Gold World News Flash |
- Eric Sprott Cautions Investors to Fear the Financial System
- A Flashing Warning On The “Unintended Consequences” Of Ultra Easy Monetary Policy From… The Fed?!
- Get Your Money Out of Morgan Stanley—Fast!
- Telling the TRUTH is a Revolutionary Act, but will it soon be ILLEGAL? – SilverDoctors
- Doug Casey Predicts Day of Economic Reckoning Is Near
- Dr. Nu Yu?s View of Stock Markets, Gold/Silver, Crude Oil, USD & US Treasury Bond
- Goldrunner?s Latest Fractal Gold Review & Update of Gold?s Ascent to $10,000-$12,000
- Another Consequence Of China's 'Ostrich' Economics: Iron Ore And Coal Set To Plunge Further
- Boomers Are Breaking the Deal
- QE Pathology
- The Gold Price Gained $2.60 Closing at $1,672.40 on the Comex but Fell Off Sharply in the Aftermarket
- Gold Seeker Closing Report: Gold and Silver End Near Unchanged
- Gold: First Mover Advantage
- A New Gold Commission?
- A Flashing Warning On The "Unintended Consequences" Of Ultra Easy Monetary Policy From... The Fed?!
- Richard Russell: This Is The Beginning Of A Major Move In Gold
- Jim's Mailbox
- Your Window to Buy Below $1,700 Is Closing
- David Schectman–Nobody Can Fix The Mess We’re In 27.Aug.12
- Brother John F–This Silver and Gold Rally Is For Real-Buy! Buy! Buy! 25.Aug.12
- Is the Price of Silver Signaling the Next Monetary Supernova, or Will it be the Cause?
- Reasons Why China Wants Its Citizens to Own Gold and Silver
- Leeb - The Catalyst That Will Take Gold Over $10,000
- Stocks Stumble Despite AAPL's Best Efforts
- Gold Daily and Silver Weekly Charts - A Pause at Resistance, Now Support
- Eric Fry: Fed officials are 'champions of dishonesty' for rigging markets
- Champions of Dishonesty
- Lawrence 'Lawrie' Williams: Does China Have a Hidden Agenda on Gold?
| Eric Sprott Cautions Investors to Fear the Financial System Posted: 27 Aug 2012 10:00 PM PDT by JT Long, The Gold Report:
The Gold Report: You've stated before that the price of gold should be above $3,200/ounce (oz) and the price of silver above $200/oz but market manipulation keeps both metals artificially low. Who is manipulating it? Eric Sprott: I suspect the G6 central banks have a hand in subverting the gold price because as the canary in the coal mine, high gold prices might tip everyone off to the severity of the ongoing financial crisis. I don't think anyone can doubt that we're in the middle of a financial crisis, primarily in the banking system, when month after month one program after another is rolled out to save somebody, whether it's Long-Term Refinancing Operations (LTROs), quantitative easings (QEs), bank bailouts in Spain or rollovers of debt in Greece.
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| Posted: 27 Aug 2012 09:36 PM PDT from Zero Hedge:
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| Get Your Money Out of Morgan Stanley—Fast! Posted: 27 Aug 2012 09:33 PM PDT by Dominique de Kevelioc de Bailleul, Beacon Equity Research:
"I'm hearing rumors that another major financial house is going to implode," says TruNews host Rick Wiles. In fact, the name I've been given is Morgan Stanley . . . "It's going to be put on the sacrificial alter by the financial elite." Beyond the evidence of a teetering stock price—Morgan Stanley's troubles may never go away—leading to bankruptcy, if traders can glean anything from the financial activities of front-running insider George Soros, the man who warned in Jun. 2010 that the global financial crisis has entered "act II." According to Soros' 13-F filing (ending Jun. 30) with the SEC, the billionaire financier reported that his fund sold nearly all shares of JP Morgan, Goldman Sachs and Citigroup—not paring back his holdings of financials, but completely dumping them. And, as if to yell that the F.I.R.E economy is, indeed, on fire, the 82-year-old Soros also reports loading up on gold—adding a bit of poetry to Charlie Munger's bizarre comment (1) in reference to investors who seek out gold in times of trouble.
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| Telling the TRUTH is a Revolutionary Act, but will it soon be ILLEGAL? – SilverDoctors Posted: 27 Aug 2012 09:17 PM PDT from Unconventional Finance: While the gold manipulators are loosing control and precious metals prices are breaking out, the "Doc" from SilverDoctors.com exposes the reality of metals manipulation. But wait! How much longer will we be able to report these issues? Make sure to stay tuned, for, "Doc" reveals how the government is starting to take control of the Internet.
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| Doug Casey Predicts Day of Economic Reckoning Is Near Posted: 27 Aug 2012 09:00 PM PDT by Doug Casey, Casey Research:
The Gold Report: There will be a Casey Research Summit on "Navigating the Politicized Economy" in Carlsbad, California in September. Investors from around the world look to these summits as future road maps for investing pitfalls and opportunities. 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.
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| Dr. Nu Yu?s View of Stock Markets, Gold/Silver, Crude Oil, USD & US Treasury Bond Posted: 27 Aug 2012 08:42 PM PDT Lorimer Wilson is in China assessing the health of its economy, seeing the sights and gathering material for future articles on China’s economy and its future prospects. Below is an abbreviated*guest post from Dr. Nu Yu (www.marketweeklyupdate.com). The complete Update can be read here. The S&P 500 Index is in a 13-Week Uptrend Channel The S&P 500 index is in a 13-week Bullish uptrend channel. Last week, the index briefly reached 1420, the price target projected from the 15-week descending broadening triangle. Chinese Stock Market is Forming a 5-Month Falling Wedge The Chinese stock market still struggles at its multi-year low level. Now the Shanghai Composite Index is forming a 5-month Falling Wedge pattern. If prices are able to break to the upside of the wedge, the Chinese market could become bullish. Otherwise, it remains bearish to make lower lows along the falling wedge. Gold is in the "Run" Phase of a Bump-and-Run Reversal Top Pattern The gold index has b...
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| Goldrunner?s Latest Fractal Gold Review & Update of Gold?s Ascent to $10,000-$12,000 Posted: 27 Aug 2012 08:42 PM PDT Lorimer Wilson is in China assessing the health of its economy, seeing the sights and gathering material for future articles on China’s economy and its future prospects. Below is a guest post by Goldrunner of www.goldrunnerfractalanalysis.com [/CENTER] During the early stages of the Gold Bull we were able to show Gold's advance versus the late 70's on a single long-term chart since similar chart resistance points were evident.* This gave us the timing for what we coined in 2007, "the Deflation Scare waterfall decline" into the 4th quarter of 2008.* Below, is a sample chart from 09-29-07. Intial Projection of $1860 (Later Revised to $1920) Achieved in August 2011 After Gold re-tested the "old 1980 top" in the 4thquarter of 2008, the move to new historic highs left no horizontal resistance on the chart to help guide the way.* Thus, in late 2010/ early 2011, we used the time and price relationships from the late 70's to project Gold's price advance into the middle of 2011 ...
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| Posted: 27 Aug 2012 08:01 PM PDT The impact of unsustainable production in Chinese Steel-making plants, to avoid the inevitable employment consequences, has created a 'glut'. This excess inventory will need to be worked through before spot Iron Ore (and Coking Coal) prices can stabilize. Morgan Stanley believes the sharp raw material price declines since mid-July followed a collapse in Chinese steel prices and aggressive margin compression. This was the result of continued weakness in demand and the over-production of crude steel, reflected in rising producer inventories. This is in turn has resulted in aggressive thrifting of raw material purchases. More recently, the price declines have accelerated with Chinese re-bar and HRC prices reaching 33-month lows. In their view, prices of steel making raw materials can recover in 4Q 2012 and in 2013, but spot prices for both iron ore and coking coal first have to fall below the marginal cost of seaborne (not Chinese) production to drive out the short-term supply overhang. In addition, Chinese steel mills have to complete finished product and raw material de-stocking to stabilize both steel and raw material prices (if they are ever allowed to). Iron Ore prices could fall 17% further before this 'stabilization' and spot coking coal over 8% from current levels. Spot Iron Ore and metallurgical coal prices...
Where will prices stabilize? Our best estimate of where spot prices for iron ore and hard coking coal might bottom-out in this environment is one in which prices reflect levels that are below the marginal cash cost of the true seaborne market, not sellers of distressed or displaced cargoes in this environment, the price has to reflect a level that drives the seaborne sellers out of the market, albeit temporarily. At the same time, as the spreads between domestic and international prices widen (especially in the iron ore market), prices at levels below true seaborne marginal cost should also become sufficiently attractive to beleaguered Chinese mills to finally entice them back to the market, albeit on a small scale until steel prices stabilize. At the time of writing, with spot prices for 62% Fe fines CFR into North China at US$99.40/dmt, Australian net back prices on the IODEX platform for a capesize cargo, with an 8.03% moisture adjustment, are US$94.32/t, while Brazilian net backs are at US$82.60/t with a 9.0% moisture adjustment. The global seaborne iron ore cost curve (ex-China), 2012
Worst case scenario – prices could overshoot below the seaborne marginal costs of around US$92/t DMT CFR. We think the true seaborne market (which excludes China domestic production) is driving current prices. Given that there could be as much 4Mt of displaced cargoes trying to find immediate buyers in this environment, we believe there is a possibility prices could overshoot on the downside. Based on data from CRU Consultants, we estimate that on a business or cash equivalent basis, the 90th percentile of seaborne suppliers (ex-China) as a proxy for marginal cost is US$79/t on a FOB wet metric tonnes basis for two small Australian producers. At current spot freight rates and an average moisture content of 8%, this equates to an implied CFR price of US$92/t, some 7.7% below the current spot. To highlight the very short-term risk of prices overshooting even below this level, we have assumed a potential further downside risk of 10% below this indicated price level, suggesting a possible floor in the price around US$82-83/t cfr North China for 62% Fe fines. At this level, prices would have fallen to the 86th percentile of current true seaborne costs, a level 16.9% below the current spot price. Interestingly, at today's spot price, the 4Q 2012 midpoint price is at US$93.25/dmt CFR DMT North China, slightly above the estimated level of the seaborne marginal cost. On the same basis of a potential overshoot 10% below estimated seaborne marginal cost, spot hard coking coal prices could fall as low as US$150-155/t fob North Queensland, indicating further potential downside of 5.2-8.3%.
Source: Morgan Stanley
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| Posted: 27 Aug 2012 07:00 PM PDT by John Mauldin, Gold Seek:
How Are You Going to Keep Them Down on the Farm? Last spring, I mentioned I was working on a book on employment with Bill Dunkelberg, the Chief Economist for the National Federation of Independent Businesses. We were hoping to get it out by this fall. In the process of researching the topic, I began to see some new patterns in the employment trends that suggest we may be going through a generational transformation, led by both demographics and technology. And while it is ultimately positive, the transition will be harder on some groups than others. In the next few months we will take some time to explore these new trends, but let me quickly lay out a few areas for discussion.
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| Posted: 27 Aug 2012 06:23 PM PDT Since I'm posting this on ZH, I'll mention - cough - check out my new site SocialTrade - cough. Thanks. Oh, and sorry about the "kook" reference below. I know most of you are the gold-is-heading-to-$4500/ounce type. Anyway.... We live in insane times. I mean this sincerely. The reason they don't seem insane is because we have been led here, bit by bit. We are like the proverbial frogs in the pot full of water; the temperature has been turned up very gradually, and we don't notice what a dire situation we're in. Let's just step back and look at the facts: the entire financial world is breathlessly awaiting the words of a lifelong academic who couldn't successfully manage a Burger King. The most powerful position in the financial universe has been given to The Bearded One, and while all the chatter this week is going to focus on whose Jackson Hole is going to get reamed, the real fireworks will be on September 13th. Take a look at the chart of the OEX, and join me on the other side of it: I draw these conclusions: + The area in the rounded rectangle was the real "buying opportunity" - - the kind that only comes along once a generation. People who gobbled up stocks in early 2009 obviously did the right thing, and they did so brilliantly (or at least luckily). + The successive rounds of "easing" that Ben has shoved down our throats (or up our aforementioned Jackson Holes) have been obviously losing steam. This isn't a matter of subjective interpretation; this is simply an arithmetic fact. QE1 powered stocks like mad; QE2 pushed them, but without nearly as much gusto; and the Operation Twist rally has been anemic (and, in the case of the small caps, inconsequential). + The red horizontal line marks we are now. We are a great deal lower than we were at the market's peak at 2007 - and allow me to stand on a rooftop and shout this - - this level has been provided only after trillions of dollars have been poured onto the market like so much gasoline on a fire. If this is the best that trillions of dollars of new debt can provide, how much more upside do you think QE3 is going to provide? Let's look at the Dow 30 now: It's a similar situation; we are mashed up against the top of a channel that has been in place for many, many years, and that is ONLY with the assistance of trillions of dollars of accommodation that Ben has provided to his banker butt buddies. What I am waiting for - - the day I live for - - is when Ben announces his next offering of Big News and the market wilts as swiftly as a college fraternity President's peninsula of masculinity when confronted with an all-nude, life-sized color photograph of Abby Joseph Cohen. The promise of this day gives me the resolve to keep going. Not that today was a bad day; on the contrary.....my portfolio was UP more than the market was UP, equities were higher virtually across the board (SPY/QQQ/IWM all in the green), I was ENTIRELY short, AND I had a 30% of my portfolio in cash! Give me a day that the market is up, I make more money than the market, and I'm entirely short, and I'm a happy guy. I can only imagine the results if this stinking sack of crap was allowed to fall by the King of the Juice. To my eyes, the miners are a jumping-up-and-down, Holy Jesus Back Up the Truck kind of short. People only see the "obvious" when it's too late. Here's the Russell from back in 2007 and 2008. It was obvious to me that it was going to collapse. ........and it did.......... And afterwards everyone talked about how obvious it was. No one mentions it beforehand. For me, looking at anything kook-oriented is even more of a screaming short. Here's the gold and silver index: And here is the $HUI: I am thus short the GDX and long GDX puts. I intend to amplify this position piece by piece if things continue to inch my way. I'm 70% committed now in 93 different short positions, and although even God himself doesn't know what's going to happen this Friday, I am certainly hoping that evil, corrupt, sorry excuse for a man named Bernanke completely disappoints his co-conspirators so we can at least wait until 9/13 for the real decision point. I bid you farewell, and I thank you for visiting my little corner of the fiscal blogosphere.
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| Posted: 27 Aug 2012 05:33 PM PDT Gold Price Close Today : 1672.40 Change : 2.60 or 0.16% Silver Price Close Today : 31.048 Change : 0.427 or 1.39% Gold Silver Ratio Today : 53.865 Change : -0.666 or -1.22% Silver Gold Ratio Today : 0.01856 Change : 0.000227 or 1.24% Platinum Price Close Today : 1551.90 Change : -1.20 or -0.08% Palladium Price Close Today : 649.30 Change : 2.60 or 0.40% S&P 500 : 1,410.44 Change : -0.69 or -0.05% Dow In GOLD$ : $162.23 Change : $ (0.65) or -0.40% Dow in GOLD oz : 7.848 Change : -0.031 or -0.40% Dow in SILVER oz : 422.72 Change : -6.98 or -1.62% Dow Industrial : 13,124.67 Change : -33.30 or -0.25% US Dollar Index : 81.68 Change : 0.113 or 0.14% The GOLD PRICE and SILVER PRICE both got their feet tangled in the downtrend line from last year's high. Gold gained $2.60 to $1,672.40 while silver added 44.2 cents to end Comex at 3104.8c. That was fine, but both dropped off in the aftermarket, a little too sharply. The GOLD PRICE has now rounded over, in what may prove a consolidation or a short term top. Right now it's flirting with $1,660, but really must hold $1,645 to avoid a correction back to $1,625. The SILVER PRICE scratched out a double top at 3120c today, and now is scratching to cling to 3060c. Support stands around 3060c, then 3000c and 2900c. After those respectable closes, GOLD fell nearly $10 in the aftermarket, silver about 65 cents, platinum $8 and palladium $5. That sharp fall on no particular news I could find leads me to expect a rocky week, paying dues for last week's spiky gains. It'll be all right. SILVER and GOLD PRICE have made their decisive breakouts. May be a little negotiating to be done here leaving the gate, but that'll be soon passed. Market is offering you an rare opportunity to LOAD UP before it takes off. Remember that I have been warning that this correction can be steep and fast, but don't let that worry you. On the other hand, any closes above today's (3104.8c and $1,672.40) means the rally has started, so don't wait to buy. Y'all have got to watch out! You know how to tell a politician is lying, right? His lips are moving. Some of y'all wrote me asking about a news story that the Republican Party is considering including a new gold standard in its platform. Now think about that. Republicans will return the country to a gold standard when hell freezes solid. They've been owned by the banks and corporations since 1860, and Lincoln before that. He was a railroad lawyer. We will get a gold standard when it is FORCED on them, Republicans and Democrats alike, and not before. It is a a reform so radical that it will GUT their power and the banks', and they just can't stand that. Frederic Bastiat (d. 1850) said it best: "When plunder has become a way of life for a group of people living together in a society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it." Not only do they steal from us, they preen themselves as morally superior because they steal from us. You want to give power to the people? Then put gold and silver money into their hands! That's more powerful than a Remington 870 twelve gauge pump. Sorry dollar gained a little against the sorry euro and sorry yen. Markets are nervous about what Ben the Bandit might bloviate to the Jackson Hole Gathering for Our Bosses. Super-Mario Draghi will speak there, too. My, my, they're a-gonna be wallerin' hip deep in Deep Thoughts -- or something. Dollar gained 11.3 basis points (0.14%) from where it was trading when I wrote Friday. Five day chart has an iffy look. Probably planning to drop a little further, certainly will if it can't better 81.70 tomorrow, but to turn around and rally again it needs to climb over 81.85. Drop below last low at 81.20 will be like tying an anvil to a man's ankles and dropping him off a bridge with his hands tied. Euro today stubbed its toe on bad economic news in Germany. Ended at $1.2498, lighter than Friday by 0.11%. So far that $1.2600 resistance has stopped like Jackson stopping yankees in the Valley. Despite last week's jump yen did not get through 127.75c resistance, the main downtrend line. Closed at 127.0 c (y78.73) today, down 0.9% and just below its 20 DMA (127.12). For what the opinion of a natural born fool is worth, looks to me like the Nice Government Men are working at managing these currencies as hard as a hairy dog works at managing fleas. STOCKS fluttered today like an naked chicken but never could get off the ground. Dow fell 33.3 (0.25%) to 13,124.67. S&P500 didn't do quite as badly, fell 0.69 (0.5%) to 1,410.44. Stocks remain within their bearish rising wedge, so could yet jump higher. Any close below 13,000 is fatal and will loose a flood of blood. 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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| Gold Seeker Closing Report: Gold and Silver End Near Unchanged Posted: 27 Aug 2012 05:30 PM PDT Gold climbed up to $1676.74 in Asia, but it then fell back off in London and New York and ended with a loss of 0.35%. Silver surged to as high as $31.241 in Asia before it also fell back off, but it still ended with a gain of 0.03%.
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| Posted: 27 Aug 2012 04:50 PM PDT In the Investor Alert, our investment team shares charts and data that we believe provide readers with a first mover advantage. While markets don't always move like we anticipate, recognizing historical trends can provide an edge if you act quickly.
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| Posted: 27 Aug 2012 04:43 PM PDT August 27, 2012 [LIST] [*]A "nod" to the gold standard... or the bum's rush? Or how serious is one political party about abolishing "political money"? [*]An "attractive entry point": Frank Holmes with a compelling gold chart [*]"Stunning": Patrick Cox on test results that deliver more ammo for the fight against the next flu pandemic [*]Stimulus, Chinese style: Build a bridge, then rebuild it after it collapses [*]Free again: An update on Brandon Raub... Reader reflections on jury duty... possible explanations for the varied spending habits of Republicans and Democrats at strip clubs... and more! [/LIST] Few headlines have been more misleading than one that emerged on Friday: "Republicans Eye Return to Gold Standard." When a storm-delayed Republican convention gets under way in Tampa tomorrow -- affording an extra day for extracurricular activities of the sort we described on Friday -- the prospect of a "gold commission" appears set to find ...
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| Posted: 27 Aug 2012 04:33 PM PDT The case for ultra easy monetary policies has been well enough made to convince the central banks of most Advanced Economies to follow such polices. They have succeeded thus far in avoiding a collapse of both the global economy and the financial system that supports it. Nevertheless, it is argued in this stunningly accurate paper via none other than the Dallas Fed (and BIS economist William White), that the capacity of such policies to stimulate "strong, sustainable and balanced growth" in the global economy is limited. Moreover, ultra easy monetary policies have a wide variety of undesirable medium term effects - the unintended consequences. They create malinvestments in the real economy, threaten the health of financial institutions and the functioning of financial markets, constrain the "independent" pursuit of price stability by central banks, encourage governments to refrain from confronting sovereign debt problems in a timely way, and redistribute income and wealth in a highly regressive fashion. While each medium term effect on its own might be questioned, considered all together they support strongly the proposition that aggressive monetary easing in economic downturns is not "a free lunch". Absolute must read! As we noted earlier:
...well he won't. So luckily the Dallas Fed will do it for him...
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| Richard Russell: This Is The Beginning Of A Major Move In Gold Posted: 27 Aug 2012 04:22 PM PDT  The Godfather of newsletter writers, Richard Russell, believes we are seeing the beginning of a major move in gold. Here is what Russell, who is now 88 and has been writing about the markets for nearly six decades, had to say: "The wild cards --- the stock market takes an unexpected spill in September, and the employment and unemployment statistics worsen just around election time."
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| Posted: 27 Aug 2012 04:11 PM PDT Dear Jim, A $5000 goal for the metal is her most bold forecast. Carries weight. Regards, Harry Schultz My Dear Friends, Louise Yamada is an accepted amongst establishment commentators. It is nice to see her on the same page as we are. Regards, Jim
Gold Is Talking CIGA Eric Gold is talking What Continue reading Jim's Mailbox
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| Your Window to Buy Below $1,700 Is Closing Posted: 27 Aug 2012 03:30 PM PDT Synopsis: Gold is awakening from its year-long slumber. Dear Reader, I have some good news for International Speculator subscribers today: Inter-Citic Minerals (T.ICI) has received a buyout proposal from Western Mining Group, a resources-development company in Qinghai Province, China. The stock is up 35% as I write – another win for our readers. Meanwhile, gold and silver have made an impressive move over the past couple of weeks. Is the window to buy gold below $1,700 closing soon? Check out our timely article by BIG GOLD editor Jeff Clark and draw your own conclusions. Either way, our advice is to make sure you own enough bullion to withstand the monetary fallout that we're convinced is headed our way. Sincerely, Louis James Senior Metals Investment Strategist Casey Research Rock & Stock Stats[RIGHT]Last One Month Ago One Year Ago[/RIGHT] Gold1,670.301,580.651,758.96Silver30.5326.9439.71Copper3.503.354.00Oil96.2788.5...
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| David Schectman–Nobody Can Fix The Mess We’re In 27.Aug.12 Posted: 27 Aug 2012 03:17 PM PDT www.FinancialSurvivalNetwork.com presents David Schectman got into selling gold purely by chance. But he realized that it was his calling and he hasn't looked back once. He's been following the world's central banks economic foibles for nearly three decades. It's been going down hill since 1971 and there's nothing that can stop it. Major economies are giving up on the dollar and bartering among themselves. The days of living of the strength of fiat dollar are rapidly coming to an end. It will be replaced by something, which most likely be gold. That's why it's so important to be buying gold and silver now, before it's too late. Go to www.FinancialSurvivalNetwork.com for the latest info on the economy and precious metals markets.
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| Brother John F–This Silver and Gold Rally Is For Real-Buy! Buy! Buy! 25.Aug.12 Posted: 27 Aug 2012 03:06 PM PDT www.FinancialSurvivalNetwork.com presents BrotherJohnF has been calling the current precious metals for a couple of months now. The markets are displaying much different behaviors than previously. The Asian market is picking up metals with near reckless abandon. Silver is crucial to industrial use and there are no government stock piles. Therefore, when supply gets crimped, prices will sky rocket. Which explains its volatility when compared to gold. Renewed silver investment demand could cause the price to rise several multiples over what it is now. Keep watching the silver price, it might just be the tail that wags the economic dog. Go to www.FinancialSurvivalNetwork.com for the latest info on the economy and precious metals markets.
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| Is the Price of Silver Signaling the Next Monetary Supernova, or Will it be the Cause? Posted: 27 Aug 2012 02:42 PM PDT If the pricing in the world’s commodity and financial markets accurately reflected anything but the culmination of decisions made by high frequency trading systems, then the recent price action in the silver market might have something meaningful behind it. In an alternative parallel universe, the recent rally in silver might actually be ‘pricing in’ the next major monetary event.
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| Reasons Why China Wants Its Citizens to Own Gold and Silver Posted: 27 Aug 2012 02:39 PM PDT Due to China’s huge size, its developing economy is having a growing influence on the global economic system. One commodity that has been particularly strongly affected by Chinese popular demand is silver and other precious metals like gold. Not only has the Chinese government been moving toward holding precious metals in reserve as an alternative to paper currencies like the U.S. Dollar, but it has recently also encouraged its citizens to own precious metals as a way to store their wealth in a valuable physical asset.
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| Leeb - The Catalyst That Will Take Gold Over $10,000 Posted: 27 Aug 2012 02:35 PM PDT  Today acclaimed money manager Stephen Leeb spoke with King World News about the "... major catalyst for the next leg in this bull market, a leg that I contend could easily take us into five digits (above $10,000) in gold." Here is what Leeb, who is Chairman of Leeb Capital Management, had to say: "Gold had been up 8 days in a row and sort of flatlined today. Silver has been up for six days in a row, and it's up almost another 1% today. These markets are catching on to something changing. One of the things that is changing is Europe. Merkel is no longer opposed, as she once was, to central bank buying of bonds."
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| Stocks Stumble Despite AAPL's Best Efforts Posted: 27 Aug 2012 02:17 PM PDT Not even the almighty power of AAPL could bring to bear a positive end to the day for the S&P 500 or the Dow. Most notably, the Dow Transports are now -2.3% from the highs last Tuesday and diverging aggressively lower. Volume was simply incredibly low today (with London close) in NYSE and S&P 500 e-minis where volume was its lowest of the year by a long-way. VIX soared today, up over 1.2vols to 16.4% with some major put-spread buying in SPY. The afternoon weakness in gold, silver, stocks broadly (and specifically Materials, Industrials, Discretionary, and Financials) tend to indicate a QE-off move but Treasuries (which rallied 2-4bps) were largely unmoved in the afternoon. The USD limped higher also (QE-off) all afternoon but ended the day practically unchanged with AUD weakness the standout. Oil was volatile as Isaac was downgraded, cracks were arb'd, and SPR-release rumors swung it around - though the economically-sensitive commodities all clustered together at the close around -0.5%. The Nasdaq is very modestly red from the highs last week (but AAPL helped it close slightly green today) but the divergence with the Transports is incredible...
as AAPL held its gains from after-hours Friday - but notably saw major VWAP-selling pressure today...
and from last week's highs, only Healthcare is positive with Materials and Industrials down notably...
Commodities seemed to converge around -0.5% by the close...
There was some very large Put Spread buying in SPY today (h/t @OpInterest) in the 130/140 strikes - given chatter and relative price moves, it appears these were Bear Put Spread purchases in ~100k lots (or 10mm SPY shares or $1.4bn notional exposure) - suggesting someone in size is less than positive on the next few weeks (especially to do this trade on an illiquid day like this)...
Across the capital structure, stocks got a little ahead of themselves early on but reconnected with rates/vol/credit and 'plunged' together into the close. Risky assets in general were weak but Oil's drop and Treasuries rallying had a much bigger impact than stocks did...
Charts: Bloomberg and Capital Context Bonus Chart: Little known, yet very sensitive to the economy - specifically housing and construction - Ritchie Bros auctioneers has been diverging significantly from the homebuilders since the end of LTRO2. It would appear that with all this hopeful home-building that is anticipated, they will be doing it all by hand with no need to buy/sell heavy equipment...
Bonus Bonus Chart: What do stocks know that inflation breakevens do not - it seems the hope is beginning to fade from equities up here as they diverge lower from the highly correlated 10Y break-evens (and gold catches up to them)...
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| Gold Daily and Silver Weekly Charts - A Pause at Resistance, Now Support Posted: 27 Aug 2012 02:09 PM PDT |
| Eric Fry: Fed officials are 'champions of dishonesty' for rigging markets Posted: 27 Aug 2012 01:51 PM PDT 3:52p ET Monday, August 27, 2012 Dear Friend of GATA and Gold: The Daily Reckoning's Eric Fry today denounces the folks who run the Federal Reserve as "champions of dishonesty" for indulging the rigging of the LIBOR market and for rigging many other markets. Fry doesn't quite get around to including the gold market but at least he implies that if the gold market isn't rigged by the Fed, it's the only market that isn't. "Champions of Dishonesty" is the headline on his commentary and it's posted at the Daily Reckoning here: http://dailyreckoning.com/champions-of-dishonesty/ CHRIS POWELL, Secretary/Treasurer 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 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 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...
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| Posted: 27 Aug 2012 01:33 PM PDT "Achievements on the golf course are not what matters, decency and honesty are what matter." "Honesty is for the most part less profitable than dishonesty." ——————————————————- Honest money requires honest stewardship. If, therefore, the dollar is to be an honest, trustworthy currency, the Chairman of the Federal Reserve and the Secretary of the Treasury must also be honest and trustworthy. Anything less is a threat to the dollar's value, which is a threat to the very foundation of the US economy. Given this inescapable truth, what are we to make of the revelation that the Chairman of the Federal Reserve and the Secretary of the Treasury allowed the multi-trillion-dollar Libor fraud to operate for more than four years? "LIBOR, which stands for London Interbank Offered Rate, may seem like a meaningless financial obscurity to most folks," we explained in the July 19th edition of The Daily Reckoning, "But this particular obscurity happens to determine the pricing of trillions of dollars' worth of credit lines and credit derivatives. "Therefore, rigging Libor is a little like rigging magnetic north…or its modern-day equivalent, the Global Positioning System (GPS). Every compass in the world would point to a deception. More importantly, your Paris-bound jet might touch down in Tripoli. And even if your Paris-bound jet touched down in nearby Lyon, you'd still be a little annoyed… "According to press reports," we continued, "only three of the 16 banks that establish the Libor rate have admitted — or sort of admitted — to posting fraudulent LIBOR rates… But very few filthy kitchens contain just three cockroaches." Just a few days later, the world learned that the Federal Reserve and US Treasury were scuttling around with the roaches. Chairman Bernanke and Secretary Geithner knowingly allowed the Libor fraud to operate for four years! Incredibly, this outrageous revelation produced very little outrage. But the public non-reaction does not make the behavior of Bernanke and Geithner any less outrageous. If the stewards of the world's reserve currency are able to tolerate four years of cheating in the Libor market, what other frauds do they consider insignificant? Or worse, what other frauds might they be directly aiding and abetting? This fraud was not victimless, Dear Reader, quite the contrary. Day after day, week after week, unwitting investors lost money they did not deserve to lose…as the Libor-riggers made money they did not deserve to make. The cumulative losses would be incalculable. But that's not all… The biggest victim of this crime may be the US economy, itself. Dishonest financial markets paralyze capital. Generally speaking, investors refuse to invest in markets they perceive to be rigged or highly manipulated. And paralyzed markets tend to paralyze economic activity. What's more, the Libor scandal is not the first instance of large-scale, clandestine market-rigging that has occurred with the full knowledge — if not full cooperation — of the Federal Reserve and/or US Treasury. Remember all those secret, not-so-little loans the Fed doled out in 2009 to various financial firms? These were loans the Fed never disclosed at the time and never expected to disclose…ever. They were secret. "Recent disclosures from the Federal Reserve reveal that honesty was one of the earliest casualties of the 2008 financial crisis," we observed in the December 15, 2010 edition of The Daily Reckoning. "These disclosures contain a number of juicy tidbits, like the fact that Goldman Sachs received tens of billions of dollars in direct and indirect succor from the Fed… "Thanks to the Fed's massive, undisclosed assistance, Goldman Sachs managed to project an image of financial well-being, even while accessing tens of billions of dollars of direct assistance from the Federal Reserve… "On June 17, 2009, thanks to some timely, undisclosed assistance from the Federal Reserve, Goldman repaid its $10 billion TARP loan. Just six days before this announcement, Goldman sold $11 billion of MBS to the Fed. In other words, Goldman 'repaid' the Treasury by secretly selling illiquid assets to the Fed… "During the three months following Goldman's re-payment of its $10 billion TARP loan, the Fed purchased $27 billion of MBS from Goldman. In all, the Fed would purchase more than $100 billion of MBS from Goldman during the 12 months that followed Goldman's TARP re-payment.
"Did private investors not have the right to know that the Federal Reserve was secretly recapitalizing Goldman's balance sheet during this period? Did they not deserve to know that the Fed's MBS buying was producing Goldman's 'perfect' trading record during this timeframe? "Yes, would seem to be the obvious answer." But instead, private investors were forced to match their wits against massive, secret manipulation by the Federal Reserve. This secret manipulation would not become public until 18 months after the fact — long after unwitting investors had lost (or won) the capital the Fed's dishonesty caused them to lose (or win). Clearly, secret market-rigging is the Fed's lifestyle, not an occasional lark. So the investment capital that is now huddled on the sidelines is unlikely to be thinking, "I'm sure glad the Libor scandal is over and done with. Now I can invest with confidence." Instead, it is likely to be thinking, "Wow! What's next? If the Fed allowed Libor-rigging, what other frauds is it allowing…or directly conducting?" By his own admission, as early as 2008, Bernanke knew large banks were posting fraudulent LIBOR postings. Geithner has also admitted to knowing about it in 2008. But when the Congressional Financial Services Committee asked the Chairman last month why he never put a stop to the fraud, he replied, "[The Libor rate] is constructed by a private organization in the UK, and so our direct ability to influence that is limited." Geithner provided a similarly feeble defense. Seriously? Both men possessed the power to halt a crime spree. Neither did. Instead, they simply winked and nodded at the criminals. Bernanke and Geithner have been doing so much nodding and winking during the last few years that they are starting to resemble narcoleptics with turrets syndrome. "[Bernanke] is insulting his audience to say there was nothing he could do," gripes Dean Baker, co-director of the Center for Economic and Policy Research, "That is complete nonsense. If he had called up [the head of the Bank of England, Mervyn] King and said that King has to fix the Libor [fraud], and if he doesn't this all goes public, then King would have had no choice… Bernanke allowed this fraud to continue, violating his responsibilities as Fed chair." The United States deserves better. The financial markets deserve better. The US dollar deserves better. And yet, the most scandalous aspect of the LIBOR scandal is that it has produced almost no scandal whatsoever. The Chairman is still the Chairman, doing the same stuff he's been doing for the last six years, whatever that stuff might be. (Don't worry, we'll probably learn all about the stuff he's been doing, eventually…maybe). The Chairman of the Federal Reserve doesn't have to be particularly brilliant, or stylish, or entertaining, but he ought to be particularly honest…or at least not particularly dishonest. That's just no way to run a money-printing business. "The Libor scandal is clarifying, if not shocking," remarks James Grant, editor of Grant's Interest Rate Observer, "On both sides of the Atlantic, investigations into the alleged manipulation are shifting from the bankers who supposedly did the fudging to the regulators who permitted it…" Even in the best of circumstances, the Federal Reserve Chairman is a professional price-fixer and market-rigger. "The private sector manipulated prices opportunistically. The public sector rigs them on principal," Grant quips, "In the United States, the Federal Open Market Committee fixes, or 'sets,' the funds rate… It manipulates the yield curve via Operation Twist. It manipulates the mortgage market, along with every other department of the credit markets, via so-called quantitative easing. It attempts to manipulate the stock market (and expectations concerning the stock market)…" Although these manipulations are usually inimical to free market dynamics, they are, at least, disclosed publicly. Therefore, because they usually unfold in plain view, they do not usually repel or inhibit investment to any great degree. But when the world's leading price-fixer starts conducting and/or ignoring secret market manipulations, that's very bad news. As one professional investor put it recently, "The Fed is manipulating so many markets at once that it has become tougher to identify a genuine free-market price in the financial markets than to identify a genuine female in a Bangkok bar… I don't want to play in markets like this." And neither do many other investors or entrepreneurs. Increasingly, the folks with the capital to risk are refusing to risk it on anything. They are simply refusing to play the game…any game. The 2012 Survey of Affluence and Wealth in America, from American Express Publishing and Harrison Group, finds that the wealthiest Americans are hoarding three times as much cash as they were two years ago. Their savings rate soared to 34 percent in the second quarter of 2012, up from 12 percent in 2007. This skyrocketing savings rate is the flip side of lost confidence. A whopping 82 percent of the wealthy respondents said they would increase their spending and investing if they had more confidence in the future. "[The wealthy are] basically stuffing money under the mattress," says Jim Taylor, vice chairman of Harrison Group. "This has resulted in people managing their risk to a 'no loss' position rather than a 'real gains' position," Taylor said. "That's not the great tradition of American investing." Clearly, deception and dishonesty are no way to restore or inspire confidence in the financial markets…or to revive America's legendary entrepreneurial dynamism. The economy doesn't need low rates; it needs honest rates. It needs to know that the free market is setting prices in the financial markets; not the Federal Reserve….or fraudulent banks with the blessing of the Federal Reserve. Perhaps the Fed Chairman should add "honesty" to his short list of "policy tools." Eric Fry Champions of Dishonesty originally appeared in the Daily Reckoning. The Daily Reckoning, published by Agora Financial provides over 400,000 global readers economic news, market analysis, and contrarian investment ideas. ".
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| Lawrence 'Lawrie' Williams: Does China Have a Hidden Agenda on Gold? Posted: 27 Aug 2012 12:48 PM PDT "I certainly don't have a crystal ball as to what might happen in the very short term...but the long term is not...and never has been in doubt." ...
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The case for ultra easy monetary policies has been well enough made to convince the central banks of most Advanced Economies to follow such polices. They have succeeded thus far in avoiding a collapse of both the global economy and the financial system that supports it. Nevertheless, it is argued in this stunningly accurate paper via none other than the 
With the stock price of Morgan Stanley inches from its Armageddon lows of Oct. 2008, whispers of the imminent overnight collapse of this U.S. 
It is a deal with the devil: governments churn out more and more cash for the promise of continued prosperity. But the day of reckoning is near, according to Doug Casey, chairman of Casey Research and an expert on crisis investing. As the epic battle between inflation and deflation continues, Casey discusses his predictions for the new world market in this exclusive interview with 
There is something missing from this thing we are calling a recovery. For most in the US it does not feel like a recovery, and for good reason: the jobs aren't there. But for some groups it is a recovery, and more. And that reveals an even bigger problem. Today, in a summer-shortened Thoughts from the Frontline, we look at the trends in employment as well as take note of a signpost we passed on the way to finding out that we can't pay for all the future entitlements we have been promised. It's a short letter but hopefully thought-provoking. At the end, I note a webinar and a few speeches I'll be giving in the near future.
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