Gold World News Flash |
- Gold Seeker Weekly Wrap-Up: Gold and Silver Fall About 1.5% and 3% on the Week
- By the Numbers for the Week Ending October 12
- Wynter Benton Group States Will Demonstrate Ability to Move Silver Beginning OCT 16th
- Gold & Insane Central Banks Printing Trillions
- Physical gold and silver needed to weather the coming financial tsunami
- The Gold Price Lost $10.80 Closing at $1,749.20
- The Great Chess Game
- In The News Today
- Mike Krieger Topples The Last Domino
- As money hides away, gold heads for a blowoff
- 'Giffen good' or not, gold may be good enough
- NASDAQ Drops Most In 5 Months As Leaders Languish
- Gold Daily and Silver Weekly Charts - Selling in the Afternoon
- Bigger Hangover Ahead
- Gold and Silver Disaggregated COT Report (DCOT) for October 12
- COT Gold, Silver and US Dollar Index Report - October 12, 2012
- Guest Post: What Form Of Silver Should You Hold?
- GATA secretary to be interviewed Saturday on radio from Phoenix
- Turnaround Rally In Heavy Rare Earths As U.S. Develops Independent Supply Chain
- Fleckenstein - Gold & Insane Central Banks Printing Trillions
- How to Profit from the Imbalance in Platinum and Zinc Inventories: Matthew O'Keefe
- Cheap Gold Stocks 4
- The Daily Market Report
- Silver's October Correction
- Jeff Clark: The Solar Silver Thrust
- Gold Prices Ease; And What's This About Monetizing Britain's Debt?
- Gold Prices Ease; And What's This About Monetizing Britain's Debt?
- LGMR: Market "Lacking Impetus" to Push Gold Higher, But "Ultra Loose" Central Bank Policies "Should Preclude Sharp Falls"
- A Formula for $12,000 Gold
- Are Gold Stocks Cheap?
| Gold Seeker Weekly Wrap-Up: Gold and Silver Fall About 1.5% and 3% on the Week Posted: 12 Oct 2012 10:00 PM PDT Gold climbed up to $1773.02 in early New York trade, but it then fell back off into the close and ended near its midafternoon low of $1752.24 with a loss of 0.74%. Silver slipped to as low as $33.46 and ended with a loss of 1.47%.
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| By the Numbers for the Week Ending October 12 Posted: 12 Oct 2012 08:58 PM PDT This week's closing table is just below.
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| Wynter Benton Group States Will Demonstrate Ability to Move Silver Beginning OCT 16th Posted: 12 Oct 2012 08:54 PM PDT from Silver Doctors:
October 16 to October 23, 2012 By wynter_benton . Oct 10, 2012 10:58 AM The Leader wishes to inform our followers that the group will be demonstrating our ability to move the price of silver between October 16 to October 23, 2012. We will be updating our moves in real time during this period. Hold on to you seats because what you are about to see will dwarf what we did in February 2011.
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| Gold & Insane Central Banks Printing Trillions Posted: 12 Oct 2012 08:30 PM PDT from KingWorldNews:
Today Bill Fleckenstein told King World News, "I think that we are in a new era, a new regime, in terms of how reckless these central banks are willing to be." Fleckenstein, who is President of Fleckenstein Capital, also stated, "So we have these out of control central banks, and I think it shocked people that Bernanke was willing to go as far as he was." Fleckenstein also discussed gold, but first, here is what he had to say about reckless central banks: "It should be obvious you can't run a printing press to finance government debts, and it is obvious, but yet they are getting away with it. It is not clear as to when this will end or what will be the catalyst to make it end?" Bill Fleckenstein continues @ KingWorldNews.com
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| Physical gold and silver needed to weather the coming financial tsunami Posted: 12 Oct 2012 08:00 PM PDT by David Levenstein, SilverBearCafe.com:
After trading within a hair of $1800 an ounce last week, gold prices have met with some resistance and have pulled back slightly. As the yellow metal struggled to break through this key level of resistance, it notched up new record highs in euros and Swiss Francs. And, in South Africa as the gold price has risen, the Rand fell by around 10% in a month due to the on-going strikes at the various gold and platinum mines as well as general unrest throughout the country. This pushed the prices of Krugerrands on the domestic market to above R16, 000 each for the first time ever. Although it is evident that we are still in a major bull market in gold, which is unlikely to peak for a long time to come, and despite the fact that South Africa has a long history with gold, having been a major producer for decades, thanks to the local radio and TV business channels, so much misinformation has been propagated about gold, it is unbelievable. During the run up in prices from $700 an ounce to $1900 almost all of the so called experts who appeared on CNBC continually denigrated gold as an investment as they were totally incapable of distinguishing between gold bullion and gold mining shares. Read More @ SilverBearCafe.com
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| The Gold Price Lost $10.80 Closing at $1,749.20 Posted: 12 Oct 2012 06:40 PM PDT Gold Price Close Today : 1,758.00 Gold Price Close 5-Oct : 1,778.60 Change : -20.60 or -1.56% Silver Price Close Today : 33.67 Silver Price Close 5-Oct : 34.52 Change : -0.85 or -2.45% Gold Silver Ratio Today : 52.21 Gold Silver Ratio 5-Oct : 51.53 Change : 0.68 or 1.32% Franklin Sanders did not post GOLD PRICE commentary today as he is busy with the Transformations and Renewals Conference. He will return Monday. 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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| Posted: 12 Oct 2012 06:01 PM PDT Authored by Luke Eastwood, The Great Chess Game Everyone is aware of a multitude of problems that besets our world, however the nature of these problems and why they exist is distorted by the media and by governments all over the world. Our leaders, corporate heads, military top-brass etc. all have a fairly good idea of what is really happening, they just don't want us – the ignorant masses known as the general public to know what they know. The multiple crises on this planet are caused by our insane mode of living – one that seems to be dominated by economics. Our way of life (unfortunately now for most of the world) depends on an ever-expanding economic system, for if it is not expanding it is contracting. This system was all well and good while there was plenty of capacity for continued expansion, but unfortunately for all of us the limits of expansion are not far off. The 'people in the know' are well aware of this, although they are not going to admit to anyone outside of their 'club' that this is the case, at least not in any direct or honest manner. Capitalism requires growth and markets to exploit – in the past there were always new markets and new people to exploit, which fueled growth and the resources needed to run the engine of commerce seemed inexhaustible. At this point in time the number of new markets is shrinking, the number of people who can be easily exploited is shrinking and the availability of resources is shrinking. So that really doesn't leave modern 'civilised' countries or coalitions of countries with a lot of options with regard to the continued expansion of their economies. It strikes me that there are only really three options available:
Hopefully you will realize that option 1. is my little joke and that option 2. is in the realms of megalomaniac fantasy. Unfortunately for us, many of the people in powerful positions in the world are hopeful of achieving something equivalent to option 1. (e.g. colonizing Mars) and are quite confident of achieving option 2.; hence are still not even close to considering option 3. It seems that option 2. is the historical precedent for solving economic woes, generally implemented through war and the by-products of this – famine, sickness, relocation and disempowerment etc. If we look at the current global situation it is clear that there is a struggle for power and resources, which is only partially viewable to the ordinary 'man in the street'. The intrigues and complexities of this struggle or game are concealed from the average consumer of mainstream media. This has been the case for a long time, which is clearly evidenced by the periodic release of state secrets relating to events of previous decades – in some cases clandestine activities/ambitions of up to a century ago. Despite the clear evidence that we have been continuously lied to in the past by mainstream media and our governments, it seems that many people do not seem to correlate that information with current lying and propaganda. The truth is that this struggle for dominance and control is like a giant chess game, with USA and its allies/friends on one side of the board and Russia/China and their allies/friends on the other. They represent the kings and queens of this game and ultimately decide the strategy and the actions of their 'pieces'. Countries like Britain, France, Japan, Iran, Saudi Arabia, Israel, Turkey, India etc. represent the middle ranking pieces – they are important players in the game, they are not instantly expendable but they are coerced or seduced into following the game plan. The pawns of the game are all the other minor and relatively powerless countries that make up the world. These are all seen as expendable, but at times they may be given an inflated sense of their own worth by either or both sides in order to achieve a goal. Of course, like a real pawn, once their purpose has been fulfilled or they are no-longer useful they are thrown to the wolves or just ignored. Two perfect examples of a pawn are Afghanistan and Iraq – neither were particularly unique strategically, in terms of resources or influential politically or militarily. For a time Iraq seemed important but it was just a piece being played as a part in a much larger game. Afghanistan seemed important for a while both to the Americans and the Soviets but (in terms of the game) again it is just a fairly resource-rich non-entity that needed to be exploited as part of a far greater plan. What many people in the world do not understand is that this great chess game is about control of resources and their flow around this planet. He who controls the oil, gas, rare-earth metals, uranium, water, and food has control of everybody else. The instability in the Middle East may appear to be related to terrorism, the struggle for democracy or religious preferences but this is all just a smoke screen. If we look below the surface we can easily see that this is about transit routes of resources – in particular for oil and gas. The big boys (USA, China and Russia) are jostling for position, their allies want in on the action (as a kickback for helping out) and the fate of the remainder rests on the success of the competing strategies for dominance of the board. Unfortunately for us, this obsessive game over resources seems to completely ignore the basic premise that we must continue to live in a world of finite resources. Instead of deciding to give up the game and concentrate on finding a way to remodel society in a way that can sustain our future; the game seems to have intensified in recent decades. I would liken this to two men on the Titanic fighting over the silver cutlery while the ship continues to sink! I wonder at what point governments will actually wake up to the fact that these 'traditional' solutions can no-longer work in a world where there is nowhere new left to colonize, nowhere new to discover, and precious few new resources to find. Of course, people pay lip-service to the ideas of a new paradigm at the UN, at environmental summits etc. but this is really just candy-floss. The big boys and their minions are still focusing most of their energy, political, intellectual and creative resources on fighting to maintain their economies instead of seeking solutions to a glaringly obvious problem. It's high time that the 'superpowers' and their allies took a serious look at option 3. (a new economic paradigm). Once the penny drops that our system is fatally flawed, the necessity for economic, psychological and physical warfare becomes redundant. Once we truly accept that we cannot have infinite growth, that our planet and human society is in danger of collapse then it should shift our focus away from conflict towards co-operation. Humans are selfish creatures, we all want the best for ourselves, our family, our town, our tribe, our country – that is just part of human evolution that has enabled us to succeed. However that competitive streak has outlived its purpose and is in fact destroying us. The ultimate in selfishness is really the desire to survive – don't we all want to survive (and hopefully prosper)? If we are going to fulfill that ultimately selfish wish then it's actually necessary for us to evolve beyond competing and abandon clearly failed and destructive actions. Co-operation is the only real hope for humanity. It's time for the game players to tear up the chess board and throw it away forever. And if our governments do not want to change or listen then it is up to all of us to make sure that they do – for our own selfish desire to live and to have a country and a planet to live on.
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| Posted: 12 Oct 2012 04:18 PM PDT GOLD – The Simple Facts Nicholas J. Johnson, Mihir P. Worah For more than a millennium, gold has broadly managed to maintain its real value, even as various currency regimes have come and gone. The supply of gold is constrained, and we see demand increasing consistent with global economic growth on a per Continue reading In The News Today
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| Mike Krieger Topples The Last Domino Posted: 12 Oct 2012 04:11 PM PDT Via Mike Krieger of Liberty Blitzkrieg blog, Whenever you find yourself on the side of the majority, it is time to pause and reflect. I think we're being run by maniacs for maniacal ends and I think I'm liable to be put away as insane for expressing that. We the people are the rightful masters of both Congress and the courts, not to overthrow the Constitution but to overthrow the men who pervert the Constitution. The Last Domino Earlier this year I wrote a piece titled Six Months Left…Can They Do It? in which I questioned whether the Administration and its cronies at the Federal Reserve and elsewhere would be able to hold things together in a relative calm until November 6th. I wasn't sure of their ability to do so, but I understood that everything would be thrown toward this objective, legal and illegal, to make it happen. Well here we are, and to some degree they have held the undeniable disaster that is very apparent underneath the superficial surface of American society from exploding upwards. Back in May I wrote:
It was always my contention (and still is) that if they successfully kicked the can until the election then there would be absolute hell to pay afterward. That payment is now due. The best way I can describe what I think the next six months will look like is: Europe. Think the periphery countries. Everything that we have seen in Greece, Spain and the other "PIGS" will be coming to America. Investors have become completely lulled to sleep by recent benign trends in U.S. markets. There is this almost religious belief that treasury yields will move sharply lower in an economic downturn or stock market plunge. I am not saying this won't be the case, but it is certainly not set in stone. In the PIGS nations, we saw both collapsing economies and stock markets as well as soaring sovereign yields. Can't happen here? Never say never. That said, my assumption is that in the initial stages of the forthcoming move we could see treasury yields move lower as stocks head down to reflect the reality of the the much deteriorated earnings and economic environment as well as the realization that no real stimulus is coming other than continued money printing (which will not help the economy one bit). However, the one assumption that I think will be proven incorrect almost immediately is the notion that precious metals must get sold off hard in an equity market drop. The metals have been officially capped by Central Planners in biblical fashion over the past 12-18 months, and a lot of physical has simply been taken off the market that will not be coming back. We have also seen the Italian and Portuguese populations fleeced of their metal in this year long correction, as well as lower income folks in the United States, when we saw earlier this year when EZCORP Inc. told us that pawn shops were running out of gold. Physical metal will not be available at these prices when people realize how much they need them and any manufactured paper dips will be bought aggressively. Dow/Gold Ratio is the Tell The biggest mistake I made in the past year or so was a failure to realize the step by step fashion in which the global monetary and financial system would fall apart. It is certainly happening in a slower manner than I had anticipated, but make no mistake about it; it is happening. Like everything else, in retrospect, it becomes much more obvious. Since the entire world is linked into the fiat petro-dollar monetary standard, the entire world suffers as the system breaks down. While it was tempting to assume the U.S. would get nailed the hardest, what many people missed, including myself, was that the U.S. would be the last domino to fall. Whether people want to accept this or not, the U.S. has unfortunately morphed into a global empire. So as the empire crumbles, it is actually the regions of the empire that collapse first, one after the other. The first evidence of collapse occurred in North Africa with the "Arab Spring." This makes sense as this part of the world is most vulnerable to the pressures evidenced by global systemic failure. They were in essence the "weakest link" in the chain. Shortly afterwards, the PIGS experienced similar economic collapse and social unrest. Unrest that continues to this day. Most recently, we have witnessed the collapse of China's "economic miracle." What people fail to comprehend is that China's recent decline is completely linked to the decline of the monetary system itself as well. Let me explain. China is attached to the hip of the U.S. empire as a result of its foolish decision to put trillions of its fiat U.S. dollars into what are even more worthless treasuries (more worthless because you have to sell them before you can spend them and they can't do that too easily). As such, they were unable to make rational economic decisions in the aftermath of 2008. Instead, they doubled down on a ponzi growth strategy. It was their trapped position in U.S. treasuries which gave them little room to detach from the petro-dollar empire, and as a result they tried to boost growth by "playing ball" and supporting an unsustainable system and they got what was coming. Collapse. Thanks for playing boys. It is at this point that I want to compare two charts. The first is familiar to my readers. The second is not. Dow/Gold Three Year Chart
Shanghai Composite/Gold Three Year Chart
So the first chart is one all of you know very well. It charts the Dow Jones Industrial Average in real terms, and this thing has been in a bear market since 2000. Even over the past three years of "recovery," you can see stocks in terms of gold are down over 20%. The more interesting thing is the chart of Chinese stocks in terms of gold over the same period. They have gotten absolutely shellacked. Down more than 60%, or three times as bad as U.S. stocks. The same would be seen if you priced let's say Spain's market in gold. In fact, it is even worse than China! The point is, this is what happens in today's world when you are faced with a downturn. This is what is coming to U.S. markets next.
The Streets of Europe: Coming to America There were always going to be massive consequences to keeping this ponzi alive. What is extremely unfortunate is the small number of U.S. citizens that actually understand specifically that the root of every problem we face right now is the fiat dollar monetary system, because it gives all the power in the country to the Federal Reserve and the TBTF banks that tell Banana Ben Bernanke what to do. Since 2008, many of the consequences of the fraud called American Crony Capitalism Inc. have been clear, but it has yet to hit the boiling point. I believe that the boiling point will be hit sometime within the next six months, and 2013 will see the streets of America beginning to look a lot like the streets of Spain and Greece. Interestingly enough, one of the key signposts for the next wave of civil unrest and activism is coming from the employees of Wal-Mart. This is quite fitting considering the company is the largest private employer in the United States with approximately 1.5 million workers. Moreover, the fact it is happening at a company so anti-union makes it sure to have a sizable impact on the American psyche should it continue to grow. The strikes began in 12 states about a week ago, and although it is estimated that only 0.01% of Wal-Mart employees are involved, it is still the first multi-store strike in the company's history (for a good summary of what is happening, read this Salon article). More significantly, strikers are now threatening stepped up action during Black Friday. Think it is a coincidence that right now in late 2012 is when Wal-Mart workers are pulling off the first such action in 50 years? Think that this is just a one-off situation? Not a chance. The main point here is one I was hammering on in my last piece The Global Spring. You can only push people so far into hardship before things snap. They snapped in North Africa. They snapped in Southern Europe. They snapped in China. They are about to snap here. Oh, and one last thing. What do you think all of this signals for corporate margins?
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| As money hides away, gold heads for a blowoff Posted: 12 Oct 2012 04:05 PM PDT By John Dizard Considering all the risks in the world, I understand why someone with money can turn into an autistic recluse, refusing to come out of hiding until people they like have been elected. That basically describes the behaviour of the banking system and corporate treasuries in the developed world. Having been told for more than four years that the taking of speculative views is the devil's work, they have been refusing to take any views at all. That's worked out pretty well; holders of the better class of government bonds have profited from the flight away from other assets. …That means that a hyperbolic, 1979-1980 style blowoff in the gold market is becoming much more likely. From the time of the gold price low in the autumn of 1999, the demand for gold has been supported by a gradual shift from net central bank selling to net central bank buying, and from the interest of more or less professional investors. The broader public has not really been drawn into any gold mania, as it was in the late 1970s. …I've noticed that gold manias, or, if you will, crashes in the value of paper money, tend to occur in three phases. Initially, there's a gradual, creeping devaluation of a currency, which can take a decade or so to gather force. Then, there's an initial inflating of the gold bubble, or deflating of the currency value. That's more or less what we saw between 1972 and 1974. Then a pause, and pullback in gold's price momentum, followed by the seemingly unstoppable rise. That came from 1978 to early 1980. [source]
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| 'Giffen good' or not, gold may be good enough Posted: 12 Oct 2012 02:33 PM PDT 4:26p ET Friday, October 12, 2012 Dear Friend of GATA and Gold: In his latest edition of the Thunder Road Report, market analyst Paul Mylchreest reviews gold's steady price appreciation over the last decade and wonders whether gold has become a "Giffen good," an item outside the ordinary law of supply and demand, insofar as demand increases along with price, rather than falling as replacement goods are called upon. Such unusual items are named for the Scottish economist and statistician Robert Giffen, who seems to have been thinking about the price of bread rather than the price of gold. That is, in Giffen's primary example, a rising price of bread caused poor people to reduce consumption of more expensive food, like meat or vegetables, and to increase their consumption of bread because, despite its rising price, bread remained less expensive than other food: http://en.wikipedia.org/wiki/Giffen_good But of course at some point bread could become more expensive than other food, restoring the ordinary relationship of supply and demand. That probably could not happen with gold, since gold is money, not a consumable like food; since gold's price ordinarily will be the inverse of the price of other currencies; and since the more valuable gold becomes against other forms of money, the more it will be demanded. As value is always a matter of human judgment, not just a matter of arithmetic, there may always be a law higher than the law of supply and demand -- the law of human psychology -- which is to say that there sometimes is no law at all and no accounting for anything. But as Mylchreest quotes Gold Standard Institute President Philip Barton, "No one hoards something that will not hold its value over time." "Giffen good" or not, that may be good enough. Mylchreest's new Thunder Road Report, titled "Is Gold a Giffen Good?," is posted in PDF format here: http://www.gata.org/files/ThunderRoadReport-10-12-2012.pdf 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/.
This posting includes an audio/video/photo media file: Download Now | ||||
| NASDAQ Drops Most In 5 Months As Leaders Languish Posted: 12 Oct 2012 02:18 PM PDT AAPL slumbered today (fading at VWAPs) and GOOG stumbled on FTC settlement chatter - dragging Nasdaq to its biggest weekly loss in almost 5 months. Financials were also sold hard (following what every talking head said was 'good' earnings by JPM and WFC this morning) - leaving the sector down 3.7% from post-QEternity highs with previous darling WFC slapped down to BofA/MS levels post-QE -6.5%. Dow Transports outperformed its peers on the week (ending very slightly red) but this remains more a pairs-trade story than anything to hang a 'recovery' on. The S&P has auctioned back to the top of the post-Draghi spike - battle is commencing. Treasury yields legged down once again (long-bond down 18bps on the week at lows) but pulled off the lows after Europe closed -5bps to -14bps as the curve flattened. The USD limped lower for the last few days but ended the week +0.45%. While Oil managed a 2% rise on the week, we saw commodities getting sold today with Gold/Silver sliding (-1.44% and 2.9% respectively on the week). After an early spike down, VIX leaked back higher all day ending at the magical 16% level - up 1.5vols on the week.
YTD - Gold and Silver still leading followed by US equities with the Long-Bond closing in at +3.3%...
Dow Transports outperformed as the NASDAQ slumped...
by the most in almost 5 months...
as the leading sectors of the QE-hope-rally become the laggards very quickly...
and financials are falling hard now...
Despite weakness in the USD today, it ended the week up 0.5% with AUD and JPY strength offset by relative weakness in EUR...
But Commodities slid today - even as USD slid...
Risk-assets were highly correlated once again today
The S&P 500 futures closed 1 pt above their 50DMA at a one-month low - closing pretty much at its lows. But has a little way to go to catch up to credit's view of the world...
Charts: Bloomberg and Capital Context
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| Gold Daily and Silver Weekly Charts - Selling in the Afternoon Posted: 12 Oct 2012 02:14 PM PDT | ||||
| Posted: 12 Oct 2012 02:11 PM PDT From Monty Pelerin: Almost one year ago (Nov. 3, 2011), I published a piece entitled Hangover From Hell that was highly critical of the approach to economic policy being applied around the world. Sadly, the policies have not changed since that article. Nor have these policies revived economies. Indeed things have gotten worse! Both the US and Europe have administered more alcohol to the alcoholic in an effort to prevent the the pain and suffering necessary for a cure and recovery. In the US the Fed announced Q-Eternity, a $40 billion per month injection of funds with no end date other than “as long as it takes.” If economic recovery is meant by “as long as it takes” there will be no ending because no economic recovery is possible from such policies. Very high inflation will eventually stop the Fed, although it will further impoverish the middle class. If they wait until hyperinflation, the economy will collapse and fixed incomes and savings will be wiped out...
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| Gold and Silver Disaggregated COT Report (DCOT) for October 12 Posted: 12 Oct 2012 02:01 PM PDT HOUSTON -- This week's Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report was released at 15:30 ET Friday. Our recap of the changes in weekly positioning by the disaggregated trader classes, as compiled by the CFTC, is just below. In the DCOT table above a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting "longer" and red figures are traders getting less long or shorter. All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report. Vultures, (Got Gold Report Subscribers) please note that updates to our linked technical charts, including our comments about the COT reports and the week's technical changes, should be completed by the usual time on Sunday (by 18:00 ET).
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| COT Gold, Silver and US Dollar Index Report - October 12, 2012 Posted: 12 Oct 2012 01:33 PM PDT COT Gold, Silver and US Dollar Index Report - October 12, 2012
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| Guest Post: What Form Of Silver Should You Hold? Posted: 12 Oct 2012 01:29 PM PDT Submitted by Simon Black of Sovereign Man blog, Along with gold, silver has been considered money for thousands of years. In ancient Rome, for example, the silver Denarius coin was first minted in the third century BC. It contained about 4.5 grams of silver and would have a metal value worth roughly $5 in today's money. We talk a lot in this column about the importance of owning precious metals… and often for the sake of convenience, I lump gold and silver together in the same category. But while the two share similar characteristics as excellent inflation hedges and stores of value, silver has unique fundamentals worth considering. For starters, while the entire gold market is small, the silver market is even smaller. It's tiny. As such, silver is highly volatile and even more susceptible to wild price swings than gold. This means that, in a boom, silver is going to rise more rapidly than gold. In a bust, silver is going to drop more rapidly. We saw this a few year ago after the Lehman collapse, silver dropped to $8, then subsequently reached a peak of $40. Gold's roller coaster ride was nowhere near as severe. This gives silver an interesting edge as a speculation. And one way to play this is to buy specific types of silver whose premiums soar during financial panics. Last week, you heard from my friend Jake Lawless; he's something of an expert when it comes to gaming the system, and I asked him to weigh in on this topic of 'silver premium arbitrage.' From Jake:
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| GATA secretary to be interviewed Saturday on radio from Phoenix Posted: 12 Oct 2012 01:15 PM PDT 3:14p ET Friday, October 12, 2012 Dear Friend of GATA and Gold: Your secretary/treasurer will be interviewed live on the program "Your Wealth Preservation" on radio station KKNT-AM960 in Phoenix, Arizona, on Saturday at 1 p.m. Phoenix time, 4 p.m. Eastern time. KKNT, a news and talk station, broadcasts its programming live on the Internet so you should be able to listen to the program anywhere in the world here: http://saleminteractivemedia.com/ListenLive/player/KKNTAM 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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| Turnaround Rally In Heavy Rare Earths As U.S. Develops Independent Supply Chain Posted: 12 Oct 2012 12:49 PM PDT
The mixed action in the rare earth sector may be highlighting one company which has been outperforming and making significant progress. Suffice it to say that we hope to publish this update on the rare earths that will suggest to our subscribers the positive direction in which the sector is heading, especially as we witness the U.S. Department of Defense take a step in reestablishing American rare earth independence. I wish good luck to those who were boasting their short trades in the rare earths and paper profits. This may rapidly be coming to an end as the heavy rare earth sector is about to reverse higher as Western Nations take a stand and develop their own supply of these critical materials crucial for our latest military technologies such as drones, stealth helicopters and guided smart missiles. We expect a significant rally in this sector which being thinly traded might place the short sellers in peril as they attempt to exit their positions. Sufficient volume may not be there to give the naysayers enough exit room through which to leave the theater once the word fire is realized. We are witnessing global currency wars, trade wars and territorial disputes in the South China Seas. Tensions between China and Japan have increased over many issues but are extremely focussed on expanding their natural resources for which they are desperately looking around the world. Gold Stock Trades expects a turnaround rally in this wildly oversold resource area, which is still relatively unknown by the public crowd. There are developments that may be reversing the 18 month basing process and indeed trap the disbelievers. Included in these possibilities is the bearish sentiment that the less advanced rare earth companies have inadequate cash reserves needed to proceed with development. This interpretation may have been advocated actively by the larger cap Molycorp(MCP) and Lynas (LYSCF) who is deficient in the heavy rare earths. This thesis did not take into consideration the distinction between heavy and light rare earths in coming to their conclusion.
In August of 2011, your editor decided to see for himself Ucore's Bokan Mountain property. We liked what we saw technically and fundamentally. Subsequently we visited Hazen Labs in Denver, Colorado, which confirmed our analysis that something was brewing. All that was needed to put the puzzle together was U.S. Government participation. We got it the other day. Streaming over the wires was "U.S. Department of Defense Contracts with Ucore". This decision by the U.S. Government to support Ucore's development may have been solidified by the recent news that was published that Ucore has separated dysprosium at the lab scale. Dysprosium is crucial to the military. This is a major advancement in Western rare earth technology to be able to isolate dysprosium from ore. The Department of Defense will be working with Ucore to take this to a pilot plant stage. Some of the recent metallurgical announcements using Solid Phase Extraction or Polymer Nanotechnology will be incorporated into Ucore's upcoming Preliminary Economic Assessment which should be published shortly. In all of my years I can't recall a governmental agency especially one as large as the U.S. Department of Defense come right out and adopt a mountain. See my recent video with CEO Jim Mckenzie below. Subscribe to my premium service to be the first to receive my reports by clicking here… Accredited Investors, Fund Managers and Mining Professionals click here…
Disclosure: Author Is Long UURAF and Ucore Is A Featured Company On goldstocktrades.com
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| Fleckenstein - Gold & Insane Central Banks Printing Trillions Posted: 12 Oct 2012 12:27 PM PDT  Today Bill Fleckenstein told King World News, "I think that we are in a new era, a new regime, in terms of how reckless these central banks are willing to be." Fleckenstein, who is President of Fleckenstein Capital, also stated, "So we have these out of control central banks, and I think it shocked people that Bernanke was willing to go as far as he was." Fleckenstein also discussed gold, but first, here is what he had to say about reckless central banks: "It should be obvious you can't run a printing press to finance government debts, and it is obvious, but yet they are getting away with it. It is not clear as to when this will end or what will be the catalyst to make it end?"
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| How to Profit from the Imbalance in Platinum and Zinc Inventories: Matthew O'Keefe Posted: 12 Oct 2012 12:25 PM PDT The Gold Report: What is the current state of demand in the international zinc market? Matthew O'Keefe: As a base metal, demand for zinc mirrors economic growth. When industrial growth is slow, demand for zinc is slow. The zinc supply is currently about 13.2 million tons (Mt) per year versus demand of about 13 Mt per year. Due to the current gap between supply and demand, inventories are high. But things are going to change pretty dramatically during the next year or so. In Q1/13, the first of a number of large zinc mines is slated to close down. TGR: Why? MO'K: Zinc mines tend to be smaller than gold and copper mines with fewer very large producers. But early next year, the first of several large mines will close; the Brunswick No. 12 mine owned by Xstrata Plc (XTA:LSE) with production of about 275,000 tons (275 Kt) a year. [INDENT]"As a base metal, demand for zinc mirrors economic growth."[/INDENT]Later in the year, another large one, Xstrata's Perseverance mine in Quebec, is ...
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| Posted: 12 Oct 2012 12:09 PM PDT Adam Hamilton October 12, 2012 2893 Words After surging sharply in August and early September, gold stocks have been consolidating sideways ever since. Naturally this loss of momentum has sapped the nascent trader enthusiasm for this sector. But stalling out temporarily certainly doesn't negate gold stocks' dazzling fundamentals. They remain deeply undervalued relative to gold, the metal that drives their profits and hence ultimately their stock prices. While sentiment (greed and fear) dominates short-term stock-price swings, over the long run stock prices are nearly exclusively determined by fundamentals. Investors buy stocks to own fractional stakes in the underlying companies' profit streams. The bigger those profits grow, the higher the stocks are bid of the companies earning them. And for gold stocks, the gold price controls the vast majority of profitability. ...
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| Posted: 12 Oct 2012 12:03 PM PDT Supply Issues Offer Additional Underpinnings to Gold
Everyone is probably pretty well aware of these macro drivers on the demand side, but it's also worth noting some significant supply side considerations. Fist of all, and this is a topic we've discussed on numerous occasions, none of the mining supply from China is making it to the open market. Essentially, every ounce of gold mined in the world's largest producer is going right to their insatiable reserve building effort. Secondly, the fourth largest producer in the world is also in full-on accumulation mode. According to the World Gold Council Russia has more than doubled its gold reserves in the last five years and now holds the fifth largest stockpile. It is likely that much of their mining output is going right to reserves as well. More recently, labor unrest in South Africa has negatively impacted production in the fifth largest producing nation. In a Reuters article yesterday, it was reported that strikes were costing AngloGold 32,000 ounces of gold each week, while Gold Fields is losing 2,300 ounces a day at the two mines affected. So while supply issues often get short-shrift in the financial press, it's important to realize that they too provide significant underpinnings to this market. Simple supply and demand economics, strong demand relative to available supply, suggest that the long-term secular bull market remains dominant and that short-term corrective activity should continue to be limited and short-lived.
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| Posted: 12 Oct 2012 11:49 AM PDT With less than three months left until the end of the year, let's do a quick recap. Silver may not be as shiny as gold, but it has been no pushover to the yellow metal. So far in 2012, silver has been the top performing precious ... Read More...
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| Jeff Clark: The Solar Silver Thrust Posted: 12 Oct 2012 11:31 AM PDT "It was "déjà vu all over again" as Yogi Berra once said. All we're waiting for is the resolution...either up, or down." ...
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| Gold Prices Ease; And What's This About Monetizing Britain's Debt? Posted: 12 Oct 2012 11:25 AM PDT | ||||
| Gold Prices Ease; And What's This About Monetizing Britain's Debt? Posted: 12 Oct 2012 11:25 AM PDT | ||||
| Posted: 12 Oct 2012 11:20 AM PDT London Gold Market Report from Ben Traynor BullionVault Friday 12 October 2012, 08:00 EDT THE U.S. DOLLAR gold price eased lower Friday morning in London, falling to $1767 an ounce, 0.7% down on the start of the week, while stock markets also ticked lower and commodities were broadly flat. The silver price fell below $34 an ounce, before trading sideways until lunchtime in London. "For days now the gold price has been hovering in a narrow trading range around the $1770 per troy ounce mark," says today's Commodities daily note from Commerzbank. "It clearly lacks the necessary impetus to make further gains just now, the debt crisis in the Eurozone having not escalated any further and the supply risks in South Africa already being largely priced in." "Investors are very cautious," agrees Andrey Kryuchenkov, analyst at VTB Capital. "[Gold holdings backing] exchange-traded products are near record highs, long speculative positions [in Comex Gold Futures] are substantial and...
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| Posted: 12 Oct 2012 11:19 AM PDT October 12, 2012 [LIST] [*]A short-term gold opportunity: Watch for one event between now and Election Day [*]An array of gold price forecasts: 12 months, 24 months and a staggering chart that points to the possibility of $12,000 [*]Ignoring the noise: Guenthner and Elmerraji on the media hand-wringing surrounding the start of earnings season [*]The War on You, continued: Mom jailed for... letting her kids play in their cul-de-sac (gasp!) [*]Why readers believe we're shortchanging them of their rightful 5 Mins.... tales from the front lines of real estate lending... choice ripostes to Wednesday's "annoyed" reader... and more! [/LIST] Gold has steadily advanced over the last 60 days from $1,600 to this morning's $1,767. Which is making some people a little nervous. For instance: "Can you comment," a reader asks, "on what you think might happen to the price of gold if Romney gets elected?" We'll answer that question today in the course of ...
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| Posted: 12 Oct 2012 11:07 AM PDT After surging sharply in August and early September, gold stocks have been consolidating sideways ever since. Naturally this loss of momentum has sapped the nascent trader enthusiasm for this sector. But stalling out temporarily certainly doesn’t negate gold stocks’ dazzling fundamentals. They remain deeply undervalued relative to gold, the metal that drives their profits and hence ultimately their stock prices.
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Wynter Benton, the group who claim to be former JPM commodities traders with a grudge against Blythe Masters, and who 
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