saveyourassetsfirst3 |
- HUI-Gold Ratio; 3 Views, 1 Conclusion
- China’s Golden Plan
- Silver’s Smoking Guns, Part III: Market Paradox
- Central Banks Are Still Gold Buyers
- Dig This: 9.7% Brigus Gold Convertible Bonds, Mature In 2016
- The Myth of ‘Falling’ Gold Demand
- SilverFuturist: Jerome Smith, Silver Superstar From The 70s
- Ron Paul: Sound money prospects in the USA
- Barbara Kolm: 2013 a crucial year for the eurozone
- Turk – This Is The Chart That Every Investor Needs To See
- Earnings Analysis: Wal-Mart Stores, Inc.
- Fiscal Cliff Notes for Precious Metals Markets
- Gold: 3 Events Worth Watching
- Negative Real Interest Rates Continue To Drive Gold's Price
- 3 Points A Jurisdiction Must Meet Before You Invest: Charlie Brookes
- The ABCs Of Mining Catalysts: Jocelyn August
- Gold to Rise 8% To 15% a Year – Citigroup
- Euro Holding Gains Despite France Rating Downgrade
- Trade Balances, Capital Flows And Exchange Rates: Worth Considering When Making Foreign Investments
- Gold & Silver: Accumulation & Liquidity
- Understanding America: Revolution to Collapse
- Russia Today's Max Keiser and Stacy Herbert Celebrate the 2nd Anniversary of the "Crash JPMorgan, Buy Silver" Campaign
- Reserve Bank of India forbids bank loans for gold purchases
- Alasdair Macleod: Understanding Asian gold demand
- Sebastian: Gold VIX Is Like a Jack-in-the-Box
- ‘We would not be surprised to see gold prices reach $2,200/oz’—ScotiaMocatta
| HUI-Gold Ratio; 3 Views, 1 Conclusion Posted: 20 Nov 2012 10:42 AM PST Here is a little snippet from NFTRH 213 that showed the important indicator of gold sector health, the HUI-Gold Ratio (HGR) from three different views; daily, weekly and monthly. As you can see, daily must hold to keep the weekly intact, which in turn must hold to keep the monthly big picture of the secular bull (for the HUI, not this sad looking ratio) intact. This is a difficult sector to own and indeed these charts say it is best to trade the stocks regardless of what one does or does not do with the bullion. But the conclusion is that until the HGR breaks down to a lower low, the current situation is viewed as a buying opportunity. On the other hand, HGR will serve as a handy risk management indicator if it should unexpectedly collapse. From #213:
Daily HUI-Gold Ratio (HGR) needs to hold a higher low to both the May and July lows here or else the story is bearish… That is because a new low here would threaten the higher low from Armageddon '08, highlighted in yellow, per the chart directly below… Which would in turn threaten 2008's higher low to the one from the beginning of the bull market in 2000.
So you can see that it is kind of important that the daily HGR hold its parameter. It is a simple conclusion; HGR must hold a higher low on the daily to avoid a threat to the July and May lows so that the weekly view can remain intact and not threaten the 2008 low and eventually, the secular low of 2000. Meanwhile, higher low status across all time frames means the indicator is not broken, despite the formerly "normal" correction that become somewhat intense last week. http://www.biiwii.com, Twitter, Free eLetter
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| Posted: 20 Nov 2012 10:42 AM PST China seems to be firmly on the path to global power, and they are working hard to make sure that path is paved with golden economic stability. They have achieved what they wanted to and they are now investing in gold. | |||||||||||||||||||
| Silver’s Smoking Guns, Part III: Market Paradox Posted: 20 Nov 2012 10:19 AM PST In Part I and Part II of this series, readers were presented with two dimensions of the great Silver Paradox. Despite having the best investment fundamentals of any commodity today, and arguably the best fundamentals for any commodity in history; silver hasn't been so under-produced since it was discovered in the New World nearly 600 years ago, and it has never been so under-owned. Along with establishing that silver is under-owned (by a factor of at least ten) and under-produced (by at least a factor of two); we also saw it conclusively established that silver was grossly under-priced. As we will see in this installment, it is the relentless suppression of the price of silver which is at the root of silver being both under-produced and under-owned. Much has been written on this subject previously, by myself and others. However, any discussion of price-manipulation in the silver market must begin with the relentless sleuthing of noted silver authority, Ted Butler. It was his shocking discoveries in the silver market which originally attracted the attention of small numbers of far-seeing Contrarians, as well as other commentators such as myself. Among Mr. Butler's revelations were the outrageous/absurd short positions in the silver market of a handful of bullion banks. Five of these banks hold approximately 80% of the global short position (year after year), in the world's largest silver market (the Comex) – another smoking gun. Furthermore, the magnitude of these short holdings is grossly disproportionate to the size of short positions in any other commodity market – another smoking gun. Even more outrageous, the largest of these short positions (held by JP Morgan) is always roughly twice as large as the size of the Hunt Brothers long position in the silver market; when they were charged and convicted of silver-manipulation. This goes well beyond a mere "smoking gun", and a more accurate metaphor would be to refer to it as a Smoking Cannon. The banksters tell us they are "hedging" for anonymous clients with these short positions, and the blind/deaf/dumb CFTC vacuously parrots that drivel. This excuse is nonsensical on many levels. Hedging is an activity done to protect an entity from a sudden, severe price-reversal (lower) in the market. However, as noted in Part I, relentless price-suppression in the silver market had already taken the price of silver to a 600-year low (in real dollars). Precisely what sort of "sudden, severe reversal" were these banksters hedging against with the price of silver already at a 600-year low? Silver priced below $4/oz was one of the most one-way bets in the history of commodities. Any objective analysis of that market would have indicated that silver clients required much less hedging than in any other commodity market – not much, much more. This multiplies the perversity of the grossly disproportionate short position, and totally negates the lies of the bullion banks. | |||||||||||||||||||
| Central Banks Are Still Gold Buyers Posted: 20 Nov 2012 10:04 AM PST By Arie Goren: In my previous posts here and here, I recommended buying gold. On that occasion, I explained that one main reason for expecting a long term rise in the price of gold is the behavior of the central banks. Ever since 2010 the central banks have become net buyers of gold after many years of only net selling. On November 15, 2012, the World Gold Council published its report, Gold Demand Trends Q3 2012, where it was clearly expressed that this trend is continuing. According to the report:
Source: World Gold Council Chart: Arie Goren 2012*: 3 quarters purchases annualized Source: Complete Story » | |||||||||||||||||||
| Dig This: 9.7% Brigus Gold Convertible Bonds, Mature In 2016 Posted: 20 Nov 2012 09:55 AM PST By Randy Durig: Income from a Junior Gold Miner We have developed a process to screen, review, select, purchase and monitor high yielding corporate bonds. Each week we screen thousands of corporate bond listings to find what we believe to currently be the best corporate bond for investors needing or seeking higher yields with as minimal risk as possible relative to its projected return. The following is our review process showing why we believe this high yielding Brigus Gold (BRD) convertible debenture passes the criteria for our clients. Denominated in US Dollars, this Canadian company's 6.5% Convertible Unsecured Subordinated Bond matures 3/31/16, and is currently indicating a yield to maturity of about 9.7%. Should this gold miner grow significantly in value, the possibility exists of increasing this already high yield through the capital gains its convertibility feature allows for, as explained further in this review. Consequently, we see this as a rare and Complete Story » | |||||||||||||||||||
| The Myth of ‘Falling’ Gold Demand Posted: 20 Nov 2012 08:48 AM PST There are some silly notions prevailing about gold. When taken together, these conventional wisdoms demonstrate that gold is still very much misunderstood. That is sad, but also good in a way. It presents an opportunity for those people who understand gold | |||||||||||||||||||
| SilverFuturist: Jerome Smith, Silver Superstar From The 70s Posted: 20 Nov 2012 07:37 AM PST "Jerome Smith was the legendary "Silver King" for his calls on the price of silver in the late 60s and 70s. (His cheerleading coaxed the Hunt brothers of Texas into silver)" from silverfuturist: ~TVR | |||||||||||||||||||
| Ron Paul: Sound money prospects in the USA Posted: 20 Nov 2012 07:31 AM PST Episode 71: Following his "Farewell to Congress" speech last week, Congressman Ron Paul talks to GoldMoney's Andy Duncan about the achievements and legacy of his recent presidential campaign — particularly in the context of monetary policy. They discuss the recent re-publication of his book The Case for Gold and his forthcoming chairmanship of the Campaign for Liberty (www.campaignforliberty.org/). Paul also talks about the likelihood of America returning to some form of gold standard in the years ahead and the prospects for private currency issuance; what the next four years under President Obama are likely to hold; and the shale oil revolution. This podcast was recorded on 19 November 2012. from goldmoneynews: ~TVR | |||||||||||||||||||
| Barbara Kolm: 2013 a crucial year for the eurozone Posted: 20 Nov 2012 07:30 AM PST The Austrian School of economics is in their view becoming more and more relevant as Western economies slide deeper into trouble, with Austrian School economists able to explain and predict the booms and busts of credit driven bubbles. Austrian economics also places special emphasis on social behaviour of the individual, a point often overlooked by other economic theories. from goldmoneynews: Kolm states that many countries in the eurozone have been too busy redistributing wealth while forgetting to be productive and competitive. They talk about the big problems in France, where the government exerts a stifling influence over the economy. Kolm argues that we have to rethink the role of government in our modern societies. On the subject of the euro, Kolm believes that it will be kept, but that some weaker countries will have to leave the club eventually. 2013 promises to be an interesting year as far as the currency union is concerned, with important elections in Germany and elsewhere. In her view, more and more people will continue to be attracted to gold and silver as safe-havens amid increasing economic problems. This podcast was recorded on 15 November 2012. ~TVR | |||||||||||||||||||
| Turk – This Is The Chart That Every Investor Needs To See Posted: 20 Nov 2012 07:18 AM PST
from kingworldnews.com: Today James Turk sent King World News exclusively a chart that every investor needs to see. It really is true that a picture is worth a thousand words. But first, here is what Turk had to say about the the markets and what is happening behind the scenes: "What a great way to start the week, Eric. Even the stock market is rising, possibly because it was due for a bounce after the pummeling it has taken lately. But it probably bounced because the Federal Reserve has started the printing presses now that the election is over." James Turk continues: It is beginning to pump some money into the system. Last week it turned $42.5 billion of debt into dollar currency – what is called monetization. Only $2 billion was new cash currency, which are the dollar notes that we carry in our pocket. The rest was deposit currency, which are dollars that circulate within the banking system. Keep on reading @ kingworldnews.com | |||||||||||||||||||
| Earnings Analysis: Wal-Mart Stores, Inc. Posted: 20 Nov 2012 07:03 AM PST By AnalytixInsight: Wal-Mart Stores Inc. (WMT) reports preliminary financial results for the quarter ended 2012-10-31. Wal-Mart Stores Inc. recently reported its preliminary financial results based on which CapitalCube provides a unique peer-based analysis of the company. Our analysis is based on the company's performance over the last twelve months (unless stated otherwise). Wal-Mart Stores Inc.'s analysis versus peers uses the following peer-set: Amazon.com Inc. (AMZN), Costco Wholesale Corp. (COST), Target Corp. (TGT), Dollar General Corp. (DG), Macy's Inc. (M), Kohl's Corp. (KSS), Dollar Tree Inc. (DLTR), Family Dollar Stores Inc. (FDO), Sears Holdings Corp. (SHLD) and J.C. Penney Co. Inc. (JCP). The table below shows the preliminary results along with the recent trend for revenues, net income and returns. For CapitalCube's Earnings Analysis of Macy's Inc. click here.
Complete Story » | |||||||||||||||||||
| Fiscal Cliff Notes for Precious Metals Markets Posted: 20 Nov 2012 06:43 AM PST Precious metals markets opened slightly higher in all but spot silver this morning. Gold moved $1.90 higher to start at $1,733.80 on the bid-side, while platinum gained $4 to reach $1,576 the ounce. | |||||||||||||||||||
| Posted: 20 Nov 2012 06:17 AM PST By Frank Holmes: Indian Gold Demand Picks Up The love for gold has been reignited in India, according to the World Gold Council (WGC) in its Gold Demand Trends for the third quarter of 2012. India regained its title as the strongest performing market, overtaking the greater China area, as the country experienced a bounce back in demand due to improved sentiment during the festival season. Compared to the third quarter of last year, Indian gold jewelry demand grew by 7 percent while gold bar and coin demand rose 12 percent. Total consumer demand was 223 tons, compared to 205 tons this time last year. The second largest market was Greater China, which consumed 185 tons in the third quarter of 2012. This was less than the 201 tons consumed in the third quarter of last year. Together these markets in the east made up 55 percent of the world's jewelry and investment Complete Story » | |||||||||||||||||||
| Negative Real Interest Rates Continue To Drive Gold's Price Posted: 20 Nov 2012 05:27 AM PST By Gold Silver Worlds: Gold Silver Worlds had the honour to do a Q&A with Ronald Stoeferle, who is a precious metals analyst and author of the well known reports "In Gold We Trust" (see last edition of the report). People tend to focus on the daily "noise" and often forget the long term view. The first point that Ronald Stoeferle made during our discussion, was that the major topics of his first report (from Complete Story » | |||||||||||||||||||
| 3 Points A Jurisdiction Must Meet Before You Invest: Charlie Brookes Posted: 20 Nov 2012 05:26 AM PST By The Gold Report: With money rushing out of the junior resource space, Charlie Brookes, investment director at Arlington Group Asset Management and investment manager at Praetorian Resources, is rushing in-thoughtfully. In this Gold Report interview, he says now is the time to buy and hold, but it is crucial that investors do their homework before investing. The Gold Report: What approach has Praetorian Resources Ltd. taken toward resource equities at this point? Charlie Brooks: Praetorian Resources is focusing its attention on scalable and quality assets run by experienced management teams and wherever possible is trying to reduce its exposure to high levels of financing risk. TGR: Can you explain what Praetorian is? CB: Praetorian Resources operates exactly like a fund but is actually structured as an investment holding company. We hold 15 investments at the moment, a variety of junior resource companies. Polar Star Mining Corp. (POSRF.PK) is a significant investments for us. Complete Story » | |||||||||||||||||||
| The ABCs Of Mining Catalysts: Jocelyn August Posted: 20 Nov 2012 05:20 AM PST By The Gold Report: Investors need to know their catalysts and their potential effect - good and bad - on precious metals mining companies. Jocelyn August, senior analyst at Sagient Research, knows her catalysts from pre-exploration to production. In this Gold Report interview, she describes eight catalysts and gives examples of upcoming catalysts for seven small-cap companies. The Gold Report: Jocelyn, your expertise lies in crunching the numbers and quantifying the catalysts that affect equity values. Generally speaking, high commodity prices benefit the companies that mine them. Are commodity prices also important to the valuation of pure exploration companies? Jocelyn August: The difficulty in valuing a pure exploration company is the lack of revenue from actual mining operations. You have to consider commodity prices in valuation because the higher the price a company will be able to get for its commodity, the better. However, if the company's projects are several years from production, the Complete Story » | |||||||||||||||||||
| Gold to Rise 8% To 15% a Year – Citigroup Posted: 20 Nov 2012 05:13 AM PST Gold is flat today and appears to be consolidating on yesterday's gains. Conflict in the Middle East and Moody's downgrade of France's AAA rating will support gold. Indeed, the Moody's downgrade of France shows how the global debt crisis is spreading. | |||||||||||||||||||
| Euro Holding Gains Despite France Rating Downgrade Posted: 20 Nov 2012 04:52 AM PST Spot market prices for buying gold traded above $1,730 an ounce throughout Tuesday morning in London, up 1% for the week so far, while the euro also held onto gains made yesterday despite news that a second ratings agency has downgraded France. | |||||||||||||||||||
| Trade Balances, Capital Flows And Exchange Rates: Worth Considering When Making Foreign Investments Posted: 20 Nov 2012 04:46 AM PST By Elliott R. Morss: Introduction If you are an American investor, you exchange US$ for EUR to buy EUR stocks - the opposite when you sell. That means a weaker dollar over your investment period would result in you getting back less currency on the exchange and vice versa. When planning to make an international investment, are exchange rate fluctuations worth considering? Table 1 combines stock market and exchange rate changes from the depths of the recession until today. Consider first an EUR equity investment. Over this period, the EUR stock markets fell by 17%. That means if you bought an ETF indexed on the EUR stock markets, you would have had a 17% capital loss. The dollar increased by 10% relative to the EUR, so you only lost 6%. Not much change in England, but in Japan and China, your equity losses were compounded because the dollar weakened against both the yen and Complete Story » | |||||||||||||||||||
| Gold & Silver: Accumulation & Liquidity Posted: 20 Nov 2012 04:16 AM PST Two qualities make the precious metals very unique investment assets. This is something that the anti-gold antagonists seemingly fail to understand. Alternatively, perhaps they understand it so well that they are actually scared of gold. | |||||||||||||||||||
| Understanding America: Revolution to Collapse Posted: 20 Nov 2012 03:56 AM PST Get some popcorn and a drink. If you can sit through a mindless movie I suggest doing yourself a favor and watch this and understand the reality of America from where we came from to where we are with our Police State, War Machine and Economic collapse and Post Collapse America. A fantastic enlightening discussion about America as it was, America as it is and America as it shall become. from newamericanow: ~TVR | |||||||||||||||||||
| Posted: 20 Nov 2012 03:26 AM PST ¤ Yesterday in Gold and SilverThe gold price was on the rise as soon as trading began in the Far East on their Monday morning...and was up eight bucks or so by shortly after 10:00 a.m. Hong Kong time. From there, it more or less traded flat into the Comex open...and that point jumped another five dollars or so before trading sideways until about 10:35 a.m. in New York. At that point there was another sharp spike that took gold up to its high tick of the day...$1,736.80 spot..about ten minutes before the London close. From that point it traded sideways once again before getting sold off a few dollars in electronic trading. Gold closed the Monday session at $1,731.90 spot...up $18.20 on the day. Net volume was very light...around 109,000 contracts.
As usual, the silver price was more 'volatile'. The price traded flat until just about 9:00 a.m. Hong Kong time...and at the point the price jumped almost 30 cents. From there, the price traded flat until about ten minutes before the Comex open. Then, the silver price began to rally...and jumped up the moment that trading began in New York. The 'big' rally only lasted about ten minutes...and then, like gold, traded flat until 10:35 a.m. Eastern before renewing its rally...albeit at a much slower pace. It appeared that the high tick of the day [$33.35 spot] came around 2:15 p.m. in electronic trading...and from there got sold off a bit into the 5:15 p.m. close in New York. Silver finished the day at $33.11 spot...up 80 cents. Net volume wasn't overly heavy...around 34,000 contracts.
The price patterns in platinum and palladium were more or less the same as gold and silver's. The dollar index hit its 81.44 zenith on Friday morning at 11:30 in New York...and was in decline for the rest of that day. This trend continued right into the Monday trading session. There was a bit of a bounce at the 81.00 level around 11:30 a.m. in London, but the decline resumed at precisely 8:00 a.m. Eastern time...and three hours later, the index had fallen 27 basis points from its 8:00 a.m. peak. From that point the dollar index didn't do a lot until 5:00 p.m. Eastern when the dollar spiked up into the New York close. The index, which had closed on Friday at 81.20...finished the Monday session at 81.03...down only 17 basis points...but had a bit of a wild ride between those times. I suppose the co-relation between the dollar index and the precious metal prices was more apparent on Monday...but the moves in the metals themselves was out of all proportions to the tiny moves in the currency index. Here's the chart showing last Friday's high...and all of Monday's action.
Not surprisingly, the gold stocks gapped up at the open...and stayed up for the entire day, closing almost on their highs. The HUI finished up 2.68%.
The silver stocks turned in a similar performance, with a lot of the junior producers doing much better than their senior brethren. Nick Laird's Silver Sentiment Index closed up 3.28%.
(Click on image to enlarge) The CME's Daily Delivery Report was a blank page yesterday. There were no contracts of any metal posted for delivery on Wednesday. The GLD ETF showed a smallish withdrawal of 13,891 troy ounces, which may have been a fee payment of some kind. And, for the third day in a row, an authorized participant withdrew about 1.5 million ounces of silver from SLV. This time it was 1,452,093 troy ounces. All withdrawals for the last three days have been within 50 troy ounces of the above number. On Thursday it was 1,452,135 troy ounces...and on Friday it was 1,452,117 troy ounces. Does it mean anything? Beats me! There was a smallish sales report from the U.S. Mint yesterday. They sold 1,500 ounces of gold eagles...along with 32,000 silver eagles. Over at the Comex-approved depositories on Friday, they reported receiving 623,635 troy ounces of silver...all of it went into the JPMorgan Chase depository, which now sits at 25,654,294 troy ounces. Nothing was shipped out. I'd sure love to know who the owners are. Is it JPM itself, or does it belong to its customers? The link to Friday's activity is here. Here's a nifty chart that Washington state reader S.A. stole from somewhere yesterday. It shows a 'cup and handle' technical formation. If you can believe T.A. in a rigged market, it may mean something...or not!
(Click on image to enlarge) It was a busy weekend for stories...and I have a lot today...so I hope you can find the time to read/watch the ones of most interest to you. By their very silence, the silver and gold mining companies are co-conspirators against all of their shareholders...us. Reserve Bank of India forbids bank loans for gold purchases. Investors showing more interest in silver, says GFMS report. 'We would not be surprised to see gold prices reach $2,200/oz'—ScotiaMocatta ¤ Critical ReadsSubscribeChina Persists In Refusing To Buy US Paper As Foreign LTM Purchases Of Treasuries Plunge To Three Year Lows[Thursday's] TIC data held two important pieces of data. The first is that in September, the month that Bernanke launched QEternity, for the first time in 2012, foreigners were net sellers of US Treasuries, dumping a total of $17.3 billion in paper, with foreign official institutions selling $919 million and non-official "Other Foreigners" offloading a whopping $18.3 billion: a record amount for this data series! The combined outflow was a dramatic reversal from the August $42.9 billion in purchases, from the $341.8 billion in foreign purchases Year To Date, was the first outflow of 2012, the first since the $13.1 billion sold in December 2011, and finally was the biggest sale in US paper since May 2009. This Zero Hedge story from Friday was sent to me by Marshall Angeles. It's not overly long...and there are some excellent charts. The link is here.  Rick Santelli: The Santelli Exchange...MF Revelations: "This is Corzine's Fault!"This short video clip from late last week is an exchange between Rick Santelli and James Koutoulas, the lawyer representing past clients of MF Global. James says that "I'm 100% convinced that he [Corzine] is a criminal and he does belong in jail". The CFTC and Gensler are also heavily criticized...and Koutoulas calls for Gensler's resignation. I ran this video by Ted Butler...and he says it's a tragedy that Rick and James overlooked one of the real criminals in this case...the CME Group...the ones who should have made all investors whole, but didn't. The CNBC clip runs for 4:03 minutes...and I thank reader Paul Laviers for sending it our way. It's definitely worth watching...and the link is here.  Billions in bearer bonds in NY vault could be lost to hurricane water damageHurricane Sandy floodwaters inundated a 10,000-square-foot underground vault downtown, soaking 1.3 million bond and stock certificates -- including bearer bonds that function like cash -- and putting them in danger of turning to mush. A contractor working for the vault owner, the Depository Trust and Clearing Corp., is feverishly working to restore the paper. But the value of the threatened notes under 55 Water St. remains unknown to all but the innermost circle of Wall Street bankers. One source said $70 billion in bearer bonds were in jeopardy. The rest of this very interesting story was in the New York Post on Sunday...and I found it in a GATA release. The link is here.  Wal-Mart Strike: Why the Black Friday Protests Matter to the Future of US JobsWal-Mart is notorious for treating its workers terribly, but this year employees are fighting back by hitting the retailer where it hurts: on Black Friday, the biggest shopping day of the year. Walkouts and protests at locations around the country have already started, and a strike is scheduled for Black Friday, the day after Thanksgiving and the start of the Christmas shopping season. Wal-Mart employees have reported that if they complain about their schedules, wages, or benefits, the company either docks their hours or fires them. But during the holiday shopping rush, Wal-Mart will need all hands on deck, giving the striking employees the most leverage they're going to get. Not to mention that, as if striking employees were ever good for business, a picket line is sure to put a damper on the holiday cheer that spurs big spending this time of year. With 1.4 million U.S. workers, Wal-Mart is the country's largest private employer, and one of the top 20 largest companies in the world. Clearly a force to be reckoned with, Wal-Mart has managed to quash previous attempts at organization among employees. This strike, backed by Making Change at Wal-Mart, a coalition of Wal-Mart employees, union leaders, and other supporters, will be the first in the company's history. This story showed up on the policymic.com Internet site on Saturday...and I thank Federico Schiavio for bringing it to our attention. The link is here.  Hostess, Union Agree to MediationIconic snack-maker Hostess Brands on Monday agreed to mediate its differences with striking union members before a bankruptcy judge. The mediation session will occur Tuesday afternoon in federal bankruptcy court in White Plains, N.Y., where liquidation hearings are underway. Hostess released a brief statement Monday afternoon confirming the mediation session. U.S. bankruptcy judge Robert Drain sought the mediation in an effort to save Hostess from liquidation and to save the more than 18,000 jobs at stake if the company collapses. Twinkie lovers can cut back on their medications for at least one day. This story was posted on the foxbusiness.com website yesterday...and I thank Marshall Angeles for his second offering in today's column. The link is here.  Aussie, Canada dollars termed reserve currenciesThe Australian and Canadian dollars, the world's leading commodity-rich currencies, are being formally classified as official reserve assets by the International Monetary Fund, marking the onset of a multi-currency reserve system and a new era in world money. In a seemingly innocuous yet highly portentous move, the IMF is asking member countries from next year to include the Australian and Canadian dollars in statistics supplied by reserve-holding nations on the make-up of their central banks' foreign exchange reserves. The technical-sounding measure, reflecting growing diversification of the world's $10.5 trillion of reserves, is likely over time to exert wide-ranging impact on world bond and equity markets. Expanding by two the list of officially recognized reserve assets from the present five — the dollar, euro, sterling, yen and Swiss franc — signals a new phase in the development of reserve money. For most of the past 150 years, the world has had just two reserve currencies, with sterling in the lead until the First World War, and the dollar taking over as the prime asset during the past 100 years. As a Canadian...I'm underwhelmed. The most important currency of all has not yet been included...and that is gold. Once that happens, then we'll really have something to celebrate. This marketwatch.com story was filed from London...and posted on their Internet site in the wee hours of yesterday morning. I thank Manitoba reader Ulrike Marx for finding it for us...and the link is here.  Argentina Ignores U.S. Court Decision, Will Not Pay Elliott And HoldoutsHow does a court located on Pearl Street in New York order the Argentina State Treasurer located in Buenos Aires to wire a payment on bonds, via intermediary banks, that Argentina effectively has disowned? It can't. Today, Argentina just made it very clear that once again those desperate for page views by analyzing and overanalyzing an utterly meaningless court decision's implications for rogue sovereign debtor will have to try even harder. I'm sure that Argentina is just one small step closer to another sovereign debt default...and their bonds will be worthless...again. How many times has that happened in the last century? I've lost track. This Reuters story is embedded in a Zero Hedge commentary from Sunday...and I thank reader 'David in California' for sending it our way. The link is here.  British banks becoming uninvestable, ABI warnsThe Association of British Insurers says institutions are reluctant to invest in high street banks because of increasing risks and shrinking returns. The trade group is preparing to deliver a hard-hitting report to the Parliamentary Commission on Banking Standards on behalf of its members who control £1.5 trillion assets and are among the bank's biggest investors. In preliminary evidence last week, the ABI told the Commission: "We are concerned that banking regulators are currently focused on financial stability at the expense of economic growth. This has a negative impact on banks' investability." The ABI added: "The prospects of sustainable economic recovery in the UK are to some extent dependent on banks being able to raise the funds necessary to finance the growth of small and medium-sized companies. From the perspective of institutional investors, it is essential that banks should be an investable proposition." This story showed up on the telegraph.co.uk Internet site late on Saturday night GMT...and I thank Donald Sinclair for sharing it with us. The link is here | |||||||||||||||||||
| Reserve Bank of India forbids bank loans for gold purchases Posted: 20 Nov 2012 03:26 AM PST  On Monday, the Reserve Bank of India directed banks not to give loans for purchase of gold in any form, including primary gold, bullion, and jewellery, to dissuade people from indulging in speculative activity. "It is advised that no advances should be granted by banks for purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold exchange-traded funds, and units of gold mutual funds," the RBI said in a notification. No advances should be granted by banks against gold bullion to dealers or traders in gold if, in their assessment, such advances are likely to be used for purposes of financing gold purchase at auctions or speculative holding of stocks and bullion, it said. | |||||||||||||||||||
| Alasdair Macleod: Understanding Asian gold demand Posted: 20 Nov 2012 03:26 AM PST  Far from being backward, as their government thinks they are, Indians are actually the most successful investors in the world for having placed their faith in gold, GoldMoney research director Alasdair Macleod writes. Macleod notes that many if not most Indian gold purchases are actually monetary gold as much as jewelry. Many other Asians, Macleod concludes, are following the Indian example, as they "instinctively know that what is actually happening is that paper money is going down, and hard experience tells them it never goes up." | |||||||||||||||||||
| Sebastian: Gold VIX Is Like a Jack-in-the-Box Posted: 20 Nov 2012 03:26 AM PST  Option Pit Mentoring & Consulting COO Mark Sebastian discusses gold volatility. He speaks with Deirdre Bolton on Bloomberg Television's "Money Moves." This very short video clip was posted on their website yesterday...and it's worth a look. I thank Washington state reader S.A. for sending it along. The link is here. | |||||||||||||||||||
| ‘We would not be surprised to see gold prices reach $2,200/oz’—ScotiaMocatta Posted: 20 Nov 2012 03:26 AM PST  In their analysis, ScotiaMocatta acknowledged, "There remain a multitude of factors influencing the gold price, but one of the main reasons we are still bullish is because of the mess the Western world is in." "Europe has a debt problem that is proving all but impossible to solve and all efforts to date have revolved around throwing more money at the problem to avoid the monetary system from breaking down," ScotiaMocatta observed. "That should be reason enough to be bullish for gold and we think the latest move higher in gold prices shows that it is." "It is hard to have much confidence in the economic outlook and in governments' ability to get a grip with all the interlinked problems." |
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