Gold World News Flash

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• Cyprus-Style Wealth Confiscation Is Now Happening All Over The Globe
• This Is Why The Price Of Gold Is Now Set To Super-Surge
• Chinese Housewives & GOLD vs. Goldman Sachs: No Contest
• Alasdair Macleod: The 80 / 20 rule
• Chinese Housewives vs. Goldman Sachs: No Contest
• The Biggest Precious Metal Winner This Year and Why Its Trend Upward Will Continue
• Maguire tells 'Keiser Report' of the market-rigging evidence given to the CFTC
• 'Massive short covering' awaits bullion banks, John Ing tells King World News
• Central banks have already lost their battle against gold, Sprott says
• World Gold Council elects Randall Oliphant as new chairman
• Bundesbank doesn't really want its gold back from NY Fed, Rickards says
• 20 Ordinary Americans Take About Their Economic Despair
• The Gold Price Lost $10.90 Ending the Day at $1,316.00
• The Gold Price Lost $10.90 Ending the Day at $1,316.00
• Fives Tonnes of Customer Gold Leave the HSBC Vault
• Fives Tonnes of Customer Gold Leave the HSBC Vault
• An Alternative View Of Why The Fed Did Not (and Will Not) Taper
• Obamacare, Washington and Wall Street
• Chinese Housewives vs. Goldman Sachs: No Contest
• Gold Finds a Few Friends near $1300
• The West Will Regret All Its Financial Policies Someday Soon – Sprott
• Gold bars worth £1.35m stolen on Air France flight to Zurich from Paris
• Gold Daily and Silver Weekly Charts - A Quiet Option Expiration with a Few Hijinks
• Gold Daily and Silver Weekly Charts - A Quiet Option Expiration with a Few Hijinks
• James Rickards: “When The International Monetary System Collapses—It’s Going To Be About How Much Gold You Have”
• Gold: Options Expiry Mouse Versus Asian Tiger
• The Fed’s Taper-Free Recipe for Market Rally
• Current Debt Trajectory Will Lead To Western Disintegration
• Gold and Oil: Which Has a Better Upside Potential?
• Gold
• Goldman Who?
• Goldman Who?
• Chinese Housewives vs. Goldman Sachs: No Contest
• Gold: Options Expiry Mouse Versus Asian Tiger
• Gold Price $2000 "Inside a Year"
• Gold Price $2000 "Inside a Year"
• Fifty Shades of Gold
• Chinese Housewives vs. Goldman Sachs: No Contest
• Denmark 20 Kroner/$20 Lib MS64 Special Nearly Sold Out
• Denmark/US$20 Liberty MS64 Special Nearly Sold Out
• Calm Before The Storm As The World Heads Into 2nd Meltdown
• Gold and Oil: Which Has a Better Upside Potential?
• Fifty Shades of Gold
• Manipulation, gold and the decline of the dollar – Sprott
• Gold set to vault up from downturn – Oliver
• What You Need to Know About the U.S. Budget Deficit & National Debt
• The Daily Market Report
• Centerra Gold to look for acquisitions after kumtor resolution
• DAILY COMMENTARY FOR SEPT. 25
• Growth not a dirty word – Goldcorp CEO

Cyprus-Style Wealth Confiscation Is Now Happening All Over The Globe Posted: 24 Sep 2013 09:20 PM PDT by Michael Snyder, Economic Collapse Blog: Now that “bail-ins” have become accepted practice all over the planet, no bank account and no pension fund will ever be 100% safe again. In fact, Cyprus-style wealth confiscation is already starting to happen all around the world. As you will read about below, private pension funds were just raided by the government in Poland, and a “bail-in” is being organized for one of the largest banks in Italy. Unfortunately, this is just the beginning. The precedent that was set in Cyprus is being used as a template for establishing bail-in procedures in New Zealand, Canada and all over Europe. It is only a matter of time before we see this exact same type of thing happen in the United States as well. From now on, anyone that keeps a large amount of money in any single bank account or retirement fund is being incredibly foolish. Let’s take a look at a few of the examples of how Cyprus-style wealth confiscation is now moving forward all over the globe… Read More @ EconomicCollapseBlog.com

This Is Why The Price Of Gold Is Now Set To Super-Surge Posted: 24 Sep 2013 09:01 PM PDT On the heels of some chaotic trading in the gold, silver, stock and bond markets last week, after the Fed decision not to taper, today top Citi analyst Tom Fitzpatrick sent King World news 3 amazing gold and US dollar charts. Fitzpatrick had previously indicated to KWN that he expects a massive 150% surge in gold, and a staggering 300% move higher in silver. He also believes the Fed's credibility has been severely damaged by their decision not to taper. Below are his 3 astonishing charts & comments about what to expect next from the metals. This posting includes an audio/video/photo media file: Download Now

Chinese Housewives & GOLD vs. Goldman Sachs: No Contest Posted: 24 Sep 2013 08:03 PM PDT from Zero Hedge: Goldman Sachs is once again predicting that gold will fall, setting a new near-term target of $1,050. Never mind the schizophrenic gene that would be required to follow the constantly fluctuating predictions of all these big banks. Sure, the too-big-to-fails can move markets – but they say things that are good for them, not us. As an example, while Goldman Sachs was telling clients and the public to sell gold in the second quarter, they bought 3.7 million shares of GLD and became the ETF’s 7th largest holder. When we visited China, guess who no one was talking about? Goldman Sachs. Since January 1, gold ETF holdings have fallen by roughly a quarter (26%, according to GFMS). But Chinese housewives aren’t refraining from buying and certainly aren't selling… Read More @ ZeroHedge.com

Alasdair Macleod: The 80 / 20 rule Posted: 24 Sep 2013 07:22 PM PDT 10:19p ET Tuesday, September 24, 2013 Dear Friend of GATA and Gold: In his new commentary, "The 80 / 20 Rule," GoldMoney research director Alasdair Macleod warns that money exiting the bond market as interest rates rise will likely inflate asset prices and make inflation even more of a hardship for people of no particular financial means. "The fatal error of rescuing both the banking system and government finances by reckless currency inflation is becoming apparent to all," Macleod writes. "Unless this policy is somehow reversed, we risk a global rerun of the collapse of the German mark in 1923." Macleod's commentary is posted at GoldMoney's Internet site here: http://www.goldmoney.com/en-gb/news-and-analysis/news-and-analysis-archi... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT You Don't Have to Wait for Your Monetary Metal: All Pro Gold Has Product for Immediate Delivery 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. Join GATA here: Louis Boulanger Now Seminar Visitors Center, Holy Trinity Parnell Auckland, New Zeland Sunday, October 13, 2013 http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 Luna Park Conference Center, Sydney, Australia Wednesday-Thursday, October 16-17, 2013 http://gold.symposium.net.au/ The Silver Summit Davenport Hotel, Spokane, Washington Thursday-Friday, October 24-25, 2013 http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia Melbourne Conference and Exhibition Centre Tuesday, October 29-Friday, November 1, 2013 http://www.minesandmoney.com/ New Orleans Investment Conference Sunday-Wednesday, November 10-13, 2013 Hilton New Orleans Riverside Hotel New Orleans, Louisiana 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

Chinese Housewives vs. Goldman Sachs: No Contest Posted: 24 Sep 2013 06:55 PM PDT Submitted by Jeff Clark of Casey Research, Chinese Housewives vs. Goldman Sachs: No Contest   By Jeff Clark, Senior Precious Metals Analyst Goldman Sachs is once again predicting that gold will fall, setting a new near-term target of $1,050. Never mind the schizophrenic gene that would be required to follow the constantly fluctuating predictions of all these big banks; it's amazing to me that anyone continues to listen to them after their abysmal record and long-standing anti-gold stance. Sure, the too-big-to-fails can move markets—but they say things that are good for them, not us. As an example, while Goldman Sachs was telling clients and the public to sell gold in the second quarter, they bought 3.7 million shares of GLD and became the ETF's 7th largest holder. When I visited China two years ago, guess who no one was talking about? Goldman Sachs. There was news about the US, of course, but the regular diet of journalistic intake consisted of Chinese activity, not North American. And surprise, surprise, the view from that side of the big blue ball was materially different than what we hear and read here—and in some cases, the opposite. Not only has the average Chinese housewife, perhaps the most frugal and cautious species of savers in the world, probably never heard of Goldman Sachs and their call for $1,000 gold—if she had, she would think: ??! (Rubbish!) Here's some evidence. Since January 1, gold ETF holdings have fallen by roughly a quarter (26%, according to GFMS). But Chinese housewives aren't refraining from buying and certainly aren't selling: The red dotted line represents the total outflows of GLD through last Tuesday. The gold bars are cumulative monthly imports of gold to China, through Hong Kong. You can see that China has absorbed roughly twice what most North American ETF holders have sold. It's actually more than that, because we only have Hong Kong import data up to the end of July. But it's even more dramatic than this. If you dig down into the data further, you find that cumulative gold imports through July surpassed the 26.7 million ounces (831 tonnes) that was imported to China for the whole of 2012. That means rather than being deterred from buying gold when its price was declining this year, the Chinese were snapping up the yellow metal as fast as they could. Further, last year Chinese miners produced 12.9 million ounces (403 tonnes) of gold, all of which stayed in the country. When you look at physical deliveries from the Shanghai Gold Exchange (SGE) vs. the COMEX and global mine production, you can see a clear trend this year: Deliveries at the SGE are significantly greater than those at the COMEX. Delivery ratios on the Comex have consistently been under 10%, in contrast to more than 30% on the SGE. Through June, the SGE has nearly matched all of last year's total. What's even more astonishing: year-to-date deliveries on the SGE are close to global mine production. In the first six months, delivery reached 35.3 million ounces (1,098 tonnes), just 20% less than what all gold companies mined last year. It is headlines like these that the Chinese read—not what Goldman Sachs writes. It's not just the Chinese, of course. India, for now, is still the largest gold market. Despite relentless restrictions from her government, Mrs. Singh bought more gold jewelry and bullion last quarter than any other country. China and India accounted for almost 60% of the global gold jewelry sector last quarter, and roughly half of total bar and coin demand. Further, both countries saw almost 50% more consumer demand in the first half of the year compared to the same period in 2012. The two countries are again setting records… China purchased 8.8 million ounces (275 tonnes), 87% more than last year India bought 9.9 million ounces (310 tonnes), 71% more than 2012 It's true that official Indian gold imports dropped in August, to just 0.08 million ounces (2.5 tonnes), a 95% plunge from July's volume of 1.5 million ounces (47.5 tonnes). It's not yet clear, however, that Indian authorities have managed to subdue gold imports as they have been desperately trying to do; keep in mind the widespread reports of gold smuggling. Meanwhile, the wedding season is just ahead, so demand is likely to bounce back up. Physical demand also soared in Thailand, Indonesia, and Vietnam last quarter, with increases ranging from 20% to 40% being reported. Add it all up and the Asian/emerging countries comprise the lion's share of consumer demand for gold, about 70%. It begs the question, are Asians just smarter than Goldman Sachs? If you find yourself agreeing more with Mrs. Chang than Goldman Sachs, you can snag two silver bullion products at a discounted premium in the current issue of BIG GOLD. You won't find these prices elsewhere, and the savings could pay for your subscription. Product is still available, so join the Chinese gold rush and stock up while prices are down with a risk-free subscription to BIG GOLD.   What does this mean to us as investors?   The structure of the gold market is changing. Gold is moving from the so-called "weak hands"—those who saw gold as a "trade" and/or were seeking quick profits—to "strong hands," who see the big picure and are buying for the long term. Gold is moving west to east. You've heard this before, but the above data irrefutably points to this fact—and the trend shows no signs of letting up. The East will have an increasingly greater impact on price. As Asian countries take over more and more of the market, their influence on the price will only grow. The gold bull market is not over, regardless of what GS says. When I read their comments on the precious metals market, I sometimes wonder if they really understand it. But then again, do any of their analysts even own any gold? Mrs. Chang, I'm with you.

The Biggest Precious Metal Winner This Year and Why Its Trend Upward Will Continue Posted: 24 Sep 2013 06:40 PM PDT by Sasha Cekerevac, Investment Contrarians: With the recent shock of the latest Federal Reserve meeting now beginning to subside, the implications can now be extrapolated. By holding its foot on the accelerator, the Federal Reserve is opening the door to further price appreciation in many asset classes, including precious metals. One of the precious metals I like is the little-mentioned palladium. While many of the precious metals covered by the mainstream (i.e. gold and silver) have been under pressure all year, palladium is actually positive for the year. Because so much of palladium is used for industrial purposes, the negative investor sentiment seen with other precious metals did not have as much of an impact on palladium. Read More @ InvestmentContrarians.com

Maguire tells 'Keiser Report' of the market-rigging evidence given to the CFTC Posted: 24 Sep 2013 06:28 PM PDT 9:30p ET Tuesday, September 24, 2013 Dear Friend of GATA and Gold: Max Keiser of "The Keiser Report" on the Russia Today television network today did a spectacular interview with London metals trader Andrew Maguire, who described his facilitation of statements given last year to the U.S. Commodity Futures Trading Commission by JPMorganChase employees confirming that their company manipulates the monetary metals markets. Maguire cites the sudden dumping of huge amounts of futures contracts at illiquid moments in the gold market as powerful evidence that the U.S. government is intervening to protect the dollar. Such action is by definition manipulative, Maguire says, and easily could be tracked down by market regulators if they wanted to do so. Maguire says CFTC Commissioner Bart Chilton has told him that if the commission fails to act in its five-year investigation of silver market manipulation by the end of this month, Chilton himself will say something about it. Maguire also cites King World News and your secretary/treasurer. Keiser's interview with Maguire is about 12 minutes long and is posted with some introductory commentary by Turd Ferguson at the TF Metals Report's Internet site. Maguire's interview begins at the 13-minute mark. It's here: http://www.tfmetalsreport.com/blog/5087/am-mk CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Don't Let Cyprus Happen to You Depositors at the Bank of Cyprus lost 47.5 percent of their savings. So to preserve your wealth, get some of it outside the banking system into physical gold and silver. Worldwide Precious Metals (Canada) Ltd., established in 2001, specializes in physical gold, silver, platinum, and palladium. We offer delivery or secure and fully insured storage outside the banking system in Brinks vaults. We have access to gold and silver from trusted worldwide refineries and suppliers. And when you have an account with us you have immediate access to it for buying and selling your stored bullion. For information on owning physical precious metals in your portfolio, visit us at: www.wwpmc.com. Join GATA here: Louis Boulanger Now Seminar Visitors Center, Holy Trinity Parnell Auckland, New Zeland Sunday, October 13, 2013 http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 Luna Park Conference Center, Sydney, Australia Wednesday-Thursday, October 16-17, 2013 http://gold.symposium.net.au/ The Silver Summit Davenport Hotel, Spokane, Washington Thursday-Friday, October 24-25, 2013 http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia Melbourne Conference and Exhibition Centre Tuesday, October 29-Friday, November 1, 2013 http://www.minesandmoney.com/ New Orleans Investment Conference Sunday-Wednesday, November 10-13, 2013 Hilton New Orleans Riverside Hotel New Orleans, Louisiana https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Join GATA here: Louis Boulanger Now Seminar Visitors Center, Holy Trinity Parnell Auckland, New Zeland Sunday, October 13, 2013 http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 Luna Park Conference Center, Sydney, Australia Wednesday-Thursday, October 16-17, 2013 http://gold.symposium.net.au/ The Silver Summit Davenport Hotel, Spokane, Washington Thursday-Friday, October 24-25, 2013 http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia Melbourne Conference and Exhibition Centre Tuesday, October 29-Friday, November 1, 2013 http://www.minesandmoney.com/ New Orleans Investment Conference Sunday-Wednesday, November 10-13, 2013 Hilton New Orleans Riverside Hotel New Orleans, Louisiana 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

'Massive short covering' awaits bullion banks, John Ing tells King World News Posted: 24 Sep 2013 05:53 PM PDT 8:55p ET Tuesday, September 24, 2013 Dear Friend of GATA and Gold: John Ing of Maison Placements in Toronto tells King World News today that bullion banks are raiding the gold market with derivatives but events will force "massive short covering." Will it happen in our lifetimes? Live on and in the meantime an excerpt from Ing's interview can be found at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/24_Cu... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Don't Let Cyprus Happen to You Depositors at the Bank of Cyprus lost 47.5 percent of their savings. So to preserve your wealth, get some of it outside the banking system into physical gold and silver. Worldwide Precious Metals (Canada) Ltd., established in 2001, specializes in physical gold, silver, platinum, and palladium. We offer delivery or secure and fully insured storage outside the banking system in Brinks vaults. We have access to gold and silver from trusted worldwide refineries and suppliers. And when you have an account with us you have immediate access to it for buying and selling your stored bullion. For information on owning physical precious metals in your portfolio, visit us at: www.wwpmc.com. Join GATA here: Louis Boulanger Now Seminar Visitors Center, Holy Trinity Parnell Auckland, New Zeland Sunday, October 13, 2013 http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 Luna Park Conference Center, Sydney, Australia Wednesday-Thursday, October 16-17, 2013 http://gold.symposium.net.au/ The Silver Summit Davenport Hotel, Spokane, Washington Thursday-Friday, October 24-25, 2013 http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia Melbourne Conference and Exhibition Centre Tuesday, October 29-Friday, November 1, 2013 http://www.minesandmoney.com/ New Orleans Investment Conference Sunday-Wednesday, November 10-13, 2013 Hilton New Orleans Riverside Hotel New Orleans, Louisiana 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

Central banks have already lost their battle against gold, Sprott says Posted: 24 Sep 2013 05:44 PM PDT 8:45p ET Tuesday, September 24, 2013 Dear Friend of GATA and Gold: Sprott Asset Management CEO Eric Sprott, interviewed by Lars Schall for Matterhorn Asset Management's Gold Switzerland Internet site, says manipulation of the gold market has become obvious, that central banks already have lost their battle against gold, and that there will never be an audit of the U.S. gold reserve. The interview is 28 minutes long and is posted at Gold Switzerland here: http://goldswitzerland.com/the-west-will-regret-all-its-financial-polici... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Precious Metals Round Table: Where Do We Go From Here? On Tuesday, September 24, Sprott Asset Management will assemble four experts for a live Internet broadcast about the prospects for the precious metals. Participating will be Sprott's CEO, Eric Sprott; financial letter writer and internationally renowned conference speaker Marc Faber; Sprott's chief investment strategist, John Embry; and Sprott Asset Management President Rick Rule. To participate, please visit: https://event.on24.com/eventRegistration/EventLobbyServlet?target=regist... Join GATA here: Louis Boulanger Now Seminar Visitors Center, Holy Trinity Parnell Auckland, New Zeland Sunday, October 13, 2013 http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 Luna Park Conference Center, Sydney, Australia Wednesday-Thursday, October 16-17, 2013 http://gold.symposium.net.au/ The Silver Summit Davenport Hotel, Spokane, Washington Thursday-Friday, October 24-25, 2013 http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia Melbourne Conference and Exhibition Centre Tuesday, October 29-Friday, November 1, 2013 http://www.minesandmoney.com/ New Orleans Investment Conference Sunday-Wednesday, November 10-13, 2013 Hilton New Orleans Riverside Hotel New Orleans, Louisiana 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

World Gold Council elects Randall Oliphant as new chairman Posted: 24 Sep 2013 05:30 PM PDT Company Press Release via PR Newswire Tuesday, September 24, 2013 http://www.prnewswire.com/news-releases/world-gold-council-elects-randal... The World Gold Council has announced the election of Randall Oliphant as its new chairman. Mr. Oliphant is executive chairman of the Canadian gold producer New Gold Inc. and succeeds Ian Telfer, chairman of Goldcorp Inc., who steps down from the board. Commenting on his election, Mr. Oliphant said: "I am taking on the role at a time when gold has a wider significance than ever before across the world. From investments and capital markets, to the rise of the Eastern consumer, gold is at the heart of many societies as they seek to store and protect their wealth. The World Gold Council has been in the vanguard of developing innovative uses for the ancient metal and it is a privilege to accept this role. ... Dispatch continues below ... 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 "I'm extremely proud of the industry and the work of the World Gold Council and I look forward to working with our members and the team at the World Gold Council to continue building awareness and understanding of the contribution gold makes to society." Ian Telfer was elected chairman of the World Gold Council in September 2010 and oversaw the development of significant partnerships such as those with ICBC in China, Reliance in India, and the continued success of the SPDR GLD exchange-traded fund partnership with State Street Bank in the United States. He also oversaw the introduction of significant initiatives on behalf of members such as the publication of the Conflict-Free Gold Standard and the guidance notes on All-In Costs. World Gold Council Chief Executive Aram Shishmanian commented: "I am looking forward to working with the new chairman. Gold has been central to the preservation of global wealth in recent years and as the west rebuilds following the financial crisis and the emerging economies of the world grow, gold will continue to play a central role in protecting the wealth and mitigating the financial risk of both nations and individuals. Gold's increased relevance is reflected in the number of partnerships that we have established to bring gold to wider audiences who are finding new uses for it." Mr. Oliphant is the executive chairman of New Gold Inc., a gold producer with a portfolio of four operating mines and three significant development projects located in Canada, Mexico, the United States, Australia, and Chile. Mr. Oliphant joined New Gold after key roles with a number of gold mining companies. He has worked in the industry in many capacities for almost 30 years, and he serves on the boards of a number of public and private companies and not-for-profit organizations, including the Advisory Board of Metalmark Capital LLC and the boards of WesternZagros Resources Ltd. and Franco-Nevada Corp. Mr. Oliphant is a chartered accountant and holds a B.Com. degree from the University of Toronto. * * * Join GATA here: Louis Boulanger Now Seminar Visitors Center, Holy Trinity Parnell Auckland, New Zeland Sunday, October 13, 2013 http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 Luna Park Conference Center, Sydney, Australia Wednesday-Thursday, October 16-17, 2013 http://gold.symposium.net.au/ The Silver Summit Davenport Hotel, Spokane, Washington Thursday-Friday, October 24-25, 2013 http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia Melbourne Conference and Exhibition Centre Tuesday, October 29-Friday, November 1, 2013 http://www.minesandmoney.com/ New Orleans Investment Conference Sunday-Wednesday, November 10-13, 2013 Hilton New Orleans Riverside Hotel New Orleans, Louisiana 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16 ADVERTISEMENT How to profit with silver -- and which stocks to buy now 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...

Bundesbank doesn't really want its gold back from NY Fed, Rickards says Posted: 24 Sep 2013 05:18 PM PDT 8:17p ET Tuesday, September 24, 2013 Dear Friend of GATA and Gold: Interviewed by Tekoa da Silva at Bull Market Thinking, fund adviser and geopolitical strategist James G. Rickards charges that the Federal Reserve is "manipulating every market in the world," including gold. Rickards adds that Germany's Bundesbank really doesn't want any of its gold returned from the Federal Reserve Bank of New York and has arranged for the return of a small part of it only as a political sop to agitation in Germany's parliament. Rather, Rickards says, the Bundesbank wants to remain part of the scheme of Western central banks to manipulate the gold market, which is best accomplished by storing and leasing gold in the major trading centers of New York and London. Still, he expects big changes in the world monetary system within two years. A summary of the interview and a link to its audio are posted at the Bull Market Thinking Internet site here: http://bullmarketthinking.com/james-rickards-when-the-international-mone... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT You Don't Have to Wait for Your Monetary Metal: All Pro Gold Has Product for Immediate Delivery 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. Join GATA here: Louis Boulanger Now Seminar Visitors Center, Holy Trinity Parnell Auckland, New Zeland Sunday, October 13, 2013 http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 Luna Park Conference Center, Sydney, Australia Wednesday-Thursday, October 16-17, 2013 http://gold.symposium.net.au/ The Silver Summit Davenport Hotel, Spokane, Washington Thursday-Friday, October 24-25, 2013 http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia Melbourne Conference and Exhibition Centre Tuesday, October 29-Friday, November 1, 2013 http://www.minesandmoney.com/ New Orleans Investment Conference Sunday-Wednesday, November 10-13, 2013 Hilton New Orleans Riverside Hotel New Orleans, Louisiana 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

20 Ordinary Americans Take About Their Economic Despair Posted: 24 Sep 2013 05:07 PM PDT Yesterday we highlighted the plight of Tom Palome and his cohorts as they face a need to work well into once-thought-retirement age. However, there are hundreds of formerly prosperous communities all over America that are being steadily transformed into rotting, decaying hellholes. The good paying middle class jobs that once supported those communities are long gone, and they have been replaced with low paying service jobs if they have been replaced at all. When you visit those communities, it is almost as if all of the hope has been sucked right out of the air. The following are 20 quotes from ordinary Americans about the economic despair that is rapidly growing around them.   Via Michael Snyder of The Economic Collapse blog, There are hundreds of formerly prosperous communities all over America that are being steadily transformed into rotting, decaying hellholes.  The good paying middle class jobs that once supported those communities are long gone, and they have been replaced with low paying service jobs if they have been replaced at all.  When you visit those communities, it is almost as if all of the hope has been sucked right out of the air.  It can be absolutely heartbreaking to look into the hollow eyes of someone that has totally given in to despair, but unfortunately the number of Americans that are giving up on the economy continues to grow.  Today, the labor participation rate is the lowest that it has been in 35 years, and more than 100 million Americans are enrolled in at least one welfare program.  It is easy to say that they should just "get a job", but as I have written about repeatedly, our economy simply is not producing enough jobs for everyone anymore.  The percentage of working age Americans with a job has remained at the same level that it was at during the worst days of the last recession, and meanwhile the quality of our jobs has continued to steadily decline.  Median household income has fallen for five years in a row, but the cost of living continues to rise rapidly.  The middle class is being systematically shredded, and poverty is growing at an alarming rate.  The U.S. economy has been in decline for a long time, and the really bad news is that it appears that this decline is about to accelerate. We are a nation that consumes far more wealth than we produce.  We are a nation that buys far more from the rest of the world than they buy from us.  We are a nation that has a "buy now, pay later" mentality. As a nation, we have accumulated the largest mountain of debt in the history of the world.  40 years ago, the total amount of debt in our system (government, business and consumer) was about 2 trillion dollars.  Today, it is more than 56 trillion dollars. The consequences of decades of incredibly foolish decisions are starting to catch up with us, and it is those at the bottom of the food chain that will suffer the most. I could spend the rest of this article quoting 30 or 40 more statistics that show how bad things are, but today I wanted to do something different.  Today, I wanted to share some quotes from some of my readers about what they are seeing where they live.  The following are 20 quotes from ordinary Americans about the economic despair that is rapidly growing like a cancer all around us... #1 David: "Yes, the American economy is in the pits. I know five languages, have three degrees (including two graduate degrees), and have lived overseas for 16 years and I still can't find a job in the USA. Everything is broken in America. Maybe I should give up my American citizenship." #2 Zach: "I've been struggling since I finished college in the summer of 2010. My dream is to work in the courts, law enforcement but it's almost impossible to get a call back for an interview. I interviewed with Garland, Texas PD for a position in the city jail and I made the final 30 of 300 applicants that applied for the 3 positions." #3 Akitawoman: "I have two Master's degrees, am 61 years old and earning $10 per hour. What does that say about the current economy?" #4 Cincinnati Dave: "I work for one of the banks mentioned in your article. I was in mortgages. I saw all of this coming, so several months ago I asked to get into another area of the bank and fortunately, for me, they granted by request. A lot of people are losing their jobs and there is really no prospects out there for anything else whereby the same kind of money could be made. I will make nothing near what I had been earning but am at the least grateful to be employed. This is all so sad to watch happen." #5 Iceman: "I used to work for WF processing mortgages. The week that the rates went up, I was out of work, not one extra week of work." #6 Tim: "The U.S. economy is producing mostly part-time, low-wage jobs. These jobs barely pay enough to put food on the table." #7 K: "What I am aware of, is every person I know, who had to switch jobs in the last five years took a pay cut. The smallest cut among my friends was 10%, the average was closer to 18%. No we are heading down a bad road, and we are past the point of no return." #8 Makati: "After spending most of my life in the middle class, I now consider myself lower class due to age and income. Nothing wrong with that. I am still able to provide myself with what I need and some of my 'wants'. I am like most retirees today." #9 Mondobeyondo: "As many of you already know (but maybe some new members of this blog don't) - I live in Phoenix, Arizona. Where you live here, determines (to a great extent) your economic well being. Those in the "East Valley" - Chandler, Gilbert, Scottsdale, etc - have the jobs, the opportunities and the transportation. Those in the wealthier areas of the "West Valley" also have these benefits. The remainder - those who live in the older west side of town, and the south side of town - are mainly forgotten and left to struggle. Many are hard working citizens who just want a chance. Unfortunately, chance costs money, in the view of many people, and as far as the municipal government is concerned, there's no money for us. It's cheaper to let them live in a tent in the park, where the cops at least have an excuse to evict them." #10 2Gary2: "We are no longer the land of opportunity where anyone can make it." #11 GOM: "There is no middle class here in the Florida Panhandle. Only folks who have money are the retired and they hate everyone. They own all the antique stores [big business] and most thriving businesses and restuarants. Military is big here, they spend every dime they have on stupid stuff and taxis. Tourist are way down since the spill. Now for the good news. A major food chain here is going out of business [Food World] Another is losing 20k a month to theft. Every other property it seems is up for sale. There are tons of empty real estate [store fronts] There are thrift stores opening everywhere. People are selling goods on the streets, only to be run off by the cops. Crime is getting out of hand. Most don't go out after dark. Police are beating up the homeless at the beaches. Panhandling now is mainly younger people. Where did all the older ones go?" #12 Rodster: "In my area which is SW Florida, it's been getting tighter for my customers so on a case by case basis I lower my price when they need auto repairs. I still find road signs advertising homes for sale (cash only). Many are advertised as foreclosed.   I've started seeing people living out of their cars. It's not a daily occurrence but I have been noticing it." #13 Devery: I have been looking after the homeless now for 4 years. Last winter I had an encounter where I was told that I could not hand out blankets and sleeping bags in the dead of winter and that I would be arrested for trespassing if "me and my friends" didn't move along. So, I adopted the policy that I would pull up next to them, have them get in the car and we would go for a drive. I would find a place to pull over and give them what they needed then I would drop them off in a different place. #14 Robert: "Around where I live in the SE, things seem ok but I live in a university town. Go to some of the surrounding small towns and it is desolate. Car dealerships closed. Entire streets with abandoned stores. The only activity is a one clerk post office. I know people in our church who are a paycheck away from going over the edge or going over due to a spouse dying and losing one of their social security checks. I see grim. More homeless. A local church is feeding many more including some folks living out of their cars---lots of children. Mostly minimum wage jobs in the area. If it were not for the university and its 34,000 students, this place would look as bad as the smaller communities." #15 TN Gal: "Here in southeast TN we have jobs, mostly part-time or low wage. Our problem these days are so many people dependent on government programs no one wants to work. They do better on programs than working partying and paying for insurance. Housing still very depressed. Seeing more homeless around and local churches straining to provide food. Crime is up and drugs, which were down, are coming back with a vengeance. Middle class here are senior citizens on SS, younger retirees not the older ones. Older ones seem to be struggling. Sad." #16 Deb: Michael, I live in North Central Illinois. About 60 miles southeast of Chicago. The town we live in has about 8,000 in it. Very "middle class" farm community. Unemployment is high and so is underemployment. We know many people living off 2 part time jobs. That seems to be the norm around here. Or people taking jobs that they would never of considered in the past, just to get by. My son used to work for CAT in Aurora, but was "let go" in order to bring in new workers at a lower pay scale. It took him over a year(which really isn't bad) to find a part time job with 3M. #17 Susan: "Drive around Los Angeles at 3:00 AM any day and you will see the devastating and pervasive homelessness from 8 to 80 year olds.  And the massage parlors and hookers on the streets of used to be 'high-end' neighborhoods are exploding. No other way to make a living." #18 XSANDIEGOCA: "A couple of years ago it was reported 9K people a night slept in their cars here in San Diego County. Special car parks are set up in some church parking lots. The cops look the other way. Wonder what the figure is now?" #19 Jimbo: "My own viewpoint is that a collapse of the current economic system is inevitable and imminent." #20 El Pollo de Oro: "During a conversation on prepping, someone recently said to me, 'If things get half as bad as these preppers think they will, I don't want to be alive.' So, how bad will things will get? Real unemployment is already at Great Depression levels (John Williams' Shadow Statistics contradicts the BLS' bogus figures), but when this depression deepens, I think we'll be looking at 50% or 60% unemployment easily. Much worse than the 1930s. It will be absolute hell for millions of Americans, and when the money stops flowing down to the man on the street, the blood will flow in the streets (Gerald Celente). Lots of it."

The Gold Price Lost $10.90 Ending the Day at $1,316.00 Posted: 24 Sep 2013 04:57 PM PDT Gold Price Close Today : 1316.00 Change : -5.60 or -0.42% Silver Price Close Today : 21.539 Change : -0.266 or -1.22% Gold Silver Ratio Today : 61.098 Change : 0.489 or 0.81% Silver Gold Ratio Today : 0.01637 Change : -0.000132 or -0.80% Platinum Price Close Today : 1425.90 Change : 0.00 or 0.00% Palladium Price Close Today : 718.35 Change : 3.06 or 0.43% S&P 500 : 1,697.42 Change : -4.42 or -0.26% Dow In GOLD$ : $240.88 Change : $ (0.02) or -0.01% Dow in GOLD oz : 11.652 Change : -0.001 or -0.01% Dow in SILVER oz : 711.95 Change : 5.62 or 0.80% Dow Industrial : 15,334.59 Change : -66.79 or -0.43% US Dollar Index : 80.590 Change : 0.137 or 0.17% Silver and GOLD PRICES closed lower today, but without much effect on the charts, which have traded sideways for two days. SILVER lost 26.6 cents to 2153.9. Gold misplaced $10.90 and ended Comex at $1,316.00. In the aftermarket they are trading $1,323 and 2167.5c, little lower than yesterday. What do you make of markets like these? On an end-of-the-day chart, not Comex closes, gold has actually bounced up today and closed 50 cents higher. More, it has bounced off an uptrend line from the June low. If the GOLD PRICE is so weak, why doesn't it break down? Where are all the sellers hiding. Of course, that it hasn't broken down YET doesn't guarantee that it won't break down at all. Still, it made a low today at $1,312.35 and seems to strengthen whenever it drops down around $1,315 - $1,305. Maybe silver made an upside down head and shoulders and completed it in early August, maybe it's completing the bottom of a right shoulder presently. Whichever, as long as it can hold on about 2130c (low today 2144.2c), it's still flying like a bumblebee. If silver and gold prices did not bottom on 27 June and intend one last push down, we will see it by end-October. Otherwise, it's a little hard to picture that the goofs and incompetents in Washington won't drive gold up with their debt ceiling squabble. Y'all will get a kick out of this. Bloomberg reports that US regulators are investigating how trading in gold financial instruments in New York and Chicago happened so fast after the release of the FOMC statement last week. Trading in gold futures and ETFs intensified within one millisecond of 2:00 pm Eastern Time on 18 September. Buddy, them folks have some reflexes if they can read that statement and hit that button within one millisecond, especially when it takes 7 milliseconds to travel to Chicago from Washington, where the FOMC statement is released. What's that? Somebody leaked the statement in advance to traders who might profit? Why, perish the thought! Surely y'all wouldn't tarnish the reputation of our Nice Government Men by thinking such thoughts! Friends, it's ALL for sale, and it's all bought and sold. 'Pears that this time around the debt ceiling debacle is depressing all markets, even gold. Me, I'd be happy as a hog in slop if they all locked horns and the yankee government went out of business come 1 October. What would happen? They would stop sending out "swarms of Officers to harass our people, and eat out their substance"? Stop "keeping among us, in times of peace, Standing Armies"? Stop "subjecting us to a jurisdiction foreign to our constitution, and unacknowledged by our laws, giving assent to their acts of pretended legislation"? Stop "imposing taxes on us without our consent"? Stop "abolishing our most valuable Laws, and altering fundamentally the Forms of our government"? So, exactly how would we lose by that? But back to markets. Stocks keep inching toward their 50 Day Moving Averages (15,300 and 1,679). The Dow peeled off 66.79 points (0.43%) for a close at 15,334.59. S&P500 scraped off 4.42 points (0.26%) to land at 1,697.42. Dow in gold is playing above its 50 DMA, still falling. Ended today practically unchanged at 11.652 oz (G$240.58 gold dollars). Dow in silver just hit its 50 DMA yesterday, peeked through it today. 50 DMA stands at 707.78, Dow in Silver closed at 711.95 oz, up 0.8% or 5.62 oz. Big Picture: In May both indicators broke upwards through their ca. 14 year downtrend lines, rallied to a high on 27 June, rolled over, then dropped like a hammer in a beer vat. Toward the end of August both hit their long term downtrend lines, and bounced up in a reaction that has recovered 1/2 to 2-3 of the fall. About time for that reaction to end. Still need both to close below their long term downtrends to breathe completely freely. No slightest facet of the US dollar index chart inspires confidence or optimism, except statements like, "Well, at least the bottom hasn't fallen out yet!" Dollar gained 13.7 basis points (0.18%) today and ended at 80.590. Should the dollar index fall through 79.5, twill look like a man trying to swim with a 200 lb. anvil for a life preserver. All that love fest for the euro that poured out of Ferkel's election victory washed away pretty quick. Euro today closed $1.3473, down 0.15% and back beneath its upper channel trading boundary. If I had to name a candidate as catalyst for the next financial panic, it would be the Eurozone. Just bear in mind, a mountebank remains a mountebank even if he speaks Italian or French. A central banking criminal by any other name . . . Yen rose 0.9% to 101.28 cents/Y100. Directionless. Both Gold in euros and gold in Yen have established and thrice tested uptrends, by the way. 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.

The Gold Price Lost $10.90 Ending the Day at $1,316.00 Posted: 24 Sep 2013 04:57 PM PDT Gold Price Close Today : 1316.00 Change : -5.60 or -0.42% Silver Price Close Today : 21.539 Change : -0.266 or -1.22% Gold Silver Ratio Today : 61.098 Change : 0.489 or 0.81% Silver Gold Ratio Today : 0.01637 Change : -0.000132 or -0.80% Platinum Price Close Today : 1425.90 Change : 0.00 or 0.00% Palladium Price Close Today : 718.35 Change : 3.06 or 0.43% S&P 500 : 1,697.42 Change : -4.42 or -0.26% Dow In GOLD$ : $240.88 Change : $ (0.02) or -0.01% Dow in GOLD oz : 11.652 Change : -0.001 or -0.01% Dow in SILVER oz : 711.95 Change : 5.62 or 0.80% Dow Industrial : 15,334.59 Change : -66.79 or -0.43% US Dollar Index : 80.590 Change : 0.137 or 0.17% Silver and GOLD PRICES closed lower today, but without much effect on the charts, which have traded sideways for two days. SILVER lost 26.6 cents to 2153.9. Gold misplaced $10.90 and ended Comex at $1,316.00. In the aftermarket they are trading $1,323 and 2167.5c, little lower than yesterday. What do you make of markets like these? On an end-of-the-day chart, not Comex closes, gold has actually bounced up today and closed 50 cents higher. More, it has bounced off an uptrend line from the June low. If the GOLD PRICE is so weak, why doesn't it break down? Where are all the sellers hiding. Of course, that it hasn't broken down YET doesn't guarantee that it won't break down at all. Still, it made a low today at $1,312.35 and seems to strengthen whenever it drops down around $1,315 - $1,305. Maybe silver made an upside down head and shoulders and completed it in early August, maybe it's completing the bottom of a right shoulder presently. Whichever, as long as it can hold on about 2130c (low today 2144.2c), it's still flying like a bumblebee. If silver and gold prices did not bottom on 27 June and intend one last push down, we will see it by end-October. Otherwise, it's a little hard to picture that the goofs and incompetents in Washington won't drive gold up with their debt ceiling squabble. Y'all will get a kick out of this. Bloomberg reports that US regulators are investigating how trading in gold financial instruments in New York and Chicago happened so fast after the release of the FOMC statement last week. Trading in gold futures and ETFs intensified within one millisecond of 2:00 pm Eastern Time on 18 September. Buddy, them folks have some reflexes if they can read that statement and hit that button within one millisecond, especially when it takes 7 milliseconds to travel to Chicago from Washington, where the FOMC statement is released. What's that? Somebody leaked the statement in advance to traders who might profit? Why, perish the thought! Surely y'all wouldn't tarnish the reputation of our Nice Government Men by thinking such thoughts! Friends, it's ALL for sale, and it's all bought and sold. 'Pears that this time around the debt ceiling debacle is depressing all markets, even gold. Me, I'd be happy as a hog in slop if they all locked horns and the yankee government went out of business come 1 October. What would happen? They would stop sending out "swarms of Officers to harass our people, and eat out their substance"? Stop "keeping among us, in times of peace, Standing Armies"? Stop "subjecting us to a jurisdiction foreign to our constitution, and unacknowledged by our laws, giving assent to their acts of pretended legislation"? Stop "imposing taxes on us without our consent"? Stop "abolishing our most valuable Laws, and altering fundamentally the Forms of our government"? So, exactly how would we lose by that? But back to markets. Stocks keep inching toward their 50 Day Moving Averages (15,300 and 1,679). The Dow peeled off 66.79 points (0.43%) for a close at 15,334.59. S&P500 scraped off 4.42 points (0.26%) to land at 1,697.42. Dow in gold is playing above its 50 DMA, still falling. Ended today practically unchanged at 11.652 oz (G$240.58 gold dollars). Dow in silver just hit its 50 DMA yesterday, peeked through it today. 50 DMA stands at 707.78, Dow in Silver closed at 711.95 oz, up 0.8% or 5.62 oz. Big Picture: In May both indicators broke upwards through their ca. 14 year downtrend lines, rallied to a high on 27 June, rolled over, then dropped like a hammer in a beer vat. Toward the end of August both hit their long term downtrend lines, and bounced up in a reaction that has recovered 1/2 to 2-3 of the fall. About time for that reaction to end. Still need both to close below their long term downtrends to breathe completely freely. No slightest facet of the US dollar index chart inspires confidence or optimism, except statements like, "Well, at least the bottom hasn't fallen out yet!" Dollar gained 13.7 basis points (0.18%) today and ended at 80.590. Should the dollar index fall through 79.5, twill look like a man trying to swim with a 200 lb. anvil for a life preserver. All that love fest for the euro that poured out of Ferkel's election victory washed away pretty quick. Euro today closed $1.3473, down 0.15% and back beneath its upper channel trading boundary. If I had to name a candidate as catalyst for the next financial panic, it would be the Eurozone. Just bear in mind, a mountebank remains a mountebank even if he speaks Italian or French. A central banking criminal by any other name . . . Yen rose 0.9% to 101.28 cents/Y100. Directionless. Both Gold in euros and gold in Yen have established and thrice tested uptrends, by the way. 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.

Fives Tonnes of Customer Gold Leave the HSBC Vault Posted: 24 Sep 2013 03:46 PM PDT

Fives Tonnes of Customer Gold Leave the HSBC Vault Posted: 24 Sep 2013 03:46 PM PDT

An Alternative View Of Why The Fed Did Not (and Will Not) Taper Posted: 24 Sep 2013 03:28 PM PDT A few years back Chairman Bernanke was asked by a financial reporter how confident he was that the Fed could easily start the process of withdrawing from the accommodation of “unorthodox” monetary policy. Some might argue (ourselves included) that the answer 'should' be something like “very confident” or “We feel we have the right tools and the right people to manage that process”. Instead the answer given was “100%”. At last week's press conference, Chairman Bernanke, in CitiFX Technicals' view, looked like the “cat that got the cheese", despite the more downbeat message he was giving? Why? Because he got his way. In their “conspiracy theory” interpretation it is likely that Janet Yellen’s nomination will indeed be announced in the near future and that tapering is now firmly back off the table despite the guidance given in recent months to the contrary. Bonds seem to agree (so far).   Via CitiFX Technicals, A few years back Chairman Bernanke was asked by a financial reporter how confident he was that the Fed could easily start the process of withdrawing from the accommodation of “unorthodox” monetary policy. Some might argue (ourselves included) that the answer should be something like “very confident” or “We feel we have the right tools and the right people to manage that process”. Instead the answer given was “100%”. If there is one thing you should never commit to when looking towards the future in financial markets is that anything is 100%. Fast forward to early this year and two things took place Bernanke indicated that he would not be looking to be reappointed Yellen was touted as the most likely successor So, if we were a fly on the wall we can imagine the thought process as: The economy looks in pretty good shape. Ben is leaving. Janet will likely take over. QE was “Ben’s baby”. Ben said it would be easy to withdraw. Good time to “Fly a kite”. Let’s tell the market that we may withdraw some of this “QE infinity” but articulate strongly that this is an “easing of the easing” not a tightening. So out goes this guidance from a man (Bernanke) that in our view looked extremely uncomfortable in delivering that message. In subsequent comments thereafter he continued (in our view) to look like somebody that was delivering a message that he did not believe in. Can that be surprising when we know that he has constantly argued that he believed that “too early” withdrawal of accommodation was what exacerbated the great depression and Japan’s lost decade (Or should we say decades). However, he was leaving and looked like he was persuaded to “fly this kite” in order to pave the way for his successor and provide a good information feedback loop in that respect. So what happened? Yields spiked aggressively along all parts of the yield curve much to the surprise of the Fed board. The market obviously did not get the message that this was not a tightening. Shortly thereafter guidance was pushed into the market (Via “preferred sources”) reiterating that the market was getting this wrong. This was an “easing of the easing” and the Fed was sticking to its view that short-term rates would stay low “as far as the eye could see.” Things calmed for a little while only to come back with a vengeance towards the middle of June. Emerging markets around the World started to exhibit stress and long term yields everywhere started to rise. The Fed continued to stick with the same message in this period (Probably a preferred route than flip flopping as they did with the “end” of QE1; QE2 and operation twist) Then the issue became a bit more complicated. Out of nowhere, the front runner for the Fed Chairman position became Larry Summers (A man quoted as “doubting the efficacy of QE”). Yields were still pushing higher and anecdotal evidence suggested that the higher yields were having a negative feedback loop in particular in the mortgage market as well as some other data which began to slow (NFP; Consumer confidence etc.) Now you have a problem. You flew the kite. It “crashed and burned”. Now would be the time to back away and say (As with QE1; QE2 and operation twist) that the Fed was not ready. However, how do you do that if a few months later you look likely to have a “QE sceptic” heading the Fed? Difficult, if not impossible. You flip then flop only to possibly having to flip again in early 2014. Time to use the “sources” again. Guide the number lower from thoughts of $20-25 billion to say $10-15 billion. Possibly restrict tapering to treasuries. Lower the 6.5% unemployment guidance on moving the Fed funds rate etc etc. That looks the best you can do given the corner you have backed yourself into Then, a game changer. During the blackout period on the weekend before the Fed meeting Larry Summers withdraws his candidacy and Tim Geithner reiterates that he is not interested in being considered. Sources are no good at this late stage as we are in the “radio silence” of a blackout period. In addition, on the morning before the Fed decision we get a Washington post article saying that Janet Yellen is the firm frontrunner and may well be announced as early as the following week. (If this was true and we do not know yet for sure that it is, what odds that Ben and Janet knew this going into the meeting?) Then we get the shock announcement... No tapering, 2nd only to the shock press conference when Bernanke pretty much said that Tapering before year end was not a done deal. Ending tapering by mid-2014 was not a done deal. The 7% unemployment guidance for ending tapering was a flawed measure The 6.5% guidance for adjusting the fed funds was a flawed measure Projecting views as far forward as 2016 was a flawed process Targeting an inflation floor did not sound like a bad idea. (This when core PCE, which has a lifetime range since 1960 (53 years) of 0 .95% to 10.23% stands at 1.20%) Conceded that monetary conditions had tightened despite their attempted rhetoric that this policy was just an “easing of the easing” In addition, as far as we were concerned, Chairman Bernanke, at this press conference looked like the “cat that got the cheese” despite the more downbeat Message he was giving? Why? Because he got his way. Once again an attempt to end QE had failed His “right hand (Wo)man was now taking control of the Fed The doves had once again taken firm control Policy “Hotel California” (You can check out any time you like (Ben) but you can never leave (QE) was firmly in place) IF we are correct in this “conspiracy theory” interpretation it is likely that Janet Yellen’s nomination will indeed be announced in the near future and that tapering is now firmly back off the table despite the guidance given in recent months to the contrary As always time will tell. ....... Of course, since the un-Taper, we have seen bond yields collapse and keep falling, gold prices surge and hold gains but stocks (which spiked) fall back having lost all the un-Taper gains. It would appear that stocks have realized that while the free money may flow, growth is elusive and QE has been shown to be anything but stimulative in the real economy. Bonds have had their bluff called and are now pressing back down knowing that either the Fed bid or low-growth bid will be there; and gold recognizes that even if QE is tapered, the reaction in markets will prompt an un-taper very rapidly (and as Marc Faber recently warned - a potential rise to $150 bn per month by the end of next year).   However - as we noted before - they will need to pay attention as these 4 factors will require some discipline at some point: The "taper" is all about economic cover for a forced move the Fed has to make: 1. Deficits are shrinking and the Fed has less and less room for its buying   2. Under the surface, various non-mainstream technicalities are breaking in the markets due to the size of the Fed's position (repo markets, bond specialness, and fail-to-delivers among them).   3. Sentiment is critical; if the public starts to believe (as Kyle Bass warned) that the central bank is monetizing the government's debt (which it clearly is), then the game accelerates away from them very quickly - and we suspect they fear we are close to that tipping point   4. The rest of the world is not happy. As Canada just noted, the US monetary policy will be discussed at the G-20 Simply put, they are cornered...

Obamacare, Washington and Wall Street Posted: 24 Sep 2013 03:16 PM PDT Follow ZeroHedge in Real-Time on FinancialJuice When Obamacare was thought up it was more than just a presidential pledge to woo the poverty-stricken Americans into believing (and voting) that healthcare should be provided for all and sundry and that any Tom, Dick and Harry could get through life by being provided for by the state. What it did was create a budget problem. As if the United States didn't have one already and as if it needed an additional one to all of that. Whatever happened to the American Dream and the ideals of self-made men and getting through in life on toil and sweat? That all died long ago and is nothing more than a myth today, a long-forgotten memory that doesn't stand for what the US is these days. You can be more of a self-made man in China today and that's the land of opportunity. The US is just bankrupt and belongs to the banks. But, that's the way they wanted it, isn't it? But, the land of opportunity looks as if it is going to come in for a rough time. The US is almost (if not already) bankrupt and the debt ceiling needs increasing. Obamacare is in the firing line as it's costing trillions to set up. Wall Street today is even more closely linked to Washington than ever before. Obamacare Obamacare has been estimated to end up costing a total of $1.1 trillion over the following decade. Although other predicted costs are said to amount to somewhere between $1 and $3 trillion over the next ten years. The administration of the US states that Obamacare will reduce the national deficit by $200 billion because it will be paid for directly through taxation and penalties. Spending cuts and caps on the growth in healthcare spending will also according to the administration bring down costs and in return the national deficit. We'll wait and see if that actually happens. Washington But, right now there is an on-going discussion taking place in Washington where that sort of speech might be well heard. The Senate is going to vote as to what will happen to the US government. Down the tubes because they have absolutely no money left? Or, give Obamacare a clean bill of health and up the ante by extending the state budget ceiling? Some of us might just wish to see the vote go in the 'no' direction and for the US state to actually fold, finally forced to be made aware that the decades of frenzied spending and budget overshoots and years of borrowing when it's impossible to pay it back, will finally have to come to an end. Obama will be remembered for being the hope of many people when they voted him in and yet he will also be remembered for actually increasing the budget deficit and for putting in place Obamacare that will just cost more than it can provide. The cumulative deficit under Obama has been the highest ever seen in the history of the US. But, it will probably just get bigger in the future as spending spirals and costs crescendo. Obama has a total cumulative deficit that stands at over $6.1 trillion. Obama blamed that on the previous administration under Bush. But, isn't that what all governments do? It's easier to blame it on the guy that leaves by the back door as nobody wants to talk to him anymore. Whether it was Bush or not it's impossible to use the age-old it-wasn't-me tactic and cherry-pick the figures. George W. Bush certainly notched up a tidy sum but way below what Obama has done. Bush had a cumulative deficit of $3.294 trillion over a two-term period. Spending on the War on Terror increased that deficit by $600-$800 billion per year in terms of military spending. By comparison, Ronald Reagan's cumulative deficit of $1.412 trillion pales into insignificance. That's also despite the fact that he increased government spending by 2.5% and cut taxation for the top income rate from 70% to just 28%. Reagan did double the deficit during his Presidency, however low the sum sounds. George H. W. Bush added $1.03 trillion in just one term, mainly due to the fact that there was a recession and he decided to wage war on Iraq over the invasion of Kuwait. No other President in the history of the country has ever increased the budget deficit by more than these four Presidents above. Obama tops the list. Wall Street Wall Street will be watching very carefully what goes on in Washington and what gets decided over the US government's budget ceiling and the financial shortfall. Trading is expected to be volatile this week until the decision is announced on October 1st and Congress announces whether or not the US government will get funding to keep it afloat for at least a short while until more trillions are notched up. The financial markets are perhaps starting to believe that there might be great difficulty in getting a deal which will keep the government running. It's now banking on the fact that there may be a partial shutdown in departments to compensate. If that does happen, it won't be the first time ever. It happened for 5 days in 1995 and then again for 3 weeks in 1996. The debt ceiling will be a bigger problem than it was back then and it will shake the stock market into choppy volatility. If it happens, it will be short probably according to what most traders believe. If the discussion were about taxation or about spending, then it would be easier to hammer out a solution to the debt-ceiling issue. The crux of the matter is that it's Obamacare that is causing the rift. The discussions over it are ideological and politically-motivated. It's not a question of economics at all. The Dow Jones Industrial Average fell today by -49.71 to 15, 401.38 (that's a drop of 0.32%). Gold Gold has also come in for a hammering over the slowdown in both stimulus and the threat of money being cut off for the funding of Obamacare. The Federal Reserve didn't Septaper, contrary to what analysts had thought, but gold has continued to fall and has done for the past month now. Now that Septaper is behind us, there is talk of Octapercoming up. Are we going to be doing this until we rename every single month? It certainly makes the Federal Reserve lose credibility (if they still had any left after deciding to start the printing presses). Gold has dropped by 21% so far this year and not even the traditional metal can't bring trust of investors back today it would seem. Gold for immediate delivery stood at $1, 315.08 per ounce today in London (that's a drop of 0.6%). Silver also fell by 0.8% (immediate delivery) to $21.4795 an ounce in London this morning. Cost of Healthcare  Putting a cap on the growth of costs that are charged by the healthcare industry may be a good thing. How's it possible for the US to have one of the worst (in the sense that not everybody is covered by it and if you don't have money, you can't get easy access to it) health systems in the entire western world and yet at the same time have the most expensive one? Hey! There's something wrong there guys! They should have sat down and realized that long ago. Healthcare spending in the USA increased by an average of 3% per year between 2009 and 2011. Healthcare increased in price by roughly just less than 6% per year in the 1990s. Based upon current trends, healthcare in the USA will cost a staggering $770 billion to the public sector between 2013 and 2022. Costs in the healthcare industry are increasing at a faster rate than any wage increases that the majority of the population ends up with. Government employees will be getting 2.1% this year according to forecasts (although that may well change if the government gets forced to close down certain departments, even partially). The average American will end up paying about 3% to 9.5% of income on health insurance. 8% is considered by the US state as an acceptable percentage of your salary that is paid towards health insurance. It would be interesting to know if the population agrees with that. The American state cannot continue spending as if there were no tomorrow and just printing the greenbacks to fill in the gaps or paper over the cracks. The US administration can't continually increase the budget deficit as if it were not liable or accountable for that money just to win votes. But, the US doesn't do change for all its innovation and mine of resources available. But, Americans still do one thing with unfailing fidelity and due observance; that never changes: they still utterly believe in their ability to be right and above all to be doing the right thing. So, they will carry on spending.  Food: Walking the Breadline | Obama NOT Worst President in reply to Obama: Worst President in US History?  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

Chinese Housewives vs. Goldman Sachs: No Contest Posted: 24 Sep 2013 02:59 PM PDT Never mind the schizophrenic gene that would be required to follow the constantly fluctuating predictions of all these big banks; it’s amazing to me that anyone continues to listen to them after their abysmal record and long-standing anti-gold stance. Sure, the too-big-to-fails can move markets—but they say things that are good for them, not us. As an example, while Goldman Sachs was telling clients and the public to sell gold in the second quarter, they bought 3.7 million shares of GLD and became the ETF’s 7th largest holder. When I visited China two years ago, guess who no one was talking about? Goldman Sachs. There was news about the US, of course, but the regular diet of journalistic intake consisted of Chinese activity, not North American. And surprise, surprise, the view from that side of the big blue ball was materially different than what we hear and read here—and in some cases, the opposite. Not only has the average Chinese housewife, perhaps the most frugal and cautious species of savers in the world, probably never heard of Goldman Sachs and their call for $1,000 gold—if she had, she would think: 垃圾! (Rubbish!) Here’s some evidence. Since January 1, gold ETF holdings have fallen by roughly a quarter (26%, according to GFMS). But Chinese housewives aren’t refraining from buying and certainly aren't selling: The red dotted line represents the total outflows of GLD through last Tuesday. The gold bars are cumulative monthly imports of gold to China, through Hong Kong. You can see that China has absorbed roughly twice what most North American ETF holders have sold. It’s actually more than that, because we only have Hong Kong import data up to the end of July. But it’s even more dramatic than this. If you dig down into the data further, you find that cumulative gold imports through July surpassed the 26.7 million ounces (831 tonnes) that was imported to China for the whole of 2012. That means rather than being deterred from buying gold when its price was declining this year, the Chinese were snapping up the yellow metal as fast as they could. Further, last year Chinese miners produced 12.9 million ounces (403 tonnes) of gold, all of which stayed in the country. When you look at physical deliveries from the Shanghai Gold Exchange (SGE) vs. the COMEX and global mine production, you can see a clear trend this year: Deliveries at the SGE are significantly greater than those at the COMEX. Delivery ratios on the Comex have consistently been under 10%, in contrast to more than 30% on the SGE. Through June, the SGE has nearly matched all of last year’s total. What’s even more astonishing: year-to-date deliveries on the SGE are close to global mine production. In the first six months, delivery reached 35.3 million ounces (1,098 tonnes), just 20% less than what all gold companies mined last year. It is headlines like these that the Chinese read—not what Goldman Sachs writes. It’s not just the Chinese, of course. India, for now, is still the largest gold market. Despite relentless restrictions from her government, Mrs. Singh bought more gold jewelry and bullion last quarter than any other country. China and India accounted for almost 60% of the global gold jewelry sector last quarter, and roughly half of total bar and coin demand. Further, both countries saw almost 50% more consumer demand in the first half of the year compared to the same period in 2012. The two countries are again setting records… China purchased 8.8 million ounces (275 tonnes), 87% more than last year India bought 9.9 million ounces (310 tonnes), 71% more than 2012 It’s true that official Indian gold imports dropped in August, to just 0.08 million ounces (2.5 tonnes), a 95% plunge from July's volume of 1.5 million ounces (47.5 tonnes). It’s not yet clear, however, that Indian authorities have managed to subdue gold imports as they have been desperately trying to do; keep in mind the widespread reports of gold smuggling. Meanwhile, the wedding season is just ahead, so demand is likely to bounce back up. Physical demand also soared in Thailand, Indonesia, and Vietnam last quarter, with increases ranging from 20% to 40% being reported. Add it all up and the Asian/emerging countries comprise the lion’s share of consumer demand for gold, about 70%. It begs the question, are Asians just smarter than Goldman Sachs? If you find yourself agreeing more with Mrs. Chang than Goldman Sachs, you can snag two silver bullion products at a discounted premium in the current issue of BIG GOLD. You won’t find these prices elsewhere, and the savings could pay for your subscription. Product is still available, so join the Chinese gold rush and stock up while prices are down with a risk-free subscription to BIG GOLD.   What does this mean to us as investors? The structure of the gold market is changing. Gold is moving from the so-called “weak hands”—those who saw gold as a “trade” and/or were seeking quick profits—to “strong hands,” who see the big picure and are buying for the long term. Gold is moving west to east. You’ve heard this before, but the above data irrefutably points to this fact—and the trend shows no signs of letting up. The East will have an increasingly greater impact on price. As Asian countries take over more and more of the market, their influence on the price will only grow. The gold bull market is not over, regardless of what GS says. When I read their comments on the precious metals market, I sometimes wonder if they really understand it. But then again, do any of their analysts even own any gold? Mrs. Chang, I’m with you. By Jeff Clark, Senior Precious Metals Analyst

Gold Finds a Few Friends near $1300 Posted: 24 Sep 2013 02:58 PM PDT As many already know by now, gold had been moving steadily lower throughout the New York trading session when a late-in-that-session small wave of buying brought the market back off its worst levels and actually allowed it to trade on the plus side of unchanged for a brief moment. I am unclear as to what the reason was that caused the bounced but it did occur rather rapidly and without much fanfare or fresh news that I saw. My thinking is that some shorts who faded the move higher on the release of last week’s FOMC statement, decided to ring the cash register when the market traded down both into a technical support level on the chart. Also, the market had completely surrendered all of the gains it put on related to that same FOMC release and then some. Perhaps the thinking was to go ahead and book some gains and wait for another bounce higher into which to sell. It did not hurt gold also to have the HUI, which has been falling faster than Obama’s approval ratings, finally manage a bounce higher today. That, more than anything, seems to be to have been the catalyst for the move higher off of the lows at the Comex. Technically, market remains range bound between an overhead resistance zone noted on the chart and a support zone beneath the market which extends to psychological support at round number $1300 and to just below that level which is where the market bounced early in the session last Wednesday when the FOMC statement was released. For gold to have a chance at moving higher now, it will need to take out that $1332 level. Whether it is setting up a large range trade between $1375 and $1305 or so remains to be seen. If it is repelled by $1332 – $1330, it will be seen as a strongly bearish reaction. If that is the case, I would look for aggressive selling that will test the bottom of support down near $1296. The bulls bought themselves a bit of time today but they have a lot of work to attract some fresh converts to their cause. With copper and silver both lower today, with crude oil moving lower and with the grains not managing more than a bounce higher at this point, any inflation issues that might be seen originating from the commodity complex are nowhere in sight at the present time. Also, in what has to amount to an amazing slight of hand feat, the Fed, through its various talking heads, has managed to drive down that all important yield on the Ten Year Treasury note away from what I believe they are viewing is the DANGER ZONE of 3.0% yield. More than anything else, I believe that they are watching this very closely and will fine tune their comments and statements into corralling this particular instrument. Expect to see the DOVES appear on any approaches by the Ten Year back to that level. Along that line, I believe gold will be ultra sensitive to this as well since it was talk about a rising interest rate environment that has been hurting the yellow metal. (original source: Dan Norcini’s personal blog)

The West Will Regret All Its Financial Policies Someday Soon – Sprott Posted: 24 Sep 2013 02:37 PM PDT THE MATTERHORN INTERVIEW – September 2013: Eric Sprott   "The West Will Regret All Its Financial Policies Someday Soon"   For the September 2013 Matterhorn Interview Lars Schall interviews Eric Sprott. We are obviously extremely pleased to feature Eric Sprott this month. He needs no introduction and is a Grandee in the precious metals markets. There are very few people who understand this market better than Eric. In this interview Eric Sprott covers several hot topics such as the obvious manipulation of gold and the fact that Central Banks will eventually lose the battle. He also says that the West will regret all their policies and that these policies will lead to defaults and non-payment of commitments. Eric is very clear that there will never be an audit of the US gold and that most of it is probably not there. Silver is Eric's favourite investment and he explains why it will outperform gold. He also gives a forecast for gold and silver in the next 12 months. The below video podcast with Eric Sprott has depth and is a must listen. Egon von Greyerz

Gold bars worth £1.35m stolen on Air France flight to Zurich from Paris Posted: 24 Sep 2013 01:50 PM PDT Air France has filed a complaint with French prosecutors after gold bars worth around €1.6m (£1.35m) were stolen from a plane bound for Zurich from Paris. This posting includes an audio/video/photo media file: Download Now

Gold Daily and Silver Weekly Charts - A Quiet Option Expiration with a Few Hijinks Posted: 24 Sep 2013 01:35 PM PDT

Gold Daily and Silver Weekly Charts - A Quiet Option Expiration with a Few Hijinks Posted: 24 Sep 2013 01:35 PM PDT

James Rickards: “When The International Monetary System Collapses—It’s Going To Be About How Much Gold You Have” Posted: 24 Sep 2013 01:14 PM PDT I had the chance to reconnect with James G. Rickards, Senior Managing Director of Tangent Capital and author of the New York Times Bestseller, Currency Wars: The Making Of The Next Global Crisis. It was a fascinating conversation, as James indicated that the U.S. Fed is manipulating every market in the world in an attempt to abort the country's first depression since the 1930's. As a consequence, he notes that emerging countries are abandoning paper currencies in favor of physical gold, in anticipation of a collapse in the international monetary system. Speaking towards the recent non-tapering and continued Fed stimulus, James explained that This posting includes an audio/video/photo media file: Download Now

Gold: Options Expiry Mouse Versus Asian Tiger Posted: 24 Sep 2013 12:21 PM PDT Graceland Update

The Fed’s Taper-Free Recipe for Market Rally Posted: 24 Sep 2013 11:59 AM PDT Last week, I was in Manhattan for the Value Investing Congress. (I'll have more on the idea-packed two-day conference another time.) And on Wednesday morning, I stopped in at Fox studios to talk about what the Fed was going to do at 2 o'clock. What happened at 2 o'clock turned out to be a surprise to nearly everyone. It was also another absurd moment in what is becoming an increasingly dysfunctional and silly market. The whole thing has taken on the feel of a farce. To review: Everyone expected the Fed to begin to "taper" its $85 billion monthly bond buying stimulus program. The original idea for the dumb money-printing experiment was to boost the economy. I love the chart put out by Zero Hedge on Wednesday, which showed the growth in the Fed's balance sheet compared with job growth. (As the Fed prints money, its balance sheet grows.) Take a look: Ha! We can add to this that the median household income in the U.S. has also gone nowhere. The Fed's program has been an expensive failure. The only thing it's done is set off another asset bubble, which we will pay for later. Yet there are still plenty of apologists for it. Anyway, the Fed started the taper talk back in May. The market was expecting a $10-15 billion pullback. Instead, as you now know, the Fed surprised everyone. No taper! The market rallied immediately. Just about everything went up. Stocks hit a new all-time high. Homebuilders had their biggest one-day jump since June of last year. Gold had its best day since January 2009. The only things that dropped, it seemed, were the U.S. dollar and interest rates. This has to be one of the most transparently fake rallies of all time. It shows how corrupted and unreal the whole market process has become. Notice what we're not focusing on. Stocks went up not because of great earnings or dividends or any fundamental reason. They went up because the Fed said it would continue to print a bunch of money. So far, our cautious approach this year has been completely wrong. It would have been better if we just bought whatever junk looked decent and had a tradable ticker. But the game is not over yet… For example, it was nearly impossible to get a hotel on Tuesday night in Manhattan. I had originally planned to come back home on Tuesday, but Fox invited me to appear on TV Wednesday morning. I decided to do that, but had to add a night's stay. Turns out there was some United Nations event starting on Wednesday. A sea of delegates and other parasites descended on Manhattan, soaking up hotel rooms and jacking up the price for everything. I finally found a room at Le Parker Meridien on Hotels.com and paid over $600 for one night! It was a great room and a nice hotel, but clearly a product of a temporary surge of buying. See where I'm going with this as it relates to the Fed? At some point, the Fed will have to taper. And when it does, the Fed-suppressed interest rates will go higher. The stock market, propped up by low rates, ought to come down. Besides that, the market itself is bereft of bargains. In my talk at the Value Investing Congress last Tuesday, I opened with a couple of anecdotes. First, I pointed out that Baupost Group, led by super-investor Seth Klarman, will give money back to clients at the end of the year for only the second time in its 31-year history. The reason is simple: lack of opportunities. And the DR PRO's Ryan O'Connor, who is a member of the highly respected Value Investors Club, sent an email to me pointing out that the club's bargain meter is at an all-time low, with 70% of club members saying bargains are "few." The other options are "average" (29%) and "many" (2%). If you care about downside risk (and if you care about getting value for what you pay), then these are two meaningful anecdotes. They are caution flags. There is also still the matter of another looming fiscal cliff… As economist John Williams pointed out in a ShadowStats note last week, these issues have been napping for two years and "are about to explode." He writes: "Washington is within weeks of having to deal with all the unresolved fiscal and debt-ceiling issues that have been pushed repeatedly into the future. Whatever actions are taken — even attempts at further delayed action — should have negative impact on the dollar. There is no chance of action that would resolve the fiscal crisis." Having said that, there are always things to do. The Value Investing Congress was evidence of that as speakers turned up several good ideas. And our Capital & Crisis portfolio still has several attractive "CODE"-meeting names. There are just fewer of them as markets climb on Fed-inspired jet fuel. I was in a cab inching its way down the canyons of Manhattan and kept thinking what ugliness might lie ahead in the market. The glitz and lights of Manhattan under an ominous gray sky served as a good metaphor for the contrasts in the market as well — all rallies and record highs, yet I don't like the look of that stormy sky overhead… So I plan to stick with a careful and cautious approach. Regards, Chris Mayer for The Daily Reckoning P.S. Even though I’m cautious, that doesn’t mean I’m staying out of the market altogether. Quite the opposite in fact. There are still plenty of sound investments out there, you just have to be judicious in selecting them. As I said above, my Capital & Crisis portfolio still has several names I’m confident in. And readers of The Daily Reckoning email recently had the chance to discover that for themselves. If you’re not a Daily Reckoning email reader, you’re missing out on the whole story… and all the opportunities at actionable advice that come with it. Sign up for FREE, right here, and start getting the full story.

Current Debt Trajectory Will Lead To Western Disintegration Posted: 24 Sep 2013 11:57 AM PDT In the aftermath of last week's disaster for the Fed, today Canadian legend John Ing warned King World News that the current debt trajectory will lead to Western disintegration and soaring gold prices. Ing, who has been in the business for 43 years, also spoke about the devastating situation the Fed now faces as the world gets closer to turning its back on the US. Below is what the 43 year market veteran had to say in this powerful interview. This posting includes an audio/video/photo media file: Download Now

Gold and Oil: Which Has a Better Upside Potential? Posted: 24 Sep 2013 11:26 AM PDT Last week, after the Fed said it would stick to its stimulus plan for now, the yellow metal gained more than 4%, leading the rally in commodities, and rose to a new one-week high. At the same time crude oil extended earlier increases and ... Read More...

Gold Posted: 24 Sep 2013 11:13 AM PDT In last week's commentary I wrote that I was expecting a rally to begin based on a 40-day cycle pointing to a low the previous Friday. The bottom didn't come until Tuesday last week but that was also the beginning of a 62 point rally. Read More...

Goldman Who? Posted: 24 Sep 2013 11:02 AM PDT Ask Chinese buyers if they care about Goldman Sachs' gold investment forecasts...   SO GOLDMAN SACHS is once again predicting that gold will fall, setting a new near-term target of $1050, writes Jeff Clark at Casey Research.   Never mind the schizophrenic gene that would be required to follow the constantly fluctuating predictions of all these big banks; it's amazing to me that anyone continues to listen to the investment banks after their abysmal record and long-standing anti-gold stance.   Sure, the too-big-to-fails can move markets – but they say things that are good for them, not us. As an example, while Goldman Sachs was telling clients and the public to sell gold investments in the second quarter, they bought 3.7 million shares of GLD and became the ETF's 7th largest holder.   When I visited China two years ago, guess who no one was talking about? Goldman Sachs.   There was news about the US, of course, but the regular diet of journalistic intake consisted of Chinese activity, not North American. And surprise, surprise, the view from that side of the big blue ball was materially different than what we hear and read here – and in some cases, the opposite.   Not only has the average Chinese housewife, perhaps the most frugal and cautious species of savers in the world, probably never heard of Goldman Sachs and their call for $1000 gold – if she had, she would think: 垃圾! (Rubbish!)   Here's some evidence. Since January 1, Gold ETF holdings have fallen by roughly a quarter (26% according to GFMS). But Chinese housewives aren't refraining from buying and certainly aren't selling:     The red dotted line represents the total outflows of GLD through last Tuesday. The gold bars are cumulative monthly imports of gold to China, through Hong Kong. You can see that China has absorbed roughly twice what most North American ETF holders have sold. It's actually more than that, because we only have Hong Kong import data up to the end of July.   But it's even more dramatic than this. If you dig down into the data further, you find that cumulative gold imports through July surpassed the 26.7 million ounces (831 tonnes) that was imported to China for the whole of 2012.   That means rather than being deterred from buying gold when its price was declining this year, the Chinese were snapping up the yellow metal as fast as they could. Further, last year Chinese miners produced 12.9 million ounces (403 tonnes) of gold, all of which stayed in the country.   When you look at physical deliveries from the Shanghai Gold Exchange (SGE) vs. the COMEX and global mine production, you can see a clear trend this year:     Deliveries at the SGE are significantly greater than those at the COMEX. Delivery ratios on the Comex have consistently been under 10%, in contrast to more than 30% on the SGE. Through June, the SGE has nearly matched all of last year's total.   What's even more astonishing: year-to-date deliveries on the SGE are close to global mine production. In the first six months, delivery reached 35.3 million ounces (1,098 tonnes), just 20% less than what all gold companies mined last year.   It is headlines like these that the Chinese read – not what Goldman Sachs writes.   It's not just the Chinese, of course. India, for now, is still the largest gold market. Despite relentless restrictions from her government, Mrs. Singh bought more gold jewelry and bullion last quarter than any other country.     China and India accounted for almost 60% of the global gold jewelry sector last quarter, and roughly half of total bar and coin demand. Further, both countries saw almost 50% more consumer demand in the first half of the year compared to the same period in 2012.   The two countries are again setting records... China purchased 8.8 million ounces (275 tonnes), 87% more than last year; India bought 9.9 million ounces (310 tonnes), 71% more than 2012. It's true that official Indian gold imports dropped in August, to just 0.08 million ounces (2.5 tonnes), a 95% plunge from July's volume of 1.5 million ounces (47.5 tonnes). It's not yet clear, however, that Indian authorities have managed to subdue gold imports as they have been desperately trying to do; keep in mind the widespread reports of gold smuggling. Meanwhile, the wedding season is just ahead, so demand is likely to bounce back up.   Physical demand also soared in Thailand, Indonesia, and Vietnam last quarter, with increases ranging from 20% to 40% being reported. Add it all up and the Asian/emerging countries comprise the lion's share of consumer demand for gold, about 70%.   It begs the question, are Asians just smarter than Goldman Sachs? And what does this mean to us as investors?   The structure of the gold market is changing. Gold is moving from the so-called "weak hands" – those who saw gold as a "trade" and/or were seeking quick profits – to "strong hands," who see the big picure and are buying for the long term.   Gold is moving west to east. You've heard this before, but the above data irrefutably points to this fact – and the trend shows no signs of letting up.   The East will have an increasingly greater impact on price. As Asian countries take over more and more of the market, Asia's influence on the gold price will only grow.   The gold bull market is not over, regardless of what GS says. When I read their comments on the precious metals market, I sometimes wonder if they really understand it. But then again, do any of their analysts even own any gold?   Mrs. Chang, I'm with you.

Goldman Who? Posted: 24 Sep 2013 11:02 AM PDT Ask Chinese buyers if they care about Goldman Sachs' gold investment forecasts...   SO GOLDMAN SACHS is once again predicting that gold will fall, setting a new near-term target of $1050, writes Jeff Clark at Casey Research.   Never mind the schizophrenic gene that would be required to follow the constantly fluctuating predictions of all these big banks; it's amazing to me that anyone continues to listen to the investment banks after their abysmal record and long-standing anti-gold stance.   Sure, the too-big-to-fails can move markets – but they say things that are good for them, not us. As an example, while Goldman Sachs was telling clients and the public to sell gold investments in the second quarter, they bought 3.7 million shares of GLD and became the ETF's 7th largest holder.   When I visited China two years ago, guess who no one was talking about? Goldman Sachs.   There was news about the US, of course, but the regular diet of journalistic intake consisted of Chinese activity, not North American. And surprise, surprise, the view from that side of the big blue ball was materially different than what we hear and read here – and in some cases, the opposite.   Not only has the average Chinese housewife, perhaps the most frugal and cautious species of savers in the world, probably never heard of Goldman Sachs and their call for $1000 gold – if she had, she would think: 垃圾! (Rubbish!)   Here's some evidence. Since January 1, Gold ETF holdings have fallen by roughly a quarter (26% according to GFMS). But Chinese housewives aren't refraining from buying and certainly aren't selling:     The red dotted line represents the total outflows of GLD through last Tuesday. The gold bars are cumulative monthly imports of gold to China, through Hong Kong. You can see that China has absorbed roughly twice what most North American ETF holders have sold. It's actually more than that, because we only have Hong Kong import data up to the end of July.   But it's even more dramatic than this. If you dig down into the data further, you find that cumulative gold imports through July surpassed the 26.7 million ounces (831 tonnes) that was imported to China for the whole of 2012.   That means rather than being deterred from buying gold when its price was declining this year, the Chinese were snapping up the yellow metal as fast as they could. Further, last year Chinese miners produced 12.9 million ounces (403 tonnes) of gold, all of which stayed in the country.   When you look at physical deliveries from the Shanghai Gold Exchange (SGE) vs. the COMEX and global mine production, you can see a clear trend this year:     Deliveries at the SGE are significantly greater than those at the COMEX. Delivery ratios on the Comex have consistently been under 10%, in contrast to more than 30% on the SGE. Through June, the SGE has nearly matched all of last year's total.   What's even more astonishing: year-to-date deliveries on the SGE are close to global mine production. In the first six months, delivery reached 35.3 million ounces (1,098 tonnes), just 20% less than what all gold companies mined last year.   It is headlines like these that the Chinese read – not what Goldman Sachs writes.   It's not just the Chinese, of course. India, for now, is still the largest gold market. Despite relentless restrictions from her government, Mrs. Singh bought more gold jewelry and bullion last quarter than any other country.     China and India accounted for almost 60% of the global gold jewelry sector last quarter, and roughly half of total bar and coin demand. Further, both countries saw almost 50% more consumer demand in the first half of the year compared to the same period in 2012.   The two countries are again setting records... China purchased 8.8 million ounces (275 tonnes), 87% more than last year; India bought 9.9 million ounces (310 tonnes), 71% more than 2012. It's true that official Indian gold imports dropped in August, to just 0.08 million ounces (2.5 tonnes), a 95% plunge from July's volume of 1.5 million ounces (47.5 tonnes). It's not yet clear, however, that Indian authorities have managed to subdue gold imports as they have been desperately trying to do; keep in mind the widespread reports of gold smuggling. Meanwhile, the wedding season is just ahead, so demand is likely to bounce back up.   Physical demand also soared in Thailand, Indonesia, and Vietnam last quarter, with increases ranging from 20% to 40% being reported. Add it all up and the Asian/emerging countries comprise the lion's share of consumer demand for gold, about 70%.   It begs the question, are Asians just smarter than Goldman Sachs? And what does this mean to us as investors?   The structure of the gold market is changing. Gold is moving from the so-called "weak hands" – those who saw gold as a "trade" and/or were seeking quick profits – to "strong hands," who see the big picure and are buying for the long term.   Gold is moving west to east. You've heard this before, but the above data irrefutably points to this fact – and the trend shows no signs of letting up.   The East will have an increasingly greater impact on price. As Asian countries take over more and more of the market, Asia's influence on the gold price will only grow.   The gold bull market is not over, regardless of what Goldman Sachs says. When I read their comments on the precious metals market, I sometimes wonder if they really understand it. But then again, do any of their analysts even own any gold?   Mrs. Chang, I'm with you.

Chinese Housewives vs. Goldman Sachs: No Contest Posted: 24 Sep 2013 11:00 AM PDT Chinese Housewives vs. Goldman Sachs: No Contest By Jeff Clark, Senior Precious Metals Analyst Goldman Sachs is once again predicting that gold will fall, setting a new near-term target of $1,050.   Never mind the schizophrenic gene that would be required to follow the constantly fluctuating predictions of all these big banks; it’s amazing to […]

Gold: Options Expiry Mouse Versus Asian Tiger Posted: 24 Sep 2013 11:00 AM PDT Is sizable QE tapering really going to happen? Perhaps, but the Fed has based the implementation of tapering on a consistent drop in the employment rate, and a steady increase in the housing market. Read More...

Gold Price $2000 "Inside a Year" Posted: 24 Sep 2013 10:57 AM PDT There are "good reasons" gold could reach $2000 in 12 months, says this award-winning precious metals fund manager...   CHARLES OLIVER of Sprott Asset Management is lead portfolio manager of their Gold and Precious Minerals Fund.   Previously part of AGF Management's award-winning precious metals team, Charles Oliver has also received Lipper Awards' best five-year return in the Precious Metals category, plus the Lipper award for best one-year return in the Precious Metals category for 2010.   Here, and speaking to The Gold Report, Sprott's Charles Oliver now says the fundamentals are in place for gold to rebound from its 2013 downturn – possibly topping $2000 per ounce in the next year...   The Gold Report: Charles, you believe that the gold price has bottomed and that the yellow metal will finish the year much higher than where it is now. You and others at Sprott have never wavered in your beliefs, even as others have exited the gold space en masse. Please tell our readers why you believe your faith is about to be rewarded.   Charles Oliver: We've seen some positive signs in the market this summer. It looks as if gold has been in the bottoming phase for some time. Valuations are incredibly cheap. There's been continued debasement of currencies, which has been a driver all along. There's talk of cutting back on quantitative easing, yet the government continues to print aggressive amounts of money.   During the recent downturn in the gold price, there was significant buying from places like Asia. The Chinese and its counterparts continue to buy gold and silver when the price comes off, as we saw this past spring, and also as stocks rise.   Fundamentally, everything looks very good for gold. The pullback in the gold price, from the high of $1921 per ounce to $1180, is reminiscent of 1974 to 1976. During that time, there was a big pullback of almost 50% in the gold market followed by a rise from $100 per ounce in 1976 to $850 in 1980.   TGR: You're about to head out on a marketing tour and visit some potential projects. Do you believe those reasons we just discussed are saleable?   Charles Oliver: Absolutely. One of the reasons I didn't do much marketing last year was that it was a terrible time to market. People didn't want to hear about gold because it was going down. It's tough to get people to buy when they're scared. Having said that, those times often present the best opportunities. I feel it's good to go out and get in front of our unit holders and tell them why they should hold on if they're having any doubts or, if they're not in doubt, to build a position.   TGR: Do you still believe the gold price will get beyond $2000 per ounce in the foreseeable future?   Charles Oliver: I firmly believe gold will be beyond $2000. The only question is when. There have been some predictions within the Sprott organization that the gold price could go beyond $2000 within the next 12 months. There are real reasons behind why that could happen. I don't know if it will. The timing is one of the toughest things to figure out.   Yet, the fall in the gold price in the face of massive quantitative easing did not make sense. It's only a matter of time.   TGR: You've been even more bullish on silver than gold in the past. Has that changed?   Charles Oliver: It hasn't changed. Over the next five years, I expect the silver price will outperform the gold price. During the last 2,000 years, the silver/gold ratio was at 16:1 about 90% of the time. That means that if gold is $1600 per ounce, which isn't far away, the silver price would likely be $100 per ounce. The current silver price would have to increase more than fourfold to get to that historic norm. The last time that it reached the norm was in 1980 when the silver price reached $50 per ounce and the gold price was $850 per ounce, or a ratio of 17:1.   TGR: Do you think we're going to get back there?   Charles Oliver: It's going in that direction. Whether or not we get actually to 17:1 – whether or not we overshoot – depends on many different things. However, the current level is closer to 60:1.   TGR: What's Sprott's position on the platinum group metals?   Charles Oliver: We are bullish on platinum group metals. The fundamentals are favorable. The supply side is strong. Most of the supply of platinum and palladium is in South Africa, which is undergoing a lot of strikes, strife and challenges. There's been talk about shutdowns.   The demand side is also strong. One of the key uses for these metals is for catalytic converters in cars to reduce pollution. I was in Beijing recently and there was a huge amount of smog. The Chinese government has announced a plan to increase emission standards, which means each car sold will need more platinum or palladium.   On top of that, the growth of car ownership in China during the past 20 years is up about tenfold, from about 1 million cars a year to around 10 million cars a year, and is continuing to grow at an aggressive clip. The supply-demand side of the equation looks very positive.   TGR: You've made a living seeing opportunities where others see problems or too much risk. Which category do the labor issues in South Africa fall into?   Charles Oliver: It's very hard to understand what's going to happen in South Africa. I don't currently have any investments in platinum/palladium miners in South Africa, but I have in the past. I am fearful of events that might unfold and what kind of impact they might have on the companies. I prefer to invest in the bullion or in a limited number of companies outside of South Africa.   TGR: Are there some new companies that Sprott is working with that our readers should know about?   Charles Oliver: I'm always looking for new companies. In fact, during the next couple of weeks, I'm going to be meeting with many new companies. Until they're an existing position in the portfolio, I can't talk about which ones they are, unfortunately. That's the secret sauce!   TGR: Every mining stock portfolio has taken a few hits during the past couple of years. How would you respond when someone asks why you stay in the small-cap mining space?    Charles Oliver: I've made my name on the long-term performance of small-cap mining. We make mistakes and learn from them. There are mining cycles. I try and adjust my weightings in certain sectors periodically when I believe one sector will be in favor or out of favor. Hopefully, next time I'll do a better job of recognizing when the big downturn is coming in small caps. However, when the Federal Reserve increased quantitative easing from $45 billion to $85 billion a month, I believed that it was time to start investing in small-cap names. Clearly the market has gone down since then. I don't think that was logical. Even if I were to go back in time, I'd react exactly the same way. We won't get it perfectly, but we try to outperform on a long-term basis.   TGR: What about someone who argues with you on the basis of the lack of liquidity?   Charles Oliver: Liquidity is something you've got to manage. I hold about a third of my portfolio in large caps and a third in mid-caps on a full-cycle basis. I do that because I need to maintain liquidity. If an investor can be locked in for five to seven years, I would suggest a larger holding in small caps. If liquidity isn't an issue, small caps are the best place to be.   TGR: What can you leave us with to buoy our spirits?   Charles Oliver: My father always used to tell me that after the bad times, the good times come. It has been very tough out there for the last couple of years. I know a lot of investors have given up and thrown in the towel. There's been a lot of blood in the streets. But the fundamentals all add up. It's not going to be much longer before we get back to those good times. Hang in there. Valuations are great and the fundamentals continue to be very positive.

Gold Price $2000 "Inside a Year" Posted: 24 Sep 2013 10:57 AM PDT There are "good reasons" gold could reach $2000 in 12 months, says this award-winning precious metals fund manager...   CHARLES OLIVER of Sprott Asset Management is lead portfolio manager of their Gold and Precious Minerals Fund.   Previously part of AGF Management's award-winning precious metals team, Charles Oliver has also received Lipper Awards' best five-year return in the Precious Metals category, plus the Lipper award for best one-year return in the Precious Metals category for 2010.   Here, and speaking to The Gold Report, Sprott's Charles Oliver now says the fundamentals are in place for gold to rebound from its 2013 downturn – possibly topping $2000 per ounce in the next year...   The Gold Report: Charles, you believe that the gold price has bottomed and that the yellow metal will finish the year much higher than where it is now. You and others at Sprott have never wavered in your beliefs, even as others have exited the gold space en masse. Please tell our readers why you believe your faith is about to be rewarded.   Charles Oliver: We've seen some positive signs in the market this summer. It looks as if gold has been in the bottoming phase for some time. Valuations are incredibly cheap. There's been continued debasement of currencies, which has been a driver all along. There's talk of cutting back on quantitative easing, yet the government continues to print aggressive amounts of money.   During the recent downturn in the gold price, there was significant buying from places like Asia. The Chinese and its counterparts continue to buy gold and silver when the price comes off, as we saw this past spring, and also as stocks rise.   Fundamentally, everything looks very good for gold. The pullback in the gold price, from the high of $1921 per ounce to $1180, is reminiscent of 1974 to 1976. During that time, there was a big pullback of almost 50% in the gold market followed by a rise from $100 per ounce in 1976 to $850 in 1980.   TGR: You're about to head out on a marketing tour and visit some potential projects. Do you believe those reasons we just discussed are saleable?   Charles Oliver: Absolutely. One of the reasons I didn't do much marketing last year was that it was a terrible time to market. People didn't want to hear about gold because it was going down. It's tough to get people to buy when they're scared. Having said that, those times often present the best opportunities. I feel it's good to go out and get in front of our unit holders and tell them why they should hold on if they're having any doubts or, if they're not in doubt, to build a position.   TGR: Do you still believe the gold price will get beyond $2000 per ounce in the foreseeable future?   Charles Oliver: I firmly believe gold will be beyond $2000. The only question is when. There have been some predictions within the Sprott organization that the gold price could go beyond $2000 within the next 12 months. There are real reasons behind why that could happen. I don't know if it will. The timing is one of the toughest things to figure out.   Yet, the fall in the gold price in the face of massive quantitative easing did not make sense. It's only a matter of time.   TGR: You've been even more bullish on silver than gold in the past. Has that changed?   Charles Oliver: It hasn't changed. Over the next five years, I expect the silver price will outperform the gold price. During the last 2,000 years, the silver/gold ratio was at 16:1 about 90% of the time. That means that if gold is $1600 per ounce, which isn't far away, the silver price would likely be $100 per ounce. The current silver price would have to increase more than fourfold to get to that historic norm. The last time that it reached the norm was in 1980 when the silver price reached $50 per ounce and the gold price was $850 per ounce, or a ratio of 17:1.   TGR: Do you think we're going to get back there?   Charles Oliver: It's going in that direction. Whether or not we get actually to 17:1 – whether or not we overshoot – depends on many different things. However, the current level is closer to 60:1.   TGR: What's Sprott's position on the platinum group metals?   Charles Oliver: We are bullish on platinum group metals. The fundamentals are favorable. The supply side is strong. Most of the supply of platinum and palladium is in South Africa, which is undergoing a lot of strikes, strife and challenges. There's been talk about shutdowns.   The demand side is also strong. One of the key uses for these metals is for catalytic converters in cars to reduce pollution. I was in Beijing recently and there was a huge amount of smog. The Chinese government has announced a plan to increase emission standards, which means each car sold will need more platinum or palladium.   On top of that, the growth of car ownership in China during the past 20 years is up about tenfold, from about 1 million cars a year to around 10 million cars a year, and is continuing to grow at an aggressive clip. The supply-demand side of the equation looks very positive.   TGR: You've made a living seeing opportunities where others see problems or too much risk. Which category do the labor issues in South Africa fall into?   Charles Oliver: It's very hard to understand what's going to happen in South Africa. I don't currently have any investments in platinum/palladium miners in South Africa, but I have in the past. I am fearful of events that might unfold and what kind of impact they might have on the companies. I prefer to invest in the bullion or in a limited number of companies outside of South Africa.   TGR: Are there some new companies that Sprott is working with that our readers should know about?   Charles Oliver: I'm always looking for new companies. In fact, during the next couple of weeks, I'm going to be meeting with many new companies. Until they're an existing position in the portfolio, I can't talk about which ones they are, unfortunately. That's the secret sauce!   TGR: Every mining stock portfolio has taken a few hits during the past couple of years. How would you respond when someone asks why you stay in the small-cap mining space?    Charles Oliver: I've made my name on the long-term performance of small-cap mining. We make mistakes and learn from them. There are mining cycles. I try and adjust my weightings in certain sectors periodically when I believe one sector will be in favor or out of favor. Hopefully, next time I'll do a better job of recognizing when the big downturn is coming in small caps. However, when the Federal Reserve increased quantitative easing from $45 billion to $85 billion a month, I believed that it was time to start investing in small-cap names. Clearly the market has gone down since then. I don't think that was logical. Even if I were to go back in time, I'd react exactly the same way. We won't get it perfectly, but we try to outperform on a long-term basis.   TGR: What about someone who argues with you on the basis of the lack of liquidity?   Charles Oliver: Liquidity is something you've got to manage. I hold about a third of my portfolio in large caps and a third in mid-caps on a full-cycle basis. I do that because I need to maintain liquidity. If an investor can be locked in for five to seven years, I would suggest a larger holding in small caps. If liquidity isn't an issue, small caps are the best place to be.   TGR: What can you leave us with to buoy our spirits?   Charles Oliver: My father always used to tell me that after the bad times, the good times come. It has been very tough out there for the last couple of years. I know a lot of investors have given up and thrown in the towel. There's been a lot of blood in the streets. But the fundamentals all add up. It's not going to be much longer before we get back to those good times. Hang in there. Valuations are great and the fundamentals continue to be very positive.

Fifty Shades of Gold Posted: 24 Sep 2013 10:52 AM PDT Goldman Sachs created a stir recently when it forecasted that gold would fall to $1,000 an ounce by the end of 2014, as the firm expected the Federal Reserve to reduce its bond buying program. Goldman also suggested that gold miners ... Read More...

Chinese Housewives vs. Goldman Sachs: No Contest Posted: 24 Sep 2013 10:12 AM PDT Goldman Sachs is once again predicting that gold will fall, setting a new near-term target of $1,050. Never mind the schizophrenic gene that would be required to follow the constantly fluctuating predictions of all these ... Read More...

Denmark 20 Kroner/$20 Lib MS64 Special Nearly Sold Out Posted: 24 Sep 2013 09:48 AM PDT Update 9/24 – 10:30 A.M. Our special offer is nearly sold out. Only 43 Denmark 20 Kroner gold coins remain, and only 2 Mermaids up for grabs to any takers of 20 coins or more. 6 MS64 $20 Liberty gold coins remain at our special pricing. If you have an interest, call our trading desk before these items sell out: 1-800-869-5115×100 Thank you to all who have participated.

Denmark/US$20 Liberty MS64 Special Nearly Sold Out Posted: 24 Sep 2013 09:46 AM PDT Update 9/24 – 10:30 A.M. Our special offer is nearly sold out. Only 43 Denmark 20 Kroner gold coins remain, and only 2 Mermaids up for grabs to any takers of 20 coins or more. 6 MS64 $20 Liberty gold coins remain at our special pricing. If you have an interest, call our trading desk before these items sell out: 1-800-869-5115×100 Thank you to all who have participated.

Calm Before The Storm As The World Heads Into 2nd Meltdown Posted: 24 Sep 2013 09:27 AM PDT With continued uncertainty in global markets, today acclaimed money manager Stephen Leeb warned King World News that what we are seeing right now is the "calm before the storm" as the world heads dangerously into a second "meltdown." Below is what the acclaimed money manager had to say in this candid interview. This posting includes an audio/video/photo media file: Download Now

Gold and Oil: Which Has a Better Upside Potential? Posted: 24 Sep 2013 09:11 AM PDT Last week, after the Fed said it would stick to its stimulus plan for now, the yellow metal gained more than 4%, leading the rally in commodities, and rose to a new one-week high. At the same time crude oil extended earlier increases and finally gained over 2% on Wednesday. However, during this euphoric rally, investors overlooked that it was fueled by a weaker economic outlook from the Fed. Therefore, the improvement didn't last long and we saw a quick profit-taking during the last two sessions of the week. In this way, gold gave back almost 60% of the previous sessions' gains and dropped to $1,325 an ounce on Friday. What's interesting, at the same time light crude has declined sharply, erased all September's gains and reached a new week low.

Fifty Shades of Gold Posted: 24 Sep 2013 09:06 AM PDT Goldman Sachs created a stir recently when it forecasted that gold would fall to $1,000 an ounce by the end of 2014, as the firm expected the Federal Reserve to reduce its bond buying program. Goldman also suggested that gold miners might want to hedge their output, locking in 2013 prices.

Manipulation, gold and the decline of the dollar – Sprott Posted: 24 Sep 2013 08:58 AM PDT According to Sprott Asset Management CEO, Eric Sprott, sooner or later the unintended consequences of QE will come into play, the biggest being the decline in the US dollar Read more….

Gold set to vault up from downturn – Oliver Posted: 24 Sep 2013 08:58 AM PDT According to Charles Oliver, senior portfolio manager with Sprott Asset Management, the fundamentals are in place for gold to move significantly—possibly topping $2,000/oz. An interview with The Gold Report. Read more….

What You Need to Know About the U.S. Budget Deficit & National Debt Posted: 24 Sep 2013 08:53 AM PDT Q: Don’t laugh at me, but what is a deficit? A: It’s actually not a dumb question. Here’s why. So writes Dylan Matthews (washingtonpost.com/blogs/wonkblog/) in edited excerpts from his original article* entitled Everything you need to know about the deficit. [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.] Matthews goes on to say in further edited excerpts: There are plenty of deficits that federal economic policymakers have to keep track of. There’s the current account deficit, the closely related trade deficit and the budget deficit that we’re going to discuss here which is the gap between the amount of money that the federal government is taking in… and the amount it’s spending. Do we usually have a deficit? Yes. For most of American history, we’ve been spending more than we take in, meaning we run deficits. For brief moments in the late 1960s and late 1990s we took in more than we spent, meaning we had surpluses, but surpluses are rare. How big is the deficit? The 2013 deficit is 3.9% of GDP, or 2.5% if you exclude interest payments. That works out to roughly $642 billion. Is it going up or down? The deficit’s definitely going down, as this chart from the latest CBO budget projections demonstrates, but will start growing again in a few years: As a consequence, the debt load is expected to keep increasing: Are the deficit and the debt the same thing? No. The deficit is the difference between revenues and spending in any given year. The debt is the total amount the U.S. has borrowed and still has to pay back. How much debt do we have? Debt held by the public (that is, not held by the government itself in trust funds and the like) is about $12 trillion, or 73% of GDP. That’s lower than the UK, France, Germany, Canada, Italy, or (especially) Japan, but larger than many Nordic countries, Australia, and South Korea. Is borrowing all that money bad? Depends how much interest you’re paying. If we always paid below-inflation interest rates, then we’d be crazy not to borrow but sometimes interest rates can creep much higher. In 1984, real interest rates stopped just short of reaching 10%. That not only makes that year’s borrowing more expensive, it makes past borrowing more expensive, since debt is frequently rolled over; that is, past creditors are paid back with money borrowed from new creditors. If the rate at rollover is higher than the rate when the money was originally borrowed, then that old debt starts to cost more. Does having a lot of debt hurt growth? We don’t really know. What evidence has been marshaled for this proposition, however, is remarkably weak. The best-known evidence was provided by a working paper from Harvard’s Carmen Reinhart and Kenneth Rogoff, which argued that high debt loads (in particular loads above 90%) are correlated with slower growth. The biggest problem with this is that it’s unclear from their data whether the high debt is causing the slow growth, or if it’s the other way around. "This Time is Different: Eight Centuries of Financial Folly" – A Book by Reinhart and Rogoff The mechanism by which high debt would hurt growth is unclear but it’s easy to see how slow growth could reduce tax revenue and increase unemployment and welfare payments, and so add on to the debt. [More recent] analyses have confirmed that the causal arrow went from slow growth to high debt, not the other way around. Arindrajit Dube, an economist at UMass Amherst,  found that high debt loads are better correlated with slow growth before the debt gets that large as opposed to after, indicating that it’s the slow growth causing the debt and not the other way around: The left chart [above] correlates debt-to-GDP ratios of a given year to the GDP growth rates of the next three years. If debt is causing slow growth, there should be a strong relationship but, except at the very low end, there isn’t. Meanwhile, the right chart correlates debt-to-GDP ratios of a given year to GDP growth rates of the previous three years. There’s a very strong relationship, indicating that slow growth causes high debt and not the other way around. Miles Kimball and Yichuan Wang at the University of Michigan did a similar analysis, and like Dube, found that high debt was better correlated with slow growth beforehand than with slow growth afterwards [see the 2 charts below], suggesting that Reinhart and Rogoff got their causality wrong assuming that Reinhart and Rogoff’s data was right. UMass Amherst economists Thomas Herndon, Michael Ash and Robert Pollin, however, found that Reinhart and Rogoff made a key Excel error that had the effect of overstating the correlation between slow growth and high debt. Another paper, by David Greenlaw, James D. Hamilton, Peter Hooper and Frederic S. Mishkin, appeared to confirm Reinhart-Rogoff’s results, finding, “a country can quickly move from the group without problems to the group that faces nearly insurmountable problems if its debt rises significantly above 80% of GDP, particularly if it is running a large current-account deficit” but, as both Neil Irwin and the Atlantic’s Matt O’Brien have noted, this is driven by their inclusion of Eurozone countries that don’t control their own currencies. If you look at countries like the U.S. who control their money supply and, as a result, never have to default on their bills, the association goes away entirely. That’s all a long way of saying that the case for high debt causing slow growth, rather than the other way around, is remarkably weak. If interest rates are very high, then a debt burden can become a serious fiscal problem but the evidence on growth doesn’t make for a strong case against adding debt. How did we get all this debt anyway? The best chart on this is the so-called ”parfait chart” by the Center on Budget and Policy Priorities (CBPP), which breaks down what specific policies caused the big increase in the U.S. federal debt in the 2000s. Strikingly, the current debt was almost entirely caused by events in the past 13 years. [As the "parfait chart" below illustrates,] the most important factor was the Bush tax cuts of 2001 and 2003, which greatly reduced federal revenues and put the federal government into deficit after the surpluses of the late ’90s and early ’00s, but the economic downturn, the stimulus and other recovery measures, and the wars in Iraq and Afghanistan all played important roles too. Without those four things, we’d have a debt burden around 20% of GDP — far too small to even start to worry about, and smaller than every developed country other than Luxembourg: What’s driving that increase? It’s not that revenues are falling; in fact, they’re growing over the medium-term. The cause is an increase in spending – one that’s concentrated, overwhelmingly, on health care, with some Social Security thrown in. [As outlined in the table below,] Federal spending on major health-care programs was 4.6% of GDP in 2013, up from an average of 2.7% from 1973 to 2012. By 2038, it’s projected to increase to 8.0%. Spending on Social Security, currently 4.9% of GDP, will grow to 6.2% by 2038. All other spending will fall from 10.0% to 7.1% but because the debt load is growing, the cost of servicing it will grow from 1.3% to 4.9%. I’ve heard people say we need to “stabilize the debt.” What would that take? A bit, but not a whole lot. CBPP estimates [in Figure 1 below] that, now that the Budget Control Act (aka the debt ceiling deal, including sequestration) and the American Taxpayer Relief Act (aka the fiscal cliff deal, including the partial expiration of the Bush tax cuts) are in effect, it’d only take another $1.5 trillion in deficit reduction over ten years to stabilize the debt load. [The above being said, however,] we might also want to replace some of the previous deficit reduction measures. The Budget Control Act cuts almost entirely from discretionary spending, [as can be seen in the graph below] which is decidedly not what’s causing the increase in spending going forward. Even if you want to cut discretionary spending, sequestration is a fairly blunt and dumb way of doing so. [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://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/19/everything-you-need-to-know-about-the-deficit/?wprss=rss_economy (© 1996-2013 The Washington Post) Related Articles: 1. The Great American Debt Downgrade Debacle That Wasn't! It's been over two years since Standard & Poor's did the unthinkable and downgraded the U.S. government's debt rating…and yet, it's as if it never happened… Read More » 2. Direction of U.S. Trade Deficit Indicates Direction of U.S. Dollar The trade deficit has improved a lot since 2010 and the U.S. dollar strengthened with it but I believe that is all about to change. Here’s why. Read More » 3. Debt Clocks of the U.S., U.K., Canada, Australia & the World A BIS study released in June 2012 warns that budgets of most advanced economies, excluding interest payments, “would need 20 consecutive years of surpluses exceeding 2 per cent of gross domestic product – starting now – just to bring the debt-to-GDP ratio back to its pre-crisis level”. Read More » 4. How Likely Is the Fed to Go Bust & What Would it Mean For YOU? At this point, thanks to a long-standing policy of wanton money printing, the Fed has more liabilities than ever before in its history – by an enormous margin – and this precarious balance sheet is dangerous, because if the Fed goes bust, everyone loses [- including YOU. Let me explain why that is the case]. Words: 398 Read More » 5. Rapid Rise In Interest Rates Will Collapse U.S. Financial System – Here's Why There is one vitally important number that everyone needs to be watching right now, and it doesn't have anything to do with unemployment, inflation or housing.  If this number gets too high, it will collapse the entire U.S. financial system.  The number that I am talking about is the yield on 10 year U.S. Treasuries. Here's why. Words: 1161; Charts: 2 Read More » 6. Economics Can't Trump Mathematics & the Math Says US In a Debt Death Spiral The madmen who are responsible for the coming economic disaster continue to behave as if they can manage to avoid it.  Violating Einstein's definition of insanity, they continue to apply the same poison that caused the problem. These fools believe they can manage complexities they do not understand. We are bigger fools for providing them the authority to indulge their hubris and wreak such damage. Read More » 7. U.S. in Terminal Phase of Unprecedented Debt Spiral Anyone that thinks that the U.S. economy can keep going along like this is absolutely crazy.  We are in the terminal phase of an unprecedented debt spiral which has allowed us to live far, far beyond our means for the last several decades.  Unfortunately, all debt spirals eventually end, and they usually do so in a very disorderly manner. Read More » 8. Why the End of This Economic Death Spiral Is So Hard to Call Whether you are an investor, concerned citizen or merely someone trying to understand the current economic situation, you should be worried. Watch this video to get an outstanding overview of what is occurring.  It is probably the best short explanation as to why the end of this economic death spiral is so hard to call. Rea

The Daily Market Report Posted: 24 Sep 2013 08:48 AM PDT Gold Drops Again Amid Concerns of Taper and Government Shutdown 24-Sep (USAGOLD) — Gold fell to a new low for the week amid persistent worries about Fed tapering. Mounting concerns about a possible government shut down may be contributing to recent losses as a result of deleveraging pressures. And yet the two seem mutually exclusive… On one hand it’s hard to believe that investors are once again fretting over tapering, less than a week after the Fed opted not to pull back on asset purchases. On the other hand, the taper “threat” has been used pretty effectively to keep asset prices — and in particular, gold — well contained. In a Kitco News interview yesterday, Jim Rickards said speculation about possible tapering in October or December was “nonsense”. You may recall that Rickards adamantly maintained from very early on that the Fed would not taper this month, bucking a pretty sweeping consensus that the Fed would indeed pull the trigger and start scaling-back QE. Rickards said he simply took the Fed at its word; that any change in QE would be data dependent. As I said repeatedly throughout the past several months, the data simply did not support tapering. The data still do not support tapering and that is unlikely to change before the October FOMC meeting, or year-end for that matter. A week from Friday, the nonfarm payrolls report for September will be released. Expectations are for a drop to +165k jobs, versus the anemic +169k jobs seen in August. The jobless rate is expected to hold steady at 7.3%. That’s hardly the type of number that would justify tapering. Maybe the September jobs data will be the final nail in the taper coffin. Meanwhile, the chances for a government shutdown in the U.S. seem to be on the rise. The House sent a CR to the Senate yesterday that would fund the government through December 15, providing that the President’s signature healthcare legislation is defunded. Senate Majority Leader Harry Read is likely to strip out the defunding measure, which then would be sent back to the House. Both sides seem miles apart at this point. If some compromise is not achieved by September 30. Parts of the federal government could shut down beginning October 1. If some kind of deal is struck. Hurray! We can then immediately turn our attention to the debt ceiling, which is expected to be exceeded sometime around the middle of October. This mess on the fiscal side of things pretty much obliges the Fed to keep the monetary spigot wide open. That tapering is still being contemplated by some at this juncture is truly nonsense.

Centerra Gold to look for acquisitions after kumtor resolution Posted: 24 Sep 2013 08:27 AM PDT Centerra will consider development projects and mines that are already in production, Chief Executive Officer Ian Atkinson told Reuters Read more….

DAILY COMMENTARY FOR SEPT. 25 Posted: 24 Sep 2013 08:00 AM PDT By Toby Connor, Gold Scents Daily commentary Toby Connor GoldScents A financial blog primarily focused on the analysis of the secular gold bull market. If you would like to be added to the email list that receives notice of new posts to GoldScents, or have questions, email Toby.

Growth not a dirty word – Goldcorp CEO Posted: 24 Sep 2013 07:34 AM PDT Speaking on the sidelines of the Denver Gold Group conference, Chuck Jeannes told Reuters the gold digger was not ruling out deals or big capital projects Read more….

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