Gold World News Flash |
- Gold Has First Down Day in 6
- Perpetual Assets Interviews David Morgan of Silver-Investor.com
- When Investors Wake up the Gold Price Will Soar
- The Frightening “Stairway To Hell” Gold & Silver Are Climbing
- Gold Market Now Very Close To Issuing A Major “Buy” Signal
- Junior Explorers’ Fortunes Follow those of Senior Miners: Steve Todoruk
- As Syria Distracts, Here’s What's Happening While No One Is Looking
- Gold Silver Ratio
- Citi Asks "How High Can Gold Ultimately Go?"
- Obama to Strike Syria This Saturday?
- Silver and Gold Prices Closed Lower with the Gold Price Closing at $1,412.90
- Big Mistake: the Fed’s Quantitative Teasing
- Silver and Gold Prices Closed Lower with the Gold Price Closing at $1,412.90
- Truth In Humanity Is Dead
- Leverage in Junior Silver Miners
- Leverage in Junior Silver Miners
- Should I Invest in Gold at Current Levels
- Gold Daily and Silver Weekly Charts - White Boys Lost In the Blues
- Gold Daily and Silver Weekly Charts - White Boys Lost In the Blues
- Warlordism In The Mena – The Slide Towards World War III
- A Wartime First
- The Frightening “Stairway To Hell” Gold & Silver Are Climbing
- SocGen Bear Albert Edwards Repeats Call for $10,000 Gold
- Mike Kosares: Currency and debt collapses are bigger threats than Syria
- Is Silver Overbought?
- Tocqueville's Hathaway expects more 'financial repression' in U.S.
- A new contagion is brewing
- Unprecedented Run On Physical Gold Now Set To Accelerate
- The Daily Market Report
- SA gold companies plan to lock out employees – Solidarity
- Gold market in for a wonderful Fall – Embry
- Gold price Syria factor already waning
- Petropavlovsk takes $600m of impairment charges
- Tanzania pledges to end child labour in gold mines
- Will Major Decline of S&P 500 Adversely Affect Gold & Silver Stocks?
- Indian Rupee Crisis Now Even More Comical
- The Dead-Head Fed And “The Only Road to Riches”
- Another Chance Coming to Buy Gold and Silver Stocks
- India’s rupee posts biggest gain in 15 years on currency intervention
- RBI should consider monetising gold: Sharma
- And … We Are Back Links
- India might buy gold from citizens to ease rupee crisis
- Gold Price Falls as "Syria Eases, Tapering Back", Indian Sales Flood Jewelers
- Gold down after 5-day rise as Syria attack concerns ease
- Gold Price is Going Higher Whether or Not FED Tapers
- Gold lower at 1413.00 (-4.30). Silver 24.28 (-0.092). Dollar higher. Euro lower. Stocks called higher. US 10yr 2.79% (+3 bps).
- Gold and Silver Drop as Syrian Military Strike Delayed
- Asia Growth Illusion, Why China May Not Be The Odd One Out?
- Gold Price is Going Higher Whether or Not FED Tapers
- Gold, Silver and Mining Stocks Flash Short Sell Signal
| Posted: 29 Aug 2013 11:00 PM PDT courtesy of DailyFX.com August 29, 2013 03:10 PM Daily Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0 Interested in automated trading with Mirror Trader? Commodity Analysis: “Gold has broken through the zone of consolidation that took place in mid-June and a confluence of trendlines. Focus now shifts to the June high at 1424.” 1424 has been reached as has channel resistance and gold pulled back after a long wick Thursday. These are signs of a top. Commodity Trading Strategy: At resistance so would be looking for signs of a top up here. Would look for support at recent congestion in the 1370s. LEVELS: 1352 1369 1389 1424 1440 1488 original source... |
| Perpetual Assets Interviews David Morgan of Silver-Investor.com Posted: 29 Aug 2013 10:30 PM PDT from silver investor.com: |
| When Investors Wake up the Gold Price Will Soar Posted: 29 Aug 2013 09:00 PM PDT from RonPaulCC2012: |
| The Frightening “Stairway To Hell” Gold & Silver Are Climbing Posted: 29 Aug 2013 08:40 PM PDT from KingWorldNews:
Above this latter resistance would suggest that Silver could accelerate further within this move with the next good resistance levels at $35-37; 50; $37.50; $44.20 and ultimately close to $50. |
| Gold Market Now Very Close To Issuing A Major “Buy” Signal Posted: 29 Aug 2013 08:25 PM PDT  With continued volatility in gold, silver, and the crude oil market, today one of the savviest individuals in the business told King World News that the gold market is now extremely close to issuing a major "buy" signal. He also discussed stocks, and a surprising situation developing in the crude oil market. Below is what Jeffrey Saut, who is Chief Investment Strategist for $360 billion Raymond James, had to say in this powerful interview.This posting includes an audio/video/photo media file: Download Now |
| Junior Explorers’ Fortunes Follow those of Senior Miners: Steve Todoruk Posted: 29 Aug 2013 08:20 PM PDT Key points: Major mining companies may begin to recover following wave of write-offs. Optimism for majors may benefit the juniors as well. by Henry Bonner, Sprott:
The past two months have seen a refreshing move up in the price of gold and silver, and with that the prices of many of the senior mining company stocks as well as many of the top-tier junior explorers. Gold hit its recent low of $1,190 per ounce in the end of June, as did silver. Precious metals producers such as Barrick, Newmont, and Goldcorp also hit their 52-week lows around that time. |
| As Syria Distracts, Here’s What's Happening While No One Is Looking Posted: 29 Aug 2013 07:02 PM PDT From Simon Black, author of Sovereign Man As Syria Distracts, Here's What's Happening While No One Is Looking As everyone is now completely distracted with the looming prospect of yet another illegal war to be waged by the 2009 Nobel Peace Prize recipient, let's look at a few other things going on while no one is looking. Gun control Today, the Obama administration announced fresh measures to restrict the availability of firearms in the Land of the Free. This time around, they want to ban the re-importation of firearms that have been exported from the US to allied nations. They also want to raise the bar on federal background checks. But rather than go through Congress, the Obama administration is simply going to create a new 'rule'. 'Rules' are a type of regulation created directly by agencies within the Executive Branch. They're not laws, but they carry the same weight and effect as laws, complete with criminal and civil penalties. Oftentimes, hundreds of new rules are proposed every single day in the Land of the Free. It's the easiest way for the President to circumvent the Constitution and simply decree whatever he wants. Debt ceiling The US government is once again danger close to defaulting. Bear in mind, at the start of the 'credit crisis' six years ago, US federal debt was just $8.9 trillion. Today, US federal debt stands at $16.738 trillion– 88% higher. Curiously, the statutory debt limit is $16.699 trillion… so the US government already breached its limit 39 billion dollars ago. For the last few months, the Treasury Department has been resorting to 'extraordinary measures' in order to avoid default (i.e. things that you and I would go to jail for). But Treasury Secretary Jack Lew is about out of bullets. So the US could be in danger of defaulting at any moment, especially if an unexpected fiscal 'surprise' should arise… like, uh, war. That's the funny thing about war– they tend to be expensive. And starting another war might very well be the straw that broke the camel's back. No inflation to see here As I write this letter, fast food workers across the US are protesting, demanding higher wages. Crazy. Apparently you can't live on $7.25/hour anymore. Someone needs to tell these people that there's no inflation, and that the Grand Wizard himself, Ben Bernanke, has everything under control. Outright Collapse in many Emerging Markets From India to Mexico, South Africa to Indonesia, emerging market currencies have practically been in freefall in the latest sign that the fiat experiment is drawing to a rapid close. This movement has massive implications for gold– that 'barbarous relic' that people are scooping up in bulk right now as a means to preserve their savings. It's gotten so bad in India that the government there is imposing severe capital controls and gold restrictions– setting the standard for other nations in the future. Is confiscation to follow? Related posts: |
| Posted: 29 Aug 2013 06:22 PM PDT The Gold/Silver ratio is currently just under 58:1. Many have cited that the Gold/Silver ratio should be roughly 16:1. This was an historic level that existed largely prior to 1900 during periods when both gold and silver were ... Read More... |
| Citi Asks "How High Can Gold Ultimately Go?" Posted: 29 Aug 2013 05:37 PM PDT Via Citi FX Technicals, Gold looks to have found a base... Following the multi-year surge in Gold the recent fall took us 14% below the 55 month moving average. That is exactly what happened in 1976 during Gold’s correction after a multi-year move higher. Once that moving average was regained on a monthly close basis the uptrend re-established itself and Gold rallied for the next 3 years. (included in that period was the “supply shock” driven move higher in crude)
The rally in the Equity market after the 1973-1974 “crash” peaked 4 weeks after that corrective low was placed in Gold. SO FAR the trend peak in the stock market (DJIA and S&P) has taken place 5 weeks after the corrective low was posted in Gold. After that peak in late 1976 the Equity market entered into an 18 month long 27% correction. Gold weekly chart- Prior support now good resistance
The pivotal breakdown level on Gold was at $1,522-1,527 and should now be pivotal resistance in this rally. Gold broke below this level during the week of 08 April 2013. It is unlikely that it is a coincidence that that precipitous fall took place in the same week that the S&P 500 regained its 2007 highs.
So, do not be surprised that IF , as we expect Gold heads higher to re-test this $1,522-1,527 area in the weeks/months ahead that the S&P is re-testing the break out point of 1,576 again... ........ We still retain a view that we can see a “low to high” percentage move in this bull market similar to what we saw in the bull market of 1970-1980. If we extract the final leg of that move in December 1979-Jan 1980 which was totally driven by the USSR invasion of Afghanistan almost doubling the price of Gold over 5 weeks then we end up with a target of around $3,500 over the next 3 years or so. The charts below are compelling in that respect, but before we look at them we will indulge in some pontification.
Gold and the US Debt Limit
It is no coincidence in our mind that these two have expanded together over the last 10-12 years As we continue to spend more than we earn and shift that liability to the next generation Gold has shown itself to be a very effective hedge against that policy. The recent “squeeze in Gold” has sent it significant below this “stairway to hell” chart (Debt limit) which has continued higher. As we said earlier, we do not believe that this fall in Gold will be sustainable and expect new highs in the trend eventually. As we also said above , we have retained a long term target of about $3500 for some time on this Gold price based on a comparison of this period and that seen in the 1970’s As we headed towards the last Presidential election there was a considered view in the markets that by the end of President Obama’s 2nd term the debt limit could be as high as $22 trillion. Then we got the sequester, a more rosy economic outlook, tapering talk and all this has been forgotten. For how long? The market dynamics above combined with the change of leadership at the Fed may well be “resurrecting that thought”. If so our 2nd favourite Gold chart comes into play. Gold and the US debt limit (Again): So what would a debt limit of $22 trillion over the next 2-3 years suggest for the Gold price?
How about $3,500
We firmly believe that the Gold correction has “run its course” and that much higher levels will be seen in the years ahead. |
| Obama to Strike Syria This Saturday? Posted: 29 Aug 2013 05:30 PM PDT It is on NWO/IMF agenda, a pre-req to attacking Iran in order to "secure" strategic resources. NWO is crumbling because it's debt backed not gold backed so they are getting desperate, BRICs is the... [[ This is a content summary only. Visit http://FinanceArmageddon.blogspot.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Silver and Gold Prices Closed Lower with the Gold Price Closing at $1,412.90 Posted: 29 Aug 2013 05:21 PM PDT Gold Price Close Today : 1412.90 Change : -5.70 or -0.40% Silver Price Close Today : 24.090 Change : -0.301 or -1.23% Gold Silver Ratio Today : 58.651 Change : 0.490 or 0.84% Silver Gold Ratio Today : 0.01705 Change : -0.000144 or -0.84% Platinum Price Close Today : 1521.50 Change : -17.70 or -1.15% Palladium Price Close Today : 737.75 Change : -8.30 or -1.11% S&P 500 : 1,638.17 Change : 3.21 or 0.20% Dow In GOLD$ : $217.13 Change : $ 1.11 or 0.51% Dow in GOLD oz : 10.504 Change : 0.054 or 0.51% Dow in SILVER oz : 616.06 Change : 8.28 or 1.36% Dow Industrial : 14,840.95 Change : 16.44 or 0.11% US Dollar Index : 81.940 Change : 0.503 or 0.62% 'Twasn't a particularly good day for the silver and GOLD PRICES, but then again not bad enough to make me reach for my wastebasket. Silver lost 30.1 cents to close Comex at 2409c and gold forked over $5.70 to land on $1,412.90. Worse than the Comex closes were the aftermarket slides to $1,408.80 and 23.88. No doubt we are seeing a little correction here of the most recent upmove. A 50% correction in the GOLD PRICE would carry it back to $1,350 (not below!) and the SILVER PRICE to 2210 cents. Friends, markets swing like a clock pendulum. If you can't stand that, better get a government job. It's the same every day. Should the gold price close above $1,425 or silver silver above 2465c, any correction will have been nixed. Randolph Bourne once wrote, "War is the health of the state." That's what bothers me. Having run out of other options to "fix" the economy, will the US administration now avail itself of the ultimate economy fixer, war? Talk about boosting demand! Five day chart argues that the US dollar index bottomed on Tuesday and has one more thrust up in this upleg. That probably will take it through 82.00 resistance. Today the dollar index rallied 50.3 basis points (0.65%) to 81.94. This cuts through the 200 DMA at 81.65, but not through that internal resistance at 82. Not the final word, but argues that the dollar has reversed skyward. That euro was laid low today like a hound that had been eating peaches. It gapped down below its 20 DMA ($1.3330) and nearly reached its 62 DMA ($1.3243), losing 0.73% to $1.3243. A serious confirmation of a downtrend comes when the euro plunges through its 200 DMA, now at $1.3243. That should come quickly. Yen looked like it had been taking castor oil, too. Gapped down, lost 0.62%, and closed at 101.77 cents/Y100. Worse yet, it closed right on the bottom boundary of its uptrend channel and right near the 50 DMA (101.42c). Mercy, what a world where the sorry, scrofulous, scabby US dollar looks good. With the breathtaking speed of a somnolent snail, stocks raced ahead today. Dow gained 16.44 (0.11%) to 14,840.95. S&P500 also blasted forward 3.21 (0.2%, be still, my beating heart!) to 1,638.17. Stocks have drawn near the point where they ought to reverse and turn up. Perhaps they will rally up to, say, 15,000 on the Dow then make one last dive to 14,600. But should it keep on climbing through 15,000, we'd have to conclude a rally hath begun. 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. |
| Big Mistake: the Fed’s Quantitative Teasing Posted: 29 Aug 2013 04:51 PM PDT It's a big mistake. Maybe some might say that the Fed altogether is a mistake itself. But, it's made some big, ugly mistakes that don't bare thinking about and yet there's no understanding why they took those decisions. It's all very well to have attempted to make the US economy improve and turn things around. You can't knock people for that, can you? But, what you can criticize them for is the dismal attempt and shoddy decisions that have been taken. If President Obama is still perusing over who will take over at the Federal Reserve, maybe (just maybe) it's because he has at last realized that anyone that closely resembles Ben Bernanke will just carry on making things worse. They are already pretty bad right now and any worse than $85 billion a month in Quantitative Easing will mean the tide will never turn. The Fed was under the belief that buying up long-term Treasury bonds would keep bond yields down and that this would accelerate growth in the economy. In particular, the Fed had the impression that by doing this anything and everything that was sensitive to fluctuations in interest rates would see a positive impact on such sectors as housing and mortgages as well as consumption of US households. The second reason why the Fed decided to use the bond-buying scheme as a solution was because interest rates that had been at nearly zero since December 2008 were not doing anything much to revamp the economic activity and consumption was in the doldrums (apparently). But, why on earth did they come up with that idea and think that it was going to work? At the time that they took the decision to start playing around in 2011 the economy was doing better than it looks at the present time.
Things were apparently bad back then. They were so bad that the Fed took the decision to start printing money and using unconventional means to boost the economy. But, it looked pretty much as if they had only one possible result that was coming their way with such a target as that. The only thing that could happen with Quantitative Easing was Quantitative Teasing. It was just a teaser to get a few strings pulled and relax the people a little worrying about the economy. But, it relaxed them so much that they ended up dropping off to sleep in the middle of it. Things, they thought, were bad back then. But they are worse today.
The proof of the pudding? Well this pudding is a great big stodgy mess right now. If Quantitative Teasing was put in place to bring us out into the shops and start buying, it really hasn't worked. If it was the Fed's idea to use it because the times were hard, then today things look pretty damn rough, don't they? Dismally abysmal stodgy mess. But, it's not just the Fed that has ended up with custard on its face. The Japanese have too, as the Fed's decision triggered attempts in other central banks around the world. But things have gotten out of control of the Fed as Quantitative Tease has whisked up residential investment. The thirty-year mortgage rate was at 3.35% at the end of 2012. By May 2013 it had risen to 3.51%. Just a few days ago it was at 4.78%. The Fed has no way of controlling that today with the policies that it has put in place for the economy. It looks as if the tease will be here to stay with Quantitative Easing. The only saving grace is that we have to wait (or thank our lucky stars if we are already there) to get to 65 years old and the chance of getting Alzheimer's will double every five years and it can all become part of history, forgotten. Managing Director of the International Monetary Fund Christine Lagarde believes that any exit from easy money will be 'arduous'. She also believes that there needs to be greater coordination between economies in the world if the Federal Reserve does go ahead and taper in the near future and she openly backs swapping agreements between central banks to ride out the storm. But the banks are hardly going to agree to swaps when they don't have the legs to carry them on it; or they would only be able to do so if the Fed continued printing more money. In a statement issued by the IMF she speaks of the fact that some economies will not be able to weather the instability in the markets that exiting unconventional monetary policies will result in. But, it's not just some economies in the world, it will be the Federal Reserve and the Bank of Japan too that won't be able to get over this one. Emerging markets have seen their currencies drop in the past few months as tapering and QE have been on the agenda with Ben Bernanke on a regular basis. Since June 2013, 20 of the most-commonly traded currencies from emerging markets have dropped by an average of nearly 4.5%. The money is being pulled out and the cash is going elsewhere in anticipation of the collapse when tapering begins. But, that is the big question: when? Lagarde spoke of the need for 'clarity' with regard to what the Fed was going to do and when that was going to happen. But, Bernanke is decidedly lacking in clarity and has been for a while on this one. But, as Lagarde stated in an interview on Bloomberg Television: "Yet even with the best of efforts, the dam might leak". Don't you just love imagery and metaphors? They are so ambiguously fitting. So, the dam might leak. Anyone want to stick their finger somewhere to block the leakage? Suggestions even? There is almost certainly the benefit of going down in the annals of history also like Hans Brinker, the little boy the poked his finger in the dyke and saved Holland: "Not a leak can show itself anywhere either in its politics, honor, or public safety, that a million fingers are not ready to stop it, at any cost". So very true, isn't it?US Bankrupt! | Septaper Will Open Floodgates | How Sinister is the State? | Food: Walking the Breadline | Obama NOT Worst President in reply to Obama: Worst President in US History? New Revelations: NSA and XKeyscore Program | Obama's Corporate Grand Bargain Death of the Dollar | Joseph Stiglitz was Right: Suicide | China Injects Cash in Bid to Improve Liquidity Technical Analysis: Bear Expanding Triangle | Bull Expanding Triangle | Bull Falling Wedge | Bear Rising Wedge | High & Tight Flag
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| Silver and Gold Prices Closed Lower with the Gold Price Closing at $1,412.90 Posted: 29 Aug 2013 04:44 PM PDT Gold Price Close Today : 1412.90 Change : -5.70 or -0.40% Silver Price Close Today : 24.090 Change : -0.301 or -1.23% Gold Silver Ratio Today : 58.651 Change : 0.490 or 0.84% Silver Gold Ratio Today : 0.01705 Change : -0.000144 or -0.84% Platinum Price Close Today : 1521.50 Change : -17.70 or -1.15% Palladium Price Close Today : 737.75 Change : -8.30 or -1.11% S&P 500 : 1,638.17 Change : 3.21 or 0.20% Dow In GOLD$ : $217.13 Change : $ 1.11 or 0.51% Dow in GOLD oz : 10.504 Change : 0.054 or 0.51% Dow in SILVER oz : 616.06 Change : 8.28 or 1.36% Dow Industrial : 14,840.95 Change : 16.44 or 0.11% US Dollar Index : 81.940 Change : 0.503 or 0.62% 'Twasn't a particularly good day for the silver and GOLD PRICES, but then again not bad enough to make me reach for my wastebasket. Silver lost 30.1 cents to close Comex at 2409c and gold forked over $5.70 to land on $1,412.90. Worse than the Comex closes were the aftermarket slides to $1,408.80 and 23.88. No doubt we are seeing a little correction here of the most recent upmove. A 50% correction in the GOLD PRICE would carry it back to $1,350 (not below!) and the SILVER PRICE to 2210 cents. Friends, markets swing like a clock pendulum. If you can't stand that, better get a government job. It's the same every day. Should the gold price close above $1,425 or silver silver above 2465c, any correction will have been nixed. Randolph Bourne once wrote, "War is the health of the state." That's what bothers me. Having run out of other options to "fix" the economy, will the US administration now avail itself of the ultimate economy fixer, war? Talk about boosting demand! Five day chart argues that the US dollar index bottomed on Tuesday and has one more thrust up in this upleg. That probably will take it through 82.00 resistance. Today the dollar index rallied 50.3 basis points (0.65%) to 81.94. This cuts through the 200 DMA at 81.65, but not through that internal resistance at 82. Not the final word, but argues that the dollar has reversed skyward. That euro was laid low today like a hound that had been eating peaches. It gapped down below its 20 DMA ($1.3330) and nearly reached its 62 DMA ($1.3243), losing 0.73% to $1.3243. A serious confirmation of a downtrend comes when the euro plunges through its 200 DMA, now at $1.3243. That should come quickly. Yen looked like it had been taking castor oil, too. Gapped down, lost 0.62%, and closed at 101.77 cents/Y100. Worse yet, it closed right on the bottom boundary of its uptrend channel and right near the 50 DMA (101.42c). Mercy, what a world where the sorry, scrofulous, scabby US dollar looks good. With the breathtaking speed of a somnolent snail, stocks raced ahead today. Dow gained 16.44 (0.11%) to 14,840.95. S&P500 also blasted forward 3.21 (0.2%, be still, my beating heart!) to 1,638.17. Stocks have drawn near the point where they ought to reverse and turn up. Perhaps they will rally up to, say, 15,000 on the Dow then make one last dive to 14,600. But should it keep on climbing through 15,000, we'd have to conclude a rally hath begun. 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. |
| Posted: 29 Aug 2013 04:05 PM PDT My Dear Extended Family, Truth in humanity is dead. Certifiable nuts are on the loose with their evil ways and means. The lies on all sides of today’s market and politics have risen to levels never before witnessed. World War III is available to any high placed nut that wants to start it. Gold is... Read more » The post Truth In Humanity Is Dead appeared first on Jim Sinclair's Mineset. |
| Leverage in Junior Silver Miners Posted: 29 Aug 2013 03:07 PM PDT Silver mining ETF engineer explains his choice of miner stocks... ANDREW CHANIN is co-founder and chief operating officer of PureFunds, which aims to be first in the market with innovative exchange-traded funds. Speaking here to The Gold Report about PureFunds' ISE Junior Silver ETF, Andrew Chanin explains what he believes a mining stock needs to give leverage to the silver price... The Gold Report: In August, the most active contract in the silver futures market had its best week in five years, and your PureFunds ISE Junior Silver Exchange-Traded Fund (SILJ) traded higher. What should silver investors expect through the end of 2013? Andrew Chanin: In one word: volatility. However, I think the long-term trend for silver is an upward pattern. The fundamentals for silver and other precious metals look very bullish for stock prices in the coming months. TGR: You started this silver junior exchange-traded fund (ETF) in late November 2012. Why then? Why silver? Andrew Chanin: My partner Paul Zimnisky and I have wanted to launch a junior silver ETF for a long time. We see silver as an essential commodity for many purposes. It has incredible industrial uses as a conductor of heat and electricity. It has many medical and surgical applications, as well. On top of that, we've seen an undeniable increase in investment demand for silver. I like to look at the demand for silver as a pie chart, in which many of the wedges of the pie – industrial investment, jewelry, monetary – are fighting to take up more of the total supply representing the whole pie chart. However, it's very difficult to meet increasing demand when you don't have increasing supply. For example, silver mining production in Mexico in the first half of 2013 looks to be down 10%, and Mexico is as essential to the silver production and supply equation as any region. In addition, many producers were operating at a loss when their cost of getting an ounce of silver out of the ground was higher than the prevailing spot price of silver. These issues paint a very ominous supply-side picture, while we continue to see record demand for US silver eagle coins. In India, demand increased massively between April and July. This shift in the supply-demand curve makes it appear that demand may sharply outpace supply in the near term and beyond. TGR: Do those two demand drivers – investment and industrial – make buying silver the trade right now? Andrew Chanin: I believe strongly in silver. Precious metals tend to correlate with each other, so it's important to look at the sector as a whole. Historically, silver has tended to be a beta play on gold. We are seeing that as gold prices move up, silver tends to move up more. It's the same on the way down. In addition, the silver miner stocks tend to be a beta trade on the underlying metal. Typically, the miners will move even more drastically than the metal price. Then, within the mining space, the junior names tend to have a higher beta play than the more senior producers. Although the gold-silver ratio had been at near-term highs, I believe we are starting to see that spread collapse a little bit and silver will continue to gain serious ground. TGR: Why did you choose to build an ETF around junior silver companies instead of large-cap silver miners or midtier producers? Andrew Chanin: First off, ETFs are like that line in the movie "Talladega Nights": "If you're not first, you're last." We did not want to be second to market with any of our fund ideas; every element in our suite of products is the first of its kind. When we looked at the precious metals mining space, we saw several gold equity plays. We wanted to create the first junior silver mining fund. People who are fans of the junior mining space are there because they get that higher beta play. If investors believe silver prices are on the rise, we thought the best vehicle would be giving them access to a basket of junior silver stocks. But the movement, the volatility and the risk-reward profiles weren't the only reasons that we were interested in the junior space. People who invest in mining companies have a higher risk-reward profile than others. They, and the companies they invest in, run different types of risk. There is company risk where management might not perform or a crisis hits the company, reducing its market cap. There also is nationalization risk, where a country takes over a producing mine. We wanted to provide a way for investors to get a basket of these companies to diversify or mitigate some of that risk. You can't eliminate company risk, but you can try to protect against the amount of risk any one company contributes to the risk profile of your entire investment by diversifying. By trading a basket of junior mining companies, you don't need to pick that one superstar company; instead, you have a group of companies that should track the industry as a whole. TGR: Tell us about the index that your junior silver ETF tracks. Andrew Chanin: The index was created by the International Securities Exchange (ISE) and contains between 20 and 40 junior silver companies. When the index was created, the ISE looked at certain volumes and Dollar values traded on a daily basis by the companies to ensure ample liquidity for the fund. On top of that, ISE wanted to see market caps between $50 million ($50M) and $2 billion. That ceiling made sense, being that junior companies are typically explorers or if they are in production it's on a low scale. We wanted junior companies so investors would be able to take advantage of the many different aspects that they offer. For example, juniors could be takeover candidates, they could have the next great discovery or they could partner with senior producers to put the mines into production or grow organically. TGR: You and Paul helped determine the companies in this index, correct? Andrew Chanin: We wanted to because it's an area that we track very closely, but due to compliance rules, there had to be a separation, so we did not pick the stocks. TGR: In comparison to other ETFs, the ISE Junior Silver ETF has done well. Andrew Chanin: Yes. In July 2013, for all US listed ETFs, excluding leveraged ETFs and inverse ETFs, the ISE Junior Silver ETF was the second-best performing ETF. More people have been picking up on it due to that performance, and those gains didn't just sell off at the end of the month. There has been follow-through. TGR: Which companies do you believe have catalysts that will help the ETF continue its run? Andrew Chanin: Some of these catalysts apply to all the companies because their prices have been so abused. Across the board, these companies have been oversold, so many will benefit from an increased price in silver going forward. TGR: There are not many pure silver plays in the junior mining space. How important to the performance of your fund are the other commodities these companies are producing? Andrew Chanin: Primary silver companies are very rare because there aren't many primary silver deposits. Typically, zinc, copper, gold and lead tend to be byproducts of silver mining. Some of the companies in the ISE Junior Silver ETF have offtake agreements, and the sale of these other commodities can help their cash situation. The index is constructed to remove or decrease the weighting of companies as their operations become less silver-reliant and to increase the weighting for companies that acquire more silver-heavy assets or begin to produce higher quantities and percentages of silver. The companies in the ISE Junior Silver ETF aren't completely insulated from the costs of some of those byproducts, however the index attempts to give higher weighting to those companies that are more focused on silver. TGR: Some of the better names in the junior mining space have seen dramatic share price increases this month. Some have seen increases greater than 50%. Has the "brand-name" section of the junior mining space turned the corner? Andrew Chanin: I believe that we have seen a turnaround. It was due, in part, to the fact that some of these names had been so badly punished, but even more to the fact that the spot price had dropped so low. Only a handful of companies can produce profitably with silver prices below $20 per ounce. At that point, you have to cut costs. You have to shut down mines, and when you shut down mines, you remove silver supply. Removing supply affects the whole supply-demand chart. We were seeing an artificially low price for silver, by which I mean a price lower than what the supply-demand structure would suggest. These artificially low silver prices caused the sharp decline in silver miners, leading to names trading to all-time or multiyear lows; silver's rally back over $20 helped these oversold names come back with such vengeance in recent weeks. If spot silver prices can recover to where they were at the start of 2013, these names should benefit. TGR: What other mining-related ETFs are in the PureFunds stable? Andrew Chanin: We launched the first Diamond/Gemstone ETF (GEMS), a global equity basket. It contains roughly 60% diamond and gemstone explorers and producers; the remaining 40% of the companies are on the retail side. Diamonds go through a lot on the way to becoming an end product, so it made sense to have a global, diversified basket of companies mining for diamonds, as well as being positioned to take advantage of the growing demand in India and China, where the idea of giving diamonds as an engagement gift is spreading for the first time. We thought that having a mix of retailers in the fund would deliver the best picture of what diamonds are doing as a commodity. Our third ETF is the Mining Service ETF (MSSX). It is a basket of global companies that provide services or equipment to mining companies. We are very proud of this fund. Again, it is the first of its kind. There are five or so oil service/oil equipment ETFs, but guess how many mining service ETFs there were? Zero. We wanted to give the same type of exposure available in the oil industry to companies operating in the mining sector. These companies have some correlation to the metals that their equipment or their services are geared to, but they don't have the same volatility and correlation as a miner, producer or explorer would have. These companies typically get cash up front, whereas a mine might take 5 to 10 years to produce a revenue stream. They get paid on as-you-go payment plans, so their balance sheets and revenue streams are vastly different from mining companies. They do, however, benefit when spot prices go up because when that happens, companies tend to use their services more as they explore, examine more drill results and look for new properties to expand their reserves and asset bases. The other thing that makes mining services and equipment so interesting is that these companies are usually under the radar. There aren't many pure play companies in the U.S, and they also tend to keep their heads down and make money. They haven't had to go out and raise money like the mining companies. They haven't had to hire investment banks to do research reports and talk the story up. As a result, they've been able to maintain interesting cash positions, and many have paid dividends. This is a way to get exposure to the mining industry and get a dividend. TGR: You recently declared the first quarterly distributions from the Diamond/Gemstone and the Mining Service ETFs. Were they above or below estimates? Andrew Chanin: They were in line with our estimates. TGR: Are you planning any more mining ETFs? Andrew Chanin: Right now, our passion is the funds that we have launched. We would like to get more follow through on them before bringing any more to market. TGR: Do you have any parting thoughts on silver? Andrew Chanin: The last time the financial minds met in Washington, D.C., we saw a drastic selloff in metal prices. We expect that again in the short term, but there are so many different fundamentals in play. In brief, we believe the silver price, especially in relation to gold, will be incredible. We think that exposure to silver is just as important as exposure to gold, not only for protection, but also through the junior miners as leverage to that investment. TGR: Andrew, thank you for your time and insights. |
| Leverage in Junior Silver Miners Posted: 29 Aug 2013 03:07 PM PDT Silver mining ETF engineer explains his choice of miner stocks... ANDREW CHANIN is co-founder and chief operating officer of PureFunds, which aims to be first in the market with innovative exchange-traded funds. Speaking here to The Gold Report about PureFunds' ISE Junior Silver ETF, Andrew Chanin explains what he believes a mining stock needs to give leverage to the silver price... The Gold Report: In August, the most active contract in the silver futures market had its best week in five years, and your PureFunds ISE Junior Silver Exchange-Traded Fund (SILJ) traded higher. What should silver investors expect through the end of 2013? Andrew Chanin: In one word: volatility. However, I think the long-term trend for silver is an upward pattern. The fundamentals for silver and other precious metals look very bullish for stock prices in the coming months. TGR: You started this silver junior exchange-traded fund (ETF) in late November 2012. Why then? Why silver? Andrew Chanin: My partner Paul Zimnisky and I have wanted to launch a junior silver ETF for a long time. We see silver as an essential commodity for many purposes. It has incredible industrial uses as a conductor of heat and electricity. It has many medical and surgical applications, as well. On top of that, we've seen an undeniable increase in investment demand for silver. I like to look at the demand for silver as a pie chart, in which many of the wedges of the pie – industrial investment, jewelry, monetary – are fighting to take up more of the total supply representing the whole pie chart. However, it's very difficult to meet increasing demand when you don't have increasing supply. For example, silver mining production in Mexico in the first half of 2013 looks to be down 10%, and Mexico is as essential to the silver production and supply equation as any region. In addition, many producers were operating at a loss when their cost of getting an ounce of silver out of the ground was higher than the prevailing spot price of silver. These issues paint a very ominous supply-side picture, while we continue to see record demand for US silver eagle coins. In India, demand increased massively between April and July. This shift in the supply-demand curve makes it appear that demand may sharply outpace supply in the near term and beyond. TGR: Do those two demand drivers – investment and industrial – make buying silver the trade right now? Andrew Chanin: I believe strongly in silver. Precious metals tend to correlate with each other, so it's important to look at the sector as a whole. Historically, silver has tended to be a beta play on gold. We are seeing that as gold prices move up, silver tends to move up more. It's the same on the way down. In addition, the silver miner stocks tend to be a beta trade on the underlying metal. Typically, the miners will move even more drastically than the metal price. Then, within the mining space, the junior names tend to have a higher beta play than the more senior producers. Although the gold-silver ratio had been at near-term highs, I believe we are starting to see that spread collapse a little bit and silver will continue to gain serious ground. TGR: Why did you choose to build an ETF around junior silver companies instead of large-cap silver miners or midtier producers? Andrew Chanin: First off, ETFs are like that line in the movie "Talladega Nights": "If you're not first, you're last." We did not want to be second to market with any of our fund ideas; every element in our suite of products is the first of its kind. When we looked at the precious metals mining space, we saw several gold equity plays. We wanted to create the first junior silver mining fund. People who are fans of the junior mining space are there because they get that higher beta play. If investors believe silver prices are on the rise, we thought the best vehicle would be giving them access to a basket of junior silver stocks. But the movement, the volatility and the risk-reward profiles weren't the only reasons that we were interested in the junior space. People who invest in mining companies have a higher risk-reward profile than others. They, and the companies they invest in, run different types of risk. There is company risk where management might not perform or a crisis hits the company, reducing its market cap. There also is nationalization risk, where a country takes over a producing mine. We wanted to provide a way for investors to get a basket of these companies to diversify or mitigate some of that risk. You can't eliminate company risk, but you can try to protect against the amount of risk any one company contributes to the risk profile of your entire investment by diversifying. By trading a basket of junior mining companies, you don't need to pick that one superstar company; instead, you have a group of companies that should track the industry as a whole. TGR: Tell us about the index that your junior silver ETF tracks. Andrew Chanin: The index was created by the International Securities Exchange (ISE) and contains between 20 and 40 junior silver companies. When the index was created, the ISE looked at certain volumes and Dollar values traded on a daily basis by the companies to ensure ample liquidity for the fund. On top of that, ISE wanted to see market caps between $50 million ($50M) and $2 billion. That ceiling made sense, being that junior companies are typically explorers or if they are in production it's on a low scale. We wanted junior companies so investors would be able to take advantage of the many different aspects that they offer. For example, juniors could be takeover candidates, they could have the next great discovery or they could partner with senior producers to put the mines into production or grow organically. TGR: You and Paul helped determine the companies in this index, correct? Andrew Chanin: We wanted to because it's an area that we track very closely, but due to compliance rules, there had to be a separation, so we did not pick the stocks. TGR: In comparison to other ETFs, the ISE Junior Silver ETF has done well. Andrew Chanin: Yes. In July 2013, for all US listed ETFs, excluding leveraged ETFs and inverse ETFs, the ISE Junior Silver ETF was the second-best performing ETF. More people have been picking up on it due to that performance, and those gains didn't just sell off at the end of the month. There has been follow-through. TGR: Which companies do you believe have catalysts that will help the ETF continue its run? Andrew Chanin: Some of these catalysts apply to all the companies because their prices have been so abused. Across the board, these companies have been oversold, so many will benefit from an increased price in silver going forward. TGR: There are not many pure silver plays in the junior mining space. How important to the performance of your fund are the other commodities these companies are producing? Andrew Chanin: Primary silver companies are very rare because there aren't many primary silver deposits. Typically, zinc, copper, gold and lead tend to be byproducts of silver mining. Some of the companies in the ISE Junior Silver ETF have offtake agreements, and the sale of these other commodities can help their cash situation. The index is constructed to remove or decrease the weighting of companies as their operations become less silver-reliant and to increase the weighting for companies that acquire more silver-heavy assets or begin to produce higher quantities and percentages of silver. The companies in the ISE Junior Silver ETF aren't completely insulated from the costs of some of those byproducts, however the index attempts to give higher weighting to those companies that are more focused on silver. TGR: Some of the better names in the junior mining space have seen dramatic share price increases this month. Some have seen increases greater than 50%. Has the "brand-name" section of the junior mining space turned the corner? Andrew Chanin: I believe that we have seen a turnaround. It was due, in part, to the fact that some of these names had been so badly punished, but even more to the fact that the spot price had dropped so low. Only a handful of companies can produce profitably with silver prices below $20 per ounce. At that point, you have to cut costs. You have to shut down mines, and when you shut down mines, you remove silver supply. Removing supply affects the whole supply-demand chart. We were seeing an artificially low price for silver, by which I mean a price lower than what the supply-demand structure would suggest. These artificially low silver prices caused the sharp decline in silver miners, leading to names trading to all-time or multiyear lows; silver's rally back over $20 helped these oversold names come back with such vengeance in recent weeks. If spot silver prices can recover to where they were at the start of 2013, these names should benefit. TGR: What other mining-related ETFs are in the PureFunds stable? Andrew Chanin: We launched the first Diamond/Gemstone ETF (GEMS), a global equity basket. It contains roughly 60% diamond and gemstone explorers and producers; the remaining 40% of the companies are on the retail side. Diamonds go through a lot on the way to becoming an end product, so it made sense to have a global, diversified basket of companies mining for diamonds, as well as being positioned to take advantage of the growing demand in India and China, where the idea of giving diamonds as an engagement gift is spreading for the first time. We thought that having a mix of retailers in the fund would deliver the best picture of what diamonds are doing as a commodity. Our third ETF is the Mining Service ETF (MSSX). It is a basket of global companies that provide services or equipment to mining companies. We are very proud of this fund. Again, it is the first of its kind. There are five or so oil service/oil equipment ETFs, but guess how many mining service ETFs there were? Zero. We wanted to give the same type of exposure available in the oil industry to companies operating in the mining sector. These companies have some correlation to the metals that their equipment or their services are geared to, but they don't have the same volatility and correlation as a miner, producer or explorer would have. These companies typically get cash up front, whereas a mine might take 5 to 10 years to produce a revenue stream. They get paid on as-you-go payment plans, so their balance sheets and revenue streams are vastly different from mining companies. They do, however, benefit when spot prices go up because when that happens, companies tend to use their services more as they explore, examine more drill results and look for new properties to expand their reserves and asset bases. The other thing that makes mining services and equipment so interesting is that these companies are usually under the radar. There aren't many pure play companies in the U.S, and they also tend to keep their heads down and make money. They haven't had to go out and raise money like the mining companies. They haven't had to hire investment banks to do research reports and talk the story up. As a result, they've been able to maintain interesting cash positions, and many have paid dividends. This is a way to get exposure to the mining industry and get a dividend. TGR: You recently declared the first quarterly distributions from the Diamond/Gemstone and the Mining Service ETFs. Were they above or below estimates? Andrew Chanin: They were in line with our estimates. TGR: Are you planning any more mining ETFs? Andrew Chanin: Right now, our passion is the funds that we have launched. We would like to get more follow through on them before bringing any more to market. TGR: Do you have any parting thoughts on silver? Andrew Chanin: The last time the financial minds met in Washington, D.C., we saw a drastic selloff in metal prices. We expect that again in the short term, but there are so many different fundamentals in play. In brief, we believe the silver price, especially in relation to gold, will be incredible. We think that exposure to silver is just as important as exposure to gold, not only for protection, but also through the junior miners as leverage to that investment. TGR: Andrew, thank you for your time and insights. |
| Should I Invest in Gold at Current Levels Posted: 29 Aug 2013 01:40 PM PDT Gold started on a promising note at $1693 per ounce in January this year. However, as the months passed by, some of the sanctity associated with the yellow metal began to diminish, and it reached a low of $1192 on June 28 this year. Since then, gold prices have shown a slow and steady recovery, but many investors are a bit skeptical of having the yellow metal in their portfolio. With the current levels of $1419 per ounce, investors are not sure whether gold will continue its recovery to reach where it started from this year or tank as a result of the recovery in the stock markets worldwide. Any discussion on the future of gold prices should include the economic scenario in India – the largest consumer of gold. In India, the consumers' appetite for gold has been so insatiable that the government has had to put curbs on the import of gold. Currently, Indian rupee is at the weakest levels vis-Ã -vis the American dollar. The decline in the value of rupee has pushed gold prices to a 9-month high. On the whole, gold prices will tend to rise in the coming months until the fag end of the year on account of the approaching festive and wedding season. Considering the current scenario, it is highly likely that as the demand of gold in India increases, it will have an effect on the supply of gold, leading to an increase in its prices. Another factor that may have an impact on the gold prices is the current situation in Syria. With the possibility of US military action rising every day, investors are looking at gold as a safe haven. Staying true to its reputation of being an asset class to bank on during economic and political crisis, gold is offering an optimistic outlook for the investors in these times of gloom. Investing in gold at the current levels can help investors in building up a solid portfolio. Considering the fact that the levels that we saw in the beginning of this year are a long way ahead, there is a good reason to be bullish on the yellow metal. While gold has in it to provide significant gains to investors in the coming time, those who wish to use it as a hedge against investment can also benefit from it in the long run. Despite our positive outlook on gold, we will still advise you to exercise discretion before investing in gold. This is a guest post from Profit Confidential. |
| Gold Daily and Silver Weekly Charts - White Boys Lost In the Blues Posted: 29 Aug 2013 01:35 PM PDT |
| Gold Daily and Silver Weekly Charts - White Boys Lost In the Blues Posted: 29 Aug 2013 01:35 PM PDT |
| Warlordism In The Mena – The Slide Towards World War III Posted: 29 Aug 2013 12:52 PM PDT NO LONGER A FANTASY For plenty of commentators like Michael Snyder of the Economic Collapse Blog, August 29, there are so many reasons to believe “punishing Syria” has the potential to spin out of control and spark a large scale international conflict, that we should be amazed TV anchorpeople in the so-called consumer democracies snigger to us about having to wait “just a little longer” for the missile or bombing fun. Before running the endless-brainless publicity or football talk. |
| Posted: 29 Aug 2013 12:34 PM PDT August 29, 2013
The Syrian war drums are beating a bit more quietly this morning… and they’re not keeping the same beat. On the one hand, the president says he still hasn’t made up his mind. On the other hand, a top presidential aide says, “We’re past the point of no return.” Clarity. In the meantime, we’re still teasing out the impact ordinary Americans are most likely to see once the dogs of war are unleashed.
The Syrian Electronic Army took down The New York Times website for a second straight day yesterday. For its part, the SEA said in an email to Reuters that “Everything will be possible if the U.S. begins hostile military actions against Syria… Our targets will be different.” As for that Iranian assistance? “Cyber experts,” Reuters goes on, “have said that Iran increased its cyber capabilities after the United States used the Stuxnet virus to attack Tehran’s nuclear program.” As noted in our virtual pages last Friday, Iranian hackers have taken down the websites of nearly every major U.S. bank. “Banks,” says Reuters, “have spent millions of dollars to fend off the hackers and restore service.”
Venture capital firms are falling over each other to fund promising “InfoSec” firms. On Monday, a firm called HyTrust, which does security for so-called cloud computing, locked up $18.5 million in funding. That’s only the latest in a string of deals going back the last 20 months. “The cybersecurity market is in a renaissance period that should enable the good guys to leapfrog the bad guys in prevention and detection capabilities,” Greg Fitzgerald tells USA Today. He’s chief marketing officer at a security start-up called Cylance.
President Obama’s 2014 budget proposal boosts information technology spending by 2%, to $82 billion. Of that total, $13 billion is devoted to cybersecurity — split among the Pentagon, Homeland Security, even the Commerce and Justice departments. And let’s not forget the National Security Agency.
So he told the House Armed Services Committee last March. Given the NSA’s penchant for secrecy, we’re learning about it only this week from the transparency advocates at the Federation of American Scientists…. Heh. Alexander claimed the U.S. government maintains a “deep, persistent and pervasive presence on adversary [computer] networks. “We maintain that access, gain deep understanding of the adversary and develop offensive capabilities through the advanced skills and tradecraft of our analysts, operators and developers. When authorized to deliver offensive cyber effects, our technological and operational superiority delivers unparalleled effects against our adversaries’ systems.” No doubt. As we’ve mentioned the last several days, the Pentagon is due to issue $110 million in new contracts on Sept. 1 under a cybersecurity program with the rather unimaginative name of “Plan X.” It’s the first wave in a $16.1 billion tsunami of federal cash. Our Byron King has drawn upon his extensive contacts in government and the defense industry to identify seven companies set to soar once the announcement is made. Byron describes them as the Lockheeds and Raytheons of tomorrow, capable of turning a modest $100 investment into as much as $5 million. Note well: Sept. 1 is this Sunday. If you even think you’re interested in this opportunity, time is of the essence.
Blue chips are lagging the small caps, with the Dow up a half percent and the Russell 2000 up more than 1%.
Whatever. We don’t even think GDP is a meaningful statistic, much less one that’s measured honestly. But because it can move markets, we nonetheless take note.
“The gold price has exploded in India since the low hit on June 28,” Sprott Asset Management’s David Franklin informs us, “increasing a whopping 30% in the span of only two months!”
As we’ve chronicled much of this year, both the rupee and India’s balance of trade are cratering. The Indian government has tried to fight back in part by taxing imports on gold at a rate that’s been raised five times in the last 18 months. “With capital leaving the country, investors fleeing the stock market and dumping Indian bonds,” says Mr. Franklin, “the only asset that has protected capital has been gold” — even if imports are now taxed at 10%.
“That’s cool. What’s cooler?” Wired asks. “They used 3-D printing to create it.” The injector is part of the rocket engine that releases hydrogen fuel and liquid oxygen into the combustion chamber, where the thrust is created. The 3-D-printed injector withstood 20,000 pounds of thrust, nearly 10 times more than any printed part in the past. NASA has high hopes for 3-D printing: “In addition to simply reducing the costs of rocket engine components,” says Wired, “the agency is also looking to use the technique to print tools on the International Space Station.” Another idea being explored by NASA is food printers, not unlike the replicators on Star Trek that provided food and water on board the starships. Also, the potential ability to print parts onboard as needed hasn’t gone unnoticed, either. [Ed. Note: "Tea. Earl Gray. Hot" is still a ways off, but it's the analogy Chris Anderson uses in his book Makers, all about the new industrial revolution. We've identified four companies set to make the biggest early gains as this $8.4 billion industry moves to the next level. For our comprehensive briefing, look here.]
“Russia’s Security Council,” according to an article at RT’s website, “is reportedly considering a ban on supplying the U.S. with powerful RD-180 rocket engines for military communications satellites as Russia focuses on building its own new space launch center, Vostochny, in the Far East.” Yep, NASA’s getting rocket engines from the Russkies.
“Sorry, guys, we need these for ourselves…” “Previously,” the article goes on, “Moscow has not objected to the fact that America’s Atlas V boosters, rigged with Russian rocket engines, deliver advanced space armament systems into orbit. If a ban were to be put in place, however, engine delivery to the U.S. would probably stop altogether, beginning in 2015.” Now you know…
“You stated, ‘Your case would be more credible if you got the facts right. Home Depot’s salaried workforce totals 21,000, per USA Today. Presumably, not all of the remaining 319,000 are part time; there are surely many who are full-time hourly and, thus, entitled to overtime.’ “Seems to be pure conjecture on your part. You might do a reality check with Home Depot part-time employees (and the former full-time employees that have been forced down to part-time, and not the corporate PR flacks). Home Depot keeps part-time employees to 15-25 hours per week and has a strong policy against overtime. “As The 5 has written, quarterly corporate profits are lackluster. Home Depot and many other companies are engineering profits by transforming their workforce to part time, temporary equivalent, and benefit free. Ultimately, this will crush the consumer and the economy. “And please, do not use anything from the Fed to justify your response. You and most of those with a brain have figured out that the Fed is simply another propaganda machine. Blaming Obamacare is a canard. The truth is American workers now have negative income growth, and that ain’t good.”
[That's why we said they were "entitled" to overtime. But go on...] “If you have to stay over to service a customer today, you have to cut that time tomorrow, NOT by coming in a little later or being able to leave earlier, but cutting it on your lunch time, sit around and do nothing for whatever time you were over the day before. In the store where my spouse works (12 years seniority), it has already come down from Georgia (Home Depot headquarters) not to hire any more full-time employees, and all part timers will be limited to no more than 27 hours due to Obamacare, and I suspect to make sure the ‘zombies’ get their fat bonuses. “They also are on a campaign to eliminate all employees over 50 or making more than slightly above minimum wage. This, of course, is not ‘official,’ but all you have to do is look around and watch them disappearing one by one and it doesn’t take a college degree to figure it out. “Breaks are mainly a thing of the past, lunchtime is when they happen to feel they can spare you for the 30 minutes, can be up to a half hour before you leave from an eight-hour shift. For the older worker, ‘write-ups’ are a daily threat, most of which are trumped up. Get enough and then they have ‘reason’ to fire you and replace you with an $8.50 per hour person. “At least my spouse will soon be 62 and can get out of there. *IF* they aren’t fired first, at least Obamacare will be available IF we can afford it. Thank you, Mr. Obama, for spreading the poverty around!!”
“Most understand the costs of labor and materials that are needed, but hardly anyone understands the indirect costs, of which a large percentage are required to follow the regulations from the federal, state and local governments. While there, please note the taxes that are paid every week including the 7.5 excise tax for each dollar of wages, the unemployment tax, the necessary business licenses that must be renewed every year, the insurance to protect the company from all lawsuits, the annual tax on assets, the rent, which includes a portion paid to the local government for real estate taxes, and last, but not least, the benefits paid for every employee, plus others I’m not recalling at the moment. “These are all costs that every business owner must pay for every day. People like to put the highly recognized names in the limelight, but the fact is most companies will pay all of these costs and never make a profit — a small point most liberals and the MSM fail to mention. “Now comes the time where people want the government to tell certain companies they must pay their employees more than one of their competitors pays. To some extent, this is happening today, by the government selecting different companies to apply regulations to that are not imposed on others — selective evolution, you might say. In the end, the consumer, the public, is the ultimate loser. Just ask the people who lived in the Soviet Union during the last half of the 20th century how things were.” The 5: An interesting debate that’s gotten going here… Best regards, Dave Gonigam P.S. “3-D printing is about to do to product manufacturing what the Internet did to music distribution.” Gee, where’ve we heard that before? This time it comes from Brian Garret, chief technology officer and co-founder of 3D Hubs in an interview with Forbes. “And,” Garrett added, “we’re here to facilitate this revolution.” “According to their press release,” Forbes writes of Garret’s startup, “3-D printer owners use their device less than 10 hours per week, and 3D Hubs plans on taking the remaining 95% of that idle time.” The vision is to create an interconnected network of 3-D “Hubs,” each offering 3-D printing services in their own community. They already have the largest network of 540 printing locations across the Western world. Each Hub decides how much it wants to earn and sets its own prices. 3D Hubs offers an automatic 3-D model repair check for each order using software that makes sure each uploaded model is printable and automatically repairs any problems if necessary. They also process all orders and collect all payments. They make money by adding a 15% commission on top of the price given by the Hub. Well, we said this day would come. While 3D Hubs helps to crack the mainstream 3-D printing code, you still have an opportunity to invest in those who will reap the biggest benefits. Click here to get in on the action. |
| The Frightening “Stairway To Hell” Gold & Silver Are Climbing Posted: 29 Aug 2013 12:04 PM PDT  To follow up on yesterday's viral interview with King World News, today top Citi analyst Tom Fitzpatrick sent KWN 4 amazing gold, silver, and debt charts which helped to illustrate the massive 150% surge he is predicting for gold, and the enormous up-move in silver he has called for as well. Below are his 4 astonishing charts & commentary.This posting includes an audio/video/photo media file: Download Now |
| SocGen Bear Albert Edwards Repeats Call for $10,000 Gold Posted: 29 Aug 2013 11:59 AM PDT 29-Aug (Barron’s Blogs) — And now we bring you the outlier forecasts. First it was Marc Faber calling for a 20% correction in the S&P 500 and gold to set a fresh high as it resumes its "haven" status. Now we've got Societe Generale uber-bear Albert Edwards repeating a call for 450 on the S&P 500 — a 73% drop — plus a six-fold rise in gold's price, to above $10,000. And sub-1% yield on U.S. Treasury bonds. [source] PG View: Edwards cites likely turmoil in emerging markets as the driver behind a sharp rise in gold. What’s happening in India may be a harbinger for the next full-on global crisis. |
| Mike Kosares: Currency and debt collapses are bigger threats than Syria Posted: 29 Aug 2013 11:41 AM PDT 2:34p ET Thursday, August 29, 2013 Dear Friend of GATA and Gold: Currency and debt collapses are probably bigger threats to the world economy than anything involving Syria, Centennial Precious Metals' Mike Kosares writes today at Centennial's Internet site, USAGold. Kosares' commentary is headlined "A New Contagion Is Brewing -- Gold Could See Mega-Highs, According to Two Super-Bank Economists": http://www.usagold.com/cpmforum/2013/08/29/new-contagion-brewing-gold-co... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit 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: Gold Investment Symposium 2013 New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * 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 Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata |
| Posted: 29 Aug 2013 11:39 AM PDT Silver prices ran into resistance levels, and prices will be tested after the US released stronger than expected economic data. Prices of the precious metal have climbed nearly 24% in August, as weaker economic data and fear over a military strike in Syria have boosted the demand for silver. Hedge funds have decreased short positions according to the most recent report released by the CFTC. Better than expected economic data released on Thursday created a mixed picture for precious metals traders as yield moved higher making the dollar more attractive. A stronger dollar is generally a negative for silver prices, as the metal is viewed by many as a currency against the greenback. According to the US Commerce Department Gross domestic product increased at a 2.5 percent annualized rate, compared to an initial estimate of 1.7 percent. Economists had forecast a 2.2 percent gain in GDP. The gain came in corporate profits as well as exports. The GDP price deflator remained relatively tame reflecting a modest inflation environment. In employment news, which is the gauge that is used by the Fed to determine interest rates, Jobless claims declined by 6K in the week ended Aug. 24 to 331,000 from a revised 337,000 according to the Labor Department. Analysts' had predicted a decline to 332,000. Next week investors will need to absorb the BLS's non-farm payroll report which is scheduled to release on Friday September 6, 2013. According to the latest commitment of traders report, released for the week ending August 20, 2013 hedge fund traders reduced short positions by nearly 5,600 contracts.
Silver prices are now at an inflection point that could be critical to the future direction of the precious metal. Prices ran into resistance near the 24.80 region which coincides with the highs seen in April of 2013. Support on silver is seen near the 10-day moving average near 23.65. A close below the 10-day moving average would likely lead to a test of the mid-August lows near 22.50. If prices are able to recapture the 25 per ounce level, the next likely test of resistance would be 28 per ounce. Momentum on silver prices remains strong, with the moving average convergence divergence index (MACD) printing in positive territory with an upward trajectory. This means that the differential between the 12-day moving average and the 26-day moving average is accelerating away from the 9-day moving average of the differential (as the chart from Alpari.com shows). As silver prices ran into resistance, the RSI (relative strength index) printed above the 70 overbought trigger level. The RSI also ran into resistance and has created a double top while continuing to print in overbought territory. This should be a warning signal to traders, and although prices can print in overbought territory for a while, the yellow light is flashing. This is a guest post by Marcus Hollander. |
| Tocqueville's Hathaway expects more 'financial repression' in U.S. Posted: 29 Aug 2013 11:27 AM PDT 2:26p ET Thursday, August 29, 2013 Dear Friend of GATA and Gold: Tocqueville Gold Fund manager John Hathaway today tells King World News that the markets likely already have priced themselves for the Federal Reserve's reduction in bond buying. Hathaway adds that he would not be surprised by a massive increase in "financial repression" in the United States, including capital controls and requiring pension funds to purchase government bonds. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/29_Un... And mining entrepreneur and geologist Keith Barron tells King World News that tension in the Middle East has nothing to do with the strength of the gold price. Rather, Barron says, investors and sovereigns are getting out of dollars: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/29_Ma... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: Gold Investment Symposium 2013 New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * 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 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: 29 Aug 2013 10:32 AM PDT Gold could see new mega-highs according to two prominent international bank economists While all eyes have been on Syria, what might turn to be a much more insidious problem for the world economy has been bubbling below the surface – and for the most part out of the public eye – in what we used to call the "third world." In the end, what amounts to a new currency and debt debacle in the emerging world could undermine the world's stock markets, including Wall Street, the value of those country's currencies as well as the debt denominated in those currencies. The list includes China, India, Brazil, Argentina, Indonesia, South Africa, Russia and Mexico – just to name a few (and we won't even get into the problems in the southern rim of Europe). Some see the developing situation as a repeat of the 1996-1997 Asian contagion, but it goes beyond the Pacific Rim, as just noted, to include most of the southern hemisphere. Kevin Lai, who is chief regional economist at Daiwa Securities stated in a recent Financial Times article that "all this QE money has led to a massive credit inflation bubble in Asia. The crime has been committed, we just have the aftermath. During that process, there will be a lot of damage. . .It's like a margin call. Households will need to sell their assets. There will be a lot of wealth destruction." Later in the article he adds to those concerns. "The choice is either you protect your currency or you protect domestic growth. You can do only one or the other. There is no easy way out." The former will lead to inflation; the latter to disinflation or stagflation – whichever term fits your fancy. To go by one example as to what the overall impact of the unfolding scenario might be on the gold market, we need only look to India where the ongoing collapse of the rupee has pushed gold demand into the upper limits. India's monetary authorities have reacted to the situation by imposing import controls on the metal in an attempt to keep the populace from fleeing the rupee for gold. Some commentators have gone so far as to suggest the possibility of a gold confiscation in India. Granted India's affinity to gold is like no other country's save China, nevertheless it provides clues as to how gold fundamentals might be affected if the contagion spreads. In fact, when you take into consideration that gold has been surging lately in overnight/overseas trading, the recent strength in the market might be attributable more to the global crisis than events in Syria — where the mainstream financial media has focused its attention of late. Top Society General strategist, Albert Edwards, believes that China may eventually be forced to devalue the remimbi and warns of a currency debacle in the not too distant future similar to the 1997 contagion. Says Edwards: "The emerging markets ‘story’ has once again been exposed as a pyramid of piffle. The EM edifice has come crashing down as their underlying balance of payments weaknesses have been exposed first by the yen's slide and then by the threat of Fed tightening. China has flipflopped from berating Bernanke for too much QE in 2010 to warning about the negative impact of tapering on emerging markets! It is a mystery to me why anyone, apart from the activists that seem to inhabit western central banks, thinks QE could be the solution to the problems of the global economy. But in temporarily papering over the cracks, they have allowed those cracks to become immeasurably deep crevasses. At the risk of being called a crackpot again, I repeat my forecasts of 450 for the S&P, sub-1% US 10y yields and gold above $10,000." So today we have a prediction of $10,000 gold from an economist at one global super-bank (Albert Edwards at SocGen) to go with yesterday's prediction of $3500 per ounce by an economist at another global super-bank (Tom Fitzpatrick at CitiBank). Says Fitzpatrick: "Within the gold dynamic, we believe this recent correction was very similar to what the gold market witnessed from 1974 to 1976 — as the equity markets recovered from the bear market bottom in 1974. In this instance, very recently gold went 14% below the 55-month moving average, exactly as it did back in 1976. After the low in gold in 1976, the equity market peaked 4 weeks later. So far, following the $1,181 low in gold, the peak in the equity markets has been 5 weeks thereafter. And as we started that historic upward movement in gold, beginning in 1976, this was also when the equity market peaked and went into a corrective phase, and that is when gold really came into its own. So we believe we are back into that track where gold is the hard currency of choice, and we expect for this trend to accelerate going forward. We still believe that in the next couple of years we will be looking at a gold price of around $3,500. As the gold/silver ratio plummets near 30 (see chart below), this would also suggest a silver price above $100." If you are looking for a gold-based analysis of the financial markets and economy, we invite you to subscribe to our FREE newsletter – USAGOLD NEWS, COMMENTARY & ANALYSIS, edited by Michael J. Kosares, the author of the preceding post, the founder of USAGOLD and the author of "The ABCs of Gold Investing: How To Protect And Build Your Wealth With Gold." You can opt out any time and we won't deluge you with junk e-mails. |
| Unprecedented Run On Physical Gold Now Set To Accelerate Posted: 29 Aug 2013 09:31 AM PDT  With gold and silver continuing to consolidate recent gains, today John Hathaway warned King World News that the run on physical gold may now be set to accelerate. Hathaway also spoke about the enormous implications as this massive run on gold unfolds. Hathaway, of Tocqueville Asset Management L.P., is one of the most respected institutional minds in the world today regarding gold, and his fund was awarded a coveted 5-star rating. This posting includes an audio/video/photo media file: Download Now |
| Posted: 29 Aug 2013 09:19 AM PDT Gold Corrects as Taper-Talk Returns
President Obama made it clear yesterday that there is compelling evidence that points to the Assad regime as the perpetrator of the 21-Aug chemical weapons attack against civilians. Nonetheless, the President said he had not yet made a decision on a U.S. response to that attack. U.S. Q2 GDP was revised higher to +2.5%, beating expectations of +2.3%. This was a pretty significant revision from the +1.7% preliminary print. Additionally, initial jobless claims fell last week by 6000, also beating expectations. With Syria seemingly on the back-burner due to divisions among lawmakers in the west and objections to military intervention from other quarters, not surprisingly attention has returned to the Fed. The consensus seems to still favor a limited taper beginning in September, possibly from the current $85 bln pace to $65 bln. As we’re noted in the past, $65 bln a month in asset purchases will still add considerably to the Fed’s balance sheet. The central bank has been quite adamant of late that they have no intention to raise rates any time soon, but just talk of the taper has driven yields on U.S. Treasuries significantly higher over the past several months. New BoE governor Carney is facing the same problem. Despite assurances that rates will remain suppressed for some time to come, yields on Gilts have been steadily moving higher, threatening to derail Britain’s fragile recovery. Carney said today that the central bank would provide fresh stimulus if necessary in an effort to quell recent debt market pressures. Gold has been largely ignoring the ebb and flow of taper expectations lately. So far, the yellow metal is holding above $1400. |
| SA gold companies plan to lock out employees – Solidarity Posted: 29 Aug 2013 08:30 AM PDT Companies plan to lock out employees after labour groups refused to accept a revised pay offer, says Solidarity union. |
| Gold market in for a wonderful Fall – Embry Posted: 29 Aug 2013 08:30 AM PDT After a quiet summer for the gold market, prices are in for a much better run of things in Autumn, says John Embry. |
| Gold price Syria factor already waning Posted: 29 Aug 2013 08:30 AM PDT "You will note that the fall of the gold price today was greater in the dollar than in the euro," says Julian Phillips. |
| Petropavlovsk takes $600m of impairment charges Posted: 29 Aug 2013 08:30 AM PDT The company is the hardest-hit by write-offs among Russian gold producers after its rival Polymetal took an impairment of $305 million. |
| Tanzania pledges to end child labour in gold mines Posted: 29 Aug 2013 08:30 AM PDT Human Rights Watch says children as young as 8 years old are working in small-scale gold mines in Tanzania. |
| Will Major Decline of S&P 500 Adversely Affect Gold & Silver Stocks? Posted: 29 Aug 2013 07:54 AM PDT Should gold stock investors and speculators worry about the effect of a deeper So writes Jordan Roy-Byrne, CMT (thedailygold.com) in edited excerpts from his original article* entitled Will the S&P 500 Impact Gold Stocks?. [The following article is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and the FREE Market Intelligence Report newsletter (sample here – register here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]Roy-Byrne goes on to say in further edited, and perhaps in some places paraphrased, excerpts: The relationship between the gold stocks and the stock market is difficult to pinpoint as its quite scattered. At times the two markets can trend together and in either direction. Sometimes when the stock market is falling, gold stocks can rise. The reverse can also happen as has been the case for the past two years. The determinant is the current correlation between the two markets:
The following are important examples of the above [as can be seen in the 2 charts below]: The 1970s
The Late 1990s – Early 2000s Many market observers forget the period of the late 1990s. The gold stocks were in a nasty bear market as the Nasdaq went parabolic.
The 2010s ]As can be seen in the chart below,] over the past two years the gold stocks declined nearly 70% while the S&P 500 advanced nearly 50%. The stock market falls because of rising inflation or because of tighter credit or recessionary conditions. Rising inflation is usually a boon for metals prices but negative for general equities as it cuts into margins and hurts corporate profits.
The Current Situation Currently corporate profit margins are at all-time highs while revenue growth is lacking. With the S&P trading at over 18x trailing earnings, the market is not cheap and therefore is vulnerable to rising rates and rising inflation. Moreover, common sense tells us that if gold stocks correct while the stock market gains, its quite unrealistic to expect gold stocks to continue to decline if the stock market declines. At present, if the economy nears recession and the stock market falls (for whatever reason), policy makers will act and it should benefit precious metals. Technically, the gold stocks continue to follow a typical post-bottom rebound path and look very strong. [As can be seen in the chart below] the daily RSI of GDX is at a 10-month high as GDX consolidates around $30. We'd love to see GDX consolidate for a few weeks but it may break above $31 within days. There is an open gap at $34 while $38-$39 remains a strong target.
In summation, if you are a gold stock investor there is no need to worry about the stock market.
Perhaps at some point the gold stocks will consolidate for several months when they are overbought or when the stock market is most vulnerable but that point is nowhere close. Stay bullish and look for continued gains in the coming weeks. [Editor's Note: The author's views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]*http://thedailygold.com/will-the-sp-500-impact-gold-stocks/ Related Stocks: 1. Eric Sprott: Gold & Silver Could Double Within a Year & PM Stock Gains Could Be Gargantuan  In this exclusive interview, Eric Sprott answers questions about the gold and silver market in which he suggests that gold could double in a year and, in the case of silver, could go up even more than that. As for gold and silver equities, he believes gains could be gargantuan, because the equities always double or triple the performance of physical gold. Here's his reasoning. Read More » 2. Gold Stocks Could Jump 100% in the Coming Year – Here's Why  It's not crazy to think that gold stocks could easily double from their current levels if you realize the extreme condition the gold-stocks-to-gold ratio is in – and if you know your market history. Let me explain. Words: 336; Charts: 1 Read More » 3. Noonan: These Charts Clearly Show What's Happening With Gold & Silver – Take a Look  Below is a perfect example of how the charts timed the movement in the price of gold and silver over the past week. Yes, you CAN time the market as this article clearly demonstrates! When the market "talks," we listen.] Read More » The post Will Major Decline of S&P 500 Adversely Affect Gold & Silver Stocks? appeared first on munKNEE dot.com. |
| Indian Rupee Crisis Now Even More Comical Posted: 29 Aug 2013 07:09 AM PDT The folks at Reuters are reporting that the Indian government continues to address the symptoms rather than the caused of its currency troubles as they are now considering buying gold from the public in order to have that same gold sold back to the public so as to reduce gold imports, lower its trade deficit, [...] |
| The Dead-Head Fed And “The Only Road to Riches” Posted: 29 Aug 2013 06:19 AM PDT
I was reading through the latest U.S housing data earlier this week. Single-family home sales fell 13.4% in July as compared to June. It was the first month to absorb the full percentage point increase in 30-year mortgage rates since the bottom in May. May, of course, looks more and more like a giant fault line that shifted. It was in May that the Federal Reserve chief started to talk about “tapering.” This would end the Fed’s buying spree that’s propped up markets and driven interest rates to new lows. That shift caused a noticeable quake in a number of markets that seem dependent on low rates. Housing, of course, is a big one. Not only did housing sales fall, but the median price of a U.S. home also fell a smidge — from $258,500 to $257,200. Obviously, higher mortgage rates make housing less affordable. The most remarkable impact on housing, though, I think comes from taking a look at the homebuilder stocks since their May peaks. The iShares U.S. Home Construction ETF (ITB) — made up of U.S. homebuilder stocks — is down 20%. As the stock market looks forward, this is a damning view of the outlook for U.S. housing. Yet stocks such as Lowe’s and Home Depot are near 52-week highs. I was at the Lowe’s within walking distance of my house on Saturday. It was as busy as ever. I still like the idea of owning a house and renting it, but the best time to buy a house for that purpose has passed in most markets. There are still good deals, but you have to work harder to find them. The tapering mini-quake knocked down emerging markets, too. Turkey’s stock market fell 9% last week. And many emerging markets — such as Brazil — are down 20% or more since May. So far this year, we’ve avoided emerging markets entirely as far as new ideas go. But I think they are starting to look interesting again. There is also a currency aspect to the May quake. Many of these currencies lost value against the dollar. Since May, for instance, the Brazilian real is down about 15% against the dollar. These things create serious losses for U.S. dollar-based investors. And this gets to a contrarian idea that you won’t want to hear, but will probably prove right. Every time the Fed ended some previous intervention — QE1 and QE2 and even Operation Twist — the U.S. dollar rallied. So tapering raises U.S. interest rates, which makes holding U.S. dollars more attractive compared with other currencies than they were before. Hence, the dollar rallies. It seems perverse, but after all that’s happened, people still turn to the dollar when they want a safe place to park assets, if only briefly. That’s the thing to keep in mind, too. When the Fed announced QE1 and later QE2, the dollar went into a decline that lasted months. So it seems likely that after the taper is over, the Fed will come back into the market again with some new name for an old thing (money printing) and the dollar will resume its decline. It’s hard to come away from all of this without thinking that the stock market is where it is largely because of the Fed’s actions, as superinvestor Paul Singer notes up top. No one really knows what the future holds. That sounds trite, but it’s amazing how many people forget that when they make decisions with their money. There is really only one thing you can do. Here is Peter Bernstein (1919-2009), the longtime investment thinker and author:
The only thing we can do is manage our risks. We can stick to undervalued stocks. We can focus on strong balance sheets, which, for businesses are a lot like foundations for buildings. They can be the difference between surviving a crisis and succumbing to it. We also aim to align ourselves with owner-operators — people who have a vested interest in survival. Now, portfolios are like pirate ships. They are made to sail the open seas in search of treasure. You don’t raise a pirate ship and crew and have them waste away in a harbor somewhere. You send them out and realize that you’ll take some damage from time to time, but that you’ll make it up with the treasures you haul in. The key is not to lose the ship. Sincerely, Chris Mayer |
| Another Chance Coming to Buy Gold and Silver Stocks Posted: 29 Aug 2013 06:17 AM PDT The bottom line is the current correction or consolidation is quite healthy for the sector. Many stocks have made huge runs in a very short period of time and are set to digest those gains and correct short-term overbought conditions. Read More... |
| India’s rupee posts biggest gain in 15 years on currency intervention Posted: 29 Aug 2013 06:04 AM PDT 29-Aug (CNBC) — India’s beaten-down currency showed on Thursday that it hasn’t given up the fight, staging it’s biggest one-day gain for over 15 years on central bank intervention. The rupee hit a session high of 66.55 at around 1 p.m. London time from a low of 67.84 against the dollar in Thursday’s trading session. The one-day surge of around 3.46 percent was the best performance for the rupee since January 1998. Reuters news agency cited several traders that had seen the central bank shoring up the troubled currency on Thursday. It reported that the Bank had been providing dollars directly to oil firms, as part of attempts at currency intervention. [source] |
| RBI should consider monetising gold: Sharma Posted: 29 Aug 2013 05:48 AM PDT
It was not immediately clear whether Sharma was referring to the 557.7 tonnes of gold the RBI holds in its own reserves, or gold in private hands. He did not give more details of how the proposal would work. India has the world’s third largest current account deficit (CAD), which is approaching nearly $90 billion, driven in large part by a huge appetite for gold imports. The deficit has helped undermine the rupee, the worst performing major currency since May. [source] |
| Posted: 29 Aug 2013 05:36 AM PDT MUST READS Chemical weapons team to leave Syria by Saturday – Reuters Central bankers have given up on fixing global finance – FT India to sell dollars to state oil firms in rupee boost – BBC India might buy gold from citizens to ease rupee crisis – Reuters JPMorgan Bribe Probe Expands as Spreadsheet Is Found – Bloomberg Legal Bills for [...] |
| India might buy gold from citizens to ease rupee crisis Posted: 29 Aug 2013 05:33 AM PDT By Suvashree Dey Choudhury MUMBAI -- India is considering a radical plan to direct commercial banks to buy gold from ordinary citizens and divert it to precious metal refiners in an attempt to curb imports and take some heat off the plunging currency. A pilot project will be launched soon, a source familiar with the Reserve Bank of India plans told Reuters. India has the world's third-largest current account deficit, which is approaching nearly $90 billion, driven in a large part by appetite for gold imports in the world's biggest consumer of the metal. For the full story: http://www.reuters.com/article/2013/08/29/us-india-economy-gold-idUSBRE9... ADVERTISEMENT You Don't Have to Wait for Your Monetary Metal: Many investors lately report having to wait weeks and even months for delivery of their precious metal orders. All Pro Gold works with the largest wholesalers that have inventory "live" -- ready to go. All Pro Gold can ship these "live" gold and silver products as soon as payment funds clear. All Pro Gold can provide immediate delivery of 100-ounce Johnson Matthey silver bars, bags of 90 percent junk silver coins, and 1-ounce silver Austrian Philharmonics. All Pro Gold can deliver silver Canadian maple leafs with a two-day delay and 1-ounce U.S. silver eagles with a 15-day delay. Traditional 1-ounce gold bullion coins and mint-state generic gold double eagles are also available for immediate delivery. All Pro Gold has competitive pricing, and its proprietors, longtime GATA supporters Fred Goldstein and Tim Murphy, are glad to answer any questions or concerns of buyers about the acquisition of precious metals and numismatic coins. Learn more at www.allprogold.com or email info@allprogold.com or telephone All Pro Gold toll-free at 1-855-377-4653. 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: |
| Gold Price Falls as "Syria Eases, Tapering Back", Indian Sales Flood Jewelers Posted: 29 Aug 2013 05:33 AM PDT The GOLD PRICE retreated 2% from yesterday's 3-month high of $1433 per ounce early Thursday in London, hitting $1405 per ounce before rallying $10. World stock markets rose for the first time in four sessions, whilst crude oil eased 0.5% lower from this week's new 6-month highs. Silver dropped 5% from its best level since the mid-April crash, bouncing off $23.80 per ounce. "The significance of the Syria problem may have eased a bit in the past one or two days," says $33 billion equities manager Tobias Britsch at Meriten in Dusseldorf, Germany, speaking to Bloomberg. "What looked to be an imminent strike on Syria looks set to be delayed a few days," agrees Dutch bank ING. "This lull may allow macro trends to win through today – which could be USD positive." UN Secretary General Ban Ki-Moon says his weapons inspectors are now due to report on Saturday into last week's Syrian chemical attack near Damascus. China's meantime urged caution, while the UK Parliament was recalled early to debate to issue. US congressional leaders are due to be briefed later Thursday. "Tapering will eventually support the Dollar against the Euro," the newswire separately quotes HSBC currency strategist Robert Lynch in New York. Reducing the Federal Reserve's $85 billion in monthly quantitative easing – previously expected at the US central bank's September meeting – "will put some downward pressure on currencies that have been otherwise supported by the liquidity the Fed has been pumping into the economy," says Lynch. Emerging-market growth will be hit by Fed tapering, warn Lynch's colleagues at HSBC's Asset Allocation team, advising clients today to expect falling commodity and gold prices "as they are likely to face headwinds." The Indian Rupee meantime rallied almost 3% on Thursday after the Reserve Bank offered to supply Dollars to oil importers directly. Anand Sharma, India's minister of commerce & industry, today denied urging the RBI to sell or lease out any of its national gold bullion reserves. Even if [only] 500 tonnes is monetised," Sharma said Tuesday, "then at today's price, I think it takes care of the [current account deficit]." But "I have not said that there should be an auction or mortgage of gold," he told parliament today. "All I had said was that RBI should look into the benefits of issuing gold bonds or monetising the stock." "It is for the banking secretary, bankers and the RBI to see how you can monetise gold [from] the country with over 31,000 tonnes of declared gold," Sharma said Tuesday. The gold price in Rupees this week leapt to new all-time highs as the Rupee fell to new all-time lows. But for Indian households outside the major bullion centers, the gold price has now fallen below main-market prices, reports the Times of India, lagging Mumbai's futures contracts by as much as 1,000 Rupees per 10 grams – more than 3%. "[The] only explanation being offered is excessive quantity of gold being up for sale in markets throughout the country," says the paper, noting separately that India's record-high gold price has unleashed a flood of jewelry for sale. "We are not accepting jewellery exchanges today due to some problem," one store-owner told a Times reporter in Hyderabad. Other would offer only 90% of the gold price. |
| Gold down after 5-day rise as Syria attack concerns ease Posted: 29 Aug 2013 05:29 AM PDT 29-Aug (Reuters) — Gold fell on Thursday, following a five-day rally, as concerns abated that U.S.-led forces would soon launch a military strike on Syria, while investors awaited U.S. data for clues on the Federal Reserve’s next move. The United States and its allies have been discussing possible military action against Syria in response to a poison gas attack last week, stoking safe-haven buying in gold. Spot gold had gained nearly $70 an ounce in five sessions to a 3-1/2 month high of $1,433.31 on Wednesday. It dropped 0.5 percent to $1,411.06 an ounce by 1143 GMT on Thursday. U.S. President Barack Obama has set out the case for a limited military strike, but divisions in Britain and among U.S. lawmakers seem set to delay any imminent action. [source] |
| Gold Price is Going Higher Whether or Not FED Tapers Posted: 29 Aug 2013 05:20 AM PDT Gold Stock Bull |
| Posted: 29 Aug 2013 05:14 AM PDT |
| Gold and Silver Drop as Syrian Military Strike Delayed Posted: 29 Aug 2013 04:44 AM PDT BENCHMARK physical gold prices retreated 2% from yesterday's 3-month high of $1433 per ounce early Thursday in London, hitting $1405 per ounce before rallying $10 and shrugging off a stronger-than-expected revision to US economic growth. World stock markets rose for the first time in four sessions, whilst crude oil eased 0.5% lower from this week's new 6-month highs. |
| Asia Growth Illusion, Why China May Not Be The Odd One Out? Posted: 29 Aug 2013 03:34 AM PDT Which are the world's worst performing currencies over six months losing between 20+% to 8+% against the US dollar? 1. Indian Rupee; 2. Brazilian Real; 3. South African Rand; 4. Indonesian Rupiah; 5. Turkish Lira; and 6. Russian Rouble -- in that order. So whose left amongst the 'Emerging Market' majors including the BRIC nations save China? How long before the Chinese fortune cookie crumbles given a multi-trillion dollar black hole of local government debt which nobody really wants to talk about? |
| Gold Price is Going Higher Whether or Not FED Tapers Posted: 29 Aug 2013 02:21 AM PDT The Federal Reserve is in a very tough position. Despite unprecedented amounts of stimulus, GDP growth is anemic, unemployment remains historically high, durable goods orders have plunged and rising rates are harming the housing rebound. If this is all that can be accomplished with record low rates and trillions in quantitative easing, the underlying health of the economy must be magnitudes worse than believed. |
| Gold, Silver and Mining Stocks Flash Short Sell Signal Posted: 29 Aug 2013 02:15 AM PDT It has been a bumpy ride for precious metal investors over the past couple of years and it unfortunately I do not think its over just yet. The good news is that the bottom has likely been put in for gold, silver and gold miners BUT the recent rally in these metals and miner looks to be coming to an end. While we could see another pop in price over the next week or so the price, volume and momentum see to be stalling out. |
The move lower in Silver was more aggressive than that seen in Gold. In fact, in both the trending moves higher and corrections lower, Silver has tended to move more than Gold. As a consequence we would expect that Silver may well outperform on this next move up. Good resistance is met at the prior breakdown point ($26-$26.40) and above here just below $28 (55-and-200-week moving averages).
Is it finally time to get back into mining stocks? Steve Todoruk, an Investment Executive at Sprott Global Resource Investments Ltd., worked in the mining industry for nearly two decades before joining Sprott Global in 2003. I asked: "After the huge write-downs we saw in June, have mining companies bottomed?"
“If the United States attacks Syria,” asserts Reuters this morning, “it will be the first time it strikes a country that is capable of waging retaliatory cyberspace attacks on American targets.”
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