Gold World News Flash |
- The Gold Price and Silver Price Down but Primary Trend is Still Upwards
- Silver Paradigm Shift: Devil’s Metal Hits 19-Month Low As Funds Eye Quarter-End Position Shifts
- Inspiration on a Bad Day: The Story of Team Hoyt
- WHEN
- Greyerz – Greatest Financial Collapse The World Has Ever Seen
- Look For Rebound After Summer In Gold and Silver
- What the Supreme Court Can’t Touch
- Just A Very Visible Fat Finger?
- Gold Daily and Silver Weekly Charts - Sitting on the Metals and Painting the Tape Into the Close
- In The News Today
- A Valley in Peaks…and the Biggest Fraud in Economics
- Morning Snapshot
- The Black Hole of Deflation and Gold and Silver - Part 2
- A Warning for Gold Stock Investors
- Gold, Silver and the Black Hole of Deflation
- Currencies Wait for the EU Summit
- Gold Takes Two Steps Back
- The Alternative Portfolio: Diversifying Away From a Traditional Allocation
- Leeb sees negative rates supporting gold; Eveillard discounts deflation
- Gene Arensberg: Bears can’t convince gold and silver ETF holders
- Paul’s full Fed audit bill approved unanimously by House committee
- Demand Rises for US Silver Coins, Led by Silver Eagle Products
- Animal Farm
- Gold Lacks All Safe Haven Interest Ahead of Euro Talks
- Follow the Gold Mining Majors
- Gold Mining Costs Rising Fast
- US Dollar: Wave Counts, Flight-to-Safety?
- Gold lower at 1568.02 (-6.53). Silver 26.868 (-0.064). Dollar higher. Euro drops. Stocks called lower. Treasurys mostly higher.
- Commodities Sink on Rise in German Unemployment, EU Summit Anxiety
- Gold and silver: you ain’t seen nothing yet
| The Gold Price and Silver Price Down but Primary Trend is Still Upwards Posted: 28 Jun 2012 12:41 PM PDT Gold Price Close Today : 1549.70 Change : -27.90 or -1.77% Silver Price Close Today : 2624.70 Change : -69.5 or -2.58% Gold Silver Ratio Today : 59.043 Change : 0.488 or 0.83% Silver Gold Ratio Today : 0.01694 Change : -0.000141 or -0.83% Platinum Price Close Today : 1386.40 Change : -23.40 or -1.66% Palladium Price Close Today : 562.40 Change : -15.35 or -2.66% S&P 500 : 132,904.00 Change : -2.81 or 0.00% Dow In GOLD$ : $168.10 Change : $ 2.67 or 1.61% Dow in GOLD oz : 8.132 Change : 0.129 or 1.61% Dow in SILVER oz : 480.14 Change : 11.47 or 2.45% Dow Industrial : 12,602.26 Change : -24.75 or -0.20% US Dollar Index : 82.72 Change : 0.169 or 0.20% Today the GOLD PRICE closed beneath my $1,558 boundary, which argues it will drop at least to $1,532, the last low, or $1,526, or if that doesn't hold, $1,475. I'll talk about arguments on the other side in a moment. The GOLD PRICE lost $27.90 to close Comex at $1,549.70. Gold began dropping about 9:00 a.m. at $1,565 and steadily and steadily lost ground until 11:00. Couldn't mount any sort of rally, through, and by 1:00 had hit a low at $1,547. How much breaking a support line is enough? Well, enough. Gold's fall today was probably enough to carry it lower, but I'm getting my back up just a little. I don't expect much downward follow-through or a new, post-Dec-2011 low because this gold correction has lasted 44 weeks already. Last one (2008 - 2009) needed 46-1/2 weeks to correct from break to low to exceeding the last peak. That argues that the present drop won't carry very far or last very long, but I wouldn't swing over hell using that for a rope. The SILVER PRICE lost 9.5 cents to end Comex at 2624.7c. SILVER closed below the 2641 line in the sand I've been drawing, so I have to expect lower prices. Today's low was 2612, which matches the Feb., September, and December 2011 lows. More times a market knocks on a door, more likely that door is to open, so there's a good chance that 2615 support will give way and send silver skidding to 2250c. On the same side is the higher GOLD/SILVER RATIO today at 59.043. On the opposite hand stands the strong and rising premium on US 90% silver coin, and the usually reliable relation of silver's price to its 300 day moving average. Only time in the last 11 years it has been lower was at the dark pit of fall 2008. And silver has been correcting now for 60 weeks. In 2008-2010 it took silver 97 weeks to exceed the previous peak, but it had bottomed long, long before that. Long and short is that the bias for gold and silver now, as opposed to their wild peaks many months ago, is upward, not down. This bounding along bottoms can grind on a long and vexing time, but September will come at last. Bull market is intact. Be calm and watch. Night before last I heard this headline on the radio, "Barclay's bank rigged interest rates," and I laughed out loud. EVERY central bank does this EVERY day. But since I'm only a natural born fool from Tennessee, I can't understand why, when the central bank rigs interest rates, are they a public benefactor, but when private banks do, they're crooks? I reckon you have to be a banker to understand the difference. And here's the best laugh of all: UK Telegraph reported that Lord Oakeshott, some politician, said, "If [Barclay CEO] Bob Diamond had a scintilla of shame, he would resign." How true! He has besmirched the good name of the whole brothel! Mourn, Beloved, mourn for your freedom and your country! The supreme court's decision today that the US congress can FORCE you to enter a contract of insurance deprives you of whatever freedom you might have had left. If insurance, why not anything else they decide you "need"? That they did it under the lying cover of a "tax" aggravates the tyranny, it doesn't excuse it. Mourn, Beloved, mourn! One thing about it: the Supreme Court's rotten decision makes secession look even better today than it did yesterday, and it looked plumb perfect yesterday. Whatever else you can say about the supremes' decision, the stock market didn't cotton to it. Dow lost 24.75 (0.2%) to 12,602.26, but looked much worse than that at lower prices all day until "a Friend" (a.k.a. Nice Government Men) rushed in to buy it higher. S&P lost 0.21% (2.81) to 1,329.04. Stocks will drop 800 points from here before July ends. With the customary irrationality we have grown to expect from central-bank-run markets, the US dollar index today gained 16.9 basis points (0.22%) to 82.718, although today's supreme's decision guarantees that the yankee government must spend billions and trillions more, which they can only do by borrowing it, which can only be accommodated by the Fed printing money. 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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| Silver Paradigm Shift: Devil’s Metal Hits 19-Month Low As Funds Eye Quarter-End Position Shifts Posted: 28 Jun 2012 12:10 PM PDT from Silver Vigilante:
With $26.75 now a memory since the metals fell Thursday and Friday of last week, and $26.25 barely hanging on, if at all, it is reasonable to conclude that the most recent medium-term paradigm for silver has broken down. Will silver bounce off this low? It very well might. But, finance capital has, through their manipulation of the silver market, demonstrated their awesome patience.
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| Inspiration on a Bad Day: The Story of Team Hoyt Posted: 28 Jun 2012 12:03 PM PDT
Today wasn't the greatest day. It was a bad day for the Constitution with the Obamacide ruling. And it was a bad day for silver bugs. Of course the fact that Eric Holder has been held in contempt of Congress is certainly a silver lining. It's days like these when we could all use a little inspiration. If you aren't familiar with the story of Team Hoyt, take a look at this. It may be just what you need to help you to look at the world from a different perspective. [If you take issue with Christian music, you may want to skip the second video.] Hang in there friends.
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| Posted: 28 Jun 2012 11:06 AM PDT Timing is everything. I predicted the housing market collapse. Of course I started predicting it in 2004, so it took three years before I was proved right. I also believe we are in part 2 of the Greater Depression, but very few agree with me so far. I'm pretty sure I'll be proven right, but [...]
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| Greyerz – Greatest Financial Collapse The World Has Ever Seen Posted: 28 Jun 2012 10:00 AM PDT from KingWorldNews:
"Almost every single major country in the world is bankrupt, and no one has the tools or a plan to get these countries out of this crisis. So countries will go bankrupt by default or by printing excessive money. This situation will continue to get worse and ultimately lead to a hyperinflationary depression. Egon von Greyerz continues @ KingWorldNews.com
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| Look For Rebound After Summer In Gold and Silver Posted: 28 Jun 2012 09:30 AM PDT
The world is navigating very troubled waters. For over four years the top Central Banks orchestrated by the Federal Reserve Chief injected a flood of trillions of dollars into an ailing financial system. The result has been extremely volatile upswings as QE1 and QE2 were introduced and gut wrenching declines after QE2 expired. The Venture Exchange has been in a decline since the middle of 2011, while banks have been propped up by an accommodative Fed. This is what they call an economic recovery? Gold and silver are building bases, while mining equities are reflecting valuations priced in for a pandemic meltdown. The banks and large resource companies are sitting on cash and treasuries as the media ushers the investment herd from Euros to Dollars. We can look from old posts from 2009 where the opposite occurred and Europe appeared stronger than the United States. The reality is that the main problem is not European Debt, but U.S. debt. A rising trend in value of the U.S. dollar and long term treasuries has been extremely deflationary, but will not last forever. Eventually, the U.S. must devalue the dollar in order to pay off soaring debts. Obamacare is another example of policies which could severely increase our national debt and cause us to possibly default like Greece. Precious metals, uranium and rare earths appear to be testing key support levels, which should hold. We are forecasting a reversal of the 2011 downtrend in the second half of 2012-2013. We expect China to continue to squeeze the West and a renewed interest from investors and end users to participate in the rare earth sector which will once again hit the mainstream. Rio Tinto outbidding Cameco for Hathor indicates the bargain basement prices many of Hathor's uranium peers are currently being valued. We expect continued excitement in the vital nuclear sector worldwide. We may see continued lateral movement due to us being in the summer doldrums before the markets challenge and breaks through old highs. We are also witnessing support levels still holding indicating that despite all the doom and gloom the markets are improving. Listen to what the markets are telling us, not what the media is reporting. Now we hear the voices of the Cassandra's and the prophets of doom as they inform us that a rally in precious metals and miners is devoid of lasting power. We disagree. The mining sectors and natural resources are in a period of rest now preparing for a new launch as investors realize that the U.S. dollar is far from a safe haven. The underlying quandary in still in need of repair. For now we are in the quiet summer doldrums. The economic cancer continues to metastasize albeit out of sight and out of mind. Come this Fall and Winter our sectors in precious metals, uranium, rare earths and graphite should shine as wealth in the earth is realized as a true hedge against hyper-inflation which is preceded by this current deflation. Remember that during the 1920's the U.S. dollar rose against other currencies. After the crash, the dollar still maintained its value as investors who were on margin had to raise cash. After all of the de-leveraging was finished and the herd entered the dollar, FDR devalued the U.S. dollar and raised the gold price from $20 an ounce to $35 practically overnight. All private ownership of gold became illegal. This history lesson teaches that rallies in the dollar during deflations are often followed by gut wrenching hyper-inflationary environments.
Silver is testing 2011 lows and is extremely oversold with an RSI reading below 30. We believe silver could rebound off of these extreme oversold levels and possibly break resistance to the upside. Rising precious metals markets love climbing walls of worry which are in this case spreading malignantly. We do not enjoy being a harbinger of sad tidings. However, the Fed and its European acolytes have failed to address the real issue of the malaise in which the world finds itself. Specifically, the cancer consists of too much reckless spending and dependance on governments whom one suspects doesn't really know what is going on. Watch gold and silver as it finds support at key levels. The elites of the west possess all they need for the wives, children and grandchildren to live in splendor. They are trying to solve fiscal malignancies with financial dollars. Our leaders are addressing the debt problem with financial band-aids. This is a perilous Keynesian experiment, which has long ago been disproven, but which arises every time capitalism reaches for a solution and comes up with the old pump-priming. Over a century ago another failed economist wrote that a specter is haunting the Western World. In some respects, the French have a saying that, "the more things change, the more they remain the same". Who could've dreamt that in 2011, we would see demonstrations in the Tahir Squares of the World that would result in Egypt coming under the control of the Islamists. Perhaps the past is prologue and we are destined to witness the same old scenes of revolt in other countries as well. The masses are not stupid. Everyone has a smart phone with plenty of rare earths, lithium and graphite in it. They all want the good things of life for their families. In any event, we are reaching a societal point of no return where entitlements such as Obamacare can no longer be afforded. They think we can make everything right by monetizing the debt which is only months away possibly after the election. In conclusion, what does all this mean? As time goes by the only true repositories of wealth exists in the natural resource area as it has since the days of Athens and Rome. Oddly enough after millennia we have come full circle, the same countries are going broke. History may not repeat, but it recurs and mimics. Be careful of the coming debasement of the dollar and hold on to your precious metals and wealth in the earth.
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| What the Supreme Court Can’t Touch Posted: 28 Jun 2012 08:46 AM PDT Dave Gonigam – June 28, 2012
Except when it's subject to "epic fail"…  Then again, the Supreme Court's leap of logic in justifying the 2010 health care law could scramble a rocket scientist's brain: a fine for failing to buy health insurance is now a "tax." "It is reasonable to construe what Congress has done as increasing taxes on those who have a certain amount of income, but choose to go without health insurance," read the majority opinion. "Such legislation is within Congress's power to tax." We'll spill little virtual ink on this opinion today. In line with our "sauve qui peut" outlook here at The 5, we'll focus on things within your control… and beyond the reach of the Supreme Court. The timing to do so is ideal… because less than 24 hours ago we got a reminder of the unstoppable — and highly profitable — wave of innovation in the health care space…
Arena Pharmaceuticals (ARNA) is coming to market with a drug called Belviq. "Belviq," a Reuters article explains, "is designed to block appetite signals in the brain to help people feel full after eating smaller amounts of food." It also has some pleasing knock-on effects, as Patrick explained in his initial write-up: "Blood pressure drops, heart rate drops, the 'bad' LDL cholesterol goes down, the 'good' HDL cholesterol goes up and triglycerides levels drop. Remarkably, all the key markers move in the right direction." Patrick recommended ARNA in March 2010, when it was a shade over $3. By last month it became a clean double: He recommended selling half the position and letting the rest ride. This morning, it's well over $10. And it almost didn't happen.
No wonder: Two-thirds of Americans are now classified overweight or obese. But the agency has proceeded with great caution since its last major approval — the disastrous "fen-phen" combination, pulled from the market in 1997 because it turned out to cause heart damage. Indeed, the FDA rejected Belviq in October 2010 — prompting an unusual shareholder revolt. "What has mobilized so many people, within our group and beyond, are the comments and behavior of some FDA officials and what we believe to be incorrect scientific conclusions," shareholder Douglas Park told The Wall Street Journal. "The increase in tumors in rats was statistically insignificant," Patrick explained, "and no one on the panel was qualified to weigh the animal study results." So the FDA reevaluated. Patrick urged his readers to hang on. This morning, they're sitting on a 235% gain. Two other companies are in the same boat Arena was until yesterday: hoping for approval of a weight-loss drug the FDA initially rejected. Patrick is taking a pass on both. But he's not giving up looking for the next weight-loss breakthrough. Far from it. The market is too lucrative: Weight loss is a $65 billion-a-year business in the United States.
It doesn't try to fool the brain into feeling satisfied. "It doesn't work on the brain to lessen the power of the cravings that are generated by shrinking fat cells," Patrick explains. "It's trying to eliminate the fat cells themselves. In other words, it attacks the REAL problem." "In primate studies, obese monkeys given the treatment quickly became slim. More importantly, all their metabolic markers returned to healthy levels." The company behind this revolutionary approach is getting big-bucks support from the same research group that backed the anti-cancer drug Avastin. Avastin is in such high demand these days it's often counterfeited. In light of other drugs this company has in the pipeline, Patrick says, "I'm astonished that this stock hasn't already taken off, but I'm thankful it hasn't. I suspect that five years out, it would have been a bargain at many times its current price." For the next four days, you have a chance to access Patrick's high-end research at the lowest price we've ever offered. It's not for the impatient, nor for the faint of heart — witness the snub the FDA gave ARNA before coming through with final approval yesterday. But ARNA is proof positive that you can build life-changing wealth from world-changing companies. This offer is available through Monday, July 1, at 5:00 p.m.
The Dow gave up all of yesterday's gains at the open — a move widely attributed to jitters about the umpteenth "make or break" eurozone summit — and added to those losses after the Supreme Court ruling. The index has seesawed around 12,500 for six weeks now. The economic numbers today aren't helping…
"According to a Supreme Court brief filed by the insurance industry's biggest lobbying group," wrote Peter Suderman in Reason last year, "the industry doesn't oppose the law — just so long as it includes the most constitutionally dubious provision, a mandate to purchase health insurance."
Earnings season starts July 9, and "analysts are dreading the second quarter. After expecting earnings growth in S&P 500 stocks as recently as last month, they are now looking for a second-quarter drop of about 1%, according to Bespoke Investment Group." Retail investors are sharing in the gloom, says Greg: "Tuesday's consumer confidence report revealed a 10% jump in consumers who believe stock prices will decline in the near future. In only one month, the percentage of bears went from 32 to 42." "The 'bear trade' is looking crowded right now because there is so much uncertainty and fear in the world right now. Simply put, investors are craving clarity. And whether news or resolutions are perceived to be 'good' or 'bad,' we will probably see sentiment improve when some certainty is added to the mix." "The bottom line is we're seeing signs that the pessimism is reaching its outer limits. That's a great contrarian indicator. Remember, true contrarianism doesn't instruct us to mindlessly latch onto an opposite position. Instead, it tells us to look for these extremes."
"The debt they are using to finance their bulging bureaucracies, bloated welfare rolls, giant pensions and so forth is largely coming from the banks. But the banks are all bankrupt too, partly because they've lent so much capital to bankrupt governments. So you've got two sets of bankrupt institutions trading debt back and forth between themselves." "Europe is China's largest trading partner. When the EU really goes into reverse and suffers a major economic collapse, the Chinese are going to lose their main customers — and end up owning a lot of chateaux. That also means the Chinese will stop buying the raw materials — commodities — they use to make what they sell to the Europeans. That will hammer the Australian, Brazilian, Canadian and other resource-driven economies." Doug says the bank runs in Greece could easily come to the United States. "I'd definitely recommend building up a stash of twenties and hundreds, enough for several months' living expenses, in case banks suddenly don't have cash on hand. Better yet, put it in gold and silver, because you never know what the banks will give you when push comes to shove."
The Midas metal's been knocked back to a six-week low of $1,554. Silver's testing a new year-to-date low at $26.47.
"Combined sales of U.S. American Eagle, Canadian Maple Leaf and Vienna Philharmonic gold coins fell by more than a third, to 451,113 ounces in the three months to March," Reuters reports. However, that decline comes off record levels set last year. Already as Q2 winds down, new signs are emerging of tightness in the physical bullion market: If you want bags of "junk silver" from Apmex, you'll have to wait till a week from tomorrow for shipment. And you'll pay a premium of up to $1.59 per ounce over spot. [Ed. Note: Keep an eye out next month for a special announcement about the ideal way to buy, store and sell gold and silver, hands down. This is something that's been in the works all year. We're still sworn to secrecy... but as soon as we can reveal more, you'll be the first to know.]
The House Oversight and Government Reform Committee passed his bill yesterday by voice vote, with nary a "nay" to be heard. This is the full-strength version of the bill Congress watered down before passage in late 2009. It would throw open everything to scrutiny — including transactions with other central banks. "Now onto the House Floor!" Dr. Paul tweeted yesterday. He's already lined up a majority of the chamber — 257 members — as co-sponsors. Not exactly a new gold standard, but it's progress — the sort he couldn't even dream about 30 years ago. Then he found himself issuing a "minority report" after President Reagan's Gold Commission — stacked with bankers and bureaucrats — recommended a continuation of the fiat-money status quo.  That document is as relevant today as it was then. It's why our Laissez Faire Books joined forces with the Mises Institute to republish it. And it's why we're offering it for a steal.
"There is no limit on the junk food you can buy with food stamps. I see people in our local Kroger buying soda, packaged foods, snacks and all sorts of crap and using their food stamp card to pay. Most of them are about 100 pounds overweight." "Another crock is some of these same leeches go to a convenience store and sell their food stamps for around 60 cents on the dollar and then buy booze. This whole program should be cut in half."
"This way they can use the money to go buy their alcohol or drugs. They will even give them their identification number to use with the card so they don't have to go shopping with them!"
"Ask us. We know that the Farm Bill, no matter how big or small, donates at least 65% to food stamps, school lunches and now Michelle's nutritional programs, plus they're now adding school breakfast and talking of school dinner (supper, as we call it here in our southland)." "Believe me, as one with farm interests, there's no one I know of getting rich off the Farm Bill except the firms you mentioned in your article. Nice job… Keep it up!"
"What is next? Will Regal Cinemas lobby for swiping my SNAP card for popcorn and soda? Will baseball stadiums let me load up on nachos and Dr. Pepper during the seventh-inning stretch? Soda and snack foods should be banned from SNAP, and only items found in the perimeter of the grocery store allowed!" The 5: Last year Yum! Brands — the parent company of KFC, Pizza Hut and Taco Bell — lobbied to expand SNAP to fast food — which was a bridge too far even for the Department of Agriculture. That, or the company didn't pay off the right people… Cheers, Dave Gonigam P.S. "In America," an expatriate reader wrote us a while back, "workers are held hostage to jobs they hate because working independently or taking early retirement means no access to health care unless you are willing to pay $1,000 a month for insurance. International health insurance costs me less than $100 a month." Nothing about today's Supreme Court ruling alters that unfortunate reality. "The good news?" writes Addison. "You don't have to expatriate to take your health care into your own hands." He shows you exactly how you can do so in the current issue of Apogee Advisory. Not a subscriber yet? Join here and get a free copy of The Little Book of the Shrinking Dollar.
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| Just A Very Visible Fat Finger? Posted: 28 Jun 2012 08:15 AM PDT Equities did it again - and no matter what narrative a mainstream media channel needs to comprehend the monkey-hammering that occurs every second in our 'market', it seems a fat-finger 50k block of S&P 500 e-mini futures (or around $3.3bn notional equivalent) was enough drive the nominal price index up 1% to close the day-session almost green (and rather notably right at yesterday's closing VWAP). All the highly correlated sectors of the equity market surged with them (led by Energy and leaving financials just in the red) and while Treasury yields did leak higher and EURUSD did rally, the moves were miniscule in comparison to someone's desire to own $3.3bn equivalent equity market risk into the close. Silver and Oil plunged early but recovered some into the close as stocks surged but tracked each other tick for tick for tick in general. Equities end the day modestly lower with VIX modestly higher as they saw average volume (thanks to the surge) but a drop in average trade size (algo tickler). Financials were saved by this as most recovered some of their losses with JPM limping up to close at Tuesday's closing VWAP. Credit and equity closed generally in line as IG/HY were very quiet and just being reracked along with stocks as opposed to seeing heavy flow. The chart below shows ES along with VWAP (red) and 1- and 2-sigma VWAP bands around it. The green dotted line links yesterday's closing VWAP to today's ES close - coincidence?
It seems that there is some mirroring in the early selling and late buying pressure so we would not get too excited by the suggestion that someone knows something...
shown clearly aberrant relative to Treasuries, Gold, and the USD...
and commodities which plunged early, recovered a little on the equity surge...
Perhaps it was the 'over-reaction' of stocks relative to credit early on that spurred the late-day reaction? Though from talking to desks, credit was dead quiet and was being re-racked as opposed to 'traded' up and down...
Charts: Bloomberg
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| Gold Daily and Silver Weekly Charts - Sitting on the Metals and Painting the Tape Into the Close Posted: 28 Jun 2012 08:13 AM PDT | ||
| Posted: 28 Jun 2012 05:46 AM PDT Dear CIGAs, When you know you are right, never give up. Parts for this engine came from 5 countries. Still we had to make parts. It will float again because I never give up when I am determined and knowledgeable. When you are right Never give up. Alf's figures on gold will be attained Continue reading In The News Today
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| A Valley in Peaks…and the Biggest Fraud in Economics Posted: 28 Jun 2012 05:13 AM PDT Forget 'peak oil.' Or so they say. It has fracked its way to energy self-sufficiency. Porter Stansberry: … there are roughly 20 major shale oil plays in the US. The largest five of these new reservoirs have more than 20 billion barrels of recoverable oil… meaning that each of these new fields is not only the largest in US history (by a wide margin), but that each of them, individually, would more than double the proven reserves of domestic oil… That is why America is on track to be the world's leading producer of oil within the next five or six years… and why the most knowledgeable oil analysts are predicting a new all-time high of American oil production by 2017. In fact, we've already become a net energy exporter for the first time since 1949. The Wall Street Journal tells us that the US will not import a single barrel of oil from the Middle East by 2035. Hey, wait a minute. Wasn't that supposed to be why we're spending trillions on wars in Middle East…to keep vital supplies of black goo headed our way? Of course, the numbers never really made any sense. Neither did the logic of it. It would have been a whole lot cheaper just to buy the oil on the open market. Trillions cheaper. But money isn't everything. The US needs to guarantee access to oil…or its whole economy might be brought to its knees. Which is probably a good place to introduce a new idea: The biggest fraud in economics is economics itself. What's the point of having an economy? It is so that people will get the stuff they need and want. The more efficient the economy, the more stuff people get with the least effort and expense of resources. It makes no sense to waste trillions of dollars' worth of resources just to "protect the economy." The whole point of an economy is to create more stuff…not to waste it. You might just as well try to protect your health by committing suicide. Most economists are fools or knaves. The knaves want to get prestigious jobs and Nobel prizes by offering crackpot advice. The fools think it will work. A few months ago, they were concerned with peaks. There was a peak in oil production. There was a peak in food production. There was a peak in available water coming. Then, a peak in peaks must have been hit. Now there is a peak in valleys. All of a sudden, the peaks are far away. Commodity prices are falling, not rising. Deflation is economists' worry, not inflation. Deflation is an impediment to growth; everyone believes it. The European debate is largely a dispute over which fraudulent solution will cause 'growth.' The austerity crowd believes it has to clamp down on government spending. This will give investors confidence in government bonds. The feds will be able to borrow again. The economy will grow. All will be well. The stimulus crowd targets growth directly. It wants the feds to spend…creating jobs, incomes, spending and so forth. Paul Krugman is in The Financial Times today. "At a time when the private sector is engaged in a collective effort to spend less, public policy should act as a stabilizing force, attempting to sustain spending." Krugman says the real problem is a lack of demand. People just don't want to spend their money. This is something that needs to be fixed! Why? Why not let people decide for themselves when they want to spend and when they want to save? Why let the government do for them what they do not want done? Krugman doesn't bother to think about it. He is worried only about growth. He is afraid that the economy will collapse completely before austerity measures lead to growth. The austerity group worries that government-led 'growth' will blow up the economy before it has a chance to turn into real, private sector growth. Neither side doubts that growth is the key. Almost everybody agrees: we have to pursue growth. "The Hero," Ben Bernanke, does it by printing money. Congress and the administration do it by running trillion-dollar deficits. Nobody doubts that 'growth' is the key to progress, happiness, and maybe even Heaven. But there's the foundation of the great flim-flam right there. Why do economists think 'growth' is such hot stuff? Because they can measure it… Economists can measure GDP. They can tell when it goes up…or when it goes down. Generally, more is better…because it means the economy is creating more stuff. So, economists tailor their policy recommendations…their theories…and their editorial page blah-blahs to the goal of stimulating growth. But is growth a good thing? Is it the same as progress and prosperity? Is more stuff what the world really needs? Just 5 years ago, TIME magazine thought the US needed more stuff…in the form of houses. Seventy years ago, the US needed more stuff…in the form of tanks and fighter planes. Forty years ago, US economists — notably Samuelson — were convinced that the Soviet economy would soon be larger than the US economy. Why? It could produce more stuff. They had charts to show how stuff production in the Soviet Union was increasing…and how it would surpass the US in just a few years. And what happened? It didn't matter. The stuff was worthless. More tomorrow. Regards, Bill Bonner A Valley in Peaks…and the Biggest Fraud in Economics originally appeared in the Daily Reckoning. The Daily Reckoning, published by Agora Financial provides over 400,000 global readers economic news, market analysis, and contrarian investment ideas. Recently Agora Financial released a video titled "What Causes Gas Price to Increase?".
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| Posted: 28 Jun 2012 04:52 AM PDT
Adding additional uncertainty to markets is the commencement of the two-day EU summit. With German Chancellor Angela Merkel maintaining her adamant objections to any shared debt, it's difficult to envision any sort of meaningful progress toward a true resolution of the eurozone debt crisis. In fact the FT just posted the following: "Dutch-German alliance is likely to block any exotic new measures to solve the issue of South European indebtedness." So if, the heavily indebted periphery is to be dependent on existing measures for salvation, Europe needs to hope that things in Spain and Italy don't get any worse. However, that seems rather unlikely as a failure of the troika to come up with some new palliative is likely to precipitate a deterioration of the situation. If on the other hand, the summit results in some new prescription it would likely just be another kick of the can down the road. While that may offer some short-term relief to markets, as we've seen recently, the relief is likely to be fleeting when the symptoms are treated by the underlying cause of those symptoms are left unaddressed. More "eyewash and fake solutions" as Ms. Merkel quipped yesterday. • US Q1 GDP – Final unrevised at 1.9%, in-line with expectations.
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| The Black Hole of Deflation and Gold and Silver - Part 2 Posted: 28 Jun 2012 04:41 AM PDT In Part I of this series we looked at the decaying state of confidence and how this is assisting in the deflationary process that is slowly, inexorably, moving forward, with limited action from central bankers and very little action ... Read More...
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| A Warning for Gold Stock Investors Posted: 28 Jun 2012 04:33 AM PDT Frank Curzio writes: Aaron Regent just lost his job. A month ago, Aaron was the CEO of Barrick Gold, one of the world's largest, most successful gold-mining companies. He earned over $8 million in 2011, making him one of Canada's highest-paid executives.
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| Gold, Silver and the Black Hole of Deflation Posted: 28 Jun 2012 04:15 AM PDT In Part I of this series we looked at the decaying state of confidence and how this is assisting in the deflationary process that is slowly, inexorably, moving forward, with limited action from central bankers and very little action at all from politicians. We looked at Christine Legarde's comments that highlighted the need for value and measures of value to keep the monetary system under control. And then we looked at the loss of money velocity, deflation and the damage it's doing to the solvency of banks and nations.
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| Currencies Wait for the EU Summit Posted: 28 Jun 2012 04:00 AM PDT Good day, and welcome to another scorcher here in the Midwest. Chuck isn't feeling well today, so I just got the call to get something out to all of you, which means this will be very short and, hopefully, sweet. As I mentioned, it's going to be a hot one for us today. We're supposed to have Phoenix-type weather in St. Louis, with the mercury rising to 107 degrees. It's supposed to be a dry heat, which does make a big difference, so we'll see if today goes down in the record books. The dollar has been heating up so far this morning over thoughts the EU summit in Brussels won't accomplish anything other than what Chuck called yesterday a 'plan to have a plan.' The market likes to play both sides of the fence, but so far this morning, they aren't anticipating anything that would have an immediate or significant impact on the debt crisis. So the focus for today looks to remain in Europe. The rise in yield for the Italian 5-year and 10-year bond auction to 6.19% from the previous 6.03% figure didn't help matters, either. As the dollar starts strong out of the gate this morning, that means the other half of the odd couple, the yen (JPY), is sitting on top of the currency leader board. The flight to liquidity/safety is driving both the U.S. dollar and the Japanese yen higher, as the EU summit isn't expected to bring much resolution to the fragile global outlook. The risk-averse trading pattern that rewards the USD and the JPY looks remain intact until we see two things, which I think would be something concrete coming out of Europe and anything that would resemble any type of QE action from the Fed. While the yen is at the top of the list this morning, the Norwegian krone is bringing up the rear. Talk about polar opposites. If you took a blind taste test of the economic fundamentals and fiscal situations in each country, the situation would be much different. It kind of reminds me of that car insurance commercial where passersby take a sip from two glasses, where one is obviously sweet and the other looks to be very sour. In this case, the Norwegian economy has been holding together fairly well, and combined with the huge surplus in their back pocket, it would be an easy choice to select the krone over the yen if you were blindfolded. The problems in Europe and risk aversion have been a drag on the krone (NOK), but we did have some not so good news out of Norway this morning. The June unemployment rate unexpectedly rose for the first time since January, to 2.4% from the previous reading of 2.3%. Most reports that I see don't expect this to be an ongoing trend, but the central bank does expect registered unemployment to average 2.5% this year. The rise to 2.4% in nominal terms doesn't sound any alarms for the domestic economy, but the focus still sits squarely on the shoulders of the eurozone. The central bank did increase their GDP forecasts a couple months ago and did signal interest rates hikes could take place as soon as the first quarter next year. We did see Japanese retail sales increase by an annualized 3.6% in May, but the overall picture doesn't change. Speaking of another economy that has plenty to deal with, Chris Gaffney just gave me some thoughts on Britain. Data released this morning in the U.K showed their current account deficit was much worse than the expected 8.5 billion shortfall. The U.K. current account deficit for the first quarter was 11.2 billion pounds (GBP), and the 2011 Q4 deficit was also revised lower. The data sent the pound sterling lower, with the $1.55 level looking like it is in danger. The U.K. economy is struggling as it feels the impact of the eurozone debt crisis. In other news out of the U.K., the Bank of England warned consumers that banks would be passing along higher borrowing costs in the coming months. A report released by the BOE this morning stated, "The elevated cost of wholesale funding for banks has continued to be passed through to spreads on secured household lending, and lending to firms" and "spreads are expected to rise markedly on lending to firms of all sizes." Not good news for U.K. consumers and businesses, higher rates in a slowing global economy. I would expect the BOE to try to combat these rising interest rates with an announcement of the expansion of their quantitative easing after their policy meeting on July 4/5. There wasn't much to talk about on the economic front here in the U.S., but the last revision to first-quarter GDP didn't yield any changes, as it remained at 1.9%; however, the personal consumption measure was revised downward to 2.5%, from the previous figure of 2.7%. The usual Thursday fare of initial jobless claims didn't give any warm and fuzzy feelings. The number did fall from last week, but the trend has been heading in the wrong direction. The initial jobless claims fell to 386,000, from last week's revision to 392,000, but the upward revision to just under 400,000 really caught my eye. I haven't seen much that would point toward a healthy June jobs number, but we won't know for sure until next Friday. Then There Was This: Ahead of Thursday's EU summit, a Reuters poll found expectation that the European Central Bank will reduce interest rates next week to a record low and that other measures will be taken to soothe markets. In addition, survey participants think nascent steps toward a eurozone banking union, perhaps even a fiscal union, will be made, even if only in vague terms. Told you this would be short and sweet. To recap: It's going to be a hot one here in St. Louis, but the dollar has been heating up as well so far this morning. The market isn't expecting much from the EU summit, so the debt concerns still remain, while Italian bond yields are on the rise. The flight to liquidity gave the yen a boost, but retail sales improved in May. Norwegian unemployment ticked upward a bit, but most reports aren't calling this a trend. The British current account deficit increased and the pound is teetering on the 1.55 handle. First-quarter GDP in the U.S. didn't change, but personal consumption was revised downward. Employment is stuck in the mud. Mike Meyer Currencies Wait for the EU Summit originally appeared in the Daily Reckoning. The Daily Reckoning, published by Agora Financial provides over 400,000 global readers economic news, market analysis, and contrarian investment ideas. Recently Agora Financial released a video titled "What Causes Gas Price to Increase?".
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| Posted: 28 Jun 2012 03:52 AM PDT Good day. I'm at a loss this morning. Usually, I have done some reading the previous night, and come to work loaded for bear. But that didn't happen last night, as Alex and his band mates had "band practice" in my man cave/basement. While I love listening to Alex play his guitar, the beating of the drums gets to me after about, oh, five minutes! So I went upstairs to watch the baseball game, and since my computer is downstairs, no reading! Which means this could be short and sweet today. Then again, you never know with me, once I begin to bang on the keyboard with my fat fingers! And never knowing what's going to happen next is the trading pattern we've been thrust into these past months, but even more so now, as the central bankers around the world begin to figure out what they could have learned years ago, by reading the Pfennig, and that is they can't control the economy as they think they can! And with every central bank meeting between the U.S. and eurozone, the leadup to the meeting is full of anticipation, and then we are left with disappointment. The markets want more from the central banks, but they've done just about all they can do, and none of it works. You know, if they had just looked at Japan, they would have learned long ago that central bank meddling into the economy doesn't work over time. Sure, there are short-term blips of positive response, but those last about as long it takes to get lathered up about the economy, and then the disappointment sets in. I did an interview with thestreet.com yesterday, and we talked about gold, and a few other things. I made the point that while it doesn't make sense to me, investors are selling gold ahead of the Eurozone summit this week, as most people believe the eurozone leaders will disappoint the markets. And since the markets have had their share of disappointment lately (see Ben Bernanke x 2), they are selling gold and buying dollars. OK, to prepare for disappointment is sound, in my opinion. But to sell gold when there is uncertainty in the world, on both sides of the Atlantic? I don't find that as sound. But as I told the reporter, I learned long ago that the markets are never wrong. I might not agree with them, but you don't try to fight them. Instead, you do the old Ali, rope-a-dope. All this talk about disappointment isn't carrying over to what you're feeling while you read the Pfennig this morning! Yes, I've been very serious so far — not the usual Chuck stuff. Don't worry, it's coming! Yesterday, we saw the currencies bounce around in a very tight range, with no direction and no conviction to move either way. Gold lost $13. So it's one step forward, two steps back with gold these days. But I don't worry. Can you see me as Alfred E. Newman, with a balding head and a big beer belly, saying, "What, me worry?" As I told the reporter yesterday, gold's backing off this year certainly gives all those who missed the boat the first time cheaper levels to buy. This morning, I turned on the currency screens and noticed that half of the currencies were in the red, and the other half were in the green. Red is bad; green is good. And gold is down another $5 this morning — one step forward, two steps back. I really don't believe we'll see much movement in either direction today for the currencies, as the markets await the eurozone summit, which begins tomorrow. Last week, I wrote about what I believe the eurozone leaders need to do to calm the markets at this summit, so I won't get into that again, but I'm afraid we're not going to get what I believe is needed. There's been some "leaking" of news before the summit, and it appears that the eurozone leaders are going to opt to come up with a "plan to have a plan." Uh-oh! I don't think that's going to calm the markets, but as I said above, we don't know how the markets will react. Maybe they'll be buffaloed into thinking that this is good, just as they were last summer, when the U.S. debt commission couldn't come up with spending cuts, and the so-called "automatic cuts" were supposed to take over. From what I read this morning, the "plan to have a plan" will go about half of the way toward what I said was needed, by providing an accurate diagnosis of the challenges facing the eurozone, and the steps that will need to be taken. They'll talk about the four pillars (growth, banking union, fiscal union, political union), but they won't get past that discussion. And then the "plan to have a plan" will put off the next phase until late fall, and maybe even into winter! So you see, if the markets get a sniff of this, as I did, then the disappointment will really set in — unless, as I said above, they get buffaloed. And the eurozone leaders need time to put pressure on Germany to agree to all the things in the "plan." It all begins tonight when German Chancellor Angela Merkel sits down to dinner with French President Francois Hollande. Mr. Hollande will attempt to use his "French charm" and get the German Chancellor to weaken her stance. Whoa, that almost sounds like the beginning of one of those romance novels, or whatever they call them! But what will most likely happen is that Angela Merkel will use Jedi mind tricks on Hollande, and he won't know what hit him! I know what that feels like, as I've had Jedi mind tricks played on me for years. HA! Chris Gaffney and yours truly say that the Big Boss, Frank Trotter, plays Jedi mind tricks on us. The global growth prospects got a boost overnight, when the China Securities Journal talked about the country introducing more-proactive policies to ensure stable growth in the world's second-largest economy. Then the Xinhua News Agency said, "China plans to boost Hong Kong's integration with mainland financial markets." As I've told you all a couple of hundred times before, China still has the treasure chest stuffed full of reserves that can be used to stimulate their economy without going into debt doing so. But even more, China has more tools to use, as they have not painted themselves into a corner like Japan, the U.S. and the eurozone have done by cutting interest rates to the bone and then going to quantitative easing. T years ago, when economists and analysts said that the Chinese economy would collapse, I said that it would moderate, but not collapse, and that's exactly what's happening! I love it when a plan comes together! Italy auctioned some bonds this morning, and actually saw decent demand for their debt, and yields actually fell for the first time in a month of Sundays. But even this news isn't enough to take the markets focus off the eurozone summit that, as I said previously, begins tomorrow. Here in the U.S., we'll see the color of durable goods orders for May, and pending home sales data from May. Not much in the way of market moving data. The "experts" are forecasting an increase in durable goods orders of 0.5%, and top lawmakers in the Senate say they have reached a deal on freezing student loan rates for another year. But get this: They are still deciding the mechanics for how the proposal should make its way through the legislature before Congress leaves for the July Fourth holiday week. Hey, just pass it, no wait! Chuck, don't go there! Other than that, U.S. consumer confidence fell for the fourth consecutive month in June. The index number dropped from 64.4 in May to 62 in June. You know me — not that I want to see this, but it's finally going in the direction I believe it should have been going all along, given the wars, the debt, the unemployment and the list goes on. So maybe this is playing catch-up now. And in the category of "What the heck is going on here?" Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission (CFTC) — you know, the guys I complain about all the time for not doing their jobs — said regulation inevitably will lead the agency to go beyond domestic borders to police the derivatives market. He's not the only one who sees it that way. "We are looking at the CFTC effectively becoming the global swaps regulator," said Hannah Gurga, head of European affairs at Icap. "Maybe that will be a good thing for financial stability, but it's something overseas regulators need to be grappling with quite seriously." Isn't that the way things go in life? Screw up something beyond recognition, and get more powerful. Then There Was This… Yesterday, I talked about how the U.S. government was recruiting people to sign up for food stamps. I find this to be totally wrong. A couple of readers sent me a note that just made me laugh and laugh. So here goes: "The food stamp program, administered by the U.S. Department of Agriculture, is proud to be distributing the greatest amount of free meals and food stamps ever. "Meanwhile, the National Park Service, administered by the U.S. Department of the Interior, asks us to 'Please Do Not Feed the Animals.' "Their stated reason for the policy is because the animals will grow dependent on handouts and will not learn to take care of themselves." Chuck again — talk about ironic! And that's all I'll say about that! To recap… A very tight range for the currencies yesterday lead us into what will probably be another tight range trading day for the currencies ahead of the eurozone summit, which begins tomorrow. Chuck believes the eurozone leaders will leave the markets with disappointment, unless they are buffaloed, as they were last summer here in the U.S. Chuck Butler Gold Takes Two Steps Back originally appeared in the Daily Reckoning. The Daily Reckoning, published by Agora Financial provides over 400,000 global readers economic news, market analysis, and contrarian investment ideas. Recently Agora Financial released a video titled "What Causes Gas Price to Increase?". More articles from The Daily Reckoning….
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| The Alternative Portfolio: Diversifying Away From a Traditional Allocation Posted: 28 Jun 2012 03:52 AM PDT
The good news is that I was able to create such a portfolio. In fact, over the time period tested, its performance topped that of a traditional large-cap/long-term bond portfolio. The portfolio can be replicated using exchange-traded funds. Unfortunately, this alternative portfolio is more volatile than a traditional portfolio comprised of large-cap stocks and long-term bonds. Furthermore, the time period used to test the portfolio may not be long enough to show whether its performance advantage will last well into the future. …So, I started with a bit of brainstorming to figure out what assets would make sense. On the equity side, I chose master limited partnerships (MLPs), real estate investment trusts (REITs) and micro-cap stocks. On the bond and income side, I chose Treasury inflation-protected securities (TIPS), high-yield corporate bonds and preferred stocks. Finally, I selected gold to provide exposure to commodities via a physical asset. …Physical gold avoids the transaction costs and use of leverage involved with investing in futures contracts or funds that invest in futures contracts. It can also provide a hedge against the deterioration of a currency's purchasing power. …Gold produced the highest returns over the period studied, while preferred stocks produced the lowest return. [source] PG View: I post this because I took a bit of a swipe at the AAII in a recent article I wrote, for declaring in a recent article on their site that "the three most important asset classes for individuals are stocks, bonds and cash." I'm encouraged to read that the AAII does indeed appreciate what gold can bring to a diversified portfolio.
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| Leeb sees negative rates supporting gold; Eveillard discounts deflation Posted: 28 Jun 2012 03:51 AM PDT GATA 2:37p HKT Thursday, June 27, 2012 Dear Friend of GATA and Gold: Money manager Stephen Leeb tells King World News that gold's bull market won't be over until real interest rates are positive again, and he doesn't expect that for years. But Leeb worries about the prospects for totalitarianism as the French government resumes its bloated growth and unemployment reaches socially disruptive levels in Europe. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/6/28_Th… Also at King World News, gold fund manager Jean-Marie Eveillard explains why he doesn't think deflation will prove too much of a problem for central bank money printing: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/6/27_Ev… CHRIS POWELL, Secretary/Treasurer * * * 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:
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| Gene Arensberg: Bears can’t convince gold and silver ETF holders Posted: 28 Jun 2012 03:51 AM PDT GATA 12:31p HKT Thursday, June 28, 2012 Dear Friend of GATA and Gold (and Silver): Gene Arensberg of the Got Gold Report says predictions of a collapse in gold and silver prices as the monetary metals sit at important technical levels do not seem to have been heeded yet by the main gold and silver exchange-traded funds, whose claimed metal holdings haven't changed much despite the recent decline in prices. Arensberg's commentary is headlined "Bears Can't Convince Gold and Silver ETF Holders" and it's posted at the GGR Internet site here: http://www.gotgoldreport.com/2012/06/bears-cant-convince-gold-and-silver… CHRIS POWELL, Secretary/Treasurer * * * 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:
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| Paul’s full Fed audit bill approved unanimously by House committee Posted: 28 Jun 2012 03:51 AM PDT GATA 10:40a HKT Thursday, June 28, 2012 Dear Friend of GATA and Gold: Reason magazine reports that U.S. Rep. Ron Paul's unadulterated legislation to audit the Federal Reserve in full, including its dealings with foreign banks, was approved yesterday in a unanimous vote by the House Oversight and Government Reform Committee: http://reason.com/blog/2012/06/27/ron-pauls-latest-audit-the-fed-bill-pa… Commenting on the bipartisan nature of the committee's vote, the New York Sun says: "It is absurd, after all, to think that the Fed ought to be independent from the branch of government that created it and before whom its chairman is required to testify. Or from the American people. And, more substantively, that it should be immune from an audit on the eve of its centenary. In the first century of the Fed's existence, the dollar has lost nearly all of its value. It is not much more than half of what it was when President Obama acceded, and little more than a sixth of what it was worth when President George W. Bush took office. No wonder that when this vote finally cleared the House Oversight Committee, it was without vocal opposition." The Sun's editorial is here: http://www.nysun.com/editorials/unanimous/87882/ CHRIS POWELL, Secretary/Treasurer * * * 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:
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| Demand Rises for US Silver Coins, Led by Silver Eagle Products Posted: 28 Jun 2012 03:51 AM PDT Silver coins are pulling in more buyers, based on fresh sales data from the United States Mint. 22 silver products experienced higher weekly sales as compared to the last one, and the top three surged by amounts exceeding 10,000. In particular, U.S. Mint sales reflect greater demand for the 2012-W Proof Silver Eagle and the [...]
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| Posted: 28 Jun 2012 03:48 AM PDT ALL ANIMALS ARE EQUAL. BUT SOME ANIMALS ARE MORE EQUAL THAN OTHERS - George Orwell, "Animal Farm"If this is such a good law, then how come Congress - the people who passed this law - are not covered under this law but under their own "special" healthcare coverage? There's not a lot to say about the SCOTUS decision on Obamacare other than, "okay, now how does the Government pay for this?" That plus now that the SCOTUS has upheld the ability of the Government to "mandate" how you have to live your life by calling the individual mandate a "tax," where exactly will our Government draw the line on regulating everything you do? Quite honestly this is probably one of the most depressing events I have witnessed with respect to the abdication of individual liberty - and the annexation of power and control - by the Federal Government. The fact that this particular SCOTUS put its stamp of approval on this move toward a totalitarian system is quite shocking. Initially the precious metals were blatantly smashed when the decision was announced. This is because once the dust settles, the toughest question is "where will the financing for Obamacare come from?" Several close studies of the entire legislation have suggested several trillion dollars will be required. Raising taxes on a declining income-earning workforce will not even remotely accomplish the task. The Government already has an insatiable demand for the funding to finance its rapidly escalating spending. The big banks backed by Fed know that this means more debt issuance and more money-printing and that's why there's been inexorable downward pressure on the precious metals once Asia - the phsyical gold buying part of the world - goes to sleep and the paper trading criminals in NY and London go to work. The past 14 months have been extremely difficult for those of us heavily invested in the precious metals sector. But the fundamental factors for doing so have become significantly stronger during this time period, punctuated by the affirmation by SCOTUS of Obamacare. In the context of the globally collapsing banking system and the serially collapsing EU countries, when the markets fully understand what has happened in this country today, the precious metals will take off to new highs as it will become crystal clear that the only two possibilities going forward are to print or allow complete financial collapse of the western world. Other than that, Mrs. Lincoln, how did you enjoy the show? 
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| Gold Lacks All Safe Haven Interest Ahead of Euro Talks Posted: 28 Jun 2012 02:19 AM PDT Bullion Vault
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| US Dollar: Wave Counts, Flight-to-Safety? Posted: 28 Jun 2012 01:47 AM PDT In light of how political systems have so utterly ruined the purpose and utility of the modern worlds essential and fungible units of exchange, and despite the oxymoron in our alluding to a flight-to-safety, we shall nonetheless endeavor ... Read More...
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| Posted: 28 Jun 2012 12:33 AM PDT {}
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| Commodities Sink on Rise in German Unemployment, EU Summit Anxiety Posted: 28 Jun 2012 12:22 AM PDT courtesy of DailyFX.com June 28, 2012 01:36 AM Commodities fell after Germany shed more jobs than expected, amplifying anxiety about the outcome of the EU leaders’ summit getting underway in Brussels. Talking Points [LIST] [*] Crude Oil, Copper Sold as German Jobs Data Sinks Risk Appetite [*] Gold and Silver Decline as US Dollar Gains on Safe-Haven Inflows [*] Pro-Growth Agenda at EU Leaders’ Summit May Boost Sentiment [/LIST] Commodity prices are following stocks lower in European trade after German unemployment rose more than economists expected in June. Anxiety about the outcome of the EU leaders’ summit getting underway in Brussels likewise seems to be applying downward pressure. Traders appear skeptical about policymakers’ ability to conjure up a meaningful near-term effort to contain the region’s sovereign debt crisis and reinforce its teetering banking sector. With the 2008 crisis triggered by the collapse of Lehman Brothers stil...
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| Gold and silver: you ain’t seen nothing yet Posted: 27 Jun 2012 11:00 PM PDT More so-so price action in precious metals over the last two days, with gold and silver still struggling for near-term direction in the face of continuing European political uncertainty. Trading ...
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By the end of the day Thursday, silver has crossed below its 18-month bottom of $26.25. It broke through this on the bid before 11:30 AM Pacific Standard Time, west coast United States. Therefore, expect possible further weakness tonight on the Globex. Silver fell quickly down to $26.13 for a spike-low that might be the bringer of warning for the future. Calls are being made for a weaker euro, such as is covered here. More pressure is being put on the United States financials, and thus the stock market, as $9 billion is reported lost at JPMorgan. Both of these signal bearish for precious metals, including silver.
by SGT
With global stock markets trading in the red, today Egon von Greyerz told King World News that people are going to witness the greatest financial collapse the world has ever seen. Egon von Greyerz, who is founder and managing partner at Matterhorn Asset Management out of Switzerland, also said, "…investors are under the illusion that the system will continue, but it won't." Here is what Greyerz had to say about the the coming financial collapse: "As always, Eric, I'm focusing on the big picture. We are in a crisis, and the outcome is absolutely certain. What is not certain is how we get there. The problem is it's not only one crisis, it's a number of crises. We have the first one which is the sovereign crisis."
It's a good thing we have a news media to perform the essential civic function of fostering an informed citizenry.
The FDA has approved its first weight-loss drug in 13 years — produced by a company Patrick Cox spotted in 2010.
"The FDA has been under mounting pressure to approve a new weight-loss treatment," says the Reuters story.
Clinical trials are set to begin later this year on a drug that tackles obesity in an entirely new way.
Major U.S. stock indexes are taking a one-two punch this morning.
While the broad market's down, we see that IHF – the iShares Dow Jones US Healthcare Provider ETF – is slightly in the green. Heh.
"Attitudes on Wall Street and Main Street couldn't get any worse right now," writes Greg Guenthner. "And that's actually a good thing for stocks."
"At this point, the Europeans are so craven and degraded they deserve to be indentured servants of the Chinese, which they will be," says perennial 
Gold and silver are a better bargain today than they were yesterday; the precious metals are sharing in the broad sell-off.
First-quarter gold coin sales are down year over year at three of the world's major mints.
Rep. Ron Paul's effort for a real audit of the Federal Reserve is closer to reality.
"Thanks for the good article on food stamps," a reader writes after yesterday's episode.
"My friend works at Wal-Mart here in Las Vegas," writes a reader adding some critical detail, "and he tells me how the SNAP people will offer to purchase items for a customer and then charge them half of whatever it costs."
"Very timely," adds a third. "But of all the people you mentioned that had a dog in this fight, you didn't mention us farmers, who are the real ones 'getting rich,' according to the lame stream media."
"Doesn't anyone find it interesting," writes a fourth, "that food stamp recipients can buy enough Coke to bathe in, enough Cheetos to stuff a mattress and enough Swanson frozen family dinners to ice skate on, but you are forbidden to purchase vitamins or supplements of any kind?"
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