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- Jan Hatzius Connects All the Dots
- Jaguar Mining Production Down 43%, Revenue Down 45%, Costs Up 9%
- Dividend Growth Of Newmont Mining: A Story Of Rising Costs And Declining Production
- Obama's Re-Election: Expectations Say The Fed Will Print
- Montana Law Maker: “Pay Me In GOLD”
- Charles Goyette: The Real Fiscal Cliff
- Silver price to 'increase 400pc in three years'
- Romney Shock Sends Markets Spilling
- Vulture Tax Loss Shopping Season is Here – Got Gold Report
- All pm's popping except gold.
- Silver Update: Tax And Spend 11.12.12
- Diversify With Silver As Set To Increase 400% In 3 Years
- Turk – The Fed Is Playing An Extraordinarily Dangerous Game
- Embry: China To Import A Staggering 775 Tons of Gold In 2012
- Richard Russell – Multi-Trillion Dollar Question, Stocks & Gold
- Sprott PSLV to take another 9+ million oz silver off the market
- Sky Fall for Commodities Markets?
- More from Eric Sprott - Bloomberg TV interview
- Gold Deposits 'Getting Harder to Find,' says Barrick
- China likely taking a third of outside gold production, Embry says
- Bullion Prices & the Greek Tragedy
- Silver Set To 'Increase 400% In 3 Years'
- Turkish Prime Minister Says Gold Should Replace the Dollar
- Turkish prime minister says gold should replace dollar
- Sprott on Gold Market Outlook, Investment Strategy: Bloomberg
- Silver Manipulation Explained in a Simple Way by Ted Butler
| Jan Hatzius Connects All the Dots Posted: 13 Nov 2012 12:12 PM PST By Cullen Roche: Back in 2008 I started discussing the idea of the household debt crisis. In early 2009 I read Richard Koo's fantastic "Holy Grail of macroeconomics" and ripped off the term "balance sheet recession" - the concept of weakness in the private sector due to de-leveraging which can only be offset by government budget deficits. And then I embedded Wynne Godley's sector balances approach into this to provide an overall view of what was occurring in the US economy and why. In short, the US economy had suffered a massive debt bubble which resulted in ruined balance sheets and debtors turning into savers. This lack of aggregate demand from the household sector was devastating as it caused a massive slump in private investment. Private investment fell an unprecedented -22% year over year in 2008. The worst post-war era slump in private investment had previously been -10%. This -22% collapse was devastating Complete Story » |
| Jaguar Mining Production Down 43%, Revenue Down 45%, Costs Up 9% Posted: 13 Nov 2012 12:06 PM PST By Felix Pinhasov: Jaguar Mining (JAG) is a relatively small gold producer with three operating mines in Brazil, one of which was put on care and maintenance in May 2012 as part of an effort to reduce costs. The company reported its third quarter results on November 12 and although it seems that the company's efforts to reduce costs have been successful on a quarter-over-quarter basis, the company failed to do the same on a longer-term basis. Operating Cash Costs per Ounce: As the table above indicates, average cash operating costs in the third quarter increased 9 percent to $963 from $886 per ounce in the same period last year. The increase in costs was prevalent in both of the company's operating mines as the Paciência operation was put on care and maintenance. The increase in operating costs stems primarily from two factors: grade and production. At the Trumalina operation, head grades declined Complete Story » |
| Dividend Growth Of Newmont Mining: A Story Of Rising Costs And Declining Production Posted: 13 Nov 2012 12:02 PM PST By Qineqt: Although gold prices increased recently and a majority of the analysts interviewed by Bloomberg remain bullish on the commodity in the short term, we have a neutral rating on Newmont Mining Corporation (NEM). We believe the company has a strong base of operations but the rising costs, particularly at its APAC operations, and declining production remain as concerns for NEM. Recent Developments in Gold: On speculations that there will be more stimulus measures in the wake of President Obama's re-election, gold surged to a three-week high and the precious yellow metal is set to achieve its highest weekly gain since January 2012. Gold ETFs tracked by Bloomberg surged to an all-time high of 2,596.1 metric tons, valued at $144.5 billion. This year gold prices rose by 11 per cent, and have been rising for 12 straight years, the longest upward trend in at least nine decades. Gold Futures: Gold futures Complete Story » |
| Obama's Re-Election: Expectations Say The Fed Will Print Posted: 13 Nov 2012 11:54 AM PST By Peter Pham: Gold is a funny commodity. It is more than the most political of commodities; it is the only commodity that can credibly substitute as money created by central banks, though to hear them tell the tale that is a delusional fantasy. Watching the U.S. Presidential election unfold was illuminating as the action in the gold pits mirrored the stream of vote totals that came across the news wires. Romney is up in Florida? Gold goes down $1. Obama won Pennsylvania in a laugher? Gold goes up $3. The marriage of gold to the political system is so complete that anyone attempting to trade its swings without the deepest of pockets will get burned to a crisp and the ashes ground into the finest of powders. While there are a myriad of factors that go into the minute-to Complete Story » |
| Montana Law Maker: “Pay Me In GOLD” Posted: 13 Nov 2012 09:54 AM PST
from politico.com: A Montana state lawmaker is asking that he be paid in gold coins because of his lack of faith in the U.S. dollar amid a rising deficit. Jerry O'Neil, a Republican just reelected in his northern Montana district, says his constituents told him he was not honoring his duty to uphold the U.S. Constitution, which O'Neil and Gold Standard supporters say requires the government to print money backed by gold. "I believe that if you take a look at the Constitution, that's what it says," he told POLITICO. "I think we've gotten a tremendously long way from it." A former supporter for Rep. Ron Paul's (R-Texas) failed bid for president, O'Neil said he hasn't heard back from the Montana Legislature about his request. "I believe that if you take a look at the Constitution, that's what it says. Actually, I think we've gotten a tremendously long way from it," O'Neil said. "If we don't start paying that debt down, we're going to lose the country." O'Neil said that he collects about $7,000 annually from the Montana Legislature. Currently, the U.S. Mint is selling the 2012 American Eagle One Ounce Gold Proof Coin (at face value worth $50) for $1,985.00. Keep on reading @ politico.com |
| Charles Goyette: The Real Fiscal Cliff Posted: 13 Nov 2012 09:46 AM PST Charles Goyette is the author of the Dollar Meltdown + Red, Blue, and Broke All Over We discuss: from altinvestorshangout: ~TVR |
| Silver price to 'increase 400pc in three years' Posted: 13 Nov 2012 09:01 AM PST By Emma Wall The silver bull run will continue says investment specialist Ian Williams of Charteris Treasury. Silver will increase in value five times over the next three years, according to mixed asset fund manager Ian Williams. "Silver is about to enter a sustained bull market that will take the price from the current level of $32 an ounce to $165 an ounce and we expect this price to be hit at the end of October 2015," he predicted. "This forecast is based entirely using technical & cyclical analysis and is in keeping with the mathematical form displayed so far in the bull run that has taken Silver from $8 an ounce in 2008 to its current price of $32 an ounce – having hit $50 an ounce in 2011." Mr Williams said that the silver price was more volatile than gold, but that he expected silver to continue to dramatically outperform gold. The Charteris manager said that macro fundamentals were supportive for the silver price, such as the re-election of President Obama, who supports Ben Bernanke's policy of quantitative easing. Darius McDermott of Chelsea Financial Services agreed that QE means good news for precious metals. "Strong demand for precious metals will remain as long as we have QE, which do well with each round of money printing. QE is bound to lead to inflation at some point and at that time, real assets will do best," he said. "Investing in a fund that holds a range of precious metals gives you positive diversification and less reliance on just gold." http://www.telegraph.co.uk/finance/p...ree-years.html (I knew it! :D ....to the MOON and beyond!!) |
| Romney Shock Sends Markets Spilling Posted: 13 Nov 2012 08:53 AM PST The bottom line for all of this is that we are just seeing a market correction, not a major collapse, that the medium-term trend is still up, and that you should probably be buying here and not selling. |
| Vulture Tax Loss Shopping Season is Here – Got Gold Report Posted: 13 Nov 2012 08:08 AM PST HOUSTON -- We love the fall season. For more than one reason. The fall colors, the brisk cooler air here in Southeast Texas. Watching the buck deer at the ranch going into the rut and chasing the does with reckless abandon. (Back in our hunting days, that was especially important. Today we have lost all desire to hunt deer, especially since they practically eat out of the feed bucket in our hand.) One reason we really like the fall season, is this is when some of the best of the best bargain hunting ops can show – even in some of the issues we have developed confidence in. Especially when the small junior miners and explorers we like to game here at Got Gold Report have had a particularly bad year as a group. We are entering the period when some (not all) of the issues we would like to build a position in, but just have not yet gotten the kind of low-priced entry we wanted, could see stepped up selling pressure due to tax loss selling in the U.S. and in Canada – potentially allowing an even better entry than hoped. That includes issues we have been tracking for a long period of time, but haven't yet started a position in; issues we have confidence in, but which have already been harshly mistreated by a bad market to very low prices and issues we already have a position in but wouldn't mind adding to them on the "dirt cheap." The potential this year is such that we could have to practice "great opportunity triage!" Tis' the Season... From roughly November 15 to the end of the calendar year the stocks which are already beaten up have a chance of being further hammered by sellers no longer concerned with getting the best price, but instead interested in maximizing their tax losses. Since we are just now emerging from what we have dubbed The Second Worst Junior Market From Hell, a 16-month super negative liquidity event that affected so many of the issues we track (see the chart above), irrational, seemingly out of the blue sales could show at any time as tax loss sellers chunk our 'Faves' overboard. With the U.S. Big Markets in a post-election swoon and global markets trading in negative sympathy just now in a period of political transition and dysfunction, it could be a short-term mini perfect storm. But we hasten to add that much or most of what we review in the data is nothing but bullish for precious metals prices. Sooner or later we expect that to become a gale force tailwind for the miners big and small. Redemptions Lead to Tax Loss Spikes Especially hard hit this time are companies which were widely owned by The Funds, investment bankers and brokerage houses (and their clients), which saw brutal redemptions in the hundreds of millions of dollars as the mess in Europe and uncertainty ahead of the U.S. elections played out earlier this year. Heavy redemptions mean that The Funds had no choice but to sell and keep selling even though there were few buyers at the time and even though to do so meant crushing the shares they continued to hold for other clients. That selling pressure further cratered the prices of small miners and explorers, which, of course, led to even more redemptions in a vicious self-perpetuating negative loop. All that seems to have ended in July of this year. In the CDNX:Gold chart above, which tracks the CDNX relative to gold, the redemption period shows as the third leg of a waterfall plunge. We can point to that chart and reasonably say that it looks like a bona fide triple waterfall collapse. Now that selling; that negative liquidity has reset the bar for what is considered "cheap" at least temporarily. Resulting in a bargain target rich environment that just might get even better for brief periods of time between now and the end of the year due to tax loss selling. The good news is that... |
| Posted: 13 Nov 2012 07:37 AM PST |
| Silver Update: Tax And Spend 11.12.12 Posted: 13 Nov 2012 07:36 AM PST |
| Diversify With Silver As Set To Increase 400% In 3 Years Posted: 13 Nov 2012 07:18 AM PST gold.ie |
| Turk – The Fed Is Playing An Extraordinarily Dangerous Game Posted: 13 Nov 2012 07:11 AM PST
from kingworldnews.com: Today James Turk spoke with King World News about an extraordinarily dangerous game the Fed is now playing and how it will impact key markets, including gold and silver. But first, here is what Turk had to say about the ongoing crisis in the US: "On Friday in the United States, the Department of Agriculture released its report showing the number of people receiving food stamps in August. The total is 47.1 million people, which is a new record high, Eric, but here is what I believe to be a staggering comparison. The number of people receiving food stamps increased in just that one month by over 420,000, while only 96,000 new jobs were created in August." Keep on reading @ kingworldnews.com |
| Embry: China To Import A Staggering 775 Tons of Gold In 2012 Posted: 13 Nov 2012 07:09 AM PST
from kingworldnews.com: Today John Embry spoke with King World News about the staggering pace of Chinese gold imports, Western central bank dishoarding of gold, the imploding global economy, which country will hyperinflate first, and mining shares. Here is what Embry, who is chief investment strategist at Sprott Asset Management, had to say: "I'm very encouraged by the continued flow of the world's gold into China through Hong Kong. The Chinese were essentially accumulating their gold by purchasing all of their domestic production, and now they are the largest domestic producer in the world." Keep on reading @ kingworldnews.com |
| Richard Russell – Multi-Trillion Dollar Question, Stocks & Gold Posted: 13 Nov 2012 07:07 AM PST
from kingworldnews.com: Today the Godfather of newsletter writers, Richard Russell, has written about "the multi-trillion dollar question," stocks & gold. Here are Russell's thoughts, along with some fascinating charts, in a note to subscribers: "The multi-trillion-dollar question — Are we in a correction or a primary bear market? The answer, unfortunately, is that there's no satisfactory answer. I hate using the word "hope" in this business, but I sincerely hope that we're in a correction that might end at any time or at worst in another month or two." Richard Russell continues: "One measure that has become popular is the 20% measure. If the Dow and the major stock averages drop 20% or more, then it's presumably a bear market. But if you wait for the 20% measure, by that time, you're broke, so I'd rather depend on the Dow Theory. Keep on reading @ kingworldnews.com |
| Sprott PSLV to take another 9+ million oz silver off the market Posted: 13 Nov 2012 06:56 AM PST Sprott Physical Silver Trust Prices Follow-on Offering of Trust Units In An Aggregate Amount of US$269,575,000 Press Release: Sprott Physical Silver Trust – Fri, Nov 9, 2012 9:46 AM EST TORONTO , Nov. 9, 2012 /CNW/ - Sprott Physical Silver Trust (the "Trust") (NYSE: PSLV / TSX: PHS.U), a trust created to invest and hold substantially all of its assets in physical silver bullion and managed by Sprott Asset Management LP, announced today that it has priced its follow-on offering of 20,500,000 transferable, redeemable units of the Trust ("Units") at a price of US$13.15 per Unit (the "Offering"). As part of the Offering, the Trust has granted the underwriters an over-allotment option to purchase up to 3,075,000 additional Units. The gross proceeds from the Offering will be US$269,575,000 (US$310,011,250 if the underwriters exercise in full the over-allotment option). The Trust will use the net proceeds of the Offering to acquire physical silver bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to the Offering. Under the trust agreement governing the Trust, the net proceeds of the Offering per Unit must be not less than 100% of the most recently calculated net asset value per Unit of the Trust prior to, or upon determination of, pricing of the Offering. http://finance.yahoo.com/news/sprott...144600350.html |
| Sky Fall for Commodities Markets? Posted: 13 Nov 2012 06:26 AM PST Metals markets opened mixed this morning as US dollar strength (@81.20 on the index) kept a lid on advances in gold and in silver but did not manage to hold back those in platinum and palladium. |
| More from Eric Sprott - Bloomberg TV interview Posted: 13 Nov 2012 05:29 AM PST |
| Gold Deposits 'Getting Harder to Find,' says Barrick Posted: 13 Nov 2012 05:16 AM PST Price for gold bullion on the wholesale market rose to $1,730 an ounce this morning in London, after drifting lower overnight, as the euro jumped half-a-cent against the dollar. |
| China likely taking a third of outside gold production, Embry says Posted: 13 Nov 2012 05:08 AM PST |
| Bullion Prices & the Greek Tragedy Posted: 13 Nov 2012 05:06 AM PST This morning the gold price has slipped slightly as the euro dropped to a two-month low against the US dollar. Usually the euro and gold have a positive relationship. However, this seems to breaking away as both euro zone and US troubles rapidly snowball. |
| Silver Set To 'Increase 400% In 3 Years' Posted: 13 Nov 2012 04:48 AM PST Gold edged down on Tuesday on low volumes when the euro dropped to a two-month low against the US dollar despite confusion about a deeper bailout package for Greece which has driven many investors to wait on the sidelines. |
| Turkish Prime Minister Says Gold Should Replace the Dollar Posted: 13 Nov 2012 03:16 AM PST ¤ Yesterday in Gold and SilverThe gold price popped about five bucks at the open of trading in New York on Sunday night...and then didn't do much until the 8:20 a.m. Comex open the following morning. Then the price came under some selling pressure, with the low of the day coming around 12:15 p.m. Eastern time. The tiny rally into the 1:30 Comex close, got sold off immediately in electronic trading...and the gold price closed down two bucks from Friday...at $1,728.80 spot. With volume as light as it was...around 70,000 contracts net...I wouldn't read a whole heck of a lot into yesterday's price action.
It was pretty much the same story in silver as well. The real sell-off began at 11:00 a.m. Eastern time...which was the 4:00 p.m. GMT close of the precious metal markets in London. Like gold, the low tick of the day came at 12:15 p.m. in New York...and the subsequent rally lasted until shortly after the Comex close...and then got sold down in electronic trading. Net volume was only 24,000 contracts...and silver finished trading on Monday at $32.42 spot...down 21 cents from Friday's close.
It should be obvious that both metals would have closed in positive territory if they'd been left to their own devices...which they weren't. Both platinum and palladium finished in the plus column. The dollar index closed the Friday session at 81:05...and then declined to just below the 81.00 mark by around 2:30 p.m. Hong Kong time on their Monday afternoon. From there, it rallied back to around the 81.00 mark...and chopped back and forth on either side of that line up until about 3:00 p.m. in New York. From there, a tiny rally commenced...and the index closed the day just about where it started...at 81:07. Nothing to see here.
Although the gold equities opened in the black, they were in the red in just a few minutes...and were under strong selling pressure long before the 11:00 p.m. Eastern time sell-off in the gold price...and then traded more or less flat from there, despite the subsequent rally in gold that began at 12:15 p.m. in New York. The HUI finished down 1.26%...close to its low of the day.
The silver stocks didn't do well, either...and Nick Laird's Silver Sentiment Index closed down 1.78%.
(Click on image to enlarge) The CME Daily Delivery Report showed that 1 lonely gold contract was posted for delivery tomorrow...and that was it. There were no reported changes in GLD yesterday...but over at SLV, an authorized participant withdrew 629,301 troy ounces of silver. Nick Laird advised me late last night that the Sprott Physical Silver Fund...PSLV...has received/purchased 7,342,210 troy ounces of silver since last Thursday...5.9 million ounces on Friday and 1.4 million ounces yesterday...at least that's what it says on their website. If that's true, then delivery sure was fast. There may be a few more ounces to buy once the green shoe is announced later this month. The U.S. Mint did not have a sales report. The Comex-approved depositories were pretty quiet on Monday...as only 8,000 ounces were reported received...and 275,992 troy ounces were shipped out. The link to that activity is here. Here's a graph that Nick sent me last night...and the reason I'm posting it is because of the number of stories about China's gold imports for September that I have linked in this column. This is what Nick had to say about it in his covering e-mail... "The Hong Kong government statistics show "Exports to China", "Re-Exports to China" and "Imports from China"." "What the other analysts are doing is adding up the Exports and Re-Exports but not taking away the Imports to arrive at a Net Imports number." "So Chinese Net Imports = Hong Kong Exports plus Hong Kong Re-Exports less Chinese Imports" "In other words China sends some of it's gold imports back to Hong Kong for further value adding before re-importing it again." "This is a common occurrence and if you check the Hong Kong Government Statistics, you'll find lots of countries doing it." Distilled down to its essence, Nick is saying that you should be wary of all the analysts quoting Chinese import numbers, because some are not correct. You have been warned!
(Click on image to enlarge) While on the subject of Nick Laird...the Yellow-Bellied Sunbirds are now sitting on eggs in the nest the female built that hangs from Nick's Christmas lights...and here's a photo of two Sulphur-crested Cockatoos that showed up in a tree in his yard about ten days ago. Although a protected species...they can be pests.
It was a busy weekend for stories...and I have a lot for you today. I'm wimping out here...and I'll leave the final edit up to you. Could JPMorgan Chase et al get over run here? I suppose, but I wouldn't bet one red cent on that outcome. Morgan Chase better get Indians to start reading Jon Nadler. Silver Manipulation Explained in a Simple Way by Ted Butler. Sprott on Gold Market Outlook, Investment Strategy. PSLV receives 7.34 million ounces of silver. ¤ Critical ReadsSubscribeFood stamps Surge By Most In One Year To New All Time Record, In Delayed ReleaseWhile there had been speculation that the BLS may delay the release of its October nonfarm payroll number until after the election, it turned out there was no reason to worry. There was, however, another closely tracked number which perhaps is far more indicative of the economic "growth" in the past 4 years, which certainly had a delayed release. The number of course is that showing how many Americans are on food stamps, and usually is released at the end of the month, or the first day or two of the next month. This time the USDA delayed its release nine days past the semi-official deadline, far past the election, and until Friday night to report August food stamp data. One glance at the number reveals why...47.1 million! This short story, along with an excellent chart, was posted over at the zerohedge.com Internet site on Saturday. Reader Marshall Angeles...who now has both power and heat after the hurricane...sent it to me on the weekend...and it's well worth skimming. The link is here.  We're Finally Beginning To Understand How The Benghazi Attack Went DownLast month Broadwell—former CIA director David Petraeus' mistress and a former military intelligence officer—told a Denver audience that intelligence shows "the militia members in Libya were watching the demonstration in Cairo and it did sort of galvanize their effort." She also dropped this bombshell: "Now I don't know if a lot of you heard this, but the CIA annex [to the consulate] had taken a couple of Libyan militia members prisoner and they think that the attack on the consulate was an effort to try to get these prisoners back." If there were ever a motive to attack Americans, it would be the disappearance of friends. Paula Broadwell? David Petraeus? You wouldn't believe this even if this scenario showed up in a third-rate spy novel! This story was posted on the businessinsider.com Internet site late yesterday afternoon...and I thank Roy Stephens for his first offering of the day. The link is here. [Note: Since I posted this article, it now boasts a new headline...and part of it has been re-written. - Ed]  Petraeus mistress reveals real motive behind Benghazi attackThis Russia Today story on this affair arrived in my in-box long after I'd posted the above story...so I just thought I'd add it at this point in this column. I'm just wondering how much longer it will be before Hillary Clinton's name pops up. It's also from Roy Stephens...and the link is here.  'LIBOR-like' manipulation of gas prices suspected in U.K.The City watchdog, the Financial Services Authority, is investigating claims by a whistleblower that Britain's L300 billion wholesale gas market has been "regularly" manipulated by some of the big power companies, exploiting weaknesses that echo the recent Libor scandal. Separately, the energy regulator Ofgem has been warned by a company responsible for setting so-called benchmark prices, ICIS Heren, that it had seen evidence of suspect trading on 28 September, a key date as it marks the end of the gas financial year and can have an important influence on future prices. The whistleblower, who works for ICIS Heren, raised the alarm after identifying what he believed to be attempts to distort the prices reported by the company. These benchmark prices are critically important because many wholesale gas contracts are based on them and small changes in the price can cost or save companies millions. The revelations come at a highly charged time for Britain's energy sector, with many of the big six suppliers under public fire for alleged profiteering on household energy bills and mis-selling on the doorstep. What else is new? Of course there are still those mental giants out there that believe that gold and silver prices are still set by normal supply and demand factors...and we thought that the dinosaurs were extinct. Silly us! They all know better, but won't say a word. This story showed up on the guardian.co.uk Internet site yesterday...and I plucked it out of a GATA release. The link is here.  Greece approves 'last spending cuts' in 2013 austerity budgetGreek lawmakers approved the country's 2013 austerity budget early Monday, an essential step in Greece's efforts to persuade its international creditors to unblock a vital rescue loan installment without which the country will go bankrupt. The budget passed by a 167-128 vote in the 300-member Parliament. It came days after a separate bill of deep spending cuts and tax hikes for the next two years squeaked through with a narrow majority following severe disagreements among the three parties in the governing coalition. "Just four days ago, we voted the most sweeping reforms ever in Greece," he said. "The sacrifices (in the earlier bill and the budget) will be the last. Provided, of course, we implement all we have legislated." This story showed up on the telegraph.co.uk Internet site in the wee hours of Monday morning GMT...and I thank Donald Sinclair for sending it. The link is here.  Progress in Athens: Troika Delivers 'Positive' Report on GreeceGreece's international creditors have finally filed their report on the state of the country's reform efforts. According to top euro-zone official Jean-Claude Juncker, the document is largely "positive" in tone. Still, no final decision has yet been made on the payout of the next tranche of aid Greece so desperately needs. Arriving in Brussels for Euro Group talks later in the day, Juncker said the ministers received the report on Sunday night and that it "is positive in its fundamental tone because the Greeks really delivered. Now it is for us to deliver." He said the ministers would check the report in detail and that he couldn't give a final verdict on it because he was still reading it. The Euro Group meeting comes after the Greek parliament passed an austerity budget for 2013 late on Sunday and a structural reform package last Wednesday, meeting the conditions for the release of the next €31.5 billion tranche of euro-zone aid. Athens' 2013 budget includes cuts of almost €10 billion. Don't forget that all this money is just being 'lent' to Greece so that it can pay back the banks that they originally 'borrowed' the money from. There's not a penny in this for the country, or its people, anywhere. This story showed up on the German website spiegel.de yesterday...and it's Roy Stephens second offering in today's column. The link is here.  How to Help a Sick French Bank Look HealthyIt's no secret that the methods many banks use for calculating capital ratios are a farce, especially at large European lenders. Sometimes the numbers are so over- the-top, all you can really do is sit back and admire the chutzpah. Consider France's third-largest bank, Credit Agricole SA, which today reported a third-quarter loss of 2.85 billion euros ($3.62 billion), sending its stock down 6 percent. For a more realistic capital ratio, take tangible shareholder equity (which excludes intangible assets such as goodwill) and divide it by tangible assets. At Credit Agricole, the figure was 1.4 percent as of Sept. 30, which translates into leverage of about 73-to-1. The financial crisis isn't over by a long shot. [Amen, bro'....Ed] This very short op-ed piece posted on Bloomberg on Friday is also your first must read of the day. Columnist Jonathan Weil gets it exactly right...and that's precisely the reason that the Basel III Accord got 'postponed'...as every bank is broke. It's as simple as that. I thank Manitoba reader Ulrike Marx for finding this story...and the link is here.  |
| Sprott on Gold Market Outlook, Investment Strategy: Bloomberg Posted: 13 Nov 2012 03:16 AM PST  Eric Sprott, chief executive officer of Sprott Asset Management, talks about investment strategy and the performance outlook for gold. Sprott speaks with Erik Schatzker and Scarlet Fu on Bloomberg Television's "Market Makers." This most excellent must watch 15-minute video was posted on the Bloomberg Internet site yesterday...and I thank reader Charley Orr for his efforts in digging up it up on our behalf. The link is here. |
| Silver Manipulation Explained in a Simple Way by Ted Butler Posted: 13 Nov 2012 03:16 AM PST  Now one of the true experts in this matter is Ted Butler. He is not only respected because he is in the precious metals markets for more than three decades but also because of his tremendous inside knowledge. His analysis goes to the heart of the price setting: the Commitment Of Traders reports. Based on years of in-depth analysis, he came to the conclusion that the price of silver is manipulated and he is best positioned to explain himself why and how this manipulation happens. Although he believes that the manipulation has a strong short term effect, he is convinced that the longer term price is controlled by the increasing demand for physical silver. So yes the future looks bright, although there is uncertainty in the very short term price setting. |
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