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- Most Important Silver COT Chart for 2012
- The Implication of Currency Dilution
- EUR/USD: A Possible Trend Reversal
- Gold Sentiment Increasingly Positive - Market Looks for Signal This Week
- Gold Buyers Look For Trend
- Two Keys For The Next Gold Breakout
- What’s your weight worth in silver?
- Recent Moves in Gold and Silver: A Rally or a Pullback?
- Gold bounces back on wedding season demand; up by Rs 65
- United States all set to become biggest supplier of Gold to India
- Vietnam to ban ‘Gold in and Gold out'
- India Gold reserves unchanged at $25.76 billion
- PRECIOUS-Gold slips below $1,620/oz as euro retreats
- Gold prices steady; traders look for direction
- India’s gold lust might get a boost from Uncle Sam
- S&T: Gold, Silver, China, Apple, S&P & More
- Guest Post: “Future Silver Supply More At Risk Than Gold”
- Fabian: Collapse Confirmation
- Jeff Berwick on Dollar Vigilantes, Inflation Protection and the Profitable Allure of Permanent Tourism
- Hathaway – We Are About To See $100+ Up Days In Gold
- Silver Update: The Last Bubble 7.29.12
- Remedies for ‘Stuck in mud' U.S. economy will drive gold much higher
- Austerity At The Olympics: Each “Gold” Medal Contains 1.34% Gold
- Myths and Facts About the Gold Standard
- Silver Price Recovers on Improved Market Sentiment
- I Didn’t Build This
| Most Important Silver COT Chart for 2012 Posted: 30 Jul 2012 11:14 AM PDT Mr. Arensberg wanted me to share with you-all the chart below, which he says is the "most important chart for the CFTC commitments of traders (COT) data for silver so far in 2012." Gene already commented on the very bullish positioning in the Vulture subscriber charts over the weekend, but he wanted a visual representation of it available. The chart is of the short positions by the traders the CFTC classes as "Managed Money," including hedge funds, Commodity Trading Advisors (CTAs) and other funds that trade futures for clients. They are normally on the long side for silver futures, but over the past couple months they have been adding more and more short positions up to a new record high for the entire disaggregated COT report data going back to 2006. Here is the chart: Source: CFTC for COT, Cash Market for silver. As of Tuesday, July 24, with silver at $26.93, Managed Money traders held the highest ever number of bets that silver would fall in price (17,575 short contracts). Continued… The high Fund short position is a big reason that the Managed Money net long position is so very low, at just 3,015 contracts. Their shorts offset a slightly higher number of longs. Here is that graph:That is a very, very small net long position! And, if you believe like we do, a very low Managed Money net long position means there is a lot of buying horsepower sitting on "go" for when the Funds think a new rally is getting underway. Mr. Arensberg is convinced that the Funds have built up that record high short position as a kind of insurance – a "just in case hedge" to protect them if silver broke down through the super-important long time technical support level of $26. (But silver did not break down through $26, did it.) He believes that if silver were to move back higher, up through about $28.50 or maybe $29 or so, the Funds would be quick to buy back those short bets on silver – because it will have broken out of a bottom consolidation pattern. What is more, once it is clear that the Funds have started closing out all those record high short bets, all the regular traders on the N.Y. COMEX will be trying to front run that short covering, sort of like switching on an afterburner. Then, when that is going on the other shorts might be trying to take profits, buying back their shorts all at the same time with the algo traders trying to jump on it for the ride. "It could be an explosive move if that happens," Gene said. "We could even see an offer vacuum for a little while, which we have not seen since January," he added. An offer vacuum is the opposite of a bid vacuum. They occur when many traders suddenly pull all their offers because the price is going vertical. Gene isn't predicting it as such, but he says it is definitely something to keep an eye out for and silver is not that far under where the fireworks ought to start, currently at about $28. All I can say is … it's about time for a silver reversal, isn't it? Colette Chapman for Got Gold Report |
| The Implication of Currency Dilution Posted: 30 Jul 2012 10:12 AM PDT http://silvergoldbull.com/blog/analysis-implication-of-currency-dilution/ In our daily lives, we learn that there are many immutable principles of cause-and-effect. Drop an object from your hand and it will fall down, not up. Throw a rock at a pane of glass and it will break. Put an ice cube in the sun and it will melt. So too it is with the cause-and-effect known as dilution. Whether we are an adult buying watered-down booze from a bar, or a child buying a watered-down beverage from a lemonade stand; we immediately comprehend that diluting the product has reduced its value – and thus we refuse to pay the same price for it. Similarly, should a jeweler attempt to tell us that (less pure) 10-karat gold is worth as much as (more pure) 24-karat gold, we would simply scoff at such nonsense and walk away. And as I have noted several times in prior commentaries, even the dim-bulbs in the mainstream media can grasp the concept that if a company prints up a lot of shares (and thus dilutes shareholder equity) that the value of its shares must decline. Indeed, in the entire known universe we have only one example of an item which (supposedly) does not automatically decline in value as it is diluted: the bankers' fiat paper currencies. In fact, we have no shortage of clueless scribes claiming that it is possible for these currencies to actually increase in value as they are being diluted. Search the phrase "U.S. dollar rises in value", and you would acquire repetitive strain disorder before you finished reading all the idiocy on that subject. Regular readers know that I have found this logical absurdity to be positively maddening. Suggesting that (any of) our incessantly-diluted paper currencies could rise in value is just as insane as suggesting that I could drop something and it would "fall" upward…at least at first glance. Then it suddenly occurred to me that there was one (and only one) theoretically possible scenario where a good which is being diluted could rise in value: if it was already worthless before the dilution even began. Obviously something which is "worthless" cannot possibly decline in value, as a matter of definition. So even though there is no reason to expect a worthless item to increase in value (as it's being diluted), since it's impossible to decline in value then it becomes at least quasi-rational to suggest that it might appreciate in value (somehow). There is no other possible exception to the principle of dilution: the only good which would not automatically decline in value as it is being diluted is a good which was already worthless before the dilution commenced. This brings us back to the bankers' paper currencies. Who is it that insisted that these paper currencies ever had any value to begin with? The bankers. Who is it that leads the media choir in talking about these paper currencies "rising in value"? The bankers. When it comes to the near-comatose drones in the mainstream media (and their "experts"), it's not too difficult to believe that they simply don't understand that these paper currencies were worthless to begin with. However, when it comes to the bankers who created these paper currencies, it becomes much more difficult to believe that these charlatans haven't known all along that they have been peddling worthless paper to the masses (as fuel for their infinite acts of fraud). |
| EUR/USD: A Possible Trend Reversal Posted: 30 Jul 2012 10:06 AM PDT By Emil Mark: The euro got its verbal support during last week's speech of Mr. Draghi, President of the European Central Bank, at the Global Investment Conference in London. He said "ECB is ready to do whatever it takes to preserve the euro,", adding: "believe me, it will be enough." Those remarks sparkled a rally of the euro probably covering a lot of short positions along the way. As a result the euro appreciated against the U.S. dollar with more than 1.5% to finish the week at 1.23. The big question now is how sustainable this appreciation is. Is there a new trend forming? When evaluating currencies we should not forget that their values are measured relative to each other. This means that all other things equal, the currency whose economy has less perceived problems should cost more in terms of the other currency. Until now the euro had enough problems on its Complete Story » |
| Gold Sentiment Increasingly Positive - Market Looks for Signal This Week Posted: 30 Jul 2012 09:27 AM PDT gold.ie |
| Posted: 30 Jul 2012 09:03 AM PDT
from numismaster.com: Gold is down almost $300 an ounce from a year ago, and silver's value has dropped more than a third. So that means folks are rushing to buy low so they can sell high, right? "Most people are sitting pat," said Lee Crane of L&C Coins. "They don't see a distinctive trend going up and down." With gold hovering between $1,525 and $1,625 an ounce, they're not sure what to do, he said, and are asking that question, should I buy or should I sell? "People who have to sell to pay a bill or buy a house, they are selling," Crane said. "People with a strong financial position are holding on." They're waiting for a trend, he said. "It's ho hum now, but that's what makes the exciting times exciting," Crane said. "You're sitting around, and a move starts, and people get all excited." There were a lot of purchases taking place when the great appreciation was going on last year, he said, so those people are a bit cautious now. And maybe they spent all of the money they had to invest in gold and silver, Crane said. "If you see gold move into the $1,700 range, I think you would see an increase in buying," Crane said. Ross Baldwin, president of National Coin Broker, said those who are buying gold are transitioning to numismatic coins like generic common date $20 gold pieces. "They get the bullion value and numismatic value and it doesn't expose them to the raw gold market," Baldwin said. "If gold goes down $100 an ounce, the value of their coin won't go down $100, and when the value of gold goes up, it goes up twofold." With silver at around $27 an ounce people are seeing it as a good buy considering it was near $50 an ounce a little over a year ago, Baldwin said. But instead of buying pure bullion coins, Baldwin said he sees folks buying Morgan and Peace dollars and other 90 percent silver coins so they don't have to pay the high premiums. Baldwin is bullish on silver. Keep on reading @ numismaster.com |
| Two Keys For The Next Gold Breakout Posted: 30 Jul 2012 08:59 AM PDT
from forexpros.com: Gold's historic run-up from $250 to nearly $2,000 an ounce in the last 10 years has underlined the long-term value and intrinsic worth of a key asset. It has also provided a fabulous, once-in-a-lifetime investment opportunity for many individuals, not to mention a long-term momentum trade for both retail and institutional investors. Gold has also provided investors with an important lesson in the past year: despite its distinctive safe haven value, the metal definitely has a speculative element which is critical to its price appreciation. In this regard at least, gold is no different than other assets. Gold's speculative element was nowhere more evident than in the series of margin requirement hikes last summer, which saw gold fall from an all-time high of just under $2,000 an ounce to a low of around $1,550. From the bottom of the 2008 credit crisis, gold benefited from a combination of bullish factors. At the bottom of the crisis in late 2008 – and well before the smoke finally cleared from the financial market in March 2009 – gold got the benefit of relative strength versus the equity market. Hedge funds and institutional traders are constantly on the lookout for markets and investment opportunities that are outperforming the general equities market. Compared to the benchmark S&P 500, gold was a shining example of relative strength and it quickly caught the eye of big money traders in the latter part of 2008. Gold was really the ultimate relative strength play in the early stages of the 2009-2011 global recovery. Keep on reading @ forexpros.com |
| What’s your weight worth in silver? Posted: 30 Jul 2012 08:56 AM PDT |
| Recent Moves in Gold and Silver: A Rally or a Pullback? Posted: 30 Jul 2012 08:46 AM PDT
from minyanville.com: Gold rose sharply Wednesday after a European Central Bank council member suggested the possibility that Europe's rescue fund could get a banking license, allowing it to tap cheap ECB funding. The rally was also supported by reports that the Federal Reserve is getting ready to implement another round of stimulus. The Wall Street Journal reported Wednesday that the Fed is growing uneasy over the sluggishness of the US economy and the unemployment rate. The gold market showed some strength this week, but is this really a beginning of a new rally? Let's have a look at gold's chart right away and try to figure out whether these recent moves have much meaning for the upcoming weeks. (Charts courtesy of http://stockcharts.com.) In the very long-term chart of the yellow metal, the situation is unchanged in spite of the rally this week. The trend still remains down from here and with RSI levels now close to 50, gold is no longer oversold. When it comes to gold's short-term performance, we need to mention that the short-term resistance line has not yet been crossed and it is quite hard to tell whether this will happen based on gold price alone. Such an event would influence the short-term outlook significantly – a breakout would likely be followed by a significant rally, but since it was not yet seen, the implications are not bullish. Keep on reading @ minyanville.com |
| Gold bounces back on wedding season demand; up by Rs 65 Posted: 30 Jul 2012 08:43 AM PDT
from zeenews.india.com: New Delhi: Gold Monday recovered by Rs 65 to Rs 30,125 per 10 grams on retailers buying for the wedding season amid a sharp rally in global markets. However, silver lacked necessary buying support and fell for the fourth day shedding Rs 50 to Rs 52,900 per kg. The trading sentiment in gold improved as it recorded the highest jump in four weeks in global markets, climbing above USD 1,600 an ounce, after Europe's leaders took steps to resolve the debt crisis, boosting the outlook for global economic growth. In New York, gold climbed 3.5 percent to USD 1,604.20 an ounce, the biggest gain since June 1. In addition, some buying for the ongoing marriage season further fuelled the uptrend in gold. On the domestic front, gold of 99.9 and 99.5 percent purity recovered by Rs 65 each to Rs 30,125 and Rs 29,925 per 10 grams, respectively. The metal had lost Rs 360 yesterday. However, sovereigns held steady at Rs 24,400 per piece of eight grams. On the other hand, silver ready remained weak for the fourth straight day and declined by Rs 50 to Rs 52,900 per kg and weekly-based delivery by Rs 75 to Rs 52,050 per kg. The white metal had lost Rs 1,450 in last three sessions. Meanwhile, silver coins remained steady at Rs 59,000 for buying and Rs 60,000 for selling of 100 pieces. Keep on reading @ zeenews.india.com |
| United States all set to become biggest supplier of Gold to India Posted: 30 Jul 2012 08:34 AM PDT
from economictimes.indiatimes.com: NEW DELHI: India's lust for gold is legendary. Indian households hold over $950 billion of the yellow metal, revealed a recent research by Macquarie research. India imports most of its requirements: a quarter of all the gold sold globally is imported by us. But in recent times, another country has matched India's hunger for gold. China, the largest producer of the precious metal, became a net importer in 2011, as domestic demand soared. Sometime this year, China is expected to overtake India as the largest gold consumer. China, which is among the top producers of gold globally, has high entry barriers for private miners and also uses its production for building up national reserves. Entry barriers for entrepreneurs are high in Russia as well. South Africa and Australia, both big producers of the yellow metal, are becoming unpopular due to, respectively, high taxation and high production costs. Some European gold reserves, for example the Rosia Montana in Romania, the largest untapped reserves in Europe, are facing problems due to environmental regulations. That begets the question: where will India get its gold from? The US, and other countries in the Americas. North America has always been significant in the global gold stakes. Globally, there have been 99 significant gold discoveries (defined as a deposit containing at least 2 million oz of the metal) during 1997-2011. The Americas hold the greatest share in these discoveries—not surprising given that the Americas have accounted for more than half the industry's discovery-oriented gold exploration spending during the period. Keep on reading @ economictimes.indiatimes.com |
| Vietnam to ban ‘Gold in and Gold out' Posted: 30 Jul 2012 08:29 AM PDT
from bullionstreet.com: HANOI(BullionStreet): In yet another attempt to 'strengthen' it's gold sector, Vietnam central bank is considering to impose a ban on travelers from bringing gold into and out of the country. According to a draft circular from the State Bank of Vietnam, Vietnamese and foreign individuals may be banned from taking gold bullion out of the country when they leave. The ban may also extend to raw gold, such as nuggets and gold dust. However, the circular said it will allow a small amount of jewelry to pass through customs. But if the amount exceeds 300 grams they will be required to inform customs officials and pay tax. Travelers are currently allowed to carry the precious metal as long as they declare their gold holdings to customs. However, people who go abroad for legal permanent residency would be allowed to carry one kilogram of gold if they possess a permit issued by SBV branches in the provinces and cities where they reside. Keep on reading @ bullionstreet.com |
| India Gold reserves unchanged at $25.76 billion Posted: 30 Jul 2012 08:27 AM PDT
from bullionstreet.com: NEW DELHI(BullionStreet): India's gold reserves remained unchanged at $25.76 billion as total foreign exchange reserves grew by $589 million to $287.34 billion for the week ended July 20. In it's latest statement, country's central bank, Reserve Bank of India (RBI) said foreign currency assets, the biggest component of the forex reserves kitty, increased by $565.5 million to $255.10 billion for the week under review. The RBI did not provide any reasons for the growth. It said the assets in US dollar terms included the effect of appreciation or depreciation of non-US currencies such as the pound sterling, euro and yen held in reserve. The country's forex reserves had declined by $872.7 million in the previous week under review. The value of special drawing rights (SDRs) grew by $15.8 million to $4.34 billion during the week ended July 20, while India's reserves with the International Monetary Fund (IMF) rose by $7.7 million to $2.13 billion. Keep on reading @ bullionstreet.com |
| PRECIOUS-Gold slips below $1,620/oz as euro retreats Posted: 30 Jul 2012 08:25 AM PDT
from af.reuters.com: * Euro surrenders some of last week's gains, hurting gold * Stock markets rebound, Bunds drop ahead of ECB meeting * Largest gold ETF reports 5th consecutive weekly outflow By Jan Harvey LONDON, July 30 (Reuters) – Gold eased below $1,620 an ounce on Monday, taking its cue from a weaker euro ahead of key central bank meetings this week, as investors weighed up the prospect of the European Central Bank taking fresh measures to combat the euro zone debt crisis. The metal climbed 2.5 percent last week, its best weekly performance in eight, after ECB President Mario Draghi pledged to do whatever necessary to prop up the euro. But caution ahead of the ECB's meeting on Thursday, which will be watched for signs that Draghi's pledge will be backed with action, has since pulled the metal off its highs, though it remains supported just below $1,620 an ounce. Spot gold was down 0.3 percent at $1,618.09 an ounce at 1114 GMT, while U.S. gold futures for August delivery were down 40 cents an ounce at $1,617.60. Spot prices are on track for a 1.3 percent gain in July. Keep on reading @ af.reuters.com |
| Gold prices steady; traders look for direction Posted: 30 Jul 2012 08:21 AM PDT from in.reuters.com: (Reuters) – Indian gold prices stayed steady for the fourth straight session on Monday, consolidating near the highest level in more than four weeks, and traders awaited a clear direction in prices even as weak monsoon rains threatened to cut demand from rural areas. * The most-active gold for August delivery on the Multi Commodity Exchange was 0.01 percent lower at 29,792 rupees per 10 grams, after trading flat for three sessions in a row. * The contract traded near the highest level since June 28. * Imports of gold into India, the world's biggest consumer in 2011, have already fallen more than 50 percent so far. * "Demand is slow because prices are above 30,000 rupees," said Ketan Shroff, director with Pushpak Bullion, a wholesaler in Mumbai. Keep on reading @ in.reuters.com |
| India’s gold lust might get a boost from Uncle Sam Posted: 30 Jul 2012 08:19 AM PDT
from blogs.economictimes.indiatimes.com: India's lust for gold is legendary. Indian households hold over $950 billion worth of the yellow metal, revealed a recent research by Macquarie research. India imports most of its gold requirements: a quarter all gold sold globally is imported by India. But in recent times, another country has matched India's hunger for gold. China, the largest producer of gold, became a net importer of the yellow metal in 2011, as domestic demand soared. Sometime this year, China is expected to overtake India as the largest gold consumer in the world. And China, which is among the top producers of gold globally, has both high entry barriers for private miners and uses its production for building up national reserves. Entry barriers for entrepreneurs are high in Russia as well. South Africa and Australia, both big gold producers, are becoming unpopular due to, respectively, high taxation and high production costs. Some European gold reserves, for example, the Rosia Montana reserves in Romania, the largest untapped reserves in Europe, are facing problem related to environmental regulation. That leaves one question: where will India get its gold from? The United States, and other countries in the Americas. North America has always been significant in the global gold stakes. Globally, there have been 99 significant gold discoveries (defined as a deposit containing at least 2 million oz of gold) in the 1997-2011 period. The Americas hold the greatest share of gold in these discoveries—not surprising given that the Americas have accounted for more than half the industry's discovery-oriented gold exploration spending during the period. Keep on reading @ blogs.economictimes.indiatimes.com |
| S&T: Gold, Silver, China, Apple, S&P & More Posted: 30 Jul 2012 08:15 AM PDT |
| Guest Post: “Future Silver Supply More At Risk Than Gold” Posted: 30 Jul 2012 08:15 AM PDT
from tfmetalsreport.com: Our friend and longtime Turdite, SRSrocco, has written another excellent research piece. It's lengthy, detailed and terrific so sit down, buckle in and enjoy. Future Silver Supply More At Risk Than Gold by SRSrocco The focus of the markets and the alternative media is firmly placed on the continued disintegration of the world financial system. Many believe that the collapse of the fiat monetary system along with the global banking cartel is the worst possible outcome. However, this may actually turn out to be the good news in a sea of bad news that is lurking around the corner. As the world's attention is currently directed at its massive paper-debt dilemma, a physical problem looms larger each passing day. This is what I call, the brontosaurus in the living room. The information provided in this article may help connect the dots to the reader who has been grossly misinformed by the highly specialized analysts in the various industries and media. In the future as tens of trillions of dollars of debt masqueraded as wealth implodes, there will be a stampede into the best safe havens available — the precious metals. Many believe gold will play the major roll in this upcoming transfer of wealth. While this may be true, silver could actually turn out to be the better choice when we consider the factors presented in this article. The inspiration to write this article came while I visited several historic mining towns in Utah. One of these mines was the Horn Silver Mine located in Frisco, Utah. After spending most of the day looking at the remains of the town, its old kilns and the abandoned mine, I began to wonder how much silver was produced here and what were the size of its ore grades. The Horn Silver Mine in Frisco was discovered in 1875 and by 1881 it was producing over one million ounces of silver annually. However, in a rush to get the silver out of the ground and not taking the time to brace the tunnels correctly, the mine collapsed in Feb, 1885. The one fortunate part about the mine collapse is that it took place between shifts so no one was hurt. The mine started to produce again at a decent rate in 1887, but it never regained the level it had achieved prior to the mine collapse. In the 30+ years the mine was in operation, it produced over 14 million ounces of silver. This may not seem like a great deal today, but in its heyday it was the largest silver mine in Utah. In its initial years of operation, the Horn Silver Mine produced silver at a staggering 1,608 g/t (grams per ton) or 51.7 oz/t (ounces per ton). We must remember that during this time, the United States was calculating these ore grades in short tons or 2,000 pounds. Today the predominant industry standard is measured in metric tonnes or 2,205 pounds. Thus, these earlier figures were approximately 10% lower than the comparable ore grades today. If we adjust the difference to fit present standards, it would be 1,769 g/t or 56.8 oz/t . To understand just how much ore grades have changed in the silver mining industry in the past 100+ years, I decided to compare the Horn Silver Mine to a present day silver mining company. I choose First Majestic Silver Corp because it is a smaller producer and it has relatively decent silver ore grades (more about this later). Keep on reading @ tfmetalsreport.com |
| Posted: 30 Jul 2012 08:13 AM PDT Austerity hits the Olympics, Romney ready for war against Iran, and deflationary pressures mount. This and more covered in this installment of Collapse Confirmation News. from fabian4liberty: ~TVR |
| Posted: 30 Jul 2012 08:13 AM PDT
from thedailybell.com: The Daily Bell is pleased to present this exlusive interview with Jeff Berwick (left). Introduction: Mr. Berwick is an anarchist, libertarian and freedom fighter against mankind's two biggest enemies, the state and the central banks. Jeff is chief editor of The Dollar Vigilante, an anarcho-capitalist, Austrian economics based newsletter focused on surviving The End Of The Monetary System As We Know It (TEOTMSAWKI) and CEO of TDV Media and Services, which provides internationalization information and solutions for yourself and your wealth. He is also host of Anarchast, an anarchist video podcast, and is a contributing editor at many of the world's largest financial and precious metals related websites. In 1994, Jeff Berwick founded Canada's largest financial website, Stockhouse.com. Daily Bell: Great to interview you again, Jeff. When we talked with you this past October 2011, the world was a crazy place but it seems to be getting crazier. As an experienced observer of the financial scene, can you give us your take on the biggest problem the Western world is currently facing? Is it economics? Militarism? Growing authoritarianism? Or all three? Jeff Berwick: Where to begin? When I first began discussing The Dollar Vigilante in 2008 I remember thinking to myself, "How will I find enough stuff to write about?" Now, in 2012, I can't possibly even comment on all the events happening daily. As one example of the escalation of what I see as the ongoing symptoms of The End Of The Monetary System As We Know It (TEOTMSAWKI), since we last spoke less than a year ago Barack Obomber has declared the Bill of Rights null and void. With his signing of the National Defense Authorization Act on New Year's Eve, he's also declared that he can kill any American, or anyone in the world, just by adding them to his kill list. Daily Bell: Death by drone … Keep on reading @ thedailybell.com |
| Hathaway – We Are About To See $100+ Up Days In Gold Posted: 30 Jul 2012 08:12 AM PDT
from kingworldnews.com: Today four-decade veteran John Hathaway shocked King World News by predicting that we are about to start seeing $100+ up-days in gold. The prolific manager of the Tocqueville Gold Fund also stated that the Fed is close to acting and they are most likely going to do something, "… on a very big scale." He warned, "… there is nothing worse than having an activist Fed which is ineffectual. That would just destroy confidence." Here is what Hathaway had to say: "Hilsenranth, who everybody knows by now is basically a mouthpiece for the Fed, he went quite extensively into what the Fed is thinking about doing, including a round of quantitative easing, putting nominal interest rates to negative levels, and possibly cutting the interest rate on free reserves." Keep on reading @ kingworldnews.com |
| Silver Update: The Last Bubble 7.29.12 Posted: 30 Jul 2012 08:11 AM PDT |
| Remedies for ‘Stuck in mud' U.S. economy will drive gold much higher Posted: 30 Jul 2012 08:09 AM PDT
from mineweb.com: Disappointing news for the U.S. economy is good news for gold investors. Recent economic data show an economy that is "stuck in the mud," to quote Fed Chairman Ben Bernanke. And, in response to signs of a slowing economy, the U.S. central bank is, sooner or later, likely to embark on another round of monetary easing. In fact, the recent gold-price rally that took the yellow metal back over the psychologically important $1,600 an ounce level reflects rising market expectations that the Fed will announce further economic stimulus following the July 31-August 1 Federal Open Market Committee policy-setting meeting. Aggressive action by the Fed – in the form of another round of quantitative easing (QE3) or a reduction in the interest rate paid to banks on reserves deposited with the central bank – could give gold another quick boost and trigger the resumption of a durable bull-market advance. On the other hand, if the Fed fails to adopt aggressive monetary stimulus at next week's FOMC meeting gold could quickly sink back under $1,600 an ounce. This is a less-likely outcome . . . but it would offer investors another opportunity to buy at lower prices in advance of the next big move up. In any event, it is fairly likely that the economy will remain stuck in the mud – or, worse yet, slump into an outright recession. With Congress suffering from arterial sclerosis, the economy seems likely to lurch towards a "fiscal cliff" with tax increases and spending cuts leaving the Fed as the last line of defense against a catastrophic economic collapse. Keep on reading @ mineweb.com |
| Austerity At The Olympics: Each “Gold” Medal Contains 1.34% Gold Posted: 30 Jul 2012 08:06 AM PDT
from zerohedge.com: As every Olympic athlete knows, size matters. The London 2012 medals are the largest ever in terms of both weight and diameter – almost double the medals from Beijing. However, just as equally well-known is that quality beats quantity and that is where the current global austerity, coin-clipping, devaluation-fest begins. The 2012 gold is 92.5 percent silver, 6.16 copper and… 1.34 percent gold, with IOC rules specifying that it must contain 550 grams of high-quality silver and a whopping 6 grams of gold. The resulting medallion is worth about $500. For the silver medal, the gold is replaced with more copper, for a $260 bill of materials. The bronze medal is 97 percent copper, 2.5 percent zinc and 0.5 percent tin. Valued at about $3, you might be able to trade one for a bag of chips in Olympic park if you skip the fish. Though Olympic gold is no longer 100 percent gold, a medal can still fetch big money. In 2010, a gold medal worn by Mark Wells, a member of the 1980 "Miracle on Ice" U.S. men's hockey team, was auctioned off for $310,700. Several years before that, Wells had sold his medal to cover medical expenses. Just before the auction, the medal was valued at $100,000 but it earned three times that amount. Heritage Auctions of Dallas identified the 2010 buyer as a rancher from the western U.S. The question remains – with the minimum 103 medals expected to be won by US athletes, will Bernanke be forced to reduce the size of NEW QE as 'all that precious metal is horded and repatriated back to the USA'? Keep on reading @ zerohedge.com |
| Myths and Facts About the Gold Standard Posted: 30 Jul 2012 08:04 AM PDT
from truthingold.com: While many people believe the United States should adopt a gold standard to guard against inflation or deflation, and stabilize the economy, there are several reasons why this reform would not work. However, there is a modern adaptation of the gold standard that could achieve a stable price level and avoid the many disruptions brought upon the economy by monetary instability. Let's start by clearing up some common misconceptions. Congressman Ron Paul's attraction to gold, and Federal Reserve Chairman Ben Bernanke's biggest criticism, is that a gold standard implies an end to monetary policy and the Federal Reserve. It does not. Under a gold standard, the U.S. Treasury could exchange dollars for gold at a price of, say, $1,000 per ounce. In practice, that means banks would freely exchange their dollar accounts at the Fed for electronic claims to gold. Nevertheless, the Fed could still buy government debt or other securities in exchange for newly created reserves, lend its reserves to banks, and set interest rates on its loans to banks. A gold standard would not stop the Fed from being the lender of last resort, bank regulator and financial crisis firehouse. This isn't theory. It's history. The Bank of England operated an active monetary policy under a gold standard for two and a half centuries. And the U.S. Federal Reserve was founded under the gold standard in 1914. Moreover, the history of the gold standard is not just happy centuries of price-level stability. It is also a long history of crises, devaluations, suspensions of convertibility, and defaults on sovereign debt. Debauching the currency—the great bugaboo of gold-standard champions—will always remain a temptation: If the government promises $1,000 per ounce and a recession comes along, it can say "we need to stimulate. Now it's $1,100 per ounce." The success of a gold standard in achieving stable prices depends heavily on its rules and commitments against devaluation—rules honored in the past, until they weren't. Keep on reading @ truthingold.com |
| Silver Price Recovers on Improved Market Sentiment Posted: 30 Jul 2012 08:00 AM PDT
from silverinvestingnews.com: After resisting outside market pressures and squeezing out a nickel gain on last Friday, silver started this week under pressure and prices fell. By midweek, market sentiment had improved and silver prices managed a recovery. This week started with another flare up of concerns about the Eurozone crisis. The Greek prime minister said that the nation is experiencing a depression, and a German publication reported that the International Monetary Fund may stop providing aid to Greece. This announcement followed reports that the European Central Bank (ECB) will stop accepting Greek bonds as collateral for funding, at least temporarily. Exacerbating matters were reports that numerous regional governments in Spain will likely require aid. Considering Greece, the markets were plagued by the question: what if Spain also needs a bailout? Spain's borrowing costs have been soaring and warnings that the rates are unsustainable are increasing. On Monday, rates on benchmark 10-year bonds surpassed the dreaded 7 percent rate and rose to 7.45 percent, the highest the nation has seen since the launch of the euro in 1999. Amidst this negative sentiment, silver opened the week lower and finished the first day of trading down $0.27 at $27.06. Still under pressure on Tuesday, silver danced on both sides of $27, but was unable to close above that level. Overnight Wednesday, an improvement in equity markets and a weakening of the dollar paved the way for renewed optimism. Recent weak data, including a Wednesday report showing that new US homes sales declined in June, promoted the belief that easing from the Federal Reserve is likely. The improved sentiment provided support for silver and the metal closed up $0.38 at $27.34. Keep on reading @ silverinvestingnews.com |
| Posted: 30 Jul 2012 07:58 AM PDT
from azizonomics.com: A year ago today I started writing a blog. I've engaged and debated a wild variety of interesting, knowledgeable and cool people who have contributed to the site by commenting and asking questions. I write to discover. I write to expose myself to unseen dimensions of reality. But mostly I write because I like engaging with other people. I am thankful for your continued engagement and continued support, especially those who choose to disagree with me. Today, I present a couple of brief retrospectives. First, my ten most-read posts in the last year: Krugman, Diocletian & Neofeudalism Keep on reading @ azizonomics.com |
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