Gold World News Flash

---

• New Chinese leadership to follow Bank of Japan’s $137bn money stimulus program increase and boost gold
• Time to Buy, Buy, Buy
• The great precious metals managed retreat
• We’re Witnessing Shocking Surge Of Retail Gold & Silver Buying
• Is a Central Bank Gold Run at Hand?
• Renminbi Relentlessly Replacing Dollar As Reserve Currency
• Silver Market Update – Chris Duane
• Why Gold will Benefit from the Global Debt Crisis
• Who Will Lead America Over the Next Four Years?
• Bundesbank Continues Golden Damage Control: Invokes Ghosts Of Simon Gruber And Goldfinger
• In The News Today
• Jim's Mailbox
• Why Bankers Own the World's Gold
• SHOCK: 72 Hours After Grid-Down: Starvation, Supply Shortages, Food Lines, No Clean Water, No Gas, Transportation Standstill *Independent Reports, Pics, Video*
• Monica & John Miller–The Bank Holiday Is Getting Closer-Save Your Money Now 2.Nov.12
• Thom Calandra: Colombia via Toronto -- InterBolsa drama, seizure, and empanadas
• Patrick Killelea: What Every Homebuyer (And Homeowner) Should Know Now
• Gold $1109 Price Target Still Prevails 
• Gold Time to Buy, Buy, Buy!
• This Past Week in Gold

New Chinese leadership to follow Bank of Japan’s $137bn money stimulus program increase and boost gold Posted: 04 Nov 2012 07:10 AM PST Next week is a watershed for global politics with the US presidential election and the change of leadership in China at the Party Congress. There may not be a change of leadership in the US but the new faces in the Chinese politburo will want to make their mark.

Time to Buy, Buy, Buy Posted: 04 Nov 2012 07:05 AM PST If you aren't already in, Monday or Tuesday should represent an exceptional buying opportunity as gold moves into its final intermediate cycle bottom. Now that the 38% retracement has been breached I would look for a final exhaustion move to test the 50% level early next week as we move into the elections.

The great precious metals managed retreat Posted: 04 Nov 2012 07:00 AM PST Writing today for Resource Investor, Jeffrey Lewis of Silver-Coin-Investor.com notes the irony that even though we're "in the age of the LIBOR scandal, Financial Accounting Standards Board mark-to-market rule changes, high-frequency trading programs front-running retail investors, MF Global's dramatic demise, and Bernie Madoff's outrageous Ponzi scheme ... it continues to be taboo to even entertain the idea that the precious metals markets could actually be managed."

We’re Witnessing Shocking Surge Of Retail Gold & Silver Buying Posted: 03 Nov 2012 11:01 PM PDT Today one of largest gold and silver dealers in the United States told King World News, "We had massive retail buying of gold and silver this week. I would also add the buyers have come flooding in for the past two weeks, but there was literally an enormous surge of buying which took place on the gold and silver takedown on Friday." This posting includes an audio/video/photo media file: Download Now

Is a Central Bank Gold Run at Hand? Posted: 03 Nov 2012 10:55 PM PDT by Charles Goyette, Lew Rockwell: On learning that French gold was being held by the U.S. Federal Reserve, French President Charles de Gaulle is reported to have said, "I could hardly sleep easily with such an arrangement." So in 1965 he ordered French navy ships to cross the Atlantic to pick up $150 million in gold held in the Fed's New York vaults and deliver it to the Banque de France in Paris. It was a prudent move by de Gaulle. And it was consistent with the advice I have long given: Do not leave your gold in the care of somebody else. Take physical possession of your gold. De Gaulle realized the United States was running an international con. It had promised that holders of U.S. dollars would always be able to redeem them for gold at the official rate of $35 per ounce. But like someone writing bad checks, it was clear that the U.S. was printing more dollars than it could possibly redeem at that rate. Read More @ LewRockwell.com

Renminbi Relentlessly Replacing Dollar As Reserve Currency Posted: 03 Nov 2012 09:40 PM PDT by Jeff Nielson, Bullion Bulls Canada: It is no secret that China is replacing the U.S. dollar with its own currency in more and more of its bilateral trading. It's apparent to all that the renminbi will soon have (at least) a co-equal status with the dollar as the global "reserve currency". Yet what is rarely if ever discussed in the mainstream media are the enormous economic repercussions of a world suddenly awash with a massive glut of surplus dollars. In most respects economics mirrors one of the basic principles of physics: for every action there is an equal-and-opposite reaction. If farmers produce a bumper-crop of wheat and supply soars, then the price falls. Similarly, if (for some reason) the demand for wheat suddenly collapsed, the price would also fall – as both a jump in supply and/or a plunge in demand result in the same state: abundant/excessive supply. And the consequence of excessive supply is always a fall in price. Read More @ BullionBullsCanada.com

Silver Market Update – Chris Duane Posted: 03 Nov 2012 08:25 PM PDT from TruthNeverTold :

Why Gold will Benefit from the Global Debt Crisis Posted: 03 Nov 2012 08:10 PM PDT by Clif Droke, Financial Sense: One of the most common questions that I'm asked goes something like this: "If the deflationary long-term cycle is in its 'hard down' phase until 2014, why should we expect gold' value to rise? Shouldn't we instead expect to see a rising dollar along with a falling gold price?" That's a good question and on the surface it makes sense. The dollar after all has historically been inversely correlated with gold, and since the currency tends to benefit from deflation it stands to reason that a rising dollar during "runaway" deflation would lead to lower gold prices. The answer is more complex than this, however. Gold tends to outperform other assets at the two extreme ends of the 60-year economic "long wave" cycle, namely during the runaway inflation and runaway deflation parts of the cycle which occur approximately every 20-30 years. The last time we saw a strong performance in the yellow metal was the late 1970s when the inflationary cycle was peaking. Read More @ FinancialSense.com

Who Will Lead America Over the Next Four Years? Posted: 03 Nov 2012 07:00 PM PDT Frank Holmes, U. S. Global Investors writes: Our thoughts are with our readers, friends and families in the Northeast, as Hurricane Sandy did her best to create a path of destruction, leave millions without power, weaken the transportation system and batter homes, businesses and shorelines. I'm confident that in these tough times, America will continue to demonstrate goodwill and generosity, with citizens banding together to help fellow neighbors. Americans will also be united in heading to the polls next Tuesday to determine who they want to be the next president and vice president. After months of experts, news reporters and the candidates inundating us with a barrage of facts and opinions, voters have the last word. Research finds that historically Americans' say has been swayed by very recent stock market performance. Last July, I covered the work of Adam Hamilton from Zeal LLC, who analyzed that the market has typically determined whether an incumbent leader wins. He used InvesTech research dating back to 1900 to look at market results covering the two months leading up to the presidential election. The majority of the time, when stocks rose in September and October, the incumbent party was reelected; when equities dropped, the incumbent typically lost. He discovered that "out of the last 28 presidential elections, this simple indicator has proven correct 25 times. This is an astounding 89 percent success rate!" This shows that Americans "make political decisions based on how our families are faring economically," he explained in an October update on this topic. The stock market, as a proxy for the broader U.S. economy, "heavily influences how we cast our ballots." However, during September and October of this year, the S&P 500 Index rose 0.40 percent, which makes it too close to call an incumbent win. This "essentially dead flat" result has made the few days leading up to the election "super-important." Adam says, "We all figured it would be a close race in our heavily-divided country, and the stock markets are certainly exacerbating this with their schizophrenic September-October ride." There has also been a close relationship between President Obama's approval rating from Gallup and the performance of the S&P since he took office. Immediately after Obama took the oath, there appeared to be an inverse correlation between the stock market and the approval rating while the president enjoyed a "honeymoon" period. We "had high hopes his leadership would bolster a rapid economic recovery in America," says Adam. However, following the honeymoon, "Americans' views on the job Obama is doing have been closely tied to the fortunes of our stock markets." Beginning in mid-2010, as the stock market rose, the approval rating for the president climbed; when the market corrected in 2011, so did the Gallup poll. What's interesting is that while the S&P has climbed an outstanding 68 percent over the president's term, the president's approval rating sits at only 51 percent as of the end of October 2012. This weak approval has been attributed by several experts to stagnant job growth, a slowing global economy, weak U.S. GDP growth, and a mountain of rules and regulations that have hindered businesses over recent years. Alan Zafran of Luminous Capital believes that these reasons are why "CEO confidence remains listless, lethargic and dispirited." According to the YPO Global Pulse Confidence Index, which measures executives' perspectives on the business climate, leaders' confidence around the world, except for in Latin America, "fell modestly over the past three months and remains in largely uninspiring territory." As you can see, a majority of CEOs responded that there would be no change in their businesses' employee count and fixed investment. He indicates that the most important reason for a slump in CEO confidence is that "uncertainty relating to America's tax code and regulatory environment as well as its health care and retirement systems – particularly in the face of our nation's 'fiscal cliff' – has stymied many American CEOs' willingness to add jobs and buy business equity today." Zafran concludes his article by calling for "meaningful fiscal action" to get the U.S. economy out of its "financial ditch" and raise the confidence of CEOs. As I often say, it's not about the political party, it's the policies. Regardless of which candidate wins, Goldman Sachs' research shows that the market is indifferent during the president's first year. As you can see in the chart below featured on Business Insider's website, since 1976, the S&P has experienced a median return of 10 percent over the twelve months following the election of both a democrat and a republican. How is Energy Affected by the Candidates? If President Obama is reelected, it could be a negative for certain energy companies involved in natural gas fracking, says International Strategy & Investment (ISI). The research firm put together an "Obama Portfolio" which includes sectors such as taxes, defense, discretionary spending, energy and infrastructure. ISI says that companies "highly leveraged to fracking and onshore drilling in the U.S." could be negatively affected "if regulatory costs are substantially higher in a second Obama term." Conversely, a Governor Mitt Romney win could be significant for energy companies. In its "Romney Portfolio" ISI's rationale is that Romney and the GOP "will try to do more to promote traditional forms of energy, including offshore drilling, approving the Keystone pipeline, and exploiting the nation's coal resources."   U.S. Global's Director of Research John Derrick also discussed the impact of energy companies as well as tax policy differences between the two candidates with AdvisorOne. Read the article now. Join Our Post-Election Outlook Webcast After you cast your ballot, make sure to tune into our post-election webcast where I'll be discussing the questions that have been on investors' minds with Money Map Press Investment Strategist Keith Fitz-Gerald. We'll talk about a variety of issues, including the "fiscal cliff," the housing recovery and the future of energy prices. Don't miss it! Add to your calendar today. November 3, 2012 ( Source: U. S. Globlal Investors) http://www.usfunds.com/investor-resources/investor-alert/who-will-lead-america-over-the-next-four-years/#.UJW-GG_R6Vp

Bundesbank Continues Golden Damage Control: Invokes Ghosts Of Simon Gruber And Goldfinger Posted: 03 Nov 2012 03:41 PM PDT It appears that the Bundesbank has never heard of the saying: when in a hole, stop digging (neither has any Keynesian in the history of humanity, but that's a different story). For the full plotline on Germany and its tungsten gold, read here, here, here, here and here. From Andreas Dobret, member of the Executive Board of the German Bundesbank, speech to FRBNY's Bill Dudley Remarks on German gold reserves   Please let me also comment on the bizarre public discussion we are currently facing in Germany on the safety of our gold deposits outside Germany – a discussion which is driven by irrational fears.   In this context, I wish to warn against voluntarily adding fuel to the general sense of uncertainty among the German public in times like these by conducting a "phantom debate" on the safety of our gold reserves.   The arguments raised are not really convincing. And I am glad that this is common sense for most Germans. Following the statement by the President of the Federal Court of Auditors in Germany, the discussion is now likely to come to an end – and it should do so before it causes harm to the excellent relationship between the Bundesbank and the US Fed.   Let's get back to facts and figures: I would like to remind you that our gold reserves are part of the German currency reserves. These were accumulated over time thanks, in part, to Germany's economic boom in the 1950s and 1960s. Germany's growing economic strength, especially its strong external position, resulted in rather large trade account surpluses, most of them acquired in US dollars. At that time, the International Monetary System, known as the Bretton Woods System, was dominated by the US currency. As long as this system was in force, which was up until 1971, the US Fed was obliged to exchange its currency for gold.   Any current account surplus thus resulted in an increase in Germany's gold reserves. This gold was stored in US vaults for obvious reasons [ZH: sorry, we don't have an econ PhD: what are the "obvious reasons"?]. This was not only the case for the gold hold by the Bundesbank – it was, in fact, common practice. By the way: it was the only practical thing to do, since running a trade account deficit meant a decrease in gold stocks.   Thus, we are now looking back at sixty years not only of fruitful cooperation in many fields and international fora, but also of storing gold and trading via the New York Fed. As a matter of fact, it is sensible for us to do so in New York, as Frankfurt is not a gold trading venue.   Throughout these sixty years, we have never encountered the slightest problem, let alone had any doubts concerning the credibility of the Fed [ZH may, and likely will, soon provide a few historical facts which will cast some serious doubts on this claim. Very serious doubts]. And for this, Bill, I would like to thank you personally. I am also grateful for your uncomplicated cooperation in so many matters. The Bundesbank will remain the Fed's trusted partner in future, and we will continue to take advantage of the Fed's services by storing some of our currency reserves as gold in New York.   At the same time, you can be assured that we are confident that our gold is in safe hands with you. The days in which Hollywood Germans such as Gerd Fröbe, better known as Goldfinger, and East German terrorist Simon Gruber, masterminded gold heists in US vaults are long gone. Nobody can seriously imagine scenarios like these, which are reminiscent of a James Bond movie with Goldfinger playing the role of a US Fed accounting clerk.   While gold is important, we have to combat a crisis of confidence in the euro area. This is the task we need to concentrate on. And we will do so.   Thank you for your attention. And that was it for Herr Dombret's comments. Which is good: because really, when in a hole... As for the full true story, there is much more here, which we hope to reveal soon in its entirety. We are confident our German readers (and not only) would find the complete, historically-documented details, quite stunning.

In The News Today Posted: 03 Nov 2012 02:03 PM PDT My Dear Friends, The thesis of MSM is that "Nothing must ever disturb the social order." Mother Nature can do this in seconds, and an overnight collapse of confidence in the dollar will do it in three days. Currency induced cost push inflation is what will collapse confidence overnight and cause an explosion in Continue reading In The News Today

Jim's Mailbox Posted: 03 Nov 2012 01:56 PM PDT Hi Jim, Thanks for all the help you give the gold community. Bought my first May 2001(pure luck). The below link has some chatter about EU banning gold sales and using gold to back euro bonds. What do you think? No need to read the link I'm just providing it for reference but the Continue reading Jim's Mailbox

Why Bankers Own the World's Gold Posted: 03 Nov 2012 01:45 PM PDT Why Bankers Own The World's Gold The real conclusion that must be internalized is that, while buying precious metals and other tangible assets can be an excellent way of exiting the fiat currency paradigm, we mustn't forget that central bankers … Continue reading →

SHOCK: 72 Hours After Grid-Down: Starvation, Supply Shortages, Food Lines, No Clean Water, No Gas, Transportation Standstill *Independent Reports, Pics, Video* Posted: 03 Nov 2012 12:34 PM PDT A recent study noted that the majority of people have enough food in their pantries to feed their household for about three days and that seemingly stable societies are really just nine meals from anarchy. With most of us dependent on just-in-time transportation systems to always be available, few ever consider the worst case scenario. For tens of thousands of east coast residents that worst case scenario is now playing out in real-time. No longer are images of starving people waiting for government handouts restricted to just the third-world. In the midst of crisis, once civilized societies will very rapidly descend into chaos when essential infrastructure systems collapse. Though the National Guard was deployed before the storm even hit, there is simply no way for the government to coordinate a response requiring millions of servings of food, water and medical supplies Many east coast residents who failed to evacuate or prepare reserve supplies ahead of the storm are being forced to fend for themselves. Read more... This posting includes an audio/video/photo media file: Download Now

Monica & John Miller–The Bank Holiday Is Getting Closer-Save Your Money Now 2.Nov.12 Posted: 03 Nov 2012 12:23 PM PDT Monica & John Miller left their home in Hawaii, in 2008, for New Zealand, in the midst of the U.S. Banking Crisis. They left to find answers to some basic financial questions asked by their concerned Maui investment club members. Club members were fearful of Capital Controls, and, or a Banking Holiday, after Gerald Celente brought Joe Biden's comments to light, in his Trends Journal. Some of the questions that needed answering were: how to open a New Zealand savings, and/or investment account? Could U.S. citizens legally take their IRA's out of America without penalty or taxes? Where is the best place to buy gold overseas?How easy was it to do all this. Could they handle all this from home, or did they have to fly to New Zealand to get it done? Not only did the Millers get answers, but they decided to permanently remain in New Zealand, and write a book on the subject. We've talked before and the believe things are getting worse. This posting includes an audio/video/photo media file: Download Now

Thom Calandra: Colombia via Toronto -- InterBolsa drama, seizure, and empanadas Posted: 03 Nov 2012 11:45 AM PDT 1:30p ET Saturday, November 3, 2012 Dear Friend of GATA and Gold: GATA's longtime friend the financial writer Thom Calandra was perhaps the first mainstream financial journalist to take note of the gold price suppression scheme when he worked at MarketWatch.com, the news organization he co-founded. He recently revived his gold- and silver-mining-oriented newsletter, The Calandra Report, and today provided a sample of the letter to be shared with GATA supporters along with his pledge to donate to GATA 8,000 shares of his largest mining company holding when the gold price passes $2,000. That is a most generous pledge. So yesterday's Calandra Report is appended. A year's subscription is $54 and frequency of publication seems to be running at around twice weekly. Subscription information is here: https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=UNB... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. * * * Colombia Via Toronto: InterBolsa Drama, Seizure, and Empanadas The Calandra Report Friday, November 2, 2012 TORONTO -- Heading back here in two days. Poking around some fresh Colombia leads. In the meantime, this just in: Colombia regulators seized a leading brokerage as liquidity ebbed. InterBolsa Comisionista is a broker there I have known for many years. We discussed in previous reports the work of one of its mining analysts, Gabriel Bayona Fetecua, a brilliant geologist who follows Solvista and other junior prospectors. A growing number of Canada and USA-domiciled natural resources developers trade locally on the Colombian exchanges. The largest that is a native, Mineros SA, was falling in price Friday. But then gold was taking a beating as well at the hands of a rising U.S. dollar. Several oil companies, including Colombia's largest, Ecopetrol, also were declining. Regulators said they were undertaknig the seizure to protect InterBolsa investors and customers. In what might not be a coincidence, the action came on a day when gold was declining more than $35. Such a one-day decline, after a fall Thursday, might have unwound InterBolsa trading positions on its proprietary desk. Note I said "might have." More speculative: If that is so, in the perverse way markets work, equities of companies that trade largely on outside exchanges yet do business in Colombia might benefit from the regulatory action. We'll keep an eye on this. ... 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 $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at http://www.allprogold.com/. InterBolsa handled almost a third of all trading activity in Colombia. Its ETF partner is Global X Funds of Manhattan. Global X operates exchange traded funds that represent country indexes -- among others, Colombia and Brazil. InterBolsa and its parent also have operations in Brazil, Panama, and elsewhere in Latin America. As one of several gold prospector CEOs told me this morning, "This is not just bad or very bad. It's #$@%# real bad." The Global X/InterBolsa FTSE-20 Colombia Fund, an ETF, is up about 70 percent since January 2010. Colombia's economy and currency, the peso, are among the best-performing in Latin America and among Second World nations. It is my favorite nation outside of Tiburon, California. I expect extreme fallout from the seizure in coming days, perhaps linked to exchange-traded funds in general or to proprietary trading. FAMILY EVENTS: I will be meeting the CEO of Gran Colombia Gold for a second time (Maria Consuelo Araujo likely does not remember the first time, at a crowded conference booth in Medellin, or Toronto, or Vancouver). Members of the The Calandra Report family are invited to a 5 p.m. cocktail and reception this coming Tuesday in Toronto. I will be there with several analysts and investors who are examining the company's recent gold and silver note financings. Gran Colombia and Toronto bank GMP Securities this week closed a $100 million financing using gold notes backed by Segovia-produced gold in Antioquia, Colombia. I know some of the largest purchasers of the notes, whose capital raising will aim to build a mill at Segovia and reduce what plainly is an expensive operating cost of $1,200 to $1,300 per ounce. Gran Colombia's El Marmato, as longtime TCR family members might recall, was the reason I started returning to Colombia in 2007. Marmato is one of the world's 20 largest gold (and silver) deposits, pegged as high as 20 million ounces when the entire mountain is factored. Attending will be the Gran Colombia Gold CEO Araujo. Conshe, as she is called, was Colombia's minister of foreign affairs from August 2006 to February 2007. She also served as minister of culture from August 2002 to February 2006. She studied diplomacy and economics in Milano, Italia. She could be president of Colombia one day. Her influence has assisted Gran Colombia with the operation or purchase of El Marmato, Segovia, Zancudo, and other properties in Colombia. Who knows? Perhaps she also had something to do with Madonna deciding to appear at this month in Medellin and not the capital city of Bogota. TCR family, I do not own shares or warrants of Gran Colombia (GCM in Canada), nor do I own the interest-bearing gold or silver notes. The silver notes trade in Canada as do warrants that are starting to look attractive below 10 cents. I am considering a tour of Gran Colombia Gold's Segovia operation in Antioquia this month. The cocktail party this week will be downtown in Toronto and, in Colombian style, offer what I think will be delectable empanadas and other fulfilling fare. Get an invite by e-mailing investorrelations@grancolombiagold.com. Tell them The Calandra Report sent you. CONSOLATION: U.S. Global Funds's Frank Holmes the other day schooled us in the geometry of volatility. Holmes and his Texas company (GROW in USA) handle almost $2 billion in assets. Much of that is in resources and in equities of emerging markets. Thus shares of GROW rise and fall like a banshee devil cross-dressed as a lemur. Holmes explains volatility -- sharp rises and falls in equities, gold, oil, and such -- in strict statistical terms, with his Canadian flair for drama. I owe our family a review of his latest rap, but until then, metals and metals equities investors might take note that "historically, if gold rises 30 percent over an X-month period, there is a 93 percent (or is it 98 percent?) chance it will retrace most of that move." And vice-versa. GROW has a 5 percent dividend right now and I am thinking of buying shares. Holmes is an active buyer of gold, silver, and metals equities and purchases on behalf of his mutual funds shares of coal companies and even those interest-bearing gold and silver denominated notes that we pointed to just above. More to come. TCR'S ANOINTED FIVE: Colt Resources (GTP in Canada), Solvista Gold (SVV in Canada), Gold Standard Ventures (GSV in Canada and USA), Pilot Gold (PLG in Canada), and Seafield Resources (SFF in Canada). All others researched in these reports to our TCR family are highly speculative. On price points for the anointed five, Pilot Gold and Seafield are within acceptable purchase limits at $1.65 and 14 cents Canadian, respectively. Our other three, Solvista, Colt, and Gold Standard, dwell well above our earliest coverage price points. Still, those wary of dollar strength and gold weakness who wish to sell their Solvista shares with profits from 25 cents to 30 cents to the current level of 75 cents should be my guest. The shares failed to regain $1 Canadian a week ago even as CEO Miller Oprey visited potential investors in St. Louis, Texas, and elsewhere. That concerns me. I will hold personally and sell only if the shares go below 70 cents. I saw Friday that a Peruvian unit, the same one whose increased stake in Antioquia Gold (AGD) has capped that Colombia operator's stock price, is now doing the same with Batero Gold (BAT in Canada). All I can say is that the group, Consorcio Minero Horizonte, or CMH, is by throwing premium cash at Canada-domiciled metals prospectors, effectively shutting down any stock appreciation. Just look at shares of AGD. Batero operates next to Seafield Resources (SFF), which we research here at TCR and which is a holding, one of the anointed five. If you believe as I do that the Quinchia district of Colombia, on the other side of El Marmato, will one day produce untold riches for its operators, then the one with the potential for sharp price appreciation is Seafield. I own it, as we all know, at the current price. Don't sweat the gold volatility, folks. As Mr. Holmes, a sometimes kick-boxer (so is Bob Dylan, by the way) tells me, "Learn to understand volatility. If gold falls 10 percent in a day, and it does that rarely, there is a 90-odd percent chance it will rise just as much later on. Buy it." On another note, Holmes expects many long-short eqity hedge funds to have dissolved, evaporated, Fifi Goes Poof, by year-end or early 2013. He also sees merger and takeover consolidation among Colombian oil companies. I am so in I am out of breath. Personal purchases that in no way should be duplicated here in recent days include Cayden Resources, a Mexico prospector in the Guerrero Gold Belt, and Pacific Coal (PAK in Canada), a Colombia coal operator. As stated numerous times, I am increasing my holdings of all things Colombia-related if they are 1) cheap, 2) up to snuff on growth and assets, and 3) have folks on board I trust. I have not been to Cayden's nor to Pacific Coal's properties but I hope to. I also am excited about the progress NuLegacy Gold is making on its Red Hill property drilling in Nevada. I also see Gold Standard Ventures (GSV) as being eminently buyable if the shares go below $1.55. * * * Join GATA here: Vancouver Resource Investment Conference Sunday-Monday, January 20 and 21, 2013 Vancouver Convention Centre West Vancouver, British Columbia, Canada http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16 ADVERTISEMENT Opinion Around the World Is Changing in Favor of Gold -- Find Out Why 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

Patrick Killelea: What Every Homebuyer (And Homeowner) Should Know Now Posted: 03 Nov 2012 10:52 AM PDT Submitted by Chris Martenson of Peak Prosperity Patrick Killelea: What Every Homebuyer (And Homeowner) Should Know Now For many, the collapse of the housing bubble was the trigger that began the era of economic slowdown Americans find themselves mired in. But recently there have been growing reports in the media of a housing "recovery." So we've invited Patrick Killelea, founder of the popular housing site Patrick.net and author of The Housing Trap: How Buyers Are Captured and Abused and How to Defend Yourself, to clarify the situation. The short answer is this: While there are some markets where home prices are back in line with both fundamental and historic norms, buyers still need to exert caution when making a purchase. First, to the reports of "recovery": Prices at the low end are definitely rising. All measures are showing that. But I don't like to use the word "recovery," because it implies there's something good about rising prices. Rising prices are a kind of inflation. I'd be delighted if reporters would use the correct term and say "housing inflation return." But back to the point, prices are rising at the low end. But it's not really an organic growth.   What's happening is that a lot of investors realize two important things. One is that the price of a house in the biggest bubble areas like Phoenix fell well below the price implied by the rental evaluation. So these guys want to make a profit and they realize, if we buy up these houses and rent them out, we're going to get a better return on our money than we can get anywhere else, especially with interest rates being as low as they are. The return on a rental property, often referred to, as "capitalization rate" can easily be 10% in these areas. And that's huge. So that drew the attention of not only little investors, but also actually even big hedge funds. Although recently a lot of those have announced that they're getting out of the game. They seem to have picked over a lot of these places, and there aren't the deals that there were even a year or two ago.   At the other end of the spectrum are really expensive places like New York City. The crash was very muted, and it was hardly a crash at all. It was a downward trend in pricing. But what that means is, it's still difficult, or maybe even impossible, to buy property in New York City and rent it out for a profit. You can't do it. You'll lose money. So if you were buying there, you'd be betting truly on appreciation that's not justified by the underlying fundamentals.   I said that investors realized two things. The other thing investors realized is that they have cash. Ordinary buyers, families, don't generally have enough cash to buy outright. So that gives the investors a huge advantage, especially since lending is still pretty tight. Even with the low interest rates, it's still considerably harder to get a mortgage now than it was in the big bubble years, 2004 and 2005.   So I'd say it's an investor-driven recovery. And that recovery is really only in the places where they had a huge bubble and a huge crash. I'd say that it's safe to buy in those areas, especially in places where the house is lower than the rental equivalent cost. Patrick goes on to share the key elements to keep in mind when buying a house, including price-to-rent ratios, leverage limits, construction quality, and diversity of the local economy. Beyond that, he shares his concerns about how the playing field when buying a home is slanted against the buyer's interests. He warns of numerous tactics the industry employs, most notably information asymmetry, that consumers need to be aware of, including: There are all kinds of tricks that agents play. I list a lot of them in my book, but it would probably take several more books to cover it all. There is a lot of psychological manipulation of buyers. Agents are used-house salesmen. That sounds harsh, but it's true. They are kind of like used-car salesmen: they're not there to provide value; they're there to get a commission. That's their goal. And if you don't buy, they don't get paid.   A typical trick of theirs would be first taking you around and showing you extremely ugly and overpriced houses. And then they show you the one that they think you'll buy. Maybe it's overpriced as well, but not as bad. So you've got an anchoring effect, and it makes you a little more susceptible.   There are all kinds of other and evil games that are played. And because the whole housing market is very non-transparent, it's very hard to pin them down. You don't have any way of knowing if there are any other offers at all, because you're not allowed to look at the other offers. You don't know that they exist. So agents can lie with impunity and say, oh, there are twenty offers, and people just believe it. They think why would the agent lie?   Clearly, they're not thinking hard enough. The agent has a motive to lie. And if you can't prove that they're not lying, the agent has the means, motive, and the opportunity to deceive you for profit. That would be enough to convict them if they were in court. But it's normal business practice in real estate, so nobody seems to think twice about it.   And agents and house inspectors often have a cozy relationship. Maybe a little too cozy, where the agent recommends an inspector, and the inspector sort of passively agrees he's not going to find anything. He gets business from the realtor, and the realtor gets the recommendation that you should buy it. You should really separate those things. Don't take the realtor's recommendation for an inspector. Find your own inspector, preferably one who has nothing to do with that realtor.  Patrick also shares insights from his analysis of years of national home purchases. These include: don't sell too often (the transaction costs will kill your returns), don't upgrade too frequently (it's more costly than you think), and it's worth it to transact without an agent if you're able to do so. Click the play button below to listen to Chris' interview with Patrick Killelea (39m:55s): iTunes | Download | Report Problem Click here to read the full transcript

Gold $1109 Price Target Still Prevails  Posted: 03 Nov 2012 09:15 AM PDT Within the context of a Primary Bull Market, the price destination target of $1,109 an ounce for gold remains prevalent; as can be seen from the 3% X 3 box reversal Point & Figure chart below (courtesy stockcharts.com)

Gold Time to Buy, Buy, Buy! Posted: 03 Nov 2012 08:32 AM PDT If you aren't already in, Monday or Tuesday should represent an exceptional buying opportunity as gold moves into its final intermediate cycle bottom. Now that the 38% retracement has been breached I would look for a final exhaustion move to test the 50% level early next week as we move into the elections.

This Past Week in Gold Posted: 03 Nov 2012 07:15 AM PDT Summary: Long term - on major sell signal. Short term - on sell signals. A multi week correction is in progress. Read More...

You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610