Gold World News Flash |
- What’s Next For Gold As Governments Become More Desperate
- Celente – Gold, Silver, Riots, Theft & Global Collapse
- Doom Economist’s Asset Protection Strategy: Buy A Machine Gun… and a Tank
- By the Numbers for the Week Ending November 9
- The Rise of College Students Applying for Food Stamps
- rolling jubilee
- Help put ‘Secret Gold Policy' into an English edition
- Who needs the Mayan calendar? Here's von Greyerz's forecast
- The Gold Price Closed $56.30 Higher this Week Stop Dawdling and Buy Now
- Zero Hedge: Fed, Bank of England deceived Bundesbank on coin-melt bars in 1968
- Extend and Pretend
- Gold and Silver Disaggregated COT Report (DCOT) for November 9
- Celente - Gold, Silver, Riots, Theft & Global Collapse
- Why Silver Will Hit $100
- 2012-W Uncirculated $50 Gold Eagle Sold Out
- Gold And The Potential Dollar Endgame
- Fed Sent Bundesbank 172 Bad Delivery Gold Bars in 1968
- The Greatest Fear Of A $100 Billion Asset Mgr. Going Forward
- US Dollar Crash, eeh When?
- Obama's Second Coming & Streets of Gold
- Exclusive: Bank Of England To The Fed: "No Indication Should, Of Course, Be Given To The Bundesbank..."
- Worst Week In 5 Months For Stocks
- Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 3% and 5% on the Week
- Gold Daily and Silver Weekly Charts - Sprott Silver Does Follow On Offering
- COT Gold, Silver and US Dollar Index Report - November 9, 2012
- Flight to Quality Key to Junior Mining Investing: Vikas Ranjan
- Flight to Quality Key to Junior Mining Investing
- Are Markets And Macro Repeating 2008?
- Sole Survivor
| What’s Next For Gold As Governments Become More Desperate Posted: 09 Nov 2012 10:01 PM PST  With gold and silver moving higher this week as stocks were trounced, today, Egon von Greyerz lets King World News readers know what to expect for the rest of this year as well as for 2013. Here is what Greyerz had this to say: "We are entering one of the most worrying times in history, maybe even for centuries or even for a millennia. I think we are going to see a turn in the world economic situation that is going to be long and extremely difficult."
This posting includes an audio/video/photo media file: Download Now |
| Celente – Gold, Silver, Riots, Theft & Global Collapse Posted: 09 Nov 2012 10:00 PM PST from KingWorldNews:
Today top trends forecaster Gerald Celente spoke with King World News about gold, silver, increased riots, government theft and global collapse. Celente also spoke about the ongoing financial crisis. Celente is the founder of Trends Research, and the man many consider to be the top trends forecaster in the world. Here is what Celente had to say: "How could anybody believe a guy like the head of the European Central Bank, Mario Draghi, who keeps making up these games? How about breaking down the BS and calling it printing money out of thin air, backed by nothing? That's all this is." Gerald Celente continues @ KingWorldNews.com
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| Doom Economist’s Asset Protection Strategy: Buy A Machine Gun… and a Tank Posted: 09 Nov 2012 09:30 PM PST by Mac Slavo, SHTFPlan: When most economists talk about asset diversification they'll often recommend a portfolio of stocks, bonds and cash. Marc Faber, however, isn't your everyday mainstream economist. Appropriately named Dr. Doom for his past predictions of coming market chaos and global economic destruction, Faber has long recommended a different strategy. From high voltage fences and barbed wire to heavily weighted allocations of precious metals and raw farmland, he's seen the writing on the wall since before the crash of 2008. He not only warned subscribers of his Gloom Boom & Doom Report to exit financial markets in early 2008, but called for a market rebound on the exact day of its 2009 lows. Faber is a student of history, economics, and monetary policy, and he has an almost prophetic ability to see what's coming next.
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| By the Numbers for the Week Ending November 9 Posted: 09 Nov 2012 09:30 PM PST This week's closing table is just below.
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| The Rise of College Students Applying for Food Stamps Posted: 09 Nov 2012 09:00 PM PST from MyBudget360.com:
The drawn out election campaign has now come to an end and very little substantive action is likely to be taken to assist the middle class. Even more disturbing is how little attention was given to the growing number of poor Americans. Almost 47,000,000 million Americans are now on food stamps, a record both in nominal terms and also as a percentage of the population. Aligning with this record figure in food assistance is also the large burden of attending college. A telling trend has emerged where many college students are now applying and using food stamps to get by. At one point in the not so distant past, it was possible to take on a part-time job and attend college while coming out with little debt (or no debt). That balance is now largely gone with stagnant wages and college tuition inflation soaring through the roof. What does it say that many of our young Americans need to take on food stamps just to get through college?
The rise in food stamp usage If we look at food stamp costs as a metric of economic health for the poor, the recession started in 2001 and has not let up:
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| Posted: 09 Nov 2012 08:38 PM PST A bailout of the people by the people. We buy debt for pennies on the dollar, but instead of collecting it, we abolish it. We cannot buy specific individuals' debt – instead, we help liberate debtors at random through a … Continue reading
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| Help put ‘Secret Gold Policy' into an English edition Posted: 09 Nov 2012 08:30 PM PST by Chris Powell, GATA:
Dear Friend of GATA and Gold: Our consultant Dimitri Speck, author of the German-language expose of the Western central bank gold price suppression scheme, "Geheime Goldpolitik" ("Secret Gold Policy"), has secured a publishing house to put the book into English and market it in the English-speaking world. But Speck needs to raise about $8,000 for translation, updating, and data. Since putting "Geheime Goldpolitik" into English likely will strike a major blow against the gold price suppression scheme, GATA has pledged $1,000 toward the translation and associated costs and will accept and forward contributions for that purpose from our supporters. "Geheime Goldpolitik" is described here in German – http://www.m-vg.de/finanzbuchverlag/shop/article/2349-geheime-goldpoliti… – and, in English, in an interview of Speck by GATA's friend the German financial journalist Lars Schall at YouTube here: http://www.youtube.com/watch?v=wEFCgY5pN0c
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| Who needs the Mayan calendar? Here's von Greyerz's forecast Posted: 09 Nov 2012 07:42 PM PST 9:35p ET Friday, November 9, 2012 Dear Friend of GATA and Gold: Gold fund manager Egon von Greyerz gets apocalyptic today in an interview with King World News, predicting exchange controls, hyperinflation, the collapse of stock and bond prices, and cats and dogs sleeping together. Of course we'll still probably have some remnants of the good old days, with CPM Group's Jeff Christian and Kitco's Jon Nadler still recommending selling gold, but von Greyerz thinks it should be bought and stored on another planet, or at least in another country. An excerpt from his interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/10_W... 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: Vancouver Resource 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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| The Gold Price Closed $56.30 Higher this Week Stop Dawdling and Buy Now Posted: 09 Nov 2012 07:26 PM PST Gold Price Close Today : 1,730.30 Gold Price Close 2-Nov : 1,674.00 Change : 56.30 or 3.4% Silver Price Close Today : 3259 Silver Price Close 2-Nov : 3083.5 Change : 175.50 or 5.7% Gold Silver Ratio Today : 53.093 Gold Silver Ratio 2-Nov : 54.289 Change : -1.20 or -2.2% Silver Gold Ratio : 0.01883 Silver Gold Ratio 2-Nov : 0.01842 Change : 0.00041 or 2.3% Dow in Gold Dollars : $ 153.11 Dow in Gold Dollars 2-Nov : $ 161.68 Change : $ (8.58) or -5.3% Dow in Gold Ounces : 7.406 Dow in Gold Ounces 2-Nov : 7.821 Change : -0.42 or -5.3% Dow in Silver Ounces : 393.23 Dow in Silver Ounces 2-Nov : 424.62 Change : -31.39 or -7.4% Dow Industrial : 12,815.39 Dow Industrial 2-Nov : 13,093.16 Change : -277.77 or -2.1% S&P 500 : 1,379.85 S&P 500 2-Nov : 1,414.20 Change : -34.35 or -2.4% US Dollar Index : 81.051 US Dollar Index 2-Nov : 80.606 Change : 0.445 or 0.6% Platinum Price Close Today : 1,554.40 Platinum Price Close 2-Nov : 1,540.90 Change : 13.50 or 0.9% Palladium Price Close Today : 610.25 Palladium Price Close 2-Nov : 598.85 Change : 11.40 or 1.9% Silver and GOLD PRICE confirmed with third day higher closes their reversals and breakouts earlier this week. The SILVER PRICE today added 35.9 cents to close 3259c. Gold added $4.90 to $1,730.30. Whether I look at the weekly or daily charts, the same picture emerges: the next leg up, the next rally, for silver and gold has begun. They would have to close below $1,700 or 3150c to contradict that outlook. Stop dawdling and vacillating and BUY! By June the GOLD PRICE will most likely be trading over $2,300. Yes, I know I sound crazy, but like every other crazy man, I seem perfectly sane to me. "I used to think I was indecisive, but now I'm not so sure." Yesterday I erred in the silver closing price. It rose 58 cents to close Comex at 3223.1, not 3181c. Friday's scoreboard tells it all: silver up 5.7%, gold up 3.4%, Dow in gold down 5.3%, Dow in silver down 7.4%, Dow down 2.1%, S&P500 down 2.1%, US dollar index up 0.6%. Doesn't look to me like O'Bama's re-election re-assured stock markets much. US dollar index, now above its 20, 50, and 200 day moving averages, continues to eke out a rally. Today it burst the bonds of 81, gaining 23.9 basis points (0.31%) to end at 81.051. Not a barn burner, but a trend in force remains in force until it reverses, and for the nonce the dollar's trend is skyward. Euro had a sad week, losing every day but one, and tacking on another 0.29% loss today to $1.2711. Headed for $1.26, maybe lower. Not much hope there. Yen has rallied this week, although it lost 0.09% today to 125.79 cents per 100 yen. Now it has hit its downtrend line, but is at least above its 200 DMA. Well, AT its 200 DMA. I imagine the fights among the various central bankers are the worst falling out of thieves since Gideon faced the Midianites and their partners. If I had stocks I'd sell 'em and buy silver and gold, 'cause I haven't enough patience to watch this volatility with a downward bias. Stocks may stage a rally somewhere here, but don't seem to have stopped falling just yet. They simply look wretched. Dow gained a measly 4.07 today to close at 12,815.39 -- not much of a comeback after losing 277.77 this week. S&P500 rose 2.34 today to 1,379.85. Next 5 years stocks are going nowhere. From 9:00 to 10:00 p.m. Eastern time on Friday, 9 November I'll be on the Christian Farm and Homestead Radio Show to talk about my new book, At Home In Dogwood Mudhole. You can listen here: http://bit.ly/TwgYiz Or, if you'd rather download the MP3 file later, you can find that right here: http://bit.ly/WI7RmW 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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| Zero Hedge: Fed, Bank of England deceived Bundesbank on coin-melt bars in 1968 Posted: 09 Nov 2012 07:24 PM PST 9:27p ET Friday, November 9, 2012 Dear Friend of GATA and Gold: Citing Bank of England records, Zero Hedge reveals tonight that as the London Gold Pool was collapsing in 1968 the Federal Reserve and the Bank of England conspired to conceal from the German Bundesbank the deficient gold content of U.S. gold bars, apparently made from coin melt, that were being transferred to the Bundesbank to conclude gold swaps. This is, Zero Hedge says, another reason why the Bundesbank might want to cut off inquiry into the security of its foreign-vaulted gold. Zero Hedge's report is headlined "Bank of England to the Fed: 'No Indication Should, of Course, Be Given to the Bundesbank" and it's posted here: http://www.zerohedge.com/news/2012-11-09/exclusive-bank-england-fed-no-i... 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: Vancouver Resource 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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| Posted: 09 Nov 2012 07:12 PM PST by Peter Schiff, Gold Seek:
Fresh from his victory, the President took time today to let the nation know how he proposes to avoid the cliff: to raise taxes on those Americans who make more than $250,000 per year. He made clear than no one making less than that will be asked to pay any more. The two percent of taxpayers that the President is targeting earn 24.1% of all income and pay 43.6% (as of 2008) of all personal federal income taxes. Sounds like a fair share to me. But the four or five percent tax increases on those earners that are being proposed would only yield around $30 to $40 billion per year in added revenue, a drop in the federal bucket. Even if they were to double the amount that they pay our deficit would only be cut by about one third (even if those increases did not trigger an economic slowdown).
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| Gold and Silver Disaggregated COT Report (DCOT) for November 9 Posted: 09 Nov 2012 06:54 PM PST 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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| Celente - Gold, Silver, Riots, Theft & Global Collapse Posted: 09 Nov 2012 06:26 PM PST  Today top trends forecaster Gerald Celente spoke with King World News about gold, silver, increased riots, government theft and global collapse. Celente also spoke about the ongoing financial crisis. Celente is the founder of Trends Research, and the man many consider to be the top trends forecaster in the world. Here is what Celente had to say: "How could anybody believe a guy like the head of the European Central Bank, Mario Draghi, who keeps making up these games? How about breaking down the BS and calling it printing money out of thin air, backed by nothing? That's all this is."
This posting includes an audio/video/photo media file: Download Now |
| Posted: 09 Nov 2012 06:09 PM PST By GE Christenson There are many predictions for the price of silver. Some say it will crash to nearly $20, and others proclaim $100 by the end of 2012. The problem is that some predictions are only wishful thinking, others are obvious disinformation designed to scare investors away from silver, and many are not grounded [...]
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| 2012-W Uncirculated $50 Gold Eagle Sold Out Posted: 09 Nov 2012 06:00 PM PST from Mint News Blog:
The 2012-W Uncirculated Gold Eagle originally went on sale June 28, 2012, which means the product has only been available for about four and a half months. The sell out also occurs with more than one and a half months left within the calendar year.
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| Gold And The Potential Dollar Endgame Posted: 09 Nov 2012 05:32 PM PST Submitted by Joe Yasinski and Dan Flynn of GBI, Part 1 of 3: What supply and demand? It's all stock to flow these days. Reading our title has us convinced that somewhere our college economics professors are hanging their heads in shame with all of those x and y graphs scribbled to no avail. Economists the world over can take comfort that the laws of supply and demand still largely rule the marketplace. However, we believe there is a noted exception for a yellow, largely useless metal. A metal that just happens to have shaped the world's monetary systems for the last several thousand years. Gold's "supply" traditionally defined as global mining production is virtually meaningless in determining its' price. How can this be? Analysts pontificate that global supply dynamics are integral in forecasting future metal prices. We can only attribute this to the fact that these analysts still myopically cling to the view of gold as a commodity. Gold, even when viewed as a commodity, is unique in that it is not consumed. As there is little cost effective industrial application for the yellow metal, little to no "natural" industrial demand exists. Virtually every ounce ever mined from the earth is still above ground, either in a vault or a safe or an earring. An estimated 170,000 metric tons sits above ground, hoarded and unambiguously owned. Given that the annual supply of mined gold is approximately 2,500 metric tons, how is it gold not priced close to zero? After all, there is a 65 year overhang in supply! Despite all that we know of supply and demand dynamics and economic 'law', gold's price is within striking distance of its' all-time-high – in every currency on the planet. A major contributing factor to gold's price is that the vast majority of the stock of physical gold is held in very strong hands. It is largely held privately by very wealthy families or by governments and their central banks. This gold lies very still, some of it not changing owners or locations for decades, if not centuries. These giant holders have little need to ever sell, holding gold as a long term store of wealth or as a central banking reserve asset. Gold naturally appeals to these super-savers because of gold's history as the ultimate store of value and lack of counterparty. Sure you can buy real estate, art, or classic cars- and the extremely wealthy do. But beyond illiquidity and subjective risk, these assets can become cost centers in themselves with maintenance, storage, insurance, etc. Gold is universally recognized as a wealth asset but is also infinitely divisible, portable, and highly liquid. Gold's value has been established over a millennia and is ultimately the asset that denominates or values all others. Rather than supply in the traditional sense, what drives the gold price is the percentage of the existing stock (170,000 tons) that is available for sale on any given day. The percentage of available inventory for purchase is the "flow." Divide the flow into the stock and you get the STF ratio. A low STF ratio indicates a very high percentage of the existing physical stock is available for sale and a very high number means owners prefer to hoard physical metal rather than exchange it for dollars. So for example, if every ounce of gold was put up for sale tomorrow, the STF ratio would go to one and the price would plummet, likely to near zero. But, what if instead of everyone selling their gold tomorrow, all existing physical owners of gold decided to keep it instead? Could this even happen? Doesn't conventional wisdom and 'economic law' tell us that as the price of gold goes up, there are fewer buyers able to purchase and more sellers willing to dishoard? In our opinion, conventional wisdom simply doesn't apply here. Gold, in our opinion is what is often referred to as a Giffen good. A Giffen good is one that actually sees a spike in demand as its price rises. Conversely, demand drops along with price. While the concept of a Giffen good is well known, the number of examples in the real world are slim and usually limited to localized commodity markets in extremis. A golden, glaring exception is the massive example playing out before our very eyes. In typical Giffen behavior, gold was scorned and dishoarded by individuals as well as central banks as the price hovered in the low 100's. Fast forward to today and gold demand is at to or close to all time highs, even as the price sets new records in currencies around the world. Many prominent members of the gold community insist that gold is going to appreciate massively because of a huge flood of investment dollars will flow into the metal over the next several years. They may very well be right, and we at GBI certainly hope so. But we can see things developing differently as well. We believe that a massive revaluation of gold denominated in dollars can happen quite suddenly, almost overnight. But not because of any sustained long term demand for gold, but simply because owners of metal simply withdraw it from sale, sending the stock to flow ratio to infinity. This is why understanding gold's stock to flow ratio is so vital. Can you imagine a manufacturer of automobiles (or any producer of a good with a declining marginal utility) deciding to just sit on his newly manufactured automobiles and let them stock up in perpetuity or would he offer them for sale, for as many dollars as he can get? Of course he would sell for dollars because he must monetize his production. As with almost every commodity, widget, or car – the suppy/demand dynamics are fairly straight forward. The manufacturer needs to exchange those automobiles for cash or they're worth nothing to him. For a holder of gold, there is no need to exchange his stock for dollars, especially if there is an avalanche of dollars pursuing that stock of metal. If the dollar avalanche comes, can you imagine a massive owner of gold - perhaps a central bank in a surplus nation or billionaire family, preferring to stockpile gold as a reserve eschewing the current offer of dollars? Or do you see these savvy economic actors dishoarding their store of value in exchange for quickly devaluing dollars (like the auto manufacturer)? Once you can see why one makes sense and another doesn't, you're on your way to understanding how gold is priced and how major pricing moves can have almost nothing to do with traditional supply/demand dynamics. There never needs to be a massive flow of dollars into gold for it to go unimaginably higher. Existing owners need only remove their stock from sale. And tying it back to Giffen, when physical gold goes into "hiding" the demand of people bidding with their dollars will increase in proportion to the increasing price. It's useful to understand the concept that dollars bid for assets. When dollars bid to buy a stock over and over (high velocity) the price goes up. If all dollars stopped bidding for AAPL the price goes to zero. In reality, dollars value Apple stock. Gold is a unique asset in that it denominates, or values currencies. Dollars don't bid for gold. Gold bids for dollars. If you're having a hard time with this idea, think of an extreme, like Weimar Germany or Zimbabwe. A gold owner accepts or rejects a sum of dollars as a suitable trade for their metal. When they reject this bid, it drives the STF ratio higher and higher. Why would gold holders cease to bid for dollars? For the same reasons we all hoard gold, as protection of real purchasing power from a failing fiat currency. Where will the flow come from? Central banks certainly aren't selling anytime soon, ditto for our fine Asian friends. On a micro-level, we have seen recently in places like Greece and Spain that there is a finite quantity of gold that flows into the market when times get tough. What happens when the citizens run out of gold bangles to sell and everyone else starts hoarding? On a macro-level, what happens when surplus nations no longer save in US dollars and instead save in gold? What happens if the "flow" of gold slows to a trickle, or even stops all together? We can easily paint a multitude of scenarios that don't require all that much imagination. Will dollars frantically chase after gold? Perhaps, but will the holders of gold bid for those dollars? What will that imply about the dollars purchasing power relative to others goods and services? It is up to the reader to decide which of the two following turn of events is more likely. Is it more likely that the human superorganism will come to the realization that their dollars are being debased and gradually steer more and more of their assets into gold or is it more likely that existing owners of gold, who long ago came to the same conclusion and likely purchased gold to hedge that very outcome, will first choose to remove theirs from sale?
The answer lies in this question, who values gold higher? The new incremental buyer, or the existing owner? Sure, we could get to astronomical gold prices through a flood of new buyers, but we could have an even more dramatic move overnight if existing gold owners cease bidding for dollars with their gold. Or, maybe, some combination of the two. The only problem for a new investor is one of those scenarios can play out over years while the other can happen virtually overnight. What happens to the "price" of gold when it ceases bidding for dollars? Zero. Or infinity. Take your pick. We have some ideas about why this hasn't happened to date, and how you may be able to identify a S-T-F ratio to infinity unfolding before our very eyes.
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| Fed Sent Bundesbank 172 Bad Delivery Gold Bars in 1968 Posted: 09 Nov 2012 05:04 PM PST The Tylers at ZH have discovered a 1968 memo from the BOE archives sent by the Bank of England to the Federal Reserve revealing that the Fed sent at least 172 bad delivery gold bars to London in the late … Continue reading
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| The Greatest Fear Of A $100 Billion Asset Mgr. Going Forward Posted: 09 Nov 2012 05:00 PM PST  Today King World News spoke with the man who oversees more than $100 billion about his greatest fears going forward. KWN wanted to hear what Arnott's concerns were with the critical events now taking shape around the world. But first, here is what Arnott, who is Chairman of Research Affiliates, had to say regarding the Fed: "One of the problems is the triple mandate. If the Fed has a singular goal of maintaining steady purchasing power of the dollar, that's not difficult. If they have a double mandate of maintaining purchasing power of the dollar constant with full employment, that's difficult, but not impossible."
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| Posted: 09 Nov 2012 04:03 PM PST Many have forecast the crash of the US dollar. But when ? Post US elections the expectations of Obama 2nd term: Reduce the US Deficit, and Raise taxes (Fiscal Cliff or otherwise). Read More...
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| Obama's Second Coming & Streets of Gold Posted: 09 Nov 2012 03:50 PM PST - Most shared image ever, according to Twitter - Gold vs everything else after Obama's Second Coming Streets of Gold, but not in the U.S. of A…. Search volume for "Renounce Citizenship" - Because the Obama II administration is nowhere close to what a Paul Craig Roberts administration would look like. [Paul Craig Roberts was Assistant Secretary [...] 
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| Posted: 09 Nov 2012 02:31 PM PST Over the past several years, the German people, for a variety of justified reasons, have expressed a pressing desire to have their central bank perform a test, verification, validation or any other assay, of the official German gold inventory, which at 3,395 tonnes is the second highest in the world, second only to the US. We have italicized the word official because this representation is merely on paper: the problem arises because no member of the general population, or even elected individuals, have been given access to observe this gold. The problem is exacerbated when one considers that a majority of the German gold is held offshore, primarily in the vaults of the New York Fed, and at the Bank of England - the two historic centers of central banking activity in the post World War 2 world. Recently, the topic of German gold resurfaced following the disclosure that early on in the Eurozone creation process, the Bundesbank secretly withdrew two-thirds of its gold, or 940 tons, from London in 2000, leaving just 500 tons with the Bank of England. As we made it very clear, what was most odd about this event, is that the Bundesbank did something it had every right to do fully in the open: i.e., repatriate what belongs to it for any number of its own reasons - after all the German central bank is only accountable to its people (or so the myth goes), in deep secrecy. The question was why it opted for this stealthy transfer. This immediately prompted rampant speculation within various media outlets, the most fanciful of which, of course, being that the Bundesbank never had any gold to begin with and has been masking the absence all along. The problem with such speculation is that, while it may be 100% correct and accurate, there has been not a shred of hard evidence to prove it. As a result, it is merely relegated to the echo chamber periphery of "serious media" whose inhabitants are already by and large convinced that all gold in the world is tungsten, lack of actual evidence to validate such a claim be damned (just like a chart of gold spiking or plunging is not evidence that a central bank signed the trade ticket, ordering said move), and in the process delegitimizing any fact-based investigations that attempt to debunk, using hard evidence, the traditional central banker narrative that the gold is there and accounted for. And hard evidence, or better yet a paper trail of inconsistencies, is absolutely paramount when juxtaposing the two most powerful forces of our times: i) the central banking-led status quo (which is de facto the banker-led oligarchy whose primary purpose in the past several centuries has been to accumulate as much as possible of the hard asset-based fruits of people's labor, who toil in exchange for "money" created out of thin air - a process which could be described as not quite voluntary slavery, but the phrase would certainly suffice), and ii) "everyone else", especially when "everyone else" still believes in the supremacy of democratic forces, accountability, and an impartial legal system (three pillars of modern society which over the past 4 years we have experienced time and again have been nothing but mirages). Because without hard evidence, not only is the case of the people against central bankers non-existent, even if conducted in a kangaroo court co-opted by the banker-controlled status quo, it becomes laughable with every iteration of progressively more unsubstantiated accusations against the central banking cartels. Finally, when it comes to cold, hard facts, which expose central banks in misdeed, even the great central banks have to be silent silent, as otherwise the overt perversion of justice will blow up the mirage that modern society lives in a democratic, laws-based world will be torn upside down. And while others engage in click-baiting using grotesque hypotheses of grandure without any actual investigation, reporting or error and proof-checking to build up hype and speculation, which promptly fizzles and in the process desensitizes the general public and those actually undecided and/or on the fences about what truly goes on behind the scenes, Zero Hedge travelled (metaphorically) in space - to London, or specifically the Bank of England Archives - and in time, to May 1968 to be precise. While there we dug up a certain memo, coded C43/323 in the BOE archives, official title "GOLD AND FOREIGN EXCHANGE OFFICE FILE: FEDERAL RESERVE BANK OF NEW YORK (FRBNY) - MISCELLANEOUS", dated May 31, 1968, written by a certain Mr. Robeson addressed to the BOE's Roy Bridge as well as its Chief Cashier, and whose ultimate recipient is Charles Coombs who at the time was the manager of the open market account at the Fed, responsible for Fed operations in the gold and FX markets. This memo, more than any of the other spurious and speculative accusation about Buba's golden hoard, should disturb German citizens, and of course the Bundesbank (assuming it was not already aware of its contents), as the memo lays out, without any shadow of doubt, that the BOE and the Fed, effectively conspired to feed the Bundesbank due gold bars that were of substantially subpar quality on at least one occasion in the period during the Bretton-Woods semi-gold standard (which ended with Nixon in August 1971). The facts: At least two central banks have conspired on at least one occasion to provide the Bundesbank with what both banks knew was "bad delivery" gold - the convertible reserve currency under the Bretton Woods system, or in other words, to defraud - amounting to 172 bars. The "bad delivery" occured even as official gold refiners had warned that the quality of gold emanating from the US Assay Office was consistently below standard, and which both the BOE and the Fed were aware of. Instead of addressing the issue of declining gold quality and purity, the banks merely covered up the refiners' complaints It is this that the Bundesbank, the German government, and the German people should be focusing on. If in the process this means completely ridiculing the Buba's "she doth protest too much" defense strategy that what is happening in the media is a "phantom debate" as per Andreas Dobret's recent words, so be it. In fact, one may be well advised to ignore anything Buba has said on this matter, because in attempting to hyperbolize the matter out of irrelevancy, the Buba is now cornered and will have no choice now but to explain just what the true gold content of the gold even in its possession is, let alone that which is allocated to the Buba account 50 feet below sea level, underneath the infamous building on Liberty 33. Full May 1968 memo from the BOE to the NY Fed: highlights ours:
To summarize: Bank of England discovers discrepancies with US Assay Office gold bars, notifies the NY Fed that its gold bars have major "bad delivery" issues, but, and this is the punchline, on this occasion, we'll keep it quiet, because the Bundesbank got these bars. This is merely one documented assay occasion: one can imagine that of the hundreds of thousands of gold bars in official circulation, the "good delivery" quality of bars outside of the US, and perhaps BOE, official holdings has progressively declined over the decades of Bretton Woods. One can also only imagine what has happened to all those "good delivery" bars currently held by the Fed as custodian at the NY Fed. Literally: imagine. Because there is no way to check what the real gold consistency of these gold bars is, and whether the refiners found ongoing future inconsistencies with "good delivery" standards of bars handed off to other "non-core" central banks. And, yes, without further evidence the above is merely speculation. As to the remaining relevant facts: the US ran out of good delivery gold in March 1968 and only had coin bars remaining. Which is why it closed the gold pool and went to a two-tier price system. The Bundesbank went on to cover some of the outstanding gold debts of the Fed to the gold pool. Subsequently, the US then did several deals with the BOC to get a substantial amount of gold to pay back the Bundesbank which was sent over to England from March until June 1968. One can, again, only speculate on the quality of said gold. The Fed then created unsettled accounts to account for these transfers between itself and the Buba. In light of the above facts and evidence, one can see why the Buba is doing all in its power to avoid the spotlight being shone on the purity of its gold inventory: after all the last thing the German central banks would want is someone to go through the publicly available archived literature, to put two and two together, and figure out that it does not take one massive "rehypothecation" (see "to Corzine") event for German gold credibility to be impaired: all it takes is death from a thousand micro dilutions over the decades to get the same end result. Because chipping away one ounce here, one ounce there for years and years and years, ultimately adds up to a lot. We eagerly look forward to the Buba's next iteration of self-defense. We can only hope that this one does not include a reference to a "phantom debate", to "East German terrorist Simon Gruber" or to Goldfinger, as it will merely further destroy any remaining credibility the Bundesbank may have left in this, or any other, matter. * * * Look forward to more archive-based disclosure ot what may have happened to Buba's, and not only, gold in the coming days and weeks.
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| Worst Week In 5 Months For Stocks Posted: 09 Nov 2012 02:19 PM PST Cash equity markets closed the day very marginally in the green - ending the worst week in over five months. S&P 500 futures are bleeding red after-hours as we note significant volume came in after the President began speaking - from which we closed down 1%. Cross-asset correlations were extremely high today as it seemed all about equities (and equities were all about AAPL). Credit markets (and volatility) were not enjoying the morning party as much as stocks but by the close equities reverted back down to reality. Gold remains the week's big winner (post-election) but we note that 10Y yields fell from over 1.75% into the election to under 1.60% at their lows today. The USD ended the week +0.6% and Treasury yields down 10-15bps. AAPL gained 1.75% (phew) but traded extremely technically with heavy volume around VWAP into the close which helped Tech slightly outperform Financials on the week (-2.5% vs -3.1%). A day of technical bounces and all eyes on stocks... An ugly week for US equities...
with a clear winner - Gold... as it seems equity 'profits' are rotated into real assets and bonds...
The capital structure in general was not buying was stocks were selling today... the upper lefty chart shows that credit/volatility/rate (HYG/VXX/TLT) were deceidely less sanguine about things than stocks all day... Across the broad basket of risk assets that our CONTEXT model represents, everything was pegged to stocks all day - we have seldom seen cross-asset-class correlations (lower right) this high and suggests a market very much on edge...
And here is AAPL's fascinating day...ensuring it did not close the week below its 55-week average...
and where the S&P stands...bouncing off its 200DMA... holds at swing highs from July, bounced to Draghi's edge, then was sold in size...
Charts: Bloomberg and Capital Context
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| Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 3% and 5% on the Week Posted: 09 Nov 2012 02:17 PM PST Gold fell $5.72 to $1727.08 by a little after 8AM EST before it climbed to as high as $1738.67 in the next couple of hours of trade, but it then fell back off into the close and ended with a loss of 0.1%. Silver slipped to $32.057 before it shot up to $32.775 and then also fell back off, but it still ended with a gain of 0.46%.
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| Gold Daily and Silver Weekly Charts - Sprott Silver Does Follow On Offering Posted: 09 Nov 2012 02:07 PM PST |
| COT Gold, Silver and US Dollar Index Report - November 9, 2012 Posted: 09 Nov 2012 01:31 PM PST COT Gold, Silver and US Dollar Index Report - November 9, 2012
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| Flight to Quality Key to Junior Mining Investing: Vikas Ranjan Posted: 09 Nov 2012 01:31 PM PST The Gold Report: When you spoke with us last year, you talked about Europe's financial problems being a policy issue. Are they any closer to a solution to the debt crisis there and is the situation in the U.S. parallel to that? Vikas Ranjan: I think there's been progress made toward solving the debt crisis in Europe and also in the U.S., which is a different ball game. When I said Europe is more like a policy problem, I meant that it's not a problem that just came up one fine day. A monetary union without any proper fiscal union creates a situation where weaker countries can hide under a stronger currency and run big deficits, and at the same time don't have the flexibility of using cheaper currency when they get into trouble. That has been the case with countries like Greece, Italy, Portugal and Ireland. [INDENT]"I believe gold has a good upward trend, especially due to QE3." [/INDENT]Now there's a realization in Europe that if they want to save the euro, they also have to have som...
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| Flight to Quality Key to Junior Mining Investing Posted: 09 Nov 2012 01:17 PM PST While the junior mining sector has not seen the benefits of higher gold prices, there is reason for optimism, says Vikas Ranjan, managing director and principal, Ubika Research. In this Gold Report interview, Ranjan lays out his case why juniors with quality projects should bump up.
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| Are Markets And Macro Repeating 2008? Posted: 09 Nov 2012 01:01 PM PST In mid 2008, when macro data surprises were very weak, equity markets continued to push inexorably higher; happily ignorant of reality as The Fed has your back, 'bad is good', and the impossible was still impossible. This rally front-ran the economic surprise data - as economists had (in their ubiquitously extrapolant manner) over-cooked the downside and a reflexive bounce and rate cuts swung us into the green economically and market-wise. That surge in macro surprise data proved fleeting and we crashed a few short months after. Four years later and once again we are told that 'bad is good', every central bank is just dying to add more liquidity fuel to the fire, and macro data is 'surprising' to the upside. However, instead of following the 2009, 2010, and 2011 patterns, we are mimicking that 2008 pattern as 3-month S&P return turns red while ECO data is still rising. We suspect the hope-driven 'magic' in that ECO data will rapidly fall to the bottom-up-biased earnings data we discussed earlier and while 'expecting' a 30% plunge in stocks is a little much - we've seen this kind of hopeful optimism dashed before on the rocks of reality.
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| Posted: 09 Nov 2012 12:30 PM PST November 9, 2012 [LIST] [*]Last asset standing: The one golden survivor of this week's post-election pummeling... [*]Down, but not out: silver on the rise... and the best way to play it... [*]The historical anomaly good for stocks during Bush's fourth... er, Obama's second term... [*]"Charity begins at -- oh hell, never mind"...mayor Bloomberg's Orwellian head-scratcher... [*]A wager takes shape between The 5 and two of its technical traders... readers threaten expatriation (again)... one justifies voting, feels good about it (but makes little sense)... and more! [/LIST] We begin today with a welcome outlier. At $1,733, gold is higher than it was when it got whacked for $40 bucks last week. And it's the only asset class to hold up after the election. Go figure. Yesterday "Tyler Durden" stepped out of character at Zero Hedge. He suspended his paranoia, stopped trying so hard to be hip and furnished something useful -- a ...
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Now that President Obama has been re-elected, the media is finally free to focus on something besides the clueless undecided voters in Ohio, Florida, and Colorado. The brightest and shiniest object that has attracted its attention is the "fiscal cliff" that we are expected to drive over at the end of the year unless Congress and the President can agree to turn the wheel or apply the brakes.
According to the US Mint's website, the 2012-W Uncirculated $50 Gold Eagle has sold out. I have also confirmed the sell out directly with the Mint. This is a very surprising development and the issue now seems to represent a new mintage low for the American Gold Eagle program.
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