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• sept 6/GLD and SLV constant/Comex dealer gold falls below 700K to 686,434 oz/Gold and silver rise on poor jobs report
• By the Numbers for the Week Ending September 6
• Balmoral Outlines Large, New I.P. Anomaly at Martiniere, Quebec
• Central Bankers Differ On How Quick To Pull Printing Plug
• Who Is Going To Buy Our Debt If This War Causes China, Russia And The Rest Of The World To Turn On Us?
• Jim Sinclair’s Get Out of the System Checklist
• Silver Prices – How High Could They Go?
• You can now buy one of the greatest assets in the world at a 47% discount
• Porter Stansberry: The most valuable advice I've ever shared
• Poland Nationalizes Retirement Accounts!
• Mystery Theater: GOFAUX artifacts and Germanic bankster tragedy
• South Africa, Plagued With Strikes, Finds Relief From Gold Miners
• Gold and Silver Disaggregated COT Report (DCOT) for September 6
• Revett Minerals - Good News Indicating A Great Opportunity
• Gold Marks 2 Years from Top with $30 Jump on Weak US Data

sept 6/GLD and SLV constant/Comex dealer gold falls below 700K to 686,434 oz/Gold and silver rise on poor jobs report Posted: 06 Sep 2013 08:03 PM PDT

By the Numbers for the Week Ending September 6 Posted: 06 Sep 2013 07:53 PM PDT This week's closing table is just below.   Vultures, (Got Gold Report Subscribers) please note that updates to our linked technical charts, including our comments about the COT reports and the week's technical changes, should be completed by the usual time on Sunday (by 18:00 ET), Monday at the latest.

Balmoral Outlines Large, New I.P. Anomaly at Martiniere, Quebec Posted: 06 Sep 2013 07:08 PM PDT VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 5, 2013) - Balmoral Resources Ltd. (“Balmoral” or the “Company”) (TSX:BAR)(OTCQX:BALMF) today reported that it has outlined a large, ovoid shaped, chargeability anomaly extending for over 1,800 metres in a NW-SE direction on its wholly owned Martiniere Property in Quebec (See Figure 1 below or visit www.balmoralresources.com). Known gold mineralized zones on the property, including the Bug Lake Gold Zones and the numerous high-grade intercepts in the Martiniere East area, are associated with, or flank, this large anomaly. The majority of the newly defined anomaly remains to be drill tested, suggesting potential for a significant expansion of the mineralized system in the Martiniere East/Bug Lake area. Chargeability anomalies such as the one discussed above are typically associated with either disseminated or semi-massive sulphide mineralization. Throughout the Martiniere Property there is a strong correlation between gold mineralization and sulphide minerals. In addition to the large anomaly in the Martiniere East area a new anomaly was identified in the NW corner of the survey area. This opened-ended anomaly is located along the flanks of a prominent magnetic high and sits immediately south of a series of airborne geophysical conductors which will also be examined by the current geophysical program. A second large geophysical grid, covering the Martiniere West Gold Zone and West Zone Extensions identified by the winter 2013 drill program, is currently being surveyed. Additional surveying is also planned to test a portion of the Sunday Lake Deformation Zone, which hosts the Detour Gold deposit 45 kilometres to the east. The Martiniere Property forms part of the Company’s wholly owned 600+ square kilometre Detour Gold Trend Project in Quebec. Revisions to the current drill plan are currently underway to incorporate testing of the Martiniere East anomaly and potential extensions of the Bug Lake and related gold zones identified by the survey. Doigt Property Balmoral also announced that it has identified a large geophysical anomaly on its wholly owned Doigt property which is located approximately 7 kilometres to the northwest of the Bug Lake area. On the Doigt Property, the Company has outlined a 600 metre long, open-ended chargeability anomaly, associated with a distinct resistivity high, which flanks a gabbro body identified in the area by mapping. A small, isolated EM conductor also correlates with the chargeability anomaly. There is no known historic drilling on the Doigt Property. This association of a gabbro body with distinct EM and I.P. anomalies flanking it, in less magnetic rocks, is nearly identical to the signature of the known gold mineralized zones at Martiniere West and the Company’s Fenelon Property to the east. Both gold systems, and the Detour Gold deposit to the west, were discovered by testing isolated EM anomalies associated with the transition from strong to weak magnetic rocks making the Doigt target a high-priority for drill testing. Grasset Property Located 40 kilometres east of Martiniere, the Grasset Property stretches for 20 kilometres along the Sunday Lake Deformation Zone and has seen very limited historic exploration. Grasset hosts recent gold and base metal discoveries and geophysical work is now underway on the property to refine drill targeting for follow-up of both the Grasset gold and nickel-PGE discoveries, and to examine other select areas on the property. Follow-up testing of these anomalies will be scheduled once the geophysical results have been received and evaluated. Drilling Update – Martiniere Property Diamond drilling continues on the Martiniere Property with approximately 5,000 metres of a planned 10,000 metres completed to-date in 18 holes. Initial drill results remain pending and will be released as they become available. As noted above the summer/fall drill program will be modified to incorporate testing of the recently defined geophysical anomalies. The fully funded 2013 summer/fall exploration program on the Detour Gold Trend Project remains on budget. Quality Control Mr. Darin Wagner (P.Geo.), is the non-independent qualified person for the technical disclosure contained in this news release. Mr. Wagner is the President and CEO of the Company. He has supervised the exploration activities described here in, reviewed and helped to evaluate the data, examined the diamond drill core from the holes discussed and visited the project site on multiple occasions. About Balmoral Resources Ltd. - www.balmoralresources.com Balmoral is a Canadian-based precious metal exploration and development company focused on high-grade gold discoveries along the Detour Gold Trend in Quebec, Canada. With a philosophy of creating value through the drill bit and with a focus on proven productive precious metal belts, Balmoral is following an established formula with a goal of maximizing shareholder value through discovery and definition of high-grade, Canadian gold assets. On behalf of the board of directors of Balmoral Resources Ltd. Darin Wagner, President and CEO This press release contains forward-looking statements and forward-looking information (collectively, “forward looking statements”) within the meaning of applicable Canadian and United States securities laws. All statements, other than statements of historical fact, included herein, including statements regarding the anticipated content, commencement, duration and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the timing of the receipt of assay results, and business and financing plans and trends, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company’s expectations include those related to weather, equipment and staff availability; performance of third parties; risks related to the exploration stage of the Company’s projects; market fluctuations in prices for securities of exploration stage companies and in commodity prices; and uncertainties about the availability of additional financing; risks related to the Company’s ability to identify one or more economic deposits on the properties, and variations in the nature, quality and quantity of any mineral deposits that may be located on the properties; risks related to the Company’s ability to obtain any necessary permits, consents or authorizations required for its activities on the properties; and risks related to the Company’s ability to produce minerals from the properties successfully or profitably. Trading in the securities of the Company should be considered highly speculative. All of the Company’s public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the latest technical reports filed with respect to the Company’s mineral properties. This news release contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties, and any production therefrom or economics with respect thereto, are not indicative of mineral deposits on the Company’s properties or the potential production from, or cost or economics of, any future mining of any of the Company’s mineral properties. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States. To view “Figure 1: Plan view 100m depth slice of inverted induced polarization chargeability results. Units are mv/V, gold histograms shown on drill hole traces“, please visit the following link: http://media3.marketwire.com/docs/BAR-0905-fig1.pdf.   Balmoral Resources Ltd. John Toporowski Manager, Corporate Development (604) 638-5815 / Toll Free: (877) 838-3664 (604) 648-8809 (FAX) jtoporowski@balmoralresources.com www.balmoralresources.com

Central Bankers Differ On How Quick To Pull Printing Plug Posted: 06 Sep 2013 06:37 PM PDT Reports from the 2013 Economic Policy Symposium, held annually in Jackson Hole, Wyoming, revealed conflicting opinions among central bankers on whether to end stimulus activities now or keep the measures in place. The comments revealed a somewhat surprising divergence among international institutions that have pretty much marched in lock-step since the dollar-dominant Bretton Woods monetary system was established at the end of World War II. Christine Lagarde, managing director of the International Monetary Fund (IMF)  since 2011, told the group of central bankers that, "[t]he day will come when this period of exceptionally loose monetary policy…must end. We need to plan for that day, especially since we do not know exactly when it comes." But she warned bankers not to end stimulus efforts too soon: "Let me say it up front: I do not suggest a rush to exit. Unconventional monetary policy is still needed in all places it is being used, albeit longer for some than for others." Description:  Central Bankers' Differ on Loose Monetary Programs, as Revealed in IMF Christine Lagarde's Jackson Hole Remarks read more

Who Is Going To Buy Our Debt If This War Causes China, Russia And The Rest Of The World To Turn On Us? Posted: 06 Sep 2013 05:48 PM PDT Can the U.S. really afford to greatly anger the rest of the world when they are the ones that are paying our bills?  What is going to happen if China, Russia and many other large nations stop buying our debt and start rapidly dumping U.S. debt that they already own?  If the United States is not very careful, it is going to pay a tremendous economic price for taking military action in Syria.  At this point, survey after survey has shown that the American people are overwhelmingly against an attack on Syria, people around the globe are overwhelmingly against an attack on Syria, and it looks like the U.S. Congress is even going to reject it.  But Barack Obama is not backing down.  In fact, ABC News is reporting that plans are now being made for a "significantly larger" strike on Syria than most experts had expected. If Obama insists on going forward with this, it will be the greatest foreign policy disaster in modern American history. Right now, both Russia and China are strongly warning Obama not to attack Syria.  And Russia is not just warning Obama with words.  According to Bloomberg, Russia has sent quite a collection of warships into the region... Russia is sending three more ships to the eastern Mediterranean to bolster its fleet there as a U.S. Senate panel will consider President Barack Obama's request for authority to conduct a military strike on Syria. Russia is sending two destroyers, including the Nastoichivy, the flagship of the Baltic Fleet, and the Moskva missile cruiser to the region, Interfax reported today, citing an unidentified Navy official. That follows last week's dispatch of a reconnaissance ship to the eastern Mediterranean, four days after the deployment of an anti-submarine ship and a missile cruiser to the area, which were reported by Interfax. Syria hosts Russia's only military facility outside the former Soviet Union, at the port of Tartus. China is also letting it be known that they absolutely do not want Obama to hit Syria.  On Friday, China issued a warning about what military conflict in the Middle East could do to "the global economy"... "Military action would have a negative impact on the global economy, especially on the oil price – it will cause a hike in the oil price." And according to Debka, China has also deployed "a number of warships" to the region... Western naval sources reported Friday that a Chinese landing craft, the Jinggangshan, with a 1,000-strong marine battalion had reached the Red Sea en route for the Mediterranean off Syria.  According to DEBKAfile, Beijing has already deployed a number of warships opposite Syria in secret. If the latest report is confirmed, this will be the largest Chinese deployment in the Middle East in its naval history. If the U.S. attacks Syria, Russia and China probably will not take immediate military action against us. But they could choose to hit us where it really hurts. According to the U.S. Treasury, foreigners now hold approximately 5.6 trillion dollars of our debt.  Over the past couple of decades, the proportion of our debt owned by foreigners has grown tremendously, and today we very heavily depend on nations such as China to buy our debt. At this point, China owns approximately 1.275 trillion dollars of our debt, and Russia owns approximately 138 billion dollars of our debt. So what would happen if China, Russia and other foreign buyers of our debt all of a sudden quit purchasing our debt and instead started dumping the debt that they already own back on to the market? In a word, it would be disastrous. As I have written about previously, the U.S. government will borrow about 4 trillion dollars this year. Close to a trillion of that is new borrowing, and about three trillion of that is rolling over existing debt. If China and other big foreign lenders quit buying our debt and started dumping what they already hold, that would send yields on U.S. Treasuries absolutely soaring. And we have already seen bond yields rise dramatically in recent weeks.  In fact, on Thursday the yield on 10 year U.S. Treasuries briefly broke the 3 percent barrier. So what is going to happen if the yield on 10 year U.S. Treasuries continues to go up?  The following are a few consequences of rising bond yields that I have discussed in previous articles... -It will cost the federal government more to borrow money. -It will cost state and local governments more to borrow money. -As bond yields go up, bond values go down.  In the end, rising bond yields could end up costing bond investors trillions of dollars. -Rising bond yields will cause mortgage rates to skyrocket.  In fact, we are already starting to see this happen.  This week the average rate on a 30 year mortgage hit 4.57 percent. -Higher interest rates will mean a slowdown in economic activity at a time when we definitely cannot afford it. -As economic activity slows down, that will be very bad for stocks.  When the next great stock market crash happens (and it is coming), equity investors could end up losing trillions of dollars of wealth. -Of course the biggest threat of all is the 441 trillion dollar interest rate derivatives time bomb that is sitting out there.  Rapidly rising interest rates could potentially bring down several of our "too big to fail" banks in rapid succession and throw us into the greatest financial crisis the nation has ever seen. Are you starting to get the picture? And the 3 percent mark is just the beginning.  Brent Schutte, a market strategist for BMO Private Bank, told CNBC that he expects the yield on 10 year U.S. Treasuries to eventually go up to 6 or 7 percent... "4 percent (on 10-year Treasurys) somewhere around the end of the year to early next year would be a good intermediate-term level. And if you look over the longer term, I don't think that 6 or 7 percent is out of the question." If that happens, we will experience a full blown financial meltdown. Of course it would greatly help if Obama would back down and not attack Syria.  As Vladimir Putin noted at the G20 summit, large nations such as India, Brazil, South Africa and Indonesia are all strongly against the U.S. taking military action... In reply to the question what other country in the world may theoretically be subjected to aggression similar to that Syria is facing, Putin said, "I do not want to think that any other country will be subjected to any external aggression." A military action against Syria will have a highly deplorable impact on international security at large, Putin emphasized. He said he was surprised to see that ever more participants in the summit, including the leader of India, Brazil, the South African Republic, and Indonesia were speaking vehemently against a possible military operation in Syria. Putin cited the words of the South African President, Jacob Zuma, who said many countries were feeling unprotected against such actions undertaken by stronger countries. "Given the conditions as they, how would you convince the North Koreans, for example, to give up their nuclear program," he said. "Just tell them to put everything into storage today and they'll be pulled to bits tomorrow." He underlined the presence of only one method for maintaining stability - "an unconditional observance of international law norms." Can we really afford to have most of the international community turn on us and quit buying our debt? Of course not. Sadly, as I noted the other day, Obama appears to be locked into doing the bidding of Arab countries such as Saudi Arabia and Qatar. In fact, as the Washington Post reported the other day, Secretary of State John Kerry has even admitted that they are even willing to pay all of the costs of a U.S. military campaign that would overthrow Assad... Secretary of State John Kerry said at Wednesday's hearing that Arab counties have offered to pay for the entirety of unseating President Bashar al-Assad if the United States took the lead militarily. "With respect to Arab countries offering to bear costs and to assess, the answer is profoundly yes," Kerry said. "They have. That offer is on the table." Asked by Rep. Ileana Ros-Lehtinen (R-Fla.) about how much those countries would contribute, Kerry said they have offered to pay for all of a full invasion. "In fact, some of them have said that if the United States is prepared to go do the whole thing the way we've done it previously in other places, they'll carry that cost," Kerry said. "That's how dedicated they are at this. That's not in the cards, and nobody's talking about it, but they're talking in serious ways about getting this done." Why aren't we hearing more about this in the news? Fortunately, despite the relentless propaganda coming from the mainstream media, a lot of members of Congress are choosing to take a stand against this war.  For example, U.S. Representative Tom Marino recently shared the following about why he is voting against military action in Syria... Secretary Hagel could not tell lawmakers who the U.S. could trust among the Syrian opposition, stating "that's not my business to trust."  Like many Americans, I believe it is our duty as decision makers to be informed and confident when making choices – especially in those choices that could result in sending U.S. troops or money abroad.  It is no wonder Secretary Hagel isn't in the business to trust when more players are added daily to the growing list of 'Syrian opposition'—many of them jihadist, terrorists, known Al Qaeda affiliates, members of the Muslim Brotherhood and enemies of the U.S. and our allies.  To simplify, the Secretary of Defense was unable to tell us, after nearly three years of the Syrian Civil War, who the good guys are or if there are any at all. And Marino is very right.  There are no "good guys" in Syria.  The "rebels" are murderous jihadist psychotics that would be even worse than Assad if they took power. For much more on what the mainstream media is not telling you about the war in Syria, check out a stunning video report from investigative reporter Ben Swann that you can find right here. The picture above comes from the official Facebook page of one of the "rebel groups" in Syria. I am sure that you do not need me to point out that the White House is burning in the background of the picture. These are the people that Obama wants to help? According to NBC News, the rebels are also displaying images of the black flag of al-Qaeda on Facebook too... The image is one of eight photos posted on the official Facebook page of the "Al-Aqsa Islamic Brigades,"  a small armed Sunni rebel faction fighting with the Free Syrian Army, the main umbrella military organization of the opposition forces. Two other photos posted on the group's page feature the widely recognized black flag of the al Qaeda in Iraq terrorist group, which operates freely in Syria. Let's assume for a moment that Obama is successful in Syria and that Assad is overthrown. That would hand Syria over to al-Qaeda. Once in power, the "rebels" would slaughter or force the conversion of millions of Christians, Jews and non-Sunni Muslims that have been living peacefully in Syria for centuries. To those that would support this war, I would ask you this question... Is that what you want? Do you want the blood of millions of Christians, Jews and non-Sunni Muslims on your hands? If you are a Christian that is supporting Obama on this, I would ask you to consider an excerpt from a letter from Christian nuns in Azeir, Syria that I have posted below... We look at the people around us, our day workers who are all here as if suspended, stunned: "They've decided to attack us." Today we went to Tartous…we felt the anger, the helplessness, the inability to formulate a sense to all this: the people trying their best to work and to live normally. You see the farmers watering their land, parents buying notebooks for the schools that are about to begin, unknowing children asking for a toy or an ice cream…you see the poor, so many of them, trying to scrape together a few coins. The streets are full of the "inner" refugees of Syria, who have come from all over to the only area left that is still relatively liveable…. You see the beauty of these hills, the smile on people's faces, the good-natured gaze of a boy who is about to join the army and gives us the two or three peanuts he has in his pocket as a token of "togetherness"…. And then you remember that they have decided to bomb us tomorrow. … Just like that. Because "it's time to do something," as it is worded in the statements of the important men, who will be sipping their tea tomorrow as they watch TV to see how effective their humanitarian intervention will be…. You can read the rest of that letter right here. Also consider the following shocking video of Senator John McCain being confronted by a very emotional woman that says that her 18-year-old cousin in Syria was just killed by rebels loyal to al-Qaeda... Any American that supports this war is aiding al-Qaeda. Any American that supports this war is choosing to ally themselves with radical jihadist Christian killers that want to conquer the entire Middle East in the name of Sunni Islam. If Congress votes to approve this war, then we should do what one site has suggested and send those that vote yes to Syria. They don't even have to fight.  We'll just drop them off in the middle of the "rebel forces" and entrust them into the gentle hands of the al-Nusra Front. But of course they would never go.  The ones that will be endangered will be the precious sons and daughters of other Americans. This is not a war that has a good outcome for America.  Conservative voices and liberal voices all over the country are joining together to speak out against this war. Hopefully Barack Obama will listen and cooler heads will prevail.  If not, things could spin wildly out of control very rapidly.

Jim Sinclair’s Get Out of the System Checklist Posted: 06 Sep 2013 03:30 PM PDT For those who are unable to read the writing on the wall (on the heels of Poland nationalizing retirement accounts), Jim Sinclair has prepared a MUST READ GOTS (Get Out of the System!) checklist. Are you fully out of the system and ready for a bail-in collapse of the Western banking system? 2013 Gold Buffalo [...] The post Jim Sinclair’s Get Out of the System Checklist appeared first on Silver Doctors. Check out these similar articles: Jim Sinclair: Gov’t to Raid Retirement Accounts to Fund Shortfall of Treasury Purchases Jim Sinclair: Stay the Course, Manipulation Will Fail Treasury Skips Mandatory Quarterly Federal Employee Retirement Fund Payments

Silver Prices – How High Could They Go? Posted: 06 Sep 2013 02:30 PM PDT One of the most often asked questions by those interested in investing in silver pertains to not only how low, but how high silver's price can go? Silver investors have all heard quadrillions associated with derivatives for a few years now. The BIS changed their calculation in 2009, making the amount of outstanding OTC derivatives [...] The post Silver Prices – How High Could They Go? appeared first on Silver Doctors. Check out these similar articles: China plans to double gold consumption in three years, how high will gold prices go now? JS Kim: “I Guarantee Gold & Silver Prices Will Rise in Next 12 Months!” Silver/ Gold Ratio Hits 60 Day High of 54.55 to 1

You can now buy one of the greatest assets in the world at a 47% discount Posted: 06 Sep 2013 02:05 PM PDT From Porter Stansberry and Brett Aiken in Growth Stock Wire:   Right now, you can own one of the greatest assets in the world – a real trophy asset – at a huge discount...   Regular readers will recognize the term "trophy asset" – it's how we describe the world's highest quality, most coveted hard assets. Assets like timberland, oil deposits, gold mines, and unique real estate.   We like investing in trophy assets for a couple reasons...   First, as investors, we know what we're buying. These companies have real hard assets... physical property... stuff you can touch. It's far easier to figure out the real value of a huge gold mine or a five-star hotel on the Las Vegas Strip than it is to guess the future market value of, say, a tech startup devising some new Internet service.   Plus... companies that own one-of-a-kind, world-class assets almost never face liquidity problems because they can always get financing.   Buying these trophy assets when you can get them at dirt-cheap prices is a core strategy for building wealth over the long term. And right now, perhaps the single greatest trophy asset on the planet is selling at a 40%-plus discount to its value...   Read full article...   More on commodities:   An astonishing statistic every worried silver investor should see   Top technical analyst: Commodity prices are about to "explode"   A detailed look at one of the most important numbers for gold stocks now

Porter Stansberry: The most valuable advice I've ever shared Posted: 06 Sep 2013 02:05 PM PDT From The S&A Digest:   In today's Friday Digest, we will break confidences in a way… I (Porter) will tell you about a private discussion I had with a very wealthy man, who… perhaps like you… has long struggled with his personal portfolio. He now faces even tougher decisions about how to allocate capital for his business.   Out of all of the things we've talked about over the years in the Friday Digest, I think you'll find this discussion might hold the greatest value… if, that is… you're willing to think carefully about this private discussion. The message at the heart of today's Digest addresses the very foundation of successful investing…   Now… a warning. And not our usual one, either. As you know, we firmly disclaim the ability to teach anyone, anything. Or as we write so frequently, there is no such thing as teaching, there is only learning.   And with today's message… I have found that to be doubly true.   In my experience the ability to comprehend and internalize the ideas below will be limited to people who have owned or operated their own business. Very few others have grasped their significance. I hope you will be among the few who do.   Nevertheless… I believe that understanding from the beginning that the strategy we're discussing below is most suitable for business owners may, in fact, be the key to understanding it for everyone.   The story starts this way…   Several years ago, a close friend, who is the CEO of a major global business, asked me to help him with his personal portfolio. Normally, I'd never even agree to a meeting where I thought the subject would come up. Most people assume, wrongly, that I know something more about securities or investment opportunities that I don't include in my newsletter. But I don't. I write up all of the best ideas I discover.   And that is exactly what I told my friend. Besides, I knew he really didn't need my newsletter. "There's no secret to investment success," I told him. "As the leader of a big, global business, you've done dozens of very successful acquisitions. You know exactly what creates business success. And you know the appropriate price to pay for private companies. Just apply the exact same care to your personal investment decisions."   I saw my friend yesterday for the first time in a great while. We were talking about investments again. But this time, we were talking about how he manages his company's tremendous cash flows. He explained that he'd hired a "professional" money-management group.   I asked the logical question: "How's that working for you?" But I knew the answer before I asked – terribly. He tried to justify the poor results by explaining, "It's not really their fault. I told them to manage the assets for maximum preservation of capital. I think they could have done better if I was willing to take more risk…"   My friend is making two significant errors. First, he believes that investment professionals – who do not have day-to-day responsibility for operating a business – will prove to have better business judgment than the long-term CEO, who has successfully managed dozens of acquisitions and grown his business from $75 million in market cap to more than $1 billion.   My friend has world-class business judgment. He developed it by making decisions every day about marketing, product development, personnel, policies, branding, real estate, partnerships, lawsuits, and insurance… decisions with millions of dollars at stake. To believe that a money manager, whose chief source of business insight is probably Barron's magazine, is going to prove more successful as an investor is like believing the local putt-putt champion will beat Tiger Woods in a driving contest.   Yes, I know… a select few money managers have outstanding, world-class business judgment – like Carl Icahn, for example. But you can count these money managers on two hands. And investing with them is extremely expensive.   In other words… whether my friend likes it or not… he's likely to be far better off managing his company's excess capital personally than he is entrusting it to a "professional." The same is likely true for you, if you have any significant business experience. That experience is your greatest advantage in the markets. And yet… few business people invest in the stock market as they would in their own industry. It's easier to simply wire the money somewhere else… and make it someone else's problem.   The other mistake my friend is making is even more surprising to me… because I know he knows better. You'll recall when I questioned him about the investment performance of the "professional" firm, he was quick to excuse their marginal results by explaining that he'd instructed them not to take any risk. While I'm not privy to the details of his asset allocation, that normally means the capital is largely tied up in fixed income – assets that professionals deem "safe" because they typically are not very volatile.   We will return to this question of defining risk as moving prices as opposed to actual loss of capital. But for the moment, it's enough for you to know that the majority of professionals pretend that most forms of fixed income – like corporate bonds held to maturity, market accounts, and U.S. Treasury obligations – carry very little risk, primarily because their quoted prices tend to be stable compared to stock prices. They have what's called "low beta" compared with stocks.   An investor with tremendous business experience, Warren Buffett, addressed the real risk inherent in these kinds of financial instruments – risks that professional money managers tend to be oblivious to – in his 2011 annual letter.   Investments that are denominated in a given currency include money-market funds, bonds, mortgages, bank deposits, and other instruments. Most of these currency-based investments are thought of as 'safe.' In truth they are among the most dangerous of assets. Their beta [the volatility of their quoted price] may be zero, but their risk is huge. Over the past century these instruments have destroyed the purchasing power of investors in many countries…   Governments determine the ultimate value of money, and systemic forces will sometimes cause them to gravitate to policies that produce inflation. From time to time, such policies spin out of control. Even in the U.S., where the wish for a stable currency is strong, the dollar has fallen a staggering 86% in value since 1965, when I took over management of Berkshire. It takes no less than $7 today to buy what $1 did at that time.   Consequently, a tax-free institution would have needed 4.3% interest annually from bond investments over that period to simply maintain its purchasing power. Its managers would have been kidding themselves if they thought of any portion of that interest as "income."   For tax-paying investors, like you and me, the picture has been far worse. During the same 47-year period, continuous rolling of U.S. Treasury bills produced 5.7% annually. That sounds satisfactory. But if an individual investor paid personal income taxes at a rate averaging 25%, this 5.7% return would have yielded nothing in the way of real income…   'In God We Trust' may be imprinted on our currency, but the hand that activates our government's printing press has been all too human… Today, a wry comment that Wall Streeter Shelby Cullom Davis made long ago seems apt: 'Bonds promoted as offering risk-free returns are now priced to deliver return-free risk.'   In short… if you're an experienced business person, you're not likely to solve your investment challenge by going to "professional" investors because your business judgment will almost surely be more sophisticated than theirs… Nor can you "hide" your company's earnings in fixed income, where recently the average yield on higher-risk corporate debt was less than 5%. At these low rates, it is simply impossible to even pretend that after inflation, taxes, and the risk of default, investors have any chance at a real return on their capital.   What then, should the experienced business person do? Once again… we turn to Warren Buffett. In the mid-1970s, he became the business "coach" and confidant of the Washington Post's Katharine Graham.   Graham became chairman and CEO of the newspaper company unexpectedly when her husband committed suicide. She leaned heavily on Buffett's business judgment – especially when it came to the question of how to manage the business fund. Buffett addressed that critical question in a private letter to Graham.   Fortunately… I was sent a copy of that letter last week. Here's what Buffett told one of his closest friends about how to manage her company's pension account…   The directors and officers of the company consider themselves to be quite capable of making business decisions, including decisions regarding the long-term attractiveness of specific business operations purchased at specific prices. We have made decisions to purchase several television businesses, a newspaper business, etc. And in other relationships, we have made such judgments covering a much wider spectrum of business operations.   Negotiated prices for such purchases of entire businesses often are dramatically higher than stock market valuations attributable to well-managed similar operations. Longer term, rewards to owners in both cases will flow from such investments proportional to the economic results of the business. By buying small pieces of businesses through the stock market rather than entire businesses through negotiation, several disadvantages occur: a) the right to manage, or select managers, is forfeited; b) the right to determine dividend policy or direct the areas of internal reinvestment is absent; c) ability to borrow long-term against the business assets (versus against the stock position) is greatly reduced; and d) the opportunity to sell the businesses on a full-value, private-owner basis is forfeited.   [These disadvantages are offset by] the periodic tendency of stock markets to experience excesses, which cause businesses – when changing hands in small pieces through stock transactions – to sell at prices significantly above privately determined negotiated values. At such times, holdings may be liquidated at better prices than if the whole business were owned – and, due to the impersonal nature of securities markets, no moral stigma need be attached to dealing with such unwitting buyers.   Stock market prices may bounce wildly and irrationally, but if decisions regarding internal rates of return of the business are reasonably correct – and a small portion of the business is bought at a fraction of its private-owner value – a good return for the fund should be assured over the time span against which pension fund results should be measured.   [Success] in large part, is a matter of attitude, whereby the results of the business become the standard against which measurements are made rather than quarterly stock prices. It embodies a long time span for judgment confirmation, just as does an investment by a corporation in a major new division, plant, or product. It treats stock ownership as business ownership with corresponding adjustment in mental set. And it demands an excess of value of price paid, not merely a favorable short-term earnings or stock market outlook. General stock market considerations simply don't enter into the purchase decisions.   Finally, [success] rests on a belief, which both seems logical and which has been borne out historically in securities markets, that intrinsic value is the eventual prime determinant of stock prices. In the words of my former boss: 'In the short run the market is a voting machine, but in the long run it is a weighing machine.'"   This approach… to buy individual stocks in the same way you'd buy whole business operations and to ignore whatever sentiment is prevalent in the stock market… turns out to be both the most profitable way to invest (because of the focus on long-term results and appropriate purchase price) and the safest.   Use your hard-won business judgment. Don't buy a single share of stock in any company you wouldn't want to own forever. Don't judge the investment's success or failure by its share price, but instead by its business results. Don't allow popular sentiment to sway you from your course. Instead, use the wild, irrational swings in average share prices to give you both opportunities to buy at great discounts and opportunities to sell at unwarranted premiums. As Buffett himself says, thanks to the impersonal nature of the market you can take advantage of "unwitting buyers" without any stigma.   This approach, by the way, is the strategy that I have adopted for my own personal savings. My goal is to acquire a portion of one great business each year (via common stock) at an unreasonably cheap price, so that my wealth will compound at an unreasonably high rate (15%).   Given a very depressed stock market, I will try to acquire more than just one such company… but in any given year, you can always find sectors of the stock market where companies are trading well below the private-market value of the whole businesses.   This year, I have focused my personal efforts on the for-profit education sector, which has been (in my view) far oversold due to unreasonable fears about the long-term outlook.   Throughout human history, paying for an education has been a great investment. Education is the key to advancement for most people. And while I disclaim the ability for anyone to teach anything, I know very well how important institutions that promote real learning can be to advancement.   Some of those institutions are even schools… and the schools I believe have the most incentive to promote real learning are the for-profit education colleges. Therefore, I believe for-profit education is overwhelmingly likely to continue and that the well-managed companies in this space will find a business model that works, regardless of new restrictions on the government's backing of student loans.   To me, these conclusions seem obvious. To the market, my view is currently heresy. We'll see who is right over the long term. My background as a business owner gives me confidence in my judgment.   Also, because I operate in a similar business (much of what we sell is education), I can evaluate these companies' business results. I'm not left with merely share price to determine whether or not they are making progress. My income, my other assets, and my strategy of investing over time (one great business each year) gives me the fortitude to withstand the volatility in the share price. This is how business owners and managers ought to invest. This is how everyone should try to invest.   I hope my friend reads today's Digest… and thinks carefully about his reliance on "professional" investors, fixed income, broad diversification, and other "low-beta" (aka low-knowledge) approaches to investing. I know he's capable of far better and safer results. Many of you, I bet, are in the same boat.   Crux note: To receive every issue of the excellent S&A Digest - and get exclusive access to some of Porter's best advice - click here for a special offer.   More from Porter:   Porter Stansberry: How to make money in any market... at any time   Porter Stansberry: A must-read update on the most important trend in the world today   Porter Stansberry: What you need to know about Detroit and the "End of America" now

Poland Nationalizes Retirement Accounts! Posted: 06 Sep 2013 01:29 PM PDT Reuters is reporting that Poland has just nationalized their retirement system via a pension fund “overhaul”, a move Poland claims will reduct is public debt by 8 pct of GDP thanks to the theft of their citizens retirement savings. The plan calls for private pension funds to be forceably converted to a state guaranteed system, [...] The post Poland Nationalizes Retirement Accounts! appeared first on Silver Doctors. Check out these similar articles: Jim Sinclair: Gov’t to Raid Retirement Accounts to Fund Shortfall of Treasury Purchases Consumer Financial Protection Bureau Sets Sights on Retirement Accounts- Mandary Treasury Allocations Imminent? Treasury Skips Mandatory Quarterly Federal Employee Retirement Fund Payments

Mystery Theater: GOFAUX artifacts and Germanic bankster tragedy Posted: 06 Sep 2013 01:09 PM PDT As you may have noticed, there has been a bit of discussion lately about the GOFO – the Gold Forward Offered Rate, published by the LBMA and generated by the member banks. According to the LBMA, it "represent the rates at which dealers will lend gold on a swap basis against US dollars". In more detail from the official LBMA FAQ (emphasis mine): read more

South Africa, Plagued With Strikes, Finds Relief From Gold Miners Posted: 06 Sep 2013 01:02 PM PDT By Richard Rittorno South Africa (EZA) has been suffering through a plague of strikes from municipal power workers in Johannesburg, causing power outages to auto workers and, most recently this past Tuesday, gold miners. Union workers in the gold mining industry went on strike

Gold and Silver Disaggregated COT Report (DCOT) for September 6 Posted: 06 Sep 2013 12:44 PM PDT HOUSTON -- This week's Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report was released at 15:30 ET Friday. Our recap of the changes in weekly positioning by the disaggregated trader classes, as compiled by the CFTC, is just below.  As we have done for some time now, this week we are also adding in the net positioning of traders the CFTC classes as "Commercial" in the Legacy COT report.  *** (DCOT Table for September 6 and Legacy COT commercial positioning for data as of the close on Tuesday, September 3.   Source CFTC for COT data, Cash Market for gold and silver.)  Please note: Data auto retrieved and unverified until this note removed.  In the DCOT table above a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting "longer" and red figures are traders getting less long or shorter. All of the trader's positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report. We also focus on the Legacy COT positioning of traders deemed "Commercial" by the CFTC, which includes Producers, Merchants, Processors and Users, plus Swap Dealers in a single category.  The Legacy COT report preceded the Disaggregated COT report and we have tracked and charted it for many years, focusing on the movement and positioning of commercial traders – The "Big Hedgers."

Revett Minerals - Good News Indicating A Great Opportunity Posted: 06 Sep 2013 12:43 PM PDT Earlier this year we wrote about a potential opportunity developing with regards to Revett Minerals (RVM). This opportunity finally seems to be materializing following yesterday's announcement from the company. The Thesis Temporary closure of the company's only operating asset seems to be coming to an end. We expect the share price to re-rate close to levels seen before an unfortunate event necessitated production to cease. As if to confirm our thesis the stock has already gained 20% in less than 24 hours; overall the share price has almost doubled off the early July bottom and we believe that it still has a very long way to go. A two-fold increase of the share price from current levels within the next year seems possible, with considerable residual risk still present. RVM data by YCharts The Troy Mine Story Revett Minerals owns the Troy copper and silver mine

Gold Marks 2 Years from Top with $30 Jump on Weak US Data Posted: 06 Sep 2013 11:59 AM PDT Bullion Vault

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