Gold World News Flash |
- Will The Election Results Cause Massive Riots To Erupt All Over America?
- Freudian Glitch – Or Sign of Things to Come? COMEX Futures Lists Silver at $34,000/oz, Gold at $17,700/oz
- 'Commercial signal failure' possible in gold, Embry tells King World News
- The Next 500 Years: Japan’s Masayoshi Son Goes Darwin
- Gold Content to Range Quietly for Now
- Embry - This War In Gold & Shorts Getting Overrun
- The $2 Trillion European Bailout Package Is Coming
- We Are On The Road To Serfdom
- More People Ask ‘How Do You Buy Silver?'
- Eric Sprott will keynote 10th annual Silver Summit in Spokane Oct. 25-26
- No solution for nations but investors can protect themselves, GATA chairman says
- Gold Seeker Closing Report: Gold and Silver End Near Unchanged Again
- Occupy Wal-Mart?
- The Gold Price Closed Up and Silver Down is Gold Consolidating?
- China, Japan, Taiwan and US: Four to Party in Diaoyutai
- Channel Resources is Vulture Bargain #17- One Million Golden Ounces for a Lotto Tickey Price
- Gold Daily and Silver Weekly Charts - Negative Real Yields Are Good for Gold
- 4 Facts Every GLD Investor Must Know
- Hacking Our Way to a Better Future
- Guggenheim on Gold: The "Return to Bretton Woods"
- LGMR: Gold Bounces Back after Spanish Ratings Cut, Investors "Still Confident in Gold" but Fresh Buying "Not Seen on Monetary Policy Alone"
- Turk sees paper gold sellers losing in short squeeze soon
- Gold Bounces Back after Spanish Ratings Cut
- POSSIBLE PROFIT-TAKING EVENT IN PROGRESS
- S&P Downgrades Spain’s Credit Rating Two Notches
- A Good Time For Gold and Silver
- Another thoughtful speculation on a huge upward official revaluation of gold
- The wonder is that he’s not already president of the New York Fed
- Gold suppression researcher Dimitri Speck interviewed by Lars Schall
- Norcini sees central bank support for gold, rise above $1,800
| Will The Election Results Cause Massive Riots To Erupt All Over America? Posted: 11 Oct 2012 11:30 PM PDT from The Economic Collapse Blog:
Read More @ TheEconomicCollpaseBlog.com
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| Posted: 11 Oct 2012 11:05 PM PDT from Silver Doctors:
The misquoted prices reflect a 1:2 price ratio with silver being 2x as valuable as gold. Was somebody trying to communicate the fact that future gold to silver value ratio will go from 50:1 to 1:2, with silver prices rising 100 times faster than gold's? SD reader Plebian asks: A 'glitch' in futures prices this morning showed charts with gold price quoted at $17,700/oz and silver at $34,000/oz. Questions:
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| 'Commercial signal failure' possible in gold, Embry tells King World News Posted: 11 Oct 2012 10:47 PM PDT 12:45a ET Friday, October 12, 2012 Dear Friend of GATA and Gold: Sprott Asset Management's John Embry today tells King World News that he's beginning to think that a "commercial signal failure" -- the overrunning of the major traders -- could be near in gold, as Eastern buyers of real metal are taking delivery on whatever paper price dumps the Western market riggers are willing to give them. An excerpt from Embry's interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/12_E... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum Intercepts Best Pt+Pd+Au Grades Yet Company Press Release VANCOUVER, British Columbia -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces more results of its 2012 drill program on the company's fully-owned Wellgreen platinum group metals, nickel, and copper project in southwestern Yukon Territory, Canada. Four surface holes and four underground holes all intercepted significant mineralized widths, ranging from 28.5 meters (WS12-201) and up to 459.5 metres (WS12-193). Highlights include WU12-540, which returned 8.9 metres of 5.36 grams per tonne platinum, palladium, and gold; 1.73 percent copper; and 1.01 percent nickel within 304.5 meters of 0.66 g/t platinum-palladium-gold, 0.20 percent copper, and 0.27 percent nickel. The surface drill program started in June and has completed 16 holes (assays pending for 12 holes) with two rigs now on site. The surface program continues to progress at a steady pace. Prophecy Chairman John Lee commented: "Wellgreen is a very large nickel, copper, and platinum group metals project with near-surface high-grade zones. High-grade intercepts will be incorporated into resource modeling and mine planning in the pre-feasibility study. We expect further positive drill results from Wellgreen shortly." Wellgreen features a low 2.59-to-1 strip ratio, is situated at an altitude of 1,300 meters, and is only 15 kilometers from the two-lane paved Alaska Highway. Those factors significantly minimize the project's indirect costs. For the complete company statement with full tabulation of the drilling results, please visit: http://prophecyplat.com/news_2012_sep11_prophecy_platinum_drill_results.... Join GATA here: New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT GoldMoney adds Toronto vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, and the United Kingdom, GoldMoney customers now can store their gold and silver in a high-security vault operated by Brink's in Toronto, Ontario, Canada. GoldMoney also has recently partnered with Rhenus Freight Logistics to offer another gold storage option in Switzerland. The Rhenus vault is in the secured zone of Zurich Airport and offers customers superb security as well as the ability to inspect their gold. Storage at the new vaults in Canada and Switzerland is available at GoldMoney's lowest fees. Customers can select their storage location when placing their buy order. GoldMoney customers can take delivery of any number of gold, silver, platinum, and palladium bars from any GoldMoney vault, as well as personally collect their bars stored in the Hong Kong, Switzerland, and U.K. vaults. It's easy to open an account, add funds, and liquidate your investment. For more information, visit: http://www.goldmoney.com/?gmrefcode=gata
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| The Next 500 Years: Japan’s Masayoshi Son Goes Darwin Posted: 11 Oct 2012 10:30 PM PDT from Silver Vigilante:
Masayoshi Son laid out in Darwinian episteme a 300-year business plan that would ensure his Tokyo-based Softbank would tower. But first, in his comparison of business to living species, he vowed that Softbank would continue to exist after the next 30 years, during which 99.98 percent of companies would cease to exist in their current composition. What are some the US's keystone companies doing to ensure their survival over the long term? Well taking annual doses of taxpayer money, depending on a growing US state and continuing US imperialism. It was the dope they've been smoking for essentially the last 100 years, and its a high US business hopes to enjoy for probably the next 100 years.
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| Gold Content to Range Quietly for Now Posted: 11 Oct 2012 10:04 PM PDT courtesy of DailyFX.com October 11, 2012 02:31 PM Daily Bars Prepared by Jamie Saettele, CMT “A previously rare occurrence has popped up 3 times since June. That is, gold has traded in a double inside day AFTER an outside day. Before June, one had to look back to 2009 to find this pattern. The pattern is a function of volatility contraction and the plethora of orders on each side of the narrow range is conducive to false breaks. Gold rallied to a new and has pulled back in order to satisfy the false break.” The piercing of the October low triggers a bearish bias against the high but failure to sustain the intraday drop leaves me neutral. Until the market shows its hand, there won’t be much to comment on. LEVELS: 1736.05 1750.90 1756.80 1791.49 1802.80 1819.05...
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| Embry - This War In Gold & Shorts Getting Overrun Posted: 11 Oct 2012 10:01 PM PDT  Today John Embry told King World News, "We are literally witnessing a war between the physical buyers (Eastern central banks), and the paper manipulators (commercials or bullion banks), and that is why there is such a fierce battle being waged in gold between $1,735 and $1,800." Embry also stated, "If the commercials run into trouble (with their massive short positions), KWN readers will see a move in gold that will leave them breathless." Here is what Embry, who is Chief Investment Strategist at Sprott Asset Management, had to say: "This is one of those moments in the gold market where there is a distinct possibility that we will see a commercial signal failure. A commercial signal failure is an extremely rare event, but we could well be setting up for just such an occurrence right now."
This posting includes an audio/video/photo media file: Download Now | |||||
| The $2 Trillion European Bailout Package Is Coming Posted: 11 Oct 2012 10:00 PM PDT from KingWorldNews:
Today Jeffrey Saut spoke with King World News about gold, a $2 trillion bailout in Europe, and what investors should expect going forward. Saut, who is Chief Investment Strategist for $360 billion Raymond James, had this to say about discussion of a $2 trillion European bailout: "I had mentioned that in the past, and that's the kind of bazooka you need to pull to try to at least get over the short-to-intermediate-term funding problems." Here is what Saut had this to say: "I have said it, politicians, bureaucrats, and bankers are the same in Europe as they are here. They do not want to lose their power, and if the EU implodes, they all lose their power. So I think they are going to continue papering over the situation, and try to buy more time, just like we did here in our '07/'08 financial fiasco." Jeffrey Saut continues @ KingWorldNews.com
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| Posted: 11 Oct 2012 09:40 PM PDT Authored by Detlev Schlichter; originally posted at DetlevSchlichter.com, We are now five years into the Great Fiat Money Endgame and our freedom is increasingly under attack from the state, liberty's eternal enemy. It is true that by any realistic measure most states today are heading for bankruptcy. But it would be wrong to assume that 'austerity' policies must now lead to a diminishing of government influence and a shrinking of state power. The opposite is true: the state asserts itself more forcefully in the economy, and the political class feels licensed by the crisis to abandon whatever restraint it may have adhered to in the past. Ever more prices in financial markets are manipulated by the central banks, either directly or indirectly; and through legislation, regulation, and taxation the state takes more control of the employment of scarce means. An anti-wealth rhetoric is seeping back into political discourse everywhere and is setting the stage for more confiscation of wealth and income in the future. War is the health of the state, and so is financial crisis, ironically even a crisis in government finances. As the democratic masses sense that their living standards are threatened, they authorize their governments to do "whatever it takes" to arrest the collapse, prop up asset prices, and to enforce some form of stability. The state is a gigantic hammer, and at times of uncertainty the public wants nothing more than seeing everything nailed to the floor. Saving the status quo and spreading the pain are the dominant political postulates today, and they will shape policy for years to come. Unlimited fiat money is a political toolA free society requires hard and apolitical money. But the reality today is that money is merely a political tool. Central banks around the world are getting ever bolder in using it to rig markets and manipulate asset prices. The results are evident: equities are trading not far from historic highs, the bonds of reckless and clueless governments are trading at record low interest rates, and corporate debt is priced for perfection. While in the real economy the risks remain palpable and the financial sector on life support from the central banks, my friends in money management tell me that the biggest risk they have faced of late was the risk of not being bullish enough and missing the rallies. Welcome to Planet QE. I wish my friends luck but I am concerned about the consequences. With free and unlimited fiat money at the core of the financial industry, mis-allocations of capital will not diminish but increase. The damage done to the economy will be spectacular in the final assessment. There is no natural end to QE. Once it has propped up markets it has to be continued ad infinitum to keep 'prices' where the authorities want them. None of this is a one-off or temporary. It is a new form of finance socialism. It will not end through the political process but via complete currency collapse. Not the buying and selling by the public on free and uninhibited markets, but monetary authorities – central bank bureaucrats – now determine where asset prices should be, which banks survive, how fast they grow and who they lend to, and what the shape of the yield curve should be. We are witnessing the destruction of financial markets and indeed of capitalism itself. While in the monetary sphere the role of the state is increasing rapidly it is certainly not diminishing in the sphere of fiscal policy. Under the misleading banner of 'austerity' states are not rolling back government but simply changing the sources of state funding. Seeing what has happened in Ireland and Portugal, and what is now happening in Spain and in particular Greece, many governments want to reduce their dependence on the bond market. They realize that once the bond market loses confidence in the solvency of any state the game is up and insolvency quickly becomes a reality. But the states that attempt to reduce deficits do not usually reduce spending but raise revenues through higher taxes. Sources of state fundingWhen states fund high degrees of spending by borrowing they tap into the pool of society's savings, crowd out private competitors, and thus deprive the private sector of resources. In the private sector, savings would have to be employed as productive capital to be able repay the savers who provided these resources in the first place at some point in the future. By contrast, governments mainly consume the resources they obtain through borrowing in the present period. They do not invest them in productive activities that generate new income streams for society. Via deficit-spending, governments channel savings mainly back into consumption. Government bonds are not backed by productive capital but simply by the state's future expropriation of wealth-holders and income-earners. Government deficits and government debt are always highly destructive for a society. They are truly anti-social. Those who invest in government debt are not funding future-oriented investment but present-day state consumption. They expect to get repaid from future taxes on productive enterprise without ever having invested in productive enterprise themselves. They do not support capitalist production but simply acquire shares in the state's privilege of taxation. Reducing deficits is thus to be encouraged at all times, and the Keynesian nonsense that deficit-spending enhances society's productiveness is to be rejected entirely. However, most states are not aiming to reduce deficits by cutting back on spending, and those that do, do so only marginally. They mainly replace borrowing with taxes. This means the state no longer takes the detour via the bond market but confiscates directly and instantly what it needs to sustain its outsized spending. In any case, the states' heavy control over a large chunk of society's scarce means is not reduced. It is evident that this strategy too obstructs the efficient and productive use of resources. It is a disincentive for investment and the build-up of a productive capital stock. It is a killer of growth and prosperity. 47 percent, then 52 percent, then 90 percent…Why do states not cut spending? – I would suggest three answers: first, it is not in the interest of politicians and bureaucrats to reduce spending as spending is the prime source of their power and prestige. Second, there is still a pathetic belief in the Keynesian myth that government spending 'reboots' the economy. But the third is maybe the most important one: in all advanced welfare democracies large sections of the public have come to rely on the state, and in our mass democracies it now means political suicide to try and roll back the state. Mitt Romney's comment that 47% of Americans would not appreciate his message of cutting taxes and vote for him because they do not pay taxes and instead rely on government handouts, may not have been politically astute and tactically clever but there was a lot of truth in it. In Britain, more than 50 percent of households are now net receivers of state transfers, up 10 percent from a decade ago. In Scotland it is allegedly a staggering 90 percent of households. Large sections of British society have become wards of the state. Against this backdrop state spending is more likely to grow than shrink. This will mean higher taxes, more central bank intervention (debt monetization, 'quantitative easing'), more regulatory intervention to force institutional investors into the government bond market, and ultimately capital controls. Eat the Rich!In order to legitimize the further confiscation of private income and private wealth to fund ongoing state expenditure, the need for a new political narrative arose. This narrative claims that the problem with government finances is not out-of-control spending but the lack of solidarity by the rich, wealthy and most productive, who do not contribute 'their fair share'. An Eat-the-Rich rhetoric is discernible everywhere, and it is getting louder. In Britain, Deputy Prime Minister Nick Clegg wants to introduce a special 'mansion tax' on high-end private property. This is being rejected by the Tories but, according to opinion polls, supported by a majority of Brits. (I wager a guess that it is popular in Scotland.) In Germany, Angela Merkel's challenger for the chancellorship, Peer Steinbrueck, wants to raise capital gains taxes if elected. In Switzerland of all places, a conservative (!) politician recently proposed that extra taxes should be levied on wealthy pensioners so that they make their 'fair' contribution to the public weal. France on an economic suicide missionThe above trends are all nicely epitomized by developments in France. In 2012, President Hollande has not reduced state spending at all but raised taxes. For 2013 he proposed an 'austerity' budget that would cut the deficit by €30 billion, of which €10 billion would come from spending cuts and €20 billion would be generated in extra income through higher taxes on corporations and on high income earners. The top tax rate will rise from 41% to 45%, and those that earn more than €1 million a year will be subject to a new 75% marginal tax rate. With all these market-crippling measures France will still run a budget deficit and will have to borrow more from the bond market to fund its outsized state spending programs, which still account for 56% of registered GDP. If you ask me, the market is not bearish enough on France. This version of socialism will not work, just as no other version of socialism has ever worked. But when it fails, it will be blamed on 'austerity' and the euro, not on socialism. As usual, the international commentariat does not 'get it'. Political analysts are profoundly uninterested in the difference between reducing spending and increasing taxes, it is all just 'austerity' to them, and, to make it worse, allegedly enforced by the Germans. The Daily Telegraph's Ambrose Evans-Pritchard labels 'austerity' '1930s policies imposed by Germany', which is of dubious historical and economic accuracy but suitable, I guess, to make a political point. Most commentators are all too happy to cite the alleged negative effect of 'austerity' on GDP, ignoring that in a heavily state-run economy like France's, official GDP says as little about the public's material wellbeing as does a rallying equity market in an economy fuelled by unlimited QE. If the government spent money on hiring people to sweep the streets with toothbrushes this, too, would boost GDP and could thus be labelled economic progress. At this point it may be worth adding that despite all the talk of 'austerity' many governments are still spending and borrowing like never before, first and foremost, the United States, which is running the largest civil government mankind has ever seen. For 5 consecutive years annual deficits have been way in excess of $1,000 billion, which means the US government borrows an additional $4 billion on every day the markets are open. The US is running budget deficits to the tune of 8-10% per annum to allegedly boost growth by a meagre 2% at best. Regulation and more regulationFiscal and monetary actions by states will increasingly be flanked by aggressive regulatory and legislative intervention in markets. Governments are controlling the big pools of savings via their regulatory powers over banks, insurance companies and pension funds. Existing regulations already force all these entities into heavy allocations of government bonds. This will continue going forward and intensify. The states must ensure that they continue to have access to cheap funding. Not only do I expect regulation that ties institutional investors to the government bond market to continue, I think it will be made ever more difficult for the individual to 'opt out' of these schemes, i.e. to arrange his financial affairs outside the heavily state-regulated banking, insurance, and pension fund industry. The astutely spread myth that the financial crisis resulted from 'unregulated markets' rather than constant expansion of state fiat money and artificially cheap credit from state central banks, has opened the door for more aggressive regulatory interference in markets. The War on OffshorePart and parcel of this trend is the War on Offshore, epitomized by new and tough double-taxation treaties between the UK and Switzerland and Germany and Switzerland. You are naïve if you think that attacks on Swiss banking and on other 'offshore' banking destinations are only aimed at tax-dodgers. An important side effect of these campaigns is this: it gets ever more cumbersome for citizens from these countries to conduct their private banking business in Switzerland and other countries, and ever more expensive and risky for Swiss and other banks to service these clients. For those of us who are tax-honest but prefer to have our assets diversified politically, and who are attracted to certain banking and legal traditions and a deeper commitment to private property rights in places such as Switzerland, banking away from our home country gets more difficult. This is intentional I believe. The United States of America have taken this strategy to its logical extreme. The concept of global taxation for all Americans, regardless where they live, coupled with aggressive litigation and threat of reprisal against foreign financial institutions that may – deliberately or inadvertently – assist Americans in lowering their tax burden, have made it very expensive and even risky for many banks to deal with American citizens, or even with holders of US green cards or holders of US social security numbers. Americans will find it difficult to open bank accounts in certain countries. This is certainly the case for Switzerland but a friend of mine even struggled obtaining full banking services in Singapore. I know of private banks in the UK that have terminated banking relationships with US citizens, even when they were longstanding clients. All of this is going to get worse next year when FATCA becomes effective – the Foreign Account Tax Compliance Act, by which the entire global financial system will become the extended arm of the US Internal Revenue System. US citizens are subject to de facto capital controls. I believe this is only a precursor to real capital controls being implemented in the not too distant future. When Johann Wolfgang von Goethe wrote that "none are more hopelessly enslaved than those who falsely believe they are free" he anticipated the modern USA. And to round it all off, there is the War on Cash. In many European countries there are now legal limits for cash transactions, and Italy is considering restrictions for daily cash withdrawals. Again, the official explanation is to fight tax evasion but surely these restrictions will come in handy when the state-sponsored and highly geared banking sector in Europe wobbles again, and depositors try to pull out their money. "I've seen the future, and it will be…"So here is the future as I see it: central banks are now committed to printing unlimited amounts of fiat money to artificially prop up various asset prices forever and maintain illusions of stability. Governments will use their legislative and regulatory power to make sure that your bank, your insurance company and your pension fund keep funding the state, and will make it difficult for you to disengage from these institutions. Taxes will rise on trend, and it will be more and more difficult to keep your savings in cash or move them abroad. Now you may not consider yourself to be rich. You may not own or live in a house that Nick Clegg would consider a 'mansion'. You may not want to ever bank in Switzerland or hold assets abroad. You may only have a small pension fund and not care much how many government bonds it holds. You may even be one those people who regularly stand in front of me in the line at Starbucks and pay for their semi-skinned, decaf latte with their credit or debit card, so you may not care about restrictions on using cash. But if you care about living in a free society you should be concerned. And I sure believe you should care about living in a functioning market economy. This will end badly.
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| More People Ask ‘How Do You Buy Silver?' Posted: 11 Oct 2012 08:30 PM PDT by Tim Iacono , Seeking Alpha:
It was more than ten years ago when I bought my first gold and silver bullion. Back then, there were no U.S.-based ETFs available that invested only in the metals and, as was the case back in the 1970s during the last precious metals bull market, if you wanted to own gold and silver in the early-2000s, you either had to call up a coin shop or settle for mining stocks rather than the metal. In fact, I recall one time in early 2004 when I decided to buy some junk silver (pre-1965 coins, 90 percent silver) and, between the time that I placed my order until the time that I had to mail a check, the silver price had dropped from about $7 an ounce to below $6 an ounce.
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| Eric Sprott will keynote 10th annual Silver Summit in Spokane Oct. 25-26 Posted: 11 Oct 2012 07:02 PM PDT 9p ET Thursday, October 11, 2012 Dear Friend of GATA and Gold: Sprott Asset Management CEO Eric Sprott will be the keynote speaker at the 10th annual Silver Summit conference, sponsored by Cambridge House, to be held Thursday and Friday, October 25 and 26, at the beautiful Davenport Hotel in downtown Spokane, Washington. Sprott will be joined by a host of GATA-friendly speakers, including Al Korelin of the Korelin Economic Report, David Morgan of Silver-Investor.com, Bix Weir of the Road to Roota market letter, GoldSeek.com proprietor Peter Spina, Ron Hera of Hera Research, Patrick Heller of Liberty Coin Service in Lansing, Michigan, and CPM Group Managing Director Jeff Christian. Dozens of resource companies will be exhibiting and making presentations. Admission will be $40. To learn all about the conference and to register, please visit: http://www.cambridgehouse.com/event/silver-summit-10th-anniversary 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: 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 Opinion Around the World Is Changing When Deutschebank calls gold "good money" and paper "bad money". ... http://www.gata.org/node/11765 When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ... http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan... When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ... http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan... When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ... http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold... When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ... World opinion is changing in favor of gold. How can you learn why and what it will mean to you? Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard." Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him." To buy a copy of "The True Gold Standard," please visit: http://www.thegoldstandardnow.com/publications/the-true-gold-standard
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| No solution for nations but investors can protect themselves, GATA chairman says Posted: 11 Oct 2012 06:40 PM PDT 8:35p ET Thursday, October 11, 2012 Dear Friend of GATA and Gold: There aren't any solutions for the finances of Western nations, GATA Chairman Bill Murphy tells Chris Waltzek of GoldSeek Radio today, but there is protection for investment portfolios -- gold. Murphy says the fundamentals could not be more bullish for gold and silver and predicts that the physical market will overcome the price suppression of the futures market. You can listen to the interview at GoldSeek Radio here: http://radio.goldseek.com/nuggets/murphy10.11.12.mp3 CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Opinion Around the World Is Changing When Deutschebank calls gold "good money" and paper "bad money". ... http://www.gata.org/node/11765 When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ... http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan... When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ... http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan... When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ... http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold... When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ... World opinion is changing in favor of gold. How can you learn why and what it will mean to you? Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard." Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him." To buy a copy of "The True Gold Standard," please visit: http://www.thegoldstandardnow.com/publications/the-true-gold-standard Join GATA here: 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 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/.
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| Gold Seeker Closing Report: Gold and Silver End Near Unchanged Again Posted: 11 Oct 2012 04:45 PM PDT Gold climbed up to $1774.75 by a little after 8AM EST before it fell back to almost unchanged by midmorning in New York, but it then bounced back higher midday and ended with a gain of 0.26%. Silver rose to as high as $34.33 before it also fell back off and ended with a loss of 0.12%.
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| Posted: 11 Oct 2012 04:15 PM PDT October 11, 2012 [LIST] [*]Phase 2 of the Occupy movement? The Wal-Mart strike you haven't heard about [*]Crisp and clean dollar bills only, please: Chris Mayer's first dispatch from Myanmar [*]"Biggest fire sale in history" gets even more lucrative [*]Garden plots in Detroit, independence movement in Venice: Disparate tales of a world flying apart and reinventing itself [*]First it's voluntary, then it's mandatory: The slow creep toward totalitarianism at school [*]In defense of the unemployment numbers... reader experiences with direct democracy... a first-hand account of the Venezuelan election... and more! [/LIST] Eighty-eight people out 10,000 isn't much... unless it's the leading edge of a new and more potent phase of the Occupy movement. At least that's the thought that crosses our mind with the Wal-Mart strike. You haven't heard about it? You're not alone. The Wal-Mart labor strikes since they began a week ago today...
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| The Gold Price Closed Up and Silver Down is Gold Consolidating? Posted: 11 Oct 2012 04:05 PM PDT Gold Price Close Today : 1,768.80 Gold Price Close 5-Oct : 1,778.60 Change : -9.80 or -0.6% Silver Price Close Today : 3404.6 Silver Price Close 5-Oct : 3451.6 Change : -47.00 or -1.4% Gold Silver Ratio Today : 51.953 Gold Silver Ratio 5-Oct : 51.530 Change : 0.42 or 0.8% Silver Gold Ratio : 0.01925 Silver Gold Ratio 5-Oct : 0.01941 Change : -0.00016 or -0.8% Dow in Gold Dollars : $ 155.74 Dow in Gold Dollars 5-Oct : $ 158.18 Change : $ (2.44) or -1.5% Dow in Gold Ounces : 7.534 Dow in Gold Ounces 5-Oct : 7.652 Change : -0.12 or -1.5% Dow in Silver Ounces : 391.42 Dow in Silver Ounces 5-Oct : 394.31 Change : -2.89 or -0.7% Dow Industrial : 13,326.39 Dow Industrial 5-Oct : 13,610.15 Change : -283.76 or -2.1% S&P 500 : 1,432.84 S&P 500 5-Oct : 1,460.93 Change : -28.09 or -1.9% US Dollar Index : 79.777 US Dollar Index 5-Oct : 79.417 Change : 0.360 or 0.5% Platinum Price Close Today : 1,687.80 Platinum Price Close 5-Oct : 1,703.30 Change : -15.50 or -0.9% Palladium Price Close Today : 649.45 Palladium Price Close 5-Oct : 661.75 Change : -12.30 or -1.9% I'm sending you this weekly summary early this week, because tomorrow I will be busy with the Transformations and Renewals Conference. God willing, I will return Monday, having enjoyed an enlightening and uplifting weekend. Let's think first about the GOLD/SILVER RATIO before we talk the silver and GOLD PRICE. Today's ratio closed at 51.953, near the top of the last month and a half's range. Above, between 53.5 and 54 is a gap the ratio left on the way down. More, the 50 DMA stands at 53.74 and the 200 DMA at 54.05, and both are likely targets for an upside correction. Odds here favor a rise to 54. Remember that a rising ratio means falling gold and silver, and vice versa. The GOLD PRICE closed up $5.60 to $1,768.80 while silver gainsaid with a lower close, down 2.7 cents to 3404.6. Both silver and gold have traced out broadening tops formations punctuated by a double top. This might instead prove to be a consolidation formation, it's true, but until gainsaid, gravity has control. GOLD PRICE must sling its leg over $1,800 and step out smartly to contradict this broadening top view. Down below, if it breaks the last low ($1,738) it will probe beneath down to $1,700 or $1,650. The SILVER PRICE has double tops about 3544c, and a hammock beneath at about 3350c. Targets if it falls out of that hammock are 3100c and 3200c. Instead of whining and griping, let loose that smile and thank Heaven for the opportunity to buy silver and gold at reduced prices before they launch moonward. Here's an example why I don't worry too much about short term timing. Customer reminded me today he had bought in August 2008 at $805 gold and $14.15 silver. After August 2008 both nosedived, silver down to $8.80 and gold to $705. Owch! We're ruined! Not quite. As of today, that silver had gained 123% (was 2.23 times what he paid for it) and the gold had gained 108% (was 2.08 times cost). Looking from here, that temporary spasm of bad timing doesn't look so bad after all. The weekly scoreboard always tells the tale. First, confusion abounds. Markets that should move together show mixed and contradictory closes, e.g., Dow down and S&P500 up, gold up, silver down. However, all these closed lower this week: gold, silver, platinum, palladium, the Dow, and the S&P500. On that board, only the dollar rose this week, and that grudgingly. Seems obvious that investors are wary of committing themselves before the election, although whether Peter Pan or Tinkerbelle is elected, it won't make any difference in anything, except the rate at which we are fleeced and enslaved. Yesterday morning on National Proletarian Radio, the Voice of International Socialism and Stupidity, I heard some college students interviewed about the election. I pass over in silence exactly how much deep judgment a 21 year old can have, and get to the point. One girl said she was voting for Romney because he could create jobs. Could y'all hear me groan? You cannot have an intelligent conversation with a person who believes that politicians create jobs. They simply don't know enough to form the words. PRODUCERS create jobs, governments consume resources. Any money government spends must by inflating or taxing come first from producers, curtailing their resources, causing them to consume less, and, obviously, employ fewer workers. Maybe the government is putting something in the water that makes people believe stupid ideas really will work: stupidium, the last and dumbest element. At the moment the big question overhanging the market is whether the US dollar index is down for the count or intending to rally. It has twice sought to break through 80, with wretched impotence. Today it held on above its 20 DMA, so technically remains pointed up. Dollar is battling its downtrend line from July, and should it conquer, will run to the 200 DMA at 80.70, or even to 81. This will spook stock and metals investors the way a green dog spooks quail in an open field. (He doesn't know to stop and point at 'em.) To maintain upward momentum the US dollar index must remain above 79.50. US1.00 = E0.7737 = Y78.33. Euro closed up 0.46% at $1.2925 but beneath its $1.2958 20 DMA. Has failed to breach that downtrend line and advance. Looks mighty poorly, kinda green around the gills. Yen closed 127.67 cents, down 0.18%. Every bit as flakey as the euro. Stocks have reached the Fish or Cut Bait crossroads. If the Dow closes below 13,300 (50 DMA is 13,326) it will fly like your seven-year old trying his batman cape off the garage roof. Dow today dropped 18.58 (0.14%) to 13,326.39 while the gainsaying S&P500 rose 0.28 to 1,432.84. Both the Dow and S&P500 have fallen down from their rising wedges and unless they can catch their balance and rise, a fall yet huger awaits. Whoopie! The digital versions of At Home In Dogwood Mudhole are ready. Hard copies won't be here until 26 October, but if you want to purchase AHIDM in PDF, Kindle, or e-Book format for $16.95, you can order at http://store.the-moneychanger.com/products/at-home-in-dogwood-mudhole-vol1 And once y'all order and have a chance to read a little, let me know what you think. If it doesn't make you gasp, laugh, cry, or jump up and down (or all at once), I'll refund your electrons. Y'all enjoy your weekend. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com 1-888-218-9226 10:00am-5:00pm CST, Monday-Friday © 2012, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. No, I don't. 
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| China, Japan, Taiwan and US: Four to Party in Diaoyutai Posted: 11 Oct 2012 04:00 PM PDT By EconMatters With Bin Laden and Gaddafi out of the picture, the geopolitical headline is now shifting to Asia/China. The most recent excitement came from a 3-way bitter territorial feud over eight small and uninhabited islands in the East China Sea. Historically, these uninhabited islands are rich fishing grounds with military strategic importance. It was also discovered in 1968 that there could be oil and gas reserves under the sea near the islands. It is estimated that the East China Sea region may hold as much as 160 billion barrels of oil. Today, these islands have different names depending on whom you talk to - Diaoyu in China, Diaoyutai in Taiwan, and Senkaku in Japan.
Duel in the East China Sea
The history of this dispute has been a regional "undercurrent" that could be traced all the way back to Qing Dynasty. But tension erupted high above surface after Japan's attempt to "nationalize" these islands by purchasing them from a private owner for 2.05 billion yen ($26.18 million). This tactic, not that much different from the provocation by Japan to start the previous two Sino-Japanese Wars, has brought up lots of bad memories. Needless to say, Chinese (from both sides of the Strait) are livid and large scale anti-Japan protests have broken out in a dozen of cities in Mainland and Taiwan.
Japan Sales Crash
China was Japan's largest trading partner last year, and Japan is China's second-biggest trading partner after the United States with two-way trade totaling $342.9bn. China is also the largest auto market in the world and represents one significant "life line" for Japanese automakers. The renewed anti-Japanese backlash in China has already caused the "disastrous" decline of Japanese auto sales of up to 50% YoY in China last month.
Japan's loss is another rival's gain as BMW, GM and Korea's Hyundai are reporting surging YoY sales in September. China Daily quoted IHS Automotive that output and sales for Japanese automakers in China is estimated to be cut by 200,000 units this year, or 20% of sales. China communist party also threatened that Japan's economy could suffer for up to 20 years if China chose to impose sanctions over the escalating territorial row.
The Role of U.S. in Diaoyutai
Based in historical documents, Diaoyutai Islands were formally part of China, but Taiwan (along with the associated islands including Diaoyutai Islands) was ceded to Japan by the Qing Dynasty in 1895 via Treaty of Shimonoseki after losing the First Sino-Japanese War. Taiwan was returned to the Republic of China formed by the Nationalist Party (KMT) in 1945 after the end of WW II in accordance of Cairo Declaration, and Potsdam Proclamation.
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| Channel Resources is Vulture Bargain #17- One Million Golden Ounces for a Lotto Tickey Price Posted: 11 Oct 2012 03:54 PM PDT About one month ago we shared a Special Vulture Bargain Update with Got Gold Report Subscribers on an interesting exploration company working in Burkina Faso between Orezone's (ORE.TO) Bombore' project and Riverstone Resources' (RVS.V) exciting Liguidi prospect. As a courtesy to our entire blog readership we are reproducing an excerpt of that notice just below. Special VB Update September 12, 2012 VB #17 - One Million Golden Ounces for a Lotto Tickey Price HOUSTON -- This month we are adding a new Vulture Bargain (VB#17), naming a small explorer working in Burkina Faso that has managed to prove up in excess of one million ounces of gold resources in all categories, but thanks to the terrible bear market for juniors is still trading in the Lotto Tickey price range. Obviously it is a gamble or it wouldn't be priced as low as it is, but this one is not just a Lotto Tickey. Far from it. This one is the proverbial high-risk-high-reward play we like to take a shot with while scratching our head, wondering why we have been given so low priced an opportunity. We are willing to risk a Vegas Money sized stake to see if the Trading Gods will look the other way long enough to allow the market to price the stock like it should. We will explain that comment as we go forward. Bear Market Bonanza Op Back one year ago, this company was priced at 4X or more of the current price and that was BEFORE they turned in their maiden 43-101 resource estimate on their Flagship Tanlouka project. Tanlouka is located about 8 km east southeast of Orezone's Bombore' deposit and about an hour's drive east of Ouagadougou (pronounced Wa'-ga-doo-goo), the country's capital city. As shown in the chart below, the second leg of the brutal bear market for junior miners (March to May of 2012) decimated the price and broke the market's confidence in the company, sending it as low as 6-cents in June in a panic spike. A price we dubbed Ridiculous Cheap on the charts, as many of you will no doubt already know.
Channel Resources is Vulture Bargain #17 The company should be no surprise to any Vulture who has kept up with our comments on the welcome page of the subscriber site. It is Channel Resources (CHU.V or CHJRF). Comparison chart below: (VB paragraph: We are gaming the value they have already put on the table plus the blue sky that comes with the 79-square km land package being in ancient gold elephant country in Burkina Faso. For only strong, non risk-averse Vultures with a sense of adventure and a gambler's heart. High risk, high reward.) Let's briefly speak to both (resources on the table and the blue sky), understanding that we know and trust that all Vultures will dig in and do their own careful due diligence to satisfy themselves before attempting to game any of the companies we attempt to play here at GGR. Resources Found and Good Chances of More to Come A very good place to start that trip down "Due Diligence Avenue" for Channel Resources is a September 4 press release which serves as a corporate update here: According to the P.R, Channel filed a technical report (see link below), following up on their July 19 maiden resource estimate (when the junior market was in first stage panic and could not have cared less then) for the Mankarga 5 deposit, part of the Tanlouka Project, which showed that: "… the Report identifies Indicated Mineral Resources of 14.1 million tonnes at 0.94 grams per tonne gold ("g/t Au") for 425,000 gold ounces and Inferred Mineral Resources of 29.1 million tonnes at 0.78 g/t Au for 729,000 gold ounces. The Resource Estimate was made and the Report compiled by Mr. Jeffrey K. Smith, P.Geo., Principal Geologist at AMEC Americas Ltd.. The Report has been filed on SEDAR and is also available on the Company's website at www.channelresources.ca." The press release continued: "Tanlouka Gold Project, Burkina Faso, West Africa… With the announcement of a maiden resource estimate at Tanlouka, Channel has achieved an important milestone in demonstrating the potential of the Tanlouka Project. From the first hole drilled on the Mankarga 5 structure to the present, over a period of two years, a NI43-101 compliant resource has been established with a major new resource contained within a single open pit shell. The mineralized structures at Mankarga 5 remain open down-dip and along-strike with potential to add to its gold inventory. (Ed. Note. M-5 is only one of several promising zones and not to be confused with Mankarga 1 which is nearby but likely a separate deposit.) "We are very pleased with the progress that our team has made on the Tanlouka project," commented Colin McAleenan, Channel's President and CEO. "While the very difficult market conditions prevailing over the past six months and especially over this summer have limited the impact of our achievement in the markets, we believe that we have created real value for shareholders that will, in time, be reflected more faithfully." (Emphasis added.) Tanlouka's expected growth over the next year will be driven not only by a potential market recovery but on a demonstration of the expansion potential of the Mankarga 5 deposit, which remains open along strike and to-depth, further drilling to determine the extent of mineralization at Mankarga 1 and Mankarga 1-South targets, and also on work underway to add new discoveries in other target areas. Chief among these include the Manesse and Tanwaka targets, approximately five and ten kilometres north of the Mankarga zone, originally identified in historic regional geochemical surveys. Channel has recently followed up on these targets with extensive 100 metre by 25 metre soil surveys, the results for which are expected soon. In addition to the identified targets of Mankarga, Manesse and Tanwaka, the Company will begin exploring the western third of the property, which has not yet seen any fieldwork." Lotto Tickey Price but Resources in the Can By the way, the technical report mentioned above concludes: "Work completed at Tanlouka to date indicates that the mineralization is robust and can support a preliminary economic assessment (PEA). Based on the positive exploration results, the QP recommends Channel undertake a PEA at Tanlouka. Accordingly, Channel is planning to proceed with such a study. Recommendations are provided as a single phase of work, with the recommendations able to be conducted concurrently." The First of Perhaps Several Deposits East of Orezone's Bombore' So Channel has, in two short years, drilled and delivered a million ounce gold resource on their 90% owned Tanlouka Permit (the Burkina Government holds a 10% carried interest); for something like $5 an in-the-ground-within-a-single-pit-shell-ounce in all-in exploration costs. That "Lotto Tickey" chance would be without any further kicks at the exploration can, but in Channel's case there are several interesting potential exploration 'can-kicks' and possibly market moving catalysts we can point to.
On the exploration front, one of them has already been mentioned by the press update above in the form of the extensive 100 meter by 25 meter soil surveys at Manesse and Tanwaka. (See the map below at left and on the website at the link shown.) http://www.channelresources.ca/s/Tanlouka.asp Manesse and Tanwaka are the geochem anomalies north of Mankarga in the inset map. Both areas saw historic, limited geochem sampling. Channel has undertaken a much more robust soil sampling program on both of them with the results pending. According to management, in this area of Burkina, which is a very, very old geological zone, soil sampling, if done systematically and extensively can tell a lot about what is underneath the surface. Soil sampling very often leads to discovery here (a fact we have already witnessed with Semafo, Iamgold, Orezone and Riverstone), almost as often as following the artisanal miners into new zones does. Artisinal Evidence Aplenty Speaking of artisanal miners, there are several areas on the Channel properties which the locals have dug shallow pits to reach free gold near surface. The company intends to follow up on these obvious bird dog pointers once the market returns to more like normal and financing is not so "iffy." The locals find the zones which travel all the way to the surface but do not have the technology or the resources to find, much less tackle, deeper, overburden covered deposits. Their work in an area is proof that gold is there, but until the geos put the drills on it; until they learn a lot more about the structures there is no telling what the size or average grade of the deposits are. The main point to remember here is that robust soil sampling is an excellent tool to use in this ancient portion of the African Continent.
Following the Locals…
Gold deposits are scattered across the savannah in seemingly random fashion until one is able to connect the dots. These are some of the oldest gold deposits on earth, by the way. The locals can only reach the uppermost, at-surface zones and often leave small workings (in relation to the actual size and depth of the deposits) and open pits behind to mark where they extracted free gold – an excellent "pathfinder" in the region.
Suffice it to say for now that Channel has more than just the Mankarga 5 deposit to explore, there are compelling reasons to believe they might be on the trail of other, interesting and commercial deposits to the north of M-5 and the company wants to do serious exploration of the only sparsely explored western sections of the permit as soon as it is practical to do so.
(Images of artisinal workings in the Tanlouka permit area. Credit Channel Resources)
Doing Due Diligence a Must! Vultures with more than a passing interest in CHU also might want to take a look at the company presentation from August at this link: http://www.channelresources.ca/i/pdf/chu-presentation.pdf Mankarga 5 drill results up to July 7, 2012 are at the link below. http://www.channelresources.ca/i/pdf/CHUman5resultslist.pdf Drill cross sections from Mankarga 5 can be found here: http://www.channelresources.ca/i/pdf/CHUman5resultssections.pdf Tanlouka Technical Report here: (Essential for serious and large Vultures. Note in particular the timing and history of the permit.) http://www.channelresources.ca/i/pdf/CHU2012TanloukaTechReport.pdf The guts and bolts. Channel has more shares issued and outstanding than we would like to see at this stage, but we won't carp too much about that with a 7 or 8-cent stock. What counts is market cap and at $0.07 or so we are talking about less than a $10 million MC for a company with a bona fide million-plus ounce gold resource. How many companies can you name that sport a $50 million market cap or more with less than the resources Channel has delivered? We see room for improvement in both share price and in investor/trader awareness of this one. Absent a black swan event we expect it. Spend a little quality time at the CHU website. Tanlouka lies along the Markoye Shear Zone in the Brimian Greenstone Belt, which is host to quite a few mines and deposits as the map inset shows. The gold-friendly zones continue to the south into Ghana, where another of our VBCI issues, James Longshore's Xtra Gold (XTGR) is working. We will likely have more about Xtra Gold in another update shortly. Bottom Line for now, we are moving Channel Resources from VBCI to fully fledged Vulture Bargain status as of today, September 12, 2012, with CHU changing hands at C $0.075 as we put the final touches to this special update. As with all VB issues we hold a long position in CHU built up over the past few months, as disclosed on the subscriber charts. CHU is a Speculation and should be considered high risk. We hold a long position already and should be considered as biased. By way of full disclosure, we are not yet done building our position and are actively attempting to accumulate additional "size" on dips now, including trades today at .07 and .075. Obviously, CHU is not for everyone. It is certainly a risky, Lotto Tickey priced issue that needs a break from the Drill, Trading and Market Gods in order to break out of the bear market and buyer's strike funk it currently suffers from on the one hand, but already does have a good deal of promising "good stuff" in the can with interesting, potentially market moving news imminent on the other. So we consider Channel Resources as one for our most adventuresome Vultures to take a peek at; Vultures with a cast iron stomach, a sense of adventure and a gambler's heart. Vultures who don't mind taking a Vegas money shot at one-million plus ounces of Burkinabe gold at a Lotto Tickey price and willing to be patient for market conditions to hot up a little from here. If we held no position at all we would take an initial stake at the offer and then try to catch a kamikaze seller at some ridiculously lower price to round out the Vegas money position ahead of the soil sampling news to come. The stock is thinly traded so we wouldn't get in a hurry buying or selling and we definitely would not chase it. Details: Recent price: $0.075 Shares issued and outstanding: 119.3mm (Management 8%, 12% FD) Options: 8.1mm Warrants: 17.1mm Fully Diluted: 144.5mm Market cap: < $10 million Subscriber Chart for CHU.V: http://stockcharts.com/h-sc/ui?s=CHU.V&=W&yr=2&n=0&dy=0&id=p54498499710&=280216797 Channel Resources website: http://www.channelresources.ca/s/Home.asp Insider activity: Modestly favorable. (As of 9-12-12) *** Postscript: We very strongly recommend that anyone intending to build a meaningful position in the company contact and get to know management. We found Senior VP Cyrus Ameli to be personable, engaging and forthright. He would be an excellent place to begin discussions with management. Our thanks to Eric Coffin of HRA for bringing this opportunity to our attention originally. Channel also has an interest in the Fox Creek Lithium/Potash Project in Alberta, but we are not including that in this discussion. *** That's it for this special edition of the Vulture Bargain Roundup. Remember that we continue to make new commentary on the VB and VBCI issues directly in the charts, which is our preferred way to communicate. Once again, thank you for honoring us with your business. Boiler plate…
"Ya'll don't forget to check the charts often, ya-hear? " Other VB Notes Vultures can access all of the full-size Vulture Bargain charts and our "VB Possibles," the Vulture Bargain Companies of Interest or VBCIs by logging in to the subscriber pages. We are constantly updating and commenting in those charts, and that is where we intend to do most of our "communicating" about the VBCI issues. For new Vultures "Free Shares" means that we have taken profit on a portion of our initial stake, usually at least at a "double" and hold the remainder of the position virtually risk-free. "Trophy Shares" means that we have taken profit on a portion of our Free Shares so the issue is not only risk free, but it has also given us a measure of profit "fun." We think Free Shares and Trophy Shares are the very best way to build a portfolio of small miners and explorers, so we really do enjoy the issues that allow us to do so. "Vegas Money" is uber-high risk money in an amount one can afford to lose all of and not affect one's standard of living, like the amount one might take on a weekend trip to Las Vegas. "Lotto Tickey" is the highest risk issue we attempt to game, always extremely cheap, but not without a good shot at the brass ring. Definitely not for the faint of heart, but sometimes these gambles actually do "hit the numbers" and man, is that ever fun! All Vulture Bargain Issues Are Speculations and Should Be Considered High Risk. Until next time, good Vulture Bargain Hunting! Disclosure: The above contains opinion and commentary of the author. Each person should study the issues carefully and, as always, make their own informed decisions. Disclosure: The author and/or his family currently holds a net long position many of the "Vulture Bargain Candidates of Interest" or "Vulture Bargain Stocks" mentioned in this report or within the last year. GGR Members actively trade them and may increase or decrease their positioning at any time without further notice. For Mr. Arensberg's disclosed positioning, consult the individual tracking charts available on the GGR Subscriber pages of the Subscriber website. The author receives no compensation from any company mentioned in this report with the following exceptions: Brazilian Gold, Mega Precious Metals, Millrock Resources, Timberline Resources and Northern Tiger Resources are sponsors of GotGoldReport.com.
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| Gold Daily and Silver Weekly Charts - Negative Real Yields Are Good for Gold Posted: 11 Oct 2012 02:24 PM PDT | |||||
| 4 Facts Every GLD Investor Must Know Posted: 11 Oct 2012 02:06 PM PDT By Robert Ross, Hard Assets Alliance With a seemingly endless stream of macroeconomic risks coming down the pipeline every day – whether it is the risk of currency devaluation, sovereign debt defaults, bond market collapses, or the ever-present "fiscal cliff" – it's no wonder that investors have turned to the safety of precious metals. And [...]
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| Hacking Our Way to a Better Future Posted: 11 Oct 2012 02:00 PM PDT Synopsis: A fun and amazing overview of some of the interesting gadgets our tech team has discovered recently By the Casey Research Technology Team We love technology. We wouldn't invest so much of our time and money in all things tech – particularly the companies that we invest in and recommend in our Casey Extraordinary Technology service – if we didn't. And while firmly established publicly traded companies garner the bulk of our investment dollars, it's important to keep in mind where these entities got their start. Most successful tech ventures began in a garage, the back room at a university lab, or on some secret skunkworks project. Think Google (a computer lab), Microsoft (a dorm room), and Apple (a garage). So it behooves us – and all investors in the tech sector – to stay abreast of the latest developments coming out of these venues in hopes of stumbling upon the next billion-dollar idea. In this vein (and in the ...
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| Guggenheim on Gold: The "Return to Bretton Woods" Posted: 11 Oct 2012 11:36 AM PDT "It's my opinion that their price movements, particularly during the Comex trading session, were well contained." ...
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| Posted: 11 Oct 2012 11:35 AM PDT London Gold Market Report from Ben Traynor BullionVault Thursday 11 October 2012, 07:30 EDT SPOT MARKET gold bullion prices climbed back above $1770 an ounce during Thursday morning's London trading – still a few Dollars below where it started the week – as the Euro also recovered ground following falls overnight after Spain had its credit rating cut. Stock markets edged higher this morning, as did most industrial commodities, while US Treasury bonds fell and German bund prices gained. Silver bullion climbed as high as $34.33 an ounce, also slightly down on the week. "We are watching support [for silver] at $33.37," says bullion bank Scotia Mocatta's latest technical analysis. "A breach through that level…could indicate a double top in silver, which would target the low $31 level." The volume of gold bullion backing the world's largest gold ETF, SPDR Gold Shares (GLD), held steady yesterday at an all-time high of 1340.5 tonnes. Earlier this week, holdings of gold by all E...
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| Turk sees paper gold sellers losing in short squeeze soon Posted: 11 Oct 2012 11:16 AM PDT 1:10p ET Thursday, October 11, 2012 Dear Friend of GATA and Gold: GoldMoney founder and GATA consultant James Turk today tells King World News that the market for real gold is overpowering the sellers of imaginary paper gold and that a short squeeze with soaring prices is likely soon. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/11_T... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT GoldMoney adds Toronto vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, and the United Kingdom, GoldMoney customers now can store their gold and silver in a high-security vault operated by Brink's in Toronto, Ontario, Canada. GoldMoney also has recently partnered with Rhenus Freight Logistics to offer another gold storage option in Switzerland. The Rhenus vault is in the secured zone of Zurich Airport and offers customers superb security as well as the ability to inspect their gold. Storage at the new vaults in Canada and Switzerland is available at GoldMoney's lowest fees. Customers can select their storage location when placing their buy order. GoldMoney customers can take delivery of any number of gold, silver, platinum, and palladium bars from any GoldMoney vault, as well as personally collect their bars stored in the Hong Kong, Switzerland, and U.K. vaults. It's easy to open an account, add funds, and liquidate your investment. For more information, visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: 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 Intercepts Best Pt+Pd+Au Grades Yet Company Press Release VANCOUVER, British Columbia -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces more results of its 2012 drill program on the company's fully-owned Wellgreen platinum group metals, nickel, and copper project in southwestern Yukon Territory, Canada. Four surface holes and four underground holes all intercepted significant mineralized widths, ranging from 28.5 meters (WS12-201) and up to 459.5 metres (WS12-193). Highlights include WU12-540, which returned 8.9 metres of 5.36 grams per tonne platinum, palladium, and gold; 1.73 percent copper; and 1.01 percent nickel within 304.5 meters of 0.66 g/t platinum-palladium-gold, 0.20 percent copper, and 0.27 percent nickel. The surface drill program started in June and has completed 16 holes (assays pending for 12 holes) with two rigs now on site. The surface program continues to progress at a steady pace. Prophecy Chairman John Lee commented: "Wellgreen is a very large nickel, copper, and platinum group metals project with near-surface high-grade zones. High-grade intercepts will be incorporated into resource modeling and mine planning in the pre-feasibility study. We expect further positive drill results from Wellgreen shortly." Wellgreen features a low 2.59-to-1 strip ratio, is situated at an altitude of 1,300 meters, and is only 15 kilometers from the two-lane paved Alaska Highway. Those factors significantly minimize the project's indirect costs. For the complete company statement with full tabulation of the drilling results, please visit: http://prophecyplat.com/news_2012_sep11_prophecy_platinum_drill_results....
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| Gold Bounces Back after Spanish Ratings Cut Posted: 11 Oct 2012 11:00 AM PDT SPOT MARKET gold bullion prices climbed back above $1770 an ounce during Thursday morning's London trading – still a few Dollars below where it started the week – as the Euro also recovered ground following falls overnight after Spain had its credit rating cut. Stock markets edged higher this morning, as did most industrial commodities, while US Treasury bonds fell and German bund prices gained.
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| POSSIBLE PROFIT-TAKING EVENT IN PROGRESS Posted: 11 Oct 2012 10:38 AM PDT By Toby Connor, Gold Scents 
 I think we can expect a final bottom (if an intermediate decline has begun) either on the next FOMC meeting, or if the cycle stretches a bit, a bottom on or around the elections, once it becomes clear who's going to win the presidency. We took profits on our mining positions last week and put in place a strategy to allow us to weather an intermediate decline in the metals if it is now in progress, while still maintaining some exposure if the bull surprises to the upside and tests $1900 before dropping down into an intermediate correction. SMT premium newsletter. $10 one week trial.        Toby Connor A financial blog primarily focused on the analysis of the secular gold bull market. If you would like to be added to the email list that receives notice of new posts to GoldScents, or have questions, email Toby.
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| S&P Downgrades Spain’s Credit Rating Two Notches Posted: 11 Oct 2012 10:37 AM PDT Good day… S&P surprised the markets after the US close yesterday and announced a 2-notch downgrade for Spain taking them to BBB-, and didn't stop there, S&P also announced that Spain was being placed on Negative Outlook. This really took out any wind that existed in the euro's sails, and made for an ugly Asian session. Here's the skinny on what's going on here… S&P had basically joined Moody's and Fitch in this downgrade, and another Moody's rating cut could come by the end of November. IF that happens, then Spanish bonds would have to be dropped from bond indices around the world, and if that happens those bonds will have to be sold. So, now you see why the euro (EUR) saw the ugly side of trading in the Asian session last night. But then the Asian session rolled into the European morning session, and the euro bounced back, on the good results of an Italian bond auction. The euro has bumped up 0.25% since I've come in this morning, and is back to 1.29. So, this is a prime example of what I always say about traders' attention spans. I told you yesterday that Australia would print their employment data late yesterday, and of course they did. The Aussie employment data showed an increase of 14,500 net new jobs, and the Aussie dollar (AUD) bounced higher, as the consensus for new jobs was only 5,000. Full time employment in Australia, which had recently been slow, had a strong month in September. So, the last two days we had stronger-than-expected job growth, and good consumer confidence reports. Maybe this will cause the traders that are pushing for rate cuts to back off. Probably not, but at least we can hope. I told you yesterday that I thought, even though the markets didn't, that the Brazilian Central Bank (BCB) would cut rates 25 Basis Points (0.25%) and that's exactly what they did! I had someone, presumably from Brazil take offense with what I said yesterday that the Brazilian government and BCB had distastefully cut rates by nearly 5%… This fellow thought that the Brazilian government and BCB were cutting rates to help the citizens. Well, let's listen to what Brazilian Finance Minister, Mantega had to say about the latest rate cut. "The reduction in rates will help avoid the appreciation of the real by reducing arbitrage." THAT has been the true reason for the rate cuts, to debase the currency, to lessen the flows into the country that pushed the real (BRL) higher. Speaking of Brazil… Mantega also made an announcement yesterday at the annual meeting of the IMF. Mantega announced that the BRICS (Brazil, Russia, India, China, S. Africa) have agreed to create a pool of reserves to provide a rearguard of financial support. He said that this pool of reserves would be modeled after the Chiang Mai Initiative for Japan, China, S. Korea, and 10 S.E. Asian countries that have pooled $240 billion of emergency liquidity to fill any gaps and help smooth out global financial shocks. These are just pledges, folks. They don't really put the funds in the pool up front. They sign an agreement that promises they will provide "X" should the time come. It is believed that the BRICS will iron out the details of this pool of reserves at their next meeting in Mexico next month. The poor S. African rand (ZAR), has really been put through the wringer in recent weeks. The mining strikes just crippled the economy, and the rand was sold. But the past three trading days have seen some sun shine on the rand, as the labor unrest eases, and flows of investments into S. Africa are returning. I've always said that the rand is just too volatile for my taste, and the only way to buy is with the speculative portion of your investment portfolio, or in a basket so other currencies can smooth out the volatility. I'm not sure how to take this quote from US Treasury Secretary Geithner… He is in Tokyo for the IMF Annual Meeting, and had this to say about the Eurozone's progress with their debt crisis. "The region has a much more viable strategy to hold the system together. It's a much more powerful and promising path. They are better off today than they were before they reached agreement. The basic strategy is right and good." Long time readers know that the US Treasury Secretary isn't at the top of my Hit Parade. I can't talk about him like I used to, but just to remind everyone what the root of my feelings are. The US Treasury Secretary was the head of the Fed NY, before the financial meltdown. The Fed NY was responsible for a lot of policies that didn't get followed by regulators before the meltdown. And, something my old friend and former colleague taught me many years ago, the regulators might have been responsible, but the top guy was accountable. And that's all I'll say about that… But now, you can see why I shudder when the US Treasury Secretary praises the Eurozone's debt crisis plan. It makes me think that there are glaring problems. But maybe I'm just being too cynical, eh? In Japan overnight, more gloom, despair and agony for the Japanese economy. A leading indicator of capital spending, orders for machinery, fell -3.3% in August from the previous month. Add this to the recent reports that exports and industrial production are in decline, and you've got an economy that barely has a pulse. Which is why I have long questioned the strength of the Japanese yen (JPY). The Japanese, from day one of their now 2 "lost decades", did what we are trying to do now — artificially stimulate an aged economy. It didn't work for them; I wonder why we think it will work for us? I mean, I get it, the Japanese save, and we spend; that's what makes us different in this arena. But, we can't spend when we don't have jobs (well we can as long as the government keeps mailing the checks or credit cards, but eventually that runs out!) Sweden saw their Consumer Price Index (inflation) slow down in September. CPI was +0.4% versus +0.7% in August. This is very good fundamentally for Sweden, but, I'm afraid the central bank/Riksbank will view this as an opportunity to cut rates, or at least leave them unchanged, and reverse the earlier indication that rates would rise here. And that's not good for the krona (NOK). But remember, the Swedish krona (SEK) and the Norwegian krone, are not a part of the euro, but at this point in time, seem to get tarred with the same brush used on the euro. I truly believe that will change at some time in the future, for like I've said over and over again, eventually investors and traders will see that Norway's fundamentals (and Sweden's) are not the same as the euro. Gold is up $8 this morning, after seeing selling the past two days. There was nothing to cause the selling the past two days, so it's nice to see gold get back on the rally tracks. Silver is up 28-cents to $34.27, so it's also seeing a strong performance this morning. The S&P announcement on Spain probably has a lot to do with the return to the rally tracks. One of the things I always talk about in my presentations when I talk about gold and silver, is the fact that there is only so much of either one. Which is a great reason why the prices of these metals should always be strong. I saw this data on silver and thought it played well with that thought. US mined silver output was down 12% in July, compared to July 2011. And with the gold and silver ETFs now demanding so much physical metal to back their funds, you have to wonder about mining and production. Then There Was This… From Zerohedge.com (one of my fave websites to visit). This is an article posted by the chief investment officer of Guggenheim Partners in New York and Chicago, Scott Minerd, who concentrates on an angle often raised by Jim Sinclair, the (purported) US gold reserve's "coverage ratio" of the US money supply. Minerd writes: "The US gold coverage ratio, which measures the amount of gold on deposit at the Federal Reserve against the total money supply, is currently at an all-time low of 17 percent. This ratio tends to move dramatically and falls during periods of disinflation or relative price stability. The historical average for the gold coverage ratio is roughly 40 percent, meaning that the current price of gold would have to more than double to reach the average. The gold coverage ratio has risen above 100 percent twice during the 20th century. Were this to happen today, the value of an ounce of gold would exceed $12,000. "Well, dear reader, my guess currently stands at $18,000/ounce, so the estimates are getting closer. But if gold only makes it to $12,000/ounce, I'm sure I'll manage somehow…as silver will be many hundreds of dollars per ounce…and the 'new' gold." Chuck again. WOW! Those are some lofty figures being tossed around in that article! I remember when the Big Boss, Frank Trotter and I would talk about the price of gold, back when it wasn't even $1,000 and the thoughts were that gold could go to $2,000. We would agree that while for gold holders $2,000 would be great, we worried about what the US economy would look like. I think we're getting to see that real time, eh? To recap. S&P surprised the markets with a 2-notch downgrade of Spain's credit rating. This caused all kinds of problems for the euro in the Asian session, but the single unit has rebounded in the European session on the news that Italy had a very strong bond auction this morning. Brazil did cut rates 25 basis points, and announced a new pool for the BRICS that will be modeled after the Asian reserve pool. Chuck Butler S&P Downgrades Spain's Credit Rating Two Notches appeared in the Daily Reckoning. Subscribe to The Daily Reckoning by visiting signup for an Agora Financial newsletter. More articles from The Daily Reckoning….
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| A Good Time For Gold and Silver Posted: 11 Oct 2012 10:37 AM PDT Good day… And a Wonderful Wednesday to you! A day off from the Nationals-Cardinals series, so a day to recharge the batteries, which is what I did yesterday afternoon. I had already seen the NY market participants and traders take down the currencies and metals, and I had seen enough! So, yesterday morning, I told you I was watching the currencies ratchet higher, probably on the excitement of the Eurozone's ESM opening for business. But that excitement didn't have strong legs, and once the NY markets opened, they saw to it, that the excitement was a thing in the rear view mirror. So much for that! Right now, the euro (EUR) has bounced off the low of 1.2850, but it sure looks vulnerable to more takedowns. Well, there were a couple of developments overnight. The Aussie dollar (AUD) is the best performer overnight. Aussie consumer confidence increased by 1% versus the previous month, and iron ore prices were up another 6%… The total increase in the iron ore prices since reaching a low in September is 35%… Remember that the selloff of iron ore this summer put a lot of pressure on the Aussie dollar, so, hopefully, we can count on the opposite to take place here. And if the price action from overnight is any indication, we don't have to hope any longer! The Aussie unemployment data will be printed late this afternoon (tomorrow morning for them), and this data has really surprised to the upside lately. The other thing we saw in the overnight markets was a strong Industrial Production report for August in Sweden. And Norwegian inflation was bang on with expectations. So, both of these currencies should find some good footing today. But then, that's just me in my old frame of mind that currencies increase in value when they have strong fundamentals. Inflation in Norway is only 1.1%… Pretty impressive, as long as the Norges Bank (Norway's Central Bank) doesn't see this as an opportunity to cut rates again. But Norges Bank Governor, Olsen, has indicated that a rate increase could come as early as December, as he tries to throw cold water on the house price rally going on in Norway. So, the euro… Yesterday it was all seashells and balloons for the single unit, until the NY traders arrived. What caused them so much worry that they sold euros versus dollars? Too many speakers. That's what I think. The Eurozone has too many speakers, speaking what's on their respective minds. And they give conflicting opinions, which just ruins the soup. As they say, too many cooks in the kitchen. And then there was German Chancellor, Angela Merkel, visiting Greece. To the Greek on the street, Merkel is not a nice person, for she is blamed for all their austerity and pain. But that's apropos for today, given everyone's — and I mean everyone's — propensity to look to blame others. I could go on as to my opinion as to where this started, but I don't have the time or space! But seeing the Greeks protest was a reminder to the markets that while there hasn't been anything notable to upset the applecart lately in the Eurozone, there are still problems. Which was my point yesterday, talking about the ESM. It doesn't solve their debt problems, but it does give them some time to deal with them, without the markets barking in their ears. Well… Japanese leaders are once again talking the talk, but not willing to walk the walk. Japanese Prime Minister, Noda, said yesterday to Bloomberg News that "the yen's strength is a serious problem and is out of step with Japan's economic performance, and when necessary, we will take decisive action." Haven't we heard all that before? Of course we have, but the Japanese leaders really have used all the arrows in the quiver a long time ago. All that's left to them is to coordinate a massive yen (JPY) intervention, if they seriously want the yen to weaken. But who would they recruit to participate in this coordinated intervention to sell yen? The US? Hardly. Think about it… The US needs the weak dollar, so why would they participate to strengthen the dollar? Same goes for the Eurozone, while they don't want a weak euro like the dollar, they don't want to argue with the fact that the euro is weaker than it was a couple of years ago, and that fuels their exports. So, why would they want to upset the export applecart? Without the US and Eurozone, Japan is left with the UK or they are left holding the bag of containing a stronger yen than fundamentals dictate. And not to be outdone by Noda… The Swiss National Bank's (SNB) Chairman, Jordan, wanted the markets to know that the SNB was going to defend its arbitrary ceiling for the franc (CHF) that has been in place for over a year now. Jordan said, "An appreciation of the Swiss currency at the current juncture would pose a serious threat and the SNB will not permit an appreciation." So, I guess Noda can't look to Switzerland for help with his coordinated intervention. And the Brazilian Central Bank (BCB) will meet today to discuss interest rates. Most observers are of the belief that the BCB will keep rates steady. I on the other hand, have seen the BCB surprise the observers on more than one occasion during this rate cut cycle that has seen nearly 5% of rate cuts dropping to the floor. Therefore, I wouldn't put it past the BCB to cut rates again, just for good measure. This rate would be smaller than their usual large cuts, so, I'm looking for 25 basis points which would bring Brazil's internal rate to 7.25%… The Brazilian government and BCB have done a masterful job of debasing the real (BRL). That's not a complement for these two, folks. I find it to be very distasteful to watch a central bank debase a currency over and over again. Thank you, sir, may I have another? Pretty ugly in Brazil, and I really thought a couple of months ago that the BCB was near their end for rate cuts. I guess I was wrong. The 10-year Treasury yield has gained 11 basis points in the past week. One of these days, that will be the sign, but I'm not so sure it's the sign now… The sign that the Treasury bubble is about to pop. But still, if you had sold Treasuries in the past year, and bought gold, you would be looking like an investment guru! I saw a report that showed the interest expense lowered in 2012. Think about that for a minute. We issued tons of new debt, and still the interest expense was lower. Now, either the data was bad, or that's the benefit of having yields so low. But what happens when yields rise? OK. Let's not go there today, Chuck… you're feeling pretty good this morning, just move along. Well… As I go back through today's Pfennig to see what I've written so far, I find the overarching theme that seems to exist is that currency debasement is all around us. And as long as that is the overarching theme, we should look to gold and silver. And what I'm seeing in gold and silver these days is that they are becoming mainstream. I still hear old-school investment people call the precious metals "alternative investments". But, that's just because they are old-school. I saw a great quote by the chief investment officer for Royal Bank of Scotland, who said, "Some clients ask where gold prices are going, and I say I don't even think about prices. It's a store of value." Pretty good quote, I think. Then There Was This… From Bloomberg… "The US Commodity Futures Trading Commission may decide as soon as this week to appeal a judge's ruling against trading limits for oil, natural gas and other commodities, according to two people briefed on the matter. "The five-member commission plans to vote following a recommendation from the agency's general counsel's office to appeal the ruling, according to the people, who spoke on condition of anonymity because the schedule is private. US District Judge Robert Wilkins ruled on Sept. 28 that the CFTC failed to assess whether the limits imposed under the Dodd-Frank Act were necessary and appropriate. "The decision blocked rules scheduled to take effect Oct. 12 that were challenged by the Securities Industry and Financial Markets Association and International Swaps and Derivatives Association Inc. The associations represent JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley and other banks and energy-trading firms." Chuck again. Let's hope that at least the position limits component of this legislature is approved, that would be a dagger to the heart of the gold and silver price manipulators, who have pushed hard for this ruling by the federal Judge. To recap. The excitement around the opening of the Eurozone's ESM was dropped like a bad habit once the NY traders arrived yesterday, and the things that go bump in the night in the Eurozone, came back to everyone's minds yesterday, as the German Chancellor visited Greece with thousands in the streets protesting. Australia, Sweden and Norway saw good data but only the Aussie dollar was able to take the data and gain overnight. Look for Brazil to cut rates today, and the overarching theme of what Chuck was talking about today, is currency debasement, which should be good for gold and silver. Chuck Butler A Good Time For Gold and Silver appeared in the Daily Reckoning. Subscribe to The Daily Reckoning by visiting signup for an Agora Financial newsletter. More articles from The Daily Reckoning….
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| Another thoughtful speculation on a huge upward official revaluation of gold Posted: 11 Oct 2012 10:37 AM PDT GATA 11:43p ET Wednesday, October 10, 2012 Dear Friend of GATA and Gold: Zero Hedge today called attention to another thoughtful speculation on the rationale for an official revaluation of gold to a price far higher than the current paper-suffocated price. It was written by the chief investment officer of Guggenheim Partners in New York and Chicago, Scott Minerd, who concentrates on an angle often raised by Jim Sinclair, the (purported) U.S. gold reserve's "coverage ratio" of the U.S. money supply. Minerd writes: "The U.S. gold coverage ratio, which measures the amount of gold on deposit at the Federal Reserve against the total money supply, is currently at an all-time low of 17 percent. This ratio tends to move dramatically and falls during periods of disinflation or relative price stability. The historical average for the gold coverage ratio is roughly 40 percent, meaning that the current price of gold would have to more than double to reach the average. The gold coverage ratio has risen above 100 percent twice during the 20th century. Were this to happen today, the value of an ounce of gold would exceed $12,000." That sort of gold pricing will come in handy as a Big Mac then likely will cost $30. Minerd's speculation is headlined "Return to Bretton Woods" and it's posted in PDF format at Zero Hedge here: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2… CHRIS POWELL, Secretary/Treasurer * * * 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:
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| The wonder is that he’s not already president of the New York Fed Posted: 11 Oct 2012 10:37 AM PDT GATA Greek Central Banker's Big Payoff By Stephen Grey and Nikolas Leontopoulos http://www.reuters.com/article/2012/10/11/us-greece-bog-provopoulos-idUS… ATHENS — The governor of the Bank of Greece was given a severance payment of 3.4 million euros when he left his former employer, a major bank that he now regulates, documents seen by Reuters show. George Provopoulos was awarded the sum when he stepped down as vice-chairman of Piraeus Bank to become governor of Greece's central bank and a member of the board of the European Central Bank in 2008. The scale of the pay-off, previously unknown to most Greeks, is likely to prove controversial, amounting to nearly 2.8 million euros ($3.6 million) after tax. As governor of the central bank, Provopoulos, now 62, has played a key role in propping up Greece's banking system, which has received billions of euros in liquidity from the ECB and is in line for up to 50 billion euros of new capital from the bailout provided by euro zone countries and the International Monetary Fund.
The Bank of Greece said Provopoulos faced no conflict of interest from his severance deal and had fully informed the authorities of the payment. When Reuters sent questions to Provopoulos, the Bank of Greece legal department responded: "In compliance with the applicable Greek law, Governor Provopoulos declared the severance payment to all pertinent tax and judicial authorities." In a letter to Reuters, Dr Vassilios Kotsovilis, the bank's legal director, added: "The severance payment, having been agreed upon at an earlier time and under very different (pre-crisis) circumstances, was neither of an arbitrary nature nor of an extra-ordinary nature." Kotsovilis said details of the payment were reported in "the press and blogs of the period." However, Reuters was unable to find mention of the payment despite extensive searches in both Greek and English. Piraeus, which is suing Reuters over a previous report about the bank, said in a statement: "In view of legal proceedings … we consider it inappropriate to comment in any detail." It added: "It goes without saying that Piraeus Bank has always fully complied with the rules and regulations governing the Greek banking sector." Provopoulos, a former chief executive at Emporiki Bank, Greece's fifth largest bank, joined Piraeus, the fourth largest, on October 18, 2006. As a vice-chairman and managing director, he was entitled to a net salary of 580,000 euros, plus expenses and a bonus. On May 22, 2008, he resigned from Piraeus after 19 months service. Documents seen by Reuters indicate that, on the day before he left the bank, its directors approved a severance payment of 2,775,000 euros, in addition to his pay of 325,704 euros for five months work that year. The Bank of Greece confirmed the severance payment was 3.46 million euros before tax and was paid to Provopoulos that month. It amounted to more than two million euros per year of service. Almost a year later the deal appeared in minutes of a Piraeus shareholder meeting held on April 30, 2009, which sought retrospective approval for the payment. Though such shareholder meetings are open to the press, the payment appears to have passed unnoticed. Louka Katseli, a former Greek economy minister and now professor of Economics at the University of Athens, was one of those unaware of the payment, despite being a prominent opposition politician at the time. When told of the payment this week, she said: "I had no prior knowledge of Mr. Provopoulos's severance." George Gougoulis, the president of ESETP, a staff union within Piraeus Bank, was also unaware of the payoff to Provopoulos. "We have repeatedly asked the Bank to disclose to us information about the way top executives and members of the Board are remunerated, for instance by stock options, and they have always refused that," he said. The scale of Provopoulos' payment is notable when set against what minutes of shareholder meetings record for payments to other directors who have departed Piraeus. Another vice-chairman, Theodoros Pantalakis, was on a similar level of remuneration at Piraeus to Provopoulos and left in December 2009 after working for the bank since 2004. He was given a pay-off of 470,000 euros, according to shareholder minutes, amounting to less than 100,000 euros per year of service. By comparison, Provopoulos' payoff was three times his after-tax annual compensation, according to the Bank of Greece. Pantalakis told Reuters that any payments to him were "as recorded in minutes of shareholder meetings." His severance payment may have been lower because of the worsening credit crunch at the time of his departure. He said of the payment to Provopoulos: "I don't find it peculiar, I don't have any recollection that something was out of line." Michalis Colakides, another former vice chairman and deputy chief executive of Piraeus, left the bank in 2007 after seven years of service. Piraeus accounts record no severance pay for Colakides that year, though Colakides told Reuters that he received a payment equal to two years salary. He declined to comment further. A spokesman for Piraeus said: "The remuneration of Piraeus Bank's senior management has been established and duly approved by all the relevant corporate committees and bodies, in full compliance with all applicable internal and external regulations and duly recorded as such in the bank's financial statement." In response to Reuters inquiries about Provopoulos' financial arrangements with Piraeus, the Bank of Greece said that "detailed answers have been given to the Greek parliament," and other relevant authorities. The issue arose in parliament in 2009 because rumors had been circulating in banking and political circles about a large investment loss suffered by Provopoulos a few months after he left Piraeus. In September 2007 he and other senior executives of Piraeus had taken out loans from the bank to buy shares in a rights issue it was staging. According to one former Piraeus manager, all senior figures at the bank were asked to take part when the bank's then executive chairman, Michael Sallas, announced he would raise 1.35 billion euros by issuing approximately 67 million new shares. "Everyone got a letter that said something like: 'Here is your allocation of shares. Your loan is pre-approved. Sign here!'" said the former manager. Bank of Greece rules allow banks to finance the participation of employees in rights issues. Piraeus declined to comment on the rights issue and the loans because of legal proceedings against Reuters. In May, Piraeus announced it was suing Reuters over an earlier report about the bank renting properties owned by companies run by Sallas and his family. The bank is claiming 50 million euros in damages. Reuters stands by the accuracy of its report. According to stock exchange records, on September 17, 2007 Provopoulos bought 212,911 shares in Piraeus, having purchased the rights to participate in the offer a week earlier. To cover the cost Provopoulos took a loan from Piraeus for 5,024,812 euros, according to his own later declarations. He bought another 23,250 shares on December 28, 2007, under a share option scheme. After leaving Piraeus, Provopoulos held onto his shares for three months while he was governor of the central bank overseeing the banking system. He had informed legal advisers and been told that "the ownership of the portfolio did not … influence in any way the legality of his duties", his office later told parliament. Provopoulos sold the shares in October 2008 after the collapse of Lehmann Brothers sent bank shares plunging. He realized 2,449,256 euros — far less than his outstanding loan to Piraeus. Speculation about Provopoulos' debt to his former employer prompted Michael Karhimakis, then a Pasok MP, to ask questions in the Greek parliament. Provopoulos responded with a formal statement from the director of his office. It said he had suffered an "important loss" on his Piraeus shares and repaid his loan to the bank with the proceeds of the share sale plus a personal cheque for 2.1 million euros. The statement to parliament made no reference to the fact that Provopoulos had been granted a severance payment of 3.4 million euros by Piraeus. There was no legal obligation for Provopoulos to declare his severance payment in parliament and the Bank of Greece said it was not mentioned "due to the fact that the then-asking MP confined his questions to the sale of the shares of Piraeus." But Karhimakis, the former Pasok MP, told Reuters that, in his opinion, Provopoulos had a moral duty to disclose the payment and make clear his assets and their source. "This is a period when transparency for public figures is needed more than ever," he said. Provopoulos' salary as governor of the central bank is not published. But the Bank of Greece told Reuters his salary is 50 per cent lower than it was when he took office, after he had accepted two pay cuts during the country's austerity drive. Provopoulos now receives an after-tax 'monthly' salary of 7,615 euros paid, as for many Greek public officials, 14 times a year, said the central bank. In August, Provopoulos defended Piraeus's takeover of ATE in the Greek parliament. When lawmakers questioned him about Reuters reports involving Sallas, Provopoulos was dismissive. He said the reports referred "to isolated incidents, implications that are presented as facts and selected parts of statements by experts and non-experts to arrive at an arbitrary conclusion in my opinion — that the Greek banking system is suffering from bad corporate governance and inadequate regulation." If this were true, Provopoulos said, "then today there would no banks left standing." 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:
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| Gold suppression researcher Dimitri Speck interviewed by Lars Schall Posted: 11 Oct 2012 10:37 AM PDT GATA 11:16p ET Wednesday, October 10, 2012 Dear Friend of GATA and Gold: GATA's friend the German financial journalist Lars Schall today interviews German market analyst and GATA consultant Dimitri Speck about gold price suppression. Speck is author of the gold price suppression study "Geheime Goldpolitik" ("Secret Gold Policy") and partner in the European investment house Staedel Hanseatic. The interview is a 24-minute video headlined "Gold Market Manipulation Explained" and it's posted at Schall's Internet site here: http://www.larsschall.com/2012/10/10/gold-market-manipulation-explained/ CHRIS POWELL, Secretary/Treasurer * * * 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:
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| Norcini sees central bank support for gold, rise above $1,800 Posted: 11 Oct 2012 10:37 AM PDT GATA 11:20a ET Wednesday, October 10, 2012 Dear Friend of GATA and Gold: Futures market analyst Dan Norcini today tells King World News where he sees the support and resistance lines in gold. Norcini thinks central bank buying will continue to support the market and that the price will punch through $1,800 eventually. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/10_M… CHRIS POWELL, Secretary/Treasurer * * * 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:
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Will the most divisive campaign in modern American history culminate in massive riots in our major cities? Right now, supporters of Barack Obama and supporters of Mitt Romney are both pinning all of their hopes on a victory on November 6th. The race for the presidency is extremely tight, and obviously the side that loses is going to be extremely disappointed when the election results are finalized. But could this actually lead to violence? Could we actually see rioting in communities all over America? Well, the conditions are certainly ripe for it. A whole host of surveys over the past few years have shown that Americans are very angry and very frustrated right now. In fact, a Pew Research Center poll from late last year found that 
Did COMEX futures just reveal a Freudian glitch? Futures data this morning indicated a value of 
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