saveyourassetsfirst3 |
- How Can Anyone in Europe Sleep Tonight With Cash in the Bank?
- Gold Is Money
- Hathaway – The Lengthy 10 Month Correction In Gold Is Over
- Sinclair: The War Between Manipulation and Buying
- Nigel Farage – Europe Is Unraveling & Headed For Collapse
- Central Planners Are Making Desperate Maneuvers Right Now
- LIBOR Explained
- Hilarious Gold Themed Cartoon
- Catharsis Is Good For The Portfolio
- Suppressed Gold price doesn't make sense!
- Jim Sinclair: The War Between Manipulation and Buying
- Hathaway - The Lengthy 10 Month Correction In Gold Is Over
- How India's government might adapt to its people's trust in gold
- SilverFuturist: Silver theories and the capital markets
- Are Banks Raiding “Allocated” Gold Accounts?
- Silver Update: Silver Conspiracy – 7.6.12
- Cash Savers and Economic Conservatives in Germany Are Under Attack.
- Weak Jobs May Mean More Printing and Higher Precious Metals Prices
- D – 63 and counting*
- Links for 2012-07-06 [del.icio.us]
- The Impact of Inflation and Deflation on Gold
- SocGen Advises "Holding Gold Tight" as ECB, China Cut Rates, UK Adds Another £50bn of QE
- Ayn Rands Hymn To Money
- Fiat Money in Death Throes
- Gold Glistens in July
- The Ancient Metal of Kings
| How Can Anyone in Europe Sleep Tonight With Cash in the Bank? Posted: 07 Jul 2012 09:54 AM PDT from silverdoctors.com: Jim Sinclair has released an email alert to subscribers stating that next week will see the cartel make one final take-down attempt of the metals, which Sinclair states will fail, as did the 7 previous attempts. From Jim Sinclair: It is a myth that Western banks are strong enough to weather the storm of a full blown banking crisis in Europe. It is a myth that the Federal Reserve will stand as the one hawk in the Western world and fiddle while it's Rome burns. Keep on reading @ silverdoctors.com |
| Posted: 07 Jul 2012 09:51 AM PDT
from wealthcycles.com: Despite the tradition of stock pushers and mainstream media to deride gold as an investment, the American public persists in holding gold in high esteem, according to an April Gallup poll. According to Gallup, Americans believe gold is a better long-term investment (28% of those polled) than real estate (20%), stocks (19%), savings accounts or Certificates of Deposit (19%), or bonds (8%). This faith in gold persists despite the public statements of investment gurus such as Berkshire Hathaway CEO Warren Buffett or economists such as Federal Reserve Chairman Ben Bernanke that scorn gold on the basis that "it doesn't produce anything" or does not yield a return. What gold does do is provide a store of value that offers hope for future prosperity to those who otherwise despair of watching the value of their paper currency erode with each new round of central bank printing, for those who once burned fear the fire of the stock markets, and for those who see the bond markets for the debt-burdened sinking pyramid that they are. Real estate? Despite a slight warming in some parts of the country, with banks continuing to slowly dole out foreclosures and short sales for fear of swamping the market, with governments continuing to buy up bad mortgages, it's far from certain that real estate has yet found a bottom; in some parts of the world (Canada, Australia) looming real estate crashes have still to play themselves out. But here's the most important thing to understand about gold—it is not merely another investment vehicle. In fact, gold is and has been for all of human history, money. In the August 2010 article, Is Gold a Currency? No, Gold is Money, Michael Maloney recapped a Wall Street Journal article by Jeff Oppdyke titled Rethinking Gold: What If It Isn't A Commodity After All? Oppdyke's argument is that gold behaves as a currency rather than a commodity, driven not by inflation but by movements in other currencies. Keep on reading @ wealthcycles.com |
| Hathaway – The Lengthy 10 Month Correction In Gold Is Over Posted: 07 Jul 2012 09:43 AM PDT
from kingworldnews.com: Four-decade veteran John Hathaway gave King World News exclusive distribution rights to the following piece. The prolific manager of the Tocqueville Gold Fund had extremely important news for holders of gold and silver around the world: "The good news is that the lengthy ten month correction in the metal and the shares appears to have reached a conclusion." This is a fantastic piece by the man who leads the five-star MorningStar rated fund. By John Hathaway, Tocqueville Asset Management L.P. July 6 (King World News) During the second quarter, the gold price declined 4.3% from $1,668 to $1,597. On a year to date basis, gold has appreciated 2.2%. Gold mining shares as measured by the XAU Index (PHLX Gold/Silver Sector Index) declined 9.7% in the second quarter and 11.9% on a year to date basis. That is the bad news. The good news is that the lengthy ten month correction in the metal and the shares appears to have reached a conclusion. On Friday June 29th, gold rose $45/oz. and the XAU jumped 3.4%. While it might be premature to declare an end to the correction based on the action of one day, we believe that the weight of all evidence as discussed in the following paragraphs provides a substantial basis to suggest the stage has been set for a resumption of gold's multi year advance. Keep on reading @ kingworldnews.com |
| Sinclair: The War Between Manipulation and Buying Posted: 07 Jul 2012 09:39 AM PDT
from jsmineset.com: ext week is the war between manipulation of gold by the West, and appetite for buying gold in the East, both from friendlies and enemies. Anyone that does not see today's gold market as a rig is blind or brain dead. There is a full blown crisis in Western world banking today, right here and now. There is a full blown crisis in sovereign debt of some weaker nations as in a very short while certain government will be out of money. The Eurosnobs hate each other which does not make for a fast reconciliation of a crisis.
Next week will be the time the cartel tries to break the gold price again. They have failed seven times, and will fail on the 8th. Gold is going to $3500 and above. All the lying and conniving only means the price will go higher. Just as Morgan's whale could not fight the market, the cartel cannot fight gold as we have a flight away from all fiat currencies. How can anyone in Europe sleep tonight with cash in the bank, even amongst the stronger nations whose banks are loaded with weak nation's paper. The house of cards is coming down right now. Trying to manipulate the price of gold to hide the crisis at hand is futile. If you have your positions on margin you are crazy and I cannot do anything for you. All others stand tall because gold will trade above $3500 and not in some LaLa Land future of Armstrong's imagination. Keep on reading @ jsmineset.com |
| Nigel Farage – Europe Is Unraveling & Headed For Collapse Posted: 07 Jul 2012 09:38 AM PDT
from kingworldnews.com: Today MEP (Member European Parliament) Nigel Farage gave King World News an extraordinary interview. Farage told KWN, "As we speak we're doing this interview live, the Spanish 10-Year bonds are trading back over 7% again. Nothing has been solved." Farage also said, "But the other point that I was making this week was that this bailout fund, this European Stability Mechanism, which is supposed to have firepower of up to 700 billion euros, it doesn't actually exist. It's imaginary." Farage also discussed gold, but first, here is what he had to say about what is happening in Europe: "We had this summit two weeks ago. The usual sort of thing, all sorts of horse trading going on right into the early hours of the morning. Then at about 4:30 in the morning an announcement gets made, there's been a breakthrough, well, of course they always say that don't they?" Nigel Farage continues: "We're told the bailout fund is now going to be more flexible, that it can bail out banks directly and not have to go through governments. For a few hours the markets believed them and there's a rally. And then, in a very short space of time, it all starts to unravel. Keep on reading @ kingworldnews.com |
| Central Planners Are Making Desperate Maneuvers Right Now Posted: 07 Jul 2012 09:35 AM PDT
from kingworldnews.com: With investors around the world are wondering which direction markets will head next, today King World News interviewed 25 year veteran Caesar Bryan. Gabelli & Company has over $31 billion under management and Caesar Bryan has managed the gold fund since its inception in 1994. Here is what Ceasar had to say regarding what is happening around the globe: "Since we last spoke, Eric, there was the summit between the countries in the eurozone. They agreed to separate the bank debt from the sovereign debt, but that doesn't fix the problem because the debt is still there. There are two issues, and the first one is too much debt and who is going to take the losses?" Caesar Bryan continues: "The second is the issue of competitiveness in some of the peripheral countries in the eurozone. That issue also remains unsolved. It was interesting because yesterday we had a number of central banks make moves. As an example, the ECB cut interest rates and they also lowered their deposit rate to zero. Keep on reading @ kingworldnews.com |
| Posted: 07 Jul 2012 09:32 AM PDT All markets are rigged! Invest accordingly! Only physical gold and silver in your possession is what counts, not electronic digits on a computer. The coming age of the end of jobs is here as computers and robots will take most jobs away from humans http://edition.cnn.com/2012/06/28/business/robotics-china-rising-wages/index.html . Thanks for watching! from bigdad06: ~TVR |
| Posted: 07 Jul 2012 08:18 AM PDT |
| Catharsis Is Good For The Portfolio Posted: 07 Jul 2012 08:09 AM PDT By George Acs: Every now and then we need a good catharsis, just as long as it's just a blip in time and signifies nothing of real meaning. Even rational people are allowed to have an occasional outburst without causing their integrity to be impugned. These days a single data point is interpreted as being fully predictive until the next data point is delivered. No one seems to notice if the two data points, sometimes separated only by mere moments, are sending polar opposite signals. Act first, think last. Earlier Friday on his CNBC appearance, Herb Greenberg twice emphasized "For Today," when discussing the significance of gold's price action and the reason behind the large movement. For tomorrow can just as easily bring an equally sized, yet opposite movement. That emphasis was equally appropriate for all of our markets in that there is neither vision nor memory and the reactions are often super-sized Complete Story » |
| Suppressed Gold price doesn't make sense! Posted: 07 Jul 2012 07:31 AM PDT Ladies & Germs, Although I'm not known for my brilliant flashes of insight, I had a thought this morning that really has me pondering. Why exactly would TPTB suppress gold prices when so much of it is held in paper form and derivatives? Let me explain. We all assume that TPTB are suppressing the price of gold to keep the USD strong. On occasion we see evidence that the two have de-coupled from their usual "inverse" relationship. So if POG and USD have decoupled then wouldn't it beneficial for the global financial markets to have a strong price of gold? Imagine Au at $5,000/oz. This would create hundreds of billions of worth on global financial markets. It would be an absolute boom for treasuries and central banks. Anybody holding paper gold would be able to liquidate their paper for FRN's at a 4 or 5-bagger level. Is it possible that the price is being withheld so that central banks and financial institutions shake out physical holders and weak fund positions? Are the scaring us into treasuries and long term Bonds? Once gold is absolutely trashed, will there then be a massive pump-and-dump of epic proportions? I'm just wondering . . . it serves no purpose for financial institutions or even certain governments to suppress the price of gold while they hold so much of it. What am I missing? :vollkommenauf: |
| Jim Sinclair: The War Between Manipulation and Buying Posted: 07 Jul 2012 06:53 AM PDT ¤ Yesterday in Gold and SilverThe gold price traded quietly during the Far East trading day on Friday, but developed a slight negative bias as the afternoon wore on in Hong Kong trading...and once it dropped below the $1,600 spot price mark at 9:50 a.m. in London, the gold price plunged eight or nine dollar in short order. The London low was noon local time...and then it rallied a hair into the New York open. Then at 8:30 a.m., gold jumped back over the $1,600 spot mark, where it ran into a wall of not-for-profit sellers immediately...and within twenty-five minutes was down over twenty-six bucks from its high just minutes prior. The high...which came around 8:40 a.m. Eastern time...was $1,611.20 spot. After the hammer fell, the gold price more or less traded sideways until about 12:15 p.m. in New York...then the got sold down some more from there, with the low of the day [$1,575.40 spot] coming shortly after 1:00 p.m. The gold price recovered about eight bucks from that low...and closed at $1,582.40 spot...down $21.50 on the day. Net volume was around 150,000 contracts.
It was pretty much the same story in silver, so I'll spare you the play-by-play on that. Silver's low price tick [$26.86 spot] came about five minutes before the 1:30 p.m. Comex close. The high tick [$27.86 spot] came at 8:35 a.m. From the low of the day, the silver price recovered about two bits into the close. Silver closed at $27.10 spot...down 60 cents from Thursday's close. Net volume was around 38,000 contracts. Silver had an intra-day move of a dollar yesterday...and is down over $1.40 since its high tick in London on Thursday, which came about thirty minutes before the Comex open.
The dollar index opened on Friday where it closed on Thursday....around 82.80...and then traded absolutely flat until the open of the Comex trading session at 8:20 a.m. in New York. From that point it took six hours to climb to its high of the day, which was was around 83.42...and then backed off a hair going into the close, finishing the week at 83.38...and down 58 basis points on the day. Gold got smashed for twenty-six bucks during the first twenty minutes of that rally in the dollar index...and then traded mostly flat for almost the entire balance of the dollar index rally. As Jim Sinclair said yesterday..."Anyone who does not see Friday's gold market as a rig, is blind or brain-dead." He would be right about that...and would equally apply to Thursday's trading day in both gold and silver as well.
The gold stocks gapped down...and then stayed down for the rest of the day, but managed to recover off their low. The HUI finished down 3.31% and, for whatever reason, the finance.yahoo.com website did not provide an updated daily chart for the HUI yesterday...as it was M.I.A. all day, so this little dinky one from Kitco will have to do.
The silver stock got hit pretty hard once again...and Nick Laird's Silver Sentiment Index closed down 2.41%
(Click on image to enlarge) The CME's Daily Delivery Report wasn't much to look at yesterday, as only 3 gold and 6 silver contracts were posted for delivery on Tuesday. The CME's Preliminary Report for Friday's trading day showed that there were still 1,863 silver contracts open in the July delivery month. The GLD ETF showed a tiny withdrawal of 13,640 troy ounces of gold...which may, or may not, have been a fee payment of some kind. There were no reported changes in SLV. The U.S. Mint had another smallish sales report. They sold 1,000 ounces of gold eagles....and 100,000 silver eagles. The Comex-approved depositories [which, by the way, are exactly the same warehouses mentioned in the CME's Daily Delivery Report three paragraphs above] showed that 597,988 troy ounces of silver were received on Thursday....and 245,773 troy ounces were shipped out the door. The link to that action is here. Since I'm on the subject, the metals delivered in the Daily Delivery Report just change ownership [and maybe location] inside the Comex-approved warehouses...and the silver mentioned in the previous paragraph is physically shipped on and off the exchange on a daily basis. Very little gold is ever shipped in or out of the Comex-approved warehouses, which is the main reason why I never report on it. Beside which, as Ted Butler has pointed out for years, there's lots of gold in the world, but silver is basically hand-to-mouth, which is most likely the only reason that the in/out activity in silver is as frantic as it is. Well, because of the Independence Day holiday, there was no Commitment of Traders Report yesterday, so I'll report on that in Tuesday's column. Here's a chart that Nick Laird sent me last night. It's the "Transparent Precious Metals Holdings" as of the close of business on Friday...and the chart is pretty self-explanatory.
(Click on image to enlarge) I have the usual number of stories for a Saturday, so I hope you can find the time to wade through the ones that interest you. Well, as Jim Sinclair said, anyone who didn't recognize yesterday's [and Thursday's] price bashing in gold as a rig job "is either blind or brain-dead." Hathaway - The Lengthy 10 Month Correction In Gold Is Over. How India's government might adapt to its people's trust in gold. China cuts interest rates...again. Nigel Farage: Europe is Unravelling & Headed for Collapse. ¤ Critical ReadsSubscribeGrowth in Retail Sales Slows From Last Year's NumbersSome of the nation's biggest retail chains reported on Thursday that sales growth slowed in June, as shoppers held back amid wavering consumer confidence and unemployment. A survey by Thomson Reuters of 18 retailers showed that sales at stores open more than a year were up 2.5 percent in June, well below the 7.7 percent increase recorded in June 2011. The same-store sales results surpassed Wall Street analysts' forecasts of a 2.4 percent rise. Retailers have seen lower spending over all by domestic customers, a drop in consumer confidence as millions of people remain out of work and fewer tourists are willing to spend amid a global economic slowdown. This story was posted on The New York Times website on Thursday...and I lifted it from yesterday's edition of the King Report. The link is here.  Disability Ranks Outpace New Jobs In Obama RecoveryMore workers joined the federal government's disability program in June than got new jobs, according to two new government reports, a clear indicator of how bleak the nation's jobs picture is after three full years of economic recovery. The economy created just 80,000 jobs in June, the Bureau of Labor Statistics reported Friday. But that same month, 85,000 workers left the workforce entirely to enroll in the Social Security Disability Insurance program, according to the Social Security Administration. The disability ranks have outpaced job growth throughout President Obama's recovery. While the economy has created 2.6 million jobs since June 2009, fully 3.1 million workers signed up for disability benefits. This story was posted over at the investors.com Internet site yesterday...and I thank reader 'David in California' for sending it. The link is here.  Countrywide Issued VIP Loans to Influence Congress: ReportKatherine Mangu-Ward, editor of Reason magazine enlightens Maria Bartiromo about Countrywide's bribes on CNBC yesterday. This 4:39 minute video is posted on the cnbc.com website...and I thank reader 'Tom in Thailand' for sending it along. The link is here.  England's Serious Fraud Office to launch criminal investigation into Libor scandalDavid Green, the head of the SFO, said on Friday he had "decided formally to accept the Libor matter for investigation". The FSA and US regulators fined Barclays 290m last week for attempting to manipulate the key rate as part of a wider investigation that includes a number of banks. The Chancellor told Parliament last Thursday that the SFO was in talks with the City financial regulator over the scandal. On Monday, the SFO said: "Now that the investigation into the issue of regulatory misbehaviour has concluded, the SFO are considering whether it is both appropriate and possible to bring criminal prosecutions ... we hope to come to a conclusion within a month." This story was posted on The Telegraph's Internet site early yesterday afternoon local time...and I thank Roy Stephens for his first offering of the day. The link is here...and the embedded graph is worth the trip all by itself.  Barclays Sued by Investor Over Alleged Euribor ActionsBarclays Plc was sued by an investor who claimed her futures-trading business was harmed by the bank's admitted manipulation of the Euro Interbank Offered Rate. A copy of the complaint, which also names JPMorgan Chase and Citigroup Inc. among other defendants, was provided by Hagens Berman Sobol Shapiro LLP, the law firm representing the investor. The filing couldn't be independently confirmed yesterday on the website of the federal court in Manhattan. As part of settlements with U.S. and U.K. regulators, Barclays has admitted rigging the London interbank offered rate, or Libor, as well as the Euribor, its equivalent in euros, as early as 2005. In testimony to the U.K. Parliament this week, Robert Diamond, who resigned as the bank's chief executive officer, apologized and said 14 Barclays traders were involved. "Based on what we've seen so far, the rate-fixing scheme was apparently an open secret within Barclays, leaving a broad trail of evidence of the banks' complicity," Steve Berman, a lawyer for the investor, said yesterday in a statement. The investor, Karen Kalaway, was the principal of Riff-Raff Trading Inc. in the Chicago suburb of Inverness, Illinois. Her lawsuit seeks to represent all U.S.-based investors who bought or sold Euribor-related financial instruments from Jan. 1, 2005, to Dec. 31, 2009. I thank West Virginia reader Elliot Simon for sending me this Bloomberg story that was posted on their website late last night...and the link is here.  Greece drops plan to sweeten bailout termsGreece has dropped plans to ask for easier terms for its second bailout, after being warned the plea would be turned down, the country's finance minister said. The country is "off-track" in carrying out structural changes demanded by lenders -- the European Commission, the International Monetary Fund and the European Central Bank -- Yannis Stournaras told reporters after a 50-minute meeting in Athens with the lenders, known as the troika. "We can't ask for anything from our creditors before we get it back on course," said Stournaras, who was sworn in hours before the meeting. "There is light at the end of the tunnel but it is a long tunnel," he separately told the Financial Times. This UPI story was filed from Athens yesterday...and is Roy Stephens second offering of the day. The link is here.  Debt crisis: Spain back in the danger zone as politicians wrangleSpanish and Italian borrowing costs soared back into the danger zone as traders bet that the policy action by central banks was inadequate defence against the continued political and financial chaos in the eurozone. The yield on Spain's benchmark 10-year bond rose above the 7pc bail-out level amid fears that opposition in Germany and Finland could crush the rescue plans agreed in Brussels last week. The Finnish finance minister, Jutta Urpilainen, said her country was not prepared to keep the euro "at any cost." She said the euro was "use for Finland", one of the eurozone's last remaining AAA-rated countries, but added: "Collective responsibility for other countries' debt, economics and risks; this is not what we should be prepared for. We are constructive and want to solve the crisis, but not on any terms." European stock markets fell sharply, the euro dropped to its lowest level for three and a half years against the pound, and the yield on Italian 10-year bonds rose to 6.25pc, despite the move by the European Central Bank, the Bank of England, and the Bank of China to pump liquidity into their economies. This story was posted on the telegraph.co.uk Internet site late yesterday afternoon BST...and is also courtesy of Roy Stephens. The link is here.  SPIEGEL ONLINE Survey: Germans Oppose Further Euro Crisis BailoutsEurope is now in the third year of its sovereign debt crisis and the prospect of a breakup of the single currency no longer seems as far fetched as it once did. But from the perspective of most Germans, the euro crisis is still something that mainly affects other countries, namely Greece, Spain, Portugal, Italy, Ireland and now Cyprus. But although the German economy has shown itself to be surprisingly robust, with unemployment falling and tax yields rising, Germany will not be able to withstand the negative trend in the euro zone for ever. "The crisis in the euro zone is catching up with the German economy," commented Ferdinand Fichtner, chief economist at the German Institute for Economic Research, earlier this week. Indeed, the institute has just dropped its growth forecast for the German economy for 2013 from 2.4 percent to just under 2 percent. Now, a new survey conducted on behalf of SPIEGEL ONLINE shows that Germans are worried about the crisis and the response by the German government. Their main concern appears to be inflation, with 69 percent of respondents saying that the prospect of significant price increases was a serious concern for them. Only 30 percent said they were not worried, whil |
| Hathaway - The Lengthy 10 Month Correction In Gold Is Over Posted: 07 Jul 2012 06:53 AM PDT  This King World News blog was posted in the wee hours of this morning...and just made it in the door before I hit the 'send' button. I haven't read it yet, but when John Hathaway is talking, everyone in the gold world should be listening. The link is here. |
| How India's government might adapt to its people's trust in gold Posted: 07 Jul 2012 06:53 AM PDT  The lure of gold in India is an age-old phenomenon. Stringent legal or physical measures to curtail the appetite for gold did not succeed in the 40 years after Independence; they only encouraged smuggled imports at a very high cost. Ultimately, gold policy was liberalised in the reforms period, starting in the 1990s. A spate of measures was introduced to wean away households from putting their financial savings into gold, so as to conserve foreign exchange and increase the use of paper-based financial products. But these have not led to the goal of curtailing gold consumption and imports. |
| SilverFuturist: Silver theories and the capital markets Posted: 07 Jul 2012 05:31 AM PDT The people have not been educated in the capital markets, it is up to us to figure it out. from silverfuturist: ~TVR |
| Are Banks Raiding “Allocated” Gold Accounts? Posted: 07 Jul 2012 05:20 AM PDT Are Banks Raiding "Allocated" Gold Accounts? Posted on July 6, 2012 by WashingtonsBlog Beware: "Allocated" Gold May Not Really Be There In 2007, Morgan Stanley paid out $4.4 million to settle a class-action lawsuit by its clients after Morgan Stanley charged them to buy and "store" precious metals for them, but neither bought or stored the metals. (Similarly, a 2011 class-action lawsuit filed in federal court in New York accused UBS Financial Services of misleading silver investors and charging them storage fees for metal that was never actually purchased, segregated, and stored for them.) Avery Goodman points out that Morgan Stanley has once again just launched a similar scam, offering "allocated" metals, but gaming the definition so that the holdings are not really allocated. On May 21st, Matterhorn Asset Management's Egon von Greyerz alleged that Swiss banks are trading physical gold bullion which is being held in special "allocated" accounts for its customers: We are stressing to investors to take their gold out of the banking system, not only because there are runs on banks that will continue, but the risk of being in the banking system is major. So you should take the additional step of not just owning physical gold, but also owning it outside of the banking system. We (just) had an example of a client moving a substantial amount (of gold) from a Swiss bank to our vaults, and we found out the bank didn't have the gold. This was supposed to be allocated gold, but the bank didn't have it. We didn't understand why there was a delay (in our vaults receiving the gold), but eventually we found out why there was a delay (the bank didn't have the gold). It's absolutely amazing, but not surprising. This confirms what I've always thought. Not only should you not have gold in banks or even unallocated gold, but even allocated gold. It seems that some banks don't even possess that. So the risk of having gold in the banking system is major." On May 23rd, John Embry – Chief Investment Strategist of Sprott Asset Management, with $10 billion under management – added: When the customer finally got his gold, it was 2011 minted bars. This made no sense because he had been holding the allocated gold for years. That's just another example that even the allocated gold in the banking system has probably been loaned out. Many of these customers will wake up one day and realize they entrusted their gold to the wrong people." Jim Willie claims that: Swiss face hundreds of $million lawsuits, for refusal to deliver Allocated gold. Similar reports have come from Canada and other countries. Indeed, Jim Willie alleges today: Allocated Gold accounts across the Western world have been confiscated, sold, and replaced with shabby paper gold certificates illegally…. The account raid practice has been widespread in Europe, London, and United States. Seizure of Allocated Gold to Pay for Other Debts Another danger of letting big banks or other large financial institutions hold your gold: the gold might be seized to pay for their other debts. For example, Barron's reported last December that MF Global's trustee raided "allocated" gold and silver accounts … while continuing to charge storage fees: It's one thing for $1.2 billion to vanish into thin air through a series of complex trades, the well-publicized phenomenon at bankrupt MF Global. It's something else for a bar of silver stashed in a vault to instantly shrink in size by more than 25%. That, in essence, is what's happening to investors whose bars of silver and gold were held through accounts with MF Global. The trustee overseeing the liquidation of the failed brokerage has proposed dumping all remaining customer assets—gold, silver, cash, options, futures and commodities—into a single pool that would pay customers only 72% of the value of their holdings. In other words,while traders already may have paid the full price for delivery of specific bars of gold or silver—and hold "warehouse receipts" to prove it—they'll have to forfeit 28% of the value. That has investors fuming. "Warehouse receipts, like gold bars, are our property, 100%," contends John Roe, a partner in BTR Trading, a Chicago futures-trading firm. He personally lost several hundred thousand dollars in investments via MF Global; his clients lost even more. "We are a unique class, and instead, the trustee is doing a radical redistribution of property," he says. Roe and others point out that, unlike other MF Global customers, who held paper assets, those with warehouse receipts have claims on assets that still exist and can be readily identified. The tussle has been obscured by former CEO Jon Corzine's appearances on Capitol Hill. But it's a burning issue for the Commodity Customer Coalition, a group that says it represents some 8,000 investors—many of them hedge funds—with exposure to MF Global… At stake is an unspecified, but apparently large, volume of gold and silver bars slated for delivery to traders through accounts at MF Global, which filed for bankruptcy on Oct. 31. Adding insult to the injury: Of the 28% haircut, attorney and liquidation trustee James Giddens has frozen all asset classes, meaning that traders have sat helplessly as silver prices have dropped 31% since late August, and gold has fallen 16%. To boot, the traders are still being assessed fees for storage of the commodities… Taking Matters Into Your Own Hands Given the numerous reports of supposedly "allocated" gold not being there, it should not be entirely surprising that wealthy investors are taking matters into their own hands … literally. Kirby Analytics notes: We are hearing anecdotal accounts that beneficial owners of "allocated" gold bullion in London and other European centers have showing up at bullion banks and demanding their physical metal be a] viewed and assayed, and then b] withdrawn from the vaults of banks. And as we pointed out in 2010: Omnis' Jim Rickards, GATA's Adrian Douglas and others have demonstrated that the big bullion dealers and ETFs don't have nearly as much as physical bullion as they claim. Should a substantial portion of investors in these vehicles demand physical delivery at the same time, it could cause a panic in the gold market which would cause a huge run up in gold prices. Does this mean you shouldn't own gold? No … It just means that you should only buy physical gold, and store it somewhere you can actually get your hands on it. http://www.washingtonsblog.com/2012/...-be-there.html |
| Silver Update: Silver Conspiracy – 7.6.12 Posted: 07 Jul 2012 05:19 AM PDT brotherjohnf: Silver Update 7/6/12 Silver Conspiracy
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| Cash Savers and Economic Conservatives in Germany Are Under Attack. Posted: 07 Jul 2012 03:16 AM PDT Germany has a very long history of thrift, hard work and production of manufactured products shipped all over the world. Since their banks did not engage in toxic housing loans and derivatives and other kinds of very risky loans placed by other international banks, they are ranked number one in the Euro-land membership. Both the German national government and the citizens of Germany are currently the most economically sound in Europe. As a result of this positive condition, Germany, as a member of Euro-land is a cash grab target and is looked upon to be the beneficial savior for all their non-saving and wasteful neighbors who are primarily located in southern Europe (where those economies are a massive wreck). German citizens, in response to these shrill howls, are saying "Nein!" They are just plain tired of being the paymaster for those who spend like drunks and assiduously avoid work. Euro-land central bankers, the IMF, the World Bank and numerous others with banking and political influence are piling on the pressure for Germany to reach out and save their collective neighbors to prevent a smashing failure of the grand Euro-land experiment. That stupid idea was destined to crash and burn from its inception. In our view, why should hard working Germans pay the vigorish, the "interest juice" to a bunch of crooked bankers who made bad loans? Those lenders thought those loans were bullet proof since the respective national governments were standing behind them. Guess what? Those TBTF (too big to fail) governments standing behind the loans are insolvent. They can no longer sell their crappy smoke-and-mirror bond paper! The game is up and D-Day or debt day is nigh. We say, let 'em all go broke and start over, writing-off trillions in paper bonds, notes, bills and currencies. They will never get paid anyway; they just want the game to stay in play to continue their free and glorious ride to a bankers' land of plenty. We say, let's do an "Iceland." We can write it all off and stiff the banksters! What would they do, sue the national governments? More likely the governments will be suing them for fraud. Combining a wide group of nations with vastly differing economic conditions seemed to be a no-brainer failure to us back in 2003. With 17 countries involved and all of those different languages and cultural differences, how could it be possible to make everyone equal, particularly on the economic front? As we write this essay on June 25th, 2012, most markets are oversold and readying to base and rise. However, during the last trading week of June 25-30, we expect further volatility and disruptions before things settle down and begin to trend enough for reasonable trading and investments. Expect more hard markets' selling that could arrive next week, producing double bottoms on many charts before new rallies. Be aware and be alert. We expect gold bullion to retrace its price from its current low back to $1,736.50 (as a minimum) in the third quarter of 2012. There should be much wider volatility in the markets in the fourth quarter of 2012 based upon the United States national election, related political lawsuits and media coverage, as well as normal technical and calendar cycles. Gold investors of all stripes (including futures traders, shares traders, shares investors and options traders) need to understand we could see what we would call "normal" wider trading ranges with increased volatility. This trading range expansion will continue until a crazy high top is finally posted for precious metals. We should have numerous normal events and non-standard political-economic disruptions imposed over the regular technical and annual trading calendar. This produces markets more difficult to trade as to trend, timing and routine logic. It is incumbent upon us all to find the best of the best and to clearly understand an exit strategy before installing a new trade or investment. Those managing risk will be ultimate winners in this convoluted and erratic trading environment. We think solid producing companies that are able to self-finance, as they move forward in this market place, will do better than those that are under-funded and must sell more equity to continue operations. The higher quality junior exploration and discovery companies that have two to three years of cash in the till and who own a quality property that sits next door to a senior miner who's hungry for new resources, should find themselves in a good spot for 2012 and 2013. Our highest predicted gold price forecast for 2012 could land in the last quarter matching the previous high of $1,923.00. There is a potential for a trading overshoot to $2,000.00 resistance. In 2013, gold might touch $2,250.00 to $2,450.00. Silver prices have been depressed but could rise to our 2012 forecast of $38.48 this year with an overshoot potential to $44.48 to $48.48 in September. Our dilemma in forecasting higher prices is the inability to plan for unknown fall election influences. Added to that, the potential global stock market crash that is expected September 23-25, 2012, and the messy negative press and acrimony falling out of the election season and credit trauma in Europe, gives us a magnificent market disarray to untangle. We think "can kicking time" is about over for Europe (especially for Greece and Spain). Either some of these broken nations drop out of Euro-land or, the entire global bond system goes broke; and in that case, it wouldn't matter much which way it goes. We are entering three very market-sensitive time cycles. Those would be June 25th-29th, the latter half of July and September 23rd-25th. With the election on November 6th all market controllers and politicians will be working hard to keep everything related to markets in play and positive as much as possible. If they fail, we think failure will occur on the above September dates. If the markets stay together through November 6th, we could see follow-on selling after the voting or after the December holidays. Read Adam Fergusson's book entitled When Money Dies to discover what happened in the Weimar hyper-inflation and what happened to Austria's 400 member parliament in 1918-1920. If you thought Germany was slammed, read that book and learn how Austria was in even worse condition as the country went totally insolvent and then was put up for sale to the highest international bidder. We would strongly suggest reading this book to the naughty crowd discussed above. There is not going to be a pretty ending for this government banker sector known as Bankster Land. The advice we can offer is to expect nothing from these situations and hope for the best. Take care of family and friends, invest in hard assets and daily necessities, and soundly cut back your standard of living. We all have things we could do without and would probably be the better for it. Be careful out there. Control risk first, but work at enjoying the simpler things in life. More than ever, it is important to take immediate necessary precautions to protect yourself and your family and friends. Traders and investors should be buying precious metals and select shares right now. In our newsletter we have a great list of trading and investing ideas for you. Meanwhile you can never go wrong buying physical precious metals and holding them for security. We've had a constant run of nearly 12 years with gold rising +15% per year or more, so this remains a good trade. In the last 12 months, gold rallied over 34% and is going even faster. As outstanding as those numbers are, silver could be doing even better. Inflation-adjusted gold should be about $2,350.00. For now, charts are telling us the final top is nowhere near. It's not going to stop anytime soon. In fact, we predict those annual percentages will rise even more. This offers a chance, arriving only once in 25 years on the historical commodities cycles. Navigating the markets from July 1, 2012, through the end of March, 2012 might be difficult due to the national elections, contentious election primaries, the hopeful resurrection of Europe's credit and dealing with Greater Depression II, which is firmly upon us at this time. Meanwhile Asia is slowing down as their world-wide customers are drastically slowing, unable to continue to buy manufactured goods from China, Japan, Korea, Indonesia and Malaysia. However, in our view, the oversold precious metals markets will rebound from an oversold condition, rising to perhaps new highs later this year or, early next year.
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| Weak Jobs May Mean More Printing and Higher Precious Metals Prices Posted: 07 Jul 2012 01:58 AM PDT
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| Posted: 07 Jul 2012 01:24 AM PDT "Summer afternoon – Summer afternoon… the two most beautiful words in the English language." –Henry James Occupy. #NatGT: "The hundreds of thousands who participated in Occupy protests last fall did not trek to Philadelphia." And? The value of a conference is in the deliverables: A vision statement, a web site, relationships formed, lessons learned. We shall see. Montreal. Carré rouge: "Mathias Bressan was blocked by a bodyguard when he tried to offer a red square to Premier [Charest]. His colleague, Thomas Prédour, told the media yesterday that he then took back the red square and attempted to 'discuss' with the Premier. 'He retorted that if I advanced, I would be handcuffed and escorted from the congress and that I would see what Quebec is all about.'" Oh? … New media, study: "[With twitter, [i]t's like people on the ground had CB radios and were able to communicate amongst themselves, previously an advantage for police, but it has become an advantage for protesters." … Electoral politics: "The Quebec Liberal Party [is] opposed to the installation of voting booths in CEGEPs [defined] and universities." One reason why. IA. "Roughly 150,000 people, or about 5 percent of Iowa's population, will not receive Medicaid coverage [under ObamaCare]. Governor Terry Branstad … does not intend to go along with Medicaid expansion." NJ. "Soon after, someone in [Gov Chris] Christie's party put his arm around the 49-year-old and escorted him in the other direction." No doubt (Susie Madrak). NY. Fracking, academic integrity: Deans vs. Profs. Note that Big Oil is unlikely to have bought off the English Department. … Drones: "'Wait, you guys practice tracking enemies by using civilian cars?' a reporter asked. One Air Force officer responded that this was only a training mission, and then the group was quickly hustled out of the room." OH. Privatization: "[SB314's] other 144 pages finalize the privatization of the state's economic development activities, a controversial move that puts billions of taxpayer dollars into the hands of unelected, unaccountable bureaucrats not subject to OH's ethics, public records or public meetings laws." What could go wrong? Note Ds cooperated with Rs to pass the bill. The blogger, partisan though not Kossackian, can't understand this. PA. Fracking: "It wasn't a spill. It was 'a release.'" … Voting: "More than 758,000 registered voters in PA do not have photo identification cards from the state Transportation Department, putting their voting rights at risk." … Tinpot tyrants: "The state paid a Fayette County woman and her lawyer $85,000 to settle her claim that five state troopers from the barracks near Uniontown pepper-sprayed and urinated on her while she was shackled." Only $85K? TN. "The Memphis branch of Planned Parenthood received a federal grant that will [offset half] the loss of [$748,000 in] state funding last year." TX. Common humanity: "It made me sick to think this guy was executed based on this investigation." (Cf. FL lifeguard: "[We] should have jurisdiction to help someone.") … "In a nation that only ranks 37th in health care out of all the world's nations, TX ranks 50th out of all the states. TX delivers the poorest health care in a nation with the poorest health care of any developed nation." … Corruption: "Houston City Councilwoman Helena Brown subtracted hours from employees' timecards in apparent violation of federal law, according to records obtained by the Houston Chronicle." VA. Corporatization: "I'm not kidding. Gov. McDonnell this afternoon announced the appointment of 'Carly Fiorina of Lorton, Chairman of Carly Fiorina Enterprises and Former Chairman and CEO of Hewlett-Packard' to the James Madison University Board of Visitors." Outside baseball. General Welfare: "[In Madison's] draft of the VA Constitution, he included rights to free education and public land." … Voting: Nirvana bassist Krist Novoselic, chair of FairVote was on Maddow Thursday evening, July 5, to talk about Proportional Representation. (Take that, Sid Vicious!) … Social tip: "[T]here's an unexpected naïveté among the truly powerful; they assume that anyone who has arrived at their desk has survived the scrutiny of handlers." The economy. Nobody knows anything watch, Nate Silver: "We just do not have anywhere near enough to data to make confident claims about exactly which economic variables are important" to election polling." … Bob Dole: "Things are going to get better. Be optimistic." Off message! Robama vs. Obomney watch. "[OBAMA:] When you hear all these folks saying, 'Oh, no, no, this is a tax, this is a burden on middle-class families,' let me tell you, we know because the guy I'm running against tried this in MA and it's working just fine–even though now he denies it." …. Romney: "Although his health-care mandate bears a striking resemblance to Obama's, Romney has tried to convince voters throughout the campaign that they're not at all the same." So, we should vote for Obama because he passed Romney's plan? Or we should vote for Romney because he didn't? Or we should vote for neither, because Obama/RomneyCare is full of #FAIL and leaves billions on the table? Libertarian Party. "[Gary] Johnson … and Buddy Roemer … have both qualified for additional federal matching funds for the primaries. In the July installment, Roemer gets $66,491 and Johnson gets $130,059." The trail. Those pesky independents! "Most voters have well-defined opinions about Obama. Romney is the variable here. And undecided voters have almost no opinion about him whatsoever." If Romney doesn't watch out, Obama's going to strap him to the roof of his own car. … Alternatively: "[Most independent voters] can probably tell you that Mitt Romney's economic plan is to repeal Obamacare and shrink the government. It may not make much sense, but it's clear. Ask what Obama's plan is, and they won't be certain. They will know, however, that what he has done hasn't worked. And by the fall, many independents will have made up their minds." Romney. "[ROMNEY:] There's a lot of misery in America today. And this kick in the gut has got to end." I know! Tax cuts! … Oppo? "To date, there has been no legitimate explanation for Mitt Romney having cast a vote in the January 2010 Special Election for the U.S. Senate between Scott Brown and Martha Coakley. At the time of his vote (which he has admitted doing) he owned no house in MA, and yet he was registered to vote from the address of his son's unfinished basement in Belmont, MA." Obama. "[OBAMA:] So we've got to grow the economy even faster." Even? … Advance work: "Dozens of supporters passed out from the extreme heat at an Obama campaign event in Pittsburgh on Friday. It didn't appear that the president cut his stump speech, which went on for more than half an hour, short because of the heat." Good thing nobody died. Why no water? … Advance work? "At one point, [Obama] consoled a crying woman, Stephanie Miller, who was telling him a story. Miller, reached by phone afterward, said her sister, Kelly Hines, died from colon cancer four years ago because she could not afford proper health insurance. She had no employer-provided coverage. 'Even after she was diagnosed with cancer, she was told her income was too high for Medicaid,' Ms. Miller said. 'I thanked him for the getting the Affordable Health Act passed." Tactically, I'd hate to think this incident was anything other than spontaneous. But see NC 2012-06-30 at "Lynn Sweet." Morally, "We are all Kelly Hines," and all should be covered, which ObamaCare does not do. * 63 days 'til the Democratic National Convention ends with a banquet of giant bags of Krispy Kreme donuts on the floor of the Bank of America Stadium, Charlotte, NC. When I get older, losing my hair… And my ability to count… * * * Readers, thanks for all the comments, some of which I am still thinking about, and some of which are incorporated here.
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| Links for 2012-07-06 [del.icio.us] Posted: 07 Jul 2012 12:00 AM PDT
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| The Impact of Inflation and Deflation on Gold Posted: 06 Jul 2012 11:16 PM PDT gold.ie |
| SocGen Advises "Holding Gold Tight" as ECB, China Cut Rates, UK Adds Another £50bn of QE Posted: 06 Jul 2012 11:08 PM PDT |
| Posted: 06 Jul 2012 10:00 PM PDT Gold University |
| Posted: 06 Jul 2012 10:00 PM PDT Gold University |
| Posted: 06 Jul 2012 09:05 PM PDT
from forbes.com: The normal seasonal trend for gold shifts around this time of the year, and this combined with the recent high level of bearish sentiment suggests an important opportunity may be at hand. Silver prices plunged on June 28. The iShares Silver Trust (SLV) hit a low of $25.34, which was below both the May and, more importantly, the December lows. From a technical standpoint, this was certainly a negative development, and for some gold bulls it was another reason to turn negative. In early June, my review of market commentary as well as the Commitments of Traders (COT) data suggested that sentiment on gold had become quite negative. Since the high last September, it has been my view that we would see a pause in the major uptrend that would last long enough to reverse the very high bullish sentiment. The corrective period has lasted longer than I expected, but prices have held well above key Fibonacci retracement support levels. This along with the confirmation of the monthly highs in both the Comex gold futures and the SPDR Gold Trust (GLD) by the on-balance volume (OBV) indicates that the major trend is still positive. Keep on reading @ forbes.com |
| Posted: 06 Jul 2012 09:03 PM PDT
from aheadoftheherd.com: Richard (Rick) Mills Ahead of the Herd As a general rule, the most successful man in life is the man who has the best information "The fundamental factors that have driven the gold bull market… remain very much in place." Morgan Stanley. "Fears of another banking crisis amid a Greek exit from the euro zone are growing. This also raises the likelihood of further central bank action to calm markets and alleviate a possible slump. Money printing, along with the European Central Bank's large liquidity injections for the banking system, has been good for gold. And real interest rates are negative in much of the developed world, which will also fuel fears of an eventual jump in inflation." Moneyweek.com "Gold meanwhile, shall once again slap the overwhelming number of perma-bears in the face again on its way to a new, all-time high." Peter Grandich Better than Gold Gold's price has risen because of the abuse and mismanagement of our monetary and currency systems – throughout history, gold has always shone the brightest when trust breaks down, confidence falls and fear climbs. Central banks money printing is out of control – gold's price will continue, has to continue, too rise in value against all depreciating paper currencies. Gold is up about seven times from its lows more than a decade ago. What's the upside from here? If gold hits $5000.00 an ounce it's a triple from here. What if gold reaches $10,000 an ounce? Well, you've got a nice return and it's this authors belief that gold and silver bullion and coins should be part of every investors portfolio. But History shows us, time and again, the greatest leverage to gold's rising price is owning gold exploration/development junior mining stocks. Will mainstream investors eventually catch on to the fact they need to own both gold and gold shares? Keep on reading @ aheadoftheherd.com |
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