Gold World News Flash |
- America’s Descent into Poverty
- Major Development in Precious Metals: “The Time to Buy Cheap Will Soon Be Gone”
- Asian Eruption
- Silver Update 8/24/12 Gold Standard
- Sprott – We Are Staring At Chaos & Collapse In Front Of Us
- Doug Casey Predicts Day of Economic Reckoning Is Near
- Is a State Run Gold Standard Really the Answer?
- Youri Carma: Why Silver Will Rise Even More Than Gold
- In The News Today
- $20 Trillion vs Gold Standard
- Gold Stocks Got You Down? This History Lesson Will Pick You Up
- By the Numbers for the Week Ending August 24
- Gold $1669.80 up 20 cents - Silver $30.61 up 16 cents Silver Charges Ahead, Gold Rebuffs Cartel Raid
- Guest Post: Trading on Yesterday's News – What Does the Stock Market Really 'Know'?
- Banks Manipulating Gold: People vs Banks
- On the Verge of a Very Profound Systemic Global Meltdown
- The Gold Price Sparkled this Week Up $53.50 Closing at $1,669.80 the Next Rally has Begun
- Guest Post: Why You Always Want Physical Everything
- Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 3% and 9% on the Week
- Gold Daily and Silver Weekly Charts - Quiet Day of Consolidation
- Gold and Silver Disaggregated COT Report (DCOT) for August 24
- Too Much of a Good Thing, Continued…
- Gold Triangle Breakout Objectives at 1685, 1720
- US Republican platform said to eye return to gold standard
- Future Money Trends interviews GATA Chairman Murphy
- COT Gold, Silver and US Dollar Index Report - August 24, 2012
- US Dollar Intermediate Term Chart
- Eric King's Blockbuster Interview with Silver Vigilante No. 1: Eric Sprott
- Gold and the $600 billion question
| America’s Descent into Poverty Posted: 24 Aug 2012 11:30 PM PDT by Paul Craig Roberts, Paul Craig Roberts:
The United States has collapsed economically, socially, politically, legally, constitutionally, and environmentally. The country that exists today is not even a shell of the country into which I was born. In this article I will deal with America's economic collapse. In subsequent articles, i will deal with other aspects of American collapse. Economically, America has descended into poverty. As Peter Edelman says, "Low-wage work is pandemic." Today in "freedom and democracy" America, "the world's only superpower," one fourth of the work force is employed in jobs that pay less than $22,000, the poverty line for a family of four. Some of these lowly-paid persons are young college graduates, burdened by education loans, who share housing with three or four others in the same desperate situation. Other of these persons are single parents only one medical problem or lost job away from homelessness. Others might be Ph.D.s teaching at universities as adjunct professors for $10,000 per year or less. Education is still touted as the way out of poverty, but increasingly is a path into poverty or into enlistments into the military services. Read More @ Paul Craig Roberts.com
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| Major Development in Precious Metals: “The Time to Buy Cheap Will Soon Be Gone” Posted: 24 Aug 2012 09:30 PM PDT by Mac Slavo, SHTFPlan: With the Congressional Budget Office reporting that the United States will soon fall off the fiscal cliff unless the government takes immediate action, the Federal Reserve weighing another round of heavy-hitting monetary expansion, and the Republican Party now apparently jumping on board the gold standard train, the stars for precious metals seem to be in alignment. So says Peter Schiff, CEO of Europacific Precious Metals. Having been ahead of gold's massive upward move years before the bursting of the real estate bubble and crash of 2008, Schiff says there has been a "major development in precious metals," and if you don't have any gold or silver yet, this may be your last chance before they head to new record highs.
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| Posted: 24 Aug 2012 09:10 PM PDT by Andrew Hoffman, MilesFranklin.com:
Given that no more than 30% of PHYSICAL gold demand emanates from the Western Hemisphere – including just FIVE PERCENT from the U.S., and EIGHT PERCENT from Europe – it is unconscionable that CRIMINAL PAPER exchanges in London and New York "set the price" on a daily basis. As you can see by the chart below from Dmitri Speck – the single most condemning "manipulation proof" available, gold is nearly ALWAYS hit after the London PM Fix at 10:00 AM EST, and net net, is DOWN in New York trading hours over the course of a 12-year bull market, in which it has appreciated sevenfold…
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| Silver Update 8/24/12 Gold Standard Posted: 24 Aug 2012 09:04 PM PDT |
| Sprott – We Are Staring At Chaos & Collapse In Front Of Us Posted: 24 Aug 2012 08:30 PM PDT from KingWorldNews:
Today billionaire Eric Sprott spoke with King World News about one of his frightening predictions, "I always postulated that the financial system would go bankrupt, and it has, save for one thing, it got bailed out." Sprott, who is Chairman of Sprott Asset Management, also added, "But I don't think the central planners have a winning hand here. They're not going to win." Sprott then warned, "God knows when we get there (to the end of the current system) what we are all staring at." But first, here is what he had to say about the last decade: "When I reflect back over the decade, I think my God, I can almost come up with 2,500 tons of net change in physical demand, in a 4,000 ton market on the supply side, which hasn't changed in that 12 years, that was in balance 12 years ago. How do these ETF's get to buy gold? How do these central banks go from sellers to buyers? How does China come in and buy 500 tons? How did all of this happen with no increase in the supply of gold? It's getting more extreme by the day. Sprott continues @ KingWorldNews.com
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| Doug Casey Predicts Day of Economic Reckoning Is Near Posted: 24 Aug 2012 08:20 PM PDT The Gold Report: There will be a Casey Research Summit on "Navigating the Politicized Economy" in Carlsbad, Calif., in September. The thesis behind the summit is that governments have made a Faustian bargain, a pact with the devil, that saves the empire with overspending, but drives it to the brink of collapse by creating fiat currencies. Doug, where in that story is the economy currently? Doug Casey: It's extremely late in the day. Since World War II, and especially since 1971 when the link between the dollar and gold was broken, governments around the world have accepted the Keynesian theory of economics, which boils down to a belief that printing money can stimulate the economy and create prosperity. The result has been to create huge amounts of individual and government debt. It's become insupportable. All it has done is purchase a few extra years of artificial prosperity, and we're heading deeper into a very real depression as a result. [INDENT]"We have been consuming more th...
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| Is a State Run Gold Standard Really the Answer? Posted: 24 Aug 2012 08:00 PM PDT from Staff Report, The Daily Bell:
Republicans eye return to fixed value for dollar … The Republican Party is set to call for the creation of a commission to look at possible ways to set a fixed value for the dollar, 40 years after President Richard Nixon ended its link to gold. A draft of the party platform to be adopted at the Republican National Convention next week in Tampa, Florida, ties the plan to "cleaning up the wreckage" of President Barack Obama's policies. The proposal recalls a commission created in 1981 by President Ronald Reagan to consider restoring the convertibility of the dollar into metal. The commission advised against such a move in the end. "Now, three decades later, as we face the task of cleaning up the wreckage of the current administration's policies, we propose a similar commission to investigate possible ways to set a fixed value for the dollar," the platform would say, according to draft language provided to Reuters by a Republican National Committee official who declined to be named. − Reuters Dominant Social Theme: Gold is good. And if Leviathan is setting the price so much the better … Free-Market Analysis: The problem with a state run gold standard is that the state is running it! Facetiousness aside, this article gives us the opportunity once again to analyze what a gold standard really is and how a free-market one might work. It is probably safe to say that whatever the GOP comes up with will be less free and thus less adequate than what is called for. Worse, in our humble opinion, whenever such issues arise these days, the dissemblers come out in force to attack the world's only apparently honest politician, US Congressman Ron Paul, for working with Lewis Lehrman.
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| Youri Carma: Why Silver Will Rise Even More Than Gold Posted: 24 Aug 2012 07:56 PM PDT Silver-Gold Ratio Of More Than 55:1 Is Much Too High! 2.5:1 In Ancient Times. Excerpt from: Get Ready for the Silver Breakout by Andy Hecht (Sovereign-Investor) The Silver-Gold Ratio is High The silver-gold ratio reflects the relationship of the value … Continue reading
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| Posted: 24 Aug 2012 06:32 PM PDT Jim Sinclair's Commentary Sitting pretty, just like gold.
Jim Sinclair's Commentary Coming to your neighborhood soon. Jim Sinclair's Commentary Here is the latest from John Williams' www.ShadowStats.com - Real Durable Goods Orders and New- and Existing-Home Sales Stagnate Below Pre-2001 Recession Levels No. 466: July Durable Goods Orders and Home Continue reading In The News Today
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| Posted: 24 Aug 2012 06:30 PM PDT |
| Gold Stocks Got You Down? This History Lesson Will Pick You Up Posted: 24 Aug 2012 06:21 PM PDT By Kevin Brekke, Casey Research If you own any, it might seem that gold stocks have been underwater for a long time, and that the bull market is over. Yet, the chart below tells me that likely as not, those with the courage to buy when others panic will be the big winners in gold. [...]
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| By the Numbers for the Week Ending August 24 Posted: 24 Aug 2012 06:15 PM PDT This week's closing table is just below.
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| Gold $1669.80 up 20 cents - Silver $30.61 up 16 cents Silver Charges Ahead, Gold Rebuffs Cartel Raid Posted: 24 Aug 2012 06:03 PM PDT August 24 – Gold $1669.80 up 20 cents - Silver $30.61 up 16 centsSilver Charges Ahead, Gold Rebuffs Cartel Raid"You haven't had a rush until you've had a Gold Rush." … GATA's Adrian Douglas GO GATA! Here is a real surprise. Gold sold off in Asia and then began to take off into the early London trading hours … WHEN … "they" showed up yet again. The Gold Cartel traders stopped the gold advance about an hour later than usual and quickly shoved the price back to $1664 in an effort to calm down newfound precious metals excitement. This is no surprise to veteran Café members with the way the HUI acted yesterday. It couldn't get out of its own way with gold and silver on fire to the upside. Over the years we have made a point how The Gold Cartel manipulates the gold/silver shares at times to indicate to allied traders what they have in mind for gold the next day. Is it yet another coincidence gold is called $6 lower this morning after its breakout? Gold and silver have shot up very quickly. It's not some testing of breakout points on the downside that is the issue. It is how, when and why gold trades the way it does … how easy it is to spot The Gold Cartel interfering in the free market process. There ought to be a great deal of buying support for gold above $1650/$1655 and for silver above $30. Physical market buyers know the significance of the breakouts and will be ready and willing to buy any kind of breaks towards those levels … which means the price of both precious metals should not get back there. Pundit commentary about why gold and silver took over remains amusing… Reuters this morning: "Spot gold has risen more than 3 percent this week after minutes of the Federal Reserve's August policy meeting showed the bank is likely to deliver another round of monetary stimulus "fairly soon" unless the U.S. economy improves considerably." Reuters very early this morning: U.S. stocks ended near session lows Thursday after St. Louis Fed President James Bullard dampened expectations for further monetary easing, saying current economic conditions are not weak enough and called the latest meeting minutes that hinted at more easing "stale." The what is good for the goose ought to be good for the gander thing again. How can the same news elicit that sort of contrasting commentary to be taken seriously? It brings me back to my ole line, "PRICE ACTION MAKES MARKET COMMENTARY." The pundits will put out anything to the public to justify what the price of a given market does. If I may … for the last 13 years it has been my take that THE key to understanding the gold and silver markets was to appreciate how bullish the supply/demand situation has been. In that regard the supply/demand statistics put out by the gold/silver world establishment have been WRONG and misleading … probably purposefully so. No need to go back and get into all the details. Suffice it to say the GFMSes and CPMs of the precious metals world have not accounted for the gold and silver supplied into the marketplace to suppress the prices. Therefore, the price potential for gold and silver to go higher and higher has been there all this time, as the supply/demand situation is always in bullish mode. The artificially suppressed prices of these two precious metals always encourage more demand than would be the case if they were allowed to be traded freely. This is why GATA has been right about what the price of gold would do 12 years in a row, while those establishment types have often been wrong. Even now Kitco's Jon "The Nitwit" Nadler and Jeff Christian of the CPM Group are BEARISH, even if allowing for a modest rally, one they say won't last. So … IMO that is the key to the gold and silver markets. It is not what the dollar does, nor whether there is more QE. Of course, anything, like QE, which stimulates more demand, is BULLISH. But, it is not critical for gold and silver to take off. That is how bullish the supply/demand situation really is … and this is WHY gold and silver can do what they did yesterday, while the stock market sold off, on the very same news. NICE… Silver is acting like a champ. After falling to $30.34 on the Comex opening, and lower than that prior to that opening, it has steadily moved higher, making one high after another, even with gold down on the day. The open interest numbers were just released and traders seemed to like them, as gold popped to go positive. The gold open interest only rose 5384 contracts to 410,679, which is a pittance considering the move we had yesterday. This means there is PLENTY of room for new spec longs to pour in here without even coming close to having them be over extended. The silver open interest went to yet another new HIGH for the move, up 3627 contracts to 129,496. This is extremely bullish as the specs are jumping onboard the breakout above $30. Perhaps it is also more of the smaller commercials adding to their positions to take on JPM and their massive short position. So, who is selling? JPM again? This is a quandary for me in that they are in trouble in the first place with their silver short position. What are they doing? Here's the deal the way I see it… You will recall in early July that our Switzerland source said that both gold and silver would breakout in August, and then make a run to all-time highs. At the time he also said that JP Morgan has a big problem with their silver short position, and that it had something to do with JPM "whale trade loss" and with the silver position they took over from Bear Stearns years ago. And, naturally, it has something to do with their constant manipulation of the price of silver. This "problem" ought to surface at some point, so why are they still at it in terms of selling? James Mc hit it on the head yesterday, and that the real problem is not whether the price of silver goes berserk (unless it means a failure to deliver problem to longs … that would be a MEGA problem for numerous reasons), but how it might affect the price of gold … which, in turn, could have a catastrophic effect on JP Morgan's larger than life derivatives book. An explosion in the price of gold could set off an adverse chain reaction in that book (especially STAY TUNED! Oh, for crying out loud, gold just fell $8 and silver dropped 20 cents on this, while the DOW rallied quite a bit on this… Bernanke Letter Defends Fed Actions Federal Reserve Chairman Ben Bernanke, in a letter responding to questions posed by U.S. Rep. Darrell Issa (R., Calif.), chairman of the House oversight committee, defended actions the Fed has taken to support the economy and said there is room for the Fed to do more… -END- As I was saying earlier, The Gold Cartel is so easy to spot and so predictable. Time and time again of late we have noted how gold is sold on Bernanke/Fed pronouncements. It happened yet again. The good news is gold came all the way back to make a slight new high for the day and silver recovered what it had lost.
Note how gold was pushed back at the exact time it was stopped yesterday… The AM Fix was $1666.50 and the PM Fix came in at $1667. The Commitment of Traders Report Silver *The large specs increased their long positions by 3,329 contracts and reduced their shorts by 2,284 contracts. *The commercials reduced their longs by 4,651 contracts and increased their shorts by 4,424 contracts. *The small specs increased their longs by 2,676 contracts and reduced shorts by 786 contracts. JP Morgan and its Gold Cartel allies were going all out to prevent silver from breaking through $29 and then $30, but have failed so far. The specs have the upper hand for the time being. Should silver be able to lurch through $34, we could be looking at a commercial signal failure. Gold *The large specs increased their longs by 9,345 contracts and reduced their shorts by 7,035 contracts. *The commercials decreased their long positions by 9,515 contracts and increased their shorts by 17,767 contacts. *The small specs increased their longs by a huge 9,795 contracts and reduced their shorts by 1,107 contracts. As in silver, The Gold Cartel went all out to prevent gold from taking out $1630 and then $1650. So far they too have failed. Of note is that, unlike in silver, the gold open interest only began to take off the past few days. It was very low when that change of futures ownership was taking place. Because the overall open interest remains so low in gold, the big spec long increase should not be construed bearishly, in my book anyway. The weekly precious metals charts are beauties… Weekly silver Weekly gold Gold and silver have come a long way in a short period of time. Today's comebacks after early pressure were reassuring. As mentioned before the breakouts, the bases that gold and silver have formed over the past many months are extremely powerful and can support moves to much higher prices. It appears the smart money has moved in and is moving in further … while the general public yawns, as demonstrated by the comatose action in the shares. While aggravating if you are a share owner for the time being, it is very bullish! NOTE: Silver made a made a new high for the day in Access Market trading and is last at $30.82! AND ALL THIS IS HAPPENING BEFORE THE JP MORGAN SILVER SCANDAL GOES MAINSTREAM!!
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| Guest Post: Trading on Yesterday's News – What Does the Stock Market Really 'Know'? Posted: 24 Aug 2012 05:17 PM PDT Submitted by Pater Tenebrarum of Acting Man blog, The Stock Market as a 'Discounting Mechanism' We have critically examined the question of whether the stock market 'discounts' anything on several previous occasions. The question was for instance raised in the context of what happened in the second half of 2007. Surely by October 2007 it must have been crystal clear even to people with the intellectual capacity of a lamp post and the attention span of a fly that something was greatly amiss in the mortgage credit market. Several sub-prime lenders had gone bankrupt back in February of 2007 already, and two Bear Stearns hedge funds speculating in sub-prime mortgage backed CDOs had lost all of their value by mid July and had to be shut down. Both the ECB and the Fed had begun to take emergency measures to keep the banking system from keeling over in August – the former injected what were then huge amounts (close to €100 billion) into the banking system as a prominent French bank (BNP if memory serves) began to run into funding trouble. The latter enacted a 'surprise' rate cut in August – by October 2007, the effective Federal Funds rate had plummeted from 525 basis points to 475 basis points, by the end of December it stood at a mere 425 basis points. It was impossible not to know what was going on. The Markit ABX.HE indexes that are used to hedge pools of mortgage debt had become a popular gauge for the health of the mortgage market, and the lower rated indexes were clearly in free-fall – this was the stuff mortgage debt insurers like MBI and ABK as well as AIG had written credit default swaps on, in amounts that exceeded their capital and reserves by orders of magnitude – contractual obligations that they could not in a million years have paid out if the guarantees were actually called in. For several quarters AIG's management even professed to be unable to determine the actual size of the associated liabilities! And yet, in October of 2007 stock market traders paid nearly $70/share for shares of Fannie Mae (FNM) and more than $70 for shares in credit insurer Ambac (ABK), to name two of the more egregious examples (both are now bankrupt – ABK's shares trade at slightly below 2 cents at the moment).
The share price of bankrupt credit insurer Ambac. OK, so what did the market 'discount' in mid 2007 and October 2007?- click for better resolution.
What, if anything, were investors thinking when they drove up FNM's share price in 2007?- click for better resolution.
There is empirical evidence that the stock market works much better as a discounting mechanism during secular expansions than during secular contractions, according to data mining work performed by Bob Hoye of Institutional Advisors. Hoye has found that while the stock market begins to decline up to six to twelve months ahead of recessions during secular expansions, it tends to top out and decline almost concurrently with the onset of recessions during secular contractions. We will discuss the theoretical explanation for this phenomenon on another occasion, for the purpose of this article it suffices to be aware that it exists. Is there anything we can immediately glean from the behavior of the stocks of soon-to-be-bankrupt companies on the eve of the GFC? We believe there is.
The Potent Directors Fallacy in ActionWe have written an article on the so-called 'potent directors fallacy' (as far as we are aware credit for coining the term is due to Robert Prechter) in February of 2009, where the principle is explained by inter alia examining the crash of 1929. In brief, the fallacy is the belief held by investors that someone – either the monetary authority, the treasury department, or a consortium of bankers, or nowadays e.g. the government of China – will come to their rescue when the market begins to fall. 'They' won't allow the market to decline!' 'They' won't allow a recession to occur!' 'They can't let the market go down in an election year!' All of these are often heard phrases. Even many prominent economists who should really know better are fervently holding on to this faith in the magical powers of the central planners. In 1998 famous MIT economist Rudi Dornbusch wrote that there 'will never be a recession again', as 'the Fed doesn't want one'. Seriously. In late 2007, Gregory Mankiw of Harvard was gushing in the New York Times about the 'dream team' in charge at the Fed and the treasury, which would surely keep us out of recession 'if only we let them work' (as if 'we' had a choice in the matter!). Mankiw often comes across as a pretty shameless panderer to power, which may have been the inspiration behind this inane remark, but reading his op-ed one did come away with the impression that he actually believed it. Investors appear to be hostage to similar beliefs – and this is also what explains the odd ability of certain shares to levitate in 2007 in the face of the world obviously crumbling around them. ABK's stock did not reflect the almost inescapable conclusion that the company would be bankrupt in short order. It reflected only one thing: the faith of market participants that Ben Bernanke and the merry pranksters at the Fed would save the day.
Trading With the Help of the Rear-View Mirror
This brings us to today's markets. Nowadays, traders are not only not attempting to 'discount' anything, they are investing with their eyes firmly fixed on the rear-view mirror – they effectively trade on yesterday's news. One example is the volatility usually produced by the payrolls report. This report not only describes the past, it is moreover a lagging economic indicator – and yet, traders seemingly regard it as highly relevant to the future. Another example – an even more baffling one in our opinion – is the reaction usually observed on occasion of the delayed release of the Fed minutes. First of all, it should be clear from experience that the Fed is one of the worst economic forecasting agencies on the planet. We have no idea why they even bother. Moreover, it too uses the rear-view mirror when deciding on its policy, which is a well known fact that is stressed in every single FOMC press release regarding monetary policy decisions. The stock phrase is: 'we will adjust policy according to incoming data'. In other words, policy will hinge on what has happened in the past – economic history is the major driver of these decisions. So when yesterday the minutes of the August 1 Fed meeting were released, the rational reaction should have been: 'so what'? It is completely meaningless that a 'majority of participants was leaning toward more easing measures' three weeks ago. It tells us essentially nothing about the timing of the next iteration of 'QE'. What if all of the vaunted economic data prior to the next FOMC meeting come in much stronger than expected? What if the stock market keeps climbing? Will they then still implement 'QE3'? We strongly doubt it. We don't doubt that eventually, there will be more money printing. However, just as the minutes of the prior meetings could not tell us anything about the likely timing, so does this latest release not really tell us anything with regards to that. Today, the markets are once again held aloft by a variation of the 'potent directors fallacy' – Ben and Mario stand ready to print (as does the PBoC of course), therefore nothing bad can happen.
A five minute chart of the SPX in yesterday's trading – the release of the Fed minutes was followed by a big spike upward- click for better resolution.
A five minute chart of GLD during yesterday's session – gold was one of the biggest beneficiaries of the release of the minutes- click for better resolution.
Precious MetalsIn our update on gold, silver and gold stocks on August 13 we wrote that it was more likely for gold to break upward than downward from its recent consolidation – both the fundamental and the sentiment backdrop were strongly indicative of such a resolution. Moreover, the chart of gold in euro terms was clearly bullish. At the time we also remarked that the positive signals were still 'tenuous' and that follow-through was required to confirm our view. We have now indeed received said follow-through, as gold has broken out above lateral resistance in yesterday's trading. That said, we hate it that the release of the Fed minutes was what triggered the move. This sets gold up for the same kind of disappointment for which the stock market has been set up through the intense focus by market participants on more money printing and central bank promises of same. From a tactical perspective, we think one should consider taking short term profits in gold related investments if gold should rise into the eagerly awaited speech by Ben Bernanke at Jackson Hole on August 31, unless upcoming major economic data releases until then are exceptionally weak. The speech may well prove disappointing. Alternatively, disappointment could become palpable after the next ECB and Fed meetings. We may even be cruising toward a 'buy the rumor, sell the fact' scenario (anyone remember the February LTRO?). Strategically we continue to remain bullish on gold. For now, one should probably just let it run, but one would do well to be aware of the potential short term pitfalls that lie dead ahead.
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| Banks Manipulating Gold: People vs Banks Posted: 24 Aug 2012 04:52 PM PDT Banks Manipulating Gold People vs Banks 6 pages ...
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| On the Verge of a Very Profound Systemic Global Meltdown Posted: 24 Aug 2012 04:50 PM PDT On the Verge of a Very Profound Systemic Global Meltdown ..We Need Gold 14 pages...
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| The Gold Price Sparkled this Week Up $53.50 Closing at $1,669.80 the Next Rally has Begun Posted: 24 Aug 2012 03:13 PM PDT Gold Price Close Today : 1,669.80 Gold Price Close 17-Aug : 1,616.30 Change : 53.50 or 3.3% Silver Price Close Today : 30.606 Silver Price Close 17-Aug : 27.995 Change : 2.611 or 9.3% Gold Silver Ratio Today : 54.558 Gold Silver Ratio 17-Aug : 57.735 Change : -3.18 or -5.5% Silver Gold Ratio : 0.01833 Silver Gold Ratio 17-Aug : 0.01732 Change : 0.00101 or 5.8% Dow in Gold Dollars : $ 162.71 Dow in Gold Dollars 17-Aug : $ 169.78 Change : $ (7.08) or -4.2% Dow in Gold Ounces : 7.871 Dow in Gold Ounces 17-Aug : 8.213 Change : -0.34 or -4.2% Dow in Silver Ounces : 429.42 Dow in Silver Ounces 17-Aug : 474.20 Change : -44.77 or -9.4% Dow Industrial : 13,142.95 Dow Industrial 17-Aug : 13,275.20 Change : -132.25 or -1.0% S&P 500 : S&P 500 17-Aug : 1,418.16 Change : -1418.16 or -100.0% US Dollar Index : 81.563 US Dollar Index 17-Aug : 82.610 Change : -1.047 or -1.3% Platinum Price Close Today : 1,553.10 Platinum Price Close 17-Aug : 1,471.80 Change : 81.30 or 5.5% Palladium Price Close Today : 651.55 Palladium Price Close 17-Aug : 604.50 Change : 47.05 or 7.8% Following the seasonal pattern, it seems, the silver and GOLD PRICE have begun a rally in August. Before I follow that up, bear this in mind for everything else I say about metals today. There still exists a possibility that silver and gold will correct sharply after this rally, leaving y'all thinking that the bottom has dropped out. Might even revisit those lows that have held so strongly for a year. If that does happen, it will only be the bull trying to shake off new riders, for gold and silver will return with a vengeance. On the other hand, having now reached the downtrend lines from their 2011 lows, silver and gold may merely return to their breakout points ($1,625 and 2830 cents) for a final kiss good-bye. A third route: silver and gold next week punch clean through resistance at 3100c and $1,680 and never look back. Regardless, it is best to BUY THE BREAKOUTS and too much subtlety will stall you out of buying. So even facing all those possible reactions, I would still buy the breakout. If the reactions come, know that they are merely confirming the breakout, and buy more. From its 2799.5c close last week the SILVER PRICE gained 261.1c or 9.3% to 3060.6. Whoo-eee! Gold sparkled but only gained $58.50 (3.3%) to $1,669.80. The GOLD PRICE punctured and stepped through its 200 DMA ($1,649.56) and 150 DMA ($1,642.09), while silver yesterday closed right at, and today above, its 200 DMA (3051). In a second I'll explain why that doesn't mean as much for silver as for gold, but meantime all those "trend followers" with money burning up to be invested someplace saw that 200 DMA crossover and hopped aboard, adding fuel to the rise -- as if it needed fuel, since both metals have shot straight skyward. On the weekly chart, The GOLD PRICE fury this week took it above the 50 week moving average for the first time since March. Why do you and I care about the 50 WMA? Because since this gold bull began charging, it has been skimming along atop that 50 WMA except for breaches in 2008 and 2011 and 2012. In silver the 50 WMA (now 3096c) has performed the same service, and silver is mere fingertips away from crossing over that. On a daily chart, more volatile silver treats its 300 DMA as other markets treat their 200 DMAs. That 300 DMA now stands above silver at 3263c, and crossing that will confirm silver has left the dreary woods of correction. After the huge rise we saw last week, it won't surprise me if silver and gold correct next week, gathering strength to break those overhead downtrend lines. Their rises are fed by the want of other investment opportunities. Other markets are flat or struggling, like stocks, and government bonds offer a zero or negative return after inflation. Lots of hot money is looking for a home. Gold may be upgraded 100% valuation status for bank reserves under new banking regulations, and that would help as well, especially when government bonds are offering negative returns. Bottom line: it appears the next rally in silver and gold has begun. I don't claim to be anything more than a natural born fool from Tennessee, but ciphering around with some past gold moves (I use a board and a piece of charcoal), I arrived at some shocking forecasts: gold above $2,650 by next June, and at the top of this leg $4,125. Those are minimum figures. Now don't go chiseling those numbers on Stone Mountain next to Lee, Jackson, and Jefferson Davis. They're just forecasts, not prophecies, and loaded with all sorts of iffy assumptions. But they do sort of take your breath away, don't they? Makes you want to buy some gold and silver. It's been many a week, yea, many a month since we've seen silver and gold dance like they did this week. Yet the falling dollar helped stocks not a bit. Labor strife at Lonmin's South African mine at Rustenburg drove platinum and palladium up a tree. I believe we will look back two months from now and say, "Yep, that's where silver and gold broke out into a new rally." The currency story is quickly told. US dollar index lost 1.3% this week, falling to 81.563 today. No doubt this arises from the Nice Government Men's market operations, as they need to float that euro. Surprise of the week was the yen, unusually and poisonously strong for export-addicted Japan. Euro backed off today 0.36% to $1.2518, bouncing off $1.2600 resistance. Still, it remains in an uptrend. Yen backed off 0.26% to 127.07c (Y78.70). I can't imagine those Japanese NGM letting it rise much higher. STOCKS had a rotten week, falling to the bottom boundary of their rising wedge formation. Dow would have finished the week down over 200 points if it hadn't rallied today and pared that loss to 132.25 (1%). Dow gathered in 100.51 (0.77%) today to a 13,157.97 close. S&P500 rose 9.05 (0.65%) to 1,411.13. Unless the Dow closes below 13,000 stocks probably have one last upward spurt before the weeping, wailing, and tooth-gnashing begins. Y'all enjoy your weekend. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com 1-888-218-9226 10:00am-5:00pm CST, Monday-Friday © 2012, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. No, I don't. 
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| Guest Post: Why You Always Want Physical Everything Posted: 24 Aug 2012 02:50 PM PDT Submitted by Simon Black of Sovereign Man blog, On the way from San Marino yesterday, I had to stop for some gas near Rimini, a beautiful beach town on Italy's Adriatic coast. As an aside, Italian gas prices are among the highest in Europe… and the world… at €1.77 per liter (almost USD $8.50 per gallon). Naturally, the vast majority of this is due to taxes. From the € 1.77 per liter, only about € 0.48 can be attributed to the price of oil. Profit margin and distribution costs run about € 0.28. The rest of it (just over 1 euro) is tax. This amounts to an effective tax rate of over 130% on fuel. Anyhow, when I pulled in to the gas station, I whipped out my American Express card and asked the attendant in broken Italian to turn on the pump. He acted like I had just punched him in the gut, wincing when he saw my credit card. "No… cash, only cash," he said. I didn't have very much cash on me, so I drove to the next station where a similar experience awaited me. This is a trend that is typical when economies are in decline– cash is king. Businesses often won't want to spend the extra 2.5% on credit card merchant fees… but more importantly, distrust of the banking system and a debilitatingly extractive tax system pushes people into cash transactions. You can't really blame them. In Italy there's massive distrust of the local banking system. Most of the banks are insolvent, and the government has already started imposing capital controls by limiting withdrawals in some cases to 1,000 euros. As a result, many bank customers are facing substantial difficulty in accessing their funds; it's easy to understand why they want to deal in physical cash– the counterparty risk is much lower. Nobody gives these issues much thought… right up until they get shut out of their account. But these are the real consequences of counterparty risk: anytime your asset is simultaneously someone else's liability, you might have a big problem when tough times arise. This is when physical cash becomes a premium asset. It's the same thing with gold and silver when you think about it. In the early days of the post-Lehman financial crisis, precious metals prices were tanking. At least, on paper. Gold and silver contract prices may have been plummeting in futures exchanges around the world, but simultaneously, premiums for physical gold and silver coins were skyrocketing. The US mint was unable to keep up with demand for physical coins, and premiums hit double digits by December 2008. It was an obvious example of the huge disparity between the paper price and the physical price. And in tough times, the paper price is irrelevant. Physical is all that matters. Cash is in the same boat. When you look at the numbers, the amount of physical currency in circulation is dwarfed by the digital money supply. In the EU, the M2 money supply is 8.77 trillion euros, of which only 861 billion is in physical cash… about 9.8%. In the US, the proportion is similar– $10.02 trillion M2 money supply, $1.1 trillion in physical cash. The rest is all digits in a database. It's a prudent idea to heed this lesson from Italy, for as the banking malaise in southern Europe spreads, cash is likely going to be a premium asset in the rest of the world as well. And it certainly makes sense for individuals to have some holdings of cold, hard cash in addition to physical metal. After all, if you're only generating 0.0000001% interest in your bank account anyhow, what difference does it really make to hold physical cash? You're not worse off for it, but you'll be a lot better prepared in case something goes wrong.
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| Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 3% and 9% on the Week Posted: 24 Aug 2012 02:16 PM PDT Gold dropped $5.45 to $1662.55 in Asia, but it then rose to as high as $1673.36 in New York and ended with a gain of 0.05%. Silver climbed to as high as $30.712 and ended with a gain of 0.52%.
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| Gold Daily and Silver Weekly Charts - Quiet Day of Consolidation Posted: 24 Aug 2012 02:13 PM PDT |
| Gold and Silver Disaggregated COT Report (DCOT) for August 24 Posted: 24 Aug 2012 02:02 PM PDT HOUSTON -- This week's Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report was released at 15:30 ET Friday. Our recap of the changes in weekly positioning by the disaggregated trader classes, as compiled by the CFTC, is just below. In the DCOT table above a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting "longer" and red figures are traders getting less long or shorter. All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report. Vultures, (Got Gold Report Subscribers) please note that updates to our linked technical charts, including our comments about the COT reports and the week's technical changes, should be completed by the usual time on Sunday (18:00 ET). That is all for now.
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| Too Much of a Good Thing, Continued… Posted: 24 Aug 2012 01:54 PM PDT Bill Bonner View the original article. August 24, 2012 10:04 AM Economists cannot know what is 'better.' They can only know what is 'more.' They have numbers. They can count. They can add up 'more'. As for 'better,' they have no idea. So, in their little minds, more is better. That is the thinking that has driven the profession…and much of the world economy…to absurdity. Throughout the last 50 years, more looked so much like better, no one worried too much about the difference. More cars. More houses. More food. More gadgets. What was not to like? But the cost was more debt. And by the 21st century the burden of debt had become so great that the system could no longer move forward. Here is how it worked, up until the early spring of 2007: The Chinese, and others, made more stuff. The Arabs, and others, pumped more oil. Americans, and others, created more credit and used the money to buy more stuff. Rather than demand payment — in gold — for their excess dollars, ...
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| Gold Triangle Breakout Objectives at 1685, 1720 Posted: 24 Aug 2012 01:54 PM PDT courtesy of DailyFX.com August 24, 2012 04:44 AM Daily Bars Prepared by Christopher Vecchio, Currency Analyst The descending trendline off of the September 6, 2011 and February 29, 2012 highs (coincidentally major dates for the Euro-zone crisis: the day the Swiss National Bank implemented the EURCHF peg at 1.2000; and the day the European Central Bank implemented LTRO2, respectively) broke yesterday, suggesting that the consolidation Gold has been in for the past 11-months may be over. Although the daily RSI is showing signs of technical exhaustion, our bias for precious metals has become bullish. A weekly close above 1660 today would be bullish going forward. Using the near-term channel, off of the May 16 and July 12 lows, with the topside parallel taken at the June 6 high, near-term resistance comes in at 1680/85. Congestion is likely into 1700/20. Support comes in at 1640/45 (200-DMA), 1610, and 1585. --- Written by Christopher Vecchio, Currency Analyst ...
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| US Republican platform said to eye return to gold standard Posted: 24 Aug 2012 01:37 PM PDT 23-Aug (Reuters) — The Republican Party is set to call for the creation of a commission to look at restoring a link between the U.S. dollar and gold severed 40 years ago, the Financial Times reported on its website Thursday. Drafts of the party platform to be adopted at the Republican National Convention next week in Tampa, Florida, also call for an audit of Federal Reserve monetary policy, the paper said. Marsha Blackburn, a Republican congresswoman from Tennessee and co-chair of the platform committee, was quoted as saying these points are not an effort to placate libertarian Representative Ron Paul and the delegates he picked up during his campaign for the party's nomination. "These were adopted because they are things that Republicans agree on," Blackburn told the Times. "The House (of Representatives) recently passed a bill on this, and this is something that we think needs to be done." [source] PG View: Whether there is any seriousness behind this or not, it is further evidence that gold continues to elbow its way back into the conversation; largely because the pure fiat money system that replaced the gold standard is perceived in many circles to be an abject failure.
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| Future Money Trends interviews GATA Chairman Murphy Posted: 24 Aug 2012 01:35 PM PDT 3:35p ET Friday, August 24, 2012 Dear Friend of GATA and Gold: GATA Chairman Bill Murphy was interviewed this week about the rally in gold and silver by Dan Ameduri of Future Money Trends. The interview is 10 minutes long and you can listen to it here: http://www.futuremoneytrends.com/index.php/category-table/231-bill-murph... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum Announces Wellgreen Preliminary Economic Assessment: Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) reports the results of an independent NI 43-101-compliant preliminary economic assessment for its fully owned Wellgreen nickel-copper-platinum group metals project in the Yukon Territory. The independent assessment, prepared by Tetra Tech, evaluated a base case of an open-pit mine (with a mining rate of 111,500 tonnes per day), an on-site concentrator (with a milling rate of 32,000 tonnes per day), and an initial capital cost of $863 million. The project is expected to produce (in concentrate) 1.959 billion pounds of nickel, 2.058 billion pounds of copper, and 7.119 million ounces of platinum, palladium, and gold during a mine life of 37 years with an average strip ratio of 2.57. The financial highlights of the preliminary economic assessment, shown in U.S. dollars, are as follows: Payback period: 3.55 years Prophecy Chairman John Lee says: "We are pleased with the preliminary economic assessment results. The numbers indicate that Wellgreen is one of most exciting mineral projects in the Yukon. The company is drilling to upgrade and expand the resource base. The infrastructure is excellent as the project is only 1,400 meters in altitude and 14 kilometers from the paved Alaska Highway, which leads to the Haines deep seaport. Discussions are under way with support from local stakeholders regarding permitting and logistics." For the complete press release, please visit: http://prophecyplat.com/news_2012_june18_prophecy_platinum_announces_res... Join GATA here: Toronto Resource Investment Conference New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT GoldMoney adds Toronto vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, and the United Kingdom, GoldMoney customers now can store their gold and silver in a high-security vault operated by Brink's in Toronto, Ontario, Canada. GoldMoney also has recently partnered with Rhenus Freight Logistics to offer another gold storage option in Switzerland. The Rhenus vault is in the secured zone of Zurich Airport and offers customers superb security as well as the ability to inspect their gold. Storage at the new vaults in Canada and Switzerland is available at GoldMoney's lowest fees. Customers can select their storage location when placing their buy order. GoldMoney customers can take delivery of any number of gold, silver, platinum, and palladium bars from any GoldMoney vault, as well as personally collect their bars stored in the Hong Kong, Switzerland, and U.K. vaults. It's easy to open an account, add funds, and liquidate your investment. For more information, visit: http://www.goldmoney.com/?gmrefcode=gata
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| COT Gold, Silver and US Dollar Index Report - August 24, 2012 Posted: 24 Aug 2012 01:33 PM PDT COT Gold, Silver and US Dollar Index Report - August 24, 2012
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| US Dollar Intermediate Term Chart Posted: 24 Aug 2012 01:25 PM PDT |
| Eric King's Blockbuster Interview with Silver Vigilante No. 1: Eric Sprott Posted: 24 Aug 2012 01:22 PM PDT Sprott – We Are Staring At Chaos & Collapse In Front Of Us
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| Gold and the $600 billion question Posted: 24 Aug 2012 12:58 PM PDT After spending the better part of three months locked in a lateral range, gold finally broke out on Aug. 21 and went on to make a series of follow-through highs. December gold was quoted at $1,667 as of this writing, its highest level since early May. The move came as many investors assume the Fed is about to stimulate the economy. [FONT=Arial]The basis behind this assumption came from the recently released minutes from the U.S. Federal Reserve’s latest meeting, which showed that “many members” of the Fed's Open Market Committee felt that additional action would be warranted unless the economic recovery shows “substantial and sustainable strengthening.” The minutes also showed that many officials favored pushing any increase in short-term interest rates beyond the Fed's current target of late 2014. Many economists believe the target will be pushed to mid-2015. All summer, pundits on both sides have been complaining that the U.S...
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For years, I have noted how roughly 99% of ALL gold price increases occur in the early hours of New York COMEX PAPER trading; a comedy, tragedy, and farce wrapped up in one, care of a Cartel that aims NOT to push prices down – that CANNOT be done – but to control the pace of the bull market, preventing significant momentum from building at any given time.
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