Gold World News Flash |
- Increasingly bullish prospects of gold stocks
- 3 Events Worth Watching
- Asian Metals Market Update
- Gold Seeker Closing Report: Gold and Silver Gain About 1% and 3%
- As Wal Mart Employees Strike, Wal-Mart Shows The Uselessness of Unions
- Turk – This Is The Chart That Every Investor Needs To See
- In The News Today
- Treasury secretary supports eliminating debt ceiling
- Turk says Fed's money spigot is back on; Embry sees gold production falling for years
- Reserve Bank of India forbids bank loans for gold purchases
- Standby for ‘currency induced cost push inflation’ to take gold to $3,500 predicts the legendary Jim Sinclair
- Bill Murphy: Buy Silver, Crash JP Morgan?
- A $50 Bill
- Strong Long-Term Case for Industrial Metals
- The Silver and Gold Price Broke Loose Buy Silver and Gold and Wait No More
- Gold miners facing tough challenges
- ‘Falling’ gold demand
- More lies about your taxes…
- Guest Post: More Lies About Your Taxes...
- Embry – $67 Trillion Shadow Banking System & $10,000 Gold
- Spain's bad loans reach 10.7% of total or 183 billion euros/Gold and silver rise/OI in silver still remains lofty
- Gold Daily and Silver Weekly Charts - Cup and Handle Develops - SEC Rocked By Sex and Corruption Scandal
- LOANS ENSLAVE PEOPLE
- EPIC DISAPPOINTMENT
- Eric Sprott on the Fundamentals for Gold - Physical and Paper Markets
- Some personal thoughts on surviving the monetary meltdown
- The Looters Are in Control
- Obama going to “tax the rich”?
- Stocks Jump Most In 5 Months But Bonds Ain't Buying It (Again)
- Gold Daily and Silver Weekly Charts - Cup and Handle Continues to Develop
| Increasingly bullish prospects of gold stocks Posted: 20 Nov 2012 08:18 AM PST Despite the recent weakness we are becoming increasingly bullish about the prospects for gold stocks. Actually, it's partly due to the recent weakness that we are becoming increasingly bullish, because the extension of the downward correction makes it more likely that the overall advance from the May low will last well into next year.
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| Posted: 20 Nov 2012 08:15 AM PST The love for gold has been reignited in India, according to the World Gold Council (WGC) in its Gold Demand Trends for the third quarter of 2012. India regained its title as the strongest performing market, overtaking the greater China area, as the country experienced a bounceback in demand due to improved sentiment during the festival season.
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| Posted: 20 Nov 2012 12:02 AM PST Safe haven demand for gold and silver got boosted by the France debt rating cut from AAA and tensions between Israel and Hamas. Technicals further came to the rescue for gold and silver bulls. Crude oil is also getting support from Middle East tensions. Gold is also getting support from crude oil.
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| Gold Seeker Closing Report: Gold and Silver Gain About 1% and 3% Posted: 19 Nov 2012 10:00 PM PST Gold rose to as high as $1735.20 by late morning in New York before it fell back off a bit in afternoon trade, but it still ended with a gain of 1.18%. Silver surged to as high as $33.205 and ended with a gain of 2.7%.
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| As Wal Mart Employees Strike, Wal-Mart Shows The Uselessness of Unions Posted: 19 Nov 2012 09:10 PM PST from Silver Vigilante:
The complaint, which also names UFCW's subsidiary OURWalmart, states that the labor union is forcing the store into collective bargaining, although it is not the "official" union for Wal Mart employees. The UCFW is the umbrella for more than one million meat packers and food industry workers. The complaint comes ahead of nationwide walkouts planned for this coming Friday, which will be one of the biggest shopping days of the year, and Wal-Mart has a point: The UFCW is not recognized by Wal-Mart as the official union, and so thus must become the official union through a secret-ballot process through the NLRA.
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| Turk – This Is The Chart That Every Investor Needs To See Posted: 19 Nov 2012 09:00 PM PST from KingWorldNews:
It is beginning to pump some money into the system. Last week it turned $42.5 billion of debt into dollar currency – what is called monetization. Only $2 billion was new cash currency, which are the dollar notes that we carry in our pocket. The rest was deposit currency, which are dollars that circulate within the banking system." James Turk continues @ KingWorldNews.com
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| Posted: 19 Nov 2012 08:58 PM PST My Dear Friends It is 9:19pm EST and I am caught up on emails. If you did not get an answer please send again. Respectfully, Jim
Jim Sinclair's Commentary Dogs help you when you're down. I hope I have helped a little.
Jim Sinclair's Commentary Gold and Silver will cross the Continue reading In The News Today
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| Treasury secretary supports eliminating debt ceiling Posted: 19 Nov 2012 08:54 PM PST Geithner Says Budget Deal Is 'Within Our Grasp' By Ian Katz http://www.bloomberg.com/news/2012-11-16/geithner-says-budget-deal-can-b... WASHINGTON -- Treasury Secretary Timothy F. Geithner said he's confident an agreement on averting the fiscal cliff can be concluded within weeks after White House talks between President Barack Obama and congressional leaders. "It was a good meeting, and the tone was very good," Geithner said in an interview yesterday in Washington on Bloomberg Television's "Political Capital With Al Hunt" airing this weekend. "I think this is doable within several weeks." Geithner said a deal must be reached soon to prevent further damaging consumer confidence. The lack of agreement is "this huge cloud of uncertainty hanging over the economy," he said. As the peak of holiday shopping season approaches, "You'd want to do it as soon as you can." ... Dispatch continues below ... 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 is within our grasp, within our reach," Geithner said. "It's not that complicated." Geithner repeated the administration's calls for an immediate extension of middle-class tax cuts and said a deal on high-end tax cuts shouldn't be delayed. "I think deferring things doesn't work," he said. "We've had several periods now where there was a choice made to defer." He said the administration is trying to "make sure we do some things up front that help the economy, avoid damage to the economy, lock in some up-front savings that help restore fiscal sustainability, and set up a process for reaching agreement on the additional savings that we're going to need." Geithner and Obama began a new round of deficit-reduction talks yesterday with top Republicans and Democrats in a bid to avoid the combination of $607 billion in automatic tax increases and spending cuts that threatens to throw the country into a recession next year. House Speaker John Boehner said after the talks at the White House that Republicans are willing to put revenue on the table in exchange for spending cuts. "You have to look at how much revenue do you need to make sure you have a balanced deal to get this back to the point we're living within our means," Geithner said in the interview. "That's going to require a substantial amount of revenue, we think in the neighborhood of $1.5 trillion to $1.6 trillion." The Standard & Poor's 500 Index climbed 0.5 percent to close at 1,359.88 at 4 p.m. in New York after Boehner's comments. Treasuries rose, with 10-year note yields touching a 10-week low. The administration also must negotiate to increase the federal debt ceiling. The Treasury said Oct. 31 it expects to reach the limit near the end of this year and can take "extraordinary measures" to meet its payment obligations "until early in 2013." Geithner said in the interview the debt ceiling should be eliminated, and "the sooner the better." Without an increase in the ceiling, the government may not be able to pay all of its bills and risks defaulting on its debt. Congress and the Obama administration debated the limit for months last year before reaching an 11th-hour agreement in August 2011. Under some readings of the tax code, Geithner could have the authority to blunt the economic impact of higher marginal rates by leaving this year's paycheck withholding rules in place. Such a move carries risk because taxpayers could face higher tax bills and penalties in early 2014 if Congress can't ultimately agree to extend the lower rates. "Don't over-interpret what that authority gives me," Geithner said. He said he doesn't have the power to let Congress "avoid making some decisions on rates and policy." Geithner said he agreed with Michael Duke, chief executive officer of Wal-Mart Stores Inc., that consumers need a quick agreement on the fiscal cliff. "The uncertainty right now about whether this will be resolved on sensible terms, whether our middle-class families will see their taxes go up, already is having an effect on consumer confidence and the economy," he said. Geithner, 51, said he will stay in his post until mid-January and he brushed aside suggestions that he might stay longer if a successor isn't confirmed by then. He said he's "very confident that we're going to get enough done in these next few weeks" and that Obama will "have a successor in place so I'll be able to go off and do some other things." In June 2011 Geithner said he would start commuting to Washington from New York because his son was returning there to finish high school. He told White House officials that he was considering leaving office once a deal to raise last year's debt limit was reached in Congress. Obama asked him to stay, and Geithner agreed to remain at the Treasury at least through the 2012 election. 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 Opinion Around the World Is Changing When Deutschebank calls gold "good money" and paper "bad money". ... http://www.gata.org/node/11765 When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ... http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan... When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ... http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan... When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ... http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold... When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ... World opinion is changing in favor of gold. How can you learn why and what it will mean to you? Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard." Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him." To buy a copy of "The True Gold Standard," please visit: http://www.thegoldstandardnow.com/publications/the-true-gold-standard
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| Turk says Fed's money spigot is back on; Embry sees gold production falling for years Posted: 19 Nov 2012 08:26 PM PST 10:24p ET Monday, November 19, 2012 Dear Friend of GATA and Gold: Interviewed today by King World News, GoldMoney founder and GATA consultant James Turk says the Federal Reserve has resumed substantial money creation, which explains today's rebound in the stock market as well as the monetary metals. Economic conditions in the United States remain horrible, Turk says, and money printing is the only response central planners will make. An excerpt from Turk's interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/19_T... Meanwhile Sprott Asset Management's John Embry tells King World News today that gold mining production is likely to fall for a long time because even a price around $1,700 is not enough to sustain such a difficult and risky industry. An excerpt from Embry's interview is posted at the King World News blog here: 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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| Reserve Bank of India forbids bank loans for gold purchases Posted: 19 Nov 2012 08:13 PM PST From The Indian Express, New Delhi http://www.indianexpress.com/news/rbi-bans-bank-loans-to-buy-gold/103319... The Reserve Bank today directed banks not to give loans for purchase of gold in any form, including primary gold, bullion, and jewellery, to dissuade people from indulging in speculative activity. "It is advised that no advances should be granted by banks for purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold exchange-traded funds, and units of gold mutual funds," the RBI said in a notification. No advances should be granted by banks against gold bullion to dealers or traders in gold if, in their assessment, such advances are likely to be used for purposes of financing gold purchase at auctions or speculative holding of stocks and bullion, it said. ... Dispatch continues below ... 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.... However, it said banks can provide finance for genuine working capital requirements of jewellers. The decision was taken in view of the significant rise in imports of gold in recent years putting pressure on the country's current account deficit. In the 2011-12 fiscal year, India's gold imports stood at $60 billion and the quantum of import was 1,067 tonnes. In the April-June quarter of the current fiscal, however, gold imports had contracted by 18.4 percent year-on-year to Rs 71,912 crore ($13 billion). The Monetary Policy Statement of April 2012 announced the constitution of a working group to study issues relating to gold imports and gold loans by Non-Banking Financial Companies (NBFCs) in India. The working group submitted its draft report in August 2012, suggesting that other than working capital finance, banks are not permitted to finance purchase of gold in any form. 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. 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| Posted: 19 Nov 2012 07:45 PM PST from Arabian Money:
In his latest missive to his many fans among the gold bugs he also tells investors not to worry about the day-to-day gyrations of the gold price. Mr. Sinclair says that they should instead be focused on what he sees as inevitable and coming next: 'currency induced cost push inflation'. 1970's paradigm: As a veteran economics student from the late 1970s this writer can very well remember to what Mr. Sinclair refers. Those were the days of double-digit retail price inflation. The cost of buying basic items of domestic consumption rose month-by-month. I had a Saturday job repricing items in WH Smith and we got a new price list weekly.
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| Bill Murphy: Buy Silver, Crash JP Morgan? Posted: 19 Nov 2012 07:40 PM PST from AltInvestorsHangout:
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| Posted: 19 Nov 2012 06:30 PM PST by Captain Hook, Silver Seek:
Who knew a $50 bill would be the signal financial apocalypse has arrived. Certainly the bureaucracy's price managing bullion banks know about the importance of the $50 mark for silver because their masters have instructed them to do whatever it takes to keep it below this critical barrier – anything. Short as much paper silver in the futures market as need be to keep it down. Fraudulently re-hypothecate silver in supposed bullion certificate accounts, exchange traded funds (ETF's), and any other paper scheme deemed necessary / possible to reuse dwindling physical bullion supply on the unsuspecting and ignorant.
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| Strong Long-Term Case for Industrial Metals Posted: 19 Nov 2012 06:00 PM PST from KitcoNews: Chris Berry of "Discovery Investing", partner and son of Dr. Michael Berry, joins us from the 2012 San Francisco Hard Assets Conference to discuss a core issue of his presentation at the show, namely the strong, long-term case he makes for industrial metals like silver, based on a foundation of often overlooked emerging markets. Despite the much talked about slowdown in Chinese growth, which according to Berry is a "slowdown" from a previous growth rate that was commonly accepted as impossible to maintain (a growth rate that already had a slowdown foreseeable on the horizon), there are many overlooked emerging economies such as Indonesia, Colombia, etc, with young and dynamic populations that are well aware of what the developed world takes for granted: our quality of life. These aspirations for a better standard of living are manifestly visible in emerging markets according to Berry, and as such, a cultural change of this nature is always underpinned by the industrial metals that largely make such a quality of life possible; thus, Berry states, there is a strong bull case there for industrial metals. We also discuss uranium and rare earth with Berry, and he explains his reasons for being fond of the mineral, mostly contrarian reasons. A very interesting, must-watch interview! Kitco News, November 18, 2012.
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| The Silver and Gold Price Broke Loose Buy Silver and Gold and Wait No More Posted: 19 Nov 2012 05:50 PM PST Gold Price Close Today : 1734.00 Change : 19.70 or 1.15% Silver Price Close Today : 33.181 Change : 0.820 or 2.53% Gold Silver Ratio Today : 52.259 Change : -0.715 or -1.35% Silver Gold Ratio Today : 0.01914 Change : 0.000258 or 1.37% Platinum Price Close Today : 1581.00 Change : 3.00 or 0.19% Palladium Price Close Today : 644.60 Change : 4.00 or 0.62% S&P 500 : 1,386.89 Change : 27.01 or 1.99% Dow In GOLD$ : $152.55 Change : $ 0.77 or 0.51% Dow in GOLD oz : 7.379 Change : 0.037 or 0.51% Dow in SILVER oz : 385.64 Change : -3.35 or -0.86% Dow Industrial : 12,795.96 Change : 207.85 or 1.65% US Dollar Index : 80.85 Change : -0.235 or -0.29% The silver and GOLD PRICE confirmed their intentions loud enough today to be heard in Washington, DC, Brussels, and Tokyo. Gold vaulted $19.70 today, clearing all that resistance between $1,714 and $1,730 in one high jump. Silver smashed 3300c resistance by hopping 82 cents to 3318.1. About the only further confirmation wanting is gold's close above $1,740, which might come tomorrow. The GOLD PRICE made a textbook impulsive climb off that Friday low at $1,705.79. Today it never fell lower than $1,720.94, and closed only 75 cents off the $1,734.75 high. Support now becomes $1,730 (mustn't close below there, maybe $1,725 in a push), and old support/ resistance at $1,740 becomes the next hurdle. Gold closed today only $9.50 off its 50 day moving average at $1,743.50, and is above its 20 Dma (1,714.57). Momentum indicators show plenty of room to climb. The Tall Hurdle comes at $1,800, where gold twice failed in September and October. This time it will smash through $1,800 like Stonewall Jackson rolling up yankee general Hooker's flank at Chancellorsville. The SILVER PRICE outran gold today, 2.53% to 1.15%. Silver closed nearly on its high (3320c), and barely shy of its 50 day moving average (3325c). A bigger hurdle than today's lies ahead at 3350c, but once silver clear that it will send the shorts and croakers flying for cover. Up above silver must overcome those 3544 tops left in September and October, and above that the stronger resistance at 3750c. Every new rally, like every new life, is a chancy undertaking, but this one is as strong as most you'll ever witness. They're loose! Buy silver and gold and wait no more. I've given up trying to make any sense at all out of the news. Their conclusions leap tall reason at a single bound, and come down in a swamp of conjecture. Today they reported that the US dollar dropped on "hopes that US leaders will reach a budget deal." Let's see: if the government goes over the fiscal cliff then taxes will rise and spending will shrink, which by my feeble Tennessee natural born fool reasoning means the yankee government might take some tee- tiny baby steps toward solvency. On the other hand, this implies the dollar would strengthen on news that the government will spend more and tax less and the Fed will be forced to print more to keep the whole leaky tub floating. Whoa, wait a minute. This report comes from USA Today, America's Comic Book Newspaper. Never mind. Only a fool would expect those goofs to make sense. Look at it this way: in the land of the brainless, the man with two brain cells is king. Fact is, the US dollar index fell 0.3% to 80.85 today. Technically, this changes nothing. Dollar remains in an uptrend, remains above its 200 day moving average (80.71), it only takes it down to the channel's bottom boundary. Close below 80.50 would turn the dollar down. Momentum indicators (RSI and MACD) do look a mite brown around the edges, but not enough to threaten an immediate reversal. Dollar weakness helped the yen not at all. Ended unchanged at 122.93 cents/Y100. Clearly the Japanese Nice Government Men have decided to pull the plug on the yen in the vain hope of curing their economic woes. This will work as well as using spit to glue iron plates instead of welding them. Euro rose 0.56% today to $1.2814, trying to touch its 200 DMA (now 128.21). All the moving averages are converging, so something ought to happen, up or down. People whose judgment I respect seem to expect a higher euro, but I can't picture it. I just mention it to show how uncertain markets are, and that reasonable men can read the same facts and differ. Or maybe I'm biased. In the end it makes no difference at all, as I would not buy euros with y'all's money, let alone my own. Long term demise of the euro is write too large in the stars and the numbers. I've been warning y'all that stocks had fallen so far, so persistently, that they must at last rally a little. Thus my heart skipped ne'er a beat when the Dow rallied today 207.85 (1.65%) to 12,795.96. Nor did it palpitate at the S&P500's close 27.01 (1.99%) HIGHER AT 1,386.89. I was neither scairt nor amazed. Rally ought to carry stocks quickly at least to the 200 DMA (12,992) or a tad higher, where it will also strike the downtrend line. A longer term possible target is the neckline from the January - May head and shoulders left behind, about 13,300. Conceivable, if you have a rubbery imagination, is a rally clean to the upper jaw of death, about 14,000. 'Twill all be for naught, like running pumps on the Titanic. Stocks remain locked in a primary downtrend or bear market, and nothing has happened to change that, and won't for several years. 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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| Gold miners facing tough challenges Posted: 19 Nov 2012 05:30 PM PST from Gold Money:
In South Africa, extraction of gold from depths of more than 6,000 metres has almost become the rule rather than the exception. Mining costs are being pushed up by the logistical challenges of drilling at great depths, as well as an increasingly militant work force which is demanding higher wages. Add exploration costs to this mix and it's little wonder that companies' profits are being squeezed, despite the high gold price.
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| Posted: 19 Nov 2012 05:00 PM PST by James Turk, FGMR:
While gold did in fact drop $16 the day before, I found this news curious because from memory I thought the gold price had increased over the 12-month period mentioned in the article. I therefore went to check the numbers, and indeed, gold was $1620.40 on September 30, 2011 compared to $1771.10 twelve months later on September 30, 2012, a 9.3% rise in price. So how was it possible that a drop in demand resulted in a rise in price?
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| Posted: 19 Nov 2012 04:40 PM PST from Sovereign Man:
"[F]inally, beginning in 1949. . . you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year. That is the most you will ever pay." In 1949, the tax rose to 3% as scheduled. But it only took five years for the government to break its promise. The tax rose to 4% in 1954, 4.5% in 1957, 5% in 1959… and continued to rise for decades. On January 1st it will be 12.4%.
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| Guest Post: More Lies About Your Taxes... Posted: 19 Nov 2012 04:31 PM PST Via Simon Black of Sovereign Man blog, In 1936, the US government began circulating a series of pamphlets to explain its brand new Social Security program, plus the associated taxes. Initially, the Social Security tax was set at 2%. The government promised it would rise to 3% in 1949, with no additional increases EVER:
In 1949, the tax rose to 3% as scheduled. But it only took five years for the government to break its promise. The tax rose to 4% in 1954, 4.5% in 1957, 5% in 1959… and continued to rise for decades. On January 1st it will be 12.4%. Politicians routinely make bold promises about tax policy... and they almost always end up being lies. Raising taxes, i.e. plundering the wealth of citizens, is one of the oldest tactics in the playbook for insolvent governments, and you can be 100% certain that your taxes will increase despite any promises to the contrary. Perhaps most dangerously, politicians fail to understand that raising tax rates does NOT actually increase government tax revenue. In the US, for example, government tax revenue has consistently been 17.7% of GDP since the end of World War II, plus/minus a very tight band. Similarly, the British government has consistently collected 35% of GDP in tax revenue. Yet over the decades, tax rates have been all over the board... from 0% to over 90%! Plus variations in corporate profits tax, payroll tax, estate tax, capital gains tax, dividend tax, and (for the Brits) VAT. Rates go up, rates go down... it doesn't affect overall government tax revenue one bit. Despite the obvious facts, though, politicians keep raising tax rates. On January 1, 2013, the US government will impose what my tax attorney calls the biggest tax increase in the history of the world. And some of the rate increases are simply extraordinary. The estate tax exemption, for instance, is being slashed by EIGHTY PERCENT! And the amount that the Obama administration will tax the rest of your estate will increase to a whopping 55%! Moreover, dividend tax rates are set to rise from 15% to as high as 43.4%. This affects not only US taxpayers, but everyone on the planet who invests in the US stock market. Remember Finance 101– the price of a stock is theoretically the present value of discounted future cash flows. In English, this means that share prices should rise and fall based on the market's expectations about future earnings… and over the long run, future dividends. As a result of this tax policy, many investors who own shares in US companies will now see their after-tax dividends slashed by 33%. And since their investment returns are falling so dramatically, it stands to reason that the investments themselves become less valuable. This is putting a lot of downward pressure on stock prices, affecting almost everyone who currently owns US shares– pension funds and retirement accounts, rich and middle class, US and non-US citizens alike. It's as if the US government is hanging a sign over the country saying "PLEASE DO NOT INVEST HERE." It's genius. This is the tip of the iceberg. Taxes will keep rising. Investment returns will be destroyed. Any incentive to start a business will be destroyed. Any benefit to your heirs for what you have worked your entire life to pass on will be destroyed. All of this because a handful of morally bankrupt individuals who run financially bankrupt governments fail to understand simple truths about tax policy. Bear this in mind over the next few weeks, because many new taxes will take effect on January 1st, and it's imperative to take defensive action first. I strongly recommend consulting with your tax advisor as soon as possible.
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| Embry – $67 Trillion Shadow Banking System & $10,000 Gold Posted: 19 Nov 2012 04:20 PM PST from KingWorldNews:
Today John Embry spoke with King World News about the the $67 trillion shadow banking system, $10,000 gold, and how this will all end. Here is what Embry, who is chief investment strategist at Sprott Asset Management, had to say: "I'm a big admirer of Ketih Barron because I was big player in his company Aurelian. I think he's a very smart guy and he understands the business extremely well. I agree with him that gold production is headed for a big decline going forward. You have to remember that until the 1980s, virtually all of the mining in the world was underground mining, and the grades were a lot higher than they are now. This is because a lot of the gold that was easy to mine has already been mined and we are having to go deeper and deeper." John Embry continues @ KingWorldNews.com
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| Posted: 19 Nov 2012 04:12 PM PST by Harvey Organ, HarveyOrgan.Blogspot.ca:
Good evening Ladies and Gentlemen: Gold closed up today sharply to the tune of $19.70 finishing the comex session at $1734.00 Silver also had a stellar day rising by 82 cents to close above $33.00 at $33.18. Today optimism in the USA on better than expected housing data as well as optimism that a deal will the struck on the fiscal cliff caused the Dow to climb by 207.65 points. In Europe, the Japanese parliament dissolved and there will be elections on Dec 16.2012. Spain released data on the bad loans and they climbed to a record 10.7%. Spain's total loans is represented by 1.7 trillion euros and thus their bad debt is around 182 billion euros. How on earth can be fix their banks with 60 billion euros. Greece again rebelled against the Troika demands but fear not, they will get their money anyway. However it was the following story which caused much glee in Euroland and caused the Euro to break over 1.28: Read More @ HarveyOrgan.Blogspot.ca
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| Posted: 19 Nov 2012 04:00 PM PST |
| Posted: 19 Nov 2012 03:39 PM PST Isn't it ironic? Western Civilization started in Greece, and in Greece it is ending (at least from an economic standpoint). The government is broke, in debt, and can't even pay for medicine or power anymore. The unemployment rate is massive. People are rioting. The suicide rates are skyrocketing. Austerity is bitch, but it's coming to a town near you soon enough. For Greece: "Nothing Is Gonna Be Alright" During a week in which Americans are supposed to give thanks, we thought this inside look at the reality on the streets of Greece was worthwhile comprehending. From the May 2011 Syntagma Square uprising to "the 'firesale' of their country, their labor rights, and their livelihoods to corrupt domestic elites and foreign financial interests" the brief documentary follows the dramatic portrait of a country veering to the brink of collapse – and the people who choose to struggle to build a new world from the ruins of the old. "For [the elites] Greece is a guinea pig, to find out up to what point they can 'milk' [us]" is how one narrator describes the situation, adding that "they are refusing to see the reality [saying] it's not happening, it's not happening, it's not happening, everything is gonna be alright; Nothing is gonna be alright" as "loans enslave people." Utopia remains on the horizon…
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| Posted: 19 Nov 2012 03:36 PM PST No mention of NASCAR (Did you see the Formula 1 of the U.S. Sunday? It was awesome), but Wal Mart is mentioned. What would Monday be without Kunstler? Probably less painful. Epic Disappointment Those inhabiting the economic wish-space got a case of the vapors last week when the Paris-based International Energy Agency (IEA) published an annual report stating that the USA would overtake Saudi Arabia as the world's leading oil producer and reach the long-touted nirvana of "energy independence." The news was greeted in this country with jubilation. Thus, peak credulity meets peak bullshit. It's been clear for a while that authorities in many realms of endeavor – politics, economics, business, media – are very eager to sustain the illusion that we can keep our way of life chugging along. But under the management of these elites, the divorce between truth and reality is nearly complete. The financial system now runs entirely on accounting fraud. Government runs on the fumes of statistical fraud. The business of oil and gas runs on public relations fraud. And the media runs on the understandable wish of the masses to believe that all the foregoing illusions still work to maintain the familiar comforts of modern life (minus Hostess Ho-Hos and Twinkies, alas). And so the story has developed that the shale oil plays of North Dakota and Texas, which started ramping up around 2005 – the same year the world hit the wall of peak conventional oil – and the shale gas plays in Texas, Louisiana, Pennsylvania, New York, and Ohio would enable American "consumers" to drive to WalMart effectively forever. Now, it happens that the particulars of oil and gas production are so abstruse that the editors of The New York Times, The Bloomberg News Service, CNN, and a score of other mass media giants swallowed the IEA report whole, with fanfares and fireworks, and a nation afflicted with doubt about its future swooned into the first week of the holidays in celebration mode – we're soon to be number 1 again, and the future is secure! Have a nice Thanksgiving and Christmas and prepare to sober up in 2013. When the truth finally emerges from this morass of dissimulation, the disappointment will be epic. Here's why the shale oil story is not the "game changer" that the wishful claim it is: the price required to get it out of the ground (between $80-90 a barrel) will crush the US economy. Since prices are already in that range, the economy is already being crushed. The result is an economy in more-or-less permanent contraction. As demand for oil falls with declining economic activity the price of oil falls – below the level that makes it worthwhile to conduct expensive shale oil drilling and fracking operations. Meanwhile, in the background, as economies contract and economic "growth" of the type our system requires no longer happens, the problems in finance and banking get a lot worse. This is largely because interest on borrowed money can no longer be paid back. Loans are defaulted on. As this happens, banks become insolvent. Governments play games with public money – including "money" they "create" out of thin air – to prop up the banks. None of it alters the sad fact that there is not enough real money in the system. The result of all these desperate monkeyshines is the impairment if capital formation. That is, the failure to accumulate new wealth. The lack of new wealth, along with declining prospects for the repayment of loans, leads to a shortage of credit, especially to businesses that require large supplies of it to keep gigantic complex operations like shale oil and gas going Shale oil (and shale gas) share some problematical properties. The cost of drilling each well is a big number, $6-8 million. The wells deplete very rapidly, over 40 percent after one year in the Bakken formation of North Dakota. The oil is not distributed equally over the whole play but exists in "sweet spots." The sweetest sweet spots were drilled the earliest and the quality of the remaining potential drill sites is already in decline. The current trend shows declining first-year productivity in new wells drilled since 2010 running at 25 percent. There are over 4300 wells shale oil in the Bakken formation of North Dakota producing about 610,000 barrels a day. In order to keep production up, the number of wells will have to continue increasing at a faster rate than previously. This is referred to as "the Red Queen syndrome" which alludes to the character in Alice in Wonderland who famously declared that she had to run faster and faster just to stay where she is. The catch to all this is that the impairments of capital formation are working insidiously in the background to guarantee that the money will not be there to set up the necessary wells to keep production at current levels. In other words, shale oil (and shale gas) are Ponzi schemes. The story in the Eagle Ford play in Texas is very similar. I haven't even mentioned the concerns about fracking and its effect on ground water, and won't go into it here, except to acknowledge that it presents an additional range of concerns. The current price situation in shale gas is different than shale oil. The drilling frenzy in shale gas produced a glut, which drove down prices from a $13 a unit (thousand cubic feet or mcf) to around $2 at its low point earlier this year. That's way below the price that is economically rational to drill and frack for it. The price collapse has played havoc among the companies engaged in shale gas, though it has been a boon to customers. A lot of the drilling equipment has moved to the North Dakota oil fields. There will be less shale gas in the period ahead and the price will go up. It has got to go above about $8 a unit or there will be no reason for any company to be in the shale gas business. But as is always the case in such a correction, the price will surely overshoot $8, at which point it will become unaffordable to its customers. The volatility alone will make the business of shale gas drilling impossible to maintain. Forget about the USA becoming a major gas exporter. You probably get the point by now, so I will only add a couple of out-of-the-box considerations vis-à-vis the prospect of the USA becoming energy independent. Finally, I have one flat-out prediction, one I have made before but deserves repeating: Japan will be the first society to consciously opt out of being an advanced industrial economy. They have no other apparent choice really, having next-to-zero oil, gas, or coal reserves of their own, and having lost faith in nuclear power. They will be the first country to enter a world made by hand. They were very good at it before about 1850 and had a pre-industrial culture of high artistry and grace – though, granted, all the defects of human psychology. I don't think the US can make that transition in an orderly way. We're too stricken with techno-narcissism and grandiosity. What troubles me is how we will greet the epic disappointment that waits for us when we discover that the journey to WalMart is over. My guess is that being predisposed to superstition and religious fanaticism, the American public will violently reject science and rationality and retreat into a world of shadows. We're already well on our way. The IEA report will just accelerate things.
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| Eric Sprott on the Fundamentals for Gold - Physical and Paper Markets Posted: 19 Nov 2012 03:26 PM PST |
| Some personal thoughts on surviving the monetary meltdown Posted: 19 Nov 2012 03:00 PM PST from detlevschlichter.com:
Let us start by looking at the economy from 10,000 feet above: After 40 years of boozing on easy money and feasting on fantastical asset price inflations, the global monetary system is approaching catharsis, its arteries clogged and instant cardiac arrest a persistent threat. Most financial assets are expensive, and many appear to be little more than securitized promises with low probability of ever delivering payment in full. Around the globe, from Japan to the US, a policy of never-ending monetary stimulus consisting of zero interest rates and recurring rounds of 'quantitative easing' has been established aimed at numbing the market's growing urge to liquidate. Via the printing press, the central banks, the lenders-of last resort, prop up banks and financial assets and simultaneously fatten the state, the borrower of last resort, which, despite excited editorials against the savage policy of 'austerity,' keeps going further into debt almost everywhere. 'Muddling through' is the name of the game today but in the end authorities will have two choices: stop printing money and allow the market to cleanse the system of its dislocations. This would involve defaults (including those of sovereigns) and some pretty nasty asset price corrections. Or, keep printing money and risk complete currency collapse. I think they should go for option one but I fear they will go for option two. Read More @ detlevschlichter.com
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| Posted: 19 Nov 2012 02:40 PM PST
[And now it's time for Mr. Obama to start paying for all those votes by reaching deep into our pockets. If you intend to avoid paying your "fair share," however, please take note: There will be few places to hide. For a gimlet-eyed view of what may lie in store for taxpayers and citizens of all political persuasions during the next four years, ponder the guest commentary below, from Wayne Siggard, a regular in the Rick's Picks forum. RA]
The election was all about new math: 47 = 51. The foresight and genius of the Founders knew no bounds. Ben Franklin said, "Once the people find they can vote themselves money, that will herald the end of the republic." The trumpets have sounded. The heralds have announced the awakening of the masses to that reality. The greatest and most free nation the world has ever known has just sold its birthright for a mess of pottage; or, at least, the promise of an Obama phone. The takers have voted to take control over the producers.
Everyone will now get a fair shot — except that those who work in government and those who take government welfare will get a fairer shot. Obama knows that you didn't build that company. You didn't live frugally and save more money than your neighbor while they spent theirs on drugs or riotous living. He knows this because he didn't get anything without government assistance — affirmative action put him ahead of more qualified people who earned a spot that he took, just like Elizabeth Warren. You couldn't possibly have gotten anything on your own merit or hard work.
"A claim for material position can be met only by a government with totalitarian powers." – Friedrich von Hayek
Von Mises said that full government control of all activities of the individual is virtually the goal of both national parties. Have you ever tried to drill an oil or gas well? Have you ever tried to build a house or commercial building? Have you ever tried to manufacture and sell a product? The International Building Code (IBC) increases in size, restrictions and requirements every year. Why? Because a bureaucracy needs to expand to justify its existence.
"Power tends to corrupt, and absolute power corrupts absolutely." – Lord Acton
Have you ever experienced the disdain and contempt of a bureaucrat whose permission you sought? It used to be that their power to grant a license or permit was retribution for their pay being less than that of the private sector. Now, you get to pay them 50% more than you would get for the same job, and the disdain has not decreased. Firemen, police officers, and military personnel can retire as young as 38, many making over $100,000 per year if they work until 50, and many can take another job and collect another pension on top of the first. Meanwhile, according to the Census Bureau, the average middle class family's income has decreased $4,019 during the Obama years, to $50,964. More than half of the lifeguards in Newport Beach, CA, make over $150,000 per year and can collect more than $100,000 in pension benefits starting under 50 years of age.
So, What's Coming?
That paradigm of preternatural prestidigitation, the Federal Reserve Bank, will continue its policy of zero percent interest. The big banks will mask their insolvency with free money from the Feds. Greedy speculators and fools who overspent on housing will have their mistakes paid for by those taxpayers who had the foresight to save and invest wisely. Obama bundlers and other insiders will continue to get billion dollar investments from the government, sucking valuable capital from the private sector. The official inflation rates will miraculously stay low while you are paying 100% more for gasoline and food.
"History is largely a history of inflation, usually inflations engineered by governments for the gain of governments." – Friedrich von Hayek
Foreign nations are no longer purchasing U.S. government bonds. The largest purchaser is the Federal Reserve Bank. In other words, the government is printing money from thin air. In 1970, you could go to Las Vegas and buy a silver dollar for one paper dollar. It now costs around $35. A mansion behind the Beverly Hills Hotel sold for $200,000. It resold in 2004 for $16 million. A house in Flintridge, CA, sold for $115,000. Its current value is $4.5 million. The base price for a Corvette was $5192. It is now $49,600, a comparative bargain. What you could buy for $1 million in 1970 now takes $36 million. Senator Everett Dirksen in the 1960s is reputed to have remarked," a billion here, a billion there, and pretty soon we're talking real money." You can now add three zeros. The bottom line is that if you are collecting 0.15% interest on your CD, you are losing real purchasing value of at least 10%, and that rate will be accelerating in the next four years. Carlo Ponzi was a hopeless naïf compared to our elected officials.
Harry Reid Has a Plan
Harry Reid already has a bill on his desk which requires that all pension plans (except for the unions, of course), 401Ks, and IRAs be converted to annuities from the government. This pile of cash represents the largest pile of readily available cash in the world right now. The money will be gone as soon as it hits the government's account, and you will be left with empty promises. There is no money, only a printing press.
Capital export controls will be enacted. You will not be able to get your money out of the country. Already you can no longer open a bank account in Switzerland unless you have over $30 million because the reporting requirements are too onerous for a smaller account. All requests to Switzerland for visas from Americans will be suspended. History will be repeated (shocking, I know), and all gold in private hands will be confiscated. The Republicans will cave, the tax rates will rise, and anyone making more than the insider politicians and government employees will encounter ever-increasing marginal tax rates.
Payoffs for votes will be made. Affirmative action requirements will be increased in every field of endeavor. Women's abortions and contraceptives will be free. Regulations will stop the advent of fracking and the boom in oil and natural gas will come to an abrupt halt. Payments to environmental groups for lawyer's fees will expand exponentially. Government-controlled lands with oil and gas potential will be declared wilderness or national monuments, just like Grand Staircase-Escalante in Utah. I could go on for another ten pages, but , in a nutshell, the message from Mr. Obama is, "You lost."
And finally, Israel has recognized that Mr. Obama will offer no succor. Before the end of January, they will raid Iran. Gasoline will reach $7 per gallon, and voila, solar and wind energy will be competitive. No matter that your thermostat is set at 40 degrees, if you can get fuel or power.
The looters are in control. Set your alarms.
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| Obama going to “tax the rich”? Posted: 19 Nov 2012 02:30 PM PST by Jeff Nielson, Bullion Bulls Canada:
Just like us Canadians, Americans have VERY short political memories. "Taxing the rich" was part of the Change which Obama promised before he got elected the first time. And what Americans got was no change at all. Obama literally continued everything that Bush was doing before him. Indeed, arguably Americans have never got LESS "change" in all of their history when flip-flopping from one party to the other. So if Obama SAYS he's going to "tax the rich", what they likely MEANS is that the Misers (the top-1%) can sleep easily — knowing their (ill-gotten) fortunes are entirely safe… However, the Reuters article below certainly shows that the PEOPLE are finally waking-up to the fact that if they ever want to "balance the budget" then they have to START taxing those holding all the money. Read More @ BullionBullsCanada.com
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| Stocks Jump Most In 5 Months But Bonds Ain't Buying It (Again) Posted: 19 Nov 2012 02:13 PM PST Best day in 5 months for stocks. AAPL jumping to one-week highs with its 2nd biggest low to high swing in 3 years. Wherever you look, the worst came first and so the talking heads re-appeared saying the worst is over and all is rainbows, unicorns, and mountains are once again molehills. Unfortunately, while ETFs were smashed higher (HYG biggest move in a year on 2nd largest volume ever back above its 200DMA, VXX crushed -9%), risk assets broadly speaking were not playing along with Treasuries especially drifting lower in yield from the European close (and EURUSD) as stocks surged to the highs of the day. Commodities soared with Oil leading the way - though post-Europe everything flattened and leaked lower. VIX collapsed 1.2vols to end just above 15% (notably ahead of stocks relatively speaking) but equity volume on the day was dismally low as S&P 500 futures broke back above the 200DMA amid larger than average trade size.
Bonds weren't buying the bullishness in stocks and EURUSD...
More broadly, while commodities soared (with Oil squeezing hugely higher)...
... across FX, precious metals, rates, and spreads, equity performance was uber-exuberant...
The last time we saw a trend divergence between HYG and its intrinsics (early September), we saw a very significant correction between the underlying and the ETF which then rapidly reverted the next day (see bullish green oval to blue oval compared to bearish red oval to blue oval). So now tomorrow we might see HY bonds bid (like CDX today) and selling (arb) in the HYG ETF itself to narrow the gap...
The HYG volume today was enormous - 2nd highest ever. The collapse in CDX spreads and this move in HYG seem massively overdone given the total and utter void of news - is this echoes of last Thanksgiving week? Lots of 'technical' looking moves today: ES over 200DMA, HYG over 200DMA, AAPL to critical VWAP, WTI to 50DMA, EUR to 200DMA 1.28 figure...
This had the feel of great desparation to us - the moves too huge to be justified by any event (Greece, Fiscal Cliff, whatever - as everyone knows there is no solution in the short-term). Front-running Bernanke? Don't think so - MBS and TSYs not moving much. We somewhat jokingly comment on the hedge funds all crying out in pain at AAPL's demise - well we wonder whether this well-orchestrated massive-scale liftathon (in every direct correlated asset possible - EURUSD, HYG, Vol?) was all about enabling exits...
No news and no volume, it would appear, is good news for stocks.
Charts: Bloomberg and Capital Context Bonus Chart: A thought about what we just did... just as we auctioned back up to Bernanke's bottom after breaking down, so this rampfest appears to be nothing but an auction to test for any follow through up to Draghi's Derriere...
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| Gold Daily and Silver Weekly Charts - Cup and Handle Continues to Develop Posted: 19 Nov 2012 02:04 PM PST |
Wal Mart, the world's largest store, is fighting against a workforce preparing to walkout on Black Friday. According to 
Today James Turk sent King World News exclusively a chart that every investor needs to see. It really is true that a picture is worth a thousand words. But first, here is what Turk had to say about the the markets and what is happening behind the scenes: "What a great way to start the week, Eric. Even the stock market is rising, possibly because it was due for a bounce after the pummeling it has taken lately. But it probably bounced because the Federal Reserve has started the printing presses now that the election is over.
Gold is heading to $3,500 and possibly as high as $12,400 an ounce predicts 'Mr. Gold' Jim Sinclair the legendary gold trader who advised the Hunt Brothers in the late 1970s and probably made more money than anybody else of of the 1970's gold boom.
It's funny more precious metals observers, investors, and even the 'bugs' don't talk about it more. Silver suppression commentators have talked about the various factors and machinations that keep silver ridiculously cheap, but there hasn't been enough discussion about the importance of the $50 mark for silver. If you don't know, it's not just that it's double top resistance from a technical perspective. (See Figure 1 below.) No, far more important than this is the fate of the US empire / Western alliance and its dollar($) hegemony / fiat currency based markets / economies lie in the balance of silver remaining under this threshold. Or in other words everything will change once an ounce of silver is priced above a $50 bill – everything.
A new report from the world's largest gold producer Barrick Gold provides 
An article in The Wall Street Journal a few days ago caught my attention. It reported: "Gold prices dropped on signs that demand for the precious metal is sagging. 
In 1936, the US government began circulating a series of 
Believe it when you see it. Lol!
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