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- Turkey top of central banks gold buying rankings in Aug - IMF
- The “Five M’s” For Picking Gold Stocks
- Investors would flock to support an Emirates Airline IPO to help finance $4.5bn in aircraft purchases next year
- Was Money Created to Overcome Barter?
- Bundesbank doesnt really want its gold back from NY Fed, Rickards says
- World Gold Council elects Randall Oliphant as new chairman
- Central banks have already lost their battle against gold, Sprott says
- Massive short covering awaits bullion banks, John Ing tells King World News
- New Gold's Management Presents at Denver Gold Forum Conference (Transcript)
- Mike Maloney explains how the coming death of the US dollar will play out for gold and silver prices
- Pierce Points: Infrastructure is Key for Huge Gold Deposits
- Endeavour Silver's CEO Presents at 2013 Denver Gold Forum (Transcript)
- Primero Mining Corp's Management Presents at Denver Gold Forum 2013 Conference (Transcript)
- Newmont Mining Corporation's CEO Presents at Denver Gold Forum (Transcript)
- Gold Recovery into 1350s Might Present Short Opportunity
- Pan American Silver's CEO Discusses at Denver Gold Forum (Transcript)
- What you should know about Goldman Sachs' latest gold prediction
- Eighteen everyday products you've been using all wrong
- Eldorado's CEO Presents at Denver Gold Forum Conference (Transcript)
- Chinese Housewives vs. Goldman Sachs: No Contest
- Gold Finds a Few Friends near $1300
- Eric Sprott Exclusive: The Fed Has Lost Control of the Bond Market!
- Silver and Survival
- Gold bars worth £1.35m stolen on Air France flight to Zurich from Paris
- Water – If You Didn’t Build That, Can You Still Drink That?
- 20 Ordinary Americans Talk About The Economic Despair That Is Growing Like A Cancer All Around Them
| Turkey top of central banks gold buying rankings in Aug - IMF Posted: 25 Sep 2013 07:27 AM PDT According to the IMF, while Turkey raised its gold reserves by the most in five months, while Russia grew its holdings by the biggest amount since December. | |
| The “Five M’s” For Picking Gold Stocks Posted: 24 Sep 2013 10:45 PM PDT Goldseek | |
| Posted: 24 Sep 2013 10:22 PM PDT Emirates Airline is planning to issue Islamic and conventional bonds early next year to finance new 22 aircraft costing $4.5 billion, according to a Gulf News report citing Brian Jeffery, senior vice president for corporate treasury, if market circumstances allow it. However, should bond markets fall and the cost of this form of borrowing becomes too high then the airline could always organize what would probably be the most popular initial public offering in the history of the UAE, albeit maybe not quite as successful as Aldar Properties in 2005 that attracted more than the national GDP in subscriptions. No IPO announcement Emirates has no plans for an IPO at the moment. Mr. Jeffery said the carrier has ‘pretty much the same strategy for the next financial year as this year. It's going to be a diversified structure… bond issues, operating leases, US export credit facilities and financing leases’. But Emirates needs a lot of cash in next few years to finance the delivery of the huge aircraft orders it placed in the 2000s. The total bill is $22 billion over the next four years or about $5.5 billion per annum. Mr. Jeffrey noted that bond sales were unlikely to happen before the highly-profitable airline reports its half-year results this November. Could Emirates end up floating an IPO in 2014 instead of raising bond and lease finance as it has so successfully in the past few years? It flew almost unscathed through the Dubai debt crisis of three years ago when Abu Dhabi came up with an eleventh hour, $20 billion bailout for the emirate. However, the US Federal Reserve lost control over the bond market this summer and interest rates are on the way up. For mega-borrowers like Emirates the pendulum may have already swung in the direction of the stock market as a cheaper place to raise funds, and happily the local Dubai Financial Market is currently also the strongest performing stock market in the world. IPO logic Would it not make sense to tap into this source of funds? Well, only if the figures add up of course. Then again an IPO for Emirates Airline would be a massive boost to the DFM itself and create fund raising opportunities for local corporates who now also find the bond market more expensive. Dubai Government has always been reluctant to do what some might say is selling the family silver. But then the argument is always that the government would end up holding a slightly smaller stake in a much bigger pie. The money is going to have to come from somewhere to expand Emirates’ A380 fleet to 90 planes at a time when British Airways has only just taken delivery of its first super-jumbo. | |
| Was Money Created to Overcome Barter? Posted: 24 Sep 2013 09:57 PM PDT Yves here. Many readers have either read or are generally familiar with David Graeber’s book Debt: The First 5000 Years. Graeber shows how debt preceded money and confirms the work of Modern Monetary Theory proponents that the standard account presented in economic texts of how money originated is all wet. This article by Reyold Nesiba gives a short summary of this evidence, which is helpful to those new to this issue or interested in explaining it to By Reynold F. Nesiba, Professor of Economics, Augustana College, Sioux Falls, South Dakota. Cross posted from New Economic Perspectives This past May, marked the one hundredth anniversary of A. Mitchell Innes's (1913) publication of a paper titled, "What is Money?" in The Banking Law Journal. In it, this British diplomat, then living in the US, reviewed the history and usage of money and its forms in credit and coinage. On both historical and logical grounds, he asserts that the "modern science of political economy" rests on a series of assumptions regarding money and credit that are "false." One of the most important of these assumptions is the belief that "under primitive conditions men lived and live by barter." Who should we blame for this false assumption? According to Innes, it is Adam Smith (1776), the father of economics, who in turn rests his arguments on the words of Homer, Aristotle, and those writing about their travels to the New World.
Perhaps one reason Innes's work has been so widely ignored is because his critique cuts too deeply. For economists to incorporate his insights would require a wholesale rethinking of where money and credit comes from, how it works, and how it influences the economic processes of production and distribution. That said, his work on money received attention and was cited immediately after his first publication in 1913 and a second in 1914. Even John Maynard Keynes had favorable things to say about it. But then his work was ignored for almost 75 years until the 1990s when some Post-Keynesian monetary theorists brought it back to light (Wray and Bell 2004, p.12). Recent academic work in economics (Bell 2000, Wray 1998, Ingham 2004, see Nesiba 2013 for a review) and anthropology (Graeber 2010), demonstrate that the process of rethinking is underway. Regardless of this recent research, economists and principles of economics texts continue to tell the Smithian or traditional story of money and credit and ignore the insights of Innes. Over most of my 18 years of teaching at Augustana College in Sioux Falls, South Dakota, I too have perpetuated this error by repeating the traditional story of money. It goes something like this. In a barter economy, as in the (chronologically vague) days of old, goods were traded (in a geographically ambiguous location) for other goods without the use of money. Without money trade is only possible if there is a double coincidence of wants. If one person raises and sells potatoes and the other makes shoes, they will only engage in exchange if the one selling shoes wants potatoes and the one selling potatoes wants a new pair of shoes. Even if they each have a surplus of the good they wish to sell, no trade will occur since the potential buyer lacks anything needed by the seller. They are at an impasse. Adam Smith (1776, 25-36) explains how money arose to resolve this economic conundrum with these words.
So for Smith over time (and in every place and time) eventually a specific commodity—perhaps gold or silver—arises to serve as a money-thing that can be used to purchase other goods and services. Economists refer to this monetary function as a medium of exchange. Over time, economists have come to define money as anything that fulfills the four functions of money. In addition to serving as a medium of exchange, money can also serve as a way to postpone purchases by serving as a store of value. As long as a currency is not experiencing rapid inflation, holding wealth in money form allows us to delay purchases for a sunny or rainy day. Money can also be used to pay debts as a means of payment to fulfill our contractual obligations to other individuals, firms, lenders, or governmental entities. And perhaps most importantly, money serves as a way of keeping score as a unit of account. It is in this last function that money is not a "thing," like a coin, but instead serves instead as a point system or standard of measurement by which sales, debts, and payments can be accounted. Just as an inch or a centimeter can be used to measure length, a dollar or euro as a unit of account can be used to measure value without actually being a money-thing. Now for Smith, the most important function of money is to serve as a medium of exchange. Because once this is established his apocryphal story expands. As a medium of exchange money facilitates trade, encourages greater specialization and productivity, reduces transactions costs, and allows for the further flowering of capitalism. It also serves as the beginning of the banking system. As metals become the preferred medium of exchange, banks are created to store and manage these wealth holdings. The coining of metal by state governments facilitates this process by standardizing weights and degrees of alloyed purity. The bankers than issue receipts describing the amount of gold stored or deposited on its premises. Over time, bankers realize that these gold receipts are circulating as money. They also realize that only a fraction of their holdings are called for on any given day. Thus they can make loans at interest and issue gold receipts far in excess of their actual holdings. This emergence of credit further greases the wheels of capitalist exchange, savings, and investment. However, in the overall economy, money only affects prices and not the process of actual physical production. This standard story has been repeated in uncountable numbers of articles and textbooks. And it is this story that Innes challenged 100 years ago. Innes asserts that the barter story that emerged from Smith contradicts both the logic and the historical record. In terms of logic, Smith's story is simply not convincing. For example, if you grew up in a small town in the western US in the 1970s, you might remember that you could go to the grocery store, pick up groceries, and simply sign a slip a paper acknowledging your receipt of the groceries. The same could be done in Smith's hypothetical example. If the shoe seller or potato seller were trustworthy, the shoe seller could simply create a record of the shoes purchased on credit by the potato seller/shoe buyer and their value in some agreed upon unit of account. This is not barter and it is not a purchase using a medium of exchange. Instead it is (p. 391) "the exchange of a commodity for a credit." And it is far easier that the use of a medium of exchange. Is there no anthropological evidence of a society based on barter trade? In his recent book David Graeber (2010) asserts that there is not. Graeber claims that Stanley Jevons's book in 1871 "took his examples straight from Smith, with Indians swapping venison for elk and beaver hides, and made no use of actual descriptions of Indian life…" (p. 29) Similarly "around that same time, missionaries, adventures, and colonial administrators were fanning out across the world, many bringing copies of Smith's book with them, expecting to find the land of barter. No one ever did." To make his point as clear as possible, Graeber (p. 29) quotes from Caroline Humphrey's Cambridge University dissertation as the definitive anthropological work on barter. Her statement is as clear as it is emphatic. "No example of a barter economy, pure and simple, has ever been described, let alone the emergence from it of money; all available ethnography suggests there has never been such a thing." Innes knew this 100 years ago, yet the myth persists. So if there has never been a land of barter, where did we get money and credit? Innes (p. 397) argues that systems of credit pre-date coins by over a thousand years. "The earliest known coins of the western world are those of ancient Greece, the oldest of which, belonging to the settlements on the coast of Asia Minor, date from the sixth or seventh centuries B.C." In contrast, the law of debt goes back to at least the Code of Hammurabi in Babylonia 2000 years B.C. Innes saw that the foundation of society and thereby of credit was that promises or obligations were and are viewed as sacred. In all societies (p. 391) the breaking of the pledged word, or the refusal to carry out an obligation is held equally disgraceful." He goes on to explain how wooden tally sticks and clay shubati tablets were used to track credits/purchases and debits/sales long before the existence of coins. And that one could repay a debt by returning a credit of the same amount to the lender. In fact, village fairs were convened so that those holding the debts of others could match credits and debits together and thereby clear their accounts. Over time others showed up to buy and sell other goods and services or to cater to those in this most basic business of banking. There are a variety of reasons why this matters for monetary theory and macroeconomic policy. But let me leave you with just one. From the Smithian story, it was gold and silver that backed the issuance of a paper currency. However, if Innes is right, the banking system never worked in that way. In Innes's world, money is and always has been a token representing a socially constructed debit-credit relationship. A stamped coin, $20 bill, or tax refund check is an asset—a credit— to those who hold it and a liability—a debit—for the government who issues it. When the federal government spends, perhaps by directly depositing a Social Security recipient's check into her account, a special kind of credit is created. This credit—a new "debt" of the federal government—satisfies all four functions that are used to define money. It serves as a medium of exchange, store of value, means of payment, and a unit of account. But what gives this money value? The money is valuable because it is the only token acceptable for the payment of taxes. And when those taxes are paid, the money that had been spent into existence is extinguished. Thus, it is through federal government spending that money enters the economy and through taxation that it is destroyed. This is where Innes's 100- year-old insights lead. If these ideas are hold up under academic scrutiny, are further disseminated, and become the basis of how we understand money and credit, an entirely new paradigm will need to emerge in the study of monetary economics. This article was originally published as a feature article in the Western Social Science Association (WSSA) Fall 2013 newsletter. It is reprinted here with their permission. Works Cited Bell, S. (2000): Do taxes and bonds finance government spending?, in: Journal of Economic Issues, 34(3), 603-620. Graeber, D. (2010): Debt: The First 5000 Years, Brooklyn, NY: Melville House Publishing. Ingham, G. (2004): The Nature of Money, Cambridge: Polity Press. Innes, A.M. (1913, May): What is money?, in: Banking Law Journal, 377-408. Nesiba, R.F. (2013, May): "Do Institutionalists and Post-Keynesians Share a Common Approach to Modern Monetary Theory (MMT)? European Journal of Economics and Economic Policies: Intervention, Vol. 10 No. 1, 2013, pp. 44–60. Smith, A. (1776): An Inquiry into the Wealth of Nations. The Cannan Edition, New York: Modern Library, 1937. Wray, L.R. (1998): Understanding Modern Money: The Key to Full Employment and Price Stability, Northampton, MA: Edward Elgar. Wray, L.R. and S. Bell (2004): In Credit and State Theories of Money: the contributions of A. Mitchell Innes, Cheltenham, Edward Elgar, L.R. Wray editor. | |
| Bundesbank doesnt really want its gold back from NY Fed, Rickards says Posted: 24 Sep 2013 09:02 PM PDT GATA | |
| World Gold Council elects Randall Oliphant as new chairman Posted: 24 Sep 2013 09:02 PM PDT GATA | |
| Central banks have already lost their battle against gold, Sprott says Posted: 24 Sep 2013 09:02 PM PDT GATA | |
| Massive short covering awaits bullion banks, John Ing tells King World News Posted: 24 Sep 2013 09:02 PM PDT GATA | |
| New Gold's Management Presents at Denver Gold Forum Conference (Transcript) Posted: 24 Sep 2013 08:50 PM PDT New Gold, Inc. (NGD) Denver Gold Forum Conference Transcript September 24, 2013 4:50 PM ET Executives Randall Oliphant - Executive Chairman Analysts Presentation Unidentified Analyst So next we have Randall Oliphant, bit of a legend in the industry, formerly CEO of Barrick and now running New Gold. Randall and his team put together a number of assets in New Gold in Mexico, in Canada and we look forward to hearing about them. Thanks Randall. Good luck. Randall Oliphant Well, thank you very much, John, and good afternoon, ladies and gentlemen. Thank you for taking time out of your busy schedule to come and hear the New Gold story. Its one that our entire team is remarkably proud of and excited about and I hope through this presentation I can convey to you why we are so optimistic about what we can do with our company. Some of the things that | |
| Mike Maloney explains how the coming death of the US dollar will play out for gold and silver prices Posted: 24 Sep 2013 08:37 PM PDT We are facing the greatest financial crisis in the history of mankind says best-selling gold and silver author Mike Maloney in this new video. Why is the US dollar so important and why is the world’s reserve currency now in such great danger? It’s quite a long and at times rather personal video but Mike Maloney has been spot on with his forecasting for over a decade now and more and more people are listening… | |
| Pierce Points: Infrastructure is Key for Huge Gold Deposits Posted: 24 Sep 2013 08:36 PM PDT Dave Forest, author at Pierce Points explains (on the back of current news) why infrastructure is so important for these deposits… Very interesting data points this week on two of the world’s largest gold projects. First, the negative. In Alaska, major producer Anglo American announced it is pulling out of the Pebble gold-copper project. Anglo is writing down $300 million spent on the project since 2007 and walking away. Contrast this with (possibly) positive news from the massive Minas Conga gold-copper deposit in Peru. Peruvian Mines and Energy Minister Jorge Merino said at a recent mining conference that round table discussions with dissident residents near the deposit may be making headway. Potentially paving the way for its owners (including gold major Newmont) to develop the stalled project. Interesting that we have one major throwing in the towel while another appears to be persevering. What does this tell us about the current project development environment? Both Pebble and Conga are world-class geologically. Pebble is probably the world’s largest undeveloped gold deposit. Conga is likely in the top ten. Both are controversial. Vigorous protests have been a material impediment to development, costing owners time and money. Here’s one difference that may explain the differing tack of each project’s big player: infrastructure. Conga is located in the shadow of the massive Yanacocha mining district. Newmont has stated it plans to “leverage existing operations” here to help with capital and operating costs. Pebble by contrast, is hundreds of kilometres from major road infrastructure. And distant from any significant mining operations. Is this factor causing one project to shovel on while the other is shelved? There’s no way to know for sure. Perhaps Anglo American and Newmont have different world views. Or maybe it’s other intervenors like local costs or permitting environment. But in the current mining downturn it’s interesting to see which projects are emerging as the survivors. There’s a lot of talk today about cost management and rationalization. You’d think that in such an environment, good infrastructure would be climbing the “most desired” list for developers. Here’s to being in the right place at the right time, Dave Forest dforest@piercepoints.com / @piercepoints / Facebook | |
| Endeavour Silver's CEO Presents at 2013 Denver Gold Forum (Transcript) Posted: 24 Sep 2013 07:51 PM PDT Endeavour Silver Corp. (EXK) 2013 Denver Gold Forum September 24, 2013 6:40 pm ET Executives Bradford Cooke - Chief Executive Officer Analysts Mike Parkin - Desjardins Securities Presentation Mike Parkin - Desjardins Securities Next up we have Endeavour Silver Corp. with Bradford Cooke, Founder and CEO, here to give us the story. In the interest of time, I'll pass it over. Bradford Cooke Thank you very much, Mike, and welcome to this presentation of Endeavour. My slide is an attempt to portray that there is in fact light at the end of the tunnel, having had a very interesting first half of the year in the gold and silver sector. We had a great first half for Endeavour. We had another year of record operating performance and we're on track to deliver our ninth consecutive year of accretive growth. I will be making some forward-looking statements during my presentation, so | |
| Primero Mining Corp's Management Presents at Denver Gold Forum 2013 Conference (Transcript) Posted: 24 Sep 2013 05:58 PM PDT Primero Mining Corp. (PPP) Denver Gold Forum 2013 Conference September 24, 2013 06:20 PM ET Executives Joseph F. Conway - President & Chief Executive Officer Analysts Presentation Unidentified Analyst [Call Starts Abruptly] …Conway, President and CEO of Primero Mining, just came on board in 2010, immediately identified the opportunity that you had a mine that didn't have nearly enough development. In fact he's over the course of the last three years addressed that issue and it's starting to pay off in the form of production growth. So Joe? Joseph F. Conway Got McEwen Mining up here. I think we are a little early. I don't think I can talk about McEwen Mining. Till we they are -- I thought let's do a little bit of an intro while we are fixing out the technical difficulties here. I think as Paulo mentioned, first of all I'd like to say thank you | |
| Newmont Mining Corporation's CEO Presents at Denver Gold Forum (Transcript) Posted: 24 Sep 2013 05:54 PM PDT Newmont Mining Corporation (Holding Company) (NEM) Denver Gold Forum Conference Call September 24, 2013, 1:05 PM ET Executives Gary Goldberg - President and Chief Executive Officer Analysts Presentation Gary Goldberg Good morning, everyone, and thanks for attending. It's a pleasure to be here at the Denver Gold Forum. I'm happy to be here today to give you an update on our business and our strategy. We've been a respected global mining house for more than 90 years, and we've adapted to industry changes throughout that timeframe. Today we'll be looking at what we're doing, not only just to whether the challenging times, but to make the most of those challenging times through our value over volume approach. I refer like we all do to our cautionary statement on Slide 2 here, and remind you to take a look at the Form 10-K for more detail. I'll start by making remarks | |
| Gold Recovery into 1350s Might Present Short Opportunity Posted: 24 Sep 2013 04:47 PM PDT | |
| Pan American Silver's CEO Discusses at Denver Gold Forum (Transcript) Posted: 24 Sep 2013 04:34 PM PDT Pan American Silver Corp. (PAAS) Denver Gold Forum September 24, 2013 04:30 PM ET Executives Geoff Burns - CEO Analysts Presentation Unidentified Analyst Okay, well our next speaker will be Geoff Burns, President and CEO of Pan American Silver. Mr. Burns has over 25 years of experience in the mining sector and prior to being CEO of Pan Am, he was also involved with companies like Prime Resources, Homestake Mining Company and most recently he was the President of the World Silver Institute so, I think he knows a thing or two about silver. So, Geoff. Geoff Burns Thanks [indiscernible] and good afternoon ladies and gentlemen and thanks for joining me today to spend a little bit of time at looking where Pan American is right today and what our plans are going forward for the next year and then over the next sort of three to five years. Just | |
| What you should know about Goldman Sachs' latest gold prediction Posted: 24 Sep 2013 03:41 PM PDT From Casey Research: Goldman Sachs is once again predicting that gold will fall, setting a new near-term target of $1,050 per ounce. 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 seventh-largest holder. When I visited China two years ago, guess who no one was talking about? Goldman Sachs. There was news about the U.S., 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... More on gold: | |
| Eighteen everyday products you've been using all wrong Posted: 24 Sep 2013 03:41 PM PDT From BuzzFeed: 1. You've probably been ignoring this feature.  Most aluminum foil boxes have press-in tabs that secure the roll in place, so you don't have worry about it flying out every time you rip off a sheet. 2. You've been dispensing... More Cruxallaneous: | |
| Eldorado's CEO Presents at Denver Gold Forum Conference (Transcript) Posted: 24 Sep 2013 03:29 PM PDT Eldorado Gold Corp. (EGO) Denver Gold Forum Conference Transcript September 24, 2013 3:50 PM ET Executives Paul Wright - Chief Executive Officer Analysts Presentation Unidentified Analyst Good afternoon. Welcome to the afternoon of the second session of the Denver Gold Forum. Congratulations. We've passed noon on the second day. So we are officially halfway through the show. And if you haven't found a gold company to make your way yet, I have got five contenders here for you to see this afternoon, Eldorado, Gold Fields, Polymetal, NewGold and Alamos. We'll begin with Eldorado in the form of Paul Wright, who joined the company in 1996. Has a history in operations. The company is focused on finding and operating mines with low cash cost and operates in Turkey, China and Brazil. Paul, would you like to come and talk. Thank you. Paul Wright All right. Well, thank you, [John], and again, | |
| 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…
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?
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) | |
| Eric Sprott Exclusive: The Fed Has Lost Control of the Bond Market! Posted: 24 Sep 2013 02:30 PM PDT
 In his most explosive interview with SD ever, CEO of Sprott Asset Management Eric Sprott discussed his thoughts on the Fed’s no-taper, why he believes the cartel took down gold this spring, the evidence that a bail-in is coming to the US and Canada, and the US fiscal debt crisis. Sprott stated the Fed could [...] The post Eric Sprott Exclusive: The Fed Has Lost Control of the Bond Market! appeared first on Silver Doctors. This posting includes an audio/video/photo media file: Download Now | |
| Posted: 24 Sep 2013 02:00 PM PDT
 In his latest video, Silver Bullet/ Silver Shield’s Chris Duane discusses how silver will play a critical role in surviving the coming collapse of the current fiat currency system. Silver Bullet Silver Shield Collection at SDBullion! 2013 Gold Eagles As Low As $51.49 Over Spot at SDBullion! The post Silver and Survival appeared first on Silver Doctors. | |
| 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 | |
| Water – If You Didn’t Build That, Can You Still Drink That? Posted: 24 Sep 2013 01:16 PM PDT Rainwater may belong to the world. You however, will need to pay for yours. While arguing over the tangible nature of Bitcoin, proclaiming the intrinsic value of gold and explaining the fungible nature of silver, you can build up a powerful thirst. It would appear that choosing “smart” water (as opposed to dumb water) is like choosing between cola brands. Take The Saltwater Challenge and express your freedom of choice. When it comes to turning rainwater into a financialized derivative, there’s no choice at all… it’s a requirement. | |
| 20 Ordinary Americans Talk About The Economic Despair That Is Growing Like A Cancer All Around Them Posted: 24 Sep 2013 01:00 PM PDT
 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, [...] The post 20 Ordinary Americans Talk About The Economic Despair That Is Growing Like A Cancer All Around Them appeared first on Silver Doctors. |
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