Gold World News Flash |
- Get Ready For An Epic Fiat Currency Avalanche
- Vermont Store Bans Pennies
- By the Numbers for the Week Ending September 14
- We Are Seeing Mounting Shortages Of Gold & Silver
- Elites Promote Pure Fiat Currencies – Mutual and Social Credit – for Traceability?
- Cartel CRUSHED By QE∞ – Commercials Added 11.8M Oz to Net Silver Shorts Prior to FOMC
- Silver Update 9/14/12 Public Enemy #1
- Bretton Woods III: With Announcement of Unending QE, a New Bretton Woods Is Upon Us
- Festive gold buying picks up in India despite record prices
- The Gold Price Closed $32.10 Higher this Week Closing on the Comex at $1,770.10 Silver Also Up
- BofA Sees Fed Assets Surpassing $5 Trillion By End Of 2014… Leading To $3350 Gold And $190 Crude
- 3 Reasons For A New Gold Rally
- BofA Sees Fed Assets Surpassing $5 Trillion By End Of 2014... Leading To $3350 Gold And $190 Crude
- Rosenberg: "If The US Is Truly Japan, The Fed Will End Up Owning The Entire Market"
- Silver Bull Seasonals 2
- Winds of Change Blow for Precious Metals Mining Stocks
- Podcast interview with Gonzalo Lira
- Casey Summit: How Investors Can Protect Themselves in a Politicized Economy
- Greyerz - Silver To Surge 433% From Current Levels
- John Burgos –”Northern Freegold Resources- A World Class Mine in the Making 14.Sept.12
- Gold and Silver Disaggregated COT Report (DCOT) for September 14
- Afghanistan's Natural Resources Could Spark Civil War
- Loose Money is Here Again (and Gold Stocks Love It!)
- Stocks Extend Gains But VIX/Credit Unimpressed
- The Bottom Line on Gold, the Dollar, and the Euro
- Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 2% and 3% on the Week
- Embry: Today's manipulations will prove to be bigger blunder than London Gold Pool
- Gold Daily and Silver Weekly Charts - So Far So Good
- Five Must-Haves for Junior Mining Companies
- COT Gold, Silver and US Dollar Index Report - September 14, 2012
| Get Ready For An Epic Fiat Currency Avalanche Posted: 15 Sep 2012 01:09 AM PDT  What is it that makes Keynesians so insanely self destructive? Is it their mindless blind faith in the power of government? Their unfortunate ignorance of the mechanics of monetary stimulus? Their pompous self-righteousness derived from years of intellectual idiocy? Actually, I suspect all of these factors play a role. Needless to say, many of them truly believe that the strategy of fiat injection is viable, even though years of application have proven absolutely fruitless. Anyone with any sense would begin to question what kind of madness it takes to pursue or champion the mindset of the private Federal Reserve bank…Quantitative easing has shown itself to be impotent in the improvement of America's economic situation. Despite four years of free reign in central banking, employment remains dismal in the U.S., the housing market continues its freefall, and, our national debt swirls like a vortex at the heart of the Bermuda Triangle. Despite this abject failure of Keynesian theory, the Federal Reserve is attempting once again to convince you, the happy-go-lucky American citizen, that somehow, this time around, everything will be "different". Sadly, as I discussed in August of this year, not only has the Fed announced a new and UNLIMITED round of stimulus measures, but the European Central Bank has also devised its own bond buying free for all: Read more....... 
This posting includes an audio/video/photo media file: Download Now |
| Posted: 14 Sep 2012 11:00 PM PDT [Ed. Note: Early in our country's history, the US Dollar had enough value to compel the US Mint to produce a half-cent denomination, which was a copper coin a little smaller than today's quarters. Stories like this illustrate the steady devaluation of our currency. First we lose our pennies, then we lose the nickel, then the dime, then the...] by Abby Ellin, ABC
That's because on September 1, owner Caleb Magoon, 29, stopped dispensing pennies when giving change. While the store will still accept the "outdated, outmoded, overpriced nuisance of coinage" from customers, "We're not actively using them," said Magoon. Instead, the company will round up to the nearest nickel in the customer's favor. So, if your anticipated change on a purchase is $1.26, the store will give you $1.30 in return. His reasons range from the micro–"I'm a small business with a few employees and we all work really hard and it's just one more thing to deal with"–to the macro."I think pennies are unnecessary on a larger scale," he said.
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| By the Numbers for the Week Ending September 14 Posted: 14 Sep 2012 10:48 PM PDT This week's closing table is just below.
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| We Are Seeing Mounting Shortages Of Gold & Silver Posted: 14 Sep 2012 10:18 PM PDT from KingWorldNews:
With gold on the move once again, today John Embry told King World News, "I'm still of the mind that we will be in record territory before year end." Embry also said, "We did our bit by buying another $392 million worth of gold for the Sprott Physical Gold Trust." Embry spoke about silver, "I'm wildly bullish on silver. I don't think the physical market has ever been this tight." Here is what Embry, who is Chief Investment Strategist at Sprott Asset Management, had to say: "I think the action is positive, but at the same time I'm infuriated by the continued interference with the markets by the powers that be. There is tremendous manipulation going on in both gold and silver right now. Two days before the QE announcement they dropped the price of silver about $1.50 in a nanosecond." Embry continues @ KingWorldNews.com
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| Elites Promote Pure Fiat Currencies – Mutual and Social Credit – for Traceability? Posted: 14 Sep 2012 10:16 PM PDT by Staff Report, The Daily Bell:
Analysts should also have financial investigatory/forensic accounting experience in non-traditional arenas including drug money laundering, Sharia-compliant banking, terrorist finance, informal and formal money transfer mechanisms (hawala), trade based value transfers, and parallel reconstruction. Knowledge of emerging alternative and mobile payment methods is also desired (Bitcoin, Secondlife, etc)." – Lockheed Martin/BrassRing Dominant Social Theme: Silvio Gesell and Major Douglas had it right. Pure fiat, paper and electronic, is the wave of the future. Just make sure you keep track of every transaction. Free-Market Analysis: It has been a puzzle to us why the United Nations would want to encourage alternative currencies and why there has been a surge of feedback comment on alternative websites about "usury" and the evils of interest. One after the other, websites and blogs have suddenly sprung up like mushrooms dutifully prating the idea that people should not be allowed to use interest, that gold and silver were entirely controlled by the Rothschilds (they are not) and that monopoly private banking was the duty of the government (God help us) not private "banksters."
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| Cartel CRUSHED By QE∞ – Commercials Added 11.8M Oz to Net Silver Shorts Prior to FOMC Posted: 14 Sep 2012 09:10 PM PDT Commercials sold off an incredibly massive -91 longs on the week and purchased a respectable -2,261 shorts to end the week with 46.13% of all open interest, and now stand as a group at 236,360,000 ounces net short, a MASSIVE … Continue reading
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| Silver Update 9/14/12 Public Enemy #1 Posted: 14 Sep 2012 08:58 PM PDT |
| Bretton Woods III: With Announcement of Unending QE, a New Bretton Woods Is Upon Us Posted: 14 Sep 2012 08:15 PM PDT from Silver Vigilante:
The system of rules, institutions, and procedures which came out of this meeting aimed at regulating the international monetary system, with the US leading the international organization. The central planners of Bretton Woods setup the International Monetary Fund, the International Bank for Reconstruction and Development, both of which are today part of the World Bank Group.
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| Festive gold buying picks up in India despite record prices Posted: 14 Sep 2012 07:45 PM PDT With the Ganesh Chaturthi celebration next week, where the elephant-headed God will be welcomed to most homes, Indian consumers are buying up large quantities of gold, to please the Gods and ready for the festivities ahead. by Shivom Seth, MineWeb.com
Boosted by the US Fed's stimulus package and buoyed by demand for the wedding season, gold prices climbed to a fresh record high in India. Gold rose 0.6% to $1,778 an ounce in Singapore – the highest traded level since February 29. In India, local buying by jewellers and stockists ahead of the marriage and festive season boosted sentiment. High prices notwithstanding, consumers in India are stepping into stores and purchasing gold coins and bars. Jewellers and retailers say sales across India have shot up by 10-20%.
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| The Gold Price Closed $32.10 Higher this Week Closing on the Comex at $1,770.10 Silver Also Up Posted: 14 Sep 2012 06:39 PM PDT Gold Price Close Today : 1,770.10 Gold Price Close 7-Sept : 1,738.00 Change : 32.1 or 1.85% Silver Price Close Today : 34.60 Silver Price Close 7-Sept : 33.63 Change : 0.97 or 2.88% Gold Silver Ratio Today : 51.15 Gold Silver Ratio 7-Sept : 51.68 Change : -0.53 or -1.81% From 7 September through 16 September Franklin Sanders will be away for a family vacation and won't publish a daily commentary during that time, but will return on 17 September. 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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| Posted: 14 Sep 2012 05:12 PM PDT 14-Sep (ZeroHedge) — Yesterday, when we first presented our calculation of what the Fed's balance sheet would look like through the end of 2013, some were confused why we assumed that the Fed would continue monetizing the long-end beyond the end of 2012. Simple: in its statement, the FOMC said that "If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability." Therefore, the only question is by what point the labor market would have improved sufficiently to satisfy the Fed with its "improvement" (all else equal, which however – and here's looking at you inflation – will not be). Conservatively, we assumed that it would take at the lest until December 2014 for unemployment to cross the Fed's "all clear threshold." As it turns out we were optimistic. Bank of America's Priya Misra has just released an analysis which is identical to ours in all other respects, except for when the latest QE version would end. BofA's take: "We do not believe there will be "substantial" improvement in the labor market for the next 1.5-2 years and foresee the Fed buying Treasuries after the end of Operation Twist." What does this mean for total Fed purchases? Again, simple. Add $1 trillion to the Zero Hedge total of $4TRN. In other words, Bank of America just predicted at least 2 years and change of constant monetization, which would send the Fed's balance sheet to grand total of just over $5,000,000,000,000 as the Fed adds another $2.2 trillion MBS and Treasury notional to the current total of $2.8 trillion. [source]
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| 3 Reasons For A New Gold Rally Posted: 14 Sep 2012 04:53 PM PDT September 14, 2012 [LIST] [*]Gold set for a repeat rally... Three factors propelling the "barbarous relic" to new highs... one analyst who got it right... [*]"Disorienting chaos" and the "threat of war"... chatter even among our uncomfortably unnamed sources causes concern... [*]Housing gauntlet laid down... what happens when our analysts disagree? Hmmmn... good question... we'll see! [*]Modern media, same dumb ideas... the gold standard "goes mainstream" and other monetary minutiae... "old dog, new trick" pays off in the options market... readers thank Dave Gonigam... and more! [/LIST] "History doesn't repeat... often," our resource referee Matt Insley wrote almost a month ago, "but if what I'm seeing is correct, we're set for an epic repeat run-up in the gold price. "The next move" he forecast at the time, "will vault the metal quickly to the $1,750 mark." We highlight his call for several reasons today. One to simply say "bravo." At...
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| BofA Sees Fed Assets Surpassing $5 Trillion By End Of 2014... Leading To $3350 Gold And $190 Crude Posted: 14 Sep 2012 04:44 PM PDT Yesterday, when we first presented our calculation of what the Fed's balance sheet would look like through the end of 2013, some were confused why we assumed that the Fed would continue monetizing the long-end beyond the end of 2012. Simple: in its statement, the FOMC said that "If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability." Therefore, the only question is by what point the labor market would have improved sufficiently to satisfy the Fed with its "improvement" (all else equal, which however - and here's looking at you inflation - will not be). Conservatively, we assumed that it would take at the lest until December 2014 for unemployment to cross the Fed's "all clear threshold." As it turns out we were optimistic. Bank of America's Priya Misra has just released an analysis which is identical to ours in all other respects, except for when the latest QE version would end. BofA's take: "We do not believe there will be "substantial" improvement in the labor market for the next 1.5-2 years and foresee the Fed buying Treasuries after the end of Operation Twist." What does this mean for total Fed purchases? Again, simple. Add $1 trillion to the Zero Hedge total of $4TRN. In other words, Bank of America just predicted at least 2 years and change of constant monetization, which would send the Fed's balance sheet to grand total of just over $5,000,000,000,000 as the Fed adds another $2.2 trillion MBS and Treasury notional to the current total of $2.8 trillion.
In other words, for once we actually were shockingly optimistic on the US economy. Assuming BofA is correct, and it probably is, this is how the Fed's balance sheet will look like for the next 2 years:
Or, in terms of US GDP, the Fed's balance sheet will have "LBOed" just shy of 30% of all US goods and services.
It gets worse: Since the Fed is effectively becoming the marginal player in both the MBS and Treasury markets, a very relevant question is how much private market debt is left to sell. Short answer: not much. According to BofA's calculation, the Fed will own more than 33% of the entire mortgage market by 2014. That's half the story. On the Treasury side, in just over 2 years, "Fed ownership across the 6y-30y portion Treasury curve is likely to reach about 50% by end of 2013 and an average of 65% by end of 2014." You read that right: in just over 2 years, the Federal Reserve will hold two thirds of the entire bond market with a maturity over 5 years (which by then will be part of the Fed's ZIRP commitment, yield 0% and essentially be equivalent to cash). No wonder that David Rosenberg is worried that the Fed will soon run out of securities to buy (well, there are always equities of course, but the Fed will not monetize those until some time in 2015 when hyperinflation is raging). And speaking of hyperinflation (and our earlier note that nothing "else is equal") the real question is if indeed the Fed will own $5 trillion in "assets" in 27.5 months, what does that mean for gold and crude? The answer is plotted below:
In case it is unclear, the answer is:
Luckily the Fed has already factored all these soaring input costs (and "alternative money" prices) in its models, and there is nothing to worry about. Lest we forget, the Fed can crush inflation cold in 15 minutes cold... somehow. Even when unwinding its balance sheet would mean sacrificing 30% of US GDP and, let's be honest about it, civil war. * * * That's it in a nutshell. Those who are interested in the nuances of the BofA analysis, which is a replica of our own, can read on below: The Fed Bazooka Given our growth forecast, we expect the Fed to follow up the expiration of Operation Twist with an open-ended outright Treasury purchase plan at the December meeting. We expect the pace could be between $45 billion (which would be equal to the current size of Twist) and $60 billion/month for two years [in 10 year equivalents]. We expect a long program given the slow improvement in the labor market as well as the Fed's focus on a "substantial and sustained improvement" in the employment situation. Table 2 compares different asset purchase programs by the Fed in terms of the net notional and duration take-out. Were the Fed to engage in renewed Treasury purchases post the end of Twist (in the same maturity distribution), this could easily become one of the largest programs in terms on monthly 10y equivalent demand from the Fed. Note that even MBS buying takes duration out of private hands, which would put downward pressure on rates Mortgages: Fed buys most of monthly issuance We estimate that Fed purchases will take out about 60% of monthly MBS production. However, our mortgage strategists note that historically the Fed has concentrated its buying in 30y conventionals. For example, in August the Fed bought $23bn of conventional 30s, $2.5bn of conventional 15s and $3bn of GNs. This compares with gross issuance at $122bn, which is split into $88bn in conventionals ($66bn in 30s, $22bn in 15s) and $34bn in GNs. In other words, the Fed has concentrated 80% of its purchases among conventional 30y. A similar pattern would suggest that the Fed would buy an additional $30bn in this sector, which could end up being almost 90% of all issuance in conventional 30y. This explains the significant tightening in the mortgage basis, and would argue for the Fed to buy some other sectors as well. In terms of outstandings, we expect the Fed to end up owning more than 33% of the total market by the end of 2014, which is also significant since many mortgage investors tend to reinvest paydowns. These investors would need to be persuaded to sell MBS to the Fed, which would require tighter spreads. Treasuries: Fed will own a 45-50% in the long end in a year Given our growth forecast, we expect the Fed to follow up the expiration of Operation Twist with an open-ended outright Treasury purchase plan at the December meeting. We estimate further what the potential ownership of the Fed could look like in the Treasury market over the course of the next two years. We assume that: 1) Purchase sizes are in the same distribution as Twist, sans the sales; 2) Treasury coupon auction sizes remain constant; and, 3) The Fed does not change the 70% per issue maximum SOMA limit.
Table 3 and Table 4 simulate the Treasury universe during the course of 2013 and 2014. Fed ownership across the 6y-30y portion Treasury curve is likely to reach about 50% by end of 2013 and an average of 65% by end of 2014. Given the current issuance schedule, we believe it is very likely that the Fed changes its purchase buckets through the next round of Treasury purchases. In particular, the Fed will begin to run out of issues in the 8y-10y bucket and will be forced to buy newly issued 10y notes should they choose to maintain the same distribution. We believe this is unlikely, and that the Fed is likely to redistribute its purchases and possibly include the 5y portion of the curve to provide some room.
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| Rosenberg: "If The US Is Truly Japan, The Fed Will End Up Owning The Entire Market" Posted: 14 Sep 2012 04:15 PM PDT David Rosenberg, Gluskin Sheff: BernanQE Plays With A New Deck
It would be glib to ask "well, wasn't QE3 priced in?" What the Fed did was actually much more than QE3. Call it QE3-plus... a gift that will now keep on giving. No maximum. No time limit. The Fed also lowered the bar on what it will take, going forward, for even more intervention. The Fed announced that it will buy $40 billion per month in MBS (together with the on-going Operation Twist program, this brings total asset purchases to around $85 billion monthly through year-end), but the press statement contained an open-ended commitment to QE until labour market conditions not only improve, but do so 'substantially". This is a radical shift. Before, the QEs had an explicit maximum limit in magnitude duration. That is no longer the case — $40 billion in MBS buying month in, month out, perhaps until such time that the Fed owns the entire market (the Fed already has $843 trillion of Agency MRS on its balance sheet as it is — if this is truly Japan and it takes another ten years for the economy to improve "substantially", the Fed will end up owning the entire market).
The payroll data always move the market but now more than ever and the Fed's explicit goal of generating "substantial" improvement in the jobs market will ensure that this 'bad news is good news' psychology will remain fully intact (why the stock market so easily managed to shrug off last week's data - this new normal of bad news being good news is now going to be more fully entrenched for the market). And with the Fed targeting mortgages, it is clear that it views housing as the transmission mechanism for its objective of strengthening the jobs market. So each housing indicator going forward is also going to very likely elicit a stronger market reaction than normal - remember, because the stock market is addicted to QE, weak data can still be expected to be supportive. A notable improvement in the data will be even more supportive because the Fed will still keep the hope alive of more QE even if economic conditions get better. I have to stress this but anything less than "substantial" is just not going to cut it for the Fed - I don't know how that is defined numerically, but if the economy and specifically the jobs market does not go gangbusters, more QE can be expected. And it won't always be in MBS - the Fed came right out and said that it will also "undertake additional asset purchases and employ other tools as appropriate until such improvement is achieved in the context of price stability". That reference to "price stability" is a bit comical because in the prior rounds of unconventional stimulus: market-based inflation expectations (from the TIPS market) were sub-2% and falling. Going into today's meeting, they were 2.6% and rising. This, for a central bank that spent an inordinate amount of time talking about how important it was to prevent inflation expectations from becoming unhinged when it was busy tightening policy in the 2004-2006 rate-hiking cycle. The times, they are a changin' (in other words, the price stability objective has a big fat R.I.P. on its tombstone). This is why gold swung from a moderate decline to a huge gain yesterday afternoon, and the DXY is breaking. It is clear that out of its dual mandate, a lower unemployment rate right now clearly trumps any concern over higher inflation expectations (whether justified or not). Equities have ripped to the upside. Commodities are bid. Gold has broken out. The U.S. dollar is sliding. Yet the bond market refuses to buy in. The yield on the 10-year note has remained stable through this entire dramatic response to QE3 (and pledges for more). The Fed announced that it was buying mortgage-backed securities, not Treasuries, so it is curious as to why the bond market is not selling off dramatically. I can count numerous Fed meeting days when the stock market rallied sizably and bonds sold off alongside the reflationary view. I recall all too well the June 26, 2003 FOMC meeting when the Fed cut rates for the last time in that cycle and told the market it was on its own because the economic clouds had finally parted. The Dow ran up more than 100 points from the intra-day low that session and the 10-year note yield jumped 17 basis points, basically ratifying the view of the equity market at the time. But this time around, the Treasury market remains the odd man out on this new pro-growth view evident in the pricing of other asset classes. For any perma-bull out there, Mr. Bond is like having a mosquito in your ear on the putting green. So from a markets standpoint, let's talk about what all this means.
I don't think this latest Fed action does anything more for the economy than the previous rounds did. It's just an added reminder of how screwed up the economy really is and that the U.S. is much closer to resembling Japan of the past two decades than is generally recognized. Maybe in the central bank world of the "counterfactual" these QEs prevent a worse outcome but the most radical easing in monetary policy ever recorded has not stopped this post-bubble-bust American economy from posting its weakest recovery ever whether measured in real, nominal or per capita terms. The economy is saddled with too much debt, a shortage of skills, bloated government, an uncertain tax rate outlook, the costs associated with Obamacare, banking sector re-regulation and a spreading European recession. Home prices may have revived of late, but there are still an amazing 22% of debt-ridden homeowners who are upside-down on their mortgage. Monetary policy is best equipped to deal with the vagaries of the business cycle but is a blunt way to deal with deep structural, fiscal and regulatory hurdles. QE has done squat for the economy and I don't expect that to change. Even the Fed cut its 2012 real GDP growth projection for this year to 1.85% from 2.15% - for a year when typically growth is closer to 4% - and so the bump-up in 2013 to 2.75% from 2.5% has to be viewed in that context (in fact, it would seem as though for all the bluster, the level of real GDP is actually lower now at the end of next year compared to the pre-QE3 forecast... maybe this is what the Treasury market has latched on to). It would seem as though the Fed's macro models have a massive coefficient for the 'wealth effect' factor. The wealth effect may well stimulate economic activity at the bottom of an inventory or a normal business cycle. But this factor is really irrelevant at the trough of a balance sheet/delivering recession. The economy is suffering from a shortage of aggregate demand. Full stop. Perhaps most importantly, in order for the Fed's action to have a lasting impact on the direction of the equity market, it must foster at least some significant belief that the action will lead to self-sustaining economic expansion. The scars of real family median income declining for two years in a row - the Fed's action in a perverse way perpetuates this by forcing essential basic material prices higher - and an unprecedented five-year decline in household net worth are lingering, and exerting far more powerful dampening effect on spending and confidence than the Fed's repeated attempts to generate risk-taking behaviour. To the extent that the Fed is at least temporarily successful in nurturing a risk-on trade for portfolio managers, the reality is that changing the relative prices of assets does not create demand.
It just perpetuates the inequality that is building up in the country, and while this is not a headline maker, it is a real long term risk for the health of the country, from a social stability perspective as well.
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| Posted: 14 Sep 2012 04:14 PM PDT Silver is mined year-round at a fairly constant rate across the globe. Thus it is somewhat counterintuitive that this metal would exhibit marked seasonal tendencies tied to the calendar. But it sure does. Read More...
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| Winds of Change Blow for Precious Metals Mining Stocks Posted: 14 Sep 2012 04:02 PM PDT Yesterday gold was little changed before the key Federal Reserve policy decision, a day after a German court ruling in favor of a euro zone rescue fund. The decision centered on challenges to Germany's participation in the 500 ... Read More...
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| Podcast interview with Gonzalo Lira Posted: 14 Sep 2012 03:47 PM PDT Yesterday I interviewed Gonzalo Lira, of gonzalolira.blogspot.com. He also runs his Strategic Planning Group at http://www.liraspg.com/ I was particularly looking forward to this, because Gonzalo is of Chilean origin and has family tales of the Allende economic destruction and currency collapse. At the moment Gonzalo is living in Germany, so had some interesting observations on the European crisis. The podcast is long, but I hope you find it interesting. You can find the podcast here: or here: https://www.youtube.com/watch?v=CqccIXw8Uh4 Regards Alasdair Macleod Head of research, GoldMoney Mob: 07790 419403 Twitter @MacleodFinance 
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| Casey Summit: How Investors Can Protect Themselves in a Politicized Economy Posted: 14 Sep 2012 03:27 PM PDT The Gold Report: Before we get into some of the nitty-gritty from the summit, could you give us a big picture of the troubled economic waters we'll have to navigate if we want to stay afloat? Louis James: When we said "Navigating the Politicized Economy," we weren't just talking about regulatory burdens but also about the overall response of governments around the world to the crisis that we've been calling for many years. That's the context. It's about how the world is responding to crisis. The response is political and very feelings-driven. It's not a rational or scientific way of optimizing outcomes. It's political, which means pandering to voters, which means doing whatever the larger number of usually less-informed people want as opposed to whatever science or engineering may determine is an ideal way to approach the issue. That's scary. How you deal with that is more of a philosophical than an engineering question: how do you personally plan your life, given a world in which eve...
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| Greyerz - Silver To Surge 433% From Current Levels Posted: 14 Sep 2012 03:08 PM PDT  Today Egon von Greyerz told King World News that silver is going to surge a remarkable 433% from current levels. Greyerz, who is founder and managing partner at Matterhorn Asset Management out of Switzerland, also said the move in silver could take place, "... in the next twelve months." Here is what Greyerz had to say: "Gold is now up 13% this year after having been up 19% compound annual growth in the last ten years. Gold is going up every year, paper money has been going down, and that will continue because of the amount of money printed."
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| John Burgos –”Northern Freegold Resources- A World Class Mine in the Making 14.Sept.12 Posted: 14 Sep 2012 03:04 PM PDT www.FinancialSurvivalNetwork.com presents John Burgos had 18 years of Wall Street experience. Much of that involved helping resource companies obtain financing for viable projects. He came to Northern Freegold after analyzing the company and concluding that it was extremely undervalued. So far its drilling program appears to be showing world-class reserves of gold, copper and molybdenum, with some silver and tungsten thrown in too. But exploration of this huge property has hardly even begun and there could be much more lurking beneath the surface. Go to www.FinancialSurvivalNetwork.com for the latest info on the economy and precious metals markets.
This posting includes an audio/video/photo media file: Download Now |
| Gold and Silver Disaggregated COT Report (DCOT) for September 14 Posted: 14 Sep 2012 02:58 PM PDT HOUSTON -- This week's Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report was released at 15:30 ET Friday. Our recap of the changes in weekly positioning by the disaggregated trader classes, as compiled by the CFTC, is just below. In the DCOT table above a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting "longer" and red figures are traders getting less long or shorter. All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report. Vultures, (Got Gold Report Subscribers) please note that updates to our linked technical charts, including our comments about the COT reports and the week's technical changes, should be completed by the usual time on Sunday (by 18:00 ET). That is all for now, except to show the chart for Managed Money Trader's short positions for silver. Those who have been following our commentary (see the most recent video update from late August here) ... will understand instantly the significance of it. Remember back in July, when we were pounding the table that the high Spec short position for silver was "about as bullish as it gets" and "if silver managed to break out above the flag consolidation we could be in the beginning stages of the "MOABO of the MOAMPC?" Here is a link to a September 6 piece which reminded of it. http://www.gotgoldreport.com/2012/09/silver-making-a-play-for-the-moabo-of-the-moampc-.html Bingo!
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| Afghanistan's Natural Resources Could Spark Civil War Posted: 14 Sep 2012 02:55 PM PDT It is estimated that Afghanistan contains reserves of natural resources, such as oil, gold, iron ore, copper, lithium, etc., which could be worth trillions of dollars, and offers hope for the future to many of the country's poor ... Read More...
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| Loose Money is Here Again (and Gold Stocks Love It!) Posted: 14 Sep 2012 02:36 PM PDT Stock and commodity prices across the board soared on the latest announcement from the Fed, which was viewed as wildly bullish by Wall Street. The Federal Reserve launched another aggressive stimulus program on Thursday ... Read More...
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| Stocks Extend Gains But VIX/Credit Unimpressed Posted: 14 Sep 2012 02:29 PM PDT Despite a last minute surge (as stock indices lurched from their day-session open to closing VWAP levels), US equity markets extended gains but basically slid lower once Europe had closed. The day session opened gap higher as Europe extended (though Spanish debt slumped) and rushed out of the gate to new multi-year highs only to stumble on high volume and large block size into the European close. Also notable that VIX - which had tracked stocks from the QE3 announcement, began to push higher as stocks 'capitulated' up in the high 1460s and then stocks rolled back downhill for the rest of the day. VIX ended the day up 0.5vol at 14.5% while ES closed up 8pts. Equity sectors have split into 3 groups from the FOMC statement - Materials/Energy/Financials +~3.5%, Industrials/Discretionary/Tech +~2%, and Healthcare/Staples/Utilities +~0.5%. The USD lost 1.65% on the week (EUR +2.3% and JPY -0.18%) as Treasuries saw some vol but were basically one-way street with the long-bond +26bps, 10Y +20bps, and 5Y +6bps. Commodities outperformed USD-implied moves with Oil/Silver/Gold all up around 2-3% on the week - while Copper surged overnight to gain just under 5% on the week. Credit markets were less exuberant than their tracking stocks yesterday with HYG ended the day red.
S&P 500 e-mini futures surge out of the gate (from the US open) and were sold into by some bigger volume blocks... we fell to lows of teh day - which were the opening day-session level and then pushed up to VWAP to close neatly...
Protecting Gains? VIX notably underperformed today and stocks felt pressure once the retail orgasm hit this morning (and some capitualtive volume ran through into the European close)...
but sectors seems extremely trifurcated...
FX markets were very dispersed bythe end of the week with EUR winning and JPY losing (as carry trades were extended)...
but commodities outperformed the inferred USD weakness - with Copper spurting overnight...
Treasuries were prety uch offered all week - with some vol in the last two days but between inflation prints and risk-on, it was hard to keep rates down - even for the great Oz...
which we note saw rates moving as much as MBS spreads compressed - kinda removing a lot of that 'this is for main street - housing is saved - low mortgage rates' chitter chatter we were fed.
Risk assets in general played catch up overnight with further FX carry strength and Treasury weakness dragging CONTEXT (our risk-asset proxy) up to Stocks. Correlation resurged and risk and stocks generally tracked well - though the end day push in Stocks seemed more about bouncing from S&P 500's day-session open to its VWAP and CONTEXT than any real buying pressure (and in fact - the deltas - based on bid-side vs offer-side - suggest this more selling into the pump than buying but who knows anymore...)
Charts: Bloomberg and Capital Context
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| The Bottom Line on Gold, the Dollar, and the Euro Posted: 14 Sep 2012 02:18 PM PDT By Louis James, Casey Research One of the points we've made several times over the last year is that traders stuck in an old paradigm are frequently selling gold for the wrong reasons. The most egregious (or just plain silly) example is that gold often drops when the euro drops. This happens, not because there's [...]
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| Gold Seeker Weekly Wrap-Up: Gold and Silver Gain About 2% and 3% on the Week Posted: 14 Sep 2012 02:16 PM PDT Gold climbed $11.05 to $1777.35 in Asia before it fell back to $1765.70 in early New York trade, but it then bounced back higher midday and ended with a gain of 0.3%. Silver rose to $34.91 before it fell back to $34.281 and then also bounced back higher, but it still ended with a loss of 0.06%.
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| Embry: Today's manipulations will prove to be bigger blunder than London Gold Pool Posted: 14 Sep 2012 02:05 PM PDT 4:04p ET Friday, September 13, 2012 Dear Friend of GATA and Gold: Sprott Asset Management's John Embry couldn't be more bullish about the monetary metals and their miners -- nor more aggravated about the continuing manipulation of all markets by central banks. "All the manipulation is doing," Embry tells King World News today, "is creating wonderful buying opportunities for the Chinese, the Russians, and the rest of the central banks that know full well what's going on. In the fullness of time, this group of manipulators will be seen to have eclipsed the blunders and the folly of the original London Gold Pool." For a good report on the original London Gold Pool, visit Wikipedia here: http://en.wikipedia.org/wiki/London_Gold_Pool For a good report on the current London Gold Pool, see GATA board member Adrian Douglas' 2010 study here: An excerpt from the latest King World News interview with Embry is posted at the KWN blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/14_Em... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold Longtime GATA supporters Fred Goldstein and Tim Murphy have brought their many years of experience in the precious metals and numismatic coins to All Pro Gold as metals brokers who specialize in the delivery of gold and silver bullion bars and coins as well as numismatic gold and silver coins. Fred and Tim follow these markets closely and are assisted by a team of consultants in monitoring market trends. All Pro Gold offers GATA supporters competitive pricing on all bullion products and welcomes inquiries. Tim can be reached at 602-299-2585 and Tim@allprogold.com, Fred at 602-799-8378 and Fred@allprogold.com. Ask about their ratio strategy and the relationship of generic $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at http://www.allprogold.com/. 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 Special Offer for GATA Supporters from The Calandra Report Financial journalist Thom Calandra, co-founder of MarketWatch.com and a longtime GATA supporter, has revived his weekly market letter, The Calandra Report, which is aimed at believers in natural resources and metals equities. His three recommended stocks so far -- prospectors in Nevada, Portugal, and Colombia looking for gold, silver, copper, and tungsten -- have risen since his recommendation, and he is traveling throughout the world to research more recommendations. Through Sept. 22 the TCR's subscription price is $48 per year and during that time Calandra will donate to GATA $5 for every GATA supporter who subscribes. After that the TCR's subscription price will rise to $54. Calandra will join GATA's Bill Murphy and Chris Powell at the Toronto Resource Investment Conference on Thursday and Friday, Sept. 27 and 28 -- http://cambridgehouse.com/event/toronto-resource-investment-conference-2... -- and at the New Orleans Investment Conference from Wednesday through Saturday, Oct. 24-27: https://jeffersoncompanies.com/new-orleans-investment-conference/home For a sample of a recent edition of The Calandra Report and to subscribe, please visit: http://www.babybulls.com/index.cfm/page/THE-CALANDRA-REPORT:-AUGUST-26,-...
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| Gold Daily and Silver Weekly Charts - So Far So Good Posted: 14 Sep 2012 02:02 PM PDT |
| Five Must-Haves for Junior Mining Companies Posted: 14 Sep 2012 02:00 PM PDT Valuation disconnects among producers, rising gold price and juniors facing funding crunches are among the factors fueling a spate of M&A activity. In her first exclusive Gold Report interview, Aleksandra (Sasha) Bukacheva, a mining research analyst with Fraser Mackenzie in Toronto, shares her criteria for targets in the zinc, copper and precious metals spaces.
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| COT Gold, Silver and US Dollar Index Report - September 14, 2012 Posted: 14 Sep 2012 01:33 PM PDT COT Gold, Silver and US Dollar Index Report - September 14, 2012
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What's a penny worth these days? At Power Play Sports, a sporting goods shop in Morrisville, Vermont, not much.
The Bretton Woods System established the new, post Second World War rules for commercial and financial relations between the world's major industrial states and periphery nations in the middle of the twentieth century. The First Bretton Woods system represented the first totally planned monetary order made to govern the global money supply. It resulted in a centralization of world power, supremely seated in Washington D.C. It's incipience starts before the end of the Second World War, as 730 delegates from all 44 Allied nations met in Bretton Woods, New Hampshire for what was called the United Nations Monetary and Financial Conference.
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