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• No currency wars, countries manipulate to achieve growth’ – OECD chief
• Ted Butler: Bullish on Gold But JP Morgan Excessively Short in Silver
• Intermediate Gold Chart - 1550 to 1570 For a Range Trade
• ZH Uncovers Ultra-Secret JPM Gold & Silver Vault in London
• It's Gut Check Time For Gold And Silver
• Buy Gold Now, As Central Banks Keep Buying Gold
• The Bernanke Shock
• Gold [and Silver] Leap Into Backwardation!
• China's Buying Cannot Stop Bond Yields Rising
• Why Stock Markets Crash: Critical Events In Complex Financial Systems
• Silver: A 26 Handle Is Not Out Of The Question
• GLD: 155 Target Hit; Are We Ready For Over $2000 In Gold?
• Adam Hamilton: Gold's Young Upleg
• Gold Cycle Analysis On February 15th Gold Price Drop
• Growth And Debt: Is There A Trade Off?
• Dan Norcini: Speculative Money Leaving Gold
• Strategic Metals - Gold, Tungsten & Molybdenum
• Gold & Silver COT Report 2/15: Commercials Cover 27 Million Ounces of Silver Shorts!
• Jim Sinclair: Collapse in WalMart Sales Reveals US Recovery is Dead
• Gold & Silver Price Takedown February 15th: Noise vs Facts
• Global Gold Reserves In 2012 By Central Banks
• Gold Silver Price Decline Not Over – Monitor Markets For Turnaround
• Ladies and gentlemen: we may just have uncovered the actual location of the ultra-secretive JPMorgan gold vault in the city of London. Where is 60 Victoria Embankment, London?
• German Automaker Reportedly Hoarding As Much Physical Silver As it Can Acquire
• George Soros 'makes $1 billion betting against yen'

No currency wars, countries manipulate to achieve growth’ – OECD chief Posted: 17 Feb 2013 10:10 AM PST

Ted Butler: Bullish on Gold But JP Morgan Excessively Short in Silver Posted: 17 Feb 2013 10:09 AM PST Gold Silver Worlds The recent gold and silver price takedown and the related negativity in the mainstream press were a reason for thorough investigation. The article "Noise vs Facts" on Gold Silver Worlds was intended to focus on the real facts. Investors should not be mislead by interpretations. More in-depth analysis is required to truly understand what is going on primarily in the futures market. With his extensive background and knowledge we trust on Ted Butler's COT analysis (which is at the core of the short term price setting). He wrote the following paragraphs to his paid subscribers on Saturday February 16th. His insights reveal a different picture than the one on the surface – for sure the one that was created by the mainstream media – so we are more than happy to share it with our readers. The good news is that the deliberate price smash appears to have fulfilled its objective, namely, to allow the commercials to buy great quantities of COMEX gold and silver contracts. When the commercials buy all they can shake from the tree, a price bottom is formed. The bad news is the blatant nature of the deliberate price smash, which confirms that a market manipulation exists for which a specific federal agency was expressly created to prevent. Whereas gold's COT structure in undeniably bullish on historical measurements, silver is a long way from what would be considered flat-out bullish (as is the case in gold). There is a single factor underlying this difference – JPMorgan. Back in the summer of 2012 and in December 2011, there was a strong feeling among many that JPMorgan might be able to completely eliminate its short position (then between 12 to 14,000 contracts) on lower prices. Instead, we rallied and on both occasions JPMorgan added aggressively to its concentrated short position. Today, JPMorgan's short silver position is at least double the former low levels (if they reduced it as much as I think in the past three days). That's a radically different setup, so much so that I would label it as the key factor in silver and gold at this point. Certainly, I hope everyone realizes that what I am saying is that the silver manipulation is more intense at this point, because of JPMorgan, than it ever was. That more observers than ever seem to see this (except for the see, hear and speak no evil monkeys at the CFTC, CME and JPM) is important beyond belief. Ted butler pointed to the fact that the same institutions that cause large volume selling are buyers on those big down days. Mind that trading game. We encourage readers to subscribe to Ted Butler's excellent service on Butler Research for detailed analysis on the gold and silver price decline and the prospects of the metals (short, mid and long term).

Intermediate Gold Chart - 1550 to 1570 For a Range Trade Posted: 17 Feb 2013 10:07 AM PST Le Café Américain

ZH Uncovers Ultra-Secret JPM Gold & Silver Vault in London Posted: 17 Feb 2013 09:23 AM PST In their biggest scoop of the year, and proving once again why they are the best finance journalists in the business, the Tyler Durden team at ZH has completed a detailed investigation and uncovered The Morgue's secret gold & silver vault in London. The apparent top-secret (well, until today) location of JP Morgan's gold vault [...] Check out these similar articles: Tel Aviv Firm to Open Massive New PM Vault in Beijing The Reserve Vault in Brisbane at centre of allegations of misappropriation and dodgy business practices JP Morgan to Acquire MF Globals Stake in the London Metals Exchange

It's Gut Check Time For Gold And Silver Posted: 17 Feb 2013 08:50 AM PST By Eric Parnell: Gold and silver took a beating on Friday. After gapping lower at the open, the precious metals ended the day down -1.43% and -1.97%, respectively. These declines are just the latest in a series of setbacks that have struck the metals over the last few weeks, as both gold and silver are now respectively -5% and -8% below their year-to-date highs reached in mid January. This recently poor performance has been gut wrenching for those that are long the metals, particularly in an environment where the stock market seemingly cannot trade lower for 30 minutes in any given trading day without being prodded back higher. So following this latest setback on Friday, it is reasonable to raise a critical question about gold and silver. Is it time to relent on these positions, or should conviction be maintained? Time horizon is the first important point that must be examined when answering Complete Story »

Buy Gold Now, As Central Banks Keep Buying Gold Posted: 17 Feb 2013 07:47 AM PST By Arie Goren: In my previous post, 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 February 14, 2013, the World Gold Council published its report, Gold Demand Trends Q4 and Full Year 2012, where it was clearly expressed that this trend is continuing. According to the report: The list of countries actively adding to their official gold holdings remains heavily concentrated in developing markets, which partly reflects the scale of growth in the reserves of these markets over recent years. As the official reserves of these countries swell, with their heavy emphasis on US$- and euro-denominated assets, the need to diversification also increases. With a focus on high Complete Story »

The Bernanke Shock Posted: 17 Feb 2013 07:39 AM PST The financial world was shocked this month by a demand from Germany's Bundesbank to repatriate a large portion of is gold reserves held abroad. By 2020, Germany wants 50% of its total gold reserves back in Frankfurt - including 300 tons from the Federal Reserve... Read

Gold [and Silver] Leap Into Backwardation! Posted: 17 Feb 2013 07:11 AM PST Since late January, the February gold contract has been in backwardation. This means that one could make a profit by simultaneously selling a gold bar and buying a February contract. One would still have one's gold plus a little extra. … Continue reading →

China's Buying Cannot Stop Bond Yields Rising Posted: 17 Feb 2013 06:06 AM PST ByTom Luongo: When the Fed announced QE III back in September it was difficult to determine just what was happening. QE should have been bullish for not only equities, which it wasn't - the S&P 500 (SPY) sold off 8.2% until the G-7 gave Japan the green light to devalue the Yen - but also Gold (GLD) which closed on Friday down 10.5% from the peak at $1800, putting in the lowest weekly close since the Euro bottomed back in late July. But the expansion of the Fed's balance sheet that was supposed to begin with QE III did not start taking place until the middle of December and the announcement of QE IV. (click to enlarge) The worry for the Fed has always been the day when the world would get its fill of U.S. Treasury securities. That would be the limit of the Dollar reserve system. To that end, Complete Story »

Why Stock Markets Crash: Critical Events In Complex Financial Systems Posted: 17 Feb 2013 05:05 AM PST By Chris DeMuth Jr.: This note is one of a series about the books that have informed and inspired my life and work. Click here for the previous book, Tomorrow's Gold. Conversation with Didier Sornette on Why Stock Markets Crash What has changed since your book? I have deepened greatly my understanding of the reason for bubbles in the last 30 years and developed a macro-view of where we come from and where we are going, with important implications for investments. What investment insights does Sornette offer? Our economy has become ever more financialized in the past three decades in an unsustainable illusion of a perpetual money machine. The corollary is that true and sustainable value is more likely to be found in sectors have with the potential for real growth of production through new technologies, innovations and creativity such as biotechnology and healthcare. What was most applicable? This book laid out Complete Story »

Silver: A 26 Handle Is Not Out Of The Question Posted: 17 Feb 2013 04:18 AM PST By Avi Gilburt: Well, the "manipulator-in-chief" has struck again. I was sitting around in my bunker in Maryland, and was a bit bored with the action in the silver market. So, I decided that I wanted to see a decline this past week, as my lower targets seemed quite lonely and my bankster friends were not able to take us over the 32.15 resistance level. So, on Monday, I called my "friends," and had them take the market down on the way to our target box. And, as you saw, they were more than happy to comply. This evening, as I write this article, I received a call from the "cartel" asking me if I want them to continue this decline in the metals. I told them that I do, and I do not want them to stop until they reach at least the 28 region. If you remember, last week, I Complete Story »

GLD: 155 Target Hit; Are We Ready For Over $2000 In Gold? Posted: 17 Feb 2013 04:14 AM PST By Avi Gilburt: I wrote my first 2013 article discussing GLD in January. In that article, I noted that my next target region for GLD is the 154/155 region. This past week, we hit a low of 154.56. So, has GLD finally bottomed? I do not yet think so. But, I believe that another long term buying opportunity is just about at hand. For those that have read my work in the past, you know that my primary analysis method for the metals tracks sentiment through the use of Elliott Wave analysis and Fibonacci mathematics. Yes, I know there are many "fundamentalists" that do not believe that this is possible. We have heard your "comments" many times before, and just claiming that it is not "possible" in light of the accuracy of the targets we present here is simply not reasonable. But, for most of the readership, I hope that I have Complete Story »

Adam Hamilton: Gold's Young Upleg Posted: 17 Feb 2013 04:00 AM PST Submitted by Adam Hamilton, Zeal: Gold's current slump began in late November and accelerated in December.  Ever since late that month, it has been inexorably grinding sideways and trying traders' patience.  Gold has indeed been fairly weak in that isolated time-frame.  But the big picture of what led into this recent consolidation reveals it is [...] Check out these similar articles: Adam Hamilton: QE3 Silver Impact Adam Hamilton: GLD Cannibalizing Gold Stocks? Adam Hamilton: Contrarian Gold Stocks

Gold Cycle Analysis On February 15th Gold Price Drop Posted: 17 Feb 2013 01:47 AM PST Well if there was any doubt left that [dollar] gold has decoupled from the Equity markets and risk in general, we got that confirmation on Friday.  As the Equity markets move closer to a 4 Year Cycle Top, this is a positive development for the longer term gold outlook.  Obviously that doesn't help us any in the short term as a "seemingly" improving economy is considered a negative for gold. On the Daily Cycle, the Cycle failure I discussed during the week did end up proving to be a negative development.  Friday's drop was discouraging because it was more than just a stop-run of positions clustered around $1,626.  Friday was a sustained and consistent sell-off on high volume which did not end in a bullish buying reversal.  It also took gold outside of a well-developed trading range where there is little support.  For these reasons I fear that the selling is likely not over. Looking at the Daily chart above, obviously it's oversold in the short term and should bounce out of a Bollinger Band crash.  But my concern is that the Cycle is only on Day 15, so it conceivably has another 5-8 days before a Cycle Low. This is an excerpt from this weekends's premium update published on Saturday (2.16)  focusing on gold from the "The Financial Tap". They are dedicated to helping people grow into successful investors by providing cycle research on multiple markets delivered twice weekly, as well as real time trade alerts to profit from market inefficiencies. They offer a FREE 15-day trial where you'll receive complete access to the entire site. Coupon code (ZEN) saves you 15%.

Growth And Debt: Is There A Trade Off? Posted: 16 Feb 2013 10:00 PM PST Gold University

Dan Norcini: Speculative Money Leaving Gold Posted: 16 Feb 2013 09:56 PM PST The chart shows that hedge fund shorts are now higher than in late 2008 and May 2012. Long positions are quite close to levels seen in summer 2012. Quoting Dan Norcini: Notice that since October of last year, hedge funds have been steadily liquidating long positions in the gold market while simultaneously instituting brand new short positions. The result of money flows out of the gold market that began in that month,  in addition to fresh shorting, has sent the gold price down $116/ounce as of Tuesday of this week, when the data for the COT is captured by the CFTC. Gold has since fallen another $39 as of Friday so one can assume that further long liquidation has been taking place by hedge funds along with another fresh burst of short selling by this same group of traders. Another way of saying this is that gold has fallen $155/ounce since this movement or repositioning by large hedge funds has occured in earnest. I should also note that this is the LARGEST outright short position by hedge funds in Five Years…. that is quite remarkable to say the least. Click the chart to enlarge.

Strategic Metals - Gold, Tungsten & Molybdenum Posted: 16 Feb 2013 09:00 PM PST The week end miner

Gold & Silver COT Report 2/15: Commercials Cover 27 Million Ounces of Silver Shorts! Posted: 16 Feb 2013 07:14 PM PST By SD Contributor Marshall Swing: Gold & Silver COT Report 2/15/13: Commercial gorged on 5,889 additional long contracts to their total on the week and a net modest 740 new shorts to end the week with 49.46% of all open interest, an huge increase of 1.76% in their share since last week, and now stand [...] Check out these similar articles: Gold & Silver COT Report 12/28/12: Commercials Cover 43 Million Ounces of Silver Shorts into Price Smash! Gold & Silver COT Report: Commercials Cover Massive 20 Million Ounces of Silver Shorts! Gold & Silver COT Report 12/21/12: Commercials Cover 13 Million Ounces of Silver Shorts into Post QE4 Raid

Jim Sinclair: Collapse in WalMart Sales Reveals US Recovery is Dead Posted: 16 Feb 2013 06:19 PM PST Jim Sinclair sent an email alert to subscribers Saturday, and stated that the recent decline in sales at Walmart exposes the fact that contrary to MSM MOPE, the US economy has flat-lined and expired. Sinclair states that there is simply no other tool other than gold that can now repair the balance sheets of Western [...] Check out these similar articles: Jim Sinclair: A Romney Election Means $3,500 Gold & A Dollar Collapse Within 6-9 Months!! Ron Paul at Top in Iowa 4-Way Dead Heat Jim Sinclair: We Haven't Seen Anything Yet, Derivatives Collapse Will Be of Mayan Calendar Proportions!

Gold & Silver Price Takedown February 15th: Noise vs Facts Posted: 16 Feb 2013 02:33 PM PST As from its inception, the aim of Gold Silver Worlds has been to focus on the real facts. Readers should understand what caused the price takedown on Friday February 15th 2013 and should be able to distinguish the noise from the true facts that the mainstream press attributed to the lower gold and silver prices. In this article, we show the real value of the biggest recent headlines and urge readers to value them for what they are: mainstream headlines. We also show the real reasons for the price drop. To get a flavour of the real facts, readers should look at this CNBC video which says it all. Negative mainstream sentiment Interestingly, the downward pressure on gold and silver prices came exactly on the day of the G20 meeting in Moscow. Coincidentally, all news out of Moscow was positive and economic recovery appeared to be the theme of the day. Ben Bernanke admitted that the US unemployment was still high, but emphasized that the US economic recovery is underway and that it would lift the global economy up. "As a consequence," sentiment for gold turned bearish… at least, that's how the mainstream linked the two events together. One of the many headlines reads "Gold dips to 6-month low as Bernanke says U.S. economy is improving." Furthermore, an "exclusive" headline on Reuters (source) reported that the US sanctions to eliminate the gold flow from Turkey to Iran. The significant increase of gold as an "alternative"  payment method  in the "gold for gas" and "gold for oil" transactions are the result of past year's sanctions to exclude Iran from the international payment system. Looking from the opposite perspective, Jim Sinclair (one of the most successful people in the gold business since the 70′s) commented as  follows on JS Mineset: The operation in gold is the same day after day. They are so blatant that the gold banks can teach the gold world a lesson on who is in charge. It is totally obvious. In 2500 years, gold has squashed those that thought themselves more powerful than the laws of nature, which is the basics for economics. Related to this matter, Michael from The Economic Collapse Blog wrote an excellent piece about Petrogold vs the Petrodollar. Furthemore, the rumours that QE was about to end this year were invalidated by Michael Pento (PentoPort) who has established a proven track record. He wrote: Since the Fed is NOT anywhere close to raising interest rates or reducing its bond purchases [as confirmed "between the lines" by Fed Vice Chairman Janet Yellen in a speech to the AFL-CIO this week], this should also allay fears that the U.S. dollar is about to enter into a secular bull market. The greenback is just about unchanged on the DXY over the past 12 months and has been mostly range-bound between 79 and 81 during that timeframe. There isn't any evidence that the USD is ready to soar in value against our six largest trading partners. Without a new bull market in the U.S. dollar, the price of gold cannot enter into a secular bear market. Our message is to be careful with the negative comments. It is common knowledge that the mainstream media and financial markets are characterized by a herd mentality. This negativity does not come as a surprise. The Hulbert sentiment was flashing a significant low in gold as we mentioned earlier. Be careful not to be caught with the herd when emotions are at extremes. Are Soros and PIMCO truly bearish? Furthermore, Soros and PIMCO were given big headlines, adding to the negative sentiment. CNBC wrote: "George Soros and Pimco Turned Bearish on Gold". The facts? Well, in the fourth quarter of 2012 they reduced their paper gold holdings. Let's be clear here: there is no explicit link between reducing gold holdings and being bearish. Obviously, it could be the reason, but totally different motives could be at play. As we wrote back in August, Soros e.a. had been accumulating gold in May at the lowest price points of the year. So taking a profit of some 15% (our best guess) as an institutional investor is normal. Besides, even more importantly, Frank Holmes points out that "Soros may have liquidated his gold holdings because he identified a significant short-term opportunity in the currency markets." It is simply not known. Frank Holmes wrote: George Soros seemed to anticipate the effect that Japan's government policies would likely have on the velocity of money. This turned out to be a brilliant move, as "wagering against the yen has emerged as the hottest trade on Wall Street over the past three months," says the Wall Street Journal. The newspaper reported that Soros gained "almost $1 billion on the trade since November," during a time the yen declined nearly 20 percent in four months. Our message is the same: be careful with interpreting the headlines and distinguish facts from noise. Do not get confused by the interpretation of a fact. Disconnect between physical and paper markets reaching extremes The core of the explanation why gold and silver prices have come down was related to futures trading. We explained only a week ago in "Short Term Gold & Silver Price Forecasting" that the open interest, especially in silver, was too high for a price rally to occur (courtesy: Precious Metals strategist K. Xeroudakis). The gold and silver paper market pointed to downside pressure. The latest futures market report showed an open interest in silver of approximately 152,000 contracts (which equals more than 26k tonnes). As explained in our aforementioned article the current open interest is flashing that a short term price decline was very likely. From a technical point of view, the short term picture for gold and silver does not look really well. Both metals have broken their 50 day moving average and a "death cross" is very close. It implies more downside should be expected. Again, those are indicators used in short to mid-term trading. Mind the irony in our statement: trading the "metals" … in the paper market. Make no mistake, the futures market is a purely paper based market and is almost exclusively accessible for institutional investors. The contrast with the physical market is reaching extremes and is now very blatant. We reported a continuing increase in investment and central bank physical gold demand and historically high Gold and Silver Eagle sales. To illustrate this, we point to Jim Sinclair who said: "How in the world do you take down at the same time in the same place every day when liquidity is the lowest in true liquidation of physical hold investment positions." Additionally, Darryl Schoon wrote an excellent article about the gold cold war, in which he explains the massive physical gold buying in the East versus the trading of paper gold in the West. Peter Schiff explained this point in an excellent way during yesterday's CNBC interview: The real gold investors are not selling. The traders are selling; those are leveraged speculators focused on the short term price. Individual investors, buyers of gold in the past years, and my clients are buying for gold for his store of value. They see this price correction as an opportunity to buy more. They do not care about the short term market noise. Please do not get confused by the current gold and silver price signals. They are coming primarily from futures traders. If you are a believer in the fundamentals of gold, you should really not care about temporary downside pressure and negative media sentiment. In closing, we should mention Ted Butler's view. In today's update to his premium subscribers, he wrote the following. The quote which summarizes his outlook. As we all know, his primary focus is on the COT analysis (futures market). "The truth is that Friday's high volume price decline, accompanied by a price penetration below two very round numbers ($1600 and $30), had all the makings of a final clean out." Ted butler pointed to the fact that the same institutions that cause large volume selling are buyers on those big down days. Mind that trading game. For detailed analysis on Ted Butler's view on the gold and silver price decline and the prospects of the metals (short, mid and long term) we encourage readers to subscribe to this excellent service on Butler Research.

Global Gold Reserves In 2012 By Central Banks Posted: 16 Feb 2013 01:59 PM PST Gold Silver Worlds The latest World Gold Council report details the global gold reserves at the end of 2012, as held by central banks. In this article, we show the  latest figures in the top 40 gold reserve holdings and highlight some 2012 trends. The countries that have added most actively to their gold reserves in 2012, were the developing markets. They continue to diversify their dollar and euro based holdings . Gold gives the security and stability that a currency deserves, especially in uncertain times of ongoing "global currency wars" (as detailed in one of our latest articles). In terms of global gold reserves in 2012, the report describes the general tendency: Central banks garnered a greater share of gold demand in 2012, accounting for 12% of the total compared with a 10% share in 2011. Total net purchases by central banks of 534.6 tonnes exceeded 2011′s already strong total and signalled a return to levels of buying last seen almost 50 years ago. Moreover, from a longer term perspective, central banks have continued to be net purchasers of gold. That trend started in 2009 and is confirmed to be intact. Since first becoming a net purchaser in Q2 2009, central banks have added almost 1,100.0 tonnes to global gold reserves, almost reserving the 1,143.0 tonnes of net sales conducted over the preceding three years. Global gold reserves, as measured by the IMF's International Financial Statistics, have steadily increased since Q1 2009: as of November 2012, total world gold reserves were 31,597.6 tonnes, an increase of 6% from the end of March 2009. At the end of 2012, the global gold reserves per country (central bank) are shown in the following table: Specifically in the fourth quarter, central banks across the globe added 145 tonnes to their reserves. That is the second highest quarterly total since the sector became a source of demand in Q2 2009. The annual total of 534.6 tonnes represented the greatest level of demand since 1964 as the net of central banks adding to their gold reserves was cast wider, reaching Brazil, Paraguay, Iraq and Venezuela. Russia: added 75.0 tonnes throughout 2012 by domestically produced gold Latin America in 2012: Brazil purchased 34.0 tonnes, Paraguay 7.5 tonnes, Mexico 19 tonnes Iraq: their central bank added 24.1 tonnes of gold to its reserves in the second half of the year South Korea added 30 tonnes and the Philippines 33.6 tonnes in 2012 Turkey: the country's reserves went from 195.3 tonnes to 359.6 tonnes in 2012 Please interpret these figures correctly. As shown in the global gold demand trends 2012, both investment and central bank demand were significantly up in 2012. Common wisdom says it correlates in a positive way with the gold price. Although investment demand has been increasing over the past years, the dollar gold price has been trading in a range since September 2011 while it made new highs in euro early Q4 2012 and yen very recently. It is important to understand the complexities in gold price fixing: although an increase in investment or central bank demand reveal strong fundamentals for gold, they do not simply result in a higher price. The 2012 Gold Investing Guide from Casey Research tells you all about ways to leverage gold – from bullion to stocks to ETFs and more. Get it ABSOLUTELY FREE today. Download the detailed report: Global Gold Demand Trends 2012 from the World Gold Council website.

Gold Silver Price Decline Not Over – Monitor Markets For Turnaround Posted: 16 Feb 2013 01:58 PM PST Michael Noonan We often make a distinction between buyers of physical precious metals, [PMs] and buyers of futures, exhorting the former to buy with impunity, and some may see that as cavalier, given how the price for both gold and silver have been in recent decline. The point for buyers of PMs is for both protection and creation of wealth. Protection against insidious central bankers destroying currency-purchasing power, over time, and wealth creation as evidenced by those buying PMs over the past decade and seeing the intrinsic value grow dramatically. Buyers of the physical as less price sensitive and view current declines as opportunity to add more. As an example, we still hold physical silver purchased when price was in the mid-40s. Has the relative value declined? Absolutely. Concerned? Absolutely not. It remains a matter of time when the price of PMs will go dramatically higher, and the concern will not be how much one paid, $1800 or $1600 the ounce for gold, or $45 or $30 the ounce for silver. The concern will be over having any at all. If gold is to go to $3,000, $4,000 $5,000, or wherever, and silver go to $100, $150, or $250, there will be many who will be glad to have paid $2,500 the ounce for gold, and $75 the ounce for silver. How does that compare to $1,800 and /or $45 purchases for physical PMs, at this point? One cannot always time the market, which is why consistent buying over time is strongly recommended, but one can determine whether to be an owner of PMs, or not. The problem moving forward is fear of central bankers changing the rules and precluding the purchase of any PMs by the public, at any price. Death and taxes are touted as the two things one cannot escape, [not always true for the latter], but the certainty of lies and deception by central bankers/planners runs an immediate third place. The handwriting is on the wall, as most in PMs know only too well. We mention this for those on the fence, those waiting for "bargains," [misplaced values, there], and those who have not yet purchased any PMs. Do not wait, do not wait, do not wait! The 2012 Gold Investing Guide from Casey Research tells you all about ways to leverage gold – from bullion to stocks to ETFs and more. Get it ABSOLUTELY FREE today. For futures, while most everyone is of the mind that manipulation is showing a steady hand in PMs markets, that "hand" is losing its grip. It is the charts that show what the market has to say about what those who are participating are saying about their decisions. A not so simple statement, but one that says, watch developing market activity to know what is going on. That is always our purpose. While ongoing efforts are being made to suppress the price of PMs and discourage their purchase, mostly in futures markets, the "Discouragees," [central bankers,] have been net buyers of gold for a few years now, after having been sellers for so long, so do not go by what central bankers say, [often voiced through the puppetmeisters on daily financial "news" programs], go by what they do, only in this area. Ignore them, otherwise. The larger picture for gold is as bullish as ever. We provide two strong facts to confirm why, on the monthly chart. Bullish spacing is referenced as such because it shows the degree of eagerness of buyers in a market. It is measured by noting the last swing high and the last swing low. Typically, markets retest previous swing highs. When buyers are so intent on being long in a market, they do not wait to see if a retest of the last swing high will be successful. Instead, they, [and by "they" we mean smart money participants, or controlling forces], just keep buying breaks, creating a space that is bullish. Another and related measure is the extent of a break, or market "give-back," in a reaction after a rally. Monthly charts are more controlling than the lower time frames, so the information you can glean from them is more reliable and more pertinent. You can see how the current break since the September 2011 high has been relatively shallow when compared to from where the rally began. Despite the "daily grind lower," recently, the larger focus is very strong. Very strong. A trading range is where smart money operates to accumulate or distribute their positions. Controlling market forces require time to acquire positions so as not to disrupt their attempted "sleight of hand" buys/sells during the process, and the TRs are also used to discourage participants from following them. We said last week that $1600 was a possible target, and it was reached on Friday. Will that area hold? "NMT." Need More Time to know that answer. Points 1 and 2 form an upper supply channel line, and a further line down is marked by dashes to show how it extends into the future, well ahead of price activity. Point 3 is the low is between points 1 and 2, and it is from there that a horizontal line, a demand line, is extended lower. It is also dashed to show that it extends into the future well ahead of developing price activity, to be used as a guide to gauge potential support when touched by yet to develop market declines. You can see how the dashed line held the December lows, and now February is retesting it, again. There is no evidence yet of a turnaround, and it does take time for a market to turn. The most interesting aspect of the daily chart happens to be the last bar, Friday's activity. It is a wide range bar lower, a sign of EDM, [Ease of Downward Movement], indicating sellers are in control. The sharply higher volume is a red flag, a point in time for which one needs to pay close attention, moving forward. Remember, sharp volume increases are usually smart money either pushing a market even more, or starting to take the other side in a transfer of risk. Subsequent developing market activity usually indicates which. This volume day prompted a look at intra day behavior to see if any clues can be gleaned. We say smart money always tries to hide their intent, but volume is something they need in order to move or accumulate positions, and they cannot hide that. If smart money sells highs and buys lows, where is the highest volume in this chart? We ask, the chart answers. The position of the close tells us buyers are more than matching the effort of sellers to cause a rally off the low under such heavy selling pressure. The two preceding bars of increased volume may "look" like selling, but it is quite possible that smart money has been buying on the way down, taking everything offered by weak-handed longs selling out and new shorts getting in. If Benjamin Franklin had been a trader, he would surely have said, "Never a bottom- picker be." Bullish spacing exists in silver, just not as strongly. We do point out how the past five months of selling effort has not been impressive, relative to the two month rally prior. It is like an Ali "Rope-A-Dope," taking all the punches from his opponent, but protecting himself so not much damage is inflicted, despite the effort against him. Eventually, he comes out stronger to defeat his now-weakened opposition. We show the same intra-TR channel down, just like in gold. Unlike gold, however, silver's low has held the lows of last December, a small show of relative strength within a negative trading environment. Still, no apparent end is at hand in the decline of futures. The best way to trade a TR? Not to trade it at all, instead, wait for a price breakout and go with it. Why does that work? As mentioned, TRs are how smart money accumulates positions. Once they are done, they then begin the mark-up or mark-down phase, and it will last for some time, once it gets underway. Just as a dashed line in a channel projects into the future for support/resistance, you can see where the failed probe lower, at the end of December/beginning of January acted as support. From there, a horizontal line is drawn. We made it dashed to show that is was extended into the future much earlier than when current price activity has returned to it. Will price hold current lows? No one knows, and anyone who says otherwise is showing an unwise ego trying to be "right," as opposed to being in harmony with the market. Any bottom requires time in order to turn around, and any potential turnaround always needs to be confirmed by price behavior. The increased volume on Friday is a red flag, as it was for gold, but a red flag means a sign or caution, to take note and see how price responds to it. That takes time. Futures players have time, or at least the smart ones are exercising it.

Ladies and gentlemen: we may just have uncovered the actual location of the ultra-secretive JPMorgan gold vault in the city of London. Where is 60 Victoria Embankment, London? Posted: 16 Feb 2013 01:44 PM PST Is This Where The Secret JP Morgan London Gold Vault Is Located?

German Automaker Reportedly Hoarding As Much Physical Silver As it Can Acquire Posted: 16 Feb 2013 10:43 AM PST Last month we posted a report (which subsequently went viral) from an Apple contractor who claimed that Apple has delayed production on the new 27″ iMacs due to an industrial silver shortage in China. New signs of an extremely tight … Continue reading →

George Soros 'makes $1 billion betting against yen' Posted: 16 Feb 2013 06:50 AM PST George Soros 'makes $1 billion betting against yen' The yen lost nearly 20pc against the dollar between November and early February, picking up speed as Japan's new government put pressure on the Bank of Japan to ease monetary policy more aggressively to defeat deflation. Soros Fund Management's internal portfolio, which has been led by Scott Bessent since last summer, holds about 10pc Japanese shares, the Wall Street Journal claimed. Investors including David Einhorn's Greenlight Capital, Daniel Loeb's Third Point LLC and Kyle Bass's Hayman Capital Management LP also made big trading profits by riding the yen down, WSJ said. read more

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