New Orleans Investment Conference
Wednesday-Saturday, October 24-27, 2012
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
http://www.neworleansconference.com/

* * *

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

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

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



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

Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project.

"21st Century Business" has been airing for 15 years. Previous hosts have included Gen. Alexander Haig, Gen.l Norman Schwarzkopf, and Secretary of Defense Caspar Weinberger. Golden Phoenix appeared as paid programming on this broadcast.

To view the program with Golden Phoenix, please visit Golden Phoenix's Internet site here:

http://www.goldenphoenix.us/company-videos.html



Food & Health – Week of 4.22.12

Posted: 22 Apr 2012 02:30 AM PDT

Gold and Silver COT (CFTC – Commitment of Traders)

Posted: 21 Apr 2012 11:17 PM PDT

Marshall Swing writes: Commercials added 2,372 longs and 2,484 shorts to end the week with 47.57% of all open interest 132,485,000 ounces net short, a small increase of 555,000 ounces. Large speculators netted only -103 contract longs and covered -324 shorts for a net long position of 92,035,000 ounces, a increase of almost 1,105,000 ounces from the prior week.


Canada in the minority opposing more IMF firepower

Posted: 21 Apr 2012 06:02 PM PDT

Finance Minister Jim Flaherty has spent his entire six-year career as a federal politician in government. But within the Group of 20 economic powers, Mr. Flaherty has taken on the role of leader of the opposition.

Virtually the entire membership of the G20 shifted over the past few days to get behind International Monetary Fund Christine Lagarde's effort to raise more than $400-billion ( U.S.) to build a stronger bulwark against the threat posed by the European debt crisis.

Countries such as Britain, South Korea and Australia made pledges Friday, allowing Ms. Lagarde to announce that she had raised roughly $430-billion in bilateral loans. Ms. Lagarde told a press conference that the IMF now has access to $1-trillion, an awesome figure meant to assure global investors that no country will be allowed to collapse should economic conditions take a drastic turn. Read more......


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Triple Lutz Report--Why Johnny Can't Read In Buffalo New York--Episode 182

Posted: 21 Apr 2012 10:34 AM PDT

www.FinancialSurvivalNetwork.com presents

Teachers in Buffalo New York are up in arms. The State has mandated teachers receive evaluations in order for the schools to receive additional funding. The Teachers' Union has defied the State and refuses to allow evaluations. 

This all comes to you compliments of a debt based monetary system, which acts to perpetuate corrupt government schemes and ensures that union members get to line their pockets at retirement time, sometimes after just 25 years or less. New York will be completely insolvent in a very short time and will have to rely upon the Federal government to print more money out of thin air. Can such a system continue on indefinitely? Certainly not! The collapse is coming, it's just the date that hasn't yet been determined. 

Go to www.FinancialSurvivalNetwork.com for the latest info on the Economy, Markets and Precious Metals.


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