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- Bank Of England Poses Downside Sterling Risks
- Gold Trading at 10 Day EMA; Level Has Been a Pivot Before
- The Gold Demonetization Hoax
- The Gold Demonetization Hoax
- Gold Sentiment Back to Neutral After 6 Months
- Gold falls below $1,400 for third day running
- A Syria Attack Could Escalate into Global Nuclear War & Kill Billions! This is Not a Time to Screw Around!
- Gold Touches $1400 as “High Syria Risks” Meet “Price-Sensitive” Asian Demand
- Recent Rally in Gold: Significant Improvement or Just a Bigger Pullback?
- Thrive, Survive or Die: Barry Allan on Stress-Testing Junior Gold Miners
- Middle East gold demand could jump on Syria crisis
- Pan African, Village reach settlement on wages
- Sell Your Gold…Again!
- Drums of war spark rally in gold, silver and energy
- RBI further tightens gold import norms
- Recent rally in gold: Significant improvement or just a bigger pullback?
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- Syria, Pipeline Politics, OPEC & the USDollar
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- Gold traders watching macro data, seasonal September patterns
- Stewart Thomson: Has Gold Really Bottomed?
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- Gold rises to $1413, may hit $1500 in October
- Gold rises to $1413, may hit $1500 in Octobe
- Asia’s Richest Man, Li Ka-Shing, Looking to Make Gold Investments
- Asia’s Richest Man, Li Ka-Shing, Looking to Make Gold Investments
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| Bank Of England Poses Downside Sterling Risks Posted: 04 Sep 2013 05:22 PM PDT The Bank of England will not issue a statement endorsing higher yields following the latest policy meeting on Thursday. There is a small chance that they will protest against rising bond yields to reinforce their determination to foster a sustained recovery in growth and this would push sterling sharply lower. The risks are, therefore, skewed towards modest sterling weakness ahead of the decision as long positions are scaled back. Overall, look to sell sterling/dollar in the 1.5630/40 resistance band for a move towards 1.5550. The Bank of England Monetary Policy Committee (MPC) will announce its decision on interest rates and asset purchases at 11.00 GMT on Thursday. There looks to be very little chance that there will be a change in either policy targets at this meeting. There will certainly be an important and lively debate within the committee surrounding growth and monetary policy, especially after the series of stronger | |
| Gold Trading at 10 Day EMA; Level Has Been a Pivot Before Posted: 04 Sep 2013 04:06 PM PDT | |
| Posted: 04 Sep 2013 03:00 PM PDT Antal E. Fekete | |
| Posted: 04 Sep 2013 03:00 PM PDT Antal E. Fekete | |
| Gold Sentiment Back to Neutral After 6 Months Posted: 04 Sep 2013 02:58 PM PDT After more than 6 months, sentiment towards gold (and silver) are back to neutral. Since mid February of this year, sentiment has crashed and remained near depressed levels. No surprise it had to do with a downward spiral in the gold price. Sentiment is being measured by Sentimentrader. The following chart shows sentiment on September 4th 2013.
It is no coincidence neither that the latest Commitment of Traders report(s) has shown a significant reduction in speculative short. Short covering has been one of the reasons (or effects) of the price rise in August. The gold price is currently moving between its 50 and 200 day moving average. It has broken through the 50 day MA strongly and was well on its way to the 200 day MA. Gold is taking a breather today however. Although nobody knows what the price will be tomorrow or in a week, purely from a chart point of view, it is likely that the 50 day MA will be tested before moving higher again. Of course, the opposite can occur as well. The price action has been very strong lately, so the odds favor at least a short term continuation of the rise. As the futures market has shown light backwardation in the past months. Not too much, now and then we have seen slightly lower prices in the first contracts. Today, again, the spot price of gold is slightly higher than the futures contracts of September, October, November and even February. As we noted here, there is no real reason to make too much out of it.
Courtesy: Stockcharts.com, Barcharts.com, Sentimentrader.com. | |
| Gold falls below $1,400 for third day running Posted: 04 Sep 2013 02:50 PM PDT "In order for gold to build on recent gains over $1400/oz, oil prices also have to remain strong we believe," says a note from HSBC. | |
| Posted: 04 Sep 2013 02:31 PM PDT On the August 23rd SD Weekly Metals & Markets radio show I explained how the United States has a very long history of drawing lines in the sand — the "red line." One could even call it a passive-aggressive mode of foreign policy, but it works well in terms of public relations. "We didn't want [...] The post A Syria Attack Could Escalate into Global Nuclear War & Kill Billions! This is Not a Time to Screw Around! appeared first on Silver Doctors. | |
| Gold Touches $1400 as “High Syria Risks” Meet “Price-Sensitive” Asian Demand Posted: 04 Sep 2013 02:21 PM PDT
WHOLESALE London prices for physical gold jumped $15 from a drop to $1384 per ounce Tuesday morning, gaining after the Interfax news agency in Russia – political ally of Syria’s President Assad – reported two “objects” being fired in the Mediterranean, towards the sea’s eastern coast.
The gold price then fell back only to rise and touch $1400 for the first time this week – 2.5% below last Wednesday’s 3-month high – as Israel confirmed the launch, saying it was done to test what Reuters calls a “US-funded” anti-missile system.
“As long as Syria stays quiet, I would rather sell rallies [in the gold price] at the moment,” says David Govett at brokers Marex.
But “we would also expect the metal to find support on pull backs,” says Walter de Wet at Standard Bank in London, “not only because Asian demand is likely to improve with gold below $1400, but also because geo-political risk around Syria remains high and oil prices elevated.
“This may also keep ETF liquidation at bay.”
Western investors sold exchange-traded gold funds heavily in the first half of 2013, leading gold ETFs to shed 650 tonnes of bullion.
Holdings have since stabilized some 25% below end-2012′s record levels.
Over in Asia and the Middle East notes Commerzbank’s commodity research team, “Physical gold buyers who had hugely stepped up their purchases after the price collapsed in the spring, appear to be acting opportunistically and with great price sensitivity.
“In the wake of the latest price rise, it seems that they have withdrawn again,” says the German bank, pointing to August’s drop in US gold coin sales, plus today’s news of a 7-month low in Turkey’s gold bullion imports.
Reviewing last week’s pop above $1430 per ounce as the UK and US debated immediate action against Syria’s Assad regime for an apparent chemical weapons attack on civilians, “If air strikes take place gold could well fall,” writes Jonathan Butler at Mitsubishi, “and if this takes place against a backdrop of QE tapering, the downwards correction could be sharp.”
The US Federal Reserve is widely expected to announce a reduction of its $85 billion-per-month QE program at its policy meeting in two weeks’ time.
Meantime, the gold price “should be well supported in the coming days,” says Butler. “But Friday's US payroll data may be negative for gold, however.”
Asian stock markets rose overnight, with Japan’s Nikkei adding 3% and the Shanghai index now regaining half of June’s 15% plunge after new data indicated lower new order for China’s manufacturers, but strong expecations for the future.
European stock markets held flat overall. Both the Euro and Sterling slipped against the Dollar.
Ten-year US Treasury yields rose to 2.84% as bond prices fell. Brent crude oil added 0.7% to rise above $115 per barrel.
Silver bullion meantime rose further above $24 per ounce, reaching 4-session highs some 5.7% above Monday morning’s early low.
Adrian Ash
Gold price chart, no delay | Buy gold online
Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver in Zurich or Singapore for just 0.5% commission.
(c) BullionVault 2013
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. | |
| Recent Rally in Gold: Significant Improvement or Just a Bigger Pullback? Posted: 04 Sep 2013 01:37 PM PDT Last week gold rose to its highest level since mid-May as possible military action against Syria prompted safe-haven buying. It's worth noting that the yellow metal gained over $250 an ounce from its June low of $1,180.71, but in spite of this growth it is still down about 17 percent for the year.
According to Reuters, gold gave up some gains after British lawmakers voted against any involvement. Additionally, over the weekend President Obama stepped back from the brink and delayed an imminent military strike against Syria to seek approval from the U.S. Congress. Our take is that it won't happen anytime soon. You will find more details about this issue, and extensive coverage of the crude oil market in our yesterday's Oil Update.
As the prospect of imminent attacks on Syria receded, gold extended losses and dropped below $1,400 an ounce on Friday. Will this drop trigger further dips?
In order to answer this question, we'll need to examine gold's charts to find out what the current situation in the yellow metal is. We also take a closer look at the US Dollar Index and the Euro Index to find out what impact they could have on future price of the yellow metal. Could they drive gold prices lower in the near term?
Let's start today's analysis with the US Dollar Index long-term chart (charts courtesy by http://stockcharts.com). Quoting our essay on gold, dollar and mining stocks on August 28:
The situation in the long-term chart hasn't changed much recently. The breakout above the declining support/resistance line (currently close to 79) hasn't been invalidated and, from this perspective, the situation remains bullish.
Now, let's examine the weekly chart. Despite the fact that the USD Index declined once again last week, the medium-term support line was not breached. Although we saw a small move below the upper support line, even this small breakdown was quickly invalidated, which is a bullish signal. These positive circumstances encouraged buyers to act and the dollar came back above the 82 level.
From this perspective, the medium-term uptrend is not threatened, and the situation remains bullish. Therefore, we can expect the dollar to strengthen further in the coming weeks. Looking at the above chart, it seems that the USD Index has started its rally and that this rally will be fueling declines in the precious metals market.
Now, let's check the short-term outlook. From this perspective, we see that the recent decline once again took the USD Index below the 61.8% Fibonacci retracement level based on the entire February – July rally.
Despite this decline, buyers managed to push the USD Index higher, and the short-term breakdown below the Fibonacci retracement level was invalidated.
When we take a closer look at the daily chart, we see a small inverse head and shoulders pattern underway (based on three August lows). As you see on the above chart, the U.S. currency has moved higher in the recent days and broke above the 82 level, which means that this bullish formation is confirmed.
Additionally, when we factor in the cyclical turning point (which we're seeing after a monthly decline), the outlook here looks very bullish. In fact, from this perspective, we see that the USD Index already started to move higher right at the turning point.
Once we know the current situation in the US Dollar Index, let's now take a look at the Euro Index. On the above chart, we see that the Euro Index attempted to move above the 200-week moving average in the previous week, but this attempt failed for the second time, and the breakout was invalidated.
Looking at the above chart we clearly see that the European currency dropped below the 61.8% Fibonacci retracement level based on the January – July decline. At this time we also see an invalidation of the breakout above the declining support/resistance line based on the January and June highs, which is also a bearish factor.
Let's take a look at the gold market.
On the long-term gold chart, we see that the yellow metal has climbed up once again and reached the previously-broken rising support/resistance line based on the July 2005 low and the October 2008 bottom (on an intraday basis). At this point, it's worth noting that this area is strengthened by the 38.2% Fibonacci retracement level based on the September 2012 – June 2013 decline. Although gold broke above this resistance zone at the beginning of the previous week, the breakout was invalidated in the recent days and the yellow metal dropped below $1,400 an ounce. On Tuesday we saw another attempt to move above the resistance levels, but gold didn't even reach them.
From this perspective, the medium-term downtrend remains in place.
Now, let's take a look at the medium-term picture to see more details. On the above chart, we see that gold continued its rally in the previous week and reached the 61.8% Fibonacci retracement level based on the entire April-June decline. Although the price of gold managed to break above its June top, this breakout was quickly invalidated.
Additionally, when we factor in the Fibonacci price projections, we see that the recent rally from the August 7 low to the August top is similar to the upward move seen in July. If history repeats itself, we will see a downward move – similar to the July-August decline.
From this point of view, it seems that the strong resistance range based on the June top and the 61.8% Fibonacci retracement level will keep the rally in check as it further strengthens the resistance created by the rising long-term line marked in red on the previous (long-term) chart.
Summing up, in the recent days the Euro Index has declined back below the declining red support line, which makes the outlook for the USD Index even more bullish. These circumstances will likely have bearish implications for the precious metals sector. With a bullish outlook in place for the dollar, it doesn't seem likely that gold will have enough strength to move above the previously mentioned resistance levels. Therefore, despite the recent show of strength, the medium-term outlook for gold remains bearish.
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Przemyslaw Radomski, CFA Founder, Editor-in-chief Gold Price Prediction Website – SunshineProfits.com * * * * * About Sunshine Profits
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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski’s, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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| Thrive, Survive or Die: Barry Allan on Stress-Testing Junior Gold Miners Posted: 04 Sep 2013 01:30 PM PDT TICKERS: AR, AUQ, ABX, ELD; EGO, G; GG, K; KGC, KDX; KLNDF, PPP, PRB, TGZ Source: Brian Sylvester of The Gold Report (9/4/13)
COMPANIES MENTIONED: ARGONAUT GOLD INC. : AURICO GOLD INC. : BARRICK GOLD CORP. : ELDORADO GOLD CORP. : GOLDCORP INC. : KINROSS GOLD CORP. : KLONDEX MINES LTD. :PRIMERO MINING CORP. : PROBE MINES LIMITED :TERANGA GOLD CORP.
The Gold Report: We last talked in April 2012. What has happened in the junior mining market since then and where is it headed? Barry Allan: Defining junior mining as single-mine producers and exploration companies, the sector has been decimated over the last 12 to 18 months. We’re still in a period of skepticism and suppressed valuations. That will continue for the balance of 2013 and perhaps into 2014. However, in spite of this general malaise, the entire sector isn’t going to hell in a handbasket. Good companies can still conduct business, raise money and advance their projects. We suspect that in 2014 the market will be a bit more palatable, but not offer a dramatic shift. TGR: In 1999, you watched the gold price hit a low of $252.80/ounce ($252.80/oz) and until 2004, struggle to rise above $300/oz. How is today’s market for precious metals equities different? BA: The protracted bear market that led to the bottom of the gold price was a steady grind down from the end of 1997. That is not the case now. We remain in a bear market, but the price drop has been rather moderate. That is not a very bad gold price environment compared to where we were back then. There’s more optimism, in that gold—the amount of bullion held in exchange-traded funds (ETFs)—remains at a very good level. Bullion has reasserted itself as a legitimate asset class. TGR: The Federal Open Market Committee meeting showed strong support for tapering quantitative easing due to an improving U.S. economy. Can a steadily growing U.S. economy and a rising gold price coexist? BA: It should be entirely possible. One of the big concerns about the future of the bullion price has been what happens in the event of sharply higher interest rates in the U.S. We expect bullion to show better resilience in this environment because of the emergence of other world economies—China being the primary example, but also India—that have stated the importance of bullion to their currency holdings. I anticipate that while a higher U.S. interest rate and a stronger dollar will have an impact, it won’t be of the magnitude that it would have been 10 years ago. TGR: What will be the key price drivers for gold over the next 12 months? BA: In North America, real interest rates and the performance of the dollar will be the drivers. But the caveat is how the China sovereign entities respond. Their stated goal is to diversify out of currencies and into bullion. If we see this transition of money out of gold ETFs, it is likely to move into the hands of the world’s sovereign funds to diversify their currency risks. As a result, we anticipate a more balanced market overall. TGR: And silver? BA: When you correlate silver with gold, you get an R-square of 0.94 over the very long term. Short term, the only thing you can say about silver is that it sometimes lags or overreacts to the gold price. Fundamentally, if you’re positive on gold, you should be positive on silver in the short term. By short term, I mean up to six or nine months. TGR: Will silver’s run carry into the fall? BA: Most probably, yes. If history repeats itself, as it often does, silver will lag and then overreact. Silver is like a sign-wave around the long-term gold price, but overall the two are very closely aligned. I fully anticipate silver will overreact, then come into line. TGR: Intierra Raw Metals Group reported that only $2.28 billion ($2.28B) in mining finance was received in Q2/13 compared with $6.12B in Q2/12. Another $5.16B was raised in Q1/13. How is Q3/13 shaping up? BA: The gold price has shown some life; the equities have shown more life than commodities. We fully anticipate that Q4/13 will be better than Q3/13. The current quarter will be consistent with Q2/13. Getting into Q1/14, we anticipate another uptick. TGR: If you weren’t optimistic about the fall and 2014, would you be doing this interview at all? BA: Probably not. We’ve done our analysis and we see some light in bullion. The gold industry doesn’t work at a $1,000/oz gold price. In 2000, the industry didn’t work in a below-$275/oz gold price environment. In the shorter term, this is a period of seasonal strength, and the gold price is following a very consistent, seasonal pattern. Through to Q1/14 we have at least a short-term trade in a market that has been otherwise negative. In the longer term, we are pretty comfortable that we will not be in a sub-$1,000/oz gold price environment. TGR: Yet you and your team at Mackie have published a no-nonsense report, evaluating precious metals companies using $1,000/oz gold and $18/oz silver. The report put companies into three categories: Thrive, Survive and Die. What sort of response has the report generated? BA: We did the report as a direct response to the investment community. Everyone was concerned about which companies could survive a sharp downturn in the bullion price. We wanted to be succinct, hence the rather dramatic categories and the title, “Thrive, Survive or Die.”
We’ve heard from a number of third-party information distributors, such as Bloomberg, that the report had the highest readership for the week in which it was released. Our own website shows that to be the case. From the investment side, it was well received. People on the company side were very mindful of what we were saying. We received direct responses from each company in the Survive and the Die categories, recognizing our comments and addressing the issues, explaining what they are doing in response to the questions that the report posed. The companies were reasonably open in recognizing that they have issues and are addressing them. TGR: It must be nice to be relevant in the conversation. BA: No doubt about it. The renewed interest in the investment community compared to 12 months ago is gratifying. Average investors are severely underweight in gold stocks. They’re very sensitive about it; they recognize that gold equities have come off a bottom, and they’re concerned about being underweight. TGR: Let’s get to some of those companies starting with the Thrivers. It’s a short list. BA: It is a short list, and the macro point to be taken from its brevity is that the industry can’t stay intact at $1,000/oz gold and $18/oz silver. The industry will need to restructure to be functional in the longer term. The companies categorized as Thrives will stay intact. Their balance sheets are comparatively strong. They have mines that work at lower commodity prices. They can generate positive free cash flow even after capital expenditures, which means they won’t have to shut down mines or defer development expenditures. TGR: And what are those names? BA: In the senior category, the most dominant is Goldcorp Inc. (G:TSX; GG:NYSE). Goldcorp has stayed in there, not completely unscathed by a lower gold price environment, but in Q2/13 nothing shifted fundamentally for Goldcorp compared to its competitors. It also has some development projects that have positive rates of return, projects you’d still build at $1,000/oz gold. TGR: Those projects being Cerro Negro in Argentina, Éléonore in northern Quebec and the Cochenour expansion at Red Lake in northern Ontario. Which excites you most? BA: I didn’t really rate them in terms of excitement. Cerro Negro in Argentina has more political risk than Eleanore or the Cochenour expansion, both in Canada. Cerro Negro is a good quality project, which is needed because of the 30% inflation rate in Argentina today. In addition, El Sauzal in Mexico is coming to the end of its mine life, as is the Porcupine operation in Ontario, both of which would be on care and maintenance at $1,000/oz. Goldcorp is not without certain mines it needs to deal with, but that doesn’t fundamentally alter the company overall. TGR: Other Thrivers? BA: In the senior category, we felt that Kinross Gold Corp. (K:TSX; KGC:NYSE) would survive reasonably intact. This is more of a judgment call because the company will have to face issues such as the probable need to close Maricunga in Chile—a fairly low-grade operation. It also will probably have to defer Tasiast; it just doesn’t work. Those strategic calls aside, Kinross’ balance sheet is in pretty good shape. Its operations are performing reasonably well, and, with the exception of Maricunga, it can continue to operate at $1,000/oz gold. It isn’t as strong as Goldcorp, but compared to its compatriots, the changes at Kinross aren’t as dramatic for the overall corporation structure.
We also flagged Eldorado Gold Corp. (ELD:TSX; EGO:NYSE), with the recognition that it would have to defer capital programs on its development projects, a move it has already announced. Eldorado realized it couldn’t develop all of its assets simultaneously, that it needed to be more scheduled in planning its forward operations. AuRico Gold Inc. (AUQ:TSX; AUQ:NYSE) is a much stronger Thriver. The company has a lovely balance sheet. Its assets work at $1,000/oz. There is nothing it really needs to do. It can thrive intact without really any major issues. You can make a similar argument for Argonaut Gold Inc. (AR:TSX), with the slight caveat that it needs to sort out its new acquisition, the Magino mine, from the Prodigy Gold Inc. (PDG:TSX.V) merger. We don’t know what Argonaut intends to do there. At $1,000/oz gold, the easiest and most logical thing is to defer it. TGR: Does Argonaut have the management team in place to figure out Magino? BA: It certainly has the operating history and the personnel in place. Argonaut hasn’t said anything publicly about its plans for Prodigy. One of the themes that came out of our $1,000/oz assessment is if you’re talking about a hard-rock, 1-gram deposit in Canada, you are likely to have a hard time at $1,000/oz gold. TGR: In Q2/13, Argonaut’s El Castillo mine produced 4,000 oz more gold than your forecast. That is obviously good for Argonaut, but does Mackie prefer to underestimate or overestimate? BA: We prefer to be more conservative in our forecasts. Argonaut tends to optimize and to be on the higher side of our expectations. That reflects the company’s conservative approach to communicating production guidance. That’s a good thing. The market will always give you kudos for achieving or exceeding expectations. If you continue to underperform your guidance, the markets will discount you. TGR: Where will Argonaut’s growth come from? BA: Right now, we’re testing the models for survival at $1,000/oz. We’re not even talking about growth in this scenario. Argonaut has consistently optimized its existing operations, and it continues to do its business well. It has an open issue related to permitting at San Antonio to resolve, but overall we anticipate more optimization of existing assets. If Argonaut does take on something else, as it has done with the Prodigy asset, we would look for it to have a methodology or strategy. TGR: Any more in the Thrive category? BA: Among the smaller companies, we included Klondex Mines Ltd. (KDX:TSX; KLNDF:OTCBB), an operation in Nevada that is not yet in production. It is in a situation with spectacularly good-grade material. TGR: What do you make of the grades the company is reporting at Fire Creek? BA: Grade was the biggest overhang on the Fire Creek property. If I go back two years, when we first started talking about Klondex, the concerns were about whether the asset was as high a grade as it drilled out to be and whether it could be mined as an underground operation. Klondex had to address both concerns. The first bulk sampling targeted the better areas of the resource, where the material extracted exceeds 2 ounces/ton. The grade seems to be there. The question now is what will it show on a higher-volume basis? TGR: Klondex is trucking gold-silver mineralized ore to Newmont Mining Corp.’s (NEM:NYSE) facility. What do you think of that model? BA: It is not ideal. Custom milling is never the preferred way to go because trucking adds to the cost base and it is a more expensive way of processing ore. However, the presence of surplus milling capacity near Fire Creek underscores that Klondex may never have to build a mill. While using someone else’s mill increases operating costs, it diminishes capital costs. The sole capital cost is in the underground mining. We will have to wait for an updated resource to know if this asset justifies building a mill. Is there enough material to justify the upfront capital costs to build or buy and transport a new mill relative to the operating cost? If the answer is no, milling capacity nearby makes it possible to generate positive cash flow without building a mill. That’s the unusual aspect of the Fire Creek property’s central location in an established mining area. The company really has options. TGR: What other companies are you following? BA: We’ve been involved with Probe Mines Limited (PRB:TSX.V) for some time. What started off as something that looked like a better-quality 1 grams/tonne (1 g/t) bulk mining, open-pit deposit has morphed into what is likely to become a high-grade underground mine that will grade somewhere between 6 and 15 g/t. As subsequent drill results have confirmed, there is a very high-quality component to the resource—better than 10 g/t—that allows Probe the flexibility of investigating a smaller-scale, higher-grade development scenario. It would have a smaller footprint and a more affordable up-front capital cost. And interestingly, mineralization remains open. It has been one of the better gold discoveries in years. TGR: What characterizes a company in your Survivor category? BA: The Survivors are companies that will need to make material changes to endure at a $1,000/oz gold price. That means some hard choices: restructuring the balance sheet, deferring or cancelling development projects and/or closing existing mines that contribute to the production profile. TGR: A couple of those names? BA: The most high-profile is Barrick Gold Corp. (ABX:TSX; ABX:NYSE). Recently, the company has talked about removing its debt-repayment burden in the short term where its balance sheet was a bit stretched. The bigger issue is understanding what certain assets really do contribute to the bottom line. In our research, we identified assets in Australia and Africa, along with some copper assets. The biggest hurdle for Barrick right now is its Pascua Lama project in Chile and Argentina. These are major structural elements. It probably will be another six to nine months before we really know how Barrick will get through this transition phase. Pascua Lama is unlikely to be addressed before 2014. TGR: Is it time for Barrick Chairman Peter Munk to go? BA: I don’t know how much of the current decision-making process he influences. Has he not been closely enough involved? Was the board not as attuned to what was going on as it should have been? I don’t know, but clearly there has been fault. TGR: Can you give us some names in the Survivor category with market caps in the $200M range? BA: We don’t have many at that market cap. The closest would be Teranga Gold Corp. (TGZ:TSX; TGZ:ASX). TGR: Teranga recently acquired Oromin Explorations Ltd. (OLE:TSX; OLEPF:OTCBB). What are your thoughts on that merger? BA: It was long overdue. At a $1,000/oz gold price, Oromin’s project should not proceed on a standalone basis. It makes good sense for Oromin to blend with Teranga and use its infrastructure to process the Oromin ounces. The merger is accretive by any measure and is a good move by Teranga and Oromin. Of course, there will be issues to deal with, including the other joint venture partners in the Oromin joint venture group. TGR: What are the cash costs? BA: We haven’t seen those yet, post-merger. The whole dynamic will change. All upfront capital costs will be avoided, in the range of $350 million. There is no need to build a mill, so upfront capital costs will trade off against the costs of transporting the material to the Teranga mill. Overall it will be positive. If I were to speculate, it might mean slightly higher than average operating costs compared to the Oromin feasibility study, but upfront capital costs will be limited. No matter how you cut it, the overall economics should be substantively better. TGR: How about with Survivors with a market cap below $1 billion? BA: Primero Mining Corp. (PPP:NYSE; P:TSX) is an example. Its rate of return on the newly acquired Cerro del Gallo project drops below 10% on an internal rate of return basis. Primero would have to restructure and/or rethink its project development at Cerro del Gallo. Its San Dimas mine would operate fairly well at $1,000/oz gold, but developing Cerro del Gallo would stretch the balance sheet in the short term. TGR: Would the Cerro del Gallo project have similar cash costs to San Dimas? BA: Unfortunately not. That’s part of the issue. San Dimas is largely under control and operating quite well. But the capital burden of a new project at a low rate of return is on the cusp at $1,000/oz gold price. Ten percent is not enough to go forward. That’s a heart-wrenching decision. TGR: Goldcorp owns about 31% of Cerro del Gallo. How does that stake play in all of this? BA: I can’t speak for Goldcorp, but the relationship between Primero and Goldcorp has been fairly close. There will probably be some restructuring | |
| Middle East gold demand could jump on Syria crisis Posted: 04 Sep 2013 12:46 PM PDT But, according to Julian Phillips, it is unlikely to affect Indian demand or Chinese demand which remain worlds apart on these issues, except through its impact on the oil price. | |
| Pan African, Village reach settlement on wages Posted: 04 Sep 2013 12:44 PM PDT In the first positive development since wage talks began in South Africa's gold sector, both Village Main Reef and Pan African resources have concluded wage agreements. | |
| Posted: 04 Sep 2013 12:30 PM PDT While watching CNBC last Friday and again yesterday I learned the one thing that I should do regarding Syria. Time after time and guest after guest has come on to tell us, “Once the first shot is fired…you should sell all of your gold.” Huh? Really? Why? Did I start buying gold 15 years ago because I knew that we would attack Syria and maybe draw the rest of the world into the action? Should I sell my gold because all of the past “incursions” by the U.S. were “made" for TV and nothing “bad” ever happened? First off, the current thought process as far as I can tell is that we will strike Syria hard, no one else (the Russians, Iranians, Israelis nor anyone else) will fire a shot and Barack Hussein Obama will stand atop some destroyer or aircraft carrier in the Mediterranean with a sign in the background that says “MISSION ACCOMPLISHED.” This is NOT what is going to happen. The odds that Russia enters this fray is quite high by my estimation, Mr. Putin is no wimp and would not have sent troops and now more warships after giving stern warnings to us not to light the fire. One must also keep in mind that a “short” and surgical strike is NOT what the Federal Reserve needs to “reflate” a deflating system. They need an expensive war that requires a lot of debt which means heavy (heavier) printing and thus not short war. What if this was to actually get out of control? Should I still have sold my gold because past “wars” resulted in the immediate smack downs of gold and oil…and strength in the dollar? When I say “out of control,” how would (will) it play if the American public sees a destroyer or God forbid an aircraft carrier on fire and sinking? (Would this even be shown to the American public?) Can’t happen you say (and this is believed by the idiots in Congress who will vote for this war)? The Syrians are armed…armed with the most technological weapons made specifically to hit naval vessels and aircraft, these anti-ship missiles were made by Russia and sold to their ally Syria. Do you think they will not be used? Do you think Russia would not absolutely love to see these systems used after the entire world witnessed the U.S. fire the first shot? What do think the reaction would be here and abroad? Would the dollar go up? Would investors “panic” and sell their gold because the U.S. was actually retaliated against in kind instead of steamrolling their opponent? Will oil go down in price when Russia fires a shot? Will our stock market go up if Iran or Israel enters the fray? How about our interest rates? Will they go down or up? A better question is “will there be ANY buyers other than the Federal Reserve?” So we are being told to sell our gold “after the first shots are fired” because “that’s how it has always worked.” I will say to you the most dangerous phrase in investing…”it’s different this time” and explain why it is different now in simple fact and logic. I already mentioned to you that any attack could spread quickly, so unlike attacking Iraq, Afghanistan or Libya…Syria is a real foe with a very BIG best friend. Also, in the past the “finances” of the U.S. were never in serious question as they are today. Foreigners were buyers of dollars and treasuries…today they are sellers. We also never had a “consortium” of nations publicly ticked off at the U.S. and the G-20 meeting in talks to replace the dollar as the world’s reserve currency. I might add that economically we have not been weaker than we are now, just look at our manufacturing base…it’s gone. This unfortunately is a “war” that we need for our economy and to support (through more QE, printing, deficit spending or whatever you’d like to call it) our financial system. In any case, the “world” is a vastly different place today, than it ever was pre 2008 and the U.S. is no longer the only “big bully on the block” either militarily or financially. Just ask yourself how a war is paid for. If the dollar were to get kneecapped then how would we pay for or continue another war? So, you can listen to CNBC and “trade” or you can keep on stacking. Of course, if you listen to CNBC, follow their advice and “trade” your gold after the first shot is fired, it means that the “gold” is most probably “paper gold” because VERY few physical holders ever trade. Which is sad to say and I apologize for the insult…this would make you doubly foolish…one for listening to the advice of CNBC in the first place and secondly for owning fake “paper gold” and fooling yourself into believing there is even 1 grain of real gold behind it.Similar Posts: | |
| Drums of war spark rally in gold, silver and energy Posted: 04 Sep 2013 12:27 PM PDT Commodities, energy, gold and silver are safe havens that usually rise in value during international conflicts and war.The ramifications of increased involvement in the Middle East could have a major impact on global trade. | |
| RBI further tightens gold import norms Posted: 04 Sep 2013 12:18 PM PDT Though Indians hold over 31,000 tonnes of declared gold, a large part of gold jewellery exports takes place from special economic zones and export oriented units across the country, where gold imports have been further choked at these units. | |
| Recent rally in gold: Significant improvement or just a bigger pullback? Posted: 04 Sep 2013 12:03 PM PDT As the prospect of imminent attacks on Syria receded, gold extended losses and dropped below $1,400 an ounce on Friday. Will this drop trigger further dips? | |
| Syria will Lead to World War III and it will be Nuclear-Paul Craig Roberts Posted: 04 Sep 2013 12:00 PM PDT Former Assistant Treasury Secretary Dr. Paul Craig Roberts says, "Let's cut to the chase. It's got nothing to do with Syria. The reason they are looking for a fabricated excuse to attack Assad is to continue the radicalization of Muslims in the hopes this spreads into the Muslim populations of Russia and China. . . [...] The post Syria will Lead to World War III and it will be Nuclear-Paul Craig Roberts appeared first on Silver Doctors. | |
| News update:Protest in Romania over new Gold mine,strike hits 17 mines in Africa Posted: 04 Sep 2013 11:43 AM PDT Reuters reported that the strike in gold mines which began on Tuesday has impacted operations at 17 of the 23 mines where wage negotiations are still taking place. According to Chamber of Mines negotiating on behalf of the industry, operations in these mines were partially or severely affected | |
| Gold drops with oil as U.S. & Russia argue over Syria Posted: 04 Sep 2013 11:41 AM PDT Wholesale gold fell back below $1,400 per ounce for the third day running Wednesday lunchtime in London, dropping to $1,393 and trading 1.7% below yesterday's high as crude oil and world stock markets both fell 0.5%. | |
| Monsoon rains to bring bounty to India’s rural population Posted: 04 Sep 2013 11:22 AM PDT More cash in the hands of farmers however brings an unwelcome consequence for India's government - more demand for gold. | |
| This Ponzi Scheme of Government Financing Will Not Continue Forever Posted: 04 Sep 2013 11:21 AM PDT Since Nixon "temporarily closed the gold window" in 1971 all currencies have been created as debt, not as asset backed real money, like a gold Double Eagle. Year | US National Debt in $Billions 1913 | 3 1971 | 398 2013 | 16,730 The value of the debt backed paper is supposedly based on the face value, yield, duration, and the probability of repayment. Examples: If I lend my (hypothetical) broke, unemployed, and irresponsible friend $1,000 on an unsecured note, and he is unlikely to repay the loan, then the loan has a value of approximately zero. If you lend the government of Greece $1,000,000,000 on an unsecured note, to be repaid in 10 years, I suspect the value of that debt could be near zero sometime in the future. If you loan the US government $1,000,000,000,000 by purchasing 10 year T-Notes, you probably think the value of those notes is near face value. Let's hope so, but consider:
Caveat: This paper money machine is a beneficial servant to the political and financial elite. Examples that come to mind are: hedge fund managers, central bankers, national politicians, investment bankers, military contractors, oil company executives, venture capitalists and others. The paper money machine will not be changed easily. Reality for the rest of us: The paper money machine seems to be a destructive monster that sucks the economic life blood out of most people, including wage earners, retirees, savers, the unemployed, disabled, and essentially everyone in the bottom 90% as measured by income and total assets. If something cannot go on forever, it will stop. If Ponzi financing, paper money, budget deficits, and exponentially increasing debt cannot grow forever, they will eventually stop. The collateral damage will not be pleasant. This is why it makes sense to convert some unbacked paper and digital currency into real money – physical gold and silver. Store it someplace safe – outside the banking system and possibly in a country other than where you live. Physical gold and silver are for savings and insurance, not trading. Paper currencies that are certain to decline in value are for everyday transactions and convenience, until they are no longer useful. Don't confuse paper currencies or debt based paper with real money. Gold will remain valuable, while debt based paper can disintegrate easily and quickly. A few questions to help clarify thinking and future actions:
Repeat: This is why it makes sense to convert some unbacked paper and digital currency into real money – physical gold and silver. Store it someplace safe – outside the banking system and possibly in a country other than where you live.
Read: Gold, Silver, and the Sins of the Past GE Christenson | The Deviant Investor | |
| What do Carney’s targets mean for British gold investors? Posted: 04 Sep 2013 11:13 AM PDT Given gold is often referred to as a hedge against central banks' policy decisions, we thought it would be worth looking into how the gold price correlates to any changes in their key targets. | |
| US Dollar Index still strong, bearish trends in Gold charts Posted: 04 Sep 2013 11:07 AM PDT Euro Index fialed to sustain break above the 200 week moving average and hence likely to remain bearish. Gold has failed to breach key reisstance levels and technical charts indicate that recent upward movements have not been sustainable. | |
| Syria, Pipeline Politics, OPEC & the USDollar Posted: 04 Sep 2013 11:04 AM PDT
Syria is about the last gasp for the Petro-Dollar, the emergence of energy pipeline geopolitics, the rise of the NatGas Coop, the new dominance of Russian Gazprom, the eclipse of OPEC, the fall of the house of Saud, and a grand adjustment process in global commerce and banking. Refer to trade settlement outside the USDollar and diversification away from USTreasury Bond reserves management. It took some time to realize it, but the Cyprus bank incident was a misdirected attack against Gazprom. It failed. The entire Arab Spring movement, an ambitious disruptive project waged with foolhardy ambitions, has turned on itself. Egypt fell, its US puppet discharged. The entire North African region will be in flames soon. The USGovt interfered with a grand industrialization project for European industry, to be placed on North Africa intended to take advantage of cheaper labor, available minerals, nearby resources, and easy shipping. The resentment of Europe will show up in the future. The Middle East and Persian Gulf region is shifting its salute to Russia & China, as the noisy sectarian battles have been a common fixture since long ago. Bahrain has erupted. Saudi is clamping down and converting into an Islamic police state to create the Iran-Saudi repressive bobsey twins. Chaos is the longstanding objective of the USGovt in foreign policy infection, no change in decades.
Syria is about a lot of things, most of which are volatile, many unsolvable. To be sure, the naval port of Tartus is valuable for the Russian Military, always eager to wrest a seaport. Like Lebanon, Syria is a hotbed stronghold for HezBollah, never to be taken lightly. They are mortal enemies to Israel, whose nations have exchanged covert violence for years. Syria might have tight relations with the Shiites of Iran, even some in Iraq. However, Syria represents the crossroads of many important shifting geopolitical roadways that pertain to the global financial structure and commercial systems. Syria is the tipping point for a Grand Global Paradigm Shift. It is the last stand for the Anglo Banker world. Syria will not go easily into the Russian camp, into the Gazprom fold, into the European energy market sphere. For if it does, the entire USDollar system of commerce and the USTreasury Bond system of reserves management will fall by the wayside and open a new era with Eastern dominance. But the Western powers cannot stop it. Clouds of whatever type do not halt pipeline flow, nor pipeline geopolitics.
WHAT SYRIA MEANS Syria stands at the door to the emergence of the Eastern Alliance, the new dominant energy pipelines, a new payment system detached from the USDollar and Anglo banks. Syria stands at the door which controls some incremental European energy supply. Syria stands at the door to Gold Trade Settlement, with a transition step that brings more importance to commodity backed currencies and proper valid systems for trade. Syria means the pipelines strangle the USDollar. Syria means the end of the US system of IOU coupons that pollute the global banking system. Syria means the status quo is coming to an abrupt end. Syria represents a clash of East versus West, which has more commercial and bank significance than anything reported by the lapdog press. Notice the direct line from Iran through Iraq to Syria. The natgas of Iran reaches the Mediterranean Sea through Syria. RISE OF PIPELINE POLITICS Syria is the end port for what the Jackass calls the Shiite Gas Pipeline. It begins in Iran and ends at the Mediterranean seaport in Syria. It was designed to terminate at a Shiite friendly nation. Thus my informal name. Ironically, Qatar is fighting against the Syrian Assad loyalists, but the Qatari natural gas will be directed into the same pipeline. In the last year, a giant Persian Gulf gas discovery was made in a joint Iran-Qatar project. Syria is about the last gasp for the Petro-Dollar. It represents a climax in Energy Pipeline Politics. Quietly for the last 15 to 20 years, Russia has been building crude oil pipelines and natural gas pipelines from the Mother Russian lands to points in Europe and China and the Former Soviet Republics. They have been constructing modern LNG gas port facilities. They have been forging contracts to supply energy to countless nations. The US-led plans have been more interference than constructive. They have consistently attempted to obstruct, rather than to build with some justification of common benefit.
The US news networks cannot tell why or how Syria is important relative to the USDollar. Most Americans cannot define money, let alone conceive of a Petro-Dollar defacto standard. They do not comprehend the global banking system having practices as an extension of Saudi crude oil sales in USDollars. They remember nothing of the Kissinger Arab Oil Surplus Recycle Pact into USTreasury Bonds and US big bank stocks. The focus should be on Pipelines and the closely related geopolitics. The focus should be on the eclipse of OPEC. The focus should be on the loss of Western Europe to the Russian fold, where natural gas supply will alter decisions. Notice the UK Parliament did not offer military support for the USGovt in Syria. They might have received a phone call from either Putin at the Kremlin or the CEO of Gazprom. Coming to a world near you is the NatGas Coop led by Gazprom. A regular feature in geopolitical decisions will be the integration of natgas supply to Europe and Great Britain.
ECLIPSE OF OPEC Clearly heading out is OPEC and its influence. The dirty secret for ten years has been the depletion and decline in Saudi oil reserves. The water cut has surpassed 80% on a regular basis at Saudi oilfields. It is the percentage of water in produced “oil” wells. The interior pressures are dissipated. The Saudis are suffering from lost oil surplus, rising government debt, higher domestic energy costs, higher food costs, internal strife, fascist islamic rule, rising political prisoner population, and geriatrics at the throne. It sure would be good to know how King Abdullah returned from a coma after a few months, where his organs were declared defunct. Maybe like Saddam Hussein, he has some handy doubles. The OPEC nations in the last several years have become a loud disorganized gaggle of devious dealers who discount prices and lie on output on a regular basis. The cartel has no unity anymore. Their honorable Saudi core is disintegrating. The Saudi OPEC core is precisely the foundation to the Petro-Dollar and the justification for global banking systems being based in USTreasury Bonds. Coming online is the NatGas Coop. Coming online is gold trade settlement. Coming online is the BRICS Bank. Coming into prominent view is Gazprom, the leader of the NatGas Coop. It has some powerful strange bedfellows who deal in one currency, natural gas.
CYPRUS INDIRECT ATTACK The news networks told of Cyprus being the site of bank crisis, account confiscations, the bail-in procedures creating a Western model, and resolutions. It took a while to realize, but the Jackass back in the March Hat Trick Letter noted the Gazprom angle and potential motive. The Jackass mapped out a Prima Facie case for motive on the Cyprus bank attack. It was a challenge to Gazprom and the Russian banking system, more than a Bail-in Model. It was an attempt to cut off the Russian encroachment into Europe with their Gazprom weapon, the most disruptive economic weapon seen in decades.
Cyprus used to serve as the primary window for the entire Russian banking system, and the central bank too. All bank transactions from Russia went through Cyprus. The conclusion could be that the Bail-in procedure is a suicide pact for the West. It is a declaration that if accounting rules are to be enforced, and capital requirements enforced, then the big Western banks would slit their throats and force the vanish of private bank accounts. Ditto if the legal prosecution of big bank were to begin in earnest. They cannot pull that switch unless major banks are all dead gone, from grotesque contagion. Since Lehman failed, all the big Western banks are lashed together, much like sailors at sea on deck during a nasty storm. If one goes, all go. The banker elite needed to disguise their attack of Gazprom in Cyprus. They wanted to interrupt the progress made by Russia in Pipeline Politics. The public bought the false story, again, like they always do. They do not think beyond the first visible layer.
FAILED USGOVT POLICY The USGovt lost on disruptions to Iran internet and undersea communication lines between 2004 and 2007. To be sure, the planned Iranian island center for trade processing never occurred, a success of sorts. The USGovt lost on Iranian sanctions. The rise of Turkey, India, and Chinese deals with unique payment systems have come to the table. Even the Japanese and South Koreans refused to play along. The entire workaround process served as a training ground for gold trade settlement. It will have a certain blossom, with the full weight of the BRICS nations behind the current initiatives. The US lost on Iran-Pakistan Pipeline, since China stepped forward, guaranteed funding for its completion, and even worked to extend the connected pipelines to the Western border of China for supply. The USGovt lost with its puppet named Mohammed Morsi, who was ousted in Egypt. The unspoken cause was food price inflation, not political discord as reported by the US news network minions. The USGovt won the Qaddafi’s gold (144 tons) but with a grand backfire on the Libyan Embassy controversy. The Pentagon does not appreciate the sacrifice of Navy SEALS to deceit and hidden motives. The biggest failure by the USGovt could be the monetary policy at work by the US Federal Reserve. The QE bond purchase program has produced massive broad price inflation globally, in addition to rising energy costs, rising material costs, and rising related follow-on costs. It is difficult to find any USGovt or USFed policy of value, other than to serve the bank syndicate.
NATGAS COOP The key to the future is seen on the margin of new power. It is the Natural Gas Coop. To date, it has no name. Curiously, its power might lie in the fact that it has no name, no central nexus. It is a de-centralized cooperative. But more accurately, it has a Russian core, a brain trust at Gazprom. It has a certain Kremlin command center, since a newfound strategic weapon. It is their greatest global weapon in decades. The strange bedfellows consist of Russia (home HQ of Gazprom), Turkmenistan (#2 natgas global producer), Iran (giant renegade producer), Qatar (biggest LNG star), and Israel (from Tamar Platform). The presence of Sunni Qatar from the Persian Gulf and US Fascist Ally Israel make for the odd mix. In June, the Israel Govt signed a deal with Russian Gazprom. It called for directing all surplus natgas output from Tamar to the Gazprom pipeline system, and the European market. The Israeli Economy will greatly benefit from the surplus revenue.
Game over for OPEC and a guaranteed demise of the Petro-Dollar. Simply stated, Saudi Arabia is to OPEC, what Russia is to NatGas Coop. The phase out of OPEC is in progress, without much recognition. The emergence of the NatGas Coop is to be better understood in the near future. A tremendously important shift is taking place in energy geopolitics. The consequences will be rapid diversification out of the USTreasury Bond, colossal Indirect Exchange in asset deals, and broad abandonment (aka dumping). In the process, almost no buyers of USGovt debt will be visible, and the USFed will be leaned upon more fully for bond purchases. The Weimar machinery will strain to the limit. The USGovt debt default will occur, as the event has become more visible, a 2008 Hat Trick Letter forecast.
DEMISE OF PETRO-DOLLAR Not 5% of Americans comprehend the defacto Petro-Dollar standard. They will when the Saudis must step aside and permit OPEC to be eclipsed by the NatGas Coop with its expansive global network of pipelines. The great USDollar devaluation will occur when the Petro-Dollar falls by the wayside. The result will be profound price inflation in the USEconomy. The fall of the Saudi regime is guaranteed eventually, and likely soon. The Saudis cannot play both sides (US & Russia) successfully. They will fail with both partners. The NatGas Pipelines are critical, as they wield enormous economic leverage and power. Together, the NatGas Coop phases out OPEC and assures the end of the USDollar as it is currently known and structured. Watch the Saudis soon indicate that non-USDollar payments are accepted for crude oil sales, like accepting GBPounds, Euros, Japanese Yen, even Swiss Francs. Watch the Saudis closely for various signals of impending doom, death signals. As energy sales move gradually, then rapidly, away from the USD settlement, the world will go through a transformation. The banking system will change in their foundations, one nation at a time, with diversification away from USTBonds. It is Game Over!!
Syria is the last line of defense for the USDollar and the exalted position of OPEC. Syria is the potential recognized debut of the NatGas Coop in significance. It is all hidden, except to the Hat Trick Letter. In the new era emerging, Gold will prevail as the Gold Trade Standard is put in place. It will not be done with a stake in the ground from the banking system of the FOREX currency trading arenas. Therefore it is so dangerous to the status quo. My full expectation is that the USGovt will back off in Syria. The retreat will not be seen as a magnanimous gesture, but rather more like a bully backing down. Revelations will be very damaging on chemical weapons and the roles played. Roots to Saddam Hussein will be reviewed. Iran already has tens of thousands killed by chemical weapons over 20 years ago in a war waged with Iraq, with a hand from the Bushes. The United States leadership is in for some cold water in the face. The United States is due for some extreme isolation. The NatGas Coop will change the global map. It will open the door to the Eurasian Trade Zone for commerce, and open the door to the Gold Trade Settlement for finance. Some quantum leaps are in store and soon. Gold will emerge with a new Gold Trade Standard, whose price will shock most observers. Think multiples higher. Syria is a seminal event for gold.
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| Asia's richest man, Li Ka-Shing, looking to make gold investments Posted: 04 Sep 2013 10:56 AM PDT Gold pulled back this morning on the open in Asia in an unusual manner, which saw a quick almost instantaneous $8 drop from $1,412/oz to a price quote at $1,404.45/oz and then a recovery to $1,412/oz. | |
| Take Your Money Out of the Bank: The Video the Global Banksters Don’t Want You to See Posted: 04 Sep 2013 10:30 AM PDT If you think the FDIC will come riding to the rescue of the coming us bail in, you might want to consider these facts: The post Take Your Money Out of the Bank: The Video the Global Banksters Don’t Want You to See appeared first on Silver Doctors. | |
| Jim Willie: Syria, Pipeline Politics, OPEC & the USDollar Posted: 04 Sep 2013 09:14 AM PDT
Syria represents the crossroads of many important shifting geopolitical roadways that pertain to the global financial structure and commercial systems. Syria is the tipping point for a Grand Global Paradigm Shift. It is the last stand for the Anglo Banker world. | |
| BREAKING: Silver Miners Lose Half A Billion Dollars Posted: 04 Sep 2013 09:00 AM PDT In an amazing change of events, the top primary silver miners went from making money in the first quarter of 2013, to losing over half a billion dollars in second quarter. The majority of losses came from huge impairment charges due to much lower silver spot prices during the period. If we look at the [...] The post BREAKING: Silver Miners Lose Half A Billion Dollars appeared first on Silver Doctors. | |
| Small cap gold companies shine in the UK as investors flock to the miners Posted: 04 Sep 2013 08:46 AM PDT The Telegraph is out this week with and interesting piece about where UK investors are putting their money – as it turns out its the gold space. From the report: Britain’s smallest listed... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] | |
| Posted: 04 Sep 2013 08:45 AM PDT Since the current, terminally cancerous European crisis commenced in 2010, we have lived with a daily bombardment of "horrible headlines" from the so-called PIIGS economies of Portugal, Ireland, Italy, Greece, and Spain. It's a bit of a "misnomer" to focus on these five specifically; as in reality, countless Euro Zone nations are experiencing the same, untenable financial conditions. However, these five are the largest; particularly Italy and Spain, the Euro Zone's fourth and fifth largest economies, respectively – combined, holding an astonishing $5 TRILLION of debt. Frankly, I have been utilizing the term "PIFIGS" for the past two years; as in my mind, Europe's third largest economy – France, with $2.5 TRILLION of debt itself – is in equally dire condition, particularly given its banks' collective exposure to PIIGS debt. Since the initial Greek "bailout" in May 2010, average PIIGS unemployment has surged from an already depression-like 14% to catastrophic levels above 20%; whilst debts have soared and social unrest significantly expanded. Frankly, it is beyond comical to see PROPAGANDA of a "SO-CALLED RECOVERY" when REAL data like employment continues to accelerate downward – with no end in sight. In my mind, there is a 100% CERTAINTY of default among these nations; most likely, with Greece going first. Frankly, I expect the Greek implosion to occur from within – via political and social upheaval – as opposed to some arbitrary decision by a bunch of cold-blooded, sociopath bureaucrats in Brussels. In fact, the PIIGS economic situation has become so dire, and so helpless; that the very term itself has become generic for a hopeless economic situation that MUST end in disaster. Anyhow, the key point is that the "PIIGS" have indeed lived up to their hype; and thus, we all watch and wait for inevitable disaster – like spectators at a NASCAR race in the rain at Talladega. Sadly, I believe the PIIGS may themselves be shortly usurped in their roles as basket case poster children; as indeed, the "Fragile Five" have come to town. I looked long and hard to find who coined the term "PIIGS" – but couldn't find a definitive answer. However, the "honor" of naming the Fragile Five goes to none other than the bloodsuckers at Morgan Stanley; although in their defense, they couldn't have better nailed this description of the CATASTROPHIC fates headed for vaunted "BRICS" of Brazil, India, and South Africa; plus two of the world's other major population centers, Indonesia, and Turkey. In fact, per yesterday's piece – "THE MOST IMPORTANT ARTICLE I'VE EVER WRITTEN" – the combined population of these soon-to-be HYPERINFLATED five nations is 1.8 billion, representing more than a quarter of the world's total. Anyhow, the Fragile Five came into international consciousness late this summer, in reference to the plummeting currencies of these supposedly "strong" nations; yet again, a glaring example of how MSM PROPAGANDA touting "recovery" failed miserably in its quest to deceive the masses. Per the aforementioned piece, EVERY global currency has been victimized by the Fed's MASSIVE inflation exportation; on average, by 10% in the past six months, and 20% over the past two years. However, the "Fragile Five" have experienced far greater inflation over this period, per below; i.e, more than 50% greater…
Thus, it should be no surprise that Brazil, Turkey, and South Africa ALL experienced MAJOR civil unrest this summer; and that I recently moved India ahead of Greece in my personal list of "most likely to catalyze the next 2008-style global crisis." In fact, I recently postulated that India might be the next Egypt, given the extreme similarities in the populations' respective spending patterns. However, even I was shocked when I went back to the chart I utilized to support this belief last month; as apparently, the "Fragile Five" nations are faced with the identical situation. That is – as I wrote two months ago in "INFLATION AND ARAB SPRING" – the more a nation's population spends on LIFE NECESSITIES like food, the more prone they are to importing INFLATION from the Fed's printing presses…
Consequently, I am more bearish on America's near-term economic and financial outlooks than at ANY time in my 24-year career; let alone, its long-term viability as we have known it. Do not be surprised at ANYTHING the "Fragile Five" governments do to stem the unstoppable collapses of their currencies; which ultimately, will foster social unrest, political revolution, and likely, WAR. I wrote of such things in "CAPITAL CONTROLS, HERE WE COME" and "BLACK MARKET"; but in the REAL world, things tend to occur MUCH more dramatically than "on paper." Thus, it is only a matter of time before the "Big One" hits; and when it does, you had better be prepared with gold, silver, and other life necessities. Because if you aren't, it will already be too late.Similar Posts: | |
| Russia Has Equipped Syria With Their Most Advanced Anti-Ship Missiles Posted: 04 Sep 2013 08:30 AM PDT Russia has sold Syria highly advanced rocket launchers, anti-aircraft missiles and anti-ship missiles. In fact, the P-800 Yakhont anti-ship missiles that Russia has equipped Syria with are the most advanced anti-ship missiles that Russia has. When the United States strikes Syria, they might be quite surprised at how hard Syria can hit back. The Syrian [...] The post Russia Has Equipped Syria With Their Most Advanced Anti-Ship Missiles appeared first on Silver Doctors. | |
| 90% Silver Sale!! Any Quantity Only $2.29 Over Spot!! Posted: 04 Sep 2013 08:21 AM PDT Doc’s Deal of The Day The post 90% Silver Sale!! Any Quantity Only $2.29 Over Spot!! appeared first on Silver Doctors. | |
| Asias Richest Man, Li Ka-Shing, Looking to Make Gold Investments Posted: 04 Sep 2013 08:02 AM PDT gold.ie | |
| Posted: 04 Sep 2013 07:45 AM PDT Richard Russell has some strong opinions on how Obama is (mis) handling the Syrian problem below. He also has an opinion on how it will affect gold.
Today I highlight a very important video link and related comments from Jim Sinclair. The message is clear and of particular importance to our readers that have in excess of $100,000 in a bank account with a to-big-to-fail bank. I urge all of my readers to link onto the video, below. It is well done, factual and prophetic. It is a must watch video!
If you take the video's message seriously, and I do, then one of the smartest things that you can do is to remove your excess cash from the banking system and park them in physical gold and silver. Apart from the safety that the precious metals offer, since they are outside of the system and in your possession, and that is no small thing, their performance lately has been outstanding as well. Gold and silver lost their luster between April and June as they suffered the sharpest quarterly drop in price on record. In the last week of June, gold and silver hit two year lows of $1,192 and $18.61. Gold fell 34.2 percent from the October 2012 high and silver plunged 48.5 percent. But that all changed by the middle of July. Gold is up a strong 20 percent and silver has rallied by 32 percent. This remarkable performance continues even in the face of the Fed’s sustained tapering threats During this time frame, the silver/gold ratio dropped from 67 to 1 to 58.6 to 1. Just a while ago, it took 67 ounces of silver to buy one ounce of gold. Now it only takes 58 ounces of silver to buy one ounce of gold. The ratio could easily fall further to 55 to 1 or lower. Gold is doing great, but silver has outperformed gold by 13.4 percent! Most of the western demand for silver is investor-based. Smaller, “retail” investors are among silver's most loyal enthusiasts. The US Mint's sales of silver coins are running at record pace this year, with sales up to late August of 33 million ounces (1,026 tonnes). That already equals the level of all of 2012. Since gold has been weighed down by import restrictions from India, traditionally its largest consumer, Indian silver imports picked up the slack. According to research at Thomson Reuters GFMS in Mumbai, India's total silver imports have more than doubled from last year, reaching nearly 3,000 tonnes in the first half of 2013 compared with 1,900 tonnes in all of 2012. Even though the bail-in problems could still be a few years away, a black swan event, like an escalating war in Syria with Russia joining into the fray – or an Israeli attack on Iran's nuclear facilities (both likely) – or less than a vote of confidence to the dollar at the upcoming G-20 summit later this week could light the fuse. It is in times like these when one should be prudent, and being prudent means that one should be early. And what a great time to move dollars out of the problematic banking system and into gold and silver. They are the best performing assets for the last two months. An even more bullish case for gold is in play now that the South African gold mining industry is experiencing a strike that will shut down most of the gold production (from the number two gold produced in the world) and the strike is expected to last until Christmas, or longer and China is buying up all the gold in sight. It's always about supply/demand. Supply will be way down and demand is way up. Shortages will act like a strong wind to gold's sails. The odds of a meaningful cutback, or "taper" in the Fed's QE programs are low, and if the Fed does make the mistake and decides to cut back, even a little, although the immediate and short-term affect on gold could be negative, it won't last for long. If the Fed does taper, interest rates will rise, and the housing market, the bond market, the stock market and the economy will scream for more liquidity. And they will get it, and gold will then really be off to the races. What was a short-term drag on gold will quickly turn into a medium-term accelerator. I honestly expect gold and silver to perform extremely well for the rest of the year and into the spring, even if there is a mild Fed-induced pullback; but I give them more credit than foolishly tanking the economy. Gold won't hit any strong resistance until it bumps up against $1550. That should put silver at $27 or $28. With gains like this in our sights, and the threat of bail-ins to our deposits in our banking system a guaranteed event, the choice is a simple one. The video makes it perfectly clear; it is not a matter of if, it is only a matter of when. It will happen. And one of the events that is certain to trigger it is rising interest rates. The leverage in that market is severe. The derivative exposure is enormous. Any cutback by the Fed could ignite the problems. And if the Fed doesn't taper, the dollar will face strong international pressure to devalue. The emerging nations, China, India and Russia, plus Iran and Venezuela would like nothing more than to declaw the dollar. The dollar is NOT strong. The Japanese yen, the British Pound, and the emerging market's currencies are all so weak that the dollar only looks stable. It is an illusion. The dollar excess is causing the rise in commodities – gold, silver, oil, grains, everything is going up in dollars and this is causing hardships all over the developed world. Arab Spring is mostly about not being able to afford food and gas. A hungry stomach is what leads the masses into the streets. It's not about politics; it's about feeding your family. Forget about the hit gold and silver took earlier in the year. It was a manipulated masterpiece engineered by Goldman Sachs and JPMorgan. Yes, they made a fortune trading the metals down while behind the scenes they were going long (JPMorgan on the Comex and Goldman Sachs in GLD). But the fundamentals that propelled gold and silver up to that point never changed; in fact they are stronger now than they were before. The bull market is NOT dead. It is very much alive and well and it is the dollar that is in a precarious position – and the banks are too. Think this through very clearly. I don't want to remind you six months from now what a great trade this was for those who understood the message and acted on it. And the truth is, very few of our readers will act. They will sit on the sidelines and think about it and watch the market and only after the price has risen a lot from these levels will they feel safe enough to get back in, gingerly. That's what happens when we get burned by 34 percent and 48 percent. But remember, gold has already recaptured over half the loss and silver around one third of the drop. Those are impressive gains in such a short period of time. Let's play a game – let's pretend it's September 2010. Gold is $1,200. One year later gold is $1,900. It can happen again. It may already be starting. Soon, the excitement will start to build. I expect that Miles Franklin will have a BIG fourth quarter. And we want you to be a part of it with us. We make a percent or two and you stand to make double or much more. We love it when you make money. Now is the time to plant the seeds.
Similar Posts: | |
| Gold traders watching macro data, seasonal September patterns Posted: 04 Sep 2013 07:39 AM PDT Despite the strength in the U.S. dollar, the gold has reasserted its role as the safe haven as the uncertainty in the Middle East influences sentiments this month. | |
| Stewart Thomson: Has Gold Really Bottomed? Posted: 04 Sep 2013 07:00 AM PDT I realize that most investors in the gold community probably believe that the June lows near $1180 are a "final" bottom. I think it's a bit early to make such bold statements. Regardless, there's no question that the $1180 area is at or below the cost of production, for many mining companies. Value-oriented investors know [...] The post Stewart Thomson: Has Gold Really Bottomed? appeared first on Silver Doctors. | |
| COMEX Inventories Are On the Verge of Disappearing Posted: 04 Sep 2013 06:49 AM PDT Yesterday, a desperate Cartel engaged "THE 2:15 AM" PM-suppressing algorithm for the 65th time in the past 69 days. They failed, of course, as by day's end gold was $18/oz higher. However, it is truly comical to watch this charade in action, as this pathetic operative was attempted as two-thirds of the entire South African gold mining industry commenced a strike that is expected to last until at least year-end; whilst Steve St. Angelo presented verifiable PROOF the silver industry cannot operate profitably below $30/oz. Conversely, with Treasury yields soaring to nearly 2.9% amidst surging oil prices; John Boehner essentially GUARANTEEING a Congressional "yes" vote on invading Syria; Israel test firing missiles and ensuring Assad will "disappear one way or the other"; San Bernadino becoming the third California city to file for bankruptcy protection (MUCH more where that came from); radiation levels at Fukushima exploding to levels that will kill anyone in the vicinity; and red ink across all European equity markets, the PPT fought reality "to the death" in its quest to close the "DOW JONES PROPAGANDA AVERAGE" in positive territory; as if ANYONE really cares anymore what equities do. Just ask the Venezuelans, who are watching their primary stock index explode as the nation heads closer and closer to Weimar-style inflation. Amazingly, the day's MOST IMPORTANT PM STORY went nearly completely unreported; which shows you just how dissociated Americans have become from reality. And that is, of course, is the fact that COMEX inventories are on the verge of disappearing; setting the stage for the inevitable end of the PAPER PM suppression that has destroyed the financial world – and frustrated PM longs – for the past decade. As I wrote last week in "COMEX REGISTERED INVENTORIES – COULD DISAPPEAR ANY DAY," the ongoing COMEX inventory drain has been historic; collapsing from 3,000,000 ounces just before April's blatantly orchestrated "ALTERNATIVE CURRENCIES DESTRUCTION" to just 768,000 ounces last week – valued at just under $1.1 billion. Well yesterday, the COMEX issued its weekly update on such; and lo and behold, registered gold inventories plunged an additional 9% – to just 702,000 ounces. At this pace, the ENTIRE COMEX could be drained of registered inventory by year-end; as which point, it would cease to exist as a price discovery mechanism. And yet, I hear nothing but crickets on the topic – outside the terrific Jesse's Café Americain website…
Today, of course, "THE 2:15 AM" is back for its 66th visit in the past 70 trading days; as the Cartel grows still more desperate as the END GAME of collapsing currencies and freely-traded PMs approaches. Just as they battled for weeks at the $1,300/oz level – only to be soundly defeated – they are now attempting to hold the line on $1,400/oz; in front of tomorrow's G-20 meeting, Friday's NFP report, and the upcoming Syria, Congressional funding, and "debt ceiling" debates – among countless others. However, they WILL again fail – as they ALWAYS do; and when they do, the historical "barometers of bad tidings" will shine like the government-shaming beacons they have been for centuries. Care of a rush of Chinese and Indian festivals – not to mention, above average financial market turbulence – PMs typically post their best gains in the September through December period. Given the potentially cataclysmic events "circling the wagons" as we speak, I'd be hard-pressed to believe the Cartel can prevent such typical PM behavior this year…
And if COMEX registered inventories continue to plunge – amidst ongoing futures backwardation – don't be surprised if A LOT more occurs in the PM markets than most could imagine. Just ask Dallas Federal Reserve President Richard Fisher – one of the most noted "hawks" on the FOMC; who just yesterday, disclosed he owns $1 million of the GLD ETF. Not to mention, Goldman Sachs; which added $450 million of GLD in the first quarter. Too bad such "paper gold" won't help them when the system inevitably fails; but at least they understands the dire, irreversible financial situation America faces.Similar Posts: | |
| A quiz on Gold for both the novice and expert Posted: 04 Sep 2013 06:32 AM PDT There are several interesting information on gold and precious metals that compiling them can be fun and can also be used as a game to test knowledge | |
| Gold rises to $1413, may hit $1500 in October Posted: 04 Sep 2013 06:23 AM PDT Gold is now behaving more like a physical commodity market facing a global recovery, according to a CME Group report. It is noteworthy that gold has managed to recoer in the face of the adverse currency market action on Tuesday. | |
| Gold rises to $1413, may hit $1500 in Octobe Posted: 04 Sep 2013 06:23 AM PDT Gold is now behaving more like a physical commodity market facing a global recovery, according to a CME Group report. It is noteworthy that gold has managed to recoer in the face of the adverse currency market action on Tuesday. | |
| Asia’s Richest Man, Li Ka-Shing, Looking to Make Gold Investments Posted: 04 Sep 2013 05:40 AM PDT According to Bloomberg, Asia's richest man, Li Ka-Shing, is looking to make gold investments. The Chinese born, Hong Kong business magnate, investor, and philanthropist is considered to be the richest person in Asia and the richest person of Chinese descent in the world. Forbes estimates he is the 11th richest person in the world with a [...] The post Asia’s Richest Man, Li Ka-Shing, Looking to Make Gold Investments appeared first on Silver Doctors. | |
| Asia’s Richest Man, Li Ka-Shing, Looking to Make Gold Investments Posted: 04 Sep 2013 04:34 AM PDT It is likely that he does, as he is Chinese and was a Chinese refugee who fled to Hong Kong with his family to avoid the perils of war. Refugees who flee from their homeland to start new lives in other countries tend to have a deeper appreciation of and understand the importance of owning physical gold. Today's AM fix was USD 1,403.75, EUR 1,065.63 and GBP 899.67 per ounce. Gold climbed $17.50 or 1.26% yesterday, closing at $1,411.80/oz. Silver surged $0.83 or 3.54%, closing at $24.26. Platinum rose $18.60 or 1.2% to $1,532.80/oz, while palladium inched up $2.97 or 0.4% to $715.47/oz just before the close.
Gold pulled back this morning on the open in Asia in an unusual manner which saw a quick almost instantaneous $8 drop from $1,412/oz to a price quote at $1,404.45/oz and then a recovery to $1,412/oz. Thereafter gold gradually trended lower on technical selling and profit taking after breaching $1,400/oz and rising to $1,415/oz yesterday after Israel launched a test missile which heightened tensions in the region and President Obama received support from some senior republicans for a strike on Syria. Friday’s non farm payroll data may foreshadow the U.S. Fed’s imminent decision on tapering to come at the FOMC meeting later this month. Geopolitical concerns about conflict in the Middle East will support gold. The Middle East remains a powder keg and one wrong move could lead to conflict, higher oil prices and a new bout of ‘risk off’ sentiment which would support gold. The gold mining strikes in South Africa are also supporting gold prices and industrial unrest, along with infrastructural and geological constraints, have greatly reduced production and therefore supply from South Africa. According to Bloomberg, Asia's richest man, Li Ka-Shing, is looking to make gold investments. The Chinese born, Hong Kong business magnate, investor, and philanthropist is considered to be the richest person in Asia and the richest person of Chinese descent in the world. Forbes estimates he is the 11th richest person in the world with a net worth of $27 billion in U.S. dollars. Two of his sons are believed to be billionaires in their own right. His primary operating company is Hutchison Whampoa Limited, owner of the mobile phone network, Three. CEF Holdings Ltd., a venture between Li Ka-shing's flagship company and Canadian Imperial Bank of Commerce, is looking to acquire gold assets after a slump in prices created buying opportunities. "Long term, gold is a good place to be," CEF Chief Executive Officer Warren Gilman, 53, said in an interview in Hong Kong. Cheung Kong Holdings Ltd, controlled by Li, Asia's richest man, and CIBC each own 50% of CEF. The venture is focused on owning gold mining companies globally. Gilman previously co-founded Canadian Imperial Bank of Commerce's (CIBC) global mining group and was later vice chairman of the bank's CIBC World Markets.
"I was a little uncomfortable making investment in gold at $1,700 and $1,800 an ounce," Gilman said yesterday. "The correction we've had this year from my perspective is great because we can hopefully fulfill that objective of making some gold investments." Li, 85, has an estimated net worth of $27 billion, according to the Bloomberg Billionaires Index. CEF Holdings was established in 1974 by Cheung Kong and CIBC, Gilman said. "It's tougher and tougher to find economic gold deposits in safe jurisdictions," Gilman said. "You see mine supply struggling to keep up with demand long term. That's a great recipe for higher prices in the longer term." Ka Shing is known to have a penchant for hard assets and owns infrastructure, shipping, energy and real estate assets, but it is not known if he owns physical gold. Li Ka Shing charity foundation is called the "Heart of Gold" and has recently been extended from Mainland China to Hong Kong. It is likely that he does, as most very wealthy people, especially in Asia, own some physical bullion for financial insurance purposes. Increasingly, high net worth individuals and family offices are investing in gold as means to protect wealth from currency devaluations. | |
| Gold Drops with Oil as US & Russia Argue Over Syria Ahead of G20 Posted: 04 Sep 2013 04:30 AM PDT Bullion Vault | |
| Aim investors go for gold after Isa rule change Posted: 04 Sep 2013 02:28 AM PDT Investors ploughed money into small gold mining companies after new rules allowed Aim-listed shares to be held in Isas, data show. 
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| Monsoon Rains in India to Bring an Unwelcome Consequence - Increased Gold Demand Posted: 04 Sep 2013 02:23 AM PDT "The precious metal equities continue to stink up the place" ¤ Yesterday In Gold & SilverThe short selloff during the first hour of London trading proved to be the low of the Tuesday session, and by 10 a.m. BST the gold price the price jumped back to unchanged from Monday's close. From that point gold traded sideways until about ten minutes after the 8:20 a.m. EDT Comex open, and the subsequent rally ran out of gas/got capped shortly before 2 p.m. in electronic trading. The high tick at that point was recorded by Kitco as $1,417.70 spot. After that, the gold price gave back about five bucks of its gain going into the 5:15 p.m. New York close. Gold finished the Tuesday session at $1,412.20 spot, up $15.70 from last Friday's close. Net volume for both Monday and Tuesday combined was reported as 215,000 contracts, which was not overly heavy. The silver price chopped around in a broad 25 cent range either side of unchanged right up until ten minutes after the Comex open, and the subsequent rally topped out about 9:50 a.m. EDT. The high tick was $24.60 spot. From there it traded more or less sideways until 1 p.m., and then the silver price sold down a bit into the close. Silver closed on Tuesday at $24.28 spot, up 75 cents from the prior Friday's close. Volume, net of September and October, over the Monday and Tuesday trading session was reported as 67,000 contracts. Platinum had a nice rally during the New York trading session, and palladium's minor gains in Europe got taken away by lunch time in New York. Here are the charts. The dollar index closed on Monday at 82.24 and spent all of Tuesday moving unsteadily higher. At its 11:30 a.m. EDT zenith, the index painted 82.48. After that it got sold down a bit going into the close, and it finished the Tuesday trading session at 82.38, up 14 basis points on the day. The gold stocks gapped up about 2 percent at the open, but couldn't hold those gains despite the fact that gold was in rally mode right up until around 2 p.m. in New York. The HUI closed up only 0.78%. Despite the stellar gains in silver on Monday and Tuesday, Nick Laird's Intraday Silver Sentiment Index closed up only 1.43%. I was underwhelmed. (Click on image to enlarge) The CME's Daily Delivery Report for Tuesday showed that 21 gold and 15 silver contracts were posted for delivery tomorrow. JPMorgan was the short/issuer on all 21 gold contracts and 3 of the silver contracts. I thank reader Jon De Weese for providing this data from his website. There were withdrawals reported in both GLD and SLV yesterday. Ted Butler and I were both surprised by this, especially Ted, and I know he'll have more to say about it in his mid-week column later today. GLD reported a withdrawal of 57,943 troy ounces, and in SLV it was an eye-watering 2,024,820 troy ounces. Yes, there were price declines in both metals late last week, but the withdrawals seem excessive, especially the 2 million ounces out of SLV. As expected, the U.S. Mint had a sales report yesterday. They sold 1,500 ounces of gold eagles; 500 one-ounce 24K gold buffaloes, and 675,000 silver eagles. And as I mentioned in Saturday's column, it's a near certainty that these sales occurred in August, and were just reported yesterday. Over at the Comex-approved depositories on Friday, they reported receiving 31,813 troy ounces of gold, and shipped 21,211 troy ounces of the stuff out the door. The link to that activity is here. In silver on Friday, there were 591,540 troy ounces received, and 13,265 ounces shipped out for parts unknown. The link to that action is here. I have a decent number of stories for you today, so I hope you find some that interest you. ¤ Critical Reads S&P calls U.S. lawsuit retaliation for stripping AAA ratingStandard & Poor's on Tuesday blasted a $5 billion fraud lawsuit by the U.S. government as retaliation for its 2011 decision to strip the country of its AAA credit rating. The McGraw Hill Financial unit was the only major credit rating agency to take away the United States' top rating and the only one sued by the Department of Justice for allegedly misleading banks and credit unions about the credibility of its ratings before the 2008 financial crisis. In a filing with the U.S. District Court in Santa Ana, Calif., S&P said the lawsuit attempts to punish it for exercising its First Amendment free speech rights under the U.S. Constitution but also seeks "excessive fines" in violation of the Eighth Amendment. Yep, the boys and girls over at S&P have that exactly right. Actually all U.S. debt should be classified as junk, just like every other nations' debt paper. This CNBC news item was posted on their website late yesterday afternoon EDT...and I thank West Virginia reader Elliot Simon for today's first story.  Swiss banks apologize for assisting tax cheatsSwitzerland's banks on Tuesday issued an unusually direct apology for their role in helping tax cheats, following a landmark settlement with U.S. authorities which could threaten the existence of some firms. The banks do not know the ultimate cost of a government settlement to a long-running U.S. drive to pierce the veil of Swiss bank secrecy. They have until the end of this year to come forward over tax evasion by their U.S. customers, under a deal struck with U.S. investigators to allow some banks to pay fines to avert prosecution. "It was not because we lacked skills and knowledge that we found ourselves in these unfortunate situations. It was because we acted wrongly and we displayed wrong conduct," Swiss bankers association chairman Patrick Odier told a news conference on Tuesday. "I regret this all the more because we have damaged the reputation of the entire Swiss financial center." This Reuters piece, filed from Zurich, was posted on their website early yesterday morning EDT, and my thanks go out to Manitoba reader Ulrike Marx for her first offering in today's column.  NSA admits analysts spied on their lovers using eavesdropping technologyStaff working at the US National Security Agency, the intelligence body revealed by whistle blower Edward Snowden to have spied on millions of people, used surveillance technology to keep tabs on their spouses, the agency said. It said on Friday that a number of its analysts "knowingly and deliberately" exceeded its surveillance authority on occasion over the past ten years and that those involved were disciplined. "Very rare instances of willful violations of the NSA's authorities have been found," the agency said in a statement. The Daily Telegraph reports that employees even had a code name for the practice of gathering intelligence on their partners - "Love-int". This story was posted on the independent.co.uk Internet site back on August 24...and it's Roy Stephens first offering of the day.  Brazil Angered Over Report N.S.A. Spied on PresidentBrazil's government summoned the United States ambassador on Monday to respond to new revelations of American surveillance of President Dilma Rousseff and her top aides, complicating relations between the countries ahead of Ms. Rousseff’s state visit to Washington next month. While senior Brazilian officials expressed indignation over the revelations of spying by the NSA on both Ms. Rousseff and Enrique Peña Nieto, now the president of Mexico — reported Sunday on the Globo television network — they stopped short of saying whether Ms. Rousseff’s visit was at risk of being called off. “This would be an unacceptable violation to our sovereignty, involving our head of state,” José Eduardo Cardozo, Brazil’s justice minister, said in an interview. Mr. Cardozo said that Brazil had requested an explanation from Washington regarding the revelations, emphasizing that he had already proposed in meetings with American officials a legal accord regulating United States intelligence activities in Brazil. This article appeared on The New York Times website on Monday...and it's the second story in a row from Roy Stephens.  Europe fears 'uncontrolled protectionism' as emerging markets turn against free tradeThe EU trade’s body said 154 new tariffs and restrictive measures have been pushed through over the past year while “virtually none” has been abolished. This violates a promise by the G20 bloc of leading powers to dismantle barriers before they become embedded in the global system. “It is a striking phenomenon. Looming protectionism is now more than ever a significant threat to global growth,” said trade EU commissioner Karel de Gucht. “It is high time for the G20 pledge be adhered to in full,” he added, exhorting the G20 to act at the St Petersburg summit this week, an event certain to be dominated by Syria. Protectionism is the dog that did not bark during the global crisis of 2008-2009, but trade abuses have been building up ever since. They have spread rapidly over the past year as the credit cycle turns in Asia and Latin America, and once-booming economies exhaust the low-hanging fruit of catch-up growth. The worry is that emerging markets - now half global output - are turning their backs on free trade as political pressure mounts. This commentary by Ambrose Evans-Pritchard was posted on the telegraph.co.uk Internet site early on Monday evening BST...and it definitely worth your time. I thank reader Bob Visser for sending it our way.  Austerity Measures: Greek Reform Minister Tackles Administrative WasteKyriakos Mitsotakis has only been minister for administrative reform for a few weeks. But he is already under heavy pressure from the troika to reduce Greek spending. To show he means business, the ambitious son of an old political family will soon cut thousands of jobs. The creditors want to see numbers from Mitsotakis. They want the country, with a population of 11 million, to substantially reduce the size of its civil service from the current level of 769,000 public servants and other employees. This isn't a new request, but what is new is that the troika is no longer willing to grant Athens a respite. Although close to a million Greeks have lost their jobs since 2009, that number hasn't included a significant number of civil servants. His predecessors were playing for time, says Mitsotakis. One of those predecessors, Dimitris Reppas, was once caught whispering to a fellow minister on a stage: "When the troika is here, always say yes, yes. They'll leave again." Reppas didn't know that his microphone was still on. This article was posted on the German website spiegel.de yesterday afternoon Europe time...and I thank Roy Stephens once again. The headline has been changed to read "Scion of Austerity: A Tall Order for New Greek Reform Minister".  Armenia to join Russia trade bloc, surprises E.U.Armenian President Serzh Sargsyan has said he wants to join a trade and political union with Russia instead of an EU alternative. The decision was announced in a statement on the Kremlin's website during his visit to Moscow to meet Russian leader Vladimir Putin on Tuesday (3 September). The Kremlin communique said: "The presidents reaffirmed the focus of the Russian federation and the Republic of Armenia on the further development of economic integration in the Eurasian territory … In this context, Mr Sargsyan said Armenia had decided to join the Customs Union and take the necessary practical steps to subsequently participate in the formation of the Eurasian Economic Union." This news item was posted on the euobserver.com Internet site early yesterday evening Europe time...and it's another contribution from Roy Stephens.  India Scrambles For 'Plan D' As Stocks, Currency Resume CollapseAfter a modestly weak start, India's FX and stock markets accelerated lower overnight in the currency's second biggest daily collapse in 17 years, and stocks second biggest daily plunge in 2 years. Rubbing further salt into an already gaping wound of capital outflows, S&P re-iterated its downgrade threat overnight following India dismal PMI print and this appears to have pushed the Indian government to Plan D. Following the failure to halt outflows of Plan A (status quo and blame it on the Fed/Speculators), Plan B (well something is up so 'capital controls' on FX and tariffs on gold), Plan C (that's not working so let's confiscate people's gold), the Indian government is trial-ballooning Plan D - ditch the USD for trade-payments (especially oil which is up 50% in INR terms in 4 months). Just when you thought it was safe to dip your fast-money toe back into Emerging markets... Last night's INR collapse was dramatic to say the least as was the stock market's 3.8% collapse... This very worthwhile read, with some excellent charts, was posted on the Zero Hedge website yesterday morning EDT...and I thank Ulrike Marx for sending it. Russia Rejects U.S. Evidence on Syrian Chemical AttackRussia’s foreign minister dismissed as unconvincing the evidence presented by Secretary of State John Kerry of chemical weapons use by the Syrian government, saying on Monday that the United States had fallen far short of making a case for international cooperation on military strikes against the government of President Bashar al-Assad. “We were shown certain pieces of evidence that did not contain anything concrete, neither geographical locations, nor names, nor evidence that samples had been taken by professionals,” Foreign Minister Sergey V. Lavrov said in a speech at the Moscow State Institute of International Relations. Mr. Lavrov’s remarks signaled that Russia would continue to block the United Nations Security Council from authorizing military intervention against the Syrian government, even if the United States Congress grants President Obama the backing he has requested for an attack. This article appeared on The New York Times website on Monday...and I thank Roy Stephens for his final contribution to today's column.  Vladimir Putin's Message To ObamaThis 4:53 minute Russia Today commentary by Vladimir Putin was posted on the youtube.com Internet site on Sunday...and as one comments below the video clips states..."You know America is screwed when the Russians are starting to sound like the voice of reason." It's definitely worth watching...and I thank reader M.A. for bringing it to our attention.  Kerry's cosy dinner with Syria's 'Hitler'Secretary of State and the man he likened to German dictator are pictured dining with their wives at Damascus restaurant before civil war broke out. An astonishing photograph of John Kerry having a cozy and intimate dinner with Bashar al-Assad has emerged at the moment the U.S Secretary of State is making the case to bomb the Syrian dictator's country and remove him from power. Kerry, who compared Assad to Adolf Hitler and Saddam Hussein yesterday, is pictured around a small table with his wife Teresa Heinz and the Assads in 2009. Assad and Kerry, then a Massachusetts senator, lean in towards each other and appear deep in conversation as their spouses look on. This longish article, with lots of embedded photos and video clips, was posted on the dailymail.co.uk Internet site on Monday...and is worth skimming. It's a story I found in yesterday's edition of the King Report.  Pepe Escobar: U.S....The indispensable (bombing) nation Yes We Scan. Yes We Drone. And Yes We Bomb. The White House's propaganda blitzkrieg to sell the Tomahawking of Syria to the US Congress is already reaching pre-bombing maximum spin - gleefully reproduced by US corporate media. India Scrambles For 'Plan D' As Stocks, Currency Resume Collapse Posted: 04 Sep 2013 02:23 AM PDT After a modestly weak start, India's FX and stock markets accelerated lower overnight in the currency's second biggest daily collapse in 17 years, and stocks second biggest daily plunge in 2 years. Rubbing further salt into an already gaping wound of capital outflows, S&P re-iterated its downgrade threat overnight following India dismal PMI print and this appears to have pushed the Indian government to Plan D. Following the failure to halt outflows of Plan A (status quo and blame it on the Fed/Speculators), Plan B (well something is up so 'capital controls' on FX and tariffs on gold), Plan C (that's not working so let's confiscate people's gold), the Indian government is trial-ballooning Plan D - ditch the USD for trade-payments (especially oil which is up 50% in INR terms in 4 months). Just when you thought it was safe to dip your fast-money toe back into Emerging markets... Last night's INR collapse was dramatic to say the least as was the stock market's 3.8% collapse... This very worthwhile read, with some excellent charts, was posted on the Zero Hedge website yesterday morning EDT...and I thank Ulrike Marx for sending it. | |
| Eight King World News Blogs/Audio Interviews Posted: 04 Sep 2013 02:23 AM PDT  Eight King World News Blogs/Audio Interviews 1. Michael Pento: "We Are Now Going to See Chaos and Panic in Global Markets". 2. King World News Commentary: "Enormous Volatility in Key Global Markets to Continue". 3. Robert Fitzwilson: "Investors Must Stay Focused During the Coming Chaos". 4. William Kaye [#1]: "Incredibly Dramatic Developments Happening in Gold and Silver". 5. Art Cashin: "This is Why the Price of Gold and Silver Exploded Higher Today". 6. William Kaye [#2]: "Coming Collapse to Usher in a Sinister "New World Order". 7. The first audio interview is with Art Cashin...and the second audio interview is with Dr. Paul Craig Roberts. | |
| Florida family uncovers $300K in Spanish gold Posted: 04 Sep 2013 02:23 AM PDT  Florida family uncovers $300K in Spanish gold A 65-year-old Florida man has spent his life searching for treasure off the coast—and Rick Schmitt and his family have just made their biggest-ever discovery. Some 150 yards off the coast of Fort Pierce, and about 15 feet underwater, the Schmitt family found 64 feet of gold chain, five gold coins, and a gold ring; the haul has been valued at an estimated $300,000, the Orlando Sentinel reports. The gold is about 300 years old, leftover from 11 Spanish ships that went down in a hurricane in 1715, earning the area the nickname "Treasure Coast." This very interesting story was posted on the usatoday.com Internet site yesterday morning...and the first person through the door with it was Washington state reader S.A. Nice photo as well. The 'click to enlarge' feature is helpful here. | |
| Jim Rogers expects higher gold, and Marc Faber does too! Posted: 04 Sep 2013 02:23 AM PDT  Jim Rogers expects higher gold, and Marc Faber does too! In a video interview with Reuters’ Tara Joseph posted Wednesday about the effect of rising tensions between the U.S. and Syria, Rogers, investor and chief executive officer of Rogers Holdings said: “I own oil, I own gold, I own things like that if there is going to be a war … they’re [going to] go much, much higher.” “Stocks are [going to] go down … commodities are [going to] go up,” he said. Marc Faber, also known as “Doctor Doom,” told HardAssetsInvestor in an interview published Wednesday that “looking at how debt will continue to increase and how central banks will continue their monetization not only in the U.S. but on a worldwide scale, I assume the price of gold will trend higher.” He said “most likely we’ve seen the lows below $1,200” and gold will eventually be over $1,921.” That’s an intraday spot gold price level last seen back in September 2011. This news item was posted on the marketwatch.com Internet site last Thursday...and my thanks go out to reader Ken Hurt for bringing it to our attention. | |
| Gold and silver: still in a bear market or in major recovery mode? Posted: 04 Sep 2013 02:23 AM PDT  Gold and silver: still in a bear market or in major recovery mode? A series of charts from Ronald Stoeferle at Incrementum AG, and technical analysis from Peter Ullrich both suggest that gold and silver have gone through a bullish correction and are poised for better things ahead. Gold opened lower in Europe today staying below yesterday’s fall back below $1400 as markets nervously awaited the U.S. opening to see what kind of a lead comes out of that now most bankers, fund managers and traders are back at their desks after Labor Day – the USA’s ‘official’ end of summer. But overall gold and gold stock investors really want to know whether the recent 2 year gold bear market has indeed ended and whether the fall back from its spot high of $1923.70 of almost exactly 2 years ago to its lowest point to date of $1179.40 back in June – a massive 39% fall of $744 - represents the nadir of the bear attack on gold and that overall, bar a few minor ups and downs, the general direction of the market is now upwards. In this respect, the publication of a portfolio of gold, debt and other financial charts by Liechtenstein-based asset and wealth management advisory – Incrementum AG – does definitely suggest that what has happened to gold, and to silver, is more of a correction than a foretaste of more to come. This commentary by Lawrie Williams was posted on the mineweb.com Internet site yesterday...and includes some excellent charts that are well worth your time. I thank Ulrike Marx for sending it along. |
Analysts at Mackie Research Capital crunched the data to stress test which junior miners would thrive, survive or die at $1,000/oz gold and $18/oz silver. In this interview with 
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