Gold World News Flash |
- The Curious Case of Falling Gold and Silver Prices
- Silver Bull Market 10 Year Review
- So-Called Audit Of Fed’s Gold Complete Rubbish & Propaganda
- The Gold Price Lost $5.20 How Far Will it Fall?
- Michael Krieger – Crony Capitalists & Crazy Politicians Destroying US – YouTube
- India to curb gold imports again
- John Rubino – The Currency Wars will Destroy Wealth but Precious Metals will Benefit – YouTube
- QE & Gold Revaluation
- Bill Murphy – 100 oz Silver Coming Soon – YouTube
- Google Joins the $800 Club – YouTube
- Gene Arensberg's GGR: Gold futures setup becoming bullish
- Treasury's report on gold at Fed is like queen's visit to Bank of England's vault, Turk says
- The Top Ten Stocks for Feb. 19 – YouTube
- Silver Lords – YouTube
- Got Gold Report Courtesy Release of our Entire February 18 Report
- Here's What You Need to Know About Short Selling a Stock
- 6 Things to Know About Buying on Margin & 3 Risks of Doing So
- When It Comes to Gold, Stick to the Facts
- Trading Intuit Using Fibonacci Analysis – YouTube
- James Turk - US Treasury Enters The Gold War
- Volatility Is Lowest Since the Great Depression – YouTube
- Is Foreign Currency Cheap? – YouTube
- The Pound Gets Pounded
- China loves the US dollar again as America roars back
- Gold mid 2012 Pivot Lows Now of Interest
- Embrace Silver's Volatility All the Way to the Bank
- “The More Silver You Want, The More You Have To Pay”
- Steer Clear of These 10 Most Dangerous Investing Mistakes – Here's How
- Gold Seeker Closing Report: Gold and Silver Fall Slightly
- Hate Mail: Perhaps The Best Gold Bottom Indicator
- Gold Daily and Silver Weekly Charts - Option Expiration Next Monday
- In The News Today
- Treasury 'audit' on gold at Fed is 'rubbish,' Turk tells King World News
- It’s Time to go All-in on Gold and Silver
- When “Profitable” Isn’t Good Enough
- Changes in the Demand for Gold and the Dollar-Gold Link
| The Curious Case of Falling Gold and Silver Prices Posted: 20 Feb 2013 12:14 AM PST A curious thing happened last week. The prices of both monetary metals have been falling for a week and a half through February 15. No, that's not the curious part. There is no law of nature that says the prices have to go up, but if they go down it must be artificial somehow. The curious thing is that the price fell while open interest in futures rose, which is not typical of how the market has actually been behaving in recent years. Now let's look at the data.
Silver loses about 6.6%, and gold about 4%; thus the gold:silver ratio gains about 2.6%. Next, let's look at the open interest data, which is the number of futures contracts in each metal.
One possible explanation is the notorious "naked short sellers". If so, they made money. Prices did fall. However, there is more data that doesn't quite fit this theory. As we showed, silver open interest was already quite high. It increased a few thousand contracts (under 2%) during the period through February 15. Gold open interest was not high by recent historical standards, and its open interest rose by 25,000 contracts (around 6%). Now let's look at the basis data (here is a short tutorial on the basis). This adds additional color to the data provided above.
The gold basis has been falling for a long time. The basis generally (but not always) moves in the opposite direction of the cobasis, and this linked article showed the cobasis rising. The falling gold basis is not news in itself. Let's look at the silver basis.
The silver basis for December has been in a rising trend since at least last July (which uptrend is not yet broken, in our opinion). Here in this graph, we see it is not much changed from start to end. The May basis is falling, which is interesting as it occurs against the contract "roll" from March-May, now occurring. The "roll" is when "naked longs" must sell because they cannot take delivery, and typically they buy the next month if they want to keep exposure to the metal. The above data shows: (1) falling prices, (2) rising open interest, and (3) falling basis in gold and slightly more ambiguously in silver. We have provided all of the data comprising this curious circumstance. You can form your own conclusion. Or you can read Part II of this article (free enrollment required for full access) for our analysis and surprising (though tentative) conclusion. | ||||||||||||
| Silver Bull Market 10 Year Review Posted: 19 Feb 2013 11:00 PM PST Silver Stock Report | ||||||||||||
| So-Called Audit Of Fed’s Gold Complete Rubbish & Propaganda Posted: 19 Feb 2013 09:40 PM PST from KingWorldNews:
Eric King: "James, I have to talk to you about this news about the audit of the Fed's New York gold. What were your thoughts when you read that?" Turk: "I saw the news reports and it sounded very interesting. So I thought I would look into it and see exactly what was there, what they completed, and what kind of audit it was. I went into the Treasury website and actually read the Treasury announcement." | ||||||||||||
| The Gold Price Lost $5.20 How Far Will it Fall? Posted: 19 Feb 2013 09:14 PM PST Gold Price Close Today : 1603.60 Change : -5.20 or -0.32% Silver Price Close Today : 29.413 Change : -0.426 or -1.43% Gold Silver Ratio Today : 54.520 Change : 0.604 or 1.12% Silver Gold Ratio Today : 0.01834 Change : -0.000206 or -1.11% Platinum Price Close Today : 1696.40 Change : 19.80 or 1.18% Palladium Price Close Today : 763.75 Change : 11.00 or 1.46% S&P 500 : 1,530.94 Change : 11.15 or 0.73% Dow In GOLD$ : $180.93 Change : $ 7.50 or 4.32% Dow in GOLD oz : 8.753 Change : 0.363 or 4.32% Dow in SILVER oz : 477.19 Change : 8.62 or 1.84% Dow Industrial : 14,035.67 Change : 53.91 or 0.39% US Dollar Index : 80.36 Change : -0.157 or -0.19% The GOLD PRICE gave back $5.30 off Friday's close to end at $1,603.60. Silver lost 42.6 cents today to end at 2941.3c. Okay, Moneychanger, explain why that DOESN'T mean silver and gold are broken. Lacking a crystal ball, I don't know whether they are broken or not, but I can list the votes for and against and you can weigh them and tote them up yourself. On a five day chart the GOLD PRICE put in bottoms just above $1,600 on Friday and today. Is that a double bottom marking the end of the decline? Beats me, but there it sits, hollering, and if gold rises from here and doesn't later fall below that level, y'all will look back and say, "Why, shucks, that WAS a double bottom after all." Gold's low today came at $1,601.61, but it couldn't climb higher than $1,614.47. It's late for me as I write this (nearly 9:00 p.m. against my usual 5:30 p.m.) and the aftermarket has climbed up to Friday's close, $1,603.70. On a four month chart gold has fallen to the downtrend line from the August 2011 high, which ought to, and better, offer support. More: in the last two days it has traded outside the bottom Bollinger Band. That measures variability, and to punch through that bottom line implies GOLD is very much oversold and due an immediate rebound. Seldom happens that a market breaks that bottom line and continues to fall without a rebound In gold's case, over the last 2-1/2 years it has never pierced the bottom B-band and kept on falling. Rather, it has always rebounded at least a little, most of the time a lot. Only once has it kept on skidding along the bottom line for several weeks. Gold's waterfall over the last week also brings it to that downtrend line from the 2011 high. After the August breakout through and above that line to $1,800, that completes a correction back to the line for a final kiss good-bye, often seen in breakouts. Could the GOLD PRICE still drop to $1,525 and shake out all the weak holders, and scare the rest of us to death? Yep, but not without first breaking this $1,600 level. In any event, gut-wrenching and stomach-churning as it is, here is exactly the sort of place where you have to screw up your courage and buy. May prove the wrong move, but if it's right, 'twill be spectacularly right. Unlike gold silver made a lower low than Friday, falling to 2929c today. After a fast waterfall about 10:30 that low came about 1:15. Rest of the day silver held steady and now is at 2961c. The SILVER PRICE has reached not its downtrend line from the April 2011 high, but has just about matched its 4 January 2013 low at 2924c. And it has punched through the bottom B-band two days running, a bullish sign. (By the way, those Bollinger bands work just the same in reverse at tops.) Does any cosmic law state that silver won't return to the 2615c bottoms of last year? Nope. Worst feature on both silver and gold charts is that both have broken the uptrend line from the May/June lows. A spike through the line is permissible, lingering is not. Both will have to pick up sharply and close above $1,630 and 3100 cents very soon, or drop further. Nerve wracking as these long corrections may be, they don't gainsay the primary uptrend in silver and gold. What drives that? Central bank inflation. This past weekend the central banks just confirmed again, in case you have been deaf, dumb, blind, and locked in the basement since 2006, that they will continue to inflate. Cause remains, effect will continue. As I suspected, the G20 meeting issued a verbose statement bleached of all meaning. However, a lot was written between the lines. Whenever they say, "We will refrain from competitive devaluation," it means that behind the scenes there's an eye-gouging, ear-biting, nose-slitting bar-fight behind the scenes over that very thing. What hypocrisy! Every single central bank is depreciating its currency as fast as possible, they simply don't want any other country to leave them behind. "We're all depreciating, but we must depreciate in step." As I suspected, the silver and gold bull market is safe because once again central banks and governments have affirmed that they will continue to supply the one force that drives silver and gold up: inflation. Why, you may ask, if all that's true, did silver and gold drop today? One mistake people make is to assume that causes have their outworking in markets immediately. Markets are pushed around by fads like any other human undertaking, but sooner or later causes will have effects. The Japanese escaped the G20 meeting without the whipping they deserved if the G20 really were enforcing a ban on competitive devaluation ("currency war"). Yen may finally have stopped falling after a 105.86c intraday low six days ago. It has gently curved up, and closed today at 106.87c/Y100, but hasn't flashed the first sign of a reversal by crossing above its 20 DMA (108.6). US Dollar index benefitted not at all from the G20 summit. Trading now at 80.357, about where it ended last Thursday. However, dollar index stands above its 20 and 50 DMAs, and has established a clear if sluggish uptrend. Well, call it a short term uptrend in its crablike range. Needs to climb above 80.90 even to merit suspicion of a rally, and above 81.50 to confirm it. The euro meanwhile remains in what is either a correction or broken uptrend. Closed today up 0.19% at $1.3387, but won't prove a trend change until it closes below $1.3150 or above $1.3711. US$1=Y93.57=E0.7470+0.033999 oz Ag=0.000624 oz Au. Stocks ground out another little rise today. Dow added 53.91 to close above 14,000 at 14,035.67 (up 0.39%0. S&P500 ground side by side, up 11.15 (0.73%) to 1,530.94. Trend remains up. 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 © 2013, 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. | ||||||||||||
| Michael Krieger – Crony Capitalists & Crazy Politicians Destroying US – YouTube Posted: 19 Feb 2013 08:47 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||||||||||||
| India to curb gold imports again Posted: 19 Feb 2013 08:45 PM PST India could take more steps in the Union Budget on February 28 to curb gold imports. by Shivom Seth, MineWeb.com
The world's biggest gold importer has been trying to get its population to buy less of the metal and help bring down the country's import bill. Late January, the government hiked the import duty on gold and platinum to 6% from 4% to curb imports of the precious metal. However, realising that an import duty hike was in the offing, bullion retailers purchased 23% more gold in January this year, ahead of the duty hike. | ||||||||||||
| John Rubino – The Currency Wars will Destroy Wealth but Precious Metals will Benefit – YouTube Posted: 19 Feb 2013 08:24 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||||||||||||
| Posted: 19 Feb 2013 06:07 PM PST Graceland Update | ||||||||||||
| Bill Murphy – 100 oz Silver Coming Soon – YouTube Posted: 19 Feb 2013 06:05 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||||||||||||
| Google Joins the $800 Club – YouTube Posted: 19 Feb 2013 06:03 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||||||||||||
| Gene Arensberg's GGR: Gold futures setup becoming bullish Posted: 19 Feb 2013 05:54 PM PST 7:53p ET Tuesday, February 19, 2013 Dear Friend of GATA and Gold: Studying the latest futures trader data, Gene Arensberg of the Got Gold Report finds that the recent smashdown in gold appears to have been mainly the work of managed money funds rather than bullion banks and that the gold short position of the large commercial traders has become "quite low," a level "usually associated with lows or near lows for gold." Arensberg adds: "The setup is practically begging for a massive, very violent reaction just ahead." This week's edition of the Got Gold Report is headlined "Gold COT Imbalanced, Becoming Bullish" and it's posted in the clear here: http://www.gotgoldreport.com/2013/02/got-gold-report-courtesy-release-of... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT GoldMoney adds Singapore vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, Toronto, and the United Kingdom, now with GoldMoney you can store gold and silver in Singapore in a high-security vault operated by Brink's Singapore Pte Limited. To find out more about the new vault, please visit: http://www.goldmoney.com/singapore?gmrefcode=gata 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: California 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 How to profit in the new year with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... | ||||||||||||
| Posted: 19 Feb 2013 05:38 PM PST 7:30p ET Tuesday, February 19, 2013 Dear Friend of GATA and Gold: Continuing his interview with King World News today, GoldMoney founder and GATA consultant James Turk says the U.S. Treasury's report this week on gold held by the Federal Reserve is the equivalent of Queen Elizabeth's recent visit to the Bank of England's gold vault. "It's trying to make people (and countries) feel comfortable that the gold is really there," Turk says. "But why should they keep gold in other vaults? We're not on a gold standard anymore. We don't need to have gold stored in different vaults around the world to settle international payments. The gold is really just a country's reserve, and the only way you can make certain that you have control of that reserve is to store it in your own central bank's vault." An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/19_Ja... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit in the new year with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: California 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 Singapore vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, Toronto, and the United Kingdom, now with GoldMoney you can store gold and silver in Singapore in a high-security vault operated by Brink's Singapore Pte Limited. To find out more about the new vault, please visit: http://www.goldmoney.com/singapore?gmrefcode=gata 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 | ||||||||||||
| The Top Ten Stocks for Feb. 19 – YouTube Posted: 19 Feb 2013 05:14 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||||||||||||
| Posted: 19 Feb 2013 05:01 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||||||||||||
| Got Gold Report Courtesy Release of our Entire February 18 Report Posted: 19 Feb 2013 04:45 PM PST HOUSTON – Yesterday we released a new Got Gold Report to Subscribers covering recent changes in the positioning of the largest traders of futures on the COMEX in New York. In that report we detail that a majority of the recent selling pressure for gold futures has been coming from what many would say is an unusual source, if the record-high short positions taken by those traders is any guide (which it almost certainly is).
Since sending the report out we have received multiple requests from colleagues we respect and admire to share our work in the public domain - an honor we cannot in good conscience deny. So, below is a link to the entire article, including all the important charts and data, in PDF format. Hopefully readers will find it worthy of their time. Read the entire report: "Gold COT Imbalanced, Becoming Bullish"Download 20130218 GGR COT Notes (Please allow a few moments to load.) *** Below is just one example of the many important charts (and data) in the full GGR . It is the record high short gold position held by the usually net long traders the CFTC classes as "Managed Money," aka "The Funds," on February 12, 2013 - just before gold fell sharply, tripping sell stops and trailing stops to test near $1,600. Clearly the recent selling pressure for gold futures can be directly attributed to The Funds. The natural hedgers and bullion banks have actually been DECREASING their collective net short positioning recently, as the data in the report shows.
(Au $1,605, Ag $29.43, H-374.96, G-16.65, C-1,171.80) | ||||||||||||
| Here's What You Need to Know About Short Selling a Stock Posted: 19 Feb 2013 03:37 PM PST "Follow the munKNEE" via twitter & Facebook or Register to receive our daily Intelligence Report (Recipients restricted to only 1000 active subscribers) You can make money short selling a stock if its price goes down – but if its price The article* below is from Investor Education Fund (www.getsmarteraboutmoney.ca), a non-profit organization founded by the Ontario Securities Commission that provides unbiased and independent financial tools to help you make better money decisions. GetSmarterAboutMoney.ca is IEF's public educational website.
The article goes on to say in further edited excerpts: When you short sell a stock, you borrow shares from your investment firm because you think that the price of the stock is going to fall. You sell the borrowed shares at the current price and if the price drops, you make money by buying the shares back at the lower price and then returning them to your investment firm. If the price rises, you'll lose money if you have to buy back the shares at the higher price. The theory behind short selling
If the share price goes up instead of down You'll lose money if you have to buy back the shares at the higher price, and then return them to the investment firm. Theoretically, there is no limit to how high the price of a stock could go – losses could be catastrophic. This is the greatest risk of short selling. 3 things to know about short selling
* http://www.getsmarteraboutmoney.ca/en/managing-your-money/investing/stocks/Pages/Short-selling.aspx (© Copyright 2012, Investor Education Fund)
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| 6 Things to Know About Buying on Margin & 3 Risks of Doing So Posted: 19 Feb 2013 03:36 PM PST "Follow the munKNEE" via twitter & Facebook or Register to receive our daily Intelligence Report (Recipients restricted to only 1000 active subscribers) Buying on margin can mean potentially higher returns – but it can also lead to The article* below is from Investor Education Fund (www.getsmarteraboutmoney.ca), a non-profit organization founded by the Ontario Securities Commission that provides unbiased and independent financial tools to help you make better money decisions. GetSmarterAboutMoney.ca is IEF's public educational website.
The article goes on to say in further edited excerpts: You may be able to borrow money from your investment firm to pay for part of your investments. This is called buying on margin. Buying on margin allows you to buy more shares than you would normally be able to afford – it's a way of using leverage. This may mean potentially greater returns. But it also comes with greater risks – you can lose more money than you originally invested. 6 things to know about buying on margin
Read your margin account agreement When you open a margin account, you sign a margin agreement. Read it carefully to understand how the stocks you buy serve as collateral for the loan, your responsibilities for repaying the loan and how interest is calculated. How much you can borrow The Investment Industry Regulatory Organization of Canada (IIROC) sets minimum standards based on the price of a stock. Ask your financial advisor what the standards are in your country and keep in mind that some] investments firm may impose more stringent requirements in certain situations.
* Stocks with low volatility and high liquidity, making them easier to buy and sell Example:
What happens next? Let's look at 2 scenarios. Scenario 1: The stock rises to $12 a share
Scenario 2: The stock drops to $8 a share
Practise before you buy on margin Buying on margin is complicated and comes with many risks. To learn more, try this margin account simulation from the North American Securities Administrators Association. 3 key risks
*http://www.getsmarteraboutmoney.ca/en/managing-your-money/investing/stocks/Pages/Buying-on-margin.aspx (© Copyright 2012, Investor Education Fund)
Related Articles: 1. Apply the Bell Curve to Your Portfolio Asset Diversification – Here's Why
80% of my investable income is in cash, precious metals and a small number of stocks. That might seem crazy, but the Pareto Principle, Zipf's Law and the bell curve have convinced me that it's a waste of time and money to get any more diversified. [Let me explain why that is the case.] Words: 396 2. What You Should Know About the "Dogs of the Dow" Investment Strategy
The "Dogs of the Dow" is a simple and effective strategy that has outperformed the Dow over the last 50 years and generates almost 4% in yield. Here's how it works. Words: 486 3. Be Careful! Former Investment "Rules" Nolonger Work – Here's Why
Investment "rules" that were relevant for a century are obsolete. They were based on a world where economies grew, people's standard of living increased and outcomes tomorrow better than today. Arguably each of these conditions will not hold in the future but if they don't, neither do the rules of thumb that guided investing last century. These guiding principles developed and worked in a world that that no longer exists but applying them in the future will result in devastating financial outcomes. [Let me explain.] Words: 1261 4. Portfolio "Diversification" Can Kill Your Portfolio Returns – Here's Why
Most investors don't know anything more about diversification than you "shouldn't put all your eggs in one basket" [but] spending some time trying to understand the ways you might be shooting yourself in the foot could seriously enhance your portfolio returns and stop catastrophic risk. [There are some advantages to diversification if you REALLY know what you are doing but the shortcomings can go a long way towards killing your portfolio returns. In this article we identify what they are and how best to avoid them.] Words: 1055 5. Warren Buffett: Diversification is Nothing More Than Protection Against Ignorance
NOT putting all your eggs in one basket makes intuitive sense to many investors. Indeed, evidence indicates that putting more eggs in your basket may actually crack your portfolio, not protect it. Words: 515 6. Your Portfolio Isn't Adequately Diversified Without 7-15% in Precious Metals – Here's Why
The traditional view of portfolio management is that three asset classes, stocks, bonds and cash, are sufficient to achieve diversification. This view is, quite simply, wrong because over the past 10 years gold, silver and platinum have singularly outperformed virtually all major widely accepted investment indexes. Precious metals should be considered an independent asset class and an allocation to precious metals, as the most uncorrelated asset group, is essential for proper portfolio diversification. [Let me explain.] Words: 2137 7. Frank Holmes: Diversification Among Commodities is Vital – Here's Why
Diversification among natural resources is vital because there's always an ebb and flow of commodities, both seasonal and cyclical and, as such, it is important to anticipate these global trends to know how to participate. [Let me explain.] Words: 528 8. Asset Allocation: How Sound is the Foundation of Your Portfolio Pyramid?
Regardless of the size of your financial pyramid, without a core-holding foundation, you are building it on sand. Core holdings are for protection, not for profit. They function as insurance against a catastrophe. [Let me explain.] Words: 754 9. Outliers Happen All Too Frequently So Get Prepared! Here's How
By definition, rare events should seldom occur [and] applying that understanding to financial markets assumes that all market events follow a normal distribution or, in layman's terms, a bell-shaped curve. More specifically, the statistics say that 99.7% of all daily movements should fall within three standard deviations of the mean, no more. Well, guess what? New research suggests that they clearly don't follow such a pattern – that "unlikely" doesn't mean "never". [Let me expand on that.] Words: 1079; Charts: 1 10. "Unlikely" Doesn't Mean "Never": "Rare" Events Happen Surprisingly Frequently in the Markets
By definition, rare events should seldom occur [and] applying that understanding to financial markets assumes that all market events follow a normal distribution or, in layman's terms, a bell-shaped curve. More specifically, the statistics say that 99.7% of all daily movements should fall within three standard deviations of the mean, no more. Well, guess what? New research suggests that they clearly don't follow such a pattern – that "unlikely" doesn't mean "never". [Let me expand on that.] Words: 1079; Charts: 1
12. Futures Investing: Should It Be In Your Future?
13. Commodity Trading: Which Option Options (if any) Belong in Your Portfolio?
14. What Are Warrants, Options & LEAPS?
15. Portfolio Down? Apply These Wise Sayings to Successfully Rebuild It
16. Words of Wisdom From the Most Brilliant Investors Ever
17. Understanding Systematic Risk, Modern Portfolio Theory and the Efficient Frontier
18. Should Stocks Be the Cornerstone of Your Portfolio? When It Comes to Gold, Stick to the Facts Posted: 19 Feb 2013 03:36 PM PST | ||||||||||||
| Trading Intuit Using Fibonacci Analysis – YouTube Posted: 19 Feb 2013 03:29 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||||||||||||
| James Turk - US Treasury Enters The Gold War Posted: 19 Feb 2013 03:23 PM PST  Today James Turk told King World News that the US Treasury has entered the gold war. Turk's statements were concerning the so-called audit of the Fed's New York gold. This is the final piece of the stunning written interview series which KWN has released today. Turk's extraordinary audio will follow later today.This posting includes an audio/video/photo media file: Download Now | ||||||||||||
| Volatility Is Lowest Since the Great Depression – YouTube Posted: 19 Feb 2013 03:11 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||||||||||||
| Is Foreign Currency Cheap? – YouTube Posted: 19 Feb 2013 03:10 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  | ||||||||||||
| Posted: 19 Feb 2013 02:54 PM PST By: Peter Schiff Tuesday, February 19, 2013 As the global currency war intensifies, the majority of attention has been paid to the 17% fall of the Japanese yen against the U.S. dollar over the past few months. The implosion has given cover to the sad performance of another once mighty currency: the British pound sterling. But in many ways the travails of the pound is far more instructive to those pondering the fate of the U.S. currency. Japan has a unique economic and demographic profile which makes it a poor stalking horse. Newly elected Prime Minister Shinzo Abe and the Bank of Japan have clearly and forcefully committed Japan to a policy of inflation at any cost. Even in a world of serial money printers their plans stand out as exceptional. Britain, on the other hand, is charting a more conventional course to the same destination. The UK government, under conservative Prime Min... | ||||||||||||
| China loves the US dollar again as America roars back Posted: 19 Feb 2013 02:54 PM PST February 19, 2013 11:11 AM - China's central bank has radically revised its view of US economic and strategic power, predicting that the dollar will remain the world's paramount reserve currency for decades to come. Read the full article at the Telegraph...... | ||||||||||||
| Gold mid 2012 Pivot Lows Now of Interest Posted: 19 Feb 2013 02:54 PM PST courtesy of DailyFX.com February 19, 2013 12:33 PM Daily Bars Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0 Commodity Analysis: I wrote last update (on 2/14) that “the break below channel support is enough to turn bearish for what may be the beginning of a larger breakdown”. It’s a good sign for bears that the break was validated by Friday’s sharp drop. After several days of consolidation, look lower. Action at the downward sloping channel (if reached) will determine whether or not I stay bearish. A daily close below the channel would warn that the decline is accelerating towards the December 2011 low. Commodity Trading Strategy: Risk on shorts is moved down from 1690 to 1655. LEVELS: 1564 1584 1596 1619 1638 1654... | ||||||||||||
| Embrace Silver's Volatility All the Way to the Bank Posted: 19 Feb 2013 02:50 PM PST Most precious-metals investors know that silver is more volatile than gold. But do they know just how big that difference really is? We thought it would be interesting to measure how much greater silver's daily moves are – both in gains and declines – than gold. We documented the daily price movements for both metals, and then calculated the difference using absolute values. To interpret the charts below, you need to know that:
With that in mind, | ||||||||||||
| “The More Silver You Want, The More You Have To Pay” Posted: 19 Feb 2013 02:28 PM PST In this week's talk with National Numismatics' Tom Cloud, we cover the debt ceiling negotiations, futures contract expirations and the activities of his biggest customers (they're buying silver). DollarCollapse: Hi Tom. It's been an intense couple of weeks… Tom Cloud: Yes, and it could get more intense. Short futures positions in silver are expiring and we're waiting to see what JPMorgan Chase and Goldman Sachs do. If they take more short positions, silver could pierce support at $29.50/oz and fall another 3%-4%. DC: The current silver short position in already at historic highs, isn't it? TC: It is extremely short. We've always known there are far more futures contracts outstanding for silver than there is physical silver. The commitment of traders (COT) numbers are certainly important, but they're harder to use as an indicator because there's so much deception going on. In the physical market there's a shortage for sure. It hasn't been this out-of-balance since 2008. Yesterday, for instance, I made my biggest-ever sale, 116,800 ounces in 100-ounce Comex silver bars. That's 1,168 bars worth about $3.5 million. It took me 8 or 9 days going back and forth while the price was moving. For an order this size you first go to the big boys and see what they have and start down the supply chain. DC: Really? For a $3.5 million dollar order you can't just make a phone call? That's a pretty small amount of money in today's world. TC: No, you can't. They can find 5,000 or 10,000 ounces, but more than that is hard. And suppliers want a bigger premium because you're taking their inventory. It used to be that the bigger the order the deeper the volume discount but with silver in backwardation [where the spot price is above the 1-month futures price] they want a higher premium for an order this size. So the more you want the more you have to pay. Just to be clear, these are Comex bars from the five major refineries, not from secondary refineries. These bars can be used to settle futures contracts so in a Comex default their premiums will soar, and as a result people are very interested in them. Even the biggest refineries don't have millions of dollars of inventory sitting around. DC: Meanwhile, the little guy is quiet. TC: Orders in the $600 to $10,000 range have been really slow. Small buyers don't want to go in when the market's down, they want to wait. But the big players are active. Besides the huge order, we've had other very nice-size orders in the past few days. DC: The main macro news on the horizon seems to be the debt ceiling debate. TC: Conservative republicans are demanding spending cuts and democrats want tax increases. It'll be a war for a while, but there's no doubt that they'll raise the debt ceiling by another $2 trillion. A higher debt ceiling has historically been great for gold, so the question is whether the reaction will be like 2011 when gold went up by $150 in three days. We know they'll raise the debt ceiling, and we know that will be good for gold and silver. We just have to be patient. For more information or to place an order, call 800-247-2812 or email Tom Cloud at tgcloud@bellsouth.net. Mention DollarCollapse.com for free shipping and insurance. | ||||||||||||
| Steer Clear of These 10 Most Dangerous Investing Mistakes – Here's How Posted: 19 Feb 2013 02:25 PM PST "Follow the munKNEE" via twitter & Facebook or Register to receive our daily Intelligence Report (Recipients restricted to only 1000 active subscribers) Protect your money by steering clear of these 10 most dangerous investing The article* below is from Investor Education Fund (www.getsmarteraboutmoney.ca), a non-profit organization founded by the Ontario Securities Commission that provides unbiased and independent financial tools to help you make better money decisions. GetSmarterAboutMoney.ca is IEF's public educational website.
Below are the top 10: 1. Not setting clear goals
You need to know these things before you invest. Then you can choose investments that best fit your situation. For instance, if you will need your money soon, you may want to choose safer investments. Why? You won't have time to make up any losses. 2. Putting all your money in one type of investment A mix of investments often works better. If one loses, another may gain. Remember, some businesses have cycles. Some may do well in the summer, some in winter. Some will react to world events, some may not. If you put all your money in a single investment (no matter how good it seems) and something goes wrong, you could lose all your money. Some people avoid this mistake by investing in mutual funds or exchange-traded funds (ETFs). With these products, your money goes into a mix of investments and, over time, it's your investment mix that most affects your results. That's why many advisers tell investors to avoid putting more than 5-10% of their money in any one investment. 3. Investing in things you don't understand If you don't understand how an investment provides a return to you, or how a business is organized, or how it makes money, you need to either learn more about it or consider avoiding it. Also make sure you understand what can make the price of an investment rise and fall. This will help you decide whether an investment is a good choice for you. To learn more, start by reading the annual report or prospectus. 4. Taking chances you can't live with Don't invest in something that makes you lose sleep at night from worry. Most people are better with investments that they don't need to watch every day. If you're going to take chances, make sure you only invest money you can afford to lose. 5. Forgetting about your investing costs There are always costs when you invest. In some cases, you pay fees. For instance, you pay sales fees when you buy and sell stocks. Mutual funds charge yearly fees to cover the cost of managing your money. These fees can vary from fund to fund so before you buy, make sure you understand and compare those costs. It will help you make better investment choices. Also, don't forget there can be a cost to playing it too safe when you invest. If you keep all your savings in a bank account, for instance, you won't lose money but you also give up the chance to grow your money faster. That can cost you money in a different way. 6. Following hot tips or rumours What looks like great information may just be noise. Make sure you know and trust the source. If you're looking for advice, get it from an expert. That's doing your homework. 7. Getting too comfortable with a good investment Congratulations, you picked a winner! Don't get too confident, though. Continue to monitor its profit and be prepared to drop it if necessary, no matter how well it's done in the past. Keep trying new investments as well for a balanced mix – remember mistake #2? 8. Hanging on too long to a bad investment It's kind of like a bad relationship. You met, fell in love, and were oh-so-confident in the mutual benefits but things have soured – your investment just isn't worth the cost anymore, and it's time to let go. It's okay to cry, but stop after one pint of ice cream. 9. Trying to rush results Sometimes an investment will blossom quickly, but substantial growth usually takes time (especially with riskier investments). In any case, you should set a timeframe for how long you're willing to hold out, and give it time. 10. Chasing success Who seeks investments without profit? Obviously, you want to make money but you'll burn yourself (and your wallet) out trying to follow the hot investment-du-jour every time a new one pops out of the woodwork. If you lack direction, talk to a professional.
*http://www.theloop.ca/living/money/investment-guide/photo-gallery/-/p/5628/the-loop-gallery-money#ad-image-0 (© Copyright 2012, Investor Education Fund)
Related Articles: 1. Apply the Bell Curve to Your Portfolio Asset Diversification – Here's Why
80% of my investable income is in cash, precious metals and a small number of stocks. That might seem crazy, but the Pareto Principle, Zipf's Law and the bell curve have convinced me that it's a waste of time and money to get any more diversified. [Let me explain why that is the case.] Words: 396 2. What You Should Know About the "Dogs of the Dow" Investment Strategy
The "Dogs of the Dow" is a simple and effective strategy that has outperformed the Dow over the last 50 years and generates almost 4% in yield. Here's how it works. Words: 486 3. Be Careful! Former Investment "Rules" Nolonger Work – Here's Why
Investment "rules" that were relevant for a century are obsolete. They were based on a world where economies grew, people's standard of living increased and outcomes tomorrow better than today. Arguably each of these conditions will not hold in the future but if they don't, neither do the rules of thumb that guided investing last century. These guiding principles developed and worked in a world that that no longer exists but applying them in the future will result in devastating financial outcomes. [Let me explain.] Words: 1261 4. Portfolio "Diversification" Can Kill Your Portfolio Returns – Here's Why
Most investors don't know anything more about diversification than you "shouldn't put all your eggs in one basket" [but] spending some time trying to understand the ways you might be shooting yourself in the foot could seriously enhance your portfolio returns and stop catastrophic risk. [There are some advantages to diversification if you REALLY know what you are doing but the shortcomings can go a long way towards killing your portfolio returns. In this article we identify what they are and how best to avoid them.] Words: 1055 5. Warren Buffett: Diversification is Nothing More Than Protection Against Ignorance
NOT putting all your eggs in one basket makes intuitive sense to many investors. Indeed, evidence indicates that putting more eggs in your basket may actually crack your portfolio, not protect it. Words: 515 6. Your Portfolio Isn't Adequately Diversified Without 7-15% in Precious Metals – Here's Why
The traditional view of portfolio management is that three asset classes, stocks, bonds and cash, are sufficient to achieve diversification. This view is, quite simply, wrong because over the past 10 years gold, silver and platinum have singularly outperformed virtually all major widely accepted investment indexes. Precious metals should be considered an independent asset class and an allocation to precious metals, as the most uncorrelated asset group, is essential for proper portfolio diversification. [Let me explain.] Words: 2137 7. Frank Holmes: Diversification Among Commodities is Vital – Here's Why
Diversification among natural resources is vital because there's always an ebb and flow of commodities, both seasonal and cyclical and, as such, it is important to anticipate these global trends to know how to participate. [Let me explain.] Words: 528 8. Asset Allocation: How Sound is the Foundation of Your Portfolio Pyramid?
Regardless of the size of your financial pyramid, without a core-holding foundation, you are building it on sand. Core holdings are for protection, not for profit. They function as insurance against a catastrophe. [Let me explain.] Words: 754 9. Outliers Happen All Too Frequently So Get Prepared! Here's How
By definition, rare events should seldom occur [and] applying that understanding to financial markets assumes that all market events follow a normal distribution or, in layman's terms, a bell-shaped curve. More specifically, the statistics say that 99.7% of all daily movements should fall within three standard deviations of the mean, no more. Well, guess what? New research suggests that they clearly don't follow such a pattern – that "unlikely" doesn't mean "never". [Let me expand on that.] Words: 1079; Charts: 1 10. "Unlikely" Doesn't Mean "Never": "Rare" Events Happen Surprisingly Frequently in the Markets
By definition, rare events should seldom occur [and] applying that understanding to financial markets assumes that all market events follow a normal distribution or, in layman's terms, a bell-shaped curve. More specifically, the statistics say that 99.7% of all daily movements should fall within three standard deviations of the mean, no more. Well, guess what? New research suggests that they clearly don't follow such a pattern – that "unlikely" doesn't mean "never". [Let me expand on that.] Words: 1079; Charts: 1
12. Futures Investing: Should It Be In Your Future?
13. Commodity Trading: Which Option Options (if any) Belong in Your Portfolio?
14. What Are Warrants, Options & LEAPS?
15. Portfolio Down? Apply These Wise Sayings to Successfully Rebuild It
16. Words of Wisdom From the Most Brilliant Investors Ever
17. Understanding Systematic Risk, Modern Portfolio Theory and the Efficient Frontier
18. Should Stocks Be the Cornerstone of Your Portfolio?
Gold Seeker Closing Report: Gold and Silver Fall Slightly Posted: 19 Feb 2013 02:25 PM PST | ||||||||||||
| Hate Mail: Perhaps The Best Gold Bottom Indicator Posted: 19 Feb 2013 02:19 PM PST My Dear Friends, 1. The more insulting the hate email becomes, the closer we are to an absolute low in this manufactured gold reaction. It is really foul today. 2. The nerve that I touched yesterday when I questioned the FDIC viability and aggregate insurance tells me that there is huge population of readers Continue reading Hate Mail: Perhaps The Best Gold Bottom Indicator | ||||||||||||
| Gold Daily and Silver Weekly Charts - Option Expiration Next Monday Posted: 19 Feb 2013 02:17 PM PST This posting includes an audio/video/photo media file: Download Now | ||||||||||||
| Posted: 19 Feb 2013 01:43 PM PST Jim Sinclair's Commentary Somebody who did not send nasty emails to me today. SAC Capital Partners Bets A Quarter Billion On Gold, Silver, & Mining Shares February 19, 2013 | By Tekoa Da Silva While the mainstream media continues to spew out bearish news and headlines on precious metals and (especially) mining shares, Continue reading In The News Today | ||||||||||||
| Treasury 'audit' on gold at Fed is 'rubbish,' Turk tells King World News Posted: 19 Feb 2013 01:21 PM PST 3:12p ET Tuesday, February 19, 2013 Dear Friend of GATA and Gold: The U.S. Treasury Department's new report about its "audit" of U.S. gold held by the Federal Reserve is "total rubbish," GoldMoney founder and GATA consultant James Turk tells King World News today. "They didn't audit the gold," Turk says. "All they looked at was the 'Treasury's schedule,' and that's an exact quote -- 'Treasury's schedule' -- of how much gold it's keeping in the various Federal Reserve banks. So again it's basically just looking at paper or record keeping and saying, 'Yes, this record keeping says that all of that gold is there.' "But there is no indication whatsoever in the Treasury announcement that they actually verified that the bars existed or went into the vault. So I don't know where the news reports came from about drilling bars and all of that kind of stuff because there was nothing whatsoever about that in the actual announcement from the Treasury itself. Again, it just looks like more disinformation or propaganda to make people (and countries) feel that the gold is really there, and that the Treasury did an audit, but they really didn't." An excerpt from Turk's interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/2/19_So... The Treasury Department report itself is posted at the department's Internet site here: http://www.treasury.gov/about/organizational-structure/ig/Audit%20Report... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold All-Pro Gold, run by long-time GATA supporters Fred Goldstein and Tim Murphy, offers its services to GATA supporters and anyone else interested in precious metals. The company brokers a full line of precious metals and numismatic coins. It aims to inform prospective clients about the importance of the monetary metals as part of a diversified financial portfolio and to keep prospective clients current with market trends. All-Pro Gold has competitive pricing and ships promptly to clients so they may have physical possession. Learn more by e-mailing Fred@allprogold.com or Tim@allprogold.com or telephone 1-855-377-4653 or visit www.allprogold.com. Join GATA here: California 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 | ||||||||||||
| It’s Time to go All-in on Gold and Silver Posted: 19 Feb 2013 12:40 PM PST Based on last week's trading activity and my contrary opinion theory, I feel that we are seeing what is called a "weak hands clean out" of small investors in the Gold and Silver markets, and that Gold will continue its twelve year record of gains in 2013. Since 2011, the Gold price has consolidated in the $1,525 to $1,920 per ounce area and is ready to breakout. I would not be surprised to see Gold move back above its 2011 high of $1,920 per ounce, and see Silver above $40 per ounce in 2013. | ||||||||||||
| When “Profitable” Isn’t Good Enough Posted: 19 Feb 2013 12:24 PM PST February 19, 2013
Nowadays, "the cost of deciphering a person's genetic instructions has dropped faster than the price of flat-screen TVs," according to NPR. And the process is much quicker. "Instead of years, it can take just weeks. Instead of an army of scientists, all it takes is a new high-speed sequencing machine and a few lab techs. Instead of billions, it can cost as little as $4,000. And many are predicting the $1,000 genome is coming soon." The potential is limitless: "Some doctors are starting to sequence cancer patients to find the mutations behind their tumor. Oncologists can then sometimes find better drugs to treat them. Other specialists are using sequencing to diagnose mysterious genetic conditions." "It is not theoretical or futuristic," says Harvard geneticist George Church. "It is today. And it is everyone."
Gee, you weren't expecting that, were you? "I think that genome sequencing is an enormously important part of the larger genomic breakthrough," explains our tech maven Patrick Cox. But it's not the "next big thing" for biotech investors. "From the beginning, there have been regular announcements of this or that company offering a new method along with dramatically lower prices for analyzing a person's genome. No single company had sufficient IP to dominate the market and pull in really big profits, so prices continue to fall. This is due not only to cheaper computational power, but to competition." In other words, genome sequencing is quickly falling into the same category as blood testing and other diagnostics. It can be profitable, but that's not what Patrick cares about. "We are assembling a group of transformational companies with blockbuster potential," he told his readers last week. "'Profitable' is not close to good enough for our purposes."
"As Moore's law continues to drive down the cost of sequencing and analyzing sequencing results, more and more genomes will be available and the pace of discovery will accelerate even further. The killer app in genome sequencing, therefore, is bioinformatics — the computer processing and analysis of genomes in a manner that is useful to the customer and health care provider." One company Patrick follows has compiled "the only integrated database of constantly updated information on the specific cell types, the genes functioning within those cells and genetic information about the diseases that afflict them." This database gets 2 million regular unique visitors per month. "These users are, for the most part, scientists, with a few exceptions like me. Many of these users, therefore, control significant research budgets." Nice, but what does that mean to the bottom line?
This company's users are, of course, more valuable. Research suppliers and pharmaceutical firms actually pay for access to the database. "But let's assume," says Patrick, "that these highly educated and connected users are worth only $100 per unique set of eyeballs. That's $200 million — so far." [We'll interrupt Patrick long enough to point out the parent firm of this company has a market cap of $205 million.] But $200 million is only the start. "The real money in sequencing is to be generated via practical analysis and interpretation of sequenced genomes. This product would not only describe potential problems, but could provide information on diagnostic, nutritional and behavioral approaches to countering potential genetic problems." And that's just genomic sequencing. "There are many ways for the company to monetize these users," Patrick says. Essentially, we're talking about the world's most important site for biological research, "a sort of scientific online encyclopedia of all cell type, gene and disease information, combined with the ability to sell research products from numerous sources." The parent company, you ask? It has six other subsidiaries working on projects equally as promising and lucrative — including the one that can immortalize human cells. [Ed. Note: We knew we couldn't keep "The Promise of Immortality" under wraps forever. For reasons explained in detail at this link, we've had to move swiftly to preserve your first-to-profit edge as an Agora Financial reader. To take full advantage of our offer, please act before midnight tomorrow.]
Well, that's at least as credible as the "optimism over deal making and data showing rising investor confidence in Germany" cited this morning by Bloomberg. Should the current numbers hold, the Dow will close decisively above 14,000. Gold, after holding the line on $1,600 Friday, is sliding back toward that level — $1,604 at last check. Silver's at $29.48.
For nearly a year, Turkey has bought Iranian natural gas with Turkish lira (because dollars and euros are verboten), and then the Iranians exchange their lira for gold at Turkey's state-owned Halkbank, and the gold is shipped to Iran via Dubai. No more: "Halkbank can only accept payments for Turkish oil and gas purchases," a Turkish banking source tells Reuters, "and Iran is only allowed to buy food, medicine and industrial products with that money… They have to prove what they are buying… so gold exports will definitely fall." Turkish Economy Minister Zafer Caglayan appears to be conceding the point. According to the Reuters dispatch, he "signaled a decline in the trade last week when he said that, while Turkey would not be swayed by U.S. pressure to halt gold exports to Iran, Tehran's demand for the metal was expected to fall."
Talks between Iran and the Western powers start again a week from today. We're not holding our breath…
According to Kamboj, 100 tons of gold were imported into India in January, up 40% from last year's average monthly imports. Worried about its growing current account deficit, India recently attacked gold imports by upping the duty rate 50%, from 4% to 6%. Of course, this caused a scramble for gold before the increase took effect on Jan. 21. India's next budget announcement is scheduled for Feb. 28, "and if gold imports continue apace," says Reuters, "traders are concerned New Delhi may take further action to curb demand." "The hike in duty will only lead to large-scale smuggling," Kamboj says, "and loss in revenue for the government."
In 2011, Dan knew American was a dead airline flying… and readers of Strategic Short Report hauled in 95% gains as shares slid from $6.60 to 35 cents. "For years, competition was brutal. Airlines engaged in price wars to gain market share. While this kept a lid on airfares, it also depressed returns for the entire industry. You may think airfares are high, but they've not been high enough to allow the indebted, capital-intensive industry to sustain itself." But now United has swallowed Continental, Delta has subsumed Northwest and once this latest merger is done, "competition will lessen," says Dan, "and airlines will have more pricing power." [Whether it's time to become an airline investor again is an entirely different question, which Dan explores in today's 5 PRO...]
An older couple from Ohio was driving through Memphis when they were pulled over. The offense: having a decal of a buckeye leaf on their bumper. As in the leaf that Ohio State players wear on their helmets to mark various accomplishments. Bonnie Jonas-Boggioni was behind the wheel. "They were very serious. They had the body armor and the guns," she told The Columbus Dispatch.
"One of these things is not like the other…" She explained it wasn't marijuana. "He looked at me like I was speaking a foreign language" she said. "It's just amazing they would be that dumb." Even more amazing is that they're pulling people over for bumper stickers…
The news isn't sitting well in much of the defense community… because the medal ranks above the Bronze Star — which is awarded for service in a war zone, many times in direct combat. A retired Green Beret tells the Washington Times "I suppose now they will award Purple Hearts for carpal tunnel syndrome." Ouch. Another Pentagon employee said the toughest part about manning a drone is "spilling hot coffee in their lap as they move their joystick." The people who signed up to man these things probably never imagined the flak they'd get…
"I do, and I'm guessing nothing has changed. Once the gummint starts using drones on U.S. citizens, it will only be a short time before the 'citizens' come up with workable, cheaper, underground countermeasures. Kind of like banning firearms. "If you think the illegal drug trade is bad, just wait for this black market to bloom. They're just idiots who think long-term planning is 'What's for lunch?'" The 5: "Remote-controlled drones that can record video footage are being sold in large retail stores," according to The Sydney Morning Herald. We don't doubt the American people's capacity for ingenuity to outwit the drones… at least some of the time. But all the same, it couldn't hurt to exercise your right to petition the government for a redress of grievances… you know, while that part of the First Amendment is still in effect. You can sound off along with other outraged Americans at this link.
"Tell us when physical holders are turning in their metals. Now, that will be newsworthy (like China, India , Russia). A new reserve currency is a given." The 5: Or the hedgies just don't trust the paper version the way they used to. Over the long weekend, Currency Wars author Jim Rickards suggested Soros might be trading in his GLD shares for the real thing; physical gold purchases don't have be reported on a 13-F Form to the SEC.
The 5: Nostra culpa. We did the right calculations, but with the wrong numbers. It is indeed 77%. As usual, things are worse than we suspect!
"I relay them to you as best I remember them. "' …whatever else our invasion force does, once the attack begins, there must be one guiding principle. Never — I repeat, never — do any harm to the American location called Washington, D.C. It must be kept intact and functioning. Only then will we be certain that Earth can be colonized with the least resistance. We need the current government to continue their present course of insanity to prevent America from joining any effective counterattack. If you do your part and leave Washington, D.C., untouched, we will be assured that the American government will unwittingly do its part to bring about our total mastery of the human race. The attack will commence as scheduled at…' "Sorry, 5, but that was all I got before I lost the connection. I hope you find the information useful." The 5: Yes, but would they let Paul "alien invasion" Krugman keep his job at The New York Times? Cheers, Dave Gonigam P.S. "I've met with a German broker who trades in gold bullion and Zimbabwean cigarettes," writes Chris Mayer. "I met a transplanted New York City investment banker working on deals from Saudi Arabia to Qatar. I met with a successful Australian mining entrepreneur working on his next startup." Chris is in Dubai for another visit, following up on a stop he chronicled in World Right Side Up. But what's it like after the epic bust there, the "Du-bubble"? Stay tuned for a full dispatch later this week… | ||||||||||||
| Changes in the Demand for Gold and the Dollar-Gold Link Posted: 19 Feb 2013 11:43 AM PST The World Gold Council published a report last week that raises a few important questions and quite a few eyebrows, so let's examine it. You can access the report here. We recommend that you read it, but if you're not going to go through ... Read More... |
Today James Turk told King World News that the so-called audit of the Fed's New York gold "is total rubbish." He also described this stunning situation as "disinformation or propaganda." The is the first of a series of written interviews with Turk regarding this incredible development. 
The rumblings are getting louder by the day. The Indian government is considering more steps to curb gold imports and is looking to put a cap on the purchases of the precious metal to contain the country's swelling current account deficit.
It cost $3 billion to draw the first rough map of the entire human genetic blueprint — the Human Genome Project that became a reality in 2000.
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