Gold World News Flash |
- Gold Breaks 3-Month Rule for 1st Time in 11 Years
- Central Bank Gold
- Leeb – We Will See Unbelievable Chaos Going Forward
- The World Will See More QE, Inflation & Revolution
- This is What I’m Doing with My Own Money Right Now
- This Fed Manipulation is Incredibly Dangerous
- A Truly Physical Perspective On Precious Metals
- How to Invest With a Declining US Dollar
- COMEX Warehouse Silver Volatility Continues
- Merkel's in Hot Water... So All Future Backstops Will Be Even MORE "Strings Attached"
- Amity Shlaes: Nutty would be NOT considering return to a gold standard
- Norwegians take big broker's trading algos for an expensive ride
- Silver Update 5/02/12 Yamashita's Gold
- Earth's Resources Conference in Hong Kong to hear about gold market manipulation
- Report: Repeated Low Doses of Radiation Can Cause More Damage than High Doses
- Physical Gold: Disappearing FAST!
- The Gold Price Closed at $1,653.40 Down $8.30
- Biderman Makes Friends: "Bankers Are As Dumb As Politicians"
- Examining the Long-Term Benefits of Gold Investing
- Dollar-Funding Costs Drop As Market Awaits Next ECB Move
- Spain sounding out investment banks on crisis options
- Gold Seeker Closing Report: Gold and Silver Fall With Oil
- Where Have All the Investors Gone?
- Caribbean Island Gold: Scott Jobin-Bevans
- You Need a Money GPS--David Quintieri 02.May.12
- Gold Daily and Silver Weekly Charts - Coiling and Capping - Azalea
- The euro-zone crisis: Call it a depression
- Trust the fundamentals and keep accumulating metals, Turk advises
- Central Bank Demand to Change Gold, Silver Markets and Prices
| Gold Breaks 3-Month Rule for 1st Time in 11 Years Posted: 02 May 2012 06:13 PM PDT Bullion Vault
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| Posted: 02 May 2012 05:52 PM PDT Nichols on Gold
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| Leeb – We Will See Unbelievable Chaos Going Forward Posted: 02 May 2012 05:00 PM PDT from Stephen Leeb, KingWorldNews:
We will start to see strains in the physical market in silver at some point in the future. When that happens, silver will be off to the races."
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| The World Will See More QE, Inflation & Revolution Posted: 02 May 2012 05:00 PM PDT  With continued volatility in global markets, including gold and silver, today King World News interviewed one of the legends in the gold world, Keith Barron. Barron consults with major gold companies around the world, as well as major brokerage houses, and he is also responsible for one of the largest gold discoveries in the last quarter century.Here is what Barron had to say about what is taking place in Europe: "Spain is in a tremendous amount of trouble right now. They have had a lot of their major banks downgraded. The country's debt has been downgraded, yet again, and there is tremendous opposition amongst the populace regarding austerity measures." "The unemployment rate is now almost one in four people, it's just over 24%. If this place was in South America, they would be verging on revolution right now. They would be pulling down statues, breaking windows and setting fire to cars. Maybe that's coming. Read more..... 
This posting includes an audio/video/photo media file: Download Now |
| This is What I’m Doing with My Own Money Right Now Posted: 02 May 2012 04:52 PM PDT  With the Dow now at its highest level since December of 2007, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. Embry told KWN "This is totally unrealistic and unsustainable." Embry also discussed gold and the mining shares, and what he is doing with his own money, but first, here is what Embry had to say about what is happening in the stock market:"There is enormous interference in the stock market. The 'Plunge Protection Team' or 'President's Working Group on Financial Markets' is in the market, virtually every day, making sure there is enough money being funneled to their primary dealers, so the stock market never has a serious hiccup." "One of the basic goals now is to hold the Dow above 13,000 because this imparts confidence to the public. This is totally unrealistic and unsustainable because there is nothing in the backdrop other than money creation that would suggest the stock market should be higher. No market in history has traded like this, particularly considering how bad the fundamentals are at this point. Read more....... 
This posting includes an audio/video/photo media file: Download Now |
| This Fed Manipulation is Incredibly Dangerous Posted: 02 May 2012 04:39 PM PDT  With most global stock markets moving higher, oil surging, and the Dow trading at the highest level since December of 2007, today King World News interviewed legendary value investor Jean Marie Eveillard, who oversees $50 billion at First Eagle Funds. Eveillard told KWN that the authorities should not be in the business of manipulating equity prices because it is extremely dangerous. He also discussed the gold market, but first, here is what Eveillard had to say about what is happening with stocks: "This has been artificial stimulation. Savers are being sacrificed today. With short-term interest rates basically down to zero, and long-term Treasury bonds yielding very little, the authorities are trying to push the savers into equities. That's the wrong thing to do."Jean-Marie Eveillard continues: "The authorities should not be in the business of manipulating equity prices or manipulating any prices for that matter. They should let the markets clear. The Federal Reserve has placed a floor under the equity market, so traders and investors are taking advantage of it. Read more..... 
This posting includes an audio/video/photo media file: Download Now |
| A Truly Physical Perspective On Precious Metals Posted: 02 May 2012 04:17 PM PDT Too many people miss the silver lining because they're expecting gold - Maurice Setters by Krassen Ratchev Seeking Alpha:
Like a long-lost silver vase you might chance upon in the attic, many investors have re-discovered the fact that precious metals are and have always been a safe haven – an investment that literally stands the test of time. This is due to the simple fact that owning or investing in physical precious metals has absolutely no counterparty risk. Essentially, what you see is exactly what you possess. In this article I would like to take a step back from the financial mayhem and take a fresh look at the physical stuff. Literally. I am hoping that for both old and new investors my analysis will yield a new perspective on precious metals.
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| How to Invest With a Declining US Dollar Posted: 02 May 2012 04:05 PM PDT Bill Bonner View the original article. May 02, 2012 12:08 PM Yesterday, we got a glimpse. Yes, dear reader, we were on our way to Sea Island. We looked across the bridge at another island — Jekyll Island. You know Jekyll Island, don't you? It's where the monster was created… A group of the nation's richest, biggest, and most powerful bankers got together there — in secret — in November, 1910. They figured it was time to put in place a system that would make it a little easier for them to make money. Instead of competing head to head, without any backstop to protect them when things got rough, they decided to set up a central bank. The meeting was so cloaked in secrecy few believed it ever took place. Implausibly, it was first reported by the poet Ezra Pound. How Pound learned of it…and why he reported it…we don't know. But that's the word on the street. B. C. Forbes reported in 1916: Picture a party of the nation's greatest bankers stealing out of New York on a ...
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| COMEX Warehouse Silver Volatility Continues Posted: 02 May 2012 03:05 PM PDT from Silver Doctors:
COMEX WAREHOUSE SILVER INVENTORY UPDATE 5/2/12 While the CME is now reporting inventory levels to 3 decimal places, strangely enough- once again, NO MENTION FROM THE CME OF THE MISSING 1.4 MILLION OUNCES OF REGISTERED SILVER THAT SIMPLY DISAPPEARED IN THE AFTERMATH OF THE MF GLOBAL BANKRUPTCY!
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| Merkel's in Hot Water... So All Future Backstops Will Be Even MORE "Strings Attached" Posted: 02 May 2012 02:25 PM PDT
Spain, which is now at the forefront of the Great Western Debt Default Collapse, has opted to seek funding from the mega-bailout fund, the European Stability Mechanism (ESM) rather than going directly to the ECB or the IMF.
The reasons for this are clear: the IMF doesn’t have the funds (nor will it as the US won’t fund a European bailout during a Presidential election year). And the ECB is now backed into a political corner with Germany.
However, Spain is discovering that even ESM funding doesn’t come without strings attached:
Germany Rejects Spain Banks Tapping Bailout Fund, Meister Says
Spain’s rating downgrade at Standard & Poor’s doesn’t alter Germany’s stance that banks can’t have direct access to Europe’s financial backstops, a senior lawmaker from Chancellor Angela Merkel’s party said.
“The German position is absolutely strict,” Michael Meister, the deputy caucus chairman of Merkel’s Christian Democrats, said in a phone interview in Berlin. “And since such aid programs require unanimity, there’s not going to be any change. All sorts of people can try to set things in motion, but Germany won’t vote for it.”
The ESM funding idea is really just Spain playing for time (the ESM doesn’t actually have the funds to bail Spain out). But the fact that Germany is now making the ESM a political issue indicates the degree to which political relationships are breaking down in the EU. And once the political relationships break down… so will the Euro.
Indeed, Germany has no choice. If it decides to prop up Spain it will receive a ratings downgrade (something which France is about to experience anyway). Europe with a downgraded Germany is not a pretty sight.
Moreover, Germany’s decision to prop up the Euro is finally beginning to arouse furor from the German population. In particular, the below story which reveals that Germany has in fact put German taxpayers on the hook for over €2 trillion in back-door EU rescue measures could be the proverbial tipping point that sends German voters over the edge.
German tempers boil over back-door euro rescues
Professor Hans-Werner Sinn, head of Germany's IFO Institute, said German taxpayers are facing a dangerous rise in credit risk from a plethora of bail-out schemes. "The euro-system is near explosion," he told Austria's Economics Academy on Thursday.
Dr Sinn said Germany is on the hook for much of the €2.1 trillion (&ound;1.72 trillion) in rescue measures for EMU debtors - often by the back-door - that will saddle Germans with ruinous losses one day.
"It is a horror scenario," he said, warning that the euro system is splitting friendly countries into blocs of mutually hostile creditors and debtors, exactly the opposite of what was hoped.
Earlier this week, the Foundation for Family Business in Munich filed a criminal lawsuit against the Bundesbank, accusing the board of disguising the true scale of risk born by German citizens.
This is the last thing Angela Merkel needs right now. Between this and inflation arising in Germany she’s in major political hot water. So expect Germany to push even harder when it comes to fiscal austerity in the future…
On that note, I fully believe the EU in its current form is in its final chapters. Whether it’s through Spain imploding or Germany ultimately pulling out of the Euro, we’ve now reached the point of no return: the problems facing the EU (Spain and Italy) are too large to be bailed out. There simply aren’t any funds or entities large enough to handle these issues.
So if you’re not already taking steps to prepare for the coming collapse, you need to do so now. I recently published a report showing investors how to prepare for this. It’s called How to Play the Collapse of the European Banking System and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.
This report is 100% FREE. You can pick up a copy today at: http://www.gainspainscapital.com
Good Investing!
Graham Summers
PS. We also feature numerous other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s a US Debt Default, runaway inflation, or even food shortages and bank holidays, our reports cover how to get through these situations safely and profitably.
And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com
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| Amity Shlaes: Nutty would be NOT considering return to a gold standard Posted: 02 May 2012 02:23 PM PDT Gold Standard for All, from Nuts to Paul Krugman By Amity Shlaes http://www.bloomberg.com/news/2012-05-02/gold-standard-for-all-from-nuts... Nut cases. That's what they are. And if you take an interest in them, you are a nut case too. That's the consensus among credentialed economists who describe advocates of a return to the monetary regime known as the gold standard. In fact, the economic pack will marginalize you as a weirdo faster than you can say "Jacques Rueff" if you even raise the topic of monetary policy in relation to gold. An example of such marginalizing appears in a recent issue of the Atlantic magazine. Author Adam Ozimek lists four rules upon which economists overwhelmingly agree. Right away, that puts readers on guard; they don't want to be the only one to disagree with eminences. The first rule Ozimek offers is that free trade benefits economies. So obvious. That makes the penalty for disagreement higher. Then you read down to the final principle: "The gold standard is a terrible idea." By putting the proposition in such strong terms, the author raises the penalty for disagreeing. If you don't subscribe to this view, you risk both being classed as the kind of genuine nut case who believes in protectionism, and enduring the disdain of other economists -- "all economists," as the Atlantic headline writer summarized it. ... Dispatch continues below ... ADVERTISEMENT Prophecy Platinum (TSXV: NKL) and Ursa Major Minerals Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) and Ursa Major Minerals Inc. have signed a binding letter of agreement for a business combination through a proposed all-share transaction. In doing so Prophecy and Ursa have acted at arm's length and the transaction has been negotiated at arm's length. Prophecy will issue one common share in exchange for every 25 outstanding common shares of Ursa. Ursa options and warrants will be exchanged for options and warrants of Prophecy on an agreed schedule. Prophecy's offer represents a value of about $0.15 per each common share of Ursa based on Prophecy's share price of $3.70 as at March 1, representing a premium of 130 percent to Ursa's March 1 closing price of $0.065. Prophecy is to subscribe for $1 million common shares of Ursa by way of private placement financing at $0.06 per share, subject to regulatory approval. Upon placement completion, John Lee and Greg Hall, current Prophecy directors, will be appointed to Ursa's board. Prophecy thus will become a mid-tier resource company with a robust and 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... But "all economists" is not the same as "all economies." The record of gold's performance in all economies over the past century is not all "terrible." Especially not in relation to areas that concern us today: growth, inflation, or the frequency of bank crises. The problem here may lie not with the gold bugs but with those who work so hard to isolate them. Conveniently enough, the gold record happens to have been assembled recently by a highly credentialed team at the Bank of England. In a December 2011 bank report, the authors Oliver Bush, Katie Farrant and Michelle Wright review three eras: the period of a traditional gold standard (1870-1913); the period of a gold-standard variant, the Bretton Woods gold-exchange standard (1948 to 1972); and a period of flexible exchange rates (1972-2008). The report then looks at annual real growth per capita worldwide, over many nations. Such growth, they find, was stronger in the recent non-gold-standard modern period, averaging an annual increase of 1.8 percent per capita, than in the classical gold-standard period before 1913, when real per-capita gross domestic product increased 1.3 percent annually. Give a point to the gold disdainers. But the authors also find that in the gold exchange standard years of 1948 to 1972 the world averaged annual per-capita growth of 2.8 percent, higher than the recent gold-free era. The gold exchange standard is a variant of the gold standard. That outcome doesn't tell you we must go back to the gold exchange standard yesterday. But it does suggest that figuring out how the standard worked might prove a worthy, or at least not a ridiculous, endeavor. Gold shone in other ways. In a gold-standard regime, money is backed by gold, so it's impossible, or at least more difficult, for governments to inflate. Naturally the gold standard and Bretton Woods years therefore enjoyed lower rates of inflation compared with the most recent era. The gold standard endures a reputation for causing more banking crises than other monetary regimes. The Bank of England paper suggests gold stabilizes banks: The incidence of banking crises in the non-gold-standard period is higher than the incidence in the two gold periods. "Overall the gold standard appeared to perform reasonably well against its financial stability and allocative efficiency objectives," wrote Bush, Farrant, and Wright. Markets and countries enjoyed relative stability in gold-standard years, and capital in those years flowed to worthy growth-generating projects. The main sacrifice in gold regimes that the authors identify is that governments lose authority to micromanage domestic economies. But given governments' records, that may not be such a bad thing, either. It all suggests that contempt for old gold hands such as Congressman Ron Paul of Texas might not be warranted. And that it might be interesting to peruse the numerous gold-related currency plans outside the door of the academic salon. Plenty of people, many former bankers, think it is time to pass laws returning the U.S. to some version, strong or weak, of the gold standard. Lewis Lehrman, financier and founder of the Gilder-Lehrman Institute, which focuses on history, recently published a plan to take the world back to gold, "The True Gold Standard." Charles Kadlec, another former Wall Streeter, co-wrote his own proposal, "The 21st-Century Gold Standard," with Ralph Benko. The case for gold as a mandatory metric for the Federal Reserve in setting interest rates is made in new legislation offered by Congressman Kevin Brady, another Republican from Texas. Dozens of state legislatures are introducing their own gold- or silver-related currency legislation. One reason people slap the nut-case label on others with impunity is that for the past 30 or 40 years most economic education has systematically excluded the gold standard and its exponents from the classroom. It's easy to call something your professors never respected the work of a nut case. But it's also worthwhile to ask why the professors white out the gold standard from the books. Perhaps it is because the systems they raved about in their dissertations, systems of flexible exchange rates, subsequently underperformed. This inconsistency in their own modeling is of course hard to acknowledge. Recently Bloomberg Television drew enormous attention when co-anchor Trish Regan moderated a debate between Ron Paul and Paul Krugman, the Nobel prize-winning New York Times columnist. Krugman sought to hold the middle ground, noting that all he sought, through his recommendation that federal debt rise to 130 percent of gross domestic product, was a return to the kind of America in which his parents lived. The professor treated the congressman's remarks as unscholarly; in a blog post afterward, Krugman wrote that "everything Paul said about growth after World War II was wrong." But Krugman too has some sorting through to do. The years when his parents lived were gold years, the time of the Bretton Woods gold exchange standard, a time when the federal government, except in world war, would never had considered raising debt to 130 percent of the economy, as Krugman suggested in the debate. If we are going to speak of consensus, let's not forget one that is truly universal: Our economic system stands a good chance of breakdown in coming years. The only way to limit damage from such a breakdown is to ready ourselves to choose other models by learning about them now. Not to do so would be nuts. ----- Amity Shlaes is a Bloomberg View columnist and the director of the Four Percent Growth Project at the Bush Institute. Join GATA here: Las Vegas Money Show Committee for Monetary Research and Education Vancouver World Resource Investment Conference Standard Chartered's Earth Resources Conference Hong Kong Gold Investment Forum New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf
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| Norwegians take big broker's trading algos for an expensive ride Posted: 02 May 2012 01:52 PM PDT Norwegian Day Traders Cleared of Wrongdoing By Michael Stothard http://www.ft.com/intl/cms/s/0/e2f6d1cc-9447-11e1-bb47-00144feab49a.html Two Norwegian day traders who outwitted the automated trading system of a big US broker have been cleared of all wrongdoing by the country's highest court. The two men were handed suspended prison sentences for market manipulation in 2010 after they worked out how the computerised system would react to certain trading patterns -- allowing them to influence the price of low-volume stocks. Their appeal against that ruling was upheld by the Norwegian Supreme Court on Wednesday, which cleared them of market manipulation. The verdict will please the trading community in Norway, which had come to view the duo as Robin Hood figures, beating the big financial houses at their own game. ... Dispatch continues below ... ADVERTISEMENT Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf Two expert witnesses testified that the activities of Svend Egil Larsen and Peder Veiby were common market practice. The defendants also argued that they were making the market more efficient by exploiting a flawed system. Mr Larsen told the Financial Times that he was still getting the better of algorithmic trading systems today. "Just the other month UBS forgot to set a bottom limit on one of their algos and I got some stocks for cheap," he said. "They even called me afterwards and asked me to reverse the trade!" He declined to do so. The case involved Timber Hill, a unit of US-based Interactive Brokers. Prosecutors had argued that Mr Larsen and Mr Veiby "gave false and misleading signals about supply, demand, and prices" by manipulating several Norwegian stocks through Timber Hill's online trading platform. But Mr Larsen said that the system was so flawed that "any rational investor could have done what we did in the same open and transparent way." The court said that the transparency of their trades was one reason for their acquittal. Before the ruling both Mr Larsen and Mr Veiby had already been found innocent in the court of public opinion. "The case against them was one of the most unpopular I have ever seen in Norway," said Sverre Nilsen, a reporter at local financial paper E24, who was following the trial. Mr Nilsen said that this partly reflects the unpopularity of algorithmic trading systems that some feel gives big financial houses an unfair advantage, but also the charisma of Mr Larsen, in particular, who was able to come across as a lovable rogue taking on the powers that be. Mr Veiby and Mr Larsen placed thousands of trades from late 2007 to early 2008. Mr Larsen said that problems arose when he was "bored in Florida" waiting for his wife and children to wake up and so placed a number of larger trades that ended up attracting attention. The eventual court case in 2010 came soon after the so-called "flash crash" in May of that year, when a single algorithm triggered a plunge in US stocks prompting growing scrutiny of automated trading systems. Mr Larsen's lawyer, Halldor Tjoflaat, said he was pleased with the verdict but disappointed that the court did not use it as an opportunity to clarify the guidelines for the Securities Trading Act on market manipulation. Join GATA here: Las Vegas Money Show Committee for Monetary Research and Education Vancouver World Resource Investment Conference Standard Chartered's Earth Resources Conference Hong Kong Gold Investment Forum New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Prophecy Platinum (TSXV: NKL) and Ursa Major Minerals Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) and Ursa Major Minerals Inc. have signed a binding letter of agreement for a business combination through a proposed all-share transaction. In doing so Prophecy and Ursa have acted at arm's length and the transaction has been negotiated at arm's length. Prophecy will issue one common share in exchange for every 25 outstanding common shares of Ursa. Ursa options and warrants will be exchanged for options and warrants of Prophecy on an agreed schedule. Prophecy's offer represents a value of about $0.15 per each common share of Ursa based on Prophecy's share price of $3.70 as at March 1, representing a premium of 130 percent to Ursa's March 1 closing price of $0.065. Prophecy is to subscribe for $1 million common shares of Ursa by way of private placement financing at $0.06 per share, subject to regulatory approval. Upon placement completion, John Lee and Greg Hall, current Prophecy directors, will be appointed to Ursa's board. Prophecy thus will become a mid-tier resource company with a robust and 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...
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| Silver Update 5/02/12 Yamashita's Gold Posted: 02 May 2012 01:35 PM PDT |
| Earth's Resources Conference in Hong Kong to hear about gold market manipulation Posted: 02 May 2012 12:58 PM PDT 9p ET Wednesday, May 2, 2012 Dear Friend of GATA and Gold: Your secretary/treasurer will join renowned mining entrepreneurs Robert Friedland, Rob McEwen, and Bob Quartermain among the speakers at Standard Chartered's Earth's Resources Conference in Hong Kong on Wednesday and Thursday, June 20 and 21. The conference will be held at the luxurious J.W. Marriott Hotel at Pacific Place in the glamorous Wan Chai section of Hong Kong, and the conference has arranged a special discounted room rate for attendees staying at the hotel. Just about everything in the resource world will be discussed -- not just gold and oil but also platinum, diamonds, copper, base metals, rare earths, rubber, and natural gas. A special gala dinner to raise funds for the Child's Dream charity will be held on the conference's first night, introduced by Marc Faber, publisher of the Gloom, Doom, and Boom Report. ... Dispatch continues below ... ADVERTISEMENT Golden Phoenix Discusses Royalty Mining Growth Strategy Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project. "21st Century Business" has been airing for 15 years. Previous hosts have included Gen. Alexander Haig, Gen.l Norman Schwarzkopf, and Secretary of Defense Caspar Weinberger. Golden Phoenix appeared as paid programming on this broadcast. To view the program with Golden Phoenix, please visit Golden Phoenix's Internet site here: http://www.goldenphoenix.us/company-videos.html At this conference your secretary/treasurer plans to bring gold market manipulation to the attention of a huge and influential Asian audience, and thus to hasten the manipulation's end. Hong Kong may be the safest big city in the world, and because of its long colonial history, most of it functions equally well in English as in Chinese. A new airport gives the city direct flight connections to most of the world. So Westerners should not be reluctant to visit. The Earth's Resources Conference Internet site carries all the information about the conference, including registration, lodging, and the tentative agenda. It's posted here: http://www.standardcharteredsignatureevents.com/earths-resources/welcome... CHRIS POWELL, Secretary/Treasurer Join GATA here: Las Vegas Money Show Committee for Monetary Research and Education Vancouver World Resource Investment Conference Standard Chartered's Earth Resources Conference Hong Kong Gold Investment Forum New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Be Part of a Chance to Discover Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries. -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600.
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| Report: Repeated Low Doses of Radiation Can Cause More Damage than High Doses Posted: 02 May 2012 12:22 PM PDT Can Low Doses of Radiation Cause More Damage than High Doses?The New York Times’ Matthew Wald reports today:
Dr. Beyea writes:
We pointed out last year:
Other experts have made the same claim:
Low Doses Can Cause Big ProblemsWhether or not low doses of radiation are more dangerous than high doses, one thing is clear: repeated exposure to low doses of radiation can cause cancer. Yet governments worldwide are raising acceptable radiation levels based upon politics. Indeed, the Department of Energy is trying to replace the widely-accepted model of the dangers of low dose radiation based on voodoo science. Specifically, DOE’s Lawrence Berkeley Labs recently used a mutant line of human cells in a petri dish which was able to repair damage from low doses of radiation, and extrapolated to the unsupported conclusion that everyone is immune to low doses of radiation:
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| Physical Gold: Disappearing FAST! Posted: 02 May 2012 12:03 PM PDT There is little we witness in the Precious Metals markets DAILY, that is more despicable than the blatant maipulation of the "price" of Gold and Silver by the selling into the market of Gold and Silver that DOES NOT EXIST. When the supply of PHYSICAL Precious Metals fall short of the demand for "physical" metal, a crisis will evolve that will FORCE the price of Precious Metals hire inspite of all efforts to suppress those prices by hook or by crook: When Fundamentals No Longer Apply, Review the FundamentalsBy: Eric Sprott & David Baker, Sprott Asset ManagementThis may not come as a surprise, but we're still not seeing it. We're not seeing a US recovery. Here we are, well into 2012, and the fact remains that the US housing situation is still a bust. There is simply no housing recovery happening in the United States. US New Home Sales fell for the fourth time in a row month-overmonth in March, representing a seasonally-adjusted annual rate of 328,000, down from 353,000 in February.1 Do you know what the annual rate of New Home Sales was back in 2006? About 1.21 million.2 No recovery there. Same goes for US Existing Home Sales, which fell unexpectedly by 2.6% in March to an annual rate of 4.48 million units.3 Again - would you care to know where they were in the same month back in 2006, before the financial system fell apart? Approximately 6.92 million units.4 No recovery there either. Then there's unemployment. Judging by all the recent earnings-release cheerleading, March's jobs numbers seem to have been forgotten, but they were plainly weak. The US Labor Department showed US hiring slowing to a mere 120,000 new jobs in March, below expectations of 200,000+.5 That's not a recovery. That's simply weak data. Same goes for the most recent jobless claims numbers, which have been running above 380,000 for the last two weeks, above the 375,000 threshold that supposedly signals future unemployment increases.6 Again - this is not positive data, this is weak data. How high will it have to go before the economists admit that it's weak? 400,000? 425,000? We're asking - we'd like to know. Then there are US tax receipts, which continue to point in the same direction. If the US is recovering so strongly, then why are employment tax receipts only up 2%? ($484 billion fiscal year-to-date as of March 2012 vs. $475 billion over the same period to March 2011).7 A 2% increase is explainable by inflation alone, which was last reported running at 2.7% according to the Bureau of Labour Stastics.8 Shouldn't the tax receipts be much higher than that? Wasn't unemployment down so far this year? As the Associated Press plainly states, "The unemployment rate has fallen to 8.2% in March [2012] from 9.1% in August [2011]. Part of the drop was because people gave up looking for work. People who are out of work but not looking for jobs aren't counted among the unemployed."9 Oh! Sorry,… now the numbers make more sense. There hasn't been any net new employment at all. Question: if everyone "gives up" looking for work next week, will the US unemployment rate go to zero? We're asking - we'd like to know. Other economic indicators exhibit the same downward momentum that the pundits are loath to acknowledge. For example, the Economic Cycle Research Institute's (ECRI) Weekly Leading Indicator index, which had been rising from its 2011 lows earlier this year, has resumed its downtrend in April.10 More recently, US Durable Goods Orders were revealed to have dropped 4.2% in March, representing the largest decline since January 2009.11To top it all off, China's most recent Purchasing Managers Index (PMI) indicated that China's manufacturing activity has now been in contraction for six months in a row.12 FIGURE 1: SPANISH BANKS - DEPOSIT AND EUROSYSTEM FUNDING (% OF TOTAL ASSETS), 1999 - FEB 2012  Note: Deposits of domestic ex credit institutions in Spanish MFIs. Eurosystem borrowing Eurosystem funding via Open Market Operations Source: Bank of Spain, ECB and Citi Investment Research and Analysis Meanwhile, the situation in Europe continues to worsen. There's no point in mincing words: Spain is a complete disaster. This past week, the Spanish government managed to pull off two separate bond auctions, only to have the yield on their 10-year government bond shoot right back up the moment the second auction closed. Everyone's nervous because the Spanish banking system is up to its eyeballs in approximately €143.8 billion worth of delinquent loans, and the private sector is unwilling to lend Spanish banks the money to weather the potential write-downs.13 As we've seen before, the real culprit plaguing the Spanish banks is customer deposit withdrawals. It is estimated that €65 billion of deposits left Spanish banks this past March alone.14 People are taking their money out of the Spanish banking system, and without the help of the generous European Central Bank (ECB), the Spanish banks would likely be in a full collapse today (see Figure 1).15 As it stands, the Spanish banks have now borrowed a massive €316.3 billion from the ECB in order to meet the withdrawals and maintain the illusion of solvency. Perhaps it's Euro-crisis fatigue, or maybe just plain denial, but the equity markets appear unwilling to acknowledge how close we are now to yet another round of Eurozone upheaval. Spain's economy is almost five times that of Greece. Spain also has over four times the amount of externally-held nominal debt outstanding.16 If the bond vigilantes choose to punish the Spanish 10-year bond (currently trading precariously close to a 6% yield), we could soon be back where we were this past September, only with a problem four times as large. The rest of Europe isn't looking so hot either. Italy's bond market is in a similar situation to that of Spain, with the Italian 10-year bond trading perilously close to the 6%-yield threshold. Recent data showed the European Purchasing Managers Index (PMI) falling to 47.4 in March, well below the 50 mark which signals growth in industrial activity.17 German PMI recently confirmed this move with its April release of 46.3, down from 48.4 in March, representing the fastest rate of contraction since July 2009.18 These declines in economic activity, combined with the austerity measures most Euro countries are currently attempting to impose, almost guarantee more printed money will be pumped into the European bond markets before the year is over. It's simply a matter of time. As expected, the powers that be are busy parading around in preparation for the next round of Eurozone panic, with the IMF using the renewed concerns as an opportunity to re-establish its relevance as a firewall provider. The IMF most recently secured $430 billion worth of new "pledges" from various G20 member countries to increase its potential lending capacity to $700 billion in the event of further problems in the Eurozone.19 Not unsurprisingly, the BRICS countries have expressed irritation at the disproportionate voting power held by Western powers within the IMF at the expense of themselves and the other developing nations. In prepared remarks at an IMF press conference, Brazil's finance minister criticized the skewed quotas that dictate voting power, stating that, "The calculated quota share of Luxembourg is larger than the one of Argentina or South Africa… The quota share of Belgium is larger than that of Indonesia and roughly three times that of Nigeria. And the quota of Spain, amazing as it may seem, is larger than the sum total of the quotas of all 44 sub-Saharan African countries."20 This unbalance used to make sense when the IMF was designed to help fund ailing third world and developing countries through economic crisis. But that is clearly no longer the IMF's main purpose. It must be difficult for the BRICS countries today. On one hand, they continue to jockey for respect among the Western powers, insisting on participating in quasi-European bailout funds like the IMF. On the other hand, they are also clearly aware of the Western nations' continuing efforts to surreptitiously devalue their domestic currencies, and the pernicious effect that has had on them as exporters and as lenders of capital. In that vein, it was interesting to note that during the latest BRICS Summit held this past March in New Delhi, the main topic of discussion centered on the creation of the group's first official institution, a so-called "BRICS Bank" that would fund development projects and infrastructure in developing nations. Although not openly discussed, reports suggest what they were really talking about was creating a type of BRICS central bank - an institution that could facilitate their ability to "do more business with each other in their local currencies, to help insulate from U.S. dollar fluctuations…"21 Given the incredible scale of western central bank intervention over the past six months, the BRICS' increasing frustration with their printing efforts should be a given by now. The real question is what they're doing about it, and what assets they're accumulating to protect themselves from the inevitable, which brings us to gold. Although the paper gold price has been range-bound over the past month, the physical gold market has been undergoing staggering change. Earlier this month it was revealed that Hong Kong gold imports into China totaled nearly 40 tonnes in the month of February, representing a 13-fold increase over the same month last year (see Figure 2).22 40 tonnes annualized equates to 480 tonnes per year - a massive number in a market that only produced 2,810 tonnes of mine supply in 2011.23 FIGURE 2: CHINA'S GOLD IMPORTS FROM HONG KONG  Source: Hong Kong Census and Statistic Dept, Reuters Reuters graphic/Catherine Trevethan, Rujun Shen 11/04/12 If there's one thing we now know for certain, it's the fact that the market has completely missed the importance of the demand-side changes currently taking place in the physical gold market. China has now imported 436 tonnes of gold through Hong Kong over the past eight months.24 This compares to imports of a mere 57 tonnes over the same eight month-period a year earlier (July 2010 - February 2011). The net new demand implied by this increase is 379 tonnes, which when annualized equates to 568 tonnes of new demand in a market that supplies 2,810 tonnes per year in mine production. These are astounding numbers. Recent IMF data also shows that at least 12 countries increased their physical gold reserves by 58 tonnes in the month of March, with Mexico, Turkey, Russia and Kazakhstan making sizeable purchases.25 58 tonnes annualized equates to 696 tonnes of demand per year. We know that central banks bought 439.7 tonnes of gold in 2011, and if the pace of recent central bank purchases continues, it will equate to another 256 tonnes of net new change in the physical gold market. The significance of this demand shift is striking. If we combine China's implied net change of 568 tonnes with the central banks' net change of 256 tonnes, we're left with a demand shift of over 824 tonnes vs. an annual mine supply of 2,810 tonnes. That represents close to a 30% net change in the physical gold market in 2012. If we remove the portion of global gold production produced by China and the other non-G6 central bank gold buyers (like Russia and Mexico - because we know they're not sellers), we're now dealing with over 824 tonnes of demand change hitting an annual global mine supply of a mere 2,170 tonnes - representing a 38% shift.26 Although we have been continually reminded that 'fundamentals don't matter' in today's marketplace, there isn't a physical market on earth that can withstand that type of demand increase without higher prices over the long-run, and the gold market is no different. There are no sellers of physical gold that we know of who can satiate that scale of new demand, and global gold mine supply has been virtually flat for over the last ten years. Even if we incorporate the estimated 1,600 tonnes of "recycled gold" that the World Gold Council insists on including in its annual gold supply estimates, the numbers above still suggest a net change of 19%.27 Who is going to give up their gold purchases to make room for this scale of new demand? Where is the gold going to come from? We ask because we don't actually know. We have written at length about the disconnect between the paper gold price and the physical gold market. If the demand changes stated above applied to any other market, the investing public would lose their minds. Could you imagine, for example, if the demand shifts described above were applied to the global oil market? What would happen if a single country came in from nowhere and increased its oil purchases by a factor equivalent to 30% of the world's annual oil supply? We are students first and foremost of the physical market, and the numbers stated above speak for themselves. We remain confident about gold for the simple reason that the demand we are now seeing for physical is completely unsustainable without higher prices, and we do not see that demand abating in the coming months. The US recovery is not happening. Europe is poised for yet another full-fledged economic crisis, and the BRICS countries continue to aggressively convert to hard assets like gold in order to protect themselves from currency debasement. The paper market for gold can continue its charade, but demand in the physical market will soon overpower it through sheer momentum - there's only so much physical to go around, and it appears that there are some very large buyers that are eager to take it. _________________ Central Bank Demand to Change Gold, Silver Markets and Prices There is a tide in the affairs of gold that is changing the entire shape of the gold market. We are not just talking about the demand side but the supply side as well. Neither the gold market nor the gold price has factored in these changes yet. And the changes are designed to affect the gold market both unobtrusively and over time. The developed world markets are myopically riveted to short-term factors in the developed world's economies, distracted from reacting to forces considerably greater than those. The changes are significantly deeper than we saw in the 1970's. By extension, the forces involved will change the future of the silver price as well. These forces will prove so decisive because they are not price-dependent or price-sensitive. We are currently watching the final moves of a long-term consolidation period, in the near-term and ahead of a strong move either way. A look at the bulk of market commentators shows they are pretty well split on which way the gold and silver prices are headed, up or down? It depends whether the short-term traders take control of the precious metal prices, or whether the forces we are about to describe will take over. It could be a combination of both, with short-term forces breaking resistance, or support, initially, until new pressures take over and force traders and speculators to go with them. We shall see! We will be tracking each step of the way and keeping subscriber's fingers on the pulse. So what are these new forces, or are they old forces re-shaped? Let's look at the central bank demand first. Central Bank Gold Buying and Gold in Reserves In the last fortnight we heard that central banks continue quietly to buy gold according to the I.M.F. · Russia bought 16.55 tonnes in March. · Mexico bought 16.81 tonnes in March. · Turkey bought 11.48 tonnes in March. · Argentina bought 7 tonnes in March. · Kazakhstan bought 4.3 tonnes in March. Other central banks bought smaller amounts. A total of 12 central banks were buyers. We have no reason to believe that this well-established trend will change. Inscrutable China does not report its purchases because it uses a separate Chinese agency to do so, which last handed over 600 tonnes in 2009. Expect the next handover in two years time. Gold Investors should weigh this feature of the gold market very heavily as this emphasizes the monetary aspect of gold, which is completely different to any other type of demand. To give us perspective, just take a look at who holds the approximately 30,000 tonnes of gold in their reserves: READ MORE _________________ The Illusion of an Economic Recovery Greg Hunter, USAWatchdog Last Friday, the government reported the gross domestic product (GDP) number for the first quarter, and it was 2.2%. That was .8% lower than the 4th quarter's 3% growth rate. It was a big disappointment because most economists were expecting growth numbers closer to the 3% range. The New York Times reported the economy thwarting numbers with a political bent that said, "The economic recovery slowed more than expected early this year, raising fears of a spring slowdown for the third year in a row and giving Republicans a fresh opportunity to criticize President Obama's policies. . . . "When you look at the report in the totality, I think it shows that the private sector is continuing to heal from the financial crisis," said Alan Krueger, chairman of the president's Council of Economic Advisers. . . . Representative Kevin Brady, a Republican from Texas and vice chairman of the Joint Economic Committee, called the numbers "beyond disappointing." (Click here to read the complete NYT report.) The real story here is not the political football the economy has become, but the lack of solid numbers to tell what's really going on. This happens because the government does not accurately adjust the so-called growth of the nation's economy for inflation. If inflation was accounted for squarely, there would be almost no recovery according to economist John Williams of Shadowstats.com. Friday, Williams said, "Indeed, the "recovery" is an illusion that has been created as a direct result of methodological changes in government inflation reporting of recent decades. . . . the faux growth problem is in the use of understated inflation estimates in deflating a number of economic series." (Click here to go to the homepage of Shadowstats.com.) To prove his point, Williams put together two graphs of GDP. The first does NOT account for inflation accurately, but in a way Williams says is the government's "Headline Real GDP" reporting. Look how the economy falters in 2008 and 2009, and then the economy is up, up and away again in 2010, 2011 and 2012. Looking at the government's calculation for inflation (Headline Real GDP–1st graph,) you would think the economy is definitely heading in the right direction.  When you look at the nation's GDP and factor in the effects of true inflation (Inflation-Corrected–2nd graph,) you get a totally different picture. Look at the big drop-off in 2008 and 2009. Then, look at the almost nonexistent so-called "recovery." There is simply not much of a recovery. Williams repeatedly says the economy is "bottom bouncing." I think the "Inflation-Corrected" graph below demonstrates this description.  Everyone wants to be optimistic about the economy, but when that optimism is based on bad data, it could set up ordinary Americans for disaster. People might go further into debt instead of preparing for another downturn. Williams goes on to say, "Underlying economic reality does not have positive implications for the system. Ongoing economic stagnation and renewed contraction will mean much-worse-than-anticipated federal budget deficits, U.S. Treasury funding needs and banking-system solvency issues. Despite current protestations to the contrary, the Fed likely will be forced into a new round of easing in an effort to support the still-faltering banking system. . . . Any such action also likely will provide a trigger for heavy selling of the U.S. dollar and upside pressure on domestic inflation." Maybe this is why Fed Chief Ben Bernanke implied QE 3, or more money printing, was still very much a possibility last week. A Reuters report said, "We remain entirely prepared to take additional balance sheet actions as necessary to achieve our objectives," Bernanke told reporters. "Those tools remained very much on the table and we would not hesitate to use them should the economy require that additional support." (Click here for the complete Reuters story.) Inflation-adjusted data shows there has been little improvement to the GDP since 2009. My guess is the Fed will be forced to print money to keep the illusion of economic recovery going. _________________ Got Gold You Can Hold? Got Silver You Can Squeeze? It's NOT Too Late To Accumulate!!! 
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| The Gold Price Closed at $1,653.40 Down $8.30 Posted: 02 May 2012 10:34 AM PDT Gold Price Close Today : 1,653.40 Change : -8.30 or -0.5% Silver Price Close Today : 30.59 Change : -.29 or -0.9% Platinum Price Close Today : 1,560.20 Change : -7.90 or -0.5% Palladium Price Close Today : 668.85 Change : -11.60 or -1.7% Gold Silver Ratio Today : 54.05 Change : 0.22 or 1.00% Dow Industrial : 13,279.32 Change : 65.69 or 0.5% US Dollar Index : 78.81 Change : 0.04 or 0.1% Franklin Sanders has not published any commentary today, if he publishes later it will be available here. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com 888-218-9226 10:00am-5:00pm CST, Monday-Friday © 2012, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. No, I don't. 
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| Biderman Makes Friends: "Bankers Are As Dumb As Politicians" Posted: 02 May 2012 10:13 AM PDT In his usual quiet manner, TrimTabs CEO Charles Biderman unloads his emotional baggage along with USAWatchdog's Greg Hunter in this 15-minute interview. The sad truth is that, just like his alter-ego Lewis Black, Biderman is right - again and again. Whether it is reflecting on the kick-the-can mentality of polticians or US investor's apparent willingness to accept the pulling-the-printing-press-over-our-eyes-behavior, or the fact that Europe can only get worse and how that will spread contagiously to the rest of the world (directly via trade or indirectly via risk-aversion), his focus on the facts (especially with regard to the real state of the US economy as he describes it) makes it hard to disagree for even the most vehement long-only manager (is it any wonder we don't see him on CNBC that much anymore?). Biderman and Hunter discuss the signs of growing inflation, the need to get rid of the deadwood bankers, Europe's imminent demise, central banks' 'funny money' creation, and the need for Gold and TIPs in any portfolio, Charles is at his best as he makes friends (except with the bankers and politicians that he scoffs at) and hopefully influences people.
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| Examining the Long-Term Benefits of Gold Investing Posted: 02 May 2012 09:45 AM PDT Dow down, but only by a bit. Gold off, but only by a touch. Oil lower too, but just by a smidge. We don't go in for daily numbers, Fellow Reckoner. They're too volatile. Too capricious. Too whimsical. One minute, stocks are on an upward tear. The next they're crashing down again. Then you take a step back and realize the chart you're looking at tracks movements by the fractions of a point. It's like watching footage from a tiny camera, strapped to the back of an ant…at an IMAX theatre. Comfortably navigable ground suddenly becomes a terrifying terrain of Himalayan proportions. Who needs the headache, the vertigo or the motion sickness? A nose-on-screen perspective is fine — necessary even — if you are day trading in and out of stocks…but your editor has neither the discipline nor the stomach for such demanding activity. Besides, it's hard to really glean much from a second-by-second analysis of events. The sheer amount of information is simply too much for the human brain to process, much less to arrange in any meaningful kind of pattern. The price of gold, for example, might have been cheap a few minutes ago…when compared to the price a few more minutes ago. Then, compared to the price yesterday, it's cheaper still. About $8 bucks cheaper an ounce. (And even that number will have changed by the time you read this.) But so what? One year ago, you could have bought an ounce for about $180 less than today. That would seem to make today's price expensive, no? But wait. Five years ago, you could have bought two and a half ounces for the same price it costs you to buy just one today. And ten years ago, you could have bought five and a half ounces. Does that make gold cheap, or expensive? A buy, or a sell? It depends on your perspective. We've all wished we could go back in time and buy '90s shares of Apple, acres of unpopulated beachfront and unloved ounces of gold. Alas, time marches in one direction and one direction only. So where will gold be tomorrow…a year from now…next decade? Central bankers seem to be betting on a higher price — perhaps a much higher price — in the months and years ahead. Perhaps they're looking at the divergence between the paper gold market — largely dominated by exchange traded funds and futures — and the physical, stuff-you-can-touch-and-feel market. Reads the April letter from Sprott Asset Management (courtesy of Dave Gonigam over at The 5-Minute Forecast): "Although the paper gold price has been range-bound over the past month, the physical gold market has been undergoing staggering change… "It was revealed," write Eric Sprott and David Baker, "that Hong Kong gold imports into China totaled nearly 40 tonnes in the month of February, representing a 13-fold increase over the same month last year… There isn't a physical market on Earth that can withstand that type of demand increase without higher prices over the long run." Adds Dave, always hard on the story for The 5's loyal readers, "And that's not a one-off event; Chinese gold imports during the last eight months have grown nearly eight-fold year over year. And as we noted a few days ago, China's hardly alone: The IMF says 12 countries bought 58 tonnes last month — with Mexico, Turkey, Russia and Kazakhstan leading the charge." "Meanwhile," continues Dave, "Cheviot Asset Management reckons for every one bar of physical gold, there are 100 open positions in the 'paper gold' market." "The paper market for gold can continue its charade," conclude Sprott and Baker in their report, "but demand in the physical market will soon overpower it through sheer momentum — there's only so much physical to go around, and it appears that there are some very large buyers that are eager to take it." We have no idea where gold is ultimately going, Fellow Reckoner…only that, throughout history, the Midas Metal has proved a tremendously successful insurance against central banker folly. That's a fact onto which even the central bankers themselves appear to be cottoning. Don't let them beat you to the punch. Joel Bowman Examining the Long-Term Benefits of Gold Investing originally appeared in the Daily Reckoning. The Daily Reckoning, published by Agora Financial provides over 400,000 global readers economic news, market analysis, and contrarian investment ideas. Recently Agora Financial released a video titled "What Causes Gas Price to Increase?".
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| Dollar-Funding Costs Drop As Market Awaits Next ECB Move Posted: 02 May 2012 09:23 AM PDT 02-May (Dow Jones) — The cost of swapping euros into dollars has dropped to a nine-month low by one indicator, a sign of increased expectations for the European Central Bank to take new steps to shore up financial markets. The three-month euro-dollar cross-currency basis swap was quoted at negative 42.5 basis points Wednesday, its tightest reading since July 29. The indicator reflects the cost to banks borrowing dollars by lending euros; the closer the swap is to zero, the cheaper dollars become for European banks. [source]
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| Spain sounding out investment banks on crisis options Posted: 02 May 2012 08:37 AM PDT 02-May (Reuters) — Spain is sounding out investment banks including Credit Suisse, Goldman Sachs and UBS as it seeks a credible fix for its banks roiled by a collapse in real estate prices and now threatening the creditworthiness of Spain itself, sources familiar with the matter said. Spain has repeatedly said it will not ask for European Union or IMF money to solve the problem of its banks, hit by billions of euros in losses after the bursting of a decade-long property bubble in 2008. Instead, the central bank is consulting about setting up a holding company to value and sell off the real estate assets. [source] PG View: So let me get this straight; Spanish banks are about to go bust and must look within Spain (with guidance from investment banks) for salvation. The Spanish banks are in turn propping up the Spanish government by using cheap borrowed euros courtesy of the recent ECB LTROs to buy Spanish bonds. The same government that presumably is on the verge of bailing out the banks. What we have here are two drunks that without each other to lean on would collapse into heaps. With blood in the water, they are asking the sharks (investment banks) for assistance. This can't end well for Spain.
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| Gold Seeker Closing Report: Gold and Silver Fall With Oil Posted: 02 May 2012 08:29 AM PDT Gold fell to as low as $1646.61 at about 9:40AM EST before it bounced back higher midday, but it still ended with a loss of 0.49%. Silver slipped to as low as $30.398 and ended with a loss 1.03%.
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| Where Have All the Investors Gone? Posted: 02 May 2012 08:26 AM PDT May 2, 2012 [LIST] [*]"Crickets" in response to the rally of 2012: "Where are the investors?" asks Frank Holmes... Marc Faber suggests an answer [*]Chris Mayer with a sign that gold's on the verge of a revival [*]"OK, you are a nation"... Chuck Butler makes the euro's latest drop super simple [*]Two charts, two yawning gaps... and one huge opportunity you don't want to miss [*]A question about gold ETFs... an on-the-spot report from May Day in Paris... your last chance for discounted admission to our Symposium in Vancouver... and more! [/LIST] "Investors should be thrilled," writes U.S. Global Investors chief Frank Holmes, surveying an S&P 500 that's up 9.5% year to date. "But instead of cheers, the only sounds the markets are hearing are crickets." "Many have been asking, 'Where are the investors?'" Mr. Holmes reminds us that since Jan. 1, another $12 billion has exited U.S. stock mutual funds. About $100 billion went into bond funds. "This continues a mutual fund ou...
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| Caribbean Island Gold: Scott Jobin-Bevans Posted: 02 May 2012 08:12 AM PDT The Gold Report: Scott, you live and work on Hispaniola, which is divided into two countries, Haiti and the Dominican Republic (DR). The island is bisected by a mountainous spine of precious metal deposits, with part of the resource in Haiti and part in the DR. Majescor Resources Inc. (MJX:TSX.V) and Newmont Mining Corp. (NEM:NYSE) are players in the Haitian space. The biggest player in the DR is a joint venture between majority partner Barrick Gold Corp. (ABX:TSX; ABX:NYSE) and Goldcorp Inc. (G:TSX; GG:NYSE). Since 2009, Barrick has been developing the Pueblo Viejo mine, estimated to hold gold reserves of 23.7 million ounces. What is the history and significance of Pueblo Viejo? Scott Jobin-Bevans: In 1975, a private company called Rosario Dominicana opened up the Pueblo Viejo mine. It was the largest open-pit gold mine in the Western Hemisphere. A few years later, the Dominican government bought out Rosario and ran the mine. The operation went through the oxide cap in the early 19...
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| You Need a Money GPS--David Quintieri 02.May.12 Posted: 02 May 2012 08:09 AM PDT www.FinancialSurvivalNetwork.com presents: David Quintieri has written a new book entitled The Money GPS, which is intended to help Americans wakeup to the impending dangers of ceaseless money printing and the collapse that it will eventually bring about. All empires inevitably collapse, and it's difficult to tell whether they were brought down by poor economic policies or other factors. But, it is undeniable that monetary debasement has always helped exacerbate the collapse. Government officials, since time immemorial, always try to get something for nothing and always try to give more and more people a free lunch. But in the end, the results are always the same. Collapse! This time will be no different than the others. Go to www.FinancialSurvivalNetwork.com for the latest info on the Economy, Markets and Precious Metals.
This posting includes an audio/video/photo media file: Download Now |
| Gold Daily and Silver Weekly Charts - Coiling and Capping - Azalea Posted: 02 May 2012 08:08 AM PDT |
| The euro-zone crisis: Call it a depression Posted: 02 May 2012 08:07 AM PDT 02-May (The Economist) — IN DECEMBER, The Economist warned that without dramatic intervention the euro zone could face a new depression. Soon after, the European Central Bank sprang into action, averting an immediate financial meltdown through heavy lending to banks. The resulting calm looked like an opportunity for euro-area leaders to seize the moment and escape, once and for all, from crisis. Instead, complacency set in. The ECB's financial anaesthetic has not prevented a steady economic deterioration that now threatens to engulf—and perhaps end—the euro zone. Across the euro area, unemployment is worsening. The unemployment rate touched a new record high in March: 10.9%, up a full percentage point from the prior year. Of course, the pain is not evenly distributed. It is low and reasonably steady in the north but high and climbing in the south. Youth unemployment rates are staggering—over 50% in Greece and Spain, 36% in Portugal and Italy, rising sharply in all four. There is worse to come. Manufacturing activity is slowing sharply across the euro area, and the core is no longer immune… …The euro area is walking, eyes wide open, into depression. Led by its periphery, which is already there. [source]
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| Trust the fundamentals and keep accumulating metals, Turk advises Posted: 02 May 2012 08:02 AM PDT 4p ET Wednesday, May 2, 2012 Dear Friend of GATA and Gold: GoldMoney founder and GATA consultant James Turk tells King World News today that the fundamentals for the monetary metals remain strong, that despite their recent "correction" they're still up substantially on the year, and that regular accumulation is the best investment course. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/2_Tur... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Golden Phoenix Discusses Royalty Mining Growth Strategy Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project. "21st Century Business" has been airing for 15 years. Previous hosts have included Gen. Alexander Haig, Gen.l Norman Schwarzkopf, and Secretary of Defense Caspar Weinberger. Golden Phoenix appeared as paid programming on this broadcast. To view the program with Golden Phoenix, please visit Golden Phoenix's Internet site here: http://www.goldenphoenix.us/company-videos.html Join GATA here: Las Vegas Money Show Committee for Monetary Research and Education Vancouver World Resource Investment Conference Standard Chartered's Earth Resources Conference Hong Kong Gold Investment Forum New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Be Part of a Chance to Discover Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral showings as well as former mines at the property's northern and southern boundaries. -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600.
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| Central Bank Demand to Change Gold, Silver Markets and Prices Posted: 02 May 2012 08:00 AM PDT There is a tide in the affairs of gold that is changing the entire shape of the gold market. We are not just talking about the demand side but the supply side as well. Neither the gold market nor the gold price has factored in these changes yet. And the changes are designed to affect the gold market both unobtrusively and over time.
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Silver was drained from every vault except The Morgue's Tuesday, as massive silver inventory movements continue in COMEX vaults. 
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