Gold World News Flash |
- Asian Metals Market Update
- Searching for Nazi Gold: No Interest or Research for Nearly Forty Years!: Gov Report
- Thousands Of Shocking Threats Of Violence By Obama Supporters On The Eve Of The Election
- Are Republicans or Democrats Better for Gold & Silver Performance?
- Here Is Why A Monumental Move Is Coming In Gold & Silver
- America’s Silver Bullion Program, and the Digital Age of Coining
- Gold Seeker Closing Report: Gold and Silver End Modestly Higher
- How To Lull A Banker To Sleep
- Hurricane Sandy: The ‘October Surprise’ Which Won Obama the Election?
- The Gold Price Closed Up $8.10 at $1,683.20 I'm Buying Both Silver and Gold Tomorrow
- QE3 is all talk, no action yet, Turk tells King World News
- Battling emus and gold, India wants more people to buy shares
- Vanity of Vanities
- IceCap Asset Management: How To Lull A Banker To Sleep
- Guest Post: 'I' For Inevitable
- How Can You Help America? Do not vote Tomorrow & Buyg 1oz of Physical Gold & Silver Instead
- Daily Gold 'Cup and Handle' Chart Update
- We invite you to visit our mobile pages
- Gold Daily and Silver Weekly Charts
- Opportunity Knocks - by Poly
- James Turk - Fed Allowing Lehman-Type Blowup To Occur
- The Preparedness Review: 17 Must-Read Preparedness Strategies
- Look to Midtier and Small-Cap Gold Equities for Growth
- Scotiabank is likely the new manipulative short in silver, Steer writes
- Look to Midtier and Small-Cap Gold Equities for Growth: Joe Foster
- Yra On Gold Market Overview From An HFT Perspective
- Embry gives King World News his forecast for 2013
- Pre-Election Farce
- Bundesbank Official Assures NY Fed That Gold Issue Will Go Away
- LGMR: Gold "Still Above Long-Term Uptrend", Reaction to US Election Result "Likely to be Short-Lived"
| Posted: 06 Nov 2012 12:03 AM PST There will now be a fight between long term bulls and short term bears in gold and silver. Copper and other base metals should bottom out soon. We have the US presidential elections today and by tomorrow morning we will come to know who will rein the world for the next four years.
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| Searching for Nazi Gold: No Interest or Research for Nearly Forty Years!: Gov Report Posted: 05 Nov 2012 11:30 PM PST Charleston Voice
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| Thousands Of Shocking Threats Of Violence By Obama Supporters On The Eve Of The Election Posted: 05 Nov 2012 11:19 PM PST from The Economic Collapse Blog:
Read More @ TheEconomicCollpaseBlog.com
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| Are Republicans or Democrats Better for Gold & Silver Performance? Posted: 05 Nov 2012 11:03 PM PST Here's a breakdown of gold and silver performance by political party for the last 5 US Presidential terms.
What is very clear from the above is that Democrat Clinton, who was very close to the banksters, and in particular, Citigroup banksters, was awful for gold and silver, while Republican Bush, who was very close to oil interests and loved war, was great for the performance of gold and silver. Gold and silver's performance during Democrat Obama's tenure thus far has been closer to their performance during Republican Bush's tenure than Democrat Clinton's tenure. However, I believe that part of gold and silver's resiliency during Democrat Obama's tenure has a lot to do with the fact that when Clinton was in office, the bankers actually had to lease tonnes of physical gold and silver into the open market to suppress the price of gold and silver because they could not yet use the immoral and unethical HFT algos they utilize today to suppress the price of gold and silver in paper markets because they had not yet developed and perfected these algos to manipulate gold and silver prices as well as stock markets in general. Therefore, during Clinton's tenure, the bankers relied primarily on selling physical gold and silver, and not paper gold and silver, to suppress gold and silver prices. For all intents and purposes, one can substitute the world "sell" for the word "lease" above, because though Central Banks still carry this physical gold on the asset side of their balance sheets as "leased" gold, this gold is now likely forever gone from their vaults and will never return. No sane persons or institutions will now part with their physical gold and physical silver and accept fiat paper currency in return.
Thus, though Democrat Obama has been a very banker-friendly President like his predecessor Clinton, gold and silver prices during his tenure have risen, in our opinion, in spite of Democrat Obama, and with a less banker-friendly President in office, the prices of gold and silver would likely be even higher than their present prices. Today, bankers have to create an illusion of massive gold and silver supply by falsely creating billions of paper ounces of gold and silver in the futures markets that simply do not exist in the physical world, aka the REAL world, because they have no more physical gold and silver to sell into the market to suppress the price of gold (or no more physical gold and silver with which they are willing to part). Thus, they are struggling right now to crush the price of gold and silver at a time when all major global fiat paper currencies are right now at their most fragile point in history on their way to worthlessness. Again, we endorse neither the Republican or Democrat candidate in today's US elections as we believe both candidates are equally awful choices. We have presented the two charts above merely for your digestion. Interpret the charts as you may.
About the author: JS Kim is the founder and Managing Director of SmartKnowledgeU, a fiercely independent investment research & wealth consulting company. His flagship investment newsletter, the Crisis Investment Opportunities newsletter, with a focus on Precious Metals, has yielded +24.87% YTD as of November 1, 2012 versus the +12.86% return of the S&P 500 and the +4.01% return of the Philadelphia Gold & Silver Sector index over the same time period. We are NOT perma gold and silver bulls and exit gold and silver stocks as necessary due to banker manipulation schemes as proven by our signficant outperformance of gold and silver mining stock indexes, both over short time periods and over longer periods of 5 years.
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| Here Is Why A Monumental Move Is Coming In Gold & Silver Posted: 05 Nov 2012 10:01 PM PST  Today acclaimed commodity trader Dan Norcini, and 54-year veteran of the markets Ron Rosen sent King World News exclusively some outstanding charts and commentary for our global readers. This will give KWN readers an important snapshot of where we are in the current bull market in the metals, and also lay out why a monumental move is coming in gold and silver.
This posting includes an audio/video/photo media file: Download Now |
| America’s Silver Bullion Program, and the Digital Age of Coining Posted: 05 Nov 2012 10:00 PM PST by Charles Morgan and Hubert Walker, CoinWeek.com:
In a brief history section, the authors discuss how the federal government entered the bullion market after New Deal-era restrictions on private gold ownership were lifted. They also write about the federal government's early efforts to compete against foreign bullion, most notably the South African Krugerrand. The Krugerrand dominated the global gold coin market in the '70s and early '80s, but Americans were prohibited from buying it due to sanctions against the Apartheid government. At first, Congress mandated the production of non-legal tender medals to compete on the world market.
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| Gold Seeker Closing Report: Gold and Silver End Modestly Higher Posted: 05 Nov 2012 10:00 PM PST Gold fell $5.42 to $1672.58 in Asia, but it then climbed to as high as $1686.15 in New York and ended with a gain of 0.36%. Silver slipped to $30.64 in Asia, but it then climbed to as high as $31.24 in New York and ended with a gain of 0.78%.
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| Posted: 05 Nov 2012 09:11 PM PST from Zero Hedge:
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| Hurricane Sandy: The ‘October Surprise’ Which Won Obama the Election? Posted: 05 Nov 2012 09:00 PM PST Despite the fact that east coast residents feel "abandoned" by Paul Joseph Watson, InfoWars: With an increasing number of pundits predicting that Barack Obama will secure a second term in the White House tomorrow, one of the primary reasons for his expected victory has been identified as Hurricane Sandy, which derailed Romney's momentum and allowed Obama to be portrayed by the media as a strong presidential leader. While gushing over Obama's response to the hurricane, NBC's David Gregory pointed out that Republican Governor Governor Christie's praise for Obama help set the stage for Obama to take center stage as part of "indelible images" that portrayed him in a highly favorable light. Polling expert Nate Silver, who now forecasts that Obama has an 86.3 per cent chance of defeating Mitt Romney, writes today that "the historical memory of the race might turn on the role played by Hurricane Sandy."
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| The Gold Price Closed Up $8.10 at $1,683.20 I'm Buying Both Silver and Gold Tomorrow Posted: 05 Nov 2012 08:08 PM PST Gold Price Close Today : 1683.20 Change : 8.10 or 0.48% Silver Price Close Today : 31.13 Change : 0.278 or 0.90% Gold Silver Ratio Today : 54.067 Change : -0.225 or -0.41% Silver Gold Ratio Today : 0.01850 Change : 0.000077 or 0.42% Platinum Price Close Today : 1538.70 Change : 2.20 or 0.14% Palladium Price Close Today : 602.20 Change : 3.35 or 0.56% S&P 500 : 1,417.26 Change : 3.06 or 0.22% Dow In GOLD$ : $161.13 Change : $ (0.52) or -0.32% Dow in GOLD oz : 7.795 Change : -0.025 or -0.32% Dow in SILVER oz : 421.45 Change : -3.17 or -0.75% Dow Industrial : 13,112.44 Change : 19.28 or 0.15% US Dollar Index : 80.72 Change : 0.131 or 0.16% Please accept my humble thanks for all your emails offering condolences and sympathy on my daughter-in-law's death. I deeply appreciate your kind sympathy. I pray that out of this evil event God will bring good things, and believe he has already begun. Friday brought the [likely] final break in the silver and GOLD PRICE correction. This is a sick stock market that has topped. Take your money out of stocks and put it into silver and gold. Thursday the silver and GOLD PRICE dilated and diddled, but Friday the dam burst. Friday took gold down $40 to $1,674 and silver down an agonizing 189.1 cents to 3083.5c. The GOLD/SILVER RATIO popped up to 54.292. Guessing, anticipating, and prognosticating, I suspect that Friday's Niagara pretty well ended the correction that began in October (really mid-September with the first peak of a double top). Friday's gold low at $1,674.97 fairly fulfilled at 61.8% correction. Gold is also hovering above its 200 Dma ($1,665.80) and 150 DMA ($1,651.77), the frequent targets of its bull market corrections. Could it drop more? Sure, but what is the expected risk of that? Let's say to the August low at $1,650. From today's close that's a tee-tiny 1.9% downside risk, enough for me to throw in the towel and stop waiting. That's true, even though I see a remote possibility it might drop to $1,620 where the long term down-trend line (from Sept 2011) meets the uptrend line from last summer. The SILVER PRICE appears to have completed a move analogous to gold's but -- and here's the worst burr under my saddle -- it hasn't made that 61.8% correction. Friday's low came at 3082c, not some price nearer 3000c. That leaves some slack, some possibility for another spike down. But whither? What's the risk? Give it a wide margin, go back to this summer's August resistance at 2833c. That's an 8.9% risk from here, and I don't think silver will drop that far. At 3000c, silver will attract buyers like pretty girls attract men to a kissing booth. And from today's 3111.3c close, that's a 3.6% risk. As I have many times repeated, I am only a natural born fool from Tennessee, so don't swing over hell using my opinion for a rope. But fool or not, I will be buying both silver and gold tomorrow, while the market is frozen before the US election. Y'all, on the other hand, are free to put your trust in politics, and hope that will bail you out. Relentlessly, yea, relentlessly the US dollar index continues to climb: 80.018 on 1 November, 80.606 on 2 November, and 80.723 today. Rose 13.1 basis points to 80.723, up 0.17% today. On a longer term chart, the dollar index has climbed back over the mid-channel trend line that stretches back to May 2011. Friday it jumped up to its 200 Day Moving Average AND out of the range below 80.25 which had imprisoned it. Today, it closed above that 200 DMA (80.63), and already stands above its 20 (79.92) and 50 DMA (80.00). All that and other indicators point to a higher dollar. Maybe this merely anticipates some change from the US presidential election, but technically the trend points higher. Most of the dollar's gains are being paid by the euro. It gapped down Friday and today, ending down 0.78% at $1.2829. Now it has drawn nigh its crucial 62 DMA ($1.2774). If it closes below that, 'twill drop to $1.2600. It also today closed below the major downtrend line. Market is screaming, "No good news for Europe!" The yen rose 0.23% today to 124.36 cents per 100 yen. Friday it touched one of the many dropping fan lines, and bounced up. Yen has waterfalled like Iguaçu from 128.91c at end-September. Shouldn't some little rally follow? What must you say about stocks when the Dow gains 138.61 on Thursday then loses 139.46? Sick. Puking sick. Today saved no face. Dow gained 19.28 (0.15%) to 13,112.44 while the S&P500 raked in 3.06 (0.22%) to 1,417.26. Look at the chart, bit.ly/REOYvp Immediately you'll see the Dow has been hovering for two weeks like smoke over a garbage dump, just above the 200 DMA (12,987.89). Tried once to pierce that neckline from a head and shoulders earlier this year, with shameful failure. Probably the only thing holding it up is the Quixotic hope that Romney can beat the incumbent, Bernard O'Bama. Remember, Remember, the Fifth of November, Gunpowder, treason, and plot! On 5 November 1605 eleven men led by Guy Fawkes hatched a plot to return England to Roman Catholic obedience by blowing up the King and all the Parliament members on 5 November, packing 36 barrels of gunpowder under the Houses of Parliament. On 4 November the plot was uncovered, the conspirators arrested, and later tried, and convicted. Next January Fawkes and 7 other survivors were hanged, drawn, and quartered and their heads displayed on pikes on London Bridge. The next year Parliament established 5 November as a national day of Thanksgiving. Since then the English have celebrated with bonfires and fireworks. Onto the bonfires they toss effigies called "Guys", and recite the other two lines of the verse I began above: I see no reason why Gunpowered Treason Should ever be forgot. 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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| QE3 is all talk, no action yet, Turk tells King World News Posted: 05 Nov 2012 07:39 PM PST 9:35p ET Monday, November 5, 2012 Dear Friend of GATA and Gold: GoldMoney founder and GATA consultant James Turk today tells King World News that the third installment of the Federal Reserve's program of "quantitative easing" has been all talk and no action so far. "If the Fed doesn't start pumping juice soon, the stock market could tank," Turk says. "It's not the economy that has kept stock prices up at these levels. It is Fed money printing." An excerpt from Turk's interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/5_Ja... 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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| Battling emus and gold, India wants more people to buy shares Posted: 05 Nov 2012 07:26 PM PST Where's Bernie Madoff when you need him? Why not just parole him to New Delhi? * * * By Himank Sharma and Arup Roychoudhury http://www.reuters.com/article/2012/11/05/us-india-investment-shares-idU... A year ago, S. Kashinath, an illiterate laborer from India's southern Tamil Nadu state, lost 300,000 rupees ($5,600) in savings he invested in a pyramid scheme promising high returns from emu farming. Now Kashinath, and around 23 million other low- to middle-income Indians, are being courted by a government scheme to boost investment in local stock markets. The recently introduced Rajiv Gandhi Equity Savings Scheme (RGESS)-- named after a popular prime minister who was assassinated in 1991 -- offers Indian investors earning less than 1 million rupees ($18,600) a year a 50 percent tax break on stock investments of up to 50,000 rupees. But Kashinath thinks the plan has as much chance of flying as the Australian birds he bought into. "I can't even read or write. How do you expect me to buy stocks that I don't understand? My money is stuck, but once I get it back, I'll open a bank account to keep it safe," he told Reuters by telephone. ... 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.... The ambitious scheme, which aims to broaden share ownership, re-energize an unprofitable mutual fund industry, and bring some structure to a patchy investment landscape, faces formidable barriers -- not least India's love affair with gold. India has one of the world's highest savings rates, at over 30 percent -- more than double the United States -- and the bulk of the nation's $800 billion in savings is parked in gold. India is the world's biggest gold buyer and holds $1 trillion worth of the precious metal, World Gold Council data shows -- more than the combined military spending by the United States, China, Russia, and Great Britain. "Gold holds an emotional charm for most Indians. Those are some big shoes to fill for any sort of investment," said V. Ramesh, deputy CEO of the Association of Mutual Funds in India. Indians also save cash and in bank savings or certificates of deposit, and increasingly invest in property. Buying shares just doesn't figure for most. Fewer than 5 in every 100 Indians buy equities either directly or through mutual funds, regulatory data show, compared with Gallup's estimate of more than half of Americans -- many through their 401k pension plans. In China, an estimated 86 percent of average trading on domestic markets is carried out by retail investors. The investment scheme is the brainchild of Thomas Mathew, a former finance ministry official, who reckons more than 23 million Indians -- out of a population of 1.2 billion -- could be eligible targets. If they all invest the maximum, there could be a potential inflow of 116 trillion rupees ($2.16 trillion) -- more than double the country's gold assets. "We need to go forward with a lot of investor education and financial literacy to drive home the point that equity is not a dangerous animal," Mathew told Reuters. "We have to tap the psyche of people. The dinner-table conversations, the tea shop talk. That's how the education takes place." But fund managers say it will be costly and difficult to tap into these millions of small and often skeptical investors, many of whom live in small towns and rural areas and don't trust big-city stock markets. "One thing's very clear: The government's intention is to make mutual funds more acceptable as an investment option on a pan-India basis," said Kailash Kulkarni, CEO of L&T Mutual Fund, which this year bought Fidelity's fund business in India. "But there's obviously a cost that will go into this, especially when it comes to getting the manpower in these small towns, and the time that has to be invested." While the scheme could help reduce gold imports and the damage they have on India's current account deficit, the government also hopes to reduce market dependence on volatile foreign flows. India first allowed foreign investors to buy local shares in 1992, and they now hold nearly a fifth of the total, according to Morgan Stanley data. Critics say the scheme could draw ordinary citizens into reckless investing as they have little or no expertise in stock buying. The government is trying to reduce the risks by allowing investments only in the top 100 stocks and encouraging people to buy shares through mutual funds or exchange-traded funds. India's stock markets are notoriously volatile. The benchmark BSE index has risen or fallen by a double-digit percentage rate in 18 of the last 20 years. It is up by more than a fifth so far this year. That instability has already driven out many retail investors. Outflows from equity mutual funds in India rose to a two-year high in September, as investors cashed out of a stock rally. "The Indian stock market is a bottomless pit. Why would I risk my money on shares when I can get 8-9 percent on fixed deposits?" said Harshala Apte, a primary schoolteacher in Mumbai whose father lost more than half his net worth in a bear run on the stock markets in 2009. Jitu Dhabaria, an investment adviser in Kolkata, also remains to be convinced. "I've become resigned to getting panic calls from my investors every time the market loses a penny," he said. Still, fund managers say they will consider the new scheme, despite the additional costs. "It's a collective failure on our part that in a country of 1.2 billion people our combined assets are what? Some 220 billion rupees ($4.19 billion)," said Nandkumar Surti, CEO at JPMorgan Asset Management India, referring to the industry's assets under management. Longer-term, the new scheme may herald a shift in India from what one fund manager executive calls an opportunistic model of attracting investors to a structural one, emulating the 401k pension model in the United States. The U.S. system, introduced more than three decades ago, allows workers to pay part of their salary into funds. "India has lacked that structural market, but clearly there's an intent from the government and from the regulator to change that," said Saurabh Nanavati, CEO of Religare Mutual Fund. For now, India doesn't allow mutual funds to develop pension plans, instead using a state-managed provident fund that invests mainly in government bonds. Until such a plan is brought in, the government is likely to struggle to win people like Kashinath, who is still smarting from his emu bet. "Can you help me get my money back? There's a new bank that's promising good returns, I'll probably put it there," he said. Join GATA here: Vancouver Resource Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT GoldMoney adds Toronto vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, and the United Kingdom, GoldMoney customers now can store their gold and silver in a high-security vault operated by Brink's in Toronto, Ontario, Canada. GoldMoney also has recently partnered with Rhenus Freight Logistics to offer another gold storage option in Switzerland. The Rhenus vault is in the secured zone of Zurich Airport and offers customers superb security as well as the ability to inspect their gold. Storage at the new vaults in Canada and Switzerland is available at GoldMoney's lowest fees. Customers can select their storage location when placing their buy order. GoldMoney customers can take delivery of any number of gold, silver, platinum, and palladium bars from any GoldMoney vault, as well as personally collect their bars stored in the Hong Kong, Switzerland, and U.K. vaults. It's easy to open an account, add funds, and liquidate your investment. For more information, visit: http://www.goldmoney.com/?gmrefcode=gata
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| Posted: 05 Nov 2012 06:55 PM PST Vanity of VanitiesMarket Shadows Newsletter, Vanity of Vanities (11/5) Sections:
Excerpts: Event HorizonsStorm of the Century, Fibonacci Spirals and No Silver LiningThe Storm of the Century was a painful reminder of how fragile life is. We have been taking many things for granted, such as our ability to harness nature. Although we can, sometimes, gain control and outsmart natural forces, Mother Nature likes to remind us that she is more powerful than we are. The rule of unintended consequences is always a step (or many) ahead of any plans we may construct in its opposition. An interesting article in the Atlantic Cities illustrated this point and revisited the forgotten dangers of building too close to the shore lines.
We cannot quantify the human costs of Hurricane Sandy, but the financial costs have been estimated as running somewhere between $30 billion and $100 billion. Taking a numerical look at our recent natural disaster, the hurricane pattern fits nicely into the Fibonacci spiral. In so many ways, life traces out ubiquitous mathematical patterns. Books have been written, and trading systems designed, based on applying the Fibonacci sequence to a myriad of diverse phenomena. (For more read, Fibonacci in Nature: The Golden Ratio and the Golden Spiral.)
(Picture credit: SHEA GUNTHER)
Last week, Pater Tenebrarum, the Acting Man took on the Keynesians in his essay "Hurricanes do not have a silver lining." He concluded that GDP is a flawed measure of wealth, and that natural disasters, such as earthquakes, storms, and disease, and wars, are economically (and humanly!) very destructive. Below are highlights from Pater's excellent article, Hurricanes Do Not Have a 'Silver Lining'. Breaking Windows isn't Good for the Economy… The WSJ for instance reports (under the heading 'Hurricane Sandy could boost GDP growth'):
[...] The loss of wealth the hurricane has inflicted is very real; the wealth destroyed by it is most definitely gone. GDP does however not measure the existing stock of wealth and the impact the hurricane has on it. It measures the annual flow of wealth creation (although we must stress that the statistic nonetheless remains deeply flawed and can definitely not be accepted at face value), but it tells us nothing about existing wealth or its destruction. Maybe they should at least have mentioned that?... Market-Moving ForcesThe fiscal cliff - a conundrum that our government backed itself into - has been receiving attention because it begins in 2013. It comprises the end certain tax breaks and the introduction of new taxes… As certain tax breaks end, spending cuts agreed to as part of the debt ceiling deal of 2011 will begin to take effect. According to Barron's, over 1,000 government programs – including the defense budget and Medicare – are in line for "deep, automatic cuts" ($98B)." It is estimated that the economic drag produced by the effects would be in the range of 3.5%. The debt ceiling is also coming into play again, as we are 'only' $133B away from that magical number where we hit it! Mutual Fund Flows Mutual funds have seen an outflow from their coffers over the entire year, with up to $100B being withdrawn and either spent paying bills, or moved into bond funds or savings accounts that earn nothing. According to Investor's Business Daily, in September, investors pulled $24.36 billion from stock funds despite a rising market! Bond funds, year to date, have taken in a $238.27 billion vs. $83.61 billion last year.
Source: Chris Kimble (http://blog.kimblechartingsolutions.com/wp-content/uploads/2012/10/bondstockflowsandresultsoct161.gif)
Nevertheless, investors are starved for yield, and the Federal Reserves's QE is shifting the curve to riskier fixed income assets, which is driving down yields. Investors are soaking up bonds that pay small spreads over the artificially propped up Treasuries. (In last week's Value in the Eye of the Storm, Paul Price argued that bonds are in bubble territory.) According to Sober Look, "New issue investment grade corporate bond market continues to run hot… investors are chasing quality paper and willing to accept historically low rates… Current treasury yield investors are taking Caterpillar risk for 5 years to receive about 1.35% per year in total coupon. This is below some 5-year FDIC-guaranteed CDs (Barclays will pay 1.7% on a 5yr CD). CAT is a strong company, but most individual investors would generally prefer FDIC risk, particularly at a higher rate. The point is that 1.35% is just ridiculous." (Investment grade spread touching multi-year support level as CAT issues 5y notes at T+60) The chart below shows the spread between the corporate yields (higher risk) and those of the treasuries. On the y-axis is the percent spread between corporate (junk/risk) and treasury yields – i.e. the difference between yields on corporate bonds and yields on treasuries. During the 2008-09 recession, people were dumping corporate bonds – driving yields way up. The difference between the corporate bond yields and government bond yields spiked up. Now, the situation is different. Investors are dumping their money into bonds, and also chasing yield (they don't earn anything in their savings and money market accounts). Investors are accepting more risk for a smaller difference between corporate yields and treasury yields. This is reflected in the chart below.
Building a Portfolio from the Ground Up – Part OneCourtesy of Dr. Paul Price of Beating Buffett Most people are rather haphazard in their stock-buying approach. They get ideas from various sources and then simply buy 100 shares of whatever sounds promising. This can leave them poorly diversified, with very unbalanced positions when measured by dollar values. After thirty four years of putting together portfolios, I'd like to share my common-sense way of starting an equity account. In the late 1970's a full service commission was about $90 – $100, and discount brokers like Schwab were charging $29.95 a trade. Odd-lot trading added an eight (remember those) to the price of amounts less than 100 shares. Today you can trade for as little as $1 per 100 – 200 shares at TradeStation or Interactive Brokers. Many other online brokers charge from $3 – $9 per trade regardless of size. Commissions should no longer be an influence in deciding whether to make a trade. When starting out, one important consideration is the amount of money you have available to work with. If you have just a few thousand dollars, you'd probably be better off in a mutual fund or ETF (exchange traded fund). This article will deal with how best to allocate amounts of $20,000 or more. I'm going to use a $100,000 model, but the same technique applies with other investment sizes. I think we need at least 10 different stocks spread over varied industry groups to achieve proper diversification… My biggest mistakes over the decades have been due to putting too much of my total net worth into stocks I absolutely loved. Those over-weighted positions rarely did well (until right after I reduced my holdings or completely sold out).
My rule has evolved into using equal dollar purchases when setting up new portfolios… Now, it's time to prepare a wish list of companies we'd like to own. Last week's issue of Market Shadows, Value in the eye of the storm, provided a list of stocks that I thought were worth buying at their then-current prices. Read the full article for the list of stocks with their prices updated as of the close last Friday. [...] The Election Cycle – What to Expect in Stocks & Bond PricesCourtesy of Chris Vermeulen DIA – Dow Jones Industrial Average – Daily Chart
Looking at the chart of Dow DIA Index fund you can see a 5-6 month cycle in the market which has a positive skew. A positive skew is when the market is trending up making a series of higher highs and higher lows. During a bull market, each cycle upswing lasts longer then when the cycle turns down. So there are longer rallies which send our secondary indicators (stochastics, volatility, put/call ratios, advance decline line etc…) into the overbought levels for extended periods of time. Those trying to pick a top continually get their head handed to them. The focus must be on buying the pullbacks. Volatility tends to be higher. In the long run, we stand a better chance of making money trading with the trend than trying counter trend trades (picking a top). **** This article is adapted from Chris Vermeulen's recent article for the Market Shadows newsletter, Vanity of Vanities (11/5). For more by Chris, follow his Daily Trading Analysis & Trade Setups at: www.TheGoldAndOilGuy.com.
Read the full newsletter: Vanity of Vanities (11/5). Last week's newsletter, introduction to the work of Dr. Paul Price: Value in the eye of the storm (10/28).
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| IceCap Asset Management: How To Lull A Banker To Sleep Posted: 05 Nov 2012 06:19 PM PST When it comes to sleepless nights, Toimi Soini of Finland originally set the record by using the "toothpicks under the eyelids" method for 11 straight days. In hindsight, Toimi was an amateur. Toimi Soini was not a banker and this was his downfall. As for the Canadians, Swiss and British – yes they are all bankers, but not just any bankers. This terrific trio have the displeasure of forever being known as the bankers who sold their gold. The irony of course, is the action of the World's central bankers themselves is the reason why gold is destined to remain golden for sometime to come. And with gold sitting near $1700/oz, and with no end to the money printing games, the sleepless nights are destined to continue. IceCap's Keith Dicker opines on the wrong-ness of Alan Greenspan's economic miracle, equity manager's misplaced rationalization of performance as skill, China's gold-buying spree, the Nobel Peace Prize debacle, and the inexorable growth of 'fake money'.
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| Guest Post: 'I' For Inevitable Posted: 05 Nov 2012 05:27 PM PST Via Simon Black of Sovereign Man blog, Just over 400-years ago today, a group of 13 conspirators was caught trying to assassinate King James I of England and blow up the House of Lords in what became known as the Gunpowder Treason. If you've ever seen the movie V for Vendetta, you know the story. Guy Fawkes was found underneath the House of Lords with three dozen barrels of gunpowder… and to this day, his effigy is still burned annually in commemoration of the event. Fundamentally, the Gunpowder Treason was about freedom. The English monarchy at the time was controlling nearly every aspect of the economy and their subjects' lives– from what they could wear to how they could worship. "Sumptuary laws" which regulated private behavior were commonplace. Elizabeth I, for example, re-introduced a beard tax on all facial hair grown in excess of two weeks. She also published long lists, categorized by social class, dictating precisely what color and type of garment her subjects were required to wear. It turns out these sumptuary laws were just an early form of state-sponsored corporate welfare; the English textile industry had paid Elizabeth huge sums of money in exchange for royal decrees about knitted caps and woollen socks. As a consequence, a great deal of English labor and disposable income was mis-allocated towards silly garments instead of being put to more productive uses… and the country was in an almost perpetual state of stagnation. Not to mention, English finances deteriorated under Elizabeth. By 1600, state expenditures were 23% greater than tax revenue, which would be the equivalent of a $550 billion budget deficit in the US today. Not exactly a trivial figure. James I, Elizabeth's successor, continued to spend extravagantly and in-debt the English economy, often showering taxpayer funds on a handful of favored nobles. By the time James's successor Charles I came to power, the monarchy's credit was running so thin that Charles had to force people to loan him money; those who refused were imprisoned and had their property confiscated. Unsurprisingly, civil war broke out in 1642. Charles I was executed in 1649, and the genocidal dictatorship of Oliver Cromwell dominated England for the next decade. When you think about it, this collapse was inevitable. For decades prior, the entire English economy was under the control of a single individual who massively indebted the state, impeded growth, and reduced people's individual freedoms. Not exactly a recipe for long-term success. The Gunpowder Treason of November 5, 1605 may have been a failure for the conspirators, but given enough time, a system so screwed up, so unsustainable, was destined to collapse on itself. Curiously, we're not so different in the west today. We have our own sumptuary laws, regulating everything from tobacco consumption to what foods we can/cannot eat. We have our own state-sponsored corporate welfare. We're comically indebted. And just like the English monarchs, we have a tiny elite that controls absolutely everything about our economy– taxation, regulation, and the supply of money. Needless to say, this is also unsustainable. And history shows that these types of unsustainable systems will always collapse under their own weight. We're not so different...
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| How Can You Help America? Do not vote Tomorrow & Buyg 1oz of Physical Gold & Silver Instead Posted: 05 Nov 2012 04:15 PM PST SmartKnowledgeU
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| Daily Gold 'Cup and Handle' Chart Update Posted: 05 Nov 2012 03:03 PM PST |
| We invite you to visit our mobile pages Posted: 05 Nov 2012 03:00 PM PST The popularity of our mobile pages continue to impress — nearly 8 million page requests in October, its highest traffic month ever. For those of you unfamiliar with our mobile pages, we invite you to have a look and make us a favorite on your mobile phone. At the present we have three pages designed for use while you are on the move. 1) Mobile gold prices. . . . . . .These prices are LIVE and updated in real time. The page includes gold, silver, oil and euro prices. 2) Latest gold news. . . . . . .This page runs the same stream of news and commentary that's available on your computer at Breaking Gold News but in a mobile friendly format. 3) Closing gold coin prices. . . . . The same popular service available at our standard website but in a mobile friendly format. There is also a convenient direct dial link available that rings through to our offices. We are always looking to serve the needs of our clientele so if there is a page favorite at the USAGOLD website or a feature you would like to see formatted for your mobile phone, please let us know. Please e-mail Jen Hyde: marketing@usagold.com
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| Gold Daily and Silver Weekly Charts Posted: 05 Nov 2012 02:40 PM PST |
| Posted: 05 Nov 2012 02:32 PM PST Last weekend I warned members of The Financial Tap that gold was still just a 50-50% chance of having found a major Cycle Low. There was just a lot of evidence out of my Cycle Analyzer that was telling me to be very cautious ... Read More...
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| James Turk - Fed Allowing Lehman-Type Blowup To Occur Posted: 05 Nov 2012 02:17 PM PST  Today James Turk spoke with King World News about the Fed purposely allowing a Lehman-type blowup to occur, the stunning news about what is taking place with the Fed's balance sheet, Friday's gold and silver smash, as well as what to expect going forward. Here is what Turk had to say: "When we get days like Friday with big price drops in the precious metals, Eric, two things come to mind. First, there have been a lot of similar smashes in precious metal prices over the past decade, particularly on a Friday. Why on Fridays?"
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| The Preparedness Review: 17 Must-Read Preparedness Strategies Posted: 05 Nov 2012 02:13 PM PST  Do you know how to safely store food for the long-term, or the self defense tools you may need to protect that food if the rule of law break downs? If the global floating currency exchange mechanism breaks down, what will your 'money' be? When there are no doctors, how will you treat injuries and disease? Emergency preparedness and survival planning have numerous aspects, all of which need to be considered before a crisis hits, because when the 'S' hits the fan, it'll be too late. We need only look at current events to see the truth in this. In the inaugural edition of the (free) Preparedness Review from Todd Sepulveda, founder of the Prepper Website and Education After the Collapse, leading preparedness authors and strategist share their insights, ideas and tips to help you make the most realistic plan possible. Read more.... 
This posting includes an audio/video/photo media file: Download Now |
| Look to Midtier and Small-Cap Gold Equities for Growth Posted: 05 Nov 2012 01:35 PM PST The late summer rally in gold equities is the beginning of the outperformance that Joe Foster, portfolio manager of Van Eck International Investors Gold Fund, has been looking for. QE3 and other monetary policies will fuel both gold and gold equities. In the C-suite, more management attention to cost control, shareholder returns and return on capital will benefit both investors and the industry. Read more in this Gold Report interview.
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| Scotiabank is likely the new manipulative short in silver, Steer writes Posted: 05 Nov 2012 01:10 PM PST 3p ET Monday, November 4, 2012 Dear Friend of GATA and Gold: GATA board member Ed Steer writes at his daily newsletter for Casey Research that Scotiabank has been dodging his questions about the bank's involvement in the silver market, so he concludes that Scotiabank is likely the new "non-U.S. bank" joining JPMorganChase as a big manipulative short in silver. Steer's commentary about Scotiabank is posted toward the bottom of his Saturday letter here: http://www.caseyresearch.com/gsd/edition/bundesbank-official-assures-ny-... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT GoldMoney adds Toronto vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, and the United Kingdom, GoldMoney customers now can store their gold and silver in a high-security vault operated by Brink's in Toronto, Ontario, Canada. GoldMoney also has recently partnered with Rhenus Freight Logistics to offer another gold storage option in Switzerland. The Rhenus vault is in the secured zone of Zurich Airport and offers customers superb security as well as the ability to inspect their gold. Storage at the new vaults in Canada and Switzerland is available at GoldMoney's lowest fees. Customers can select their storage location when placing their buy order. GoldMoney customers can take delivery of any number of gold, silver, platinum, and palladium bars from any GoldMoney vault, as well as personally collect their bars stored in the Hong Kong, Switzerland, and U.K. vaults. It's easy to open an account, add funds, and liquidate your investment. For more information, visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: 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 Prophecy Platinum Intercepts Best Pt+Pd+Au Grades Yet Company Press Release VANCOUVER, British Columbia -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces more results of its 2012 drill program on the company's fully-owned Wellgreen platinum group metals, nickel, and copper project in southwestern Yukon Territory, Canada. Four surface holes and four underground holes all intercepted significant mineralized widths, ranging from 28.5 meters (WS12-201) and up to 459.5 metres (WS12-193). Highlights include WU12-540, which returned 8.9 metres of 5.36 grams per tonne platinum, palladium, and gold; 1.73 percent copper; and 1.01 percent nickel within 304.5 meters of 0.66 g/t platinum-palladium-gold, 0.20 percent copper, and 0.27 percent nickel. The surface drill program started in June and has completed 16 holes (assays pending for 12 holes) with two rigs now on site. The surface program continues to progress at a steady pace. Prophecy Chairman John Lee commented: "Wellgreen is a very large nickel, copper, and platinum group metals project with near-surface high-grade zones. High-grade intercepts will be incorporated into resource modeling and mine planning in the pre-feasibility study. We expect further positive drill results from Wellgreen shortly." Wellgreen features a low 2.59-to-1 strip ratio, is situated at an altitude of 1,300 meters, and is only 15 kilometers from the two-lane paved Alaska Highway. Those factors significantly minimize the project's indirect costs. For the complete company statement with full tabulation of the drilling results, please visit: http://prophecyplat.com/news_2012_sep11_prophecy_platinum_drill_results....
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| Look to Midtier and Small-Cap Gold Equities for Growth: Joe Foster Posted: 05 Nov 2012 12:58 PM PST The Gold Report: In the first decade of this century, the Van Eck International Investors Gold Fund gave its investors an annualized average return of about 25%. How has the fund performed since we last talked in August 2010? Joe Foster: Gold stocks have had a tough time in the last couple of years and the fund was essentially flat during that period. The stocks have underperformed the gold price, which is up about 38%, and that is reflected in the fund performance. TGR: How has the fund performed against the NYSE Arca Gold Miners Index (GDM), its benchmark index? JF: Since our last interview in 2010 their performances have been similar, roughly flat. TGR: How much does the fund have under management and how many positions does it hold? JF: We have approximately $1.4 billion (B) in the International Investors Gold Fund and have 55 stocks in the fund. TGR: As of May 2012, the Van Eck International Investors Gold Fund was allowed to invest in a wholly owned Cayman sub...
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| Yra On Gold Market Overview From An HFT Perspective Posted: 05 Nov 2012 12:30 PM PST Dear CIGAs, Here is a message from the finest intellect in the market, a man capable of leading, Yra Harris. We are honored that Yra reads us, and more so that he shares his thoughts with us. Thank you, Yra. Respectfully, Jim Dear CIGAs, I believe this is dead on – especially in his Continue reading Yra On Gold Market Overview From An HFT Perspective
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| Embry gives King World News his forecast for 2013 Posted: 05 Nov 2012 12:06 PM PST 2p ET Monday, November 5, 2012 Dear Friend of GATA and Gold: Sprott Asset Management's John Embry today gives King World News his predictions for 2013 -- more "quantitative easing" as central banks realize that new money still isn't getting into the real economy, the collapse of the bond bubble, and takeoff for gold despite the "interference" with that market. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/5_Ex... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold Longtime GATA supporters Fred Goldstein and Tim Murphy have brought their many years of experience in the precious metals and numismatic coins to All Pro Gold as metals brokers who specialize in the delivery of gold and silver bullion bars and coins as well as numismatic gold and silver coins. Fred and Tim follow these markets closely and are assisted by a team of consultants in monitoring market trends. All Pro Gold offers GATA supporters competitive pricing on all bullion products and welcomes inquiries. Tim can be reached at 602-299-2585 and Tim@allprogold.com, Fred at 602-799-8378 and Fred@allprogold.com. Ask about their ratio strategy and the relationship of generic $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at http://www.allprogold.com/. Join GATA here: 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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| Posted: 05 Nov 2012 11:41 AM PST October Jobs and Unemployment Numbers Were Not Credible, Artifacts of a Broken Reporting System and/or Direct Manipulation - John Williams, www.shadowstats.comAlso from John Williams' latest report, which is worth the price of subscription if you want to have access to someone who has studied and analyzed Government statistics over several decades: The headline numbers (or the general substance of the reporting results) usually are known a week or so in advance, and early release of data to officials in various administrations and at the Federal Reserve has been common in the past and as suggested in former Clinton Labor Secretary Robert Reich's autobiography With a downturn in October's online help-wanted advertising, weakening employment growth in the ISM's October purchasing managers manufacturing survey, and significant indications of slowing activity, not accelerating economic growth—to be discussed in the upcoming Special Commentary—the October labor data indeed were not credible.Enough of that. I think the market's response to the jobs report on Friday told the real tale, if you don't want to believe the facts as they are presented by guys like John Williams... Along with any credibility associated with the jobs report, I want to bury the idea that either Presidential candidate will have a specific effect on the stock market, precious metals, or the catastrophic U.S. fiscal/economic situation. The popular promotion in the media is that Romney will be good for stocks and bearish for metals. The latter idea I guess because of his threat to get rid of Bernanke, who is an economic strawman for the banks anyway - as would be his successor. Let's take a look beneath the hood of this argument. We'll look at the black and white numbers with no editorial or slant. The Government is currently borrowing 40 cents of every dollar it spends. If it were to cut spending in a meaningful way to reduce that number - let's say a 10% cut across the board in order to reduce that borrowing rate to 30 cents - imagine what that would do to the economy. Imagine if they cut entitlement spending by 10%. People would starve and seniors would go without healthcare. The Dept of Defense, the largest employer in the world with 3.6 million employees, would have to unload close to 400,000 employees. The only thing a 10% cut would do is reduce the rate at which the Government is accumulating debt, if the economy stayed the same, which it woudn't. If the Government cut spending 10% to try and take a whack at the deficit spending, it would send our system in an economic tailspin and throw our economy into a depression that would make the 1930's look like a day at Disneyland.. Now imagine that Congress passed a hard law require immediate balancing of the budget. 40% of all Government would stop. That would annihilate our system. Armageddon. Mad Max. A balanced budget would only stop the increase in debt accumulation, it would do nothing to reduce the $16+ trillion outstanding. Ahh, but under any of these scenarios, Romney is promising 12 million new jobs... My point here is that there isn't any possible "fix" for our system that either Romney or Obama can implement in order to solve the fiscal cliff problem without sending our country into chaos. To be sure, this would lead to the "reset" our country needs, and in the long run it would be a good thing, but there isn't one sane person out there who would sign up for that. Neither Romney or Obama have any choice except to extend the madness of more deficit spending, more debt accumulation and more money printing. If you think Romney has some sort of "magic underwear" solution he's hiding, please read the quote from Bill Buckler's Privateer, probably the most candidate and truthfully analytic newsletter available: Mr Romney has now been the official Republican candidatefor two months. Over that time, he has spent an unprecedented amount of money (as has his opponent) to get out a "message" that boils down to this: "You're better off with me than you would be with him!" He has said absolutely nothing about his "plans" to address the fiscal and financial condition of the US and its government. There is a good reason for this, Mr Romney doesn't have any plans.I've been whining about the latter statement since the first debate. And the reason neither Romney nor Obama have laid out a specific plan is because any plan to cut spending and debt accumulation would destroy the economy. This is what happens when you have an economic system that is based entirely on fiat currency and very little actual substantive economic production. Hell even Apple's Iphones and Ipads are manufactured in China. For some reason many Wall Street analysts have said that the new Iphone would add 1% to economic growth. Given that Apple's stock price is down over 13% since the new Iphone was introduced, I think we can see how retarded that notion is. In addition, anyone notice how the Fiscal Cliff deadline was never addressed in the debates. It's related to the previous point, but it's worth pointing out, because neither candidate can possibly do anything with that situation except override the legislation and increase the Treasury debt limit by quite a bit. Even if the Fiscal Cliff were allowed to kick in - and we know it won't be - the Treasury debt limit would still have to be raised. I've seen some estimates which suggest that we would be looking at an initial increase of at least $2 trillion in order to fund the Government for the next 12 months. So as you can see, regardless of which candidate prevails tomorrow, they both face the same unsolvable, catastrophic problem for which neither has laid out a gameplan to address because any action taken to address the problem sends our country into economic and social Armageddon. For that reason, the Fed will have to continue increasing QE in order to continue buying Treasury bonds in order to finance the voracious, unstoppable Government spending. Moreover, for those reasons, the current price pullback in gold and silver should be bought with both hands, as it is a true gift from JP Morgan and the CFTC. 
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| Bundesbank Official Assures NY Fed That Gold Issue Will Go Away Posted: 05 Nov 2012 11:38 AM PST "Are we done yet? I doubt it, but a bottom is near...it just remains to be seen how long JPMorgan et al drag this out." [COLOR=#7f4028] Yesterday in Gold and Silver It was pretty quiet during Far East and early London trading...and by the time the jobs numbers were posted at 8:30 a.m. Eastern time, the gold price was down about eight bucks or so. The initial hit at that point was only a bit over ten bucks, but the real engineered sell-off began about 10:15 a.m...about fifteen minutes after a very quiet London p.m. gold fix...and it was all down hill from there until the 1:30 p.m. Comex close. The low tick of $1,673.80 spot came right at that moment. There wasn't a lot price activity after that...and the gold price closed at $1,676.90 spot...just off its low, down $38.10 from Thursday's close. Net volume was just over 201,000 contracts...a big number, but I was hoping for bigger than that. The silver price chart looks like the gold price chart...and r...
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| Posted: 05 Nov 2012 11:36 AM PST London Gold Market Report from Ben Traynor BullionVault Monday 5 November 2012, 07:30 EST SPOT MARKET gold bullion prices rallied above $1680 an ounce Monday morning in London, having earlier fallen to a nine-week low, while stock markets edged lower and US Treasury bonds gained, with one day to go before the US presidential election. The US Dollar Index, which measures the Dollar's strength against other major currencies, rose to a two-month high. "Gold is still holding the long-term uptrend support at $1631," says the latest technical analysis from bullion bank Scotiabank. "There is also support at $1661." Silver bullion rallied back to $31 an ounce, while on the commodities markets, oil was broadly flat while copper prices edged lower. Gold remains more than 2% off where it started the month, while silver is down more than 4%, after both metals fell sharply on Friday following the release of better-than-expected US nonfarm payroll data. Bullion dealers in Asia meanti...
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On social media websites such as Twitter and Facebook, thousands of threats of violence were posted by supporters of Barack Obama on the evening prior to the election. If you doubt this, just go on Twitter and do a search for keywords such as "Romney riot", "assassinate Romney" and "if Romney wins". We have seen very serious threats of violence against Mitt Romney and his supporters for weeks, but little action has been taken to shut these threats of violence down, and now they are reaching a crescendo as we reach election day. At the moment, law enforcement authorities and the mainstream media do not appear to be taking these threats of violence very seriously, but they should. Just look at what happened when the San Francisco Giants won the World Series. Horrible rioting broke out in San Francisco and a city bus was even set on fire. But that little bit of rioting is nothing compared to what could happen on a nationwide basis if Mitt Romney wins this election – especially if there are allegations that Romney stole the campaign. If Romney is victorious, expect to see allegations of "voter fraud" and "election fraud" from the other side. If there is a belief that the Republicans "cheated" (whether true or not), this would provide all of the justification that those out committing violence would need. Many of them would actually consider themselves to be "standing up for democracy" or "fighting for their rights". Hopefully the scenario that I just outlined will not play out. Hopefully Obama supporters will be calm if Romney is declared the winner. But we would be very foolish to ignore the thousands upon thousands of threats that we have seen over the past few weeks. 
The first thing you notice about American Silver Eagles: A Guide to the U.S. Bullion Coin Program is that it's a big book. 
When it comes to sleepless nights, Toimi Soini of Finland originally set the record by using the "toothpicks under the eyelids" method for 11 straight days. In hindsight, Toimi was an amateur. Toimi Soini was not a banker and this was his downfall. As for the Canadians, Swiss and British – yes they are all bankers, but not just any bankers. This terrific trio have the displeasure of forever being known as the bankers who sold their gold. The irony of course, is the action of the World's central bankers themselves is the reason why gold is destined to remain golden for sometime to come. And with gold sitting near $1700/oz, and with no end to the money printing games, the sleepless nights are destined to continue. IceCap's Keith Dicker opines on the wrong-ness of Alan Greenspan's economic miracle, equity manager's misplaced rationalization of performance as skill, China's gold-buying spree, the Nobel Peace Prize debacle, and the inexorable growth of 'fake money'.
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