Gold World News Flash |
- Gartman on Gold and just another "entity of trade" that rises and falls-Captain ...
- ‘Crowded’ Gold Trade Needs to Lose ‘Weak Hands’ Investors
- A Currency Crisis, Up Close
- Fears of ’08 Credit Meltdown Impacting Markets
- JPMorgan unit has $100 billion in risky bonds
- Doug Casey: Precious metals market manipulation?
- Peter Grandich's presentation at the New York Hard Assets Conference
- South Africa gives tax break to gold miners
- GATA Chairman Murphy's presentation to Las Vegas Moneyshow
- How The U.S. Dollar Will Be Replaced
- J.S. Kim: Fear and panic are banks' weapons against gold and silver
- Precious Metals Market Manipulation?
- Do we know silver?
- McEwen Mining 2012 AGM Update
- US To Tax Everyone, Everywhere, All the Time?
- MAJOR LONG-TERM BOTTOMS FORMING IN GOLD AND COMMODITIES
- Silver heading down to $26 an ounce before a huge year-end rebound?
- CPM Group Releases Silver Yearbook 2012
- Twelve Out of Last Thirteen Days Has Silver Gone Down
- Gold and Silver Market Manipulation?
- Cycle Low Approaching for Gold
- Guest Post: The All-Important Question
- The Gold Price Rose $38.30 Can it Climb Above $1,580 Tomorrow to Confirm Reversal?
- When Will The Flight Out Of Euros Benefit Gold and Silver Prices?
- Did Today's Stock Plunge Give The QEeen Light?
- Peter Schiff - The Market Rollover, QE3 Bottom & Gold
- Gold Daily and Silver Weekly Charts - Massive Short Covering Rally From Deeply Oversold
- Gold Seeker Closing Report: Gold and Silver Gain Over 2% and 3%
- Toot, toot! Treblinka anyone?
- Devaluing the Dollar - Against What?
| Gartman on Gold and just another "entity of trade" that rises and falls-Captain ... Posted: 17 May 2012 05:41 PM PDT Dennis Gartman, investor and publisher of The Gartman Letter, says gold is just another "entity of trade" that rises and...
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| ‘Crowded’ Gold Trade Needs to Lose ‘Weak Hands’ Investors Posted: 17 May 2012 05:28 PM PDT Bullion Vault
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| Posted: 17 May 2012 05:24 PM PDT May 17, 2012 [LIST] [*]A currency crisis, coming soon to an economy near you: Irish trading in punts again, while Argentines deal contraband dollars at schools and offices [*]Dollar drops, gold soars: Traders suddenly anticipate QE3, but one chart shows it's not in the cards yet [*]Sign of the times: Japanese pension fund adds gold to compensate for zero interest rates [*]The Goldman Swirl... the coup de grace to the First Amendment's "Yemen exception"... Addison on Facebook... and more! [/LIST] This is what a currency crisis looks like: When something that hasn't been legal tender in a decade comes back into circulation. "We wanted to bring back the Irish pound — the punt, as it's known… to increase business," says Tony Morgan, a shop owner in the town of Clones. "We thought it would be a quirky idea initially. But we got absolutely fantastic coverage with this, and we're getting people into the town." Ireland adopted the euro in 2002… but evidently a whole lot of I...
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| Fears of ’08 Credit Meltdown Impacting Markets Posted: 17 May 2012 05:08 PM PDT  With fears building concerning another '08 credit meltdown, today King World News interviewed the #1 oil analyst in the world, Mike Rothman, to get his take on what is happening. Rothman is the Founder of Cornerstone Analytics and he has been rated #1 for Independent Energy Research by Institutional Magazine since 2006. Rothman consults directly with governments and has attended every OPEC Meeting since 1986. Here is what Rothman had to say about the current situation: "Essentially, with all of the concerns about the world either falling into recession or being in a recession, you still have Brent oil at triple digit levels. That's a testimony that oil balances are actually quite tight. There's a problem getting supply."
This posting includes an audio/video/photo media file: Download Now |
| JPMorgan unit has $100 billion in risky bonds Posted: 17 May 2012 04:54 PM PDT By Sam Jones, Tracy Alloway, and Tom Braithwaite http://www.ft.com/intl/cms/s/0/8ef035de-a043-11e1-88e6-00144feabdc0.html The unit at the centre of JPMorgan Chase's $2 billion trading loss has built up positions totalling more than $100 billion in asset-backed securities and structured products -- the complex, risky bonds at the centre of the financial crisis in 2008. These holdings are in addition to those in credit derivatives that led to the losses and have mired the bank in regulatory investigations and criticism. The unit, the chief investment office (CIO), has been the biggest buyer of European mortgage-backed bonds and other complex debt securities such as collateralised loan obligations in all markets for three years, more than a dozen senior traders and credit experts have told the Financial Times. The bank has said its derivative activities were intended primarily to help balance risks on its overall balance sheet, but the revelation that it has built up other large, risky positions is likely to raise further questions about the CIO's remit. ... 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 A spokesperson for JP Morgan declined to comment. The CIO sprang into the spotlight with the revelation of more than $2 billion in losses on the complex derivative trades, a turn of events that has triggered a Department of Justice investigation and angered US lawmakers. But the CIO has also dominated market activity and built up huge positions in other, equally esoteric markets, according to leading traders. "I can't see how they could unwind these positions because no one can replace them in terms of size. It's a bit of the same problem they face with the derivatives trade," said a credit trader at a rival bank. "They pretty much are the market." The unit made a deliberate move out of safer assets such as US Treasuries in 2009 in an effort to increase returns and diversify investments. The CIO's "non-vanilla" portfolio is now over $150 billion in size. "Two years ago they kind of kicked off" renewed market activity in risky assets," said one banker who sells financial debt. "It was like they provided some kind of 'philanthropic' service to the market to encourage it to get going." In November 2010, even the British Bankers' Association, a lobbying group, explicitly noted the scale of the CIO's activities in a warning on the fragility of the UK mortgage market. The JPM CIO "has taken more than £13bn (or 45 per cent) of the total amount of UK RMBS" (residential mortgage backed securities) "that has been placed with investors since the market re-opened in October 2009," the BBA said. The bank is planning to reduce its exposure to more complex products in the CIO and is likely to invest more of its $360bn in "excess deposits" in safer securities such as US Treasuries, according to people familiar with the matter -- a move that will be fraught with difficulties. Join GATA here: 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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| Doug Casey: Precious metals market manipulation? Posted: 17 May 2012 04:34 PM PDT 12:20a ET Friday, May 18, 2012 Dear Friend of GATA and Gold: In an essay posted Thursday at GoldSeek, financial writer Doug Casey of Casey Research asks for evidence of gold market manipulation and some explanation of its purpose. Casey's essay is headlined "Precious Metals Market Manipulation?" and it's posted here: http://news.goldseek.com/GoldSeek/1337282313.php The evidence and explanation have long been posted in the "Documentation" file at GATA's Internet site here: http://www.gata.org/taxonomy/term/21 Maybe the most comprehensive treatment of the subject is the latest version of your secretary/treasurer's "stump speech" here: http://www.gata.org/node/10554 But we're always adding to the "Documentation" file, like the acknowledgment by the late Dutch central banker and Bank for International Settlements President Jelle Zijlstra that Western central banks rig the gold market -- http://www.gata.org/node/11304 -- so if he's at all curious Casey might want to drop by occasionally for updates. 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: 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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| Peter Grandich's presentation at the New York Hard Assets Conference Posted: 17 May 2012 04:13 PM PDT 12:12a ET Friday, May 18, 2012 Dear Friend of GATA and Gold: In his presentation at the New York Hard Assets Conference, market analyst and mining company consultant Peter Grandich says gold will never find respect from the financial and news media establishment even though its performance over the last decade far exceeds any other asset class. He maintains that gold's bull market is far from over. Grandich's presentation is 14 minutes long and it's posted at YouTube here: http://www.youtube.com/watch?v=FEHJZnWnjhs&feature=youtu.be 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: 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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| South Africa gives tax break to gold miners Posted: 17 May 2012 03:47 PM PDT By Ed Stoddard http://www.reuters.com/article/2012/05/17/africa-money-idUSL5E8GH73I2012... JOHANNESBURG, South Africa -- As African governments seek to extract more revenue from their mining sectors, the continent's biggest economy has given gold producers a much-needed tax break tha t removes at least one head wind from a struggling industry. Gold Fields, the world No. 4 bullion producer, on Thursday became the latest South African gold miner to report better-than-expected earnings partly on the back of the new, lower tax regime. It benefited to the tune of close to 1 billion rand ($120.46 million) from the change in the first quarter. The companies' gain will cause some shareholder pain as the burden has been partly sifted to dividends, but analysts generally agree that the Treasury's revenue stream from the gold sector will be less as a result. It is impossible to forecast the precise net result as that would hinge on a range of factors from the price of gold to the dividends disturbed. ... 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 Effectively it is a change in the formula which brings the marginal tax rate for gold miners down to 34 percent from 43. Not everyone in the industry sees it as a significant shift in the South African government's thinking on resource nationalism, which has been a defining feature of the region's political risk profile. "It is a structural change and I would not read too much into a change of sentiment on that," Gold Fields' chief executive Nick Holland told Reuters. "The gold industry has already taken royalty taxes, which is about 300 million rand ($36.14 million) a year to us. Now we have a mooted carbon tax coming which is probably another 300 million. We can't really take much more," he said. Holland also noted that the ruling African National Congress, while it has gutted the radical idea of mine nationalisation, is mooting higher mine taxes that would effectively translate into 50 percent on profits. Still, while hardly a U-turn, the tax cut does at least indicate that ruling party and government thinking on the subject is not just running one way. "We're not aware of any mining jurisdiction in the world that's lowering mining tax at this time," JPMorgan Cavane noted in March shortly after the changes were announced in the 2012 South African budget. Mines minister Susan Shabangu told Reuters earlier this week that any future changes to tax policy would aim to keep the sector, which remains a vital source of employment, competitive. Looked at against the backdrop of the domestic political debate on mining and global and regional trends, the move does seem significant. Across Africa and elsewhere, the trend -- spurred by red-hot commodity prices which have recently cooled -- has been to raise mining taxes and royalties or get a bigger slice of the action. This has ranged from tax hikes in Ghana to Zimbabwe's drive to get foreign mining houses to surrender 51 percent stakes in their local operations to black investors there. Not all investors will be happy with part of the burden shifted to shareholders in the form of a dividend tax. And while the formula by which gold miners get taxed has changed, this has not been extended to other sectors, such as platinum and coal. This may partly stem from the fact that platinum and coal are regarded as growth areas while gold needs all of the help it can get. But can it arrest a decline in South Africa's gold industry, which has seen it fall from being the Saudi Arabia of the precious metal to the world's fourth biggest producer? That must surely be the government's aim given the sector's importance on the employment front in a country where the jobless rate is probably over 40 percent. But the money that flows to the gold miners' bottom line will likely flow out of the country. The Big 3 gold miners, Gold Fields, AngloGold Ashanti, and Harmony, are all investing heavily in expansion plans elsewhere. With the world's deepest mines, steeply climbing power costs and wages rising by double digits annually, the sun is setting on the sector here. And when the additional earnings get ploughed into Papua New Guinea, Mali, and other frontier mining states, the government may not be impressed. This could spark a U-turn on the tax policy for gold miners Join GATA here: 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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| GATA Chairman Murphy's presentation to Las Vegas Moneyshow Posted: 17 May 2012 03:36 PM PDT 11:36p ET Thursday, May 17, 2012 Dear Friend of GATA and Gold: GATA Chairman Bill Murphy's presentation to the Las Vegas MoneyShow this week has been posted at YouTube here: http://www.youtube.com/watch?v=BKC38M_RH1E 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: 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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| How The U.S. Dollar Will Be Replaced Posted: 17 May 2012 03:34 PM PDT  After being immersed in the world of alternative economic analysis for several years, it sometimes becomes easy to forget that most people do not track forex markets, or debt to GDP ratio, or true unemployment, or hunch over IMF white-papers highlighting subsections which expose the trappings of the globalist ideology. Sometimes, you just assume the average person knows what the heck you are talking about. This is, of course, a mistake. However, it is a mistake that is borne from the inadequacy of our age and our culture, and is not necessarily a product of weak character, either of the analyst, or the casual reader.The great frustration of being actively involved in the Liberty Movement is the fact that many people are rarely on the same page (or even the same book) during political and economic discussion. Where we see the nature of the false left/right paradigm, they see "free democracy". Where we see a tidal wave of destructive debt, they see a "responsible government" printing and spending in order to protect our "best interests". Where we see totalitarianism, they see "safety". Where we see dollar devaluation, they see dollar strength and longevity. Ultimately, because the average unaware citizen is stricken by the disease of normalcy bias and living within the doldrums of a statistical fantasy world, they simply have no point of reference by which to grasp the truth when exposed to it. It's like trying to explain the concept of 'color' to a man who has been blind since birth. Read more...... 
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| J.S. Kim: Fear and panic are banks' weapons against gold and silver Posted: 17 May 2012 03:21 PM PDT 11:20p ET Thursday, May 17, 2012 Dear Friend of GATA and Gold: J.S. Kim of the Underground Investor today reminds gold and silver investors that the price plunges recently suffered by the monetary metals are only the usual mechanisms used by the banking cartel to frighten and panic their opponents. Kim's commentary is headlined "Fear, Panic Are the Banking Cartel's Weapons vs. the Gold and Silver Bull" and it's posted here: http://www.theundergroundinvestor.com/2012/05/fear-panic-are-the-banking... 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: 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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| Precious Metals Market Manipulation? Posted: 17 May 2012 02:51 PM PDT By Doug Casey, Casey Research For many years now, a meme has been floating around that the prices of gold and silver are being manipulated, which is to say suppressed, by various powers of darkness. This is not an unreasonable assertion. After all, the last thing the monetary powers-that-be want is to see is the [...]
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| Posted: 17 May 2012 02:43 PM PDT |
| Posted: 17 May 2012 01:53 PM PDT I attended the McEwen Mining AGM this afternoon, here is an update
Rob's talk
Argentina talk no slides
Q+A
Talk with Rob afterwards
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| US To Tax Everyone, Everywhere, All the Time? Posted: 17 May 2012 01:45 PM PDT from The Daily Bell:
Dominant Social Theme: These taxes are very important in the scheme of things. The US would collapse without them. Free-Market Analysis: You would think with all the economic chaos swirling about that those who make the laws and levy taxes would be somewhat apologetic. Not Senator Chuck Schumer, though. He wants to make it illegal for a US citizen to take advantage of the tax laws of other countries.
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| MAJOR LONG-TERM BOTTOMS FORMING IN GOLD AND COMMODITIES Posted: 17 May 2012 01:24 PM PDT Once every year gold and stocks form a major yearly cycle low. Commodities form a major cycle bottom every 2 1/2 to 3 years. Every once in a while all three of those major cycles hit at the same time. I'm pretty sure that's what is happening right now.  The implications are that once the CRB has completed this major cycle bottom that we should see generally higher prices over the next year and a half to two years, presumably topping during a major currency crisis as the dollar drops into its next three year cycle low in the fall of 2014. I think the 30 point rally in gold today is signaling that gold has put in its yearly cycle bottom. Since gold did not break below the December low of $1523 I think we can assume that this is a B-Wave bottom and should be followed by the consolidation phase of a new C wave that should breakout to new highs either later in the fall or next spring. The next two years should generate an even more impressive advance then the 2009-2011 rally, possibly even generating the bubble phase of the bull market in late 2014 or early 2015 as the dollar crisis reaches a crescendo.  As gold usually leads the stock market by a few days, we should see the stock market put in its yearly cycle low sometime in the next several days. However the outlook for stocks is not as bright as the commodity sector. While I do think continued currency debasement will probably drive the stock market to at least marginal new highs I also think an increasing inflationary environment is going to compress profit margins and constrict consumer spending. After a long topping process the stock market and economy will probably roll over and follow the dollar down into that 2014 bottom.  While I'm not ruling out one more quick dip below $1523 to wash out stops below that technical level, I think gold is in the initial stages of the next leg of the secular bull market. This last C-wave from 2009 - 2011 was the C-wave of silver with a 400%+ gain at the parabola top in May of last year.  This next C-wave will be the C-wave of the mining stocks. During the irrational selling over the last eight months mining stocks have reached levels of undervaluation that have only been seen one other time in history. That drove a 300% rally over the next two years.  I suspect we will see something similar or even larger as the market gets busy correcting this irrational undervaluation. I think we are at, or very close to what is likely to be a once or twice a decade opportunity in the metals sector, especially the mining stocks. $10 one week trial to the premium newsletter.       
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| Silver heading down to $26 an ounce before a huge year-end rebound? Posted: 17 May 2012 01:02 PM PDT by Peter Cooper, SilverBearCafe.com:
However, if you are considering the establishment of a silver position you still need to decide a precise time to buy, you have no option but to do that. So on those grounds only you do have to think about the immediate price outlook and make your best guess. Read More @ SilverBearCafe.com
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| CPM Group Releases Silver Yearbook 2012 Posted: 17 May 2012 01:00 PM PDT from Commodities Now:
Last year was a pivotal one for the silver market, perhaps a turning point. Read More @ commodities-now.com
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| Twelve Out of Last Thirteen Days Has Silver Gone Down Posted: 17 May 2012 12:30 PM PDT from Silver Vigilante:
Read More @ SilverVigilante.com
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| Gold and Silver Market Manipulation? Posted: 17 May 2012 10:52 AM PDT Doug Casey, Casey Research writes: For many years now, a meme has been floating around that the prices of gold and silver are being manipulated, which is to say suppressed, by various powers of darkness. This is not an unreasonable assertion. After all, the last thing the monetary powers-that-be want is to see is the price of gold skyrocketing. That would serve as an alarm bell, possibly panicking people all over the world, telling them to get out of the dollar. It's assumed, by those who believe in the theory, that the US Treasury is behind the suppression scheme, in complicity with a half-dozen or so large bullion banks that regularly trade in the metals.
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| Cycle Low Approaching for Gold Posted: 17 May 2012 10:46 AM PDT Looking at the big picture for spot gold, we see that the next cycle low is due in about 4 weeks. In other words, the current cycle that started at the end of December is about 85% complete. That means that the strength off of yesterday's low at $1526.98 not only represented a deep retest of the December 29 low at $1522.48, it likely also satisfies the first coordinate in the next cycle bottoming period ahead of a new up-leg in the larger over-riding bull market in gold.
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| Guest Post: The All-Important Question Posted: 17 May 2012 10:42 AM PDT Submitted by David Galland of Casey Research The All-Important Question For pretty much everyone, no matter where they are located in the economic strata, few if any questions are more germane to making plans for the future than whether the US and other major global economies are in recovery. Getting the answer to that question right is of special importance to investors and businesses. Stating the obvious, if the broader economy really is in recovery, then investors would be well served by investing in the equities of solid companies positioned to take advantage. Similarly, those very same solid companies would be rewarded by increasing their productive capacity through investments in the plants and people necessary to meeting growing demand. On the same side of the ledger, bond investors would want to begin shorting up their durations or leaving the bubbly bond market altogether, in anticipation that the flood of funds into fixed income would reverse, sending rates higher (and bond prices lower). Conversely, if the recovery is a head fake, then an entirely different course of action is called for. For instance, one would want to adopt a cautious attitude about common stocks. And because of the nature of the crisis – crushing levels of sovereign debt – one would want to take advantage of pullbacks in precious metals to buy more, along with other so-called "tangibles." That way they would have some measure of protection against the inflation that fiat-currency powers make all but a certainty. In addition, reducing personal and business spending in order to conserve rainy-day cash would be advised. And what about US bonds in the no-recovery scenario? A sound case can be made for including them in a portfolio as that puts you in lockstep with the government's desperate need to keep interest rates down – or, better yet, have them fall further still. Given the highly politicized nature of our economy, that seems reasonable – and anyone who has been long bonds over the last few years has done very well, indeed. While you'll have to make your own call on bonds, my own enthusiasm is curbed by looking at the charts of the upwards-spiking interest rates on the bonds of Spain, Greece, Italy, and so forth. When Mr. Market ultimately becomes disenchanted with the fiscal excesses of the sovereign deadbeats, he can express his ire most energetically. When the current bond bubble here in the US ultimately bursts, as it must, it's going to be a bloodbath. Of course, there is much, much more at stake to coming to the correct answer on the recovery, or lack thereof, than that. For instance, poor economies make for poor reelection odds for political incumbents. And when it comes to maintaining a civil society, the lack of jobs inherent in poor economies often leads to a breakdown in civility. On that note, overall unemployment in Spain is now running at depression levels of almost 25%, and youth unemployment at close to 50%. How long do you think it will be before the citizens of this prominent member of the PIIGS will refuse being led to the slaughter and start taking out their anger on the swine (governmental and private) seen as bearing some responsibility for the malaise? Meanwhile, back here in the United States, the commander-in-chief is striding around the deck of the ship of state trying to look like the right man for the job in the upcoming election, despite the gaping hole of unemployment just under the economic water line. His future prospects are very much entangled with this question of recovery. So, what's it going to be? Recovery… no recovery… or worse, maybe even a crash? We all have a lot riding on getting the answer right. The Quest for Confidence Ultimately, the purpose of searching for the truth about the recovery isn't about either fear or greed. It's about confidence. If you really knew what's coming, then the right moves to make become obvious. You could then make those moves with the calmness of spirit that comes from certain knowledge and get on with your life. While others struggle or miss an opportunity by betting on the wrong future, you'd have set up your affairs to survive and prosper. Of course, given that we are talking about a complex system – the economy – total certainty is never completely possible. But for reasons I'll share, the nature of the current crisis paradoxically allows for more certainty than would normally be the case. And so I want to share my conclusion about how I believe things will unfold from here, followed with some support for that conclusion. While, as readers of any duration are well aware, we at Casey Research foresaw the current crisis years in advance and have remained firm in our conviction that the recovery is a charade… based on my own readings, and after spending the last two weeks in the company of a couple dozen very plugged-in economists, top-performing money managers, and top financial analysts, my conclusion is thus: The world's largest economies, including the US, Europe, Japan, and China are speeding for the equivalent of a brick wall. In short, I believe that before this crisis is over, we will experience the Greater Depression my dear friend and business partner Doug Casey has long anticipated. In case that conclusion fails to communicate my current view sufficiently clearly, I will condense it as follows: The world's largest economies are screwed. And I will even set my conclusion to music, in the form of the song Somebody That I Used to Know by Gotye, which seems appropriate because the economy that we used to know won't be back again for many years to come. Trust me, stating an opinion on the direction of the economy in such unequivocal terms troubles me. For starters, I wish my conclusion could be otherwise because no one likes to be a harbinger of doom. Mostly, however, I have long resisted adopting a set-in-cement position on something as wiggly as the future. In my experience, anyone who absolutely, totally buys into a particular future is almost always proven wrong by time. Yet, as my quest for certainty unfolded, I could come to no other conclusion than that the world as we know it is headed for an economic catastrophe. Allow me to explain. The quest started with our Casey Research Recovery Reality Check Summit, April 27-29, in Weston, Florida. We took our mandate of getting to the bottom of this matter of recovery seriously, including faculty members with a variety of perspectives to see if an overarching conclusion about the recovery could be ascertained. In addition to our own team of Doug Casey, Bud Conrad, Terry Coxon, Louis James, Marin Katusa and Jeff Clark, included in the faculty were: Lacy Hunt, former economist with the Dallas Fed and the world's most successful bond manager; Jim Rickards, money manager and author of Currency Crisis; John Mauldin, best-selling author of Endgame and the just-released The Little Book of Bull's Eye Investing; John Williams of ShadowStats fame; Porter Stansberry, founder of Stansberry Research; Michael Lewitt, editor of The Credit Strategist; Gordon Chang, China analyst; Harry Dent, author of The Great Crash Ahead (who also debated James Rickards on the question of inflation or deflation); Andy Miller on real estate; Greg Weldon of the Weldon Report; John Hathaway of the Tocqueville Funds; resource market guru Rick Rule of Sprott Asset Management; Caesar Bryan, a senior portfolio manager for the Gabelli Fund group; and David Stockman, the head of the Office of Management and Budget during the Reagan administration. (Plus, on the taking-action front, there was a special panel on international diversification as well as panels where a dozen or so experts on everything from gold stocks to uranium, to rare earths, to graphite, to technology, to energy gave their best picks.) In other words, a full program. Then, immediately following the conclusion of our summit, Olivier Garret, Casey Research CEO and partner, and I climbed on a plane for California and John Mauldin's Strategic Investment Conference. John's event was geared more for hedge fund and very-high-net-worth investors and, as such, included a more mainstream slate of speakers, but what a slate it was. For the better part of three days, Olivier and I hunkered down to hear presentations and meet with the likes of: David Rosenberg, the star analyst of Gluskin Sheff; H. "Woody" Brock, an economist with some of the deepest credentials in the business (you can Google any of these guys for bio info); economic historian and best-selling author Niall Ferguson; Marc Faber of the Gloom, Doom and Boom Report; David McWilliams, the popular and very erudite Irish economist; David Harding of Winton Capital Management; Jeffrey Gundlach of DoubleLine Capital; Lacy Hunt again… and my favorite for this conference, Mohamed El-Erian of PIMCO fame. In other words, for the better part of two weeks, I was immersed in presentations and one-on-one discussions with truly some of the smartest, best-studied people in the world today on economics and investment markets – with the primary topic being whether the so-called recovery is real, and the consequences if it falters. While the speakers used a variety of methodologies to approach the topic, when all was said, the only conclusion that could be reached was that the world is headed for a very challenging period. That conclusion was for the most part derived from three aspects of the many presentations:
[Me] "All of the speakers, you included, point to the current trend of higher debts and deficits and say they are untenable, and so the big economies will hit a wall in the not-too-distant future. Yet hardly anyone actually then defines what hitting the wall will look like." [Him] "Yes, well, things will likely get a bit messy if the politicians can't pull together to address the structural problems in the economy." "But wouldn't you agree that, given the nature of our democracy, the odds of the politicians taking action before we hit the wall are almost nil?" "Not at all. If everyone in this country would read my new book, they would understand the situation and rise up to force their elected representatives to take the right action." "Seriously? The only way to avoid the next leg down is if everyone in the US reads your book? That's it?" At which point – I kid you not – he picked up his plate and changed tables. (There's a reason I am only rarely allowed out in public.) But the fact remains that other than perhaps Doug Casey and a small handful of other presenters at our conference, almost no one even attempted to anticipate just what happens when the crisis swells up to its full height and then comes crashing down. Or, specifically, what the consequences are likely to be when the world's largest economies all hit the wall at more or less the same time. For the record, I have compiled a list of the ten largest economies in the world, and a reasonable assessment of their current situation follows in descending order by size of GDP: United States – screwed China – really screwed Japan – massively screwed Germany – pretty screwed, especially in that export economies take a big hit in a crisis France – le screwed! Brazil – somewhat screwed United Kingdom – blimey, screwed too Italy – properly screwed Russia – hardly screwed at all (lots of resources and next to no government debt) Canada – pretty screwed, eh? As concerning as it is to see how many of the world's largest economies are in trouble, the biggest problem of all is that the central bank reserves of virtually every country in the world are stuffed with US government IOUs masquerading as tangible assets. So, what happens when the world's reserve currency enters collapse and the dollar turns into a hot potato? Don't know, but I'm pretty sure we'll find out in the not-so-distant future.
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| The Gold Price Rose $38.30 Can it Climb Above $1,580 Tomorrow to Confirm Reversal? Posted: 17 May 2012 10:42 AM PDT Gold Price Close Today : 1574.50 Change : 38.30 or 2.49% Silver Price Close Today : 2799.60 Change : 82.6 cents or 3.04% Gold Silver Ratio Today : 56.240 Change : -0.300 or -0.53% Silver Gold Ratio Today : 0.01778 Change : 0.000094 or 0.53% Platinum Price Close Today : 1449.30 Change : 26.40 or 1.86% Palladium Price Close Today : 601.65 Change : 12.35 or 2.10% S&P 500 : 1,304.86 Change : -19.94 or -1.51% Dow In GOLD$ : $163.36 Change : $ (6.16) or -3.63% Dow in GOLD oz : 7.903 Change : -0.298 or -3.63% Dow in SILVER oz : 444.44 Change : -19.26 or -4.15% Dow Industrial : 12,442.49 Change : -156.06 or -1.24% US Dollar Index : 81.52 Change : 0.174 or 0.21% The GOLD PRICE rose 38.30 (up 2.5%) to end at $1,574.50. It left behind a double bottom on Wednesday at $1,527.7 and worked its way up to $1,550. In Europe it danced just under $1,550, then at 8:00 a.m. jumped to $1,557, traded sideways, then gapped up at $1,557 levitated, gapped again ($1,563-$1,566) and shot for $1,580. Closed near the top of the range. Folks, metals are strong as a garlic milkshake. To preserve that spike bottom for posterity, gold needs to climb above $1,580 tomorrow and confirm its intent. Milestones of success after that are $1,600, then $1,630. The GOLD PRICE must overcome these quickly, and that I expect to see. The SILVER PRICE has made an upside down head and shoulders reversal, forming the head Wednesday. Before New York opened silver temporized between 2770c and 2738, then about 8:00 followed gold up in the same pattern. Ended the day up 82.6c (3%) at 2799.6c. 2800c will become the new floor for silver. Past three weeks of silver show a cascading blow-off bottom. Today reversed that. Silver will rapidly jump over 2900c to 3000c. Odd to say it because summer is seasonally the metals' sleepy season, but silver could stand at 3400c by end-June. Whatever evil spell the Central Banking Wizards had cast over silver and gold was broken today. Enough realizers grasped all at once that a bodacious wave of inflation is inevitable, and ran to buy silver and gold. Now the magic is gone, and the Wizards only look like silly bureaucrats in pointed hats, waving little wands like conductors without a symphony. I will ice this cake by noting that three days ago silver reached its low percentage for this correction against its 300 day moving average. That often pinpoints a reversal. Better swap GOLD for SILVER now. Ratio may have topped yesterday. Confirming a reversal in gold and silver, premiums on physical silver and gold are rising rapidly, and that will hurt our realized ratio in a swap. If you plan to swap gold for silver, you'd better do it quickly. That's it. Silver and gold might once bend backward again toward their lows, but evidently the lows were posted yesterday. More about that below. The euro continues to crumble before the US dollar. The Dollar index today rose another 17.4 basis points (0.22%) to end at 81.516. First barrier to further rise appears at 81.78, the January high. Euro lost 0.18% today to close at $1.2692, not far from the January low at $1.2609. Monstrously oversold, so watch out for a sudden rally. The NGM like to snare currency traders that way. Making good on the promise of that head and shoulders that's been forming since January, the Dow today sliced through its neckline to lose 156.06 (1.24%) and ended at 12,442.49. (S&P lost 19.94 or 1.51% to 1,304.86. It has lost 100 points in ten days.) Yesterday the Dow in Gold dollars, which has been forming a diamond, well, really a megaphone, yesterday made a marginal new high at G$169.53 (8.201 oz) and today crumpled to G$163.36 (7.903 oz). Dow in silver ounces plunged from 463.69 oz yesterday to 444.44 oz today. Both have topped. That's your turn of metals against stocks. They have unlatched themselves from stocks, and from currencies, too. That silver and gold strength in the face of a blooming dollar and withering euro loudly confirms metals' strength. 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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| When Will The Flight Out Of Euros Benefit Gold and Silver Prices? Posted: 17 May 2012 10:29 AM PDT Around the year 1650 A.D. the word highwaymen entered our language. It referred to robbery committed on a public road against travelers. Now we use the phrase "highway robbery" for which we pay the tolls to travel on modern day roads. The highwaymen alas are among us and we have elected them. At such times it would not take much more in the destruction of mining equities to make investors feel as if they have been seduced by sweet talk and abandoned to the wolves of Wall Street by latter day highwaymen.
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| Did Today's Stock Plunge Give The QEeen Light? Posted: 17 May 2012 09:22 AM PDT From mid-November last year, S&P 500 futures fell from a high of 1259 to a low of 1136 in around 9 days - 123 points (or 9.7%). This was enough, it seemed, for the Central Banks of the world to get on the phone and press the big green 'print' button in a coordinated response to markets waking up to the dismal reality hidden under the covers. From May 1st highs at 1412 to today's 1300.5 lows is a 112point drop in around 13 days (or a drop of around 7.8%). While the most recent move is slower and smaller so far - today's action in stocks (and even more so in Gold) perhaps reflects the reality that QE3 is inevitable (gold) but not until stocks have fallen enough to warrant 'extraordinary actions' by the Fed. Do we have another 2-3% drop before the Fed picks up the phone?
and as we noted earlier, perhaps it is worth considering how the 'USD-fiat-based unit of account that the S&P 500 is priced in' is now dramatically different from the 'non-fiat-currency unit of 'risk' that credit is priced in'. Critically, credit markets remain a far more effective indication of the business cycle or credit demand/supply to put it another way, than the USD-devalued unreality of US equities...
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| Peter Schiff - The Market Rollover, QE3 Bottom & Gold Posted: 17 May 2012 08:51 AM PDT  With tremendous volatility in global stock markets, and gold on the move, today King World News interviewed Peter Schiff, CEO of Europacific Capital, to get his thoughts on what lies ahead. Schiff discussed stocks, gold and what central planners are up to, but first, here is what Schiff had to say about what is happening in key markets: "Well, we keep getting more weak economic data, which is validating my perspective that we never really had a recovery at all. We simply juiced the economy up on stimulus, and as the stimulus high wears off, the hangover sets in."
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| Gold Daily and Silver Weekly Charts - Massive Short Covering Rally From Deeply Oversold Posted: 17 May 2012 08:30 AM PDT |
| Gold Seeker Closing Report: Gold and Silver Gain Over 2% and 3% Posted: 17 May 2012 08:15 AM PDT Gold jumped to as high as $1579.80 by midday in New York before it drifted a bit in afternoon trade, but it still ended with a gain of 2.23%. Silver surged to as high as $28.33 and ended with a gain of 3.2%.
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| Posted: 17 May 2012 07:47 AM PDT "Bain Mouth": Private Equity Firms Plunder America's Teeth For Profit: Dental Abuse Seen Driven by Private Equity Investments New: The U.S. May Engineer A "Soft Default" – Here's Why and How The U.S. declares the old dollar null and void, … Continue reading
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| Devaluing the Dollar - Against What? Posted: 17 May 2012 07:41 AM PDT |
Senators to Unveil the 'Ex-
Trying to tip the direction of the most volatile of metals is a futile task and we would never advise anybody to attempt to trade the silver market. Even JP Morgan is going to get caught out with its massive short position one day, and any idea that these are the true masters of the universe is surely buried by the $2 billion loss admitted last week.
The CPM Silver Yearbook 2012 contains information about silver inventories, a major component of the silver market, as well as a detailed analysis of silver futures, options, and over the counter trading activity. The volume of silver traded during 2011, which includes trading volumes of futures and options at the major exchanges, clearing volumes in the London over the counter market, and newly refined silver supply, reached 182.4 billion ounces last year, up 56.7% from the previous year. This the highest level of trading activity on record.
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