Gold World News Flash |
- GoldSeek.com Radio Gold Nugget: Peter Grandich & Chris Waltzek
- Silver Update
- Casey Research Summit Special Report: Reality Check or Checkmate?
- Extraordinary delusions or the madness of machines
- A tale of two stocks…and two economies
- Rick Rule’s Primer on Contrarian Speculation
- Gold Resource Corporation First Quarter Conference Call
- Chris Martenson: Peak Oil Will Change Life As You Know It & So Will the Coming Collapse
- Schiff - These Stocks Can Go Up Over 100% In 12 Months
- Gold Readies For Storm
- CNBC lets Eric Sprott talk about gold market manipulation
- A silver bear turns bullish
- World Bank Wants a Monetary Value on Natural Ecosystems as Key Step on Road to ‘Green' Economic Growth
- Accumulation/Distribution Trends in Gold and Silver
- John Taylor On Why "The Ground Is Not Solid Beneath Our Feet"
- The Japanese Are Dumping Their Gold
- SHFE sets Silver futures benchmark at 6,166 yuan/kg
- In The News Today
- GDP Growth: The Civic Duty of Every US Consumer
- Gold Breaks MAJOR Trendline Support
- Jim's Mailbox
- Rick Rule's Primer on Contrarian Speculation
- Silver Contracts Coming to Shanghai Futures Exchange
- Australia's Constitution – The reason why I haven't paid any income tax for 15 years.
- Black Gold market may reappear in Vietnam
- Spanish 10 yr bonds rise to 6.08% yield/Italian bonds 5.60%/Nationalization of Spanish Bankia/
- Rick Rule's Primer On Contrarian Speculation
- Hathaway – Complete Flush in Gold & Savers to Get Screwed
- China Investment Corp. stops buying European government debt
- The Gold Price Tumbled Again With an Ominous Low of $1,580.54 Closing $1,593.70
| GoldSeek.com Radio Gold Nugget: Peter Grandich & Chris Waltzek Posted: 10 May 2012 02:00 AM PDT GoldSeek.com Radio Gold Nugget: Peter Grandich & Chris Waltzek
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| Posted: 09 May 2012 08:34 PM PDT
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| Casey Research Summit Special Report: Reality Check or Checkmate? Posted: 09 May 2012 08:15 PM PDT One special session at the April 27–29 Casey Research Recovery Reality Check Summit wasn't on the agenda—a private panel for The Gold Report readers with three of the premier summit speakers: Global Resource Investments Founder and Chairman Rick Rule, Casey Research Senior Editor Louis James and Casey Energy Opportunities Senior Editor Marin Katusa. You won't pin them down to a timeframe, but they're looking forward to a buyer's market, as equity prices fall and volatility increases.
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| Extraordinary delusions or the madness of machines Posted: 09 May 2012 08:11 PM PDT Counter-intuitive forces are at work in the gold market. Europe is moving toward dissolution – erratically to be sure but inevitably nevertheless. Intuition tells us that gold should be moving higher under the circumstances, after all, we are talking about the beginning phases of a major currency, and perhaps economic, collapse.
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| A tale of two stocks…and two economies Posted: 09 May 2012 08:09 PM PDT Although IAU on Tuesday made its lowest close since the first trading day of 2012, the relative strength line didn't go lower. This is a small improvement to be sure, but a positive step in the right direction in any case. This early sign of relative strength isn't good enough to hang our hat on and issue a buy signal for gold, but it does suggest that given perhaps a few more weeks, the gold market could be strong enough to begin a new bull run.
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| Rick Rule’s Primer on Contrarian Speculation Posted: 09 May 2012 08:05 PM PDT In an interview with Louis James, Rick Rule provides an excellent summary of what contrarian speculation investment is and makes a powerful case that the current metals climate means gold stocks are the play to make.
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| Gold Resource Corporation First Quarter Conference Call Posted: 09 May 2012 07:43 PM PDT Gold Resource Corporation (GORO) today announced the timing of its Q1 2012 earnings CEO conference call scheduled for May 11, 2012. Gold Resource Corporation is a low-cost gold producer with operations in the southern state of Oaxaca, Mexico.
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| Chris Martenson: Peak Oil Will Change Life As You Know It & So Will the Coming Collapse Posted: 09 May 2012 04:57 PM PDT
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| Schiff - These Stocks Can Go Up Over 100% In 12 Months Posted: 09 May 2012 04:17 PM PDT  With tremendous volatility in global stock markets, as well as commodities, today King World News interviewed Peter Schiff, CEO of Europacific Capital, to get his thoughts on what lies ahead. Schiff told KWN there are a lot of reasons for the markets to continue lower. He also said, "The big picture is all bullish for gold." But first, here is what Schiff had to say about the situation in Europe: "Obviously the knee-jerk reaction is that it's bad for Europe. They are going to have more deficits and more euros printed. The politicians, it's easy to criticize in order to get elected, but once you get in, sometimes you have to be more pragmatic."
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| Posted: 09 May 2012 03:31 PM PDT Below is a link to an interesting read. Lots of rumours and possible conspiracy theory but if even part of what is said is true we could be on the cusp of some great moves up in gold. I don't think anyone can argue that the Chinese are very likely picking off physical at current prices, the mystery is how much true pressure is being put on the gold cartel. See like here, it's a long read but if time is short go to the subheading "Gold readies for storm", near the end of the article.
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| CNBC lets Eric Sprott talk about gold market manipulation Posted: 09 May 2012 03:23 PM PDT 11:20p ET Wednesday, May 9, 2012 Dear Friend of GATA and Gold: CNBC's "Fast Money" program today interviewed Sprott Asset Management's Eric Sprott and didn't pull the plug when he started to talk about efforts by central banks and bullion banks to suppress the gold price with paper gold as the rest of the financial world blows up. Thus the gold price manipulation story continues to creep into polite company. The excerpt from the interview posted at CNBC's Internet site is 10 minutes long and you can find it here: http://video.cnbc.com/gallery/?video=3000089121&lay=1 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
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| Posted: 09 May 2012 03:17 PM PDT It’s Clear – Just Upside Down
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| Posted: 09 May 2012 03:06 PM PDT [Ed. Note: So the Rothschild-Elite controlled IMF & World Bank want to enslave humanity, we already know that. The question is, are they going to value the world's ecosystems in fiat dollars or gold? Just curious.] by Fiona Harvey, The Guardian:
Placing a monetary value on natural ecosystems is a key step on the road to "green" economic growth, according to the World Bank, which published a report on green growth on Wednesday at a conference in Seoul, Korea. By making such estimates, countries can develop policies that ensure the pursuit of economic growth does not occur at the expense of future growth potential, by destroying natural assets such as water sources or polluting air, rivers and soil. Rachel Kyte, vice president for sustainable development at the bank, said that the patterns on which economic growth had been achieved in recent decades were unsustainable, because of the amount of environmental degradation involved.
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| Accumulation/Distribution Trends in Gold and Silver Posted: 09 May 2012 02:27 PM PDT from Jesse's Café Américain:
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| John Taylor On Why "The Ground Is Not Solid Beneath Our Feet" Posted: 09 May 2012 01:56 PM PDT The Ground Is Not Solid Beneath Our Feet Investors should be questioning their positive assumptions after the events of the past two weeks. Things have changed a great deal and rumors abound on how the authorities plan to support the market now. At the end of last month, only ten calendar days ago, the perky US equity market, the placid foreign exchange scene, calm credit spreads and rock-bottom volatility implied to us and anyone paying even cursory attention that the world was happy with the way things were turning out in 2012, no matter what the Mayan calendar might be saying. But now, after the Socialist victory in France, the Greek electoral disintegration, the poor US employment numbers and the disastrous European PMI readings the market is very uncertain with the EUR/USD below 1.30, Spanish 10-year Bonds back over 6.00% and equity markets down sharply around the world. Our cyclical analysis finds this weakness very appropriate as we should be in a decline. A look back at the letters of the last two weeks will give you a hint as to our state of mind. I am clearly worried that we could be at the start of a serious meltdown in the global markets, not the same as 2008 and not like the flash crash of 2010, but perhaps incorporating some of the characteristics of both. At the same time, as a manager of corporate risk and an absolute return manager, I have to be ready for the government intervention that is sure to come. As you might guess, we are not too optimistic about the Eurozone authorities' chances of final success, but the bad news will continue and eventually they will do something dramatic. The road to hell is paved with good intentions of governments, but they make for a volatile ride. We know we will be wrong on many counts, but our function as analysts is to lay out our view of the next few months, so here it goes: We still believe Barack Obama is not likely to be re-elected this November as US unemployment is much more likely to be above 9% rather than below 8%. Although the US economy far outperformed our expectations during the first quarter, nothing has changed and 2012 will be a recession year with the Eurozone registering terrible numbers far exceeding what the market seems to expect. Our estimate is below 2% even counting a generally flat performance in Germany. The real issue is Europe, not the US or Asia, but the drag spreading from its weakening banking structure will impact global trade and the animal spirits of the entire world. The picture is bad, but our cyclical work implies the global markets should bottom in – or risk will be off through – the period between September and November. The ferocity of this decline might be muted dramatically if the European authorities can figure out a way to minimize the North-South divisions that are tearing the Eurozone apart. What makes the ground so uncertain beneath our feet is the reality of our current position: interest rates are at zero, fiscal budgets are stretched to the maximum, total national financial liabilities are at a breaking point and national monetary bases are a multiple of the highest they have ever been. Quite simply, there are no good borrowers. No one wants to loan anyone any money. Fiscal consolidation must be carried out, and that tends to mean recession and loss of wealth, which will negatively impact financial markets. Although this can theoretically be an orderly process, the most likely course is not a fair parceling out of pain, but a frantic protection of selfish interests in which those with the upper hand will punish those that are weak. Currently, the crunch is focused on Greece and the other indebted Eurozone countries, but their agony is almost certain to radiate throughout Europe and the world, unless they are given a kindly helping hand. Unfortunately, we are almost certain this will not happen. Not the IMF, Bernanke's QE3 or any BRIC miraculous assistance will put this issue right, and the risk-off fervor will take global equities down, stop global credit growth and strengthen the dollar.
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| The Japanese Are Dumping Their Gold Posted: 09 May 2012 01:50 PM PDT from Testosterone Pit.com:
Alas, they're dumping it. And when they're dumping it faster than internal demand can absorb it, the surplus is exported and shows up in the trade statistics of the Ministry of Finance: in fiscal 2006, Japan became a net exporter of gold for the first time since the ministry started tracking it in 1988. Net exports rose every year and built into a crescendo in fiscal 2011, ended March 31, when they surged to 135 tons, an astounding 61% jump from fiscal 2010. Read More @ TestosteronePit.com
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| SHFE sets Silver futures benchmark at 6,166 yuan/kg Posted: 09 May 2012 01:45 PM PDT from Bullion Street:
In a statement, SHFE said silver futures contracts launched include AG1209, AG1210, AG1211, AG1212, AG1301, AG1302, AG1303 and AG1304 and daily gain or loss limit has been temporarily set at 7%, which is doubled for the first trading day. Transaction fees have been temporarily set at 0.008 percent of turnover. No charges will be induced for closing intraday positions on the first day of trading.
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| Posted: 09 May 2012 01:29 PM PDT Jim Sinclair's Commentary Good words for all of us who know gold is right. If you can keep your head when all about you Are losing theirs and blaming it on you; If you can trust yourself when all men doubt you, But make allowance for their doubting too: If you can wait and Continue reading In The News Today
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| GDP Growth: The Civic Duty of Every US Consumer Posted: 09 May 2012 01:28 PM PDT Bill Bonner View the original article. May 09, 2012 11:27 AM No panic on Wall Street — yet. Gold still over $1,600. But watch out. Our hunch is that when people come to their senses…they will run for the exits. Europe's shifting from austerity to "growth"…which really means more debt. America's growth is phony — with fewer jobs today than when the '08 recession began. More people are below the poverty line. More people on food stamps. And more people so broke they can't even go broke. CNN Money reports: This year, hundreds of thousands of Americans are expected to be too broke to file for bankruptcy. The average cost to file for Chapter 7 bankruptcy protection, the most common form of consumer bankruptcy, is more than $1,500, according to recent research submitted to the National Bureau of Economic Research. As a result, anywhere between 200,000 and one million consumers are estimated to be unable to afford that steep cost this year. The research, conducted by a gr...
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| Gold Breaks MAJOR Trendline Support Posted: 09 May 2012 01:28 PM PDT courtesy of DailyFX.com May 09, 2012 01:49 PM Weekly Bars Prepared by Jamie Saettele, CMT Gold has broken below a major trendline that extends off of lows in 2008, 2010, and 2011. Focus is now on support from May 2011 and resistance from December 2010 at 1450/80. The bearish channel will come into play on a break below the December 2011 low. 1615 is resistance. The break is valid against 1650. Ideas: short, stop 1650...
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| Posted: 09 May 2012 01:26 PM PDT We must, indeed, all hang together, or assuredly we shall all hang separately." –Benjamin Franklin Jim, This is explains the concerted actions of the world's central bankers and their agents in their efforts to suppress the price of gold. They must pretend that there is more gold value in their paper currency, less Continue reading Jim's Mailbox
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| Rick Rule's Primer on Contrarian Speculation Posted: 09 May 2012 01:20 PM PDT by Chris Powell, Casey Research: In an interview with Louis James, Rick Rule provides an excellent summary of what contrarian speculation investment is and makes a powerful case that the current metals climate means gold stocks are the play to make.
[If you weren't present at this timely summit, you can still learn the details of Rick's current investment strategy, plus much, much more. Get the actionable advice and economic perspectives and insights of 31 financial luminaries to make sure you don't miss the opportunities ahead.] Louis James: Ladies and gentlemen, welcome. Thank you very much for tuning in. We are at the Casey Research Summit – the reality check on the recovery of the economy. One of our luminary speakers who is always at our events, Rick Rule, is with us here now. We'd like you to give us the quick tour of your talk today and we'll go from there.
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| Silver Contracts Coming to Shanghai Futures Exchange Posted: 09 May 2012 12:30 PM PDT by Michelle Smith, Silver Investing News:
Although it is a leading producer of silver and one of the top consumers of the metal, China has been largely sitting on the sidelines, taking cues from London and the US when it comes to silver prices. However, the Chinese now want more influence in the pricing of silver and want a tool to tame the volatility. Regulators seem to believe that silver futures are key to accomplishing these goals. Read More @ SilverInvestingNews.com
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| Australia's Constitution – The reason why I haven't paid any income tax for 15 years. Posted: 09 May 2012 12:17 PM PDT By Marissa Calligeros | Brisbane Times, Brisbane, Australia - It's the Constitution — No Bullion A Queensland driver has tried in vain to argue it is "impossible" for him to pay a speeding fine because the Australian constitution states the government can accept only coins made of gold or silver as payment for debts. Indeed, section [...] 
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| Black Gold market may reappear in Vietnam Posted: 09 May 2012 12:15 PM PDT from Bullion Street:
Analysts said transactions are sharply down while a long-existing difference between domestic and global prices has almost closed. They said country's gold bullion market has gone very quiet as it waits on a Government decree vesting management of gold trading in the central bank to take effect on May 25. Under the decree, from May 25, 2012, the use of gold in payment will be considered a behavior of violating the laws. The State will have the exclusive right for trading gold, while commercial banks will act as its agents.
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| Spanish 10 yr bonds rise to 6.08% yield/Italian bonds 5.60%/Nationalization of Spanish Bankia/ Posted: 09 May 2012 12:14 PM PDT by Harvey Organ, HarveyOrgan.Blogspot.ca:
As I warned you last night, the plight of the Euro breaking 1:30 will cause many bourses and commodities southbound and that is what happened today. No doubt we were witnessing massive margin calls early this as investors dumped equities and in their haste they threw out the baby (gold and silver) with the bath water. Gold closed down by $10.30 to $1593.70 after hitting a low of $1577 on the day. Silver rebounded from sub 29.00 dollar silver to finish the comex session at $29.20 down 21 cents. Even though the metals were down today, the gold and silver equities were much stronger which indicates that gold and silver will rise tomorrow. Early this morning, the Spanish bond yield rocketed over 6% and the Italian10 yr bond yield rose to 5.6%. This sent most of European bourses in the red. We had a major Italian bank in Siena in trouble today as prosecutors were examining the books on a takeover of a bank in 2007. Read More @ HarveyOrgan.Blogspot.ca
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| Rick Rule's Primer On Contrarian Speculation Posted: 09 May 2012 11:52 AM PDT Submitted by Casey Research Rick Rule's Primer On Contrarian Speculation In an interview with Louis James, Rick Rule provides an excellent summary of what contrarian speculation investment is and makes a powerful case that the current metals climate means gold stocks are the play to make. Louis James: Ladies and gentlemen, welcome. Thank you very much for tuning in. We are at the Casey Research Summit – the reality check on the recovery of the economy. One of our luminary speakers who is always at our events, Rick Rule, is with us here now. We'd like you to give us the quick tour of your talk today and we'll go from there. Rick Rule: Sure. My role here wasn't to do economics; that's not what I am. I am a speculator, and so I talked about where we are in the context of where people are with their own portfolios – in particular portfolios that are junior-resource centric – which is what I think most of your audience was interested in. Louis: Right. Rick: And my point was that there were some good forces in the market: lots of cash on the sidelines; some good work being done; and basically a good market for resources as a consequence both of population growth and demographic growth at the bottom of the economic pyramid, and in terms of historical supply constraints. And there were some bad factors in the market: excessive debt in the system; way too much government interference; very large social takes on a global basis, beginning to impact extractive industries. And there were some truly ugly factors – the ugly factors in particular being poor corporate as opposed to share market performance, and the unfortunate truth that probably 80% of the junior resource stocks on a global basis are valueless. So the sector itself is in perma-decline. Although the performance – as you know from being affiliated with Casey – of the top 10% of the sector can be extraordinary. It often serves merely to focus attention on the worst companies in the sector. And then I went on to say: "This is the set of circumstances that exists, now what can we do with this?" The fact that the market has fallen, by some estimates, by half suggests by other estimates that the market is approximately half as risky as it used to be. Price has taken care of some of the risk that existed in the market before. The second factor that we need to take into account on a going-forward basis is the fact that the industry itself didn't finance as aggressively last year as they did the year before, but although they didn't raise new capital, they didn't stop spending. I call this financial roulette. The issuers are engaged in this rather circular exercise, which is very risky: They're spending money to attempt to get results, to generate excitement, to raise their share price, to raise money. So they're spending money to raise money, which is a very, very risky strategy. Most of the issuers will need to come back to market this year, and they're coming into a market that's in total disarray. The buyers that existed for the last 10 years – the small hedge funds and the open-ended hedge funds – are facing massive redemptions as we speak, so rather than being a source of new capital, they're a source of the selling that you see weighing down the market. We are going to have to, as investors, invest with a view to a different buyer on a going-forward basis, and the companies who are issuing equity are going to have to find a different class of buyer for the new financing. So we're in a time of real change and real turmoil – and hence a time of real opportunity. My suspicion is that with so many issuers having to access the market and so few market participants that have the capability of differentiating between good and bad issuers, that just as the bad issuers were swept up with the good issuers in 2010, the good issuers are being swept out with the bad issuers in 2012. It's my supposition that for investors who are willing to work hard, take advice, and segregate viciously in terms of allocation of capital, that this will be the best private-placement investment period that we have enjoyed since 2002. Louis: Okay, so this is one of the key takeaways: This is the year for private placements. You put that quite eloquently. A more simple way of summarizing it is that there are going to be a lot of desperate guys out there and they're going to be offering a lot more attractive terms – to people who are willing to wait for that to come to them. That's a good thing. For the nonqualified investor out there – for the more general person – can you talk a little bit about being a contrarian or being a victim? Because right now there are a lot of people out there that I am… I don't fear a lot, but I'm afraid that a lot of good people are about to become victims just at the moment that they should be taking advantage of opportunities. Rick: I think that's accurate. I've been in the business now 35 years, and I have seen these periods several times. I guess this is going to be one of your first descents into one of these things; and it is tragic. Some very, very nice people use their heart rather than their head and sadly they buy in periods like 2010. They buy at the top and sell at the bottom. That's the nature of things. There's no requirement that that be the nature of things, and I suspect that your audience self-selects more towards better performers because they've chosen to invest the time and the money to get recommendations from Casey Research, and in fact, in many cases do further research themselves. So I suspect that the universe that you're familiar with will be less victimized by this than others, but they certainly won't be immune to it. Emotions run through all of us, myself included. It is very important to bear in mind specifically what you said. I have said for many years that you're either a contrarian or a victim. It's a nice catch phrase, and it's also true. This is a cyclical, capital-intensive business. There are long periods that are required to address supply-demand imbalances both ways; and so market declines last a long time. Market advances can also last a long time and be very, very dramatic. What's important is that good markets are for selling and bad markets are for buying; it's counterintuitive. Your perception of how events will play out in the future is determined mostly by your experience in the immediate past; and if the last three investment decisions that you've made have rewarded you – if you feel good about your precepts – you begin to do something natural, which is confuse a bull market with brains, and you begin to become very aggressive. If your last three decisions – irrespective of whether they were well thought out – haven't played out so well, you become cautious. What you need to do is teach your brain to overwhelm or overrule your heart and understand that cheaper is better and more expensive is less good. It's difficult, but it must be done. Many things that are rewarding are difficult. Louis: Very good. Okay, so resources are broad; are there any focuses within that? Are you more interested in metals, precious metals, oil and gas – what's your favorite flavor right now? Rick: A lot of it is personal; and with me it's precious metals. The reason for that is that I'm a reasonably well-known gold broker, and in 2010, as a consequence of the pricing, I was way underweight gold stocks. I was afraid because if gold had broken out, my clients would, for some reason, probably have strung me up. I would like to address those imbalances. It's very seldom that you see an opportunity to buy the junior gold sector – or the senior gold sector – at reasonable prices. This is the first time that I have seen the sector at reasonable prices relative to the price of gold since 2004. These are rare events, and in my experience in my career, when you have the opportunity to build positions in high-quality precious metals companies at reasonable prices – not cheap prices, but at reasonable prices – you're well advised to take that opportunity. So my principal focus is in the gold, silver, and platinum sector, in the precious metal sectors as we speak. That isn't to say that I don't like some other sectors, including broadly the energy sector, but I have more opportunities spread over a decade to be in the energy business. It's a much bigger business – it's the business I'm from – and in my experience opportunities to participate efficiently in the precious metals sectors are rare and this is one. Louis: Okay, that's a great point for everybody to remember. Is there a timeframe? I know Doug hates crystal-ball questions and you probably do just as much – but you did say from the podium that you expect we're probably going to see more bearish emotion over the months ahead as the summer is probably going to be a "sell in May and go away" type summer. I have to say my gut feeling, for whatever it's worth is in harmony with that, but it could go any number of other ways. There could be black-swan events that send gold screeching up. Bets are off at that point. But even if that doesn't happen, I've also encountered more mainstream people now talking about gold in an informed way that's really surprised me. I had dinner with a friend a couple of nights ago, a more mainstream investor who bought Newmont because of the dividend and because he was aware that commodity prices have held on, but the gold stocks – or gold in particular has held on, but the gold stocks are all selling off, and to him that was an opportunity. "Wow, the commodity is still there, but the stocks are cheaper, that looks good." So maybe that's just one data point, but it is a contrary data point. If there is an awareness percolating out there in broader markets that this is an opportunity as you've just said, could that contravene the "sell in May and go away" wisdom; and could we actually see greed take over from fear in the marketplace? Rick: Yes and yes. I mean, the most important thing about the phenomenon that you describe this person observing is that it's true. Many people observe phenomena that aren't true, in which case their reaction to it is usually fairly short-lived, but the phenomenon that you described is accurate. And the phenomenon that you yourself observed, which is a greater understanding of the gold story among the broader investing public, is also true. Both of those are very bullish. Another thing that's bullish is that within the community the sentiment is so negative that it may be that everybody is talking their books and all the selling that they see coming has already occurred. I don't believe that to be the truth because I see fund flows out of small funds and fund flows out of mutual funds, so I see logical selling pressure, not buying pressure, but everybody sees the same thing and we may all be wrong. In terms of what could turn it around, I see three things. You named one of them: an anomalous black-swan economic event that causes the "catastrophe insurance" trade in gold to come back to the fore. There's no more powerful economic motivation in the world than fear; the other one of course being greed. The useful thing about gold in terms of a bull market is that gold plays to both of the primary investment motivations, so the fear buyer stimulates the greed buyer and the greed buyer reinforces the precept of the fear buyer. And when you get a real gold bull market, it ratchets back and forth between those buyers on the way higher. So that's one thing, an anomalous black-swan event. The second thing is that the very low prices relative to historic norms that we are seeing in the precious metals business and the incredible investment in precious metals productive capacity we've seen in the last 10 years mean that we are in the early stages now of a merger-and-acquisition cycle. Markets work, and these low prices will beget takeovers, and the takeovers will add both liquidity and hope to the sector. And the third is – and we're ignoring this completely in this market – is that we're very early on in a discovery cycle. And as much liquidity and hope as takeovers add, a big discovery is like a takeover on steroids. Louis: The market always loves a discovery. Rick: An event like Arequipa that goes from $0.30 to $30 in 19 months is the type of thing that really gets people's pulse racing; and I think it's unlikely that we won't have a major discovery in the next 12 months. There's too much money being spent in good places by too many good people. That's going to be, from my point of view, the real black swan. Louis: That's a pretty optimistic, positive statement there. Rick: I know. Louis: Almost a Casey-style declarative statement. Rick: I know a lot of good geologists. I don't have a lot of talent in the world, but I'm pretty good at hiring geologists; and I know a lot of really good geologists who are doing really good work. Exploration takes a long, long time. People want exploration results in 90 days, but what people want doesn't matter. We have been funding the exploration business now aggressively for 10 years, and we're funding increasingly good people who increasingly have the experience to conduct exploration in the junior venue rather than as part of Barrick or Newmont or some larger company, and I think we will be surprised by discovery in the junior sector. Louis: Okay, discovery versus development: if we're looking at new buyers, that tends to put the spotlight on development stories, de-risking existing discoveries, getting ready for that takeover and/or production. But I also know that you like the prospect-generator model. Have you shifted from investing more in prospect generators to developers now, or– Rick: In normal markets, I have focused on earlier-stage exploration because it's less popular. I always choose sectors that I have to myself. I can't always win a debate with 50 participants, but I can always win a debate where there's only one participant. So, over 30 years I have done extremely well investing in exploration – in early-stage exploration – because I was the only one in it. And I have patience; I am willing to finance and continue to finance a company for five or six or seven years. I invest in process. Investing in process is how you get a big position, in something like ATAC at $0.10 and see it go to $7. There's no other way to do it. You get in on the ground floor by creating the ground floor, so I love that space. Right now you are seeing the broadest discrepancy between the valuations established in scoping and pre-feasibility studies to enterprise value that I've seen in 35 years in the business. As a consequence of the opportunity available to me in the development space, given the fact that the market's on sale, I have diverted some of my traditional focus on earlier-stage exploration to come into a sector that normally is denied to me by wealthier, I would say, less-rational participants. They just seem to have gone on strike, and so I've decided to show up and go to work. I see as a consequence of the values that have been established, a very, very active merger-and-acquisition market in the next 18 months. This is one of the reasons why despite the fact that I think the market is going to continue to decline, I've become a fairly aggressive investor. While I think the overall market is going lower, I think there's going to be a dozen or 20 takeovers with 35 to 50 to 60 percent premiums, and I think our organization with its incredible investment in technical people will have the ability to differentiate. We're not going to get everything that is taken over. Some of the things that we think are going to be taken over won't be, but I think that it will be an activity which will yield us substantial rates of return on substantial amounts of capital. In other words, we'll be able to deploy significant amounts of capital for high internal rates of return, and opportunities to do that in a market don't come very often. Louis: That's really interesting. Let me address directly the readers – I'm sorry, viewers. There's a lot in there, that was an earful. Something that Rick said is really worth focusing on: discipline. Listen to what he said. This is a sector where buyouts, the takeovers of development companies make sense. They make money for people. But when a lot of people liked it – what does that mean? It means that prices were up. Rick didn't buy. Investing in developers makes sense, it's a good business plan, but he didn't buy because other people were pushing the prices up. Now, when it's not loved, nobody wants to hear about it, Rick is moving in. This is contrarian discipline, and this is how you become successful rather than roadkill in this sector. So hats off to you for that, and thank you very much for your time. Rick: My pleasure, Louis, I enjoyed the process.
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| Hathaway – Complete Flush in Gold & Savers to Get Screwed Posted: 09 May 2012 11:43 AM PDT from KingWorldNews:
John Hathaway Continues @ KingWorldNews.com
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| China Investment Corp. stops buying European government debt Posted: 09 May 2012 11:01 AM PDT By Andres Martinez http://www.bloomberg.com/news/2012-05-09/china-investment-stops-buying-e... China Investment Corp. has stopped buying European government debt because of an economic crisis on the continent, though it continues to look for new investments there, said CIC President Gao Xiqing. "What is happening in Europe right now is of course of concern," Gao said yesterday in an interview in Addis Ababa, Ethiopia, during the World Economic Forum on Africa. "We still have our people looking at opportunities in Europe, even though we don't want to buy any government bonds." European leaders are struggling to contain a debt crisis that has entered its third year and led to bailouts of Greece, Portugal, and Ireland. Officials have pledged to tighten fiscal frameworks amid concern the situation would envelop Italy and Spain, the euro region's third- and fourth-biggest economies. ... 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 The sovereign wealth fund would "love" to boost investments in Africa, he said. The company is limited in how much it can invest in Africa because the projects are not large enough to fit its investment criteria, he said. The fund is boosting investments outside of China as it seeks to increase returns on the nation's foreign currency reserves and secure commodity supplies. The Chinese government injected about $50 billion this year in the sovereign wealth fund, Gao said. The government has not made a decision on whether to regularly inject capital into the company, he said. "Right now we are busy enough, so we don't worry terribly about recapitalization," he said. "In the long run, we should do something about it." The company only considers investments of at least about $100 million in African companies and wants to take no more than a 10 percent stake in them, he said. There are not many companies outside of the mining industry in Africa that fit those criteria, making spending on the world's poorest continent a challenge, he said. The ventures need to have a return that is on average about 200 basis points, or 2 percentage points, more than investments in the developed world, he said. CIC will buy 25 percent of former South African politician Cyril Ramaphosa's Shanduka Group for 2 billion rand ($251 million), the company said on Dec. 22. 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...
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| The Gold Price Tumbled Again With an Ominous Low of $1,580.54 Closing $1,593.70 Posted: 09 May 2012 10:54 AM PDT Gold Price Close Today : 1593.70 Change : (10.30) or -0.64% Silver Price Close Today : 2919.70 Change : 21.7 cents or -0.74% Gold Silver Ratio Today : 54.584 Change : 0.053 or 0.10% Silver Gold Ratio Today : 0.01832 Change : -0.000018 or -0.10% Platinum Price Close Today : 1498.40 Change : 1,347.80 or 894.95% Palladium Price Close Today : 614.00 Change : -9.40 or -1.51% S&P 500 : 1,354.58 Change : -9.14 or -0.67% Dow In GOLD$ : $166.48 Change : $ (0.16) or -0.10% Dow in GOLD oz : 8.054 Change : -0.008 or -0.10% Dow in SILVER oz : 439.60 Change : -0.06 or -0.01% Dow Industrial : 12,835.06 Change : -97.03 or -0.75% US Dollar Index : 80.16 Change : 0.248 or 0.31% Today the GOLD PRICE tumbled again, down $10.30 to close beneath $1,600 at a morale bruising $1,593.70, but only $2 from the high. Low was an ominous $1,580.54. That is probing the bottom boundary of the falling wedge. Resolving that usually bullish falling wedge with a plunge would be very bad juju. On both the five day silver and GOLD PRICE charts there begins to form an upside down Hands that will signal a reversal, IF gold falleth not through $1,580 (today's low) and silver toppleth not through 2860c. The SILVER PRICE pricked the bottom boundary of that falling wedge with its 2861 cent low, but closed within the wedge. Is that an aberration or a violation? Silver is sloppy in observing chart lines, often spiking over or under without following through. No way to know until it follows through up or down. Silver closed near the 2931c high of today's range, losing 21.7c to close 2919.7c on Comex. Checking silver as a percentage of its various moving averages, it is approaching last December's low readings. Unless silver intends to make this a mighty slump indeed, that whispers that an end to this decline draws nigh. Mmmm. Why do the 5 day Dow, GOLD, and silver charts look so much alike? Something ain't right. Over the long term, stocks and gold and silver move opposite to each other, because what drives gold up -- inflation -- drives stocks down (by filling the economy with uncertainty and inefficiency). But markets aren't logical in the short term, and these irrational divergences can persist a long time. Dollar index rose 24.8 basis points (0.32%) today to 80.155. 'Tis not that the dollar is strong or attractive for its high interest rate, but that the unreasoning, madding mob's fear is driving them into US dollars and US government treasuries. Want to know what sort of looney world we live in? In this looney world, US dollars (pure moonbeams) and US government Debt (moonbeams and dope smoke) are counted "safe." Surely somewhere in this universe there's a planet that makes sense. I want to go there. The "flight to safety" is buoying up the sinking dollar, flagellated by fear that the euro and lots of European government debt and banks will fall face down in the financial mud. Euro dropped beneath $1.3000 today, gapped down and closed down 0.5% at $1.2933. By now half the speculating world is short euros, so they'd better hope no Eurocrat comes up with some fix that would drive the euro suddenly skyward. STOCKS were swimming in concrete shoes today. At the low they reached 12,748, but ended the day at 12,835.06, down "only" 97.03 (0.75%). S&P500 lost 9.14 (0.67%) to 1,354.58. Five day charts for both stocks indicate that in the last two days they MIGHT have begun turning around. On the longer term charts the S&P500 has penetrated the neckline of its head and shoulders top formation and kept on falling. Dow today nearly completed the right shoulder of its HandS, and will complete it when it closes about 12,650. That argues against anything more that a temporary turnaround. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com +1-888-218-9226 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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Here's my new interview with researcher and author of 'The Crash Course' Chris Martenson. Buckle up, Chris has the data that he believes proves that 'peak oil' is a fact – and that any way you cut it, our lives are about to change forever as the days of cheap liquid fuel are nearly over. Chris also covers the coming collapse and the need to continue stacking physical.
Countries must take urgent steps to value their natural capital – such as 
The accumulation trends seem rather steady despite the recent volatility in price and protracted sawtooth downtrend.
In Japan, people who are old enough to have lived it as adults still reminisce about the bubble that blew up in 1989 when the Nikkei almost hit 40,000 (now at 9,045) and when the already sky-high prices of real estate could only go up further. The slide from the tippy top to reality today has been brutal, and a lot of people lost their shirts. A home changed from being an "investment" to being an "expense." Stocks became toys for traders. And government bonds, because they kept their value though their coupons were practically imperceptible, became the place to go, and by golly, there suddenly were a lot of them, a veritable tsunami of JGBs that is still building momentum and will reach by the end of this fiscal year one quadrillion yen ($14 trillion), 240% of GDP. But there has been one investment, especially since 1999, that has worked out phenomenally well for the otherwise hapless Japanese investor: Gold.
SHANGHAI: China's Shanghai Futures Exchange will start trading silver futures from Thursday with a bench mark price of 6,166 yuan per kilogram.
As of May 10, there will be more diversity in silver futures. On that day, the Shanghai Futures Exchange (SFE) will 
HANOI: As Vietnam Gold Decree deadline of May 25 approaching, gold trading in the nation become quieter than ever before.
Good evening Ladies and Gentlemen:
Four decade veteran John Hathaway, told King World News that we have seen a complete flush in the gold market. The prolific manager of the Tocqueville Gold Fund also said Europe is beyond saving and gold will benefit from the continued chaos. Here are the critical observations by one of the most extraordinary 5-star rated Morningstar fund managers: "I just think we've had a complete flush. You know they've been hitting stops for the last couple of days. I feel like the worst is past. People are shunning this area and this is going to be the place to be going forward."| 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 |
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