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Tuesday, April 17, 2012

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Fear vs Love

Posted: 17 Apr 2012 06:57 AM PDT

from news.goldseek.com:

Why do people choose to own gold?

As I see it, there are two reasons for owning gold: one out of love, the other out of fear.

When looking at gold investment we see similar parallels drawn between past and present, East and West. The difference is, in the words of James Turk, 'What money is and what money has become.'

In the West we seem to, as a whole, invest in gold as protection against the policy makers and their dangerous economic decisions. In the East they buy gold, because for them it has and always will be money. We used to believe it was money until the West got greedy and for some reason believed you needed more money to fuel wealth creation.

Grant Williams recently pointed us to a staggering statistic: household ownership of gold in India equates to 18,000 tonnes. This is the same amount as the both the central banks of the USA and the EU combined.

So what do they know that we don't?

I don't know if they sit there asking one another whether or not they think they gold market is bullish or not. I don't know if they sit there asking if the fundamentals are still in place to create a bigger bull market than that seen the 1980s. I don't know if they talk about gold price manipulation or the danger of gold confiscation. I don't know, but I suspect not.

Keep on reading @ news.goldseek.com

Jim Sinclair Warns Investors

Posted: 17 Apr 2012 06:56 AM PDT

from bullmarketthinking.com:

In what may be recognized as a prophetic call within a few years time, legendary gold investor Jim Sinclair (also known as Mr. Gold), issued a dispatch this month entitled "Street Name Review" to readers of his highly followed jsmineset.com, urging investors to hold stock certificates in an ownership form other than "street name registration".
Says Mr. Gold, "Investors should avoid margin accounts and instruct their broker dealer to not register stock certificates in street name…99.9% of brokerage account investors have no idea what is being done to them when their stock certificates are registered in 'Street Name'. It allows their broker to lend their shares to short sellers, driving down the price of your investment.

Jim "Mr. Gold" Sinclair
Additionally, this method allows the broker to 're-hypothecate' your assets and borrow money against your shares so they can speculate in the derivatives market…
These hidden risks are the seeds of tomorrow's ultimate collapse of broker dealers which could dissipate the assets of customer accounts as experienced in the MF Global fiasco." -Jim Sinclair, April 5, 2012
By our estimation here at BullMarketThinking.com, Mr. Sinclair is 100% correct, and those who take defensive action now will avoid the next "MF-Global" style collapse of a broker dealer. We are in the eye of an economic storm, and as the economy begins to nosedive once again, Western financial firms will continue their industry-wide wave of bankruptcies.In what may be recognized as a prophetic call within a few years time, legendary gold investor Jim Sinclair (also known as Mr. Gold), issued a dispatch this month entitled "Street Name Review" to readers of his highly followed jsmineset.com, urging investors to hold stock certificates in an ownership form other than "street name registration".
Says Mr. Gold, "Investors should avoid margin accounts and instruct their broker dealer to not register stock certificates in street name…99.9% of brokerage account investors have no idea what is being done to them when their stock certificates are registered in 'Street Name'. It allows their broker to lend their shares to short sellers, driving down the price of your investment.

Jim "Mr. Gold" Sinclair
Additionally, this method allows the broker to 're-hypothecate' your assets and borrow money against your shares so they can speculate in the derivatives market…
These hidden risks are the seeds of tomorrow's ultimate collapse of broker dealers which could dissipate the assets of customer accounts as experienced in the MF Global fiasco." -Jim Sinclair, April 5, 2012
By our estimation here at BullMarketThinking.com, Mr. Sinclair is 100% correct, and those who take defensive action now will avoid the next "MF-Global" style collapse of a broker dealer. We are in the eye of an economic storm, and as the economy begins to nosedive once again, Western financial firms will continue their industry-wide wave of bankruptcies.

Keep on reading @ bullmarketthinking.com

Ditching the Dollar

Posted: 17 Apr 2012 06:54 AM PDT

from caseyresearch.com:

There's a major shift under way, one the US mainstream media has left largely untouched even though it will send the United States into an economic maelstrom and dramatically reduce the country's importance in the world: the demise of the US dollar as the world's reserve currency.

For decades the US dollar has been absolutely dominant in international trade, especially in the oil markets. This role has created immense demand for US dollars, and that international demand constitutes a huge part of the dollar's valuation. Not only did the global-currency role add massive value to the dollar, it also created an almost endless pool of demand for US Treasuries as countries around the world sought to maintain stores of petrodollars. The availability of all this credit, denominated in a dollar supported by nothing less than the entirety of global trade, enabled the American federal government to borrow without limit and spend with abandon.

The dominance of the dollar gave the United States incredible power and influence around the world… but the times they are a-changing. As the world's emerging economies gain ever more prominence, the US is losing hold of its position as the world's superpower. Many on the long list of nations that dislike America are pondering ways to reduce American influence in their affairs. Ditching the dollar is a very good start.

Keep on reading @ caseyresearch.com

Gold investment demand to remain strong in 2012

Posted: 17 Apr 2012 06:54 AM PDT

from mineweb.com:

nvestment demand for gold has grown consistently over the course of the yellow metal's bull run and, 2012 is likely to continue this trend.
This is the view of Philip Klapwijk, Global head of metals analysis at Thomson Reuters GFMS.
Speaking at the Denver Gold Group European Gold Forum, Klapwijk , supported his view by looking at a number of factors that will affect the level of investment demand into gold over the course of the year.
The first of these, is the performance of the gold price itself, not only in absolute terms but also relative to other assets.
According to Klapwijk, over the past decade or so, the yellow metal has done well compared to most other asset classes, outperforming bonds and equities and even the CRB index.

Keep on reading @ mineweb.com

The Big Rally in Gold is Getting Closer and Closer

Posted: 17 Apr 2012 06:51 AM PDT

from news.goldseek.com:

The Hindu festival of Akshaya Tritivai is coming up this month and this is of interest for gold investors. The holiday, which falls on April 24th, is a day when Indians go on a major gold buying binge. It is one of the most auspicious occasions to buy gold, the ultimate symbol of wealth and prosperity. The timing couldn't be better for the ending last week of the 20-day strike by India's jewelers and gold importers who protested new government taxes on bullion. Moreover, the wedding season has already started in some parts of India and gold is an integral part of most Indian weddings. It is expected that in April and May imports will be around a 100 metric tons to India, the world's largest consumer of gold. The nationwide strike is estimated to have cost the industry at least $3.91 billion.

According to an annual report released Wednesday by metals consultancy GFMS, gold's speculative investors may have been shaken by gold's volatile ride last year, but the physical market—particularly in China—remained faithful to bullion and the trend is expected to continue in 2012.

Gold bar demand and hoarding from China alone rose 40% in year- on-year in 2011 to a new record of 250 tons, according to GFMS. And this trend is likely to continue.

Keep on reading @ news.goldseek.com

The Economist: The Future Of Gold And Money

Posted: 17 Apr 2012 06:38 AM PDT

Economist\ Editor on The Future Of Gold And Money.


Video streaming by Ustream

Warren Buffet scorns gold. Bad move!

Posted: 17 Apr 2012 06:15 AM PDT

Posted APR 5 2012 by JAN SKOYLES in 

Whenever Warren Buffet expresses a like or a dislike for a certain stock or asset, everyone seems to sit up and listen. Last month he famously once again denounced gold. Gold investment, according to the Sage of Omaha, is a waste of time, it is 'unproductive'. In the article below, the author points out that Mr. Buffet may well be on the quiet side of the fence when it comes to buying gold, as there are plenty of other billionaire investors (and countries) who appreciate the qualities of gold which Mr Buffet hates so much.

Warren Buffett doesn't like gold. In this year's annual letter to Berkshire Hathaway shareholders, Warren Buffett scorned gold as an asset that is "forever unproductive."

And he's right about that…

But investors don't buy gold because they hope it will produce something. They buy gold because they know that no one can produce it. Therefore, the more that folks distrust their national currency, the more they put their trust in the ultimate currency: gold.

The gold price has increased for 11 consecutive years — a time frame during which, coincidentally, it has trounced the investment return of Berkshire Hathaway. Why? Because a new era of monetary destruction is unfolding throughout the Western world. That's why a growing number of investors are devoting a growing percentage of their investment portfolios to gold and other hard assets.

Rolling 10-Year Return of Gold vs. Rolling 10-Year Return of Berkshire Hathaway

Nevertheless, the American community of gold lovers remains miniscule by comparison to the community of Berkshire Hathaway lovers or Apple lovers. In this sense, Buffett is thoroughly average — he hates gold just as much as the next guy.

Interestingly, however, Buffett is one of the very few billionaires on the planet who scorns gold. In fact, several billionaire investors have disclosed recently that they are taking the other side of the Buffett "sell" on gold.

George Soros, the billionaire founder of Soros Fund Management LLC, raised his stake in the SPDR Gold Trust (GLD) to 85,450 shares from 48,350 during the last three months of 2011. The billionaire hedge fund manager John Paulson also holds a large stake in GLD.

"Paulson made his way into the financial history books thanks to what many now call the 'greatest trade ever,'" Money Morning reports:

"Paulson & Co. shorted the subprime mortgage market before the collapse, banking a $15 billion gain. So when Paulson went big again by buying gold in 2009 and 2010, investors took notice… In fact, Paulson's holdings in the SPDR Gold Trust (GLD) make his firm the biggest stakeholder in this ETF, with a position currently valued at $2.9 billion."

The billionaire "Bond King" is also singing gold's praises these days. Bill Gross, the guy who founded PIMCO, the $1.3 trillion financial firm dedicated to managing bond portfolios, remarked last month, "Recent central bank behavior, including that of the US Fed… may as well induce inflationary distortions that give a rise to commodities and gold as store of value alternatives when there is little value left in paper."

One final admirer of gold is neither a hedge fund manager nor a billionaire. This admirer is a trillionaire! Literally.

In 2011, China became the No. 1 importer of gold. China was already the world's leading gold producer. The Asian juggernaut also reduced its holdings of US government securities last year for the first time since the Treasury began keeping the data in 2001. As of Dec. 31, China held $1.15 trillion in Treasuries, down from $1.16 trillion at the end of 2010.

This reduction doesn't sound like much, but it's the trend that's telling: gold up, Treasuries down.

China's Hong Kong Gold Imports vs. Its Holdings of US Treasury Securities

China is not only the biggest importer of gold, it is also the biggest miner of the precious metal. According to the World Gold Council, China produces nearly 50% more gold (about 300 tons per year) than the second-place country… Australia. And not a single ounce of that newly mined gold leaves the country. By law, the Chinese government buys every ounce of gold that surfaces from a Chinese mine shaft… no matter what.

Clearly, the Chinese are taking the "long view" when it comes to gold accumulation. They believe they can trust gold more than US Treasuries.

Maybe Soros, Paulson, Gross and the Chinese are all crazy to buy gold. Or maybe Buffett is crazy not to. Place your bets!

About the Author

Jan SkoylesJan first became interested in precious metals and sound money when she met Ned Naylor-Leyland whilst working at Cheviot Asset Management in the summer of 2010. Jan then went on to write her undergraduate dissertation on the use of precious metals in the monetary system. After graduating from university Jan joined The Real Asset Co research desk and now contributes to the Cobden Centre, The Commentator, The Renegade Economist and Market Oracle.View all posts by Jan Skoyles →


Zogenix: Why This Hated Biotech Deserves Love

Posted: 17 Apr 2012 05:07 AM PDT

By Deep Value Investor:

Zogenix (ZGNX) has been a very heated name here on Seeking Alpha. Author Natty Green put himrself out there and was flamed by the community. His article Zogenix: Smart Biotech Buy Before Earnings resulted in 47 comments after Zogenix actually missed revenue estimates and the stock dropped from the $2.70 levels down to $2 per share.

The sell down to the current $1.80-$1.90 levels has actually been a blessing in our opinion because it offers a nice entry point. When it comes to risky and high flying biotech stocks we play the value game a little differently.

In our opinion regardless of what the revenue numbers were going to be last reporting period it was a not something that impacted our view of Zogenix offering deep value. We first started buying Zogenix as a "busted IPO" company in mid December. Our theory was that the $60 million dollar funding at


Complete Story »

Some Relief At The Pump

Posted: 17 Apr 2012 05:00 AM PDT

Hickey and Walters (Bespoke) submit:

Earlier this month we highlighted the widening spread in the prices of Brent and WTI crude oil prices and its impact on the price of gasoline as the summer driving season approaches. The point of the note was to highlight that gasoline prices were more leveraged to the price of Brent crude oil prices, so no matter how much WTI crude oil prices declined, the only way consumers would see relief at the pump was if the price of Brent crude oil declined.

Thankfully for drivers, the last few days have seen a near collapse in the spread between Brent and WTI crude oil prices. Less than two weeks ago, the spread was over $20 per barrel. Today, the spread


Complete Story »

Are Gold Stock Fundamentals Still Bullish?

Posted: 17 Apr 2012 05:00 AM PDT

In the face of a correction or poor price action, we'll often hear analysts proclaim the bullish fundamentals of precious metals. While this is true on a structural and secular basis, it doesn't mean the market always advances every year or two.

First Majestic Corporation: The Long And Short Term Possibilities

Posted: 17 Apr 2012 04:49 AM PDT

Having had the benefit of an exclusive interview with Keith Neumeyer, President and CEO along with Todd Anthony, Investor Relations Manager Jill Arias, VP of Marketing we took the plunge and bought First Majestic Silver Corporation (AG) for the an average cost of $13.13, back in February 2011.

So, with "skin in the game" as they say, we do tend to keep an eagle eye on the small number of stocks that we own in the silver mining space, especially their recently released first quarter production results, where AG's three mines in Mexico managed to produce 2,007,219 equivalent ounces of silver.

The total equivalent silver production for the quarter consisted of 1,826,803 ounces of silver, representing a 7% decrease compared to the prior quarter but an increase of 3% compared to the same quarter in 2011. In addition, 3,176,662 pounds of lead was produced representing a 7% decrease from the


Complete Story »

Gold ETFs, The IRS And Tax Day: Not So Alluring

Posted: 17 Apr 2012 04:33 AM PDT

By Tom Lydon:

Investors that struck gold last year in one of the physically backed exchange traded funds have discovered a capital gains headache at tax time if bullion-backed ETFs are held in a taxable account. Investors considering such a commodity investment at this time may want to read on before doing so.

"We've seen a lot of gold ETFs this year, and we're pulling out the last few hairs we have over them," said Bill Fleming, a managing director in the personal financial services practice of PricewaterhouseCoopers, in a Reuters report. "A lot of ETFs have quarterly or monthly dispositions to pay for expenses. All of these are small dollar amounts, but you still have to figure out what your cost basis is."

Gold, silver and other metals are treated as collectibles by the Internal Revenue Service, meaning they are taxed at the special rate of 28% for the long term. Short-term


Complete Story »

“Bearish Trend Remains” for Gold, “Low Demand” for Silver sees Comex Warehouse Stocks Surge to 10-Year Highs

Posted: 17 Apr 2012 04:27 AM PDT

SPOT MARKET gold prices were hovering just above $1650 an ounce ahead of Tuesday's US trading – in line with where they have spent most of the last month – while stock markets in Europe ticked higher following Spain's successful auction of short-term Treasury bills.

"Gold remains in a bearish trend so long as it stays below $1697, which was the most recent top on March 27," say technical analysts at bullion bank Scotia Mocatta.

Silver prices rose to their highest level this week – hitting $31.81 per ounce – while other industrial commodities were broadly flat and government bond prices fell.

Stockpiles of silver bullion held in Comex warehouses meantime have hit their highest levels in at least decade, according to newswire Reuters, which first began compiling the data 10 years ago.

"When you are seeing people delivering into Comex, it is typically because they have nothing better to do with the metal," explains David Jollie, strategic analyst at Mitsui Precious Metals in London.

"Generally if you are seeing Comex stocks building, you would say that means that premiums are not particularly high anywhere, and that means that demand is low."

The Spanish government saw its short-term borrowing costs rise Tuesday when it auctioned 12-month and 18-month bills. The average yield on 12-month bills was 2.623% – up from 1.418% last month. The yield on 18-month bills jumped from 1.711% last month to 3.110%.

Spain did however manage to sell €3.2 billion of debt – above the maximum target of €3 billion announced before the auction.

"The key was again domestic bank bidding," says Michael Leister, rate strategist at DZ Bank.
"But it doesn't change the bigger picture too much. The key will be the bond auction on Thursday."

Spain, whose banks were believed to be among the biggest borrowers at the European Central Bank's longer term refinancing operations (LTRO) in December and February, plans to auction between €1.5 billion and €2.5 billion in 2-Year and 10-Year bonds two days from now.

Spanish 10-Year bond yields rose above 6% yesterday, before easing back slightly this morning, while spreads over 10-Year German bunds hit their highest levels since November.

"The positive effect of LTRO operations is now well on the wane," reckons Lyn Graham-Taylor, London-based fixed income strategist at Rabobank.

"We are well and truly back in crisis mode."

The government in Madrid has said it will seize control of the budgets of Spanish regions if they fail to stick to deficit limits, as prime minister Mariano Rajoy's government seeks to bring Spain's deficit down to the target of 3% of GDP next year, as agreed with the European Union.

Spanish debt is now the tenth riskiest sovereign debt in the world, according to a new report published by data analysis firm CMA Vision.

Inflation in the Eurozone as a whole meantime, as measured by the consumer price index, held steady at an annual rate of 2.7% last month, official data published Tuesday show. Core CPI – which excludes items such as food and energy – ticked higher, from 1.5% to 1.6%.

Here in the UK, CPI inflation rose to 3.5% last month – up from 3.4% in February.

The London Metals Exchange, which specializes in trading non-ferrous base metals, is reportedly considering offering settlement in Chinese Renminbi. Contracts are currently denominated in Dollars, Euros, Yen and Sterling – with the LME said to be considering dropping Sterling.

Over in India, traditionally the world's largest source of gold bullion demand, jewelers are reporting a 50% drop in sales ahead of next week's Akshaya Tritiya festival – seen as an auspicious day in the Hindu calendar to buy gold.

"Around this time, we [usually] sell 500-600 kilograms of gold daily," former Bombay Bullion Association president Suresh Hundia, told the Wall Street Journal on Tuesday.

"But this time, purchases are down to 200-300 kilos."

Indian jewelers staged a three-week strike recently following the Union Budget of March 16, which extended the reach of sales tax on gold as well as doubled gold import duties.

India's central bank meantime cut its main policy interest rate today from 8.5% to 8%, the first cut in three years, citing a slowdown in economic growth.

"Upside risks to inflation [however] persist," the Reserve Bank of India warned.

"These considerations inherently limit the space for further reduction in policy rates."

The RBI also announced it has tightened its stance on gold lending companies, and set up a working group to look more closely at the industry.

Ben Traynor
BullionVault

Gold value calculator   |   Buy gold online at live prices

Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics.

(c) BullionVault 2011

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.


WATCH: Silver In Perspective

Posted: 17 Apr 2012 04:03 AM PDT

Chris Duane of Truth Never Told with his latest: Silver In Perspective

from truthnevertold:

~TVR

Joseph T Salerno on Gold & Silver Radio

Posted: 17 Apr 2012 03:47 AM PDT

Joseph T Salerno on Gold & Silver Radio.

from whygoldandsilver:

~TVR

EndlessMountain: Gold & Silver Chart Analysis 4.17.12

Posted: 17 Apr 2012 03:12 AM PDT

I Consider Silver (as an investment) to be a goat. I will follow up on this on the next video and if you want to know what I mean by this then the answer should be in the comments section or the clue is "Gruden Goat Rice"

from endlessmountain:

~TVR

Gartman’s Abandon Junior Miners ‘Mugs Game’

Posted: 17 Apr 2012 02:43 AM PDT

Now that junior miners have already been crushed as much as 45% from their 2011 highs and the advanced exploration companies have already been cast overboard. Dennis Gartman is advising his clientele to "abandon" them because even when gold rallies they don't rally.

Collapse of Mali a Result of Post-Qaddafi US-NATO-Moroccan Plan

Posted: 17 Apr 2012 02:38 AM PDT

Tarpley.net

Gold/Platinum Ratio Suggests Much Higher Gold Prices Are Coming

Posted: 17 Apr 2012 02:17 AM PDT

Gold/Platinum Ratio suggests much higher gold prices are coming There is an interesting pattern developing on the Gold/Platinum Ratio. This pattern is similar to a pattern on the silver chart. Below, is a graphic which features the Gold/Platinum Ratio chart (top) as well as the silver chart (bottom):     The graphic is self-explanatory, and [...]

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

A Massive Spike In The Price of Silver Is Imminent

Posted: 17 Apr 2012 02:08 AM PDT

A Massive Spike In The Price of Silver Is Imminent Gold and silver are very close to entering the mania phase of this bull market. In order for gold and silver to go into the mania phase, value has to be diverted from somewhere, and that "somewhere" is most likely stocks. Since 2000, there has [...]

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

Gold, Silver and Copper Investing Strategies and M&A Ideas: Vishal Gupta

Posted: 17 Apr 2012 01:36 AM PDT

Keiser Report Meets Schiff Report 4.0

Posted: 17 Apr 2012 01:18 AM PDT

In this episode, Max Keiser and co-host, Stacy Herbert discuss the Fukushima of Central Bank quantitative easing policies and the blowfish that is more deadly than a Goldman Sachs CDO. In the second half of the show Max talks to investor, author and radio show host, Peter Schiff about gold, the dollar and Japanese monetary policy. KR on FB: www.facebook.com

from russiatoday:

~TVR

Morning Outlook from the Trade Desk 04/17/12

Posted: 17 Apr 2012 12:48 AM PDT

Difficult to write anything inspiring. Last week gold got its bounce into the mid $1,670's and today sold down to initial 'weak support" around $1,650. The dollar/euro will probably dictate short term trend. The euro is approaching 1.30, which if breached may create the catalyst for lower gold prices. A bounce off this level may see gold in the high $1,650's today. A bounce in equities has lent some support to the industrial complex. As more and more people(dealers) get depressed and call for the end of the market, the more enthusiastic I become. This will be a tough year to be in the business but unless you honestly believe that Western Governments have the stomach for what is necessary to get real growth, not financed window dressing, you have to assume further higher momentum is in the cards. I want to see a downward capitulation, $150-$200 in gold and $4 in silver to confirm my musings.

Underweight 2011 Proof Krugerrands

Posted: 17 Apr 2012 12:25 AM PDT

The SA Mint produced underweight 1 oz gold Krugerrands for a period of 2 months in 2011. There are news stories all over the net about it but every one seems to be essentially just a reprint and there I can't find any hard data on how they are underweight.

Any rate, if given the choice between multiple years when buying proof Krugerrands, pass on the 2011's. You have to be a little suspicious about a major mint letting a major quality control issue concerning the gold content of their premier coin slip for 2 full months. On the other hand, maybe the Krugs may be considered "error" coins and be more valuable. Depends on how many I guess.

There were some high level firings at the SA Mint, in the very same shop that makes the Proof coins.

Here's the statement from the mint (link):

Publication Detail
Title:
Media statement: Update on the SA Mint Company
Publish Date:
2012-04-13
Publishing Approval:
16
Category:
Media Releases

​Further to the media statement issued by the South African Reserve Bank (Bank) on 8 December 2011 regarding technical issues within the operations of the SA Mint Company (SA Mint), investigations into the matter have revealed that some of the proof Krugerrand coins casted between April 2011 and May 2011may not meet all the required quality specifications.

Based on information that there had been fluctuations in assay results in the production process starting from April 2010, a conservative approach was adopted to analyse results from 01 April 2010 until 31 October 2011, the latter date being one on which new quality control measures were introduced. The extended period was adopted merely as a precaution.

It is important to distinguish between bullion Krugerrand coins and proof Krugerrand coins. The SA Mint is involved in the production and distribution of proof Krugerrands, which are targeted at the collectors' market and are produced in much smaller quantities than bullion Krugerrand coins. During the period 01 April 2010 to 31 October 2011, a number of gold blanks of different sizes were manufactured by the SA Mint. As a further precautionary measure, it was deemed important that an intensive assessment of all Krugerrand proof coins that were still in the stock of our dealer network be undertaken.

The verification process indicated that some coins appeared to be under specification to varying degrees. The SA Mint and the Bank contacted relevant local and international dealers, and also held meetings with dealers to inform them of this possibility. An offer was made that, should any of the dealers have reasonable concerns that some proof Krugerrand coins may not comply with all required quality criteria, they could return such coins to the SA Mint. Arrangements were to be made for the exchange of any such coins for new ones and all related costs would be for the account of the SA Mint.

Concurrent with the investigation into proof Krugerrand coins, the SA Mint investigated the evidential theft of R5 circulation coins. This crime was ostensibly committed by a number of employees who appeared to have acted in collusion with what appears to be a syndicate-style operation that included external parties. Appropriate steps have been taken and all evidence gathered has been handed over to the Police's Directorate for Priority Crime Investigation ("the Hawks").

Enquiries:
Hlengani Mathebula
Head: Group Strategy and Communications

‘Low Demand’ Sends Comex Silver Stockpile to Decade High

Posted: 17 Apr 2012 12:14 AM PDT

Gold prices continued to hover near $1,650 per ounce ahead of Tuesday's US trading – in line with where they have spent most of the last month – while European stock markets gained following Spain's successful auction of short-term Treasury bills.

Soros warns Euro crisis could destroy the EU

Posted: 17 Apr 2012 12:02 AM PDT

from reuters.com:

Billionaire George Soros warned on Monday that the euro crisis is growing deeper, tearing at the fabric of European Union cohesion, because policymakers are prescribing the wrong remedies.

"I'm afraid that the euro crisis is getting worse. It's not over yet, and it is going in the wrong direction," Soros said in discussion with Denmark's economics minister hosted by the daily newspaper Politiken.

"The euro is undermining the political cohesion of the European Union, and if it continues like that could even destroy the European Union," Soros said. "That is due to a misunderstanding of what the problem is."

Soros, the Hungarian born U.S. investor, said that the creators of the single European currency believed that imbalances were created in the public sector without understanding that markets themselves can create imbalances.

He said the euro crisis is being dealt with by policymakers as a fiscal crisis though the crisis began as a collapse of the banking system in the United States and was compounded by a divergence of competitiveness among European countries.

Keep on reading @ reuters.com

GATA: We're not in charge of the future

Posted: 17 Apr 2012 12:00 AM PDT

from gata.org:

Dear Friend of GATA and Gold (and Silver):

Our friend T.R. writes: "It's increasingly difficult to grit my teeth and hang onto my positions in gold and silver, in the gold and silver exchange-traded funds GLD and SLV, and even actual bullion (like American eagle coins). I fully agree with GATA's views on bankster manipulation of these markets, but the breakout forecast for the metals has been thwarted for decades, with no lasting loss of bankster control in more than 30 years. Can you give any encouragement beyond the predictions by various analysts that reality will prevail in these markets any day now? Thanks for your diligence and truth telling."

A reply:
GATA can't offer as much encouragement as we'd like, since we're not an investment adviser and since the price suppression can continue indefinitely, even forever, as long as enough institutions and individuals who think they're buying gold and silver purchase only paper claims and never take delivery from the purported sellers and move the metal outside the banking system. Such investment behavior facilitates the infinite increase of imaginary gold, the mechanism of price suppression.

Keep on reading @ gata.org

ECB bond buying will increase

Posted: 16 Apr 2012 11:58 PM PDT

from goldmoney.com:

here is little evidence of clear short-term price trends in gold, silver, platinum or palladium at the moment, with the metals all hostage to violent day-to-day gyrations in hedge fund sentiment. "Risk on" buying is triggered by hints that the Federal Reserve is getting ready for "QE3", and sees metal prices bid up along with equities and commodities. It also leads to selling of the US dollar and Treasuries.

"Risk off" occurs whenever Fed officials appear cautious about more stimulus, and sees precious metals – along with commodities generally and equities – promptly sell off again, and the dollar and Treasuries rally. Everything in the short-term is pretty much tied to what central bankers say when standing in front of a microphone. The situation is nicely summed up at Jesse's CafĂ© Americain: "To say that these are fairly cynical traders' markets, rather than anything tied to fundamental valuations, is an understatement."

Keep on reading @ goldmoney.com

Economist: Dollar & Euro Will Debase In A “Big Way”

Posted: 16 Apr 2012 11:54 PM PDT

from zerohedge.com:

US Editor of The Economist: "Paper Dollar" and "Paper Euro" Will "Debase" in a "Big Way"

Gold's London AM fix this morning was USD 1,652.00, EUR 1,255.51, and GBP 1,035.54 per ounce. Friday's AM fix was USD 1,648.25, EUR 1,266.03 and GBP 1,040.69 per ounce.

Silver is trading at $31.72/oz, €24.15/oz and £19.88/oz. Platinum is trading at $1,568.68/oz, palladium at $650.20/oz and rhodium at $1,350/oz.
In volatile trade in New York yesterday, gold rose sharply prior to falling and ended $4.40 lower or 0.27% and closed at $1,651.70/oz. Gold initially took a dip in Asia and then recovered losses by the time European trading opened and has ticked higher.

Gold's safe haven appeal is gradually rekindling as concerns deepen about Spain and the other periphery eurozone economies and a realisation that the eurozone debt crisis is far from over.

With the situation in Europe and globally set to deteriorate, the lacklustre demand of recent weeks, particularly in western markets may change to renewed robust physical demand.

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Dollar & Euro Seen to Debase ‘in a Big Way’

Posted: 16 Apr 2012 11:48 PM PDT

In volatile trade in New York yesterday, gold rose sharply prior to falling and ended $4.40 lower or 0.27% and closed at $1,651.70/oz. Gold initially took a dip in Asia and then recovered losses by the time European trading opened and has ticked higher.

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