Gold World News Flash |
- Whether it's up or down, central banks are manipulating markets in secret
- Gold popular again despite worries over Indian monsoon
- Silver Update: Busted Trust
- Gold Daily and Silver Weekly Charts – Cap and Coil, Cap and Coil
- GATA’s Chris Powell – RT Interview
- Gold Market the Epitome of August Trading
- Bernanke Just Assured That The Student Loan Bubble Will Be The Next "Financial Stability Issue"
- Could Gold Be Tripped Up by a Coming Deflation?
- Crime of the Millennium
- The Gold Price Rose $3.20 and Must Hold Above $1,600
- Guest Post: Another Example Of Why Central Planning Is A Bad Idea
- Got Physical Gold?
- China's “golden people”
- Nick Santiago–The World Economic Soap Opera Just Goes On And On 08.Aug.12
- What the “Oil Floor” Means to You
- There Is More to Gold than Mere Capital Appreciation: John Hathaway
- Gold Seeker Closing Report: Gold and Silver End Near Unchanged
- China's strategy on gold
- Gold Daily and Silver Weekly Charts - Cap and Coil, Cap and Coil
- “Gold's next upside target should be to close at 1700 which would take it above the preceding 1900 peak.”
- Precious Metals Market Report – 8.9.12
- There Is More to Gold than Mere Capital Appreciation
- Get Ready for the Gold Rebound Before It Is Too Late
- Definitive Primer On Gold/Silver Market Manipulation
- The Fiat Currency Bubble seals the euro’s fate
- LGMR: Gold Market "Lacking Momentum" as Traders "More Interest in Olympics", City of London "Under Attack" from US
- In The News Today
- Jim's Mailbox
- Richard Russell - Has A Massive & Historic Bubble Popped?
- Moment Of Exquisite Mogambo Revenge (MOEMR)!
| Whether it's up or down, central banks are manipulating markets in secret Posted: 08 Aug 2012 10:52 PM PDT 1:10a ET Thursday, August 9, 2012 Dear Friend of GATA and Gold: Izabella Kaminska, the brilliant financial writer and researcher at FT Alphaville, has gone from suggesting, last September, that central banks were suppressing the price of gold by stuffing leased metal into the market -- http://ftalphaville.ft.com/blog/2011/09/14/677021/why-gold-forward-rate-... -- to suggesting, this month and last, that central banks now may be supporting the gold price as a mechanism of currency devaluation or at least reflation: http://ftalphaville.ft.com/blog/2012/08/07/1109781/gold-qe/ http://ftalphaville.ft.com/blog/2012/07/10/1077461/propping-up-the-gold-... It's not such a wild idea. GATA people and other students of the gold market whose work GATA has brought to your attention, like the Scottish economist Peter Millar -- -- and geopolitical analyst James G. Rickards -- -- have speculated on the necessity of an upward revaluation of gold to avoid either a deflationary collapse of Western economies or a hyperinflationary collapse of Western currencies. ... Dispatch continues below ... ADVERTISEMENT Sona Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf The financial newsletter writer Stewart Thompson has asserted the same thing for at least three years and recently has claimed that central banks have already gotten behind an upward move in the gold price -- -- though such a policy has been hard to find in the gold price chart over the last year and a half. Central bank or government intervention to raise the gold price is as much a matter of history as central bank or government intervention to suppress the gold price is. Kaminska's most recent commentary, cited above, notes the U.S. government's confiscation of gold coin in 1933 at the official price of $20.67 per ounce and gold's revaluation six months later to $35 per ounce, a 69 percent devaluation of the dollar. The gold price was held at $35 per ounce for 35 years, the last eight of them through the frankly suppressive and market-defeating mechanism of the London Gold Pool: http://en.wikipedia.org/wiki/London_Gold_Pool Of course central banks don't confide their gold policies to anyone except the investment banks that happily implement those policies as masking agents, gaining the ability to profit through insider trading, and GATA has had to sue the Federal Reserve a couple of times to try to discern its gold policy -- -- just as we recently brought freedom-of-information actions against not only the Fed but also the U.S. Treasury and State departments: http://www.gata.org/node/11606 But there's a problem with Kaminska's musing that only central banks are propping up the gold price these days. Yes, some central banks, mostly Eastern ones, are buying gold, but there is no indication of gold buying by any major Western central bank. Indeed, to the contrary, there is a long history over the last couple of decades of Western central bank gold sales, leases, and swaps that can be interpreted only as mechanisms for underwriting the "paper gold" market -- that is, to use the euphemism for gold price suppression, for providing "liquidity" to the gold market. To support its price, Western central banks would not have to come close to buying gold. They could just stop supplying "liquidity" to the "paper gold" market. Now maybe Western central banks are slowly withdrawing support from the "paper gold" market, but it sure didn't look that way when someone sold immense amounts of "paper gold" simultaneous with the devaluation of the Swiss franc last September, apparently meaning to prevent the metal from ascending to the role of ultimate "safe haven" currency. That is, the decades of Western central bank gold price suppression, right up to the attack on gold amid the Swiss franc's devaluation last September, are almost certainly still exerting a far more suppressive effect on the gold price than any supposed recent support being lent to gold by Western central banks. But regardless of whether Western central banks have turned to supporting the gold price to devalue currencies and reduce the burden of unpayable government and private-sector debt, those who believe that those central banks are suppressing the gold price and those who believe that central banks are supporting it should be able to agree that central banks are manipulating the gold market largely surreptitiously, which has been the essence of GATA's complaint since the organization's founding in 1999. It is simply taken for granted -- not just by most gold market analysts but even by the supposed journalists in the mainstream financial news media -- that central bank policy formulation and even central bank policy itself is not to be questioned directly. How absurd and tragic that these supposed journalists, when compelled, usually resentfully, to report about gold, seek interviews with investment house analysts and newsletter writers but never, ever with the primary sources, central banks themselves. That the central banks wouldn't say anything -- that they have to be sued for such basic information -- is no excuse, for such unaccountability itself then becomes the story. Of course it's not just journalism that is at fault; it is also entire political systems. Elected agencies of government may decide every trivial question but the valuation of all currency, capital, labor, goods, and services in the world is left to be determined in secret by a few dozen people, as if this is the natural order of things. It is not. It is the destruction of democracy. Powerful as central banks are, the basis of their power is only this refusal to question, to undertake the most ordinary journalism. The only thing that sustains them is the failure of journalism -- the failure of The Wall Street Journal, the Financial Times, The New York Times, the London Telegraph, the Associated Press, Reuters, Bloomberg News, and so forth -- to demand of them: Exactly what are you doing in the markets, and why? CHRIS POWELL, Secretary/Treasurer 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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| Gold popular again despite worries over Indian monsoon Posted: 08 Aug 2012 10:30 PM PDT by Ben Traynor, Bullion Street:
"Gold appears to be enjoying increasing popularity again," says Commerzbank's Commodities Daily note. "There would appear to be brisk buying interest on the market below [$1600]…which should provide the price with a safety net." The US Dollar gold price has remained within 3% of $1600 for virtually all of the last two months. "The market as a whole lacks conviction," says Marc Ground, commodities strategist at Standard Bank. "The little confidence that was forming will most likely have been destroyed by last week's disappointment [from the lack of action by the Federal Reserve and European Central Bank]."
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| Posted: 08 Aug 2012 09:25 PM PDT |
| Gold Daily and Silver Weekly Charts – Cap and Coil, Cap and Coil Posted: 08 Aug 2012 09:00 PM PDT from Jesse's Café Américain:
That might make for a fairly straightforward trading strategy, except that Europe is tilting on a knife's edge of insolvency, and that induces quite a bit of event risk in the cash markets. The real economy is faltering, the international money exchange system is broken, the financial system is crooked, and the politicians are in the grip of the monied interests and a nasty credibility trap. Other than that, everything is fine. Read More @ Jesse's Café Américain:
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| GATA’s Chris Powell – RT Interview Posted: 08 Aug 2012 08:50 PM PDT Russia Today's Lauren Lyster interviews GATA Secretary-Treasurer Chris Powell on the CFTC possibly dropping the years long investigation into the silver futures market without any action due to a lack of evidence, as recently reported. The discussion begins with Powell saying that the current "audit" of gold bars, whereby the auditor is drilling a selection of bars is not what should be audited. Powell says that it has never been GATA's contention that there were no gold bars in the U.S. depositories. What GATA, on behalf of the American people, wants to be audited is the ownership and title to the bars stored in them. Much more in the video below, including Powell's contention that the U.S. government is the "client" behind large gold and silver positions managed by one large U.S. bank and that the government carries out its metals operations by and through the Exchange Stabilization Fund (ESF) which is accountable to no one and is exempt from Freedom of Information Requests.
Source: RT via YouTube
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| Gold Market the Epitome of August Trading Posted: 08 Aug 2012 08:42 PM PDT courtesy of DailyFX.com August 08, 2012 02:20 PM Daily Bars Prepared by Jamie Saettele, CMT No change: “After breaking the triangle pattern, gold has dropped well into its former range. Other than calling this a range, there really is no reason to waste time trying to figure out where this market is headed next. In fact, one can make the argument that the triangle remains underway (latest top composing wave C), in which case this market will get even more frustrating to follow over the next few months.” LEVELS: 1563 1584 1602 1618 1630 1641...
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| Posted: 08 Aug 2012 08:01 PM PDT
Please mark your calendars accordingly as yesterday the Chairman just guaranteed that student loans will be cause for the next "financial stability issue." Here are the facts, courtesy of a just released expose on the WSJ:
And last but not least, those ever-altruistic baby boomers:
Because leaving them with $16 trillion in public debt is not enough. * * * Here is the issue in a nutshell: college tuition, just like government spending, is off the charts. Both are so high, that on an unlevered basis, the payback rate is N/M. Note the use of the world "unlevered" as it is one which will never occur, before the next systemic reset, when talking about anything involving the government. And what leverage does is mask true supply and demand. If college tuition was representative of real supply and demand, prices would be tumbling on average. Instead the easy access to student debt makes college seem quite affordable at any price point and thus there is no pressure to lower the equilibrium price. Which explains this chart, where the government-funded student debt surge is merely there to fill the needs of all those kids going to college, all of whom will never be able to pay it off especially as America increasingly transitions to a part-time worker society.
But at least they too, like their parents and grandparents, are indentured debt servants, just like the government wants. And to the perpetually wrong Bernanke, the thinking is that if more people are on the same wavelength as the US Treasury, i.e., so deeply in debt that everyone will be begging for a dollar devaluation and/or debt hyperinflation, then the Fed will be not only able, but encouraged to debase the US currency at will. Sadly, Bernanke is and always has been wrong, and when the student loan bubble does pop, and it will, the cost will once again fall squarely on the shoulders of that one nearly extinct species: America's middle class, which not only generates positive cash flow, but, gasp, saves a little money here and there. Make no mistake: they are squarely in Bernanke's bulls eye, and are slated for extermination at all costs. In a world in which everyone is broke and defecting from every game theory equilibrium possible, those who still play by the rules are the system's mortal enemies. In the meantime, we can't wait for Obama's next brilliant contraption: cash for flunkers.
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| Could Gold Be Tripped Up by a Coming Deflation? Posted: 08 Aug 2012 07:30 PM PDT by Jeff Clark, Casey Research:
In this interview, Jim talks about how the dollar affects gold prices. He discusses whether we are moving into a phase of deflation or inflation and gives his views on what exactly that will mean to gold investors. He discusses the likely impact of inflationary or deflationary forces, which one he believes will win out, and the effect it will have on our economy. Finally, he makes a very interesting prediction. Of course, any investor will tell you that deflationists and inflationists have been arguing for years. Each side has data to back up its claims, so investors end up none the wiser and non the wealthier. All the arguing simply causes confusion, and that invariably that leads to inaction. One thing they can't argue about though: A defining moment in the deflation versus inflation argument will present itself when our current overburden of debt finally blows up.
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| Posted: 08 Aug 2012 05:27 PM PDT By Jeff Nielson | Silver Gold Bull As few people in our societies even know, all of the world's governments have (foolishly) granted exclusive monopolies for the printing of all the world's currencies (our "money") to a cabal of privately-owned corporations called "central banks" – given that name because it is a cabal exclusively owned/operated [...] 
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| The Gold Price Rose $3.20 and Must Hold Above $1,600 Posted: 08 Aug 2012 04:54 PM PDT Gold Price Close Today : 1612.90 Change : 3.20 or 0.20% Silver Price Close Today : 2808.0 Change : 0.6 or 0.02% Gold Silver Ratio Today : 57.439 Change : 0.102 or 0.18% Silver Gold Ratio Today : 0.01741 Change : -0.000031 or -0.18% Platinum Price Close Today : 1409.70 Change : -0.70 or -0.05% Palladium Price Close Today : 586.55 Change : -1.65 or -0.28% S&P 500 : 1,402.22 Change : 0.87 or 0.06% Dow In GOLD$ : $168.87 Change : $ (0.23) or -0.13% Dow in GOLD oz : 8.169 Change : -0.011 or -0.13% Dow in SILVER oz : 469.22 Change : 0.15 or 0.03% Dow Industrial : 13,175.65 Change : 7.04 or 0.05% US Dollar Index : 82.22 Change : -0.095 or -0.12% If silver gainsaid gold yesterday, today gold gainsaid silver. The GOLD PRICE augmented $3.20 to end trading at $1,612.90, but silver diminished 6/10 cent to 2800c. They aren't so much rolling over as they are plumb dead stopped in the middle of the road. The two charts are virtually identical. The GOLD PRICE ceiling is at $1,615+ and silver's at 2825c. Long as gold holds above $1,600 and the SILVER PRICE above 2760c, they'll be okay. Just to inoculate y'all against complacency, remember that sometimes markets go flat because nobody is interested and it's August, but sometimes because the buying and selling forces are evenly balanced. Give one or the other a tiny foothold, and you get a big movement. Not likely right here, but possible, and worth looking over your shoulder for. In poker you generally draw cards to the most likely hand, that is, you don't draw to inside straights or straight flushes. Likewise, the overwhelming likelihood here is that we are simply watching August walk out its slow path as silver and gold build a platform for a big rally in September. I reckon everybody but the politicians has gone to the beach, or else they're all lying low in the house because it's so hot outside. Markets are dead. In Europe, August is vacation month, so nothing much ever happens there in August. When you have nothing to say, the best course is to shut your mouth to keep your empty foolishness trapped inside. Of course, being a natural born fool, I am not clever enough to do that, so I will comment anyway. Stocks today took a rest. Traded raggedly up and down all day, just wheel-spinning. After several trips above and below unchanged, Dow managed to cling to 7.04 points (0.05%) and close photogenically up at 13,175.64. S&P500 rose a mighty 0.87 (0.06%) to 1,404.22. Stocks are probably not stalling here, but only catching breath for another leg up, at least to this year's highs. That doesn't mean they have legs I want to dance with, just that stocks will rise to draw in a few more victims for the bear. US Dollar rose 16.4 basis points from where it traded this time yesterday. But at 82.384 it remains below the barrier left above at 82.50 over the last three days. Looks like it's aiming to take up a more humble seat. Japanese yen is trading in a tight little range. Rose 0.14% today to 127.43c (Y78.47). Forming a rounding top, it seems. If I were trying to salvage the euro, I think I'd just go ahead and get a new job. ECB Criminal-In-Chief Mario Draghi managed to lift it on a cloud of hot gas and empty promises from $1.2042 to $1.2442. Now the gas is floating away, and gravity is wreaking it's awaited vengeance. Euro lost 0.33% today to end at $1.2355. Unless it can (1) break through $1.2500, and immediately climb over $1.2750, the euro is, as they say in the oyster-canning business, way too ripe. LAST CALL for the Bodacious Hoedown: Saturday, 1 September 2012 from 1 pm to 9 pm we'll have an afternoon of field games, from Kiss the Pig to a dunk tank and tug of war. For supper we'll dine on our own Top of the World farm pork and chicken. After supper The Georgia Crackers, an old time band, will play and T-Claw will call the dances. Then we'll all dance in the grass till the stars get tired. It's all free. Even supper. My family has lost their minds. But there's one catch: you must let us know that you're coming. Send Justin an email at justin@the-moneychanger.com and tell him you're coming and with how many. Ask him for directions. We're about 2 hours south of Nashville and about 45 minutes north of Florence, Alabama. 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: Another Example Of Why Central Planning Is A Bad Idea Posted: 08 Aug 2012 04:47 PM PDT Submitted by Simon Black from Sovereign Man Another Example Of Why Central Planning Is A Bad Idea I've noticed something strange over the past few weeks, maybe you have too. It seems that every 'contrarian' website out there has joined together to collectively bash the Olympics and anyone who tunes in to watch. This seems nuts. Nobody should feel guilty for wanting to see athletes in peak condition push the boundaries of human performance. I certainly don't feel guilty about it. In fact I came to the UK several days ago specifically to catch some of the Olympics live. Unfortunately it turned out to be much more difficult than I had expected. As it turns out, the British government has centrally planned Olympic ticket issuance in a way that's so remarkably inefficient it would make Karl Marx look like Steve Jobs. There's only one way to buy London Olympic tickets– through the 'official' office that's controlled by the government. They've even solidified their monopoly by making it a CRIMINAL OFFENSE for individuals to resell Olympic tickets. The concierge at my hotel, an affable Italian named Paulo, explained to me that the police even came around to warn (i.e. threaten) him against helping hotel guests find tickets. Paulo directed me to the government's official website so I could buy tickets the legal way. I quickly found out how Byzantine it is– there are all sorts of ridiculous hoops to jump through; if you're a resident of the UK, you follow one procedure. If you're a resident of the EU, you follow another. If you're a resident of other countries, you follow yet another. Then after creating an online profile and giving them all sorts of personal information, they'll actually MAIL (i.e. snail mail) the physical tickets to the address you give them in your profile… and only to the address of your legal residency. It doesn't matter if you're traveling. The alternative is that you could spend a couple of hours going to one of the ticket offices, all of which seem to have been strategically chosen for being in the most inconvenient locations possible. Even if you can get through that maze, they've really screwed up their inventory management. Nobody seems to have any idea what tickets are available at any given time. An event may be 'sold out' at 10am, then have hundreds of seats available by noon. The government's central planning of Olympic ticketing has been a complete failure, perhaps best evidenced by the THOUSANDS of empty seats at many of the events. Annoyed beyond belief, I asked the concierge at my hotel if there were any alternatives. He said, 'maybe', told me to write down my phone number, and wait. Within a few minutes, my phone started ringing off the hook with calls from ticket brokers; since the government made it illegal for these guys to sell tickets, they've been pushed into dodgy underground boiler rooms for the past two weeks as if they're Prohibition-era bootleggers trying to move a shipment of hooch. Negotiating ticket prices with these guys, I couldn't believe we were talking about a sporting event… it seemed more like an arms deal. One guy asked me three times if I was a cop, and another refused to give me his phone number when I said I needed to call him back. Totally crazy. The government has managed to monopolize an entire industry and screw it up with Soviet-level inefficiency… then make it a criminal offense for the private sector to fix it.
This is typical of how a government operates. They take a very cavalier attitude because they don't care about results, they only care about maintaining control. As a result, they run their operations based on the premise that people really have no choice. With regard to Olympic ticketing, this is mostly true. My choice was either to go through the system legitimately (albeit painfully), deal with some dodgy backroom ticket broker at three times the price, or just watch it on television. In our regular lives, though, we do have a choice. A single government need not have a monopoly over our lives. As human beings, we are fundamentally free. We can choose where we live, where our money lives, where we pay taxes (and how much we pay), where to structure our companies, where to hire our employees, which regulations to adhere to, etc. You can hold your savings in one country, store gold in another, own property in another, have legal tax residency in another, live in another, have a business in another, etc. This is what I call planting multiple flags… essentially using the system against itself. And it is, by far, one of the most effective ways to take your freedom back and end your home government's monopoly over your life.
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| Posted: 08 Aug 2012 04:21 PM PDT As you can figure out, especially if you're a longtime reader, you had better have your stash of physical gold and silver. Furthermore, if you haven't noticed lately gold is on sale. The shiny stuff trades at a 17% discount to last year's highs. Today, with gold prices heading higher — $2,000, 3,000 or even $5,000 — holding the physical metal is more important than ever. That's why I want to make sure you know the ins and outs of the physical gold market. Consider this your entry level "101" college course on gold. Before we get to the specifics of holding physical gold, let's take a look at the reasoning behind this trend with a brief overview of gold's legacy… A Brief History of Physical Gold… Asset classes go up and down. Precious metals are, of course, another asset class. They move with the economic tides. In the past 30 years, gold has rocketed up and plummeted down. At several points in the past 30 years, things were so bad that gold sellers were like the prove...
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| China's “golden people” Posted: 08 Aug 2012 04:11 PM PDT Pete, the author of that article is not only a member of China's Central Committee, he is the general manager of the China National Gold Group Corporation, China's largest gold producer and the driving force behind its state controlled mining and refinery operations. In other words, this individual is in a position to articulate China's attitudes and policy toward gold, and that is what he does in this article. The translation is rough in parts but the meaning comes through loud and clear. He makes several important revelations in the article, and perhaps when I have more time I will review them in more detail. Most striking though are the differences between the way Chinese authorities view gold as opposed to the view of most Western policy-makers. For example, he refers to gold as "the cornerstone of global strategic resources." As such, he says, China needs to accumulate it as a national reserve — as part of national strategic policy. He points out that the U.S. gold reserve represents 70% of total currency reserves while China's gold represents only 1.6%. For years, we have heard that China is converting its domestic production to reserves, but that speculation has been no more than an educated guess. The author confirms it as China's strategy — to my knowledge the first time the strategy has been publicly confirmed by a Chinese authority. He talks about gold in national terms — about the making of China into a "gold power." He also expands upon and confirms China's strategy to encourage private ownership of the metal by Chinese citizens. As such, China joins Japan as a country that tacitly encourages gold ownership for its citizenry. He refers to gold accumulators as "golden people" and talks about guiding "people to a rational investment, a reasonable consumer." He mentions China Gold stores that "strengthen the brand promotion measures effectively to achieve the gold in China, possession of wealth to the people, the Gold strategic goal." "Practice," he says, "has proved that private gold reserves is an effective complement to national reserves, is very important for maintaining the country's financial security." Can you imagine an American or European economic policy-maker telling the citizenry to purchase gold as a "favorable opportunity" and characterizing private gold ownership as essential to "the country's financial security?" Here is the link to the Qiu Shi article. __________ In about two weeks, the all new third edition of my book, "The ABC of Gold Investing: How to Protect and Build Your Wealth With Gold," will be published by Addicus Books. Though this book contains some of the same elements that have made it a standard reference in the past for the beginning gold investor, it also explores some of what I consider to be the most important developments for gold going forward. Chief among them is gold's graduation to a national asset along the lines described in this Qiu Shi article and what it might mean to the gold market of the future. I believe gold's ascendance to a "wealth reserve tool" in both public and private portfolios as the singlemost important contributor to gold's future investment dynamics. In fact one of the concluding chapters of the new book is titled "Wealth Insurance" and it touches upon many of the same themes the author of this article raises. It is fundamentally important for the private owner of wealth to realize that he or she should own gold for the very same reasons that China owns it. Golden people! I couldn't think of a better appellation. Just as the author of this article suggests gold for China as a means to enhancing its "ability to deal with complex situations," so it should be acquired by the individual to allay the complicated economic scenarios likely to unfold in the years to come. __________ It just so happens that we launched our August Buyers Group a short while ago. Something worth looking into in light of the revelations in the Qiu Shi article linked immediately above. _______ If you have an interest in a signed copy of the new book, drop me a line at editor@usagold.com and we will start a list of "golden people" to contact when the first shipment of books arrives. Best, MK
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| Nick Santiago–The World Economic Soap Opera Just Goes On And On 08.Aug.12 Posted: 08 Aug 2012 03:10 PM PDT www.FinancialSurvivalNetwork.com presents Nick Santiago of www.IntheMoneyStocks.com joined us for a critique of the Fed and current economic policy. If you were expecting a big revelation from our last sit down, think again. According to Nick, "The Soap Opera goes on and on and on." There's no let up from the policies that got us into this catastrophe and there doesn't seem to be any one interested in reforming the system to avoid the mother of all melt downs. And it will, and soon. It won't be long either. Inflation is kicking up and it's seeping into all aspects of the economy. Which is why gold and silver are your best means of protecting your wealth and your sanity from the wealth destructors in government and banking. There's really no other choice! Go to www.FinancialSurvivalNetwork.com for the latest info on the economy and precious metals markets.
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| What the “Oil Floor” Means to You Posted: 08 Aug 2012 03:02 PM PDT August 8, 2012
Today, the Energy Department reported U.S. oil inventories fell 1% last week — rather more than the vaunted "expert consensus" that counted on a drop of 0.09%. Meanwhile, the "world" oil price, as measured by Brent Crude from the North Sea, has pushed above $112. Brent has made a significant move this month alone, adding to its gains since late June.
"Looking back," writes Byron King, "what caused the recent oil price swoon and recovery? Was there a big oil surplus in the late spring? Were there oil supply disruptions at the end of June? Were there any new demand developments? Well, you lived through those months too. What do you recall?"
"It's not as if rumors of war in the Middle East came true. Israel didn't attack Iran. Plus, there were no major weather events or disasters that impacted the oil sector. The tankers sailed. The sea lanes remained open. If you wanted oil, you could have bought it." So we can rule out "Mideast turmoil." What does that leave us?
"The news flow focused on ongoing issues within Europe, the China slowdown and the lack of momentum in the U.S. On the supply side, there was significant extra oil output from Saudi Arabia in the spring, leading up to the July 1 date for sanctions against Iran. "Looking back, future expectations controlled oil pricing, as opposed to the realities of production, transport and supply. That's expectations, and NOT any physical issues of supply and demand. "But those perceptions made for a $35 spread over just a couple months, from $125 to $90, and then back up. It's big money, considering that 'nothing' really happened."
Time to revisit a chart Byron shared in May, prepared by the French oil giant Total.
"Many oil-exporting nations need $90 or so to bring in enough income to balance their national accounts," Byron explains. "Absent $90 oil, some nations can't pay for food imports, let alone keep the army and secret police living in style. "Then there's the issue of 'finding cost' for oil. When you add up all the inputs, what does it cost most oil companies to locate new resources? Each company has its own set of books, of course, but the global average is in the $80-plus range to 'find' a new barrel of oil. So add in the return on investment and there's your $90 floor as well." With a floor under oil at $90, the companies Byron follows in Outstanding Investments are in good shape to weather any short-term moves in the oil price. If you're not following the advisory ranked No. 1 over the last 10 years by the independent Hulbert Financial Digest, you can get started today… and you don't have to watch a windy presentation, either.
We pay heed to the housing numbers from outfits like CoreLogic and RealtyTrac. They have paying clients who count on reliable data… which is more than you can say for the Commerce Department and the National Association of Realtors. Credit goes to a low inventory of properties for sale… and high demand for foreclosures. "The jump in home prices is particularly notable at the low end of the market, fueled by investors making all-cash offers for foreclosures that can be rented out," notes The Wall Street Journal. We'll pause briefly to brag on Chris Mayer, who's been telling his Capital & Crisis readers about the bargains in rental property for nigh 18 months. Last December, he pointed out in The 5 how in many markets it's now cheaper to buy than to rent. "In the post-bubble rubble," he said, "there aren't that many people with the kind of clean credit and cash that can afford to be investors in residential real estate. Nor is there much appetite for it. But there are plenty of people with good-enough credit and cash to rent."
On a recent trip to Hawaii, he visited a luxurious ranch, complete with a 95-year-old restored lodge. He also visited a massive shopping complex that will soon be home to high-end condos with some of the most impressive views on all five main islands. And he met up with the smart investors who picked up these properties for a song. This is one of Chris' treasure hunts these days: "world-class, unique and absurdly valuable real estate properties, which, because of these attributes, don't change hands all that often. The previous owners had financial trouble and had to part with them." Chris has five plays in Capital & Crisis with properties that fit this description. "They're creating wealth on the backside of the bubble." In fairness to his paying subscribers, we can't go into further detail. But you can join their ranks within minutes at this link.
Gold purchases in India jumped 35% in the first two months of this year, as Indians sought protection from rising prices. That was money the government would rather see plowed into "more-productive assets" — i.e., stocks and real estate. "The demand for gold worsens the current account deficit," says Finance Minister P Chidambaram. "Both the mutual fund industry and the insurance sector have turned sluggish. In the next few weeks, we will announce a number of decisions to attract more people to invest in mutual funds, insurance policies and other well-designed instruments." Well, at least the good people of India are getting advance notice…
Herewith, a Reuters account of the latest numbers: "U.S. consumer credit posted its weakest growth in eight months in June as Americans reduced credit card debt, a potentially negative sign for an economy that has struggled to create jobs." So… Americans are deleveraging. That's a good thing, climbing out of debt, or at least getting deeper in hock at a slower rate, right? Well, not from the standpoint of conventional wisdom: If Americans don't keep loading up on debt, at an ever-expanding rate, it's bad for "economic growth." Because, of course, borrowing and consumption are what make societies prosperous…
It was a happy end to a sorry saga, in which police paid him a visit at home after he was seen with his canvas across the street from a bank doing his thing. Then, he was not arrested. Now, it's a different story.
"Sidewalk chalk protests have popped up across the city in recent weeks," reports the Los Angeles Times, "as members of Occupy L.A. have used drawings to spread anti-gentrification messages." Schaefer, calling it "a great form of protest," proceeded to put his talents to work in front of a Chase branch — writing "crooks" and "chaos" to mimic the logo. For this, Schaefer was arrested and jailed for 12 hours. "As of now," Schaefer writes on his blog, "I have served more time in jail for chalking than all the financial sector CEOs, the crooked regulators, the lying ratings agencies, the enabling politicians COMBINED involved in this ongoing global financial theft of nations over the past 12 years."
Susan Mortensen copped a plea last week as protesters gathered outside the courthouse, leaving messages on the sidewalk… in chalk… saying, "Chalk is not a crime." We suspect Susan Mortensen's real crime was to give lip to the officer who cited her. She responded "with a bad attitude and curse words," according to one account. Lucky she didn't get tased…
"Although I appreciate his sentiment, I'd like to see the plan to get money out of politics. At this point, I at least have the appearance of a voice using my money. If money is taken out, I'm sure it won't be the big money of major corporations and special interest groups. It will be the small business voice or the individual voice that is taken out. "He should read a little more into the history of Teddy Roosevelt. He is the original Progressive, he felt that the gubment should decide how your spent your money. One of his more famous quotes, paraphrased: 'I don't begrudge a man his fortune, as long as he uses it properly for the advancement of society.' Or something like that. Didn't he start the movement to get senators elected by popular vote, instead of being chosen by state legislatures (17th Amendment, passed during Wilson)? That was a movement to get corruption and 'money' out of politics. What it actually did was put the final nail in the state's rights coffin. It concentrated power in Washington, instead of part of the power being at the state level. "What needs to happen is senators and congressmen should be forced to live and work in their state and district. Voting could be done by videoconference to ensure identity of the legislator. This forces your representative to be at home, where you can be in his office constantly, and forces lobbyists to spend the money to get someone to every district. For their lobbying to be effective, they will have to spend a great deal more money to get it done. I suspect it won't be nearly as worthwhile for them as having everyone in a nice little bundle in D.C." The 5: This editor is always amused by the notion of "getting money out of politics," and the misplaced outrage over the Supreme Court's Citizens United decision. If politics didn't hold so much sway over every aspect of life, politics wouldn't attract anywhere near the money it does!
The 5: Thank you for citing facts to buttress your case. Granted, "the 1%" is a charged phrase with malleable meaning. But it's telling when the phrase is citied by everyone from the Occupiers to — in the case of Monday's episode — Paul Craig Roberts, who's sometimes credited as the "father of Reaganomics." Clearly, he's referring to a government-connected oligarchy. "The military-security complex, Wall Street, agribusiness and the Israel lobby use the government to extract resources from Americans to serve their profits and power." It's big business: Total spending on the 2012 presidential campaign topped $1 billion in mid-July. What a waste. But for the well connected, the return on investment is incalculable… Cheers, Dave Gonigam The 5 Min. Forecast P.S. "People retiring today," says an Associated Press story, "are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire… "A married couple retiring last year after both spouses earned average lifetime wages paid about $598,000 in Social Security taxes during their careers. They can expect to collect about $556,000 in benefits if the man lives to 82 and the woman lives to 85, according to a 2011 study by the Urban Institute, a Washington think tank." Ouch. We pointed out years in advance that Social Security was going into the red. The piper is being paid, starting now. You can complain about how Congress has made a mess of things… or you can apply the same sort of income-protection measures they do. Details on how to get started here.
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| There Is More to Gold than Mere Capital Appreciation: John Hathaway Posted: 08 Aug 2012 02:42 PM PDT The Gold Report: John, you predicted $2,000/ounce (oz) gold prices. After rising to $1,900/oz last fall, the price has hovered at $1,500–1,600/oz much of 2012. What will cause it to take the next leg up? John Hathaway: There are several factors that I think will drive gold higher. On the monetary side, central bankers and treasury secretaries are bobbing and weaving, making it up as they go. They lack a comprehensive solution to the sovereign debt crisis in Europe, to the forces that are pulling the Eurozone apart or to the stagnation in the world's key economies. Ultimately, all of this will further debase the value of paper currency. More quantitative easing may also be on the table, and I have read a good deal about taking nominal rates to less than zero. That would mean people who have money in savings accounts would be charged a fee for keeping the money, as opposed to earning interest. It would not surprise me to see that evolve as a way to get all of these free reserves in th...
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| Gold Seeker Closing Report: Gold and Silver End Near Unchanged Posted: 08 Aug 2012 02:23 PM PDT Gold fell $8.20 to $1603.40 by a little after 8AM EST before it rallied to as high as $1616.49 in the next hour and a half of trade, but it then drifted back lower midday and ended with a gain of just 0.07%. Silver slipped to $27.699 before it rose to $28.246 by late morning in New York, but it then fell back off in afternoon trade and ended with loss of 0.32%.
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| Posted: 08 Aug 2012 02:20 PM PDT
The author suggested that gold plays a strong role in enhancing social and financial stability. China has been the world's largest gold producer since the year 2007. The article concluded by calling for a comprehensive national gold strategy to be designed and used to guide China into becoming a stronger country. [source] PG View: We're all well aware that China is already in full-on accumulation mode when it comes to gold. We've written on the topic many times over the past several years. But when a Central Committee magazine espouses development of a national strategy on gold, it confirms that their desire to build gold reserves in no short-term whim, but rather a long-term plan that will underpin gold prices for years, if not decades to come.
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| Gold Daily and Silver Weekly Charts - Cap and Coil, Cap and Coil Posted: 08 Aug 2012 02:14 PM PDT |
| Posted: 08 Aug 2012 01:57 PM PDT Richard Russell – Has A Massive & Historic Bubble in Bonds Popped?
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| Precious Metals Market Report – 8.9.12 Posted: 08 Aug 2012 01:49 PM PDT By Catherine Austin Fitts It's time for the Precious Metals Market Report. I will be speaking to you from the Michael Fields Agricultural Institute in Wisconsin and Franklin will be "on the farm" in Tennessee. We will review recent developments in the gold and silver markets, including the FDIC and Federal Reserve issuance [...]
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| There Is More to Gold than Mere Capital Appreciation Posted: 08 Aug 2012 01:02 PM PDT John Hathaway, senior managing director of Tocqueville Asset Management, does not particularly trust banks to keep stores of physical gold safe and segregated. Indeed, he considers his black lab Jake a better watchdog than the SEC. That is why he favors the SmartMetals program from Hard Assets Alliance, a new service launched in July.
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| Get Ready for the Gold Rebound Before It Is Too Late Posted: 08 Aug 2012 01:00 PM PDT While timing exactly when the rebound will happen is impossible, Marshall Auerback, director of Pinetree Capital, believes now is the time to pay the gold market renewed attention. In this exclusive Gold Report interview, he explains why the gold market is more interesting than in the recent past and shares what he would do if he were chairman of the Federal Reserve.
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| Definitive Primer On Gold/Silver Market Manipulation Posted: 08 Aug 2012 12:46 PM PDT "If I had to vote for Obama or Romney, I'd shoot myself" - Marc Faber For those of you who have not seen it yet, I'm posting the interview of GATA's Treasurer, Chris Powell, with Lauren Lyster of Capital Account. For those of you who were unaware, Capital Account is hosted by RT.com, and it does some of the finest truthseeker reporting in media land. Ms. Lyster interviews Mr. Powell regarding the ongoing gold and silver manipulation, likely being conducted by a few big bullion banks like JP Morgan on behalf of Governments/Central Banks seeking to control interest rates and currency exchange markets. As Chris points out clearly and with detailed references, agreements to manipulate the gold/silver bullion markets for controlling the currency exchange markets date back to the Gold Reserve Act of 1934, signed by FDR. As everyone likely knows, the "exchange stabilization fund" created by the Act was amended by Reagan after the 1987 market crash and enables the Government to intervene in any market at any time. By virtue of these facts alone, anyone who refers to market manipulation allegations as "conspiracy theory" is either completely ignorant of the facts or an interminable idiot. Market manipulation - and specifically gold and silver price suppression by the banks fronting for the Treasury/Fed - is part of the fabric of our system as legislated by Congress and signed by Presidents. Here is the interview, and I would urge anyone who has not done so yet to take the time to watch the full interview. Mr. Powell explains clearly, in detail and with source documentation references, how and why the Government manipulates the gold and silver markets: Anyone who takes the time to watch this video and then research the documentation cited by Chris - most if not all of it can be sourced at www.gata.org - will know more about how our financial markets operate than 99.5% of all humans. Certainly more than 100% of anyone who works at CNBC, Bloomberg or Fox Business. Like every other Governmental attempt to control the markets and rewrite the natural laws of economics, the price suppression of gold and silver will ultimately fail, sending gold and silver to price levels that will shock everyone except the hardiest of gold bugs, and thereby signalling the onset of extreme hardship, poverty and totalitarianism in this country. 
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| The Fiat Currency Bubble seals the euro’s fate Posted: 08 Aug 2012 11:41 AM PDT FGMR - Free Gold Money Report August 7, 2012 – Money should always be separated from politics. Germany learned this lesson the hard way, and the Allies wanted to make sure for everyone’s sake that history didn’t repeat. So when the Allies established in March 1948 the predecessor to the Bundesbank, the Bank deutscher Länder, it was completely independent of all German political bodies and influence. As [ame="http://en.wikipedia.org/wiki/Bundesbank"]Wikipedia[/ame] makes clear: “After the negative experience with a central bank subject to government orders, the principle of an independent central bank was established.” A central bank should be attuned to markets, not government dictates. The Bank deutscher Länder introduced the Deutsche Mark in June 1948, and so began Germany’s economic miracle. Following the sound money policies of its predecessor, the Bundesbank after its creation in 1957 made the Deutsche Mark one of the world̵...
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| Posted: 08 Aug 2012 11:36 AM PDT London Gold Market Report from Ben Traynor BullionVault Wednesday 8 August 2012, 06:45 EDT THE U.S. DOLLAR gold price hovered just below $1610 an ounce for most of Wednesday morning's trading in London – in line with last Friday's close – while stocks and commodities ticked lower and US Treasuries gained. The silver price dipped below $28 an ounce, although like gold, silver remains slightly above where it ended last week. "The gold price has been range trading for the past couple of months," says Commerzbank senior technical analyst Axel Rudolph, noting that the upper end of the range "is seen at the June $1641 peak". "There is a lack of momentum in the market," adds one dealer in Hong Kong. "Prices are unlikely to break above $1620 but falling below $1570 is also difficult. Many traders are more interested in watching the Olympics than trading." In India, which is experiencing a drier than usual monsoon, physical gold dealers continue to report subdued demand in wha...
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| Posted: 08 Aug 2012 10:48 AM PDT GATA's Chris Powell on the Silver Manipulation Probe & the Fed Gold Audit! Jim Sinclair's Commentary The following is the story of gold. Jim Sinclair's Commentary High frequency trading is electronic front running of retail bids and offers. Something that is illegal, but exchanges who are valued by volume simply love Continue reading In The News Today
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| Posted: 08 Aug 2012 10:48 AM PDT Home Price Recovery Will Take Longer Than Spring of 2013 CIGA Eric It will take a little longer than spring of 2013 for home prices to recover. Chart: U.S. Median Home Price (MHP) And MHP to Gold Ratio Headline: Home prices won't really recover until spring Even though home prices are rebounding in Continue reading Jim's Mailbox
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| Richard Russell - Has A Massive & Historic Bubble Popped? Posted: 08 Aug 2012 10:45 AM PDT  Today the Godfather of newsletter writers, Richard Russell, wrote about everything from gold, to Meredith Whitney's death threats, to one of the greatest bubbles in history. But first, Russell asks himself this very intriguing question: "Question -- Russell, everybody has emotions. So where are your emotions regarding this market? From an emotional standpoint, are you really bullish or bearish?"
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| Moment Of Exquisite Mogambo Revenge (MOEMR)! Posted: 08 Aug 2012 09:42 AM PDT In fact, every time I turn around, there more corruption, more theft, and always someone else not to trust, which is, I am sorry to say, always "par for the course" at the end of long monetary booms, where a continual flood of new government money, year after year, enticed more and more greedy people to commit corruption upon corruption, deal after deal, decade after decade, until the misshapen economy evolved into a big, nasty spider's web of debt, lies, thefts, blackmail and worse.
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The spot market cost of buying gold climbed to $1616 an ounce Tuesday morning in London, its highest level so far this week, as commodity prices and stocks markets also edged higher, with the exception of the FTSE which was hit by allegations that one London-listed bank has hidden "secret transactions" from US regulators.
Someone is leaning all over the precious metals market. It is hard to tell who and why and when it might stop, but history suggests that if these fellows lose control of it, the result could be impressive.
Yesterday, oil climbed above $93 a barrel. This morninkg, it's pushed past $94.
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