Gold World News Flash |
- The Munger Games
- Spain: All Crisis, No Solutions for Savers
- Shadow Banking 101
- Peak Civilization: MIT Research Team Predicts Global Economic Collapse and Precipitous Population Decline
- David Stockman's investment strategy – “batteries, beans, water, gold..” Anything Bernanke Can't Destroy”
- Currency Debasement and Social Collapse
- The Dollar and Manipulation Control the Market
- Got Gold Report – Chart Appendix for May 6, 2012 GGR
- Munger games
- The U.S. Dollar is Rising
- Gann Angle Review SP500 and US Dollar
- New York Sun: The Munger Games
- Is Gold Hinting At Imminent Coordinated Global Intervention?
- Gold COT (CFTC - Commitment of Traders) for Period 4/25 - 5/1
- Silver COT (CFTC - Commitment of Traders) for Period 4/25 - 5/1
- Shanghai Futures Exchange starts a silver futures trade
- Richard Russell - Warren Buffett, Gold & My Secret Barometer
- Stephen Leeb: We Will See Three Digit Silver in a Couple of Years & Much Higher Gold Prices! Here?s Why
- Michael Pento Doubts U.S. Can Inflate Its Way Out of Debt ? Here?s Why
- Gold Silver and Mining Stocks Approaching a Major Bottom
- Krugman Finally Wins the Argument
- Get Rid of Your IRA, Don't put Gold or anything else in it
- Gold is limited government, which is more 'civilized' than the alternative
- At KWN, weekly metals review and Pento likes mining shares
- Is silver about to become the first element on the periodic table to become extinct?
- Gold Set for an Intriguing Week Ahead
- James Turk: From government to 'robberment'
- Experts see demise of dollar as world currency
| Posted: 06 May 2012 06:00 PM PDT from The Sun:
|
| Spain: All Crisis, No Solutions for Savers Posted: 06 May 2012 04:17 PM PDT Bullion Vault
|
| Posted: 06 May 2012 04:00 PM PDT from Azizonomics:
Not so today. James's $200,000 mortgage was packaged up with 1,000 other mortgages into a £180 million MBS, (mortgage backed security), and sold for an immediate gain by WTF Bank to Privet Asset Management, a hedge fund. Privet then placed this MBS with Sacks of Gold, an investment bank, in return for a $18 billion short-term collateralised ("hypothecated") loan. Two days later Sacks of Gold faced a margin call, and so re-hypothecated this collateral for another short-term collateralised $18 billion loan with J.P. Morecocaine, another investment bank. Three weeks later, a huge stock market crash resulted in a liquidity panic, resulting in more margin calls, more forced selling, which left Privet Asset Management — who had already lost a lot of money betting stocks would go up — completely insolvent. Confused? You should be.
|
| Posted: 06 May 2012 03:40 PM PDT  Researchers at one of the world's leading think tanks have developed a computing model that predicts serious implications for our way of life as a result of our incessant need to consume resources like oil, food, and fresh water. According to a team of scientists at the Massachusetts Institute of Technology, the breaking point will come no later than 2030, and when it does, we can expect a paradigm shift unlike any we have seen before in human history – one that will not only collapse the economies of the world, but will cause food and energy production to decrease so significantly that it will lead to the deaths of hundreds of millions of people in the process.The recent study, completed on behalf of The Club of Rome, an organization which issued it's own findings on 'peak everything' back in the 1970′s in a controversial environmental report dubbed The Limits to Growth (video), takes into account the relations between various global developments and produces computer simulations for alternative scenarios. Recent research supports the conclusions of a controversial environmental study released 40 years ago: The world is on track for disaster. So says Australian physicist Graham Turner, who revisited perhaps the most groundbreaking academic work of the 1970s, The Limits to Growth. Read more....... 
This posting includes an audio/video/photo media file: Download Now |
| Posted: 06 May 2012 03:00 PM PDT by Karen Roche and JT Long, MineWeb.com
David Stockman: We are in the last innings of a very bad ball game. We are coping with the crash of a 30-year-long debt super-cycle and the aftermath of an unsustainable bubble. Quantitative easing is making it worse by facilitating more public-sector borrowing and preventing debt liquidation in the private sector-both erroneous steps in my view. The federal government is not getting its financial house in order. We are on the edge of a crisis in the bond markets. It has already happened in Europe and will be coming to our neighborhood soon.
|
| Currency Debasement and Social Collapse Posted: 06 May 2012 02:59 PM PDT by Ludwig von Mises, Mises.org:
In Human Action, Ludwig von Mises explained how currency debasement contributed to the fall of the classical civilization of antiquity.] Knowledge of the effects of government interference with market prices makes us comprehend the economic causes of a momentous historical event, the decline of ancient civilization. It may be left undecided whether or not it is correct to call the economic organization of the Roman Empire capitalism. At any rate it is certain that the Roman Empire in the 2nd century, the age of the Antonines, the "good" emperors, had reached a high stage of the social division of labor and of interregional commerce. Several metropolitan centers, a considerable number of middle-sized towns, and many small towns were the seats of a refined civilization.
|
| The Dollar and Manipulation Control the Market Posted: 06 May 2012 02:28 PM PDT Talking about market manipulation always opens up a can of worms and sparks some interesting theories... And while everyone has their own views and opinion on this subject I thought I would briefly share the main points I pulled ... Read More...
|
| Got Gold Report – Chart Appendix for May 6, 2012 GGR Posted: 06 May 2012 01:42 PM PDT Vultures (Got Gold Report Subscribers) please log in to the Subscriber pages and navigate to the Got Gold Reports Section to view an appendix of charts for the video Got Gold Report released Sunday, May 6. The appendix contains the charts used which are not already linked in the subscriber section. To continue reading, please log in or click here to subscribe to a Got Gold Report Membership
|
| Posted: 06 May 2012 01:37 PM PDT Whenever Charlie Munger is sitting next to Warren Buffett and someone like Bill Gates, and he is involved in a more or less controlled situation, he seems to do just fine. However, whenever he is left to his own devices, you get results like his comments about gold in a recent CNN interview. Charlie, Charlie, Charlie — whatever are we to do with you? Charlie loves to talk his book, and if not for the fact it is so obvious (and that people give him a pass because of his age), Charlie would have been marched before the court of public opinion for his latest comments. But Charlie is, well. . .you know, Charlie just being Charlie. Forget the gaps in logic. Forget the ivory tower positioning. Forget the fact that he really doesn't know what he's talking about. Under Warren Buffet's wing, he can pretty much say whatever he wants to say and get away with it. This time though, in his zeal to sell shares in Berkshire Hathaway, he may have over-stepped his portfolio. "Gold," says Charlie, "is a great thing to sew into your garments if you're a Jewish family in Vienna in 1939, but I think civilized people don't buy gold, they invest in productive businesses." (Particularly, we are to assume, businesses touted by Berkshire Hathaway — that paragon of "civilized" Wall Street wholesomeness.) Nevertheless, risking its own claims to civilized behavior, here is what the New York Sun had to say about Charlie's comment: "The fact is that people who bought gold a decade ago were far better positioned than those who put their money in Mr. Munger's company, Berkshire Hathaway. For the value of a share of Berkshire Hathaway has collapsed over the past decade to barely more than 74 ounces of gold from the 238 ounces it was worth a decade ago." In the end Charlie's argument is that you do not need gold when you have someone like Warren Buffett managing your money. The record, however,does not support such heady, misdirected confidence. Uncivilized. . . . . . Indeed. I have always considered gold among the most civilizing of elements–the investment of kings and the king of investments. MK ,
|
| Posted: 06 May 2012 11:21 AM PDT US Dollar: It should increase short-term, especially against commodity currencies such as the Canadian and Australian dollars. The euro could instead decline below the important support line at 1.30. New political leaders in France and Greece ... Read More...
|
| Gann Angle Review SP500 and US Dollar Posted: 06 May 2012 11:19 AM PDT Hollande wins in France: A socialist, and they like to spend other peoples money (that's the truth), Germany wont like Hollande for that. Hollande solution will be to increase the ECB balance sheet at will. Great for gold if you are European. Read More...
|
| New York Sun: The Munger Games Posted: 06 May 2012 11:19 AM PDT 7:17p ET Sunday, May 6, 2012 Dear Friend of GATA and Gold: A New York Sun editorial today talks back probably better than anyone to the shallow disparagement of gold spoken the other day by Berkshire Hathaway's Charles Munger. The Sun's editorial is headlined "The Munger Games" and it's posted at the Sun's Internet site here: http://www.nysun.com/editorials/the-munger-games/87811/ CHRIS POWELL, Secretary/Treasurer 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... 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 Toronto Resource Investment Conference 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
|
| Is Gold Hinting At Imminent Coordinated Global Intervention? Posted: 06 May 2012 11:13 AM PDT While it is still early in the overnight session, initial indications are for a full spectrum Risk Off market. In fact, S&P 500 futures (ES) have not fallen this fast over a two- or three-day period since the third week of November last year. As many may remember - a few days of drops like this took ES from 1260 to 1136 in a week but more importantly was followed very quickly by a massive and coordinated Central Bank intervention that ripped ES over 6% higher in an overnight session - sparking the entire rally of the last six months as it appeared the central bank put strike had been dragged higher. Admittedly the two-day fall so far (while the largest in almost six months) is still small in context, it would appear the world is waking up to the true event risks of a debt-saturated fiat system going through its death throes. Back of the envelope would suggest we need to drop to 1285 or so on the S&P before the same kind of hit-the-big-red-central-bank-panic-button kind of move comes into play. Sure enough, Gold is only very modestly lower (-$3 at $1640) so far in the face of a rip higher in USD and broad liquidation everywhere else - perhaps the patience of sound money will be paid off once again. ES fell with a similar velocity in mid November (red rectangle) - soon after (green oval) the central banks of the world went crazy...
and sure enough - while the world is selling off pretty hard this evening, gold is - well - not...
Of course with Treasuries yet to open - perhaps Gold is the only safe place (especially with AAPL having collapsed in on itself in recent days). Charts: Bloomberg
|
| Gold COT (CFTC - Commitment of Traders) for Period 4/25 - 5/1 Posted: 06 May 2012 11:10 AM PDT Gold: Large speculators jumped in on 4,565 new longs and covered a mere -834 shorts for a net long position of 14,039,300 ounces, an increase of almost 500,000 ounces from the prior week. Read More...
|
| Silver COT (CFTC - Commitment of Traders) for Period 4/25 - 5/1 Posted: 06 May 2012 11:09 AM PDT Silver: Large speculators were bounced out of -2,058 contract longs and were forced to cover -1,171 shorts for a net long position of 77,920,000 ounces, another dramatic reduction of almost -5,000,000 net longs from the previous week. Read More...
|
| Shanghai Futures Exchange starts a silver futures trade Posted: 06 May 2012 08:16 AM PDT By Robin Bromby http://www.theaustralian.com.au/business/opinion/shanghai-futures-exchan... Silver and China are coming full circle. In the mid-1930s the academic journal Foreign Affairs noted how "the world was startled by the news that China had abandoned the silver standard" after foreign miners began dumping surplus metal into China. The silver buffs jumped on that one, predicting the end of big Western speculators manipulating the price, which so many of them believe has been occurring. However, silver still tends to behave as it did more than 80 years ago. That Foreign Affairs article noted "the ups and downs of silver have been more marked than those of any other commodity." Same now. China Daily noted "the price of silver has long been volatile," recalling last year it dropped 13 per cent in a single session. ... 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 Chinese commentators expect the silver contract to do well as most retail investors there prefer that metal to gold, because its minimum purchase value is lower. But silver is also imbedded in the Chinese psyche: It was long the basis of China's currency and in 1935 the Shanghai-based biweekly Finance and Commerce reported personal hoards of the metal in China were estimated at 1.27 billion ounces. China is not only the world's largest gold producer but is becoming the biggest importer too. We will wait and see whether the same import demand builds for silver. Shanghai futures trading could mean additional investment demand for silver, just as we have seen Chinese retail investors stock up on gold. But, more importantly, we might see Chinese corporates looking to pick up silver projects (and companies) abroad, just as they have begun doing with gold deposits and producers. If Standard Bank's bullion strategist was right in February, China has very large stockpiles of silver, estimated as being sufficient for 15 months' fabrication demand. So China does not need physical silver today -- but buying foreign silver assets is about demand in the years ahead. It seems all the gold and silver roads are leading to China. A note from London-based Libertas Capital on the state of the platinum sector contained this intriguing sentence: "Chinese demand for palladium jewellery fell to an eight-year low, indicating the fashion change toward gold may be permanent." News from the sector over the week included PanAust (PNA) pouring its first gold-silver dore, a semi-pure alloy of the two metals, from its Ban Houayxai project in Laos. PNA is planning output of 85,000 ounces of gold and 200,000 ounces of silver this year. White Rock Minerals (WRM) has made another silver discovery. Its Mount Carrington gold-silver project near Drake, northern New South Wales, already has a resource of 284,000 ounces of gold and 23.3 million ounces of silver. Drilling at the Mozart prospect within the project area has returned an intersection of 33m at 97 grams/tonne silver, Mozart being one of 10 near-mine and regional targets to be drilled this year. The Drake mineral field has been yielding precious metals discoveries since 1853. Work started up again in the 1960s and was explored by several parties, including the former CRA. Mount Carrington was acquired in 2008 by Rex Minerals (RXM), which has since made headlines with its South Australian copper-gold finds, WRM being demerged in mid-2010 to take over the NSW work. A private client adviser tells us all the signs are there's not much time left to get aboard the gold bandwagon before it heads off to $US2,100. "It is imperative that any buying of gold stocks is done early," he says. "Now that many market investors have reduced their gold exposure we are likely to see a much clearer move up in gold stocks as the oversold condition is unwound." An article from one of the more reliable US gold websites was attached, showing how well gold has done since April last year, being up 5 per cent. By contrast, silver has lost 35 per cent of its value over 12 months, the senior US mining indices are down by 25 per cent, and juniors by 46 per cent. Yet gold stocks have been taken out back and given a good kicking along with all the others. The damage done, for example, to the West African gold sector by investor pessimism has been dramatic. At Friday's close, Azumah Resources (AZM) was at 28 cents, compared with a 52-week high of 62 cents. Gryphon Minerals (GRY), which has 2 million ounces in Burkina Faso, closed at 92.5 cents against its high of $2.05, and Ampella Mining (AMX) at $1.03 is down from $2.46. And all these against a reasonable gold price and sound progress by the companies involved. Badly hit too has been Perseus Mining (PRU) even though it has runs on the board. It closed at $2.50 but has hit $4.05 over the past 12 months. Warwick Grigor at Canaccord-BGF terms PRU's performance "outstanding" with cash costs in the March quarter of $723 an ounce against guidance of $950/oz. "It is rare to find a company that has consistently delivered on its promises and reported only good news for such a long period," Grigor said in his Friday client note. 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 Toronto Resource Investment Conference 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...
|
| Richard Russell - Warren Buffett, Gold & My Secret Barometer Posted: 06 May 2012 07:51 AM PDT  With continued volatility in global markets, the Godfather of newsletter writers, Richard Russell, had some very interesting charts and warnings in his latest commentary. Here is what Russell had to say: "It's difficult to make people believe that there's a difference between an investment for a possible profit and a store of wealth. But rich people know the difference. When a man has made as much money as he can, he starts worrying about losing that money. That's the time when he wants to own "eternal stores of wealth."
This posting includes an audio/video/photo media file: Download Now |
| Posted: 06 May 2012 07:40 AM PDT The Western world is going to need even more easing, more money. All of this is incredibly bullish for gold longer-term. I do think you have to navigate the end of the euro before the next massive move in gold, but that's coming. It's possible that gold may get hit initially as the euro fails, but you have to buy it if it does. *So says*Stephen Leeb*in an recent*interview with*King World News*which has been provided by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!). This paragraph must be included in its entirety in any re-posting to avoid copyright infringement. Leeb concludes his remarks (they can be seen here in their entirety) by saying: Once gold gets going, people will be amazed at how fast the silver price moves. You are going to see three digit silver in the next couple of years. [Read: Stephen Leeb: Silver's Going to $60, $70, by the End of 2012 – Easy!]*Going forward, there simply isn't enough silver available to satisfy both the industrial demand an...
|
| Michael Pento Doubts U.S. Can Inflate Its Way Out of Debt ? Here?s Why Posted: 06 May 2012 07:40 AM PDT Michael Pento, president of Pento Portfolio Strategies, and Peter Tchir, founder of TF Market Advisors, talk about Nobel Prize winner Paul Krugman’s recommendation that policy makers should consider allowing slightly higher inflation as a way to spur the U.S. economy. Go here to see the video of this excellent discussion.*(7:34 minutes). Also go here to read a brief*article by Pento entitled The Inflation Lovers’ Spat in which he discusses the merits of the two lovers (Krugman and Bernanke) of the notion that inflation can cure everything that ails an economy who recently squared off in a battle over who adores counterfeiting the most. Related Articles: 1. Pento: Rampant Inflation Tomorrow Necessary to Avoid Deflationary Depression Today! Got Gold? There is an all out assault on the part of global central banks to destroy their currencies in an effort to allow their respective governments to continue the practice of running humongous deficits. In fact, the developed ...
|
| Gold Silver and Mining Stocks Approaching a Major Bottom Posted: 06 May 2012 05:43 AM PDT There is a pattern finishing in Gold, Silver and the HUI Amex Gold Bugs Index that is bullish, a sideways wave 4 descending triangle that suggests a bottom is fast approaching and a rally that lasts many months is likely to start within a month or two. Triangles are sideways consolidation patterns that let markets digest the previous large move, before continuing in the same direction the trend was headed before the triangle begins. In this case, that trend would be up. This is a pretty large triangle pattern, correcting a three year rally. We could see more decline in prices for another few weeks, then a bottom should arrive.
|
| Krugman Finally Wins the Argument Posted: 06 May 2012 05:27 AM PDT Today's world can be summarized in two sentences: Unless continuously fed with new credit, the global financial system will implode. And when confronted with this possibility, governments will always respond with new credit. This has been true at least since the Long Term Capital Management collapse in 1998, and in the ensuing 14 years the global financial markets and the world's governments have been partners in a dance in which crisis elicits monetary ease, which ignites an asset bubble, which bursts and elicits a new flood of credit. After each sequence the total amount of debt — and the system's fragility — is even higher than before. Through it all a few brave souls like Ron Paul have tried to stop the music and liquidate the debt, while other — far more numerous — authorities like New York Times columnist Paul Krugman have called for even more debt to produce higher inflation in order to liquidate the old debt. These worldviews — sound money to which the world must adapt versus flexible money that adapts to the needs of the economy — are mutually exclusive. Only one can win. With all due respect to sound money advocates, there was never any doubt about the outcome. When voters suffer, governments armed with a printing press will always respond with easy money. Today the debate ended. France has elected a socialist leader who will demand an end to austerity. The head of the European Central Bank has accepted that growth should henceforth take precedence over balanced budgets, and Fed chairman Ben Bernanke has made it clear that he's ready to step in with more easing if necessary. Elections in Greece, Ireland and elsewhere will solidify this consensus. So now begins the next, purely-inflationary stage of the process, in which governments and central banks abandon whatever restraints they once recognized and vow to do whatever it takes to put people back to work in the here-and-now. That means tax cuts, even bigger deficits, continued low interest rates and aggressive asset purchase programs. Whether this "works", i.e. whether the coming round of global devaluation produces higher employment with a minimum of instability, is an open question because we've never been here before. No society in history has owed this much money, and the forces of global debt liquidation have never lost. Kondratieff Winter has never been bypassed and converted to Spring. But the world has never been armed with an unlimited printing press either. See The Long Wave Versus The Printing Press. One thing that's certain is that today's tentative policies with one eye on deficits will soon be replaced by single-minded money printing, with a Krugman-esque goal of sustained 4% inflation. So now we know exactly what the world's governments want. The question is, can they get it?
|
| Get Rid of Your IRA, Don't put Gold or anything else in it Posted: 06 May 2012 05:14 AM PDT One of the categories is "retirement." There is a lot of interest in retirement issues. One of them is what assets should go into an IRA. I say "None." This is not a popular answer. I add, "especially gold." This is also unpopular. Over the years, I have published articles on my site explaining these answers. But some subscribers do not use the search engine to locate these articles. Others do not believe me. Still others talk it over with their accountants. Their accountants offer rival views. Then they post a question that reflects their accountants' views.
|
| Gold is limited government, which is more 'civilized' than the alternative Posted: 06 May 2012 03:08 AM PDT 11:19a ET Sunday, May 6, 2012 Dear Friend of GATA and Gold: "Civilized people don't buy gold," Berkshire Hathaway's Charles Munger told CNBC the other day. Echoing his partner, Warren Buffett, Munger said civilized people instead "invest in productive businesses," adding, "Gold is a great thing to sew into your garments if you're a Jewish family in Vienna in 1939." (See http://www.gata.org/node/11324.) As indignant as such a comment may make certain gold investors, most are probably accustomed to such disparagement by the financial establishment, and greater indignation should be directed toward the mainstream financial news media for not seeking out any rebuttal, even if the rebuttal is obvious enough. Perhaps first is that gold as money is the primary mechanism of enforcing limited government, and limited government is the first characteristic of civilized government. The distance between gold as money and unlimited fiat money is the distance between limited government and unlimited government, between democracy and totalitarianism. The trend toward unlimited government lately has become overwhelming, from the stupid imperial wars being waged by the United States every few years to the comprehensive surveillance undertaken under the "Patriot Act" to the "financial repression" that even a recent member of the Federal Reserve's Board of Governors complained about a few months ago (http://www.gata.org/node/10839). This prompts our friend Bill A. to chide Munger that the United States in 2012 is in danger of becoming like Vienna in 1939, insofar as anyone now is subject to the abuse heaped on Jews by the Nazis. Maybe it's not quite that bad yet, but then the capacity for such abuse is the sort of thing gold as money aims to prevent. And of course gold was the first thing the Nazi occupation seized from both conquered governments and individuals, as gold was, as it remains, a protector of individual liberty as well as a power that competes with government's power. CHRIS POWELL, Secretary/Treasurer 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.
* * * 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 Toronto Resource Investment Conference 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:
|
| At KWN, weekly metals review and Pento likes mining shares Posted: 06 May 2012 02:11 AM PDT 10:07a ET Sunday, May 6, 2012 Dear Friend of GATA and Gold: Over at King World News, Bill Haynes of CMI Gold and Silver and futures market analyst Dan Norcini provide the weekly precious metals market review: http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/5/5_KWN_We... And fund manager Michael Pento argues that mining shares are heavily discounted and constitute bargains: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/5_Pen... CHRIS POWELL, Secretary/Treasurer 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... 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 Toronto Resource Investment Conference 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
|
| Is silver about to become the first element on the periodic table to become extinct? Posted: 06 May 2012 02:07 AM PDT
|
| Gold Set for an Intriguing Week Ahead Posted: 06 May 2012 02:04 AM PDT Stockcharts.com has a technical tool that I’ve never used before – semicircle arrays which are intended to forecast Fibonacci retracement levels. In playing around with it, this is what I found:
|
| James Turk: From government to 'robberment' Posted: 06 May 2012 01:37 AM PDT 9:40a ET Sunday, May 6, 2012 Dear Friend of GATA and Gold: Writing at the Free Gold Money Report, GoldMoney founder and GATA consultant James Turk surveys the growing confiscatory nature of socialist-leaning governments and advises geographic diversification of assets for those who would prefer not to be confiscated. Turk's commentary is headlined "For Government to 'Robberment'" and it's posted at the FGMR Internet site here: http://www.fgmr.com/from-government-to-robberment.html CHRIS POWELL, Secretary/Treasurer 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 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 Toronto Resource Investment Conference 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...
|
| Experts see demise of dollar as world currency Posted: 06 May 2012 01:30 AM PDT By Doris C. Dumlao and Michelle V. Remo http://business.inquirer.net/57211/experts-see-demise-of-dollar-as-world... It may only be a matter of time before the US dollar gets replaced as the main currency in international trade, according to economists attending the meeting of the board of governors of the Asian Development Bank (ADB) in Manila. For many years, the dollar "has been almost the sole 'reserve' currency," banked on by the world economy, American economist Jeffrey Sachs said on Thursday in one of the forums held during the ADB annual event. The dollar, he said, "can't play that role anymore." Sachs added that he could not see how the US dollar could remain as the world's reserve currency when "the role of the United States in the global economy is diminishing." ... Dispatch continues below ... 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. Several finance experts echoed Sachs' sentiment, explaining that, with the greenback expected to weaken further, the world should turn to another currency to facilitate international trade and other commercial transactions. "Having another reserve currency other than the US dollar is only a matter of time. We don't know exactly when it will happen, but it will," Neeraj Swaroop of Standard Chartered Bank said in an interview at the sidelines of the ADB meeting. In the area of merchandise trading, Swaroop said, countries have actually started to use currencies other than the US dollar. Sachs also said that some countries could turn to more than one currency in maintaining their foreign exchange reserves. One currency being considered is the Chinese renminbi (RMB) which, according to HSBC, will inevitably become an international reserve currency. The renminbi, or yuan, has the potential to become an international reserve currency because China is continuing to post strong growth, becoming an important player in the global economy, Iwan Azis, ADB head for regional integration, said in the same forum. Also, China is pushing to make the yuan the world's reserve currency -- a move that is seen to hasten the replacement of the US dollar, Azis added. Already, British banking giant HSBC has mapped out a strategy to be a leading global player in the "renminbi banking" space. This global strategy has filtered into the Philippine market with the bank's introduction of RMB-denominated deposit and trade financing facilities, top HSBC officials said in a press briefing on Thursday. Spencer Lake of HSBC said the renminbi was increasingly becoming an important currency from a trade perspective. Lake was in Manila as head of the HSBC delegation to the ADB event. "If it were freely convertible today, it will be the second-largest currency in the world," Lake said, noting that China has started to liberalise currency systems. "It's part of our core strategy to adopt and put in place all of the infrastructure and products to embrace (the renminbi) as a future reserve currency," Lake said. Lake said the bank's strategy appeared to be gaining ground as indicated by a "significant" buildup of the RMB business in Hong Kong, Singapore, and other southeast Asian countries. "The world is getting ready to adopt it as a world currency," he said. "You'll see it as a more common language." "Reserve" currency, which is currently used to describe the US dollar, is the denomination that accounts for bulk of the foreign exchange reserves of most countries. A country taps its foreign exchange reserves whenever it needs to pay the costs of imported products and debts to foreign creditors. After the United States fell into a recession in 2009, the US dollar began to weaken against emerging market currencies. The trouble with hanging on to the dollar as the main reserve currency is that it is prone to depreciation given the prevailing economic troubles of the United States. Depreciation of the US dollar, in turn, may lead to a reduction in the value of a country's foreign reserves, experts said. Apart from the yuan, Sachs said other viable currencies that could replace the US dollar were the euro and the Japanese yen. * * * 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 Toronto Resource Investment Conference 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:
|
One would think that a man as wealthy, as smart, and as old as Charles Munger would have known better than to suggest that people who buy gold are uncivilized. "Gold is a great thing to sew into your garments if you're a Jewish family in Vienna in 1939," Mr. Munger told Rebecca Quick of CNBC, "but I think civilized people don't buy gold, they invest in productive businesses." The fact is that people who bought gold a decade ago were far better positioned than those who put their money in Mr. Munger's company, Berkshire Hathaway. For the value of a share of Berkshire Hathaway has collapsed over the past decade to barely more than 74 ounces of gold from the 238 ounces it was worth a decade ago.
The Gold Report: David, you have talked and written about the effect of government-funded, debt-fueled spending on the stock market. What will be the real impact of quantitative easing?
[In a 
| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment