Gold World News Flash |
- CFTC Investigation PROVES Silver Bullet Silver Shield Is Right
- This Will Create A Horrific Collapse That Will Shock The World
- Proposed legislation would forbid minting U.S. gold and silver coins in current format
- Shut Happens
- The Apocalypse Is Upon Us
- Dutch pension fund defeats central bank, wins right to invest in gold
- The Gold Price Lost $11.90 Closing at $1,326.50
- The Gold Price Lost $11.90 Closing at $1,326.50
- Banca d'Italia says gold reserves key to central bank independence
- Government Shutdown: The Next Step In The Collapse Of The Dollar?
- Turk sees dollar collapse; Embry relieved that at least JPM isn't manipulating silver
- China’s Increasing Demand for Platinum
- Futures Ramp On Speculation House Republicans May Fold; Fall On Report No More Votes Tonight
- NYPD Searching For Parachutists Who Landed Near Goldman's New York Headquarters
- Central Bank of Italy: Gold Is a Key Asset For Central Banks Because It Has No Counterparty Risk
- Central Bank of Italy: Gold Is a Key Asset For Central Banks Because It Has No Counterparty Risk
- Will the government shuts down will gold wake-up?
- Thoughts from the Frontline: Renminbi: Soon to Be a Reserve Currency?
- China Stimulates Gold Demand, Becomes World’s Largest Gold Importer
- Gold & Silver Price Zigzagging Like US Politicians
- Massive Gold Earthquake Now Shaking The Financial System
- Data On the Drive Up: The New Cost of U.S. Health Care
- Gold Daily and Silver Weekly Charts - Capping For a Non-Farm Payrolls Report
- Gold Daily and Silver Weekly Charts - Capping For a Non-Farm Payrolls Report
- Why We’re Ungovernable, Part 8: Washington Shuts Down, Rome Falls
- Cash heavy but project light, Chalice Gold reshaping begins
- Catastrophic Collapse To Unleash Unprecedented Chaos
- Gold ETF outflows resume – will they continue?
- Expect Gold Price to Soar on Good Economic News
- Gold promises vigorous, probably volatile week ahead
- The Daily Market Report
- LBMA 2013 in Numbers So Far
- LBMA 2013 in Numbers So Far
- LBMA 2013 in Numbers So Far
- U.S. Extend-and-Pretend: the Zombie lives!
- This Will Create A Horrific Collapse That Will Shock The World
- No go on Bank of France gold rumor
- Technical Status: Gold, Silver and Much More...
- J. Bradley Jansen: Indian gold as alternative currency
- Government Shutdown Hits Gold
- China plans to ease gold trade restrictions
- Ground Control to Major Tom: Reserves Are in Jeopardy
- For Struggling Middle Class Families, The Gold Standard Is No Fairy Tale
- Developments In Washington Will Drive Precious Metals Prices This Week
- Gold Bulls Raise Wagers Most in Month on Stimulus
- The Fed’s $700 Billion Magic Trick
- Gold gains as U.S. shutdown looms, headed for best qtr in a year
- Gold easier at 1332.82 (-2.98). Silver 21.65 (-0.07). Dollar lower. Euro firm. Stocks called sharply lower. US 10yr 2.60% (-3 bps).
- Gold price in a range of currencies since December 1978 XLS version
- Jim’s Mailbox
| CFTC Investigation PROVES Silver Bullet Silver Shield Is Right Posted: 30 Sep 2013 11:30 PM PDT from TruthNeverTold: | ||||||||||||||||||||||||||||||||||||||||||||||||
| This Will Create A Horrific Collapse That Will Shock The World Posted: 30 Sep 2013 11:00 PM PDT from KingWorldNews:
But these markets continue to trade in a counterintuitive manner. There has been nothing that you could really construe as negative in terms of fundamental news happening for gold or silver in the past 2 years. We have seen massive QE, political unrest, rapidly falling supply, and very strong physical demand. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Proposed legislation would forbid minting U.S. gold and silver coins in current format Posted: 30 Sep 2013 09:00 PM PDT 11:55a HKT Tuesday, October 1, 2013 Dear Friend of GATA and Gold: Legislation that has been proposed in Congress to prevent the minting of U.S. coins whose manufacturing cost exceeds their denomination would stop the U.S. Mint's issuance of gold and silver coins, Mike Zielinski notes in commentary at Coin Update. This is probably an oversight on the part of the legislation's drafters, but imagine if the bill was amended not to exempt gold and silver coins but to require imprinting an honest denomination on them. Zielinski's commentary is posted at Coin Update here: http://news.coinupdate.com/would-save-ii-act-also-prohibit-bullion-and-n... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Don't Let Cyprus Happen to You Depositors at the Bank of Cyprus lost 47.5 percent of their savings. So to preserve your wealth, get some of it outside the banking system into physical gold and silver. Worldwide Precious Metals (Canada) Ltd., established in 2001, specializes in physical gold, silver, platinum, and palladium. We offer delivery or secure and fully insured storage outside the banking system in Brinks vaults. We have access to gold and silver from trusted worldwide refineries and suppliers. And when you have an account with us you have immediate access to it for buying and selling your stored bullion. For information on owning physical precious metals in your portfolio, visit us at: www.wwpmc.com. Join GATA here: Louis Boulanger Now Seminar http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 The Silver Summit http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2013 08:59 PM PDT It's 12:01am, do you know where your government is?
S&P Futures are 1677, 10Y yield 2.65%, WTI $101.96, Gold $1329.00 - let's see where we open tomorrow...
Full Statement from The White House:
Now it's getting serious...
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| Posted: 30 Sep 2013 08:53 PM PDT by Dave Hodges, The Common Sense Show:
The central bankers are going to get their war one way or another: The CIA backed Syrian rebels staged a false flag chemical weapons attack last winter on Aleppo. They just staged another chemical weapons attack on Damascus in August. Each attack was designed to falsely blame Syrian leader, Assad, for the attacks and served as a pretext to bring the US into the war and eventually topple Assad. This was to have been followed by having Syria serve as a launching pad from which to invade Iran. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Dutch pension fund defeats central bank, wins right to invest in gold Posted: 30 Sep 2013 08:49 PM PDT By Den Haag http://www.rechtspraak.nl/Organisatie/CBb/Nieuws/Pages/DNB---aanwijzing-... Tuesday, September 10, saw the final ruling of the Board of Industry Appeals (College van Beroep voor het Bedrijfsleven) on the gold case brought by the Dutch pension fund Vereenigde Glasfabrieken against De Nederlandse Bank (DNB, the Dutch central bank) in 2011. The pension fund objected to an earlier directive of DNB. This ruling is in favor of the pension fund, because the judges of this college, following an earlier decision in March 2012, not only ruled that a fund may decide how to implement its investment policy, but also ruled that DNB failed to underpin its concerns as expressed in the directive imposed [onto the pension fund]. By contrast, the underpinning of the pension fund was so clear that the judges fully agreed. They agreed with the pension fund that there may be circumstances that justify deviation from ordinary investment policies. Such circumstances included the financial crisis that began in 2008 and the euro crisis that was an extension of this financial crisis. ... Dispatch continues below ... ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata These crises were indeed at the root of the defensive investment of the pension fund. DNB turned a blind eye to these circumstances and considered only an ALM study (Assets & Liability Management), a study that ignored any negative factors in an economy. Furthermore, DNB did not present relevant examples on gold investment other than a blurred report by JP Morgan, which stated that one should invest only 1 percent in a commodity. That study -- rather dubious and lacking detail -- turned out to be their sole defense. It is also noticeable that the supervisors at DNB have not the slightest idea of gold's function in finance and economy. They are in good company, because most economists in the Netherlands don't know either. Gold is the de-facto foundation of our economic system and it is therefore essential for any pension fund (or any other investment fund) to have gold in the portfolio as a hedge against unforeseen system risks. In the world of financial investment, gold is insurance and the return on that investment is not in interest or dividends but protection against inflationary measures of the government. The return on that investment is the safety of the portfolio. Risks such as high monetary inflation, collapse of the system, war, and other major events are fully hedged in this way. Especially in high-risk times like today, gold is a buffer and a safe haven for many investors. Unfortunately, this knowledge is not yet widespread, as DNB and large investment companies still blindly trust completely outdated studies like ALM. It is a tragedy that many funds have already incurred considerable losses due to this one-sided approach. The great advantage of this final ruling (no further appeal is possible) is that pension funds again are free in their investment policy without the need to anticipate improper intervention by DNB. The ruling clearly indicates that DNB needs to substantiate its decisions carefully and that lax directives without valid arguments will no longer be tolerated. This is truly a revolution: DNB is a supervisor, not an investment adviser. A supervisor should limit its directives to cases of clear malpractice or destructive financial policy. In other words, as the judges also indicated, supervision needs to keep its distance. ----- Thanks to Louis Boer for the translation from Dutch to English. Join GATA here: Louis Boulanger Now Seminar http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 The Silver Summit http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... | ||||||||||||||||||||||||||||||||||||||||||||||||
| The Gold Price Lost $11.90 Closing at $1,326.50 Posted: 30 Sep 2013 08:31 PM PDT Gold Price Close Today : 1326.50 Change : -11.90 or -0.89% Silver Price Close Today : 21.656 Change : -0.127 or -0.58% Gold Silver Ratio Today : 61.253 Change : -0.189 or -0.31% Silver Gold Ratio Today : 0.01633 Change : 0.000050 or 0.31% Platinum Price Close Today : 1408.10 Change : -6.80 or -0.48% Palladium Price Close Today : 726.15 Change : -4.65 or -0.64% S&P 500 : 1,681.55 Change : -10.20 or -0.60% Dow In GOLD$ : $235.78 Change : $ 0.11 or 0.05% Dow in GOLD oz : 11.406 Change : 0.005 or 0.05% Dow in SILVER oz : 698.64 Change : -1.83 or -0.26% Dow Industrial : 15,129.67 Change : -128.57 or -0.84% US Dollar Index : 80.218 Change : -0.066 or -0.08% Same old pendulum swing for Silver and GOLD PRICES today, in the same old trading range. The gold price lost 11.90 and ended Comex at $1,326.50. Silver gave up 12.7 cents to end at 2165.6c. The daily highs are getting higher, and the lows higher, so there's an uptrend from the September low. Gold's 20 and 50 DMAs ($1,348.53 and $1,347.62) are nearly crossing, the 20 below the 50, which is not good, but the MACD is about to climb above zero. 12 day rate of change just turned positive but the 21 day remains negative. Like the gold price, the SILVER PRICE has established a little uptrend, but capped just above 2200c. All other indicators speak as gold's. For right now, silver and GOLD PRICES are just holding on, and nothing suggests they are about to rally. Gold can't pierce $1,340 and silver can't jump over 2200c. Debt ceiling mess is probably hurting metals nearly as much as stocks. Of course, it will end positively for metals. After the puffing, blowing, and posturing, congress WILL raise the debt ceiling. They can't cut spending, and their little mouse-burp cuts amount to nothing. Wherefore, the Federal Reserve/federal government partnership will continue to inflate the dollar, depreciating it, and driving silver and gold prices higher and higher. But when there's a big price drop like April's, people's fear drives all this out of their minds. Markets are not rational.Y'all ask yourself this, as rational folks: Why should a government shutdown send down the stock market? Answer: Federal government spending provides more than 30% of the income in the country. Put another way, Federal government spending plus state and local government spending provide over 50% of the income in America (GDP). If I'm lying, I'm dying. America really has no economy -- the government IS the economy. Or, only half the people in the country produce something for a living. The other half consume the taxes the others pay, plus all the money the federal government borrows into existence. Of course, the yankee government will never pay all that debt. They cannot, just as they cannot stop spending, so the debt WILL be repudiated, either by default or by hyperinflation. But the truth of that obvious conclusion runs so contrary to accepted wisdom -- "what everybody knows" -- that only very few can hear and accept it. People believe what they want to believe. Stocks took a body blow today from the debt ceiling drama. Dow lost 128.57 (0.84%) to end at 15,129,67. MACD has crossed over and turned down, and the Dow has fallen way below its 50 DMA (15,280) and 20 DMA (15,269.84). RSI points down. Histogram has fallen below zero. S&P500 wasn't much better. Lost 10.2 (0.6%) to 1,681.55, and it carries all the Dow's same negatives except it hasn't closed below its 50 DMA (1680). At the end of the Day the Dow in Gold was slightly down, flat really, while the Dow in silver was lower by 0.26% at 698.64 oz. Still below 700 oz. Ongoing downtrend in Dow in Gold and Dow in Silver argues that gold and silver are about to spend a long time gaining value on stocks, whether stocks rise again or not. Currencies changed little today. US dollar index, that old charlatan, dropped 6.6 basis points (0.08%) while the Yen and Euro barely moved. Maybe all the Nice Government Men are working around the globe to manipulate currency stability. Maybe they're afraid that the sinking dollar might mess up their party and cost them their cushy jobs. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2013, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. | ||||||||||||||||||||||||||||||||||||||||||||||||
| The Gold Price Lost $11.90 Closing at $1,326.50 Posted: 30 Sep 2013 08:31 PM PDT Gold Price Close Today : 1326.50 Change : -11.90 or -0.89% Silver Price Close Today : 21.656 Change : -0.127 or -0.58% Gold Silver Ratio Today : 61.253 Change : -0.189 or -0.31% Silver Gold Ratio Today : 0.01633 Change : 0.000050 or 0.31% Platinum Price Close Today : 1408.10 Change : -6.80 or -0.48% Palladium Price Close Today : 726.15 Change : -4.65 or -0.64% S&P 500 : 1,681.55 Change : -10.20 or -0.60% Dow In GOLD$ : $235.78 Change : $ 0.11 or 0.05% Dow in GOLD oz : 11.406 Change : 0.005 or 0.05% Dow in SILVER oz : 698.64 Change : -1.83 or -0.26% Dow Industrial : 15,129.67 Change : -128.57 or -0.84% US Dollar Index : 80.218 Change : -0.066 or -0.08% Same old pendulum swing for Silver and GOLD PRICES today, in the same old trading range. The gold price lost 11.90 and ended Comex at $1,326.50. Silver gave up 12.7 cents to end at 2165.6c. The daily highs are getting higher, and the lows higher, so there's an uptrend from the September low. Gold's 20 and 50 DMAs ($1,348.53 and $1,347.62) are nearly crossing, the 20 below the 50, which is not good, but the MACD is about to climb above zero. 12 day rate of change just turned positive but the 21 day remains negative. Like the gold price, the SILVER PRICE has established a little uptrend, but capped just above 2200c. All other indicators speak as gold's. For right now, silver and GOLD PRICES are just holding on, and nothing suggests they are about to rally. Gold can't pierce $1,340 and silver can't jump over 2200c. Debt ceiling mess is probably hurting metals nearly as much as stocks. Of course, it will end positively for metals. After the puffing, blowing, and posturing, congress WILL raise the debt ceiling. They can't cut spending, and their little mouse-burp cuts amount to nothing. Wherefore, the Federal Reserve/federal government partnership will continue to inflate the dollar, depreciating it, and driving silver and gold prices higher and higher. But when there's a big price drop like April's, people's fear drives all this out of their minds. Markets are not rational.Y'all ask yourself this, as rational folks: Why should a government shutdown send down the stock market? Answer: Federal government spending provides more than 30% of the income in the country. Put another way, Federal government spending plus state and local government spending provide over 50% of the income in America (GDP). If I'm lying, I'm dying. America really has no economy -- the government IS the economy. Or, only half the people in the country produce something for a living. The other half consume the taxes the others pay, plus all the money the federal government borrows into existence. Of course, the yankee government will never pay all that debt. They cannot, just as they cannot stop spending, so the debt WILL be repudiated, either by default or by hyperinflation. But the truth of that obvious conclusion runs so contrary to accepted wisdom -- "what everybody knows" -- that only very few can hear and accept it. People believe what they want to believe. Stocks took a body blow today from the debt ceiling drama. Dow lost 128.57 (0.84%) to end at 15,129,67. MACD has crossed over and turned down, and the Dow has fallen way below its 50 DMA (15,280) and 20 DMA (15,269.84). RSI points down. Histogram has fallen below zero. S&P500 wasn't much better. Lost 10.2 (0.6%) to 1,681.55, and it carries all the Dow's same negatives except it hasn't closed below its 50 DMA (1680). At the end of the Day the Dow in Gold was slightly down, flat really, while the Dow in silver was lower by 0.26% at 698.64 oz. Still below 700 oz. Ongoing downtrend in Dow in Gold and Dow in Silver argues that gold and silver are about to spend a long time gaining value on stocks, whether stocks rise again or not. Currencies changed little today. US dollar index, that old charlatan, dropped 6.6 basis points (0.08%) while the Yen and Euro barely moved. Maybe all the Nice Government Men are working around the globe to manipulate currency stability. Maybe they're afraid that the sinking dollar might mess up their party and cost them their cushy jobs. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2013, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Banca d'Italia says gold reserves key to central bank independence Posted: 30 Sep 2013 08:26 PM PDT By Jan Harvey and Clara Denina ROME -- Keeping gold reserves is a key support to central banks' independence, an official from Banca d'Italia told a bullion industry conference on Monday, dampening talk that it might sell some of its holdings. Speculation has emerged since the financial crisis hit the euro zone that Banca d'Italia might be pressured to leverage or even sell some of its huge gold reserves, the fourth largest among the world's central banks, to help prop up its economy. ... For the complete story: http://www.reuters.com/article/2013/09/30/lbma-central-banks-idUSL6N0HQ1... ADVERTISEMENT You Don't Have to Wait for Your Monetary Metal: Many investors lately report having to wait weeks and even months for delivery of their precious metal orders. All Pro Gold works with the largest wholesalers that have inventory "live" -- ready to go. All Pro Gold can ship these "live" gold and silver products as soon as payment funds clear. All Pro Gold can provide immediate delivery of 100-ounce Johnson Matthey silver bars, bags of 90 percent junk silver coins, and 1-ounce silver Austrian Philharmonics. All Pro Gold can deliver silver Canadian maple leafs with a two-day delay and 1-ounce U.S. silver eagles with a 15-day delay. Traditional 1-ounce gold bullion coins and mint-state generic gold double eagles are also available for immediate delivery. All Pro Gold has competitive pricing, and its proprietors, longtime GATA supporters Fred Goldstein and Tim Murphy, are glad to answer any questions or concerns of buyers about the acquisition of precious metals and numismatic coins. Learn more at www.allprogold.com or email info@allprogold.com or telephone All Pro Gold toll-free at 1-855-377-4653. Join GATA here: Louis Boulanger Now Seminar http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 The Silver Summit http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Government Shutdown: The Next Step In The Collapse Of The Dollar? Posted: 30 Sep 2013 08:20 PM PDT by Brandon Smith, Alt-Market:
It’s about time that sellout bastard did something to clean up his own act. I also love the idea of the federal government out of the picture and removed from the U.S. dynamic. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Turk sees dollar collapse; Embry relieved that at least JPM isn't manipulating silver Posted: 30 Sep 2013 08:16 PM PDT 11:10a HKT Tuesday, October 1, 2013 Dear Friend of GATA and Gold: Interviewed at King World News, GoldMoney founder and GATA consultant James Turk says that for months now the U.S. government has been using gimmicks to get around the government debt ceiling, and regardless of what happens with the government shutdown in Washington, excessive debt will collapse the U.S. dollar: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/30_Ca... Meanwhile at King World News, Sprott Asset Management's John Embry says the counterintuitive action in the monetary metals amid political turmoil is simply desperate intervention by government to support the dollar. Embry notes the many legal actions brought against JPMorganChase for market improprieties and expresses sarcastic relief that the U.S. Commodity Futures Trading Commission apparently has determined that silver is the one market that JPMorganChase isn't manipulating: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/30_Th... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Don't Let Cyprus Happen to You Depositors at the Bank of Cyprus lost 47.5 percent of their savings. So to preserve your wealth, get some of it outside the banking system into physical gold and silver. Worldwide Precious Metals (Canada) Ltd., established in 2001, specializes in physical gold, silver, platinum, and palladium. We offer delivery or secure and fully insured storage outside the banking system in Brinks vaults. We have access to gold and silver from trusted worldwide refineries and suppliers. And when you have an account with us you have immediate access to it for buying and selling your stored bullion. For information on owning physical precious metals in your portfolio, visit us at: www.wwpmc.com. Join GATA here: Louis Boulanger Now Seminar http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 The Silver Summit http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||
| China’s Increasing Demand for Platinum Posted: 30 Sep 2013 08:00 PM PDT from silver investor.com: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Futures Ramp On Speculation House Republicans May Fold; Fall On Report No More Votes Tonight Posted: 30 Sep 2013 07:36 PM PDT Update: Well, kiss that idea goodbye: GOVERNMENT WILL SHUT DOWN TONIGHT; HOUSE WILL NOT ATTEMPT MORE VOTES TONIGHT, WAPO REPORTS (link)
While it will be supremely ironic if stocks were to soar on the day the US government shuts down (it would be curious to see how Congress would spin that particular "market" reaction to a world without a US government), a ramp in the futures is precisely what is going on.
And while there is no definite reason for this market reaction, it is being attributed to two things: first, the House Rules panel announced moments ago it would meet at 10:30 pm on a new spending Bill and are that Republicans are said to seek talks with the Senate on spending. Of course, if the GOP folds in the last moment, it would be Boehner's most epic collapse to date (in a long and illustrious series of humiliations). Which brings us to reason number two: also moments ago, John McCain pretty much threw his colleagues under the bus, saying House Republicans will not "succeed in the end" and that the House will end up sending a clean CR, just as Obama has demanded all along, which in turn has emboldened traders to assume that there is a better than negligible chance the GOP will once again bend over. From NRO:
Either way: 90 minutes now and counting. | ||||||||||||||||||||||||||||||||||||||||||||||||
| NYPD Searching For Parachutists Who Landed Near Goldman's New York Headquarters Posted: 30 Sep 2013 07:23 PM PDT Just in case you thought the surreality of the US political debacle we are witnessing was too much, the NYPD releases a statement that stokes the fire of confusion. The New York Police Department is looking for two unidentified people who may (or may not) have parachuted on to a lower Manhattan Street. Private security guards reported seeing the skydivers land in front of the Goldman Sachs HQ at around 3am (which we could not help but note was the highs of the European session for Gold). The police noted it was unclear if they jumped from a plane or from a high-rise building (or from Bernanke's helicopter).
Via AP,
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| Central Bank of Italy: Gold Is a Key Asset For Central Banks Because It Has No Counterparty Risk Posted: 30 Sep 2013 06:33 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||
| Central Bank of Italy: Gold Is a Key Asset For Central Banks Because It Has No Counterparty Risk Posted: 30 Sep 2013 06:33 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||
| Will the government shuts down will gold wake-up? Posted: 30 Sep 2013 06:03 PM PDT The Real Asset Co | ||||||||||||||||||||||||||||||||||||||||||||||||
| Thoughts from the Frontline: Renminbi: Soon to Be a Reserve Currency? Posted: 30 Sep 2013 04:21 PM PDT Thoughts from the Frontline: Renminbi: Soon to Be a Reserve Currency? By John Mauldin I get the question all the time: when will the Chinese renminbi (RMB) replace the US dollar as the major world reserve currency? The assumption behind such questions is almost always that the coming crisis in US entitlement programs will […] | ||||||||||||||||||||||||||||||||||||||||||||||||
| China Stimulates Gold Demand, Becomes World’s Largest Gold Importer Posted: 30 Sep 2013 02:59 PM PDT It was only a week ago when Adrian Ash reported that ”India this year looks very likely to be eclipsed by Chinese demand possibly by as much as 100 tonnes when all areas of fabrication (and hoarding) are taken into account,” quoting SocGen analyst Robin Bhar. China has seen an incredible rise in physical gold demand in 2013. The following chart shows the Chinese import data until July of this year. We wrote earlier that, between January and July of this year, China imported a staggering 633.94 tonnes of physical gold. The country is on its way to reach 1,000 tonnes of imports over the whole year, as forecasted by the World Gold Council. Chart courtesy: Sharelynx.
At the end of the second quarter of this year, India was still holding the highest number of gold imports worldwide. Chart courtesy: USFunds.com.
With exactly 15 restrictive measures in 18 months (see overview) by the Indian government contrasted by an increasingly stimulative policy in China, this year’s gold biggest importer is becoming China. Reuters wrote today:
Read the moral of the Indian gold story in The Lesson Of India's Gold Saga | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gold & Silver Price Zigzagging Like US Politicians Posted: 30 Sep 2013 02:58 PM PDT There is a deal. There is no deal. There is a deal. There is no deal. Just like the US politicians have been sending proposals back and forth today, equities and precious metals have been reacting up and down. It all started right at the beginning of the trading day in Asia (morning Asia, midnight Europe) with a spike which lasted a couple of minutes. When the debates between politicians began, with every piece of news there was a reaction in equities and precious metals. The chart shows in particular the moves between 8 AM EST and 2PM EST. Somewhere in between the Bank of France announced they will not be selling their gold reserves resulting in a temporary spike in the gold price. COMEX gold closed the day at $1,328.40 per ounce, an increase of 0.11% on Friday’s close. COMEX silver closed 0.04% lower at $21.70 per ounce. In London gold traded at $1326.50 or €980.41 at the PM Fix.
Undoubtedly most have lost track in today’s political debate. All proposals were quick fixeswith a “kick the can down the road” attitude at its best. To get an idea of the type of political discussion readers should check for instance this intermediate status from earlier today Senate Kills House Bill: What Happens Next. As were are a couple of hours before the deadline and there is no plan the US government will possibly be threatened with a shutdown. As there appears to be no solution everyone starts pointing to each other about the lack of cooperation. It is clear that no structural plan has been worked out and that the debt monster continues to be fed by the US politicians. This is absurdity in the highest degree. Coming back to the precious metals markets, given today’s price action and the absence of any fundamental solution, one can expect more volatility in the coming days. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Massive Gold Earthquake Now Shaking The Financial System Posted: 30 Sep 2013 01:57 PM PDT Dear CIGAs, In the aftermath of last week's disaster for the Fed, today Canadian legend John Ing sent King World News a tremendous piece. Ing, who has been in the business for 43 years, says that a major financial earthquake is now underway and gold is at the center of it. Below is what the... Read more » The post Massive Gold Earthquake Now Shaking The Financial System appeared first on Jim Sinclair's Mineset. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Data On the Drive Up: The New Cost of U.S. Health Care Posted: 30 Sep 2013 01:26 PM PDT For months now, we've been waiting to hear how much Obamacare will drive up the cost of health insurance for people who purchase coverage on their own. Last week, the U.S. Department of Health and Human Services finally began to provide some data on how Americans will fare on Obamacare's federally sponsored insurance exchanges. HHS' press release is full of happy talk about how premiums will be "lower than originally expected." But the reality is starkly different. "HHS has chosen to dodge the question of whose rates are going up, and how much." Based on a Manhattan Institute analysis of the HHS numbers, Obamacare will increase underlying insurance rates for younger men by an average of 97-99%, and for younger women by an average of 55-62%. Worst off is North Carolina, which will see individual market rates triple for women and quadruple for men. Earlier this month, I and two colleagues from the Manhattan Institute — Yevgeniy Feyman and Paul Howard — published an interactive map that detailed Obamacare's impact on individually purchased health insurance premiums in 13 states plus D.C. As another article I wrote described, Obamacare increased premiums in those states by an average of 24%. But those states were largely blue states that had set up their own state-based insurance exchanges. The big data dump that we've been waiting for since then is from the majority of states that didn't set up their own state-based exchanges. Those data are the responsibility of the Obama administration, namely HHS. Finally, with less than a week to go before the exchanges are supposed to go on line, HHS has released a slim, 15-page report and a press release that summarizes some of the premium data. "Premiums nationwide will also be around 16% lower than originally expected," HHS cheerfully announces in its press release. But that's a ruse. HHS compared what the Congressional Budget Office projected rates might look like — in 2016 — to its own findings. Neither of those numbers tells you the stat that really matters: how much rates will go up next year, under Obamacare, relative to this year, prior to the law taking effect. Former Congressional Budget Office director Douglas Holtz-Eakin agrees. "There are literally no comparisons to current rates. That is, HHS has chosen to dodge the question of whose rates are going up, and how much. Instead, they try to distract with a comparison to a hypothetical number that has nothing to do with the actual experience of real people." The HHS report doesn't provide enough details about Obamacare's premiums for us to incorporate the data into our interactive map. Our map compares the five cheapest plans available on the market today with the five cheapest plans available on Obamacare's exchanges. The HHS report offers only the cheapest bronze, silver and gold plans and the second-cheapest silver plan. We look at rates for 27-, 40-, and 64-year-olds, and rates for men and women. (Under Obamacare, rates for men and women are the same, which has the net effect of disproportionately increasing rates for men, who generally paid less under the old system.) The HHS report offers rates for 27-year-olds, and rates for the average-aged exchange participant, a figure that varies by state, but seems to generally land in the mid-30s. So we conducted two comparisons between pre-ACA data and post-ACA data, as reported by HHS. The first comparison is between the cheapest plan available to 27-year-olds pre- and post-Obamacare. The second is between the cheapest plan available to the average exchange participant and to the typical 40-year-old pre-Obamacare. We would have liked to have compared rates for older individuals, but HHS didn't report that data.
As you can see from the map above, many 27-year-olds will face steep increases in the underlying cost of individually purchased insurance under Obamacare. For the states where we have data — the 36 reported by HHS, plus nine others that we had compiled for our map that HHS didn't report — rates will go up for men by an average of 97%; for women, 55%. (In the few cases where HHS reported on states that our map includes, we went with HHS' numbers.) Worst off was Nebraska, where the difference between the cheapest plan under the old system and under Obamacare was 279% for men and 227% for women — more than triple the old rate. Faring best was Colorado, where rates will decline for both 27-year-old men and women by 36%. The only other state to see a rate decline in this analysis was New Hampshire: 8% for both men and women. (Still missing are data from Hawaii, Kentucky, Massachusetts, Maryland, Minnesota and Nevada. The data from New York and New Jersey should be taken with a grain of salt, as their individual insurance markets are not like those of other states.)
Forty-year-olds, surprisingly, will face a similar picture. The cheapest exchange plan for the average enrollee, compared with what a 40-year-old would pay today, will cost an average of 99% more for men, and 62% for women. The cheapest exchange plan for the average enrollee, compared with what a 40-year-old would pay today, will cost an average of 99% more for men, and 62% for women. For this cohort, men fared worst in North Carolina, with rate increases of 305%. Women got hammered in Nebraska, where rates will increase by a national high of 237%. Again, Colorado and New Hampshire fared best, with 17% and 5-8% declines, respectively. Remember that here we aren't conducting an exact comparison. Instead, we're comparing the lowest-cost bronze plan offered to the average participant in the exchanges with the cheapest plan offered to 40-year-olds today. This approach artificially flatters Obamacare, because the median age of an exchange participant is, in most states, below the age of 40. In both the 27-year-old and 40-year-old comparisons, we adjusted the pre-ACA rates to take into account people who would be charged more for insurance, or denied coverage altogether, due to a pre-existing condition using the same methodology we've used in the past. All of the analyses I've discussed thus far involve changes in the underlying cost of health insurance for people who buy it for themselves. Many progressives object to this comparison, because it doesn't take into account the impact of Obamacare's subsidies on the net cost of insurance for low-income Americans. I've long argued that it's irresponsible to ignore the change in underlying premiums, because subsidies protect only some people. Middle-class Americans face the double-whammy of higher insurance premiums and higher taxes to pay for other people's subsidies. However, it is important to understand how subsidies will impact the decisions by Americans as to whether or not to participate in the exchanges. If you click on the "Your Decision" tab on our interactive map, you will now find the results, as assembled by Yevgeniy, for the 13 states plus D.C. in our original database. Here's the bottom line: Most people with average incomes will pay more under Obamacare for individually purchased insurance than they did before.
In the 13 states plus D.C., a 27-year-old would have to make 59% of the median income of his peers, or less, to come out ahead with regard to Obamacare's subsidies. A 40-year-old would have to make less than 57% of the median income for his peers. On the other hand, older people fare better; the average 64-year-old who makes less than 111% of the median income for 64-year-olds will spend less on premiums than he did before. However, the overall results make clear that most people will not receive enough in subsidies to counteract the degree to which Obamacare drives premiums upward. Remember that nearly two-thirds of the uninsured are under the age of 40. And that young and healthy people are essential to Obamacare; unless these individuals are willing to pay more for health insurance to subsidize everyone else, the exchanges will not serve the goal of providing coverage to the uninsured. For months, we've heard about how Obamacare's trillions in health care subsidies were going to save America from rate shock. It's not true. If you shop for coverage on your own, you're likely to see your rates go up, even after accounting for the impact of pre-existing conditions, even after accounting for the impact of subsidies. The Obama administration knows this, which is why its 15-page report makes no mention of premiums for insurance available on today's market. Silence, they say, speaks louder than words. HHS' silence on the difference between Obamacare's insurance premiums and those available today tell you everything you need to know. Rates are going higher. And if you're healthy, or you're young, the Obama administration expects you to do your duty and pay up. Regards, Avik Roy Ed. Note: In today’s Daily Reckoning email edition, we discussed in depth, the impending start to Obamacare and the likely effects of a government shutdown… and in the process, we offered readers a few unique chances to profit no matter what happens. It’s just a small part of being signing up for the FREE Daily Reckoning email edition. Not a subscriber? You can fix that right here. It only takes about 30 seconds to sign up, and there is no obligation. You can cancel at any time. You have nothing to lose and everything to gain. Sign up for free, right here. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Capping For a Non-Farm Payrolls Report Posted: 30 Sep 2013 01:24 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Capping For a Non-Farm Payrolls Report Posted: 30 Sep 2013 01:24 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||
| Why We’re Ungovernable, Part 8: Washington Shuts Down, Rome Falls Posted: 30 Sep 2013 01:22 PM PDT This week both Italy and the US saw their ruling coalitions splinter. First Italy:
Now the US:
Some thoughts Once a system coalesces around one broad set of policies such as socialism or militarism, the major parties no longer have the glue to hold their internal coalitions together because their central policies don't differ meaningfully from those of other major parties. So the factions inside each big party that don't like the dominant theme splinter off into smaller parties. Each election then becomes an exercise in rebuilding what was once an internal coalition by bringing enough smaller parties into the government to gain a working majority. That's Italy's current situation (but not just Italy's; see what's happening in Germany). All the major parties pretty much agree that the government should do everything and control everyone, so there are numerous smaller parties built around peripheral issues. The drama is thus between rather than within parties, with a cobbled-together governing coalition trying to bind enough smaller groups to make a functional majority. When this fails, the government falls. It doesn't matter why they're arguing (I don't actually know an am sure it's trivial). The point is that their disagreement can collapse the government. In the US, because the two big parties still appear to represent different worldviews and policies, the various subgroups (lawyers, public sector workers, military personnel, libertarians, businesspeople, immigrants, etc.) mostly remain inside one party or the other. But as the two parties coalesce around a single set of policies that include ever-higher government spending, never-ending foreign intervention, and unlimited domestic spying, big sections of the Republican coalition are increasingly appalled at what they're being asked to sign off on. Libertarians, for instance, are being asked to allow the government to borrow trillions of dollars more – when they don't believe in government borrowing as a concept – to fund a range of domestic and foreign policies that in their opinion shouldn't exist in the first place. Religious conservatives, meanwhile, are being asked to fund a health care law with provisions they find offensive along with a growing list of other disturbing social and economic policies. Each group has begun to wonder if keeping the big tent standing is worth the price. It appears that a significant part of the House of Representatives has decided that it's not and has, in effect, withdrawn from the party and decided to force the government to live within its means. So in effect the US is going through something very similar to Italy, where a crucial part of the governing coalition has taken its ball and gone home. But the Italians have the advantage of being used to dealing with coalitions that dissolve and re-coalesce every few years. For the US this might be uncharted territory, and while it will no doubt be resolved in favor of the dominant set of policies, it will be repeated, with ever-greater amplitude, until the republican party fragments and the libertarians, Tea Partiers and fundamentalists form smaller parties in which they're comfortable. The same thing will happen to the democrats as soon as they're out of power, when those in favor of the surveillance state and those against it realize that their differences are fundamental and irreconcilable. This sets the stage for a "freedom coalition" that will make US politics interesting again.
The previous articles in this series can be found here: Why We're Ungovernable, Part 2: Battle Lines Why We're Ungovernable, Part 3: Gridlock and the Fiscal Cliff Why We're Ungovernable, Part 4: Hollande's Short Honeymoon Why We're Ungovernable, Part 5: Japan Would Be Manageable If Only Why We're Ungovernable, Part 6: Here Comes the Debt Ceiling Why We're Ungovernable, Part 7: Italy Does Chaos With Style
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| Cash heavy but project light, Chalice Gold reshaping begins Posted: 30 Sep 2013 01:19 PM PDT Chalice Gold makes a bid for Coventry Resources and entry into territory around New Gold’s Rainy River gold project in Ontario. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Catastrophic Collapse To Unleash Unprecedented Chaos Posted: 30 Sep 2013 01:00 PM PDT  With the US dollar trading dangerously close to breaking the critical multi-decade support at 80 on the US Dollar Index, today James Turk warned King World News that a catastrophic collapse is going to unleash unprecedented and frightening chaos. Turk states that the horrific collapse and chaos is coming regardless of US attempts to avoid a government shutdown. Below is what Turk had to say in this powerful interview.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gold ETF outflows resume – will they continue? Posted: 30 Sep 2013 12:57 PM PDT Has selling resumed from the gold ETFs? The latest figures suggest it may have, but volumes are perhaps not strong enough to discern a definitive trend – yet. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Expect Gold Price to Soar on Good Economic News Posted: 30 Sep 2013 12:44 PM PDT The standard wisdom on gold is that it does well in times of economic bad news such as in the 1970s, a period of stagflation and recessions, when the yellow metal rose from $35/oz to peak at $850/oz in 1980. But this time, Don Coxe, a portfolio adviser to the BMO Asset Management, believes things are different. In this interview with The Gold Report, Coxe explains why gold will rise when the economy improves. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gold promises vigorous, probably volatile week ahead Posted: 30 Sep 2013 12:01 PM PDT The tightening of gold's trading range is centered on $1,330 and we are above that, promising a vigorous and probably volatile week, says Julian Phillips. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2013 10:22 AM PDT Gold Steady on Shutdown Eve
And be assured, the current budget battle is the smaller of the two crises. The battle over the debt ceiling is the far more troubling of the two. The former is just a squabble over funding the government for another six to ten weeks. The latter on the other hand, puts the “full faith and credit” of the United States in jeopardy as House Republicans seek to wrest concessions from the administration in exchange for a boost to the $16.4 trillion debt ceiling. Make no mistake though, the debt ceiling will be raised, as it always has been. There is simply no way the U.S. can operate without further borrowing. However, there are implications — potentially dire ones — for a country that has a debt burden bigger than its entire economy. U.S. GDP is expected to be somewhere around $15.5 trillion this year. The debt ceiling is currently $16.4 trillion, and Treasury Secretary Lew says we’ll run out of money and face technical default around October 17. Whatever, the debt ceiling is ultimately raised to, you can be sure that the day will come when it has to be raised once again. Even the current tepid economic growth is only possible by borrowing prosperity from the future. The real trouble comes when the future is now, and those bills come due. This is particularly true if those bills come due and must be rolled at higher interest rates. When that happens, debt servicing becomes an ever-larger chunk of government payments. That in turn negatively impacts growth and it becomes increasingly hard to escape the debt trap. This brings us back to the lingering concerns that the Fed will soon start removing accommodations. I don’t see how the Fed can really allow rates to rise in such an environment. Oh sure, they’ll continue to bluster about tapering in the hope of keeping the Treasuries and stock bubbles in check, but we are likely years away from tighter monetary policy. A continuation of the Fed’s über-accommodative policy stance, will weigh on the dollar hasten its erosion as the global reserve currency. As the dollar resumes its long-term downtrend, gold should resume its long-term uptrend. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2013 09:51 AM PDT Live, or very nearly, from the London Bullion Market Association's annual conference... LBMA 2013 in Rome has told us what so far? asks Adrian Ash, typing furiously before the conference's next engagement. 9 kilograms – how much of Germany's huge gold reserves are unallocated. That's less than 1 bar of wholesale gold. Meaning it owns the other 3389.7 tonnes outright, whether in Frankfurt, the New York Fed, Banque de France or Bank of England. And yes, the bars it's going to be shipped from the NY Fed are the specific bars already stated on its allocated bar lists, said Clemens Werner, deputy head of market operations at the Bundesbank... 2 bars – the number owned by the Bank of England, as Matthew Hunt of the Customer Banking Division revealed. You can count those gold bars yourself in its monetary museum. Because unlike most other central banks, the UK's reserves belong to and are controlled by the Treasury. It is simply custodian, caring for Britain's (much shrunken) gold as part of the 400,000-odd large bars in its underground vaults... 65% – the proportion of Indian gold demand which comes from rural areas according to Shekhar Bhandari. Executive Vice President, Kotak Mahindra Bank. That makes the monsoon, wedding and traditional festive seasons key. It also prevents the government selling inflation-linked bonds or other financial products as a way of trying to stem that demand. Because rural savers simply aren't interested... Just 1 or 2 – a handful of small junior gold miners, said Tom Kendall of Credit Suisse, are turning to forward sales to "hedge" their production, and lock in current prices. But that's simply to raise cash for specific projects. Like the major producers, most want to keep full exposure to the price today, a very different world to how the industry treated the bear market of the 1990s. From 11% to 30% – the jump this April in implied volatility in 1-month options on the gold price. Leaping from multi-year lows, the move took 1-month volatility above the 1-year figure, noted Patrick Green, director of commodities trading at Barclays. Meaning the gold price was in stress, and pushing trading activity into shorter-dated contracts. "Any further price fall will likely mean higher volatility again," he said. 727 people from 316 companies – this year's new record attendance for the LBMA conference. And while it might say "London", the market meeting here in Rome this week really is global. More tomorrow, the second and last day of LBMA 2013, with live news and tidbits as we get them on Bullionvault's Twitter feed. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2013 09:51 AM PDT Live, or very nearly, from the London Bullion Market Association's annual conference... LBMA 2013 in Rome has told us what so far? asks Adrian Ash, typing furiously before the conference's next engagement. 9 kilograms – how much of Germany's huge gold reserves are unallocated. That's less than 1 bar of wholesale gold. Meaning it owns the other 3389.7 tonnes outright, whether in Frankfurt, the New York Fed, Banque de France or Bank of England. And yes, the bars it's going to be shipped from the NY Fed are the specific bars already stated on its allocated bar lists, said Clemens Werner, deputy head of market operations at the Bundesbank... 2 bars – the number owned by the Bank of England, as Matthew Hunt of the Customer Banking Division revealed. You can count those gold bars yourself in its monetary museum. Because unlike most other central banks, the UK's reserves belong to and are controlled by the Treasury. It is simply custodian, caring for Britain's (much shrunken) gold as part of the 400,000-odd large bars in its underground vaults... 65% – the proportion of Indian gold demand which comes from rural areas according to Shekhar Bhandari. Executive Vice President, Kotak Mahindra Bank. That makes the monsoon, wedding and traditional festive seasons key. It also prevents the government selling inflation-linked bonds or other financial products as a way of trying to stem that demand. Because rural savers simply aren't interested... Just 1 or 2 – a handful of small junior gold miners, said Tom Kendall of Credit Suisse, are turning to forward sales to "hedge" their production, and lock in current prices. But that's simply to raise cash for specific projects. Like the major producers, most want to keep full exposure to the price today, a very different world to how the industry treated the bear market of the 1990s. From 11% to 30% – the jump this April in implied volatility in 1-month options on the gold price. Leaping from multi-year lows, the move took 1-month volatility above the 1-year figure, noted Patrick Green, director of commodities trading at Barclays. Meaning the gold price was in stress, and pushing trading activity into shorter-dated contracts. "Any further price fall will likely mean higher volatility again," he said. 727 people from 316 companies – this year's new record attendance for the LBMA conference. And while it might say "London", the market meeting here in Rome this week really is global. More tomorrow, the second and last day of LBMA 2013, with live news and tidbits as we get them on Bullionvault's Twitter feed. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2013 09:51 AM PDT Live, or very nearly, from the London Bullion Market Association's annual conference... LBMA 2013 in Rome has told us what so far? asks Adrian Ash, typing furiously before the conference's next engagement. 9 kilograms – how much of Germany's huge gold reserves are unallocated. That's less than 1 bar of wholesale gold. Meaning it owns the other 3389.7 tonnes outright, whether in Frankfurt, the New York Fed, Banque de France or Bank of England. And yes, the bars it's going to be shipped from the NY Fed are the specific bars already stated on its allocated bar lists, said Clemens Werner, deputy head of market operations at the Bundesbank... 2 bars – the number owned by the Bank of England, as Matthew Hunt of the Customer Banking Division revealed. You can count those gold bars yourself in its monetary museum. Because unlike most other central banks, the UK's reserves belong to and are controlled by the Treasury. It is simply custodian, caring for Britain's (much shrunken) gold as part of the 400,000-odd large bars in its underground vaults... 65% – the proportion of Indian gold demand which comes from rural areas according to Shekhar Bhandari. Executive Vice President, Kotak Mahindra Bank. That makes the monsoon, wedding and traditional festive seasons key. It also prevents the government selling inflation-linked bonds or other financial products as a way of trying to stem that demand. Because rural savers simply aren't interested... Just 1 or 2 – a handful of small junior gold miners, said Tom Kendall of Credit Suisse, are turning to forward sales to "hedge" their production, and lock in current prices. But that's simply to raise cash for specific projects. Like the major producers, most want to keep full exposure to the price today, a very different world to how the industry treated the bear market of the 1990s. From 11% to 30% – the jump this April in implied volatility in 1-month options on the gold price. Leaping from multi-year lows, the move took 1-month volatility above the 1-year figure, noted Patrick Green, director of commodities trading at Barclays. Meaning the gold price was in stress, and pushing trading activity into shorter-dated contracts. "Any further price fall will likely mean higher volatility again," he said. 727 people from 316 companies – this year's new record attendance for the LBMA conference. And while it might say "London", the market meeting here in Rome this week really is global. More tomorrow, the second and last day of LBMA 2013, with live news and tidbits as we get them on Bullionvault's Twitter feed. | ||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Extend-and-Pretend: the Zombie lives! Posted: 30 Sep 2013 09:49 AM PDT Most readers are familiar with the market vernacular "extend and pretend." It's origins are the U.S. commercial debt market. This is yet another U.S. Ponzi-scheme and debt-bubble being kept alive solely through pretending that most/all of the massive amounts of bad-debt in this market is still viable. It's a game (and a massive fraud/sham) because if these corporate Deadbeat Debtors ever had their debts closely/rationally scrutinized; their debts would not simply be rolled-over (i.e. "extended") at artificially low rates of interest. Instead, the debt would be assessed much higher rates of interest – to reflect the serious risk of non-repayment (i.e. default). The moment these Deadbeats were faced with legitimate interest rates on their debts; they would default like the row of Ponzi-scheme dominoes that they represent. These zombie corporations are hooked-up to the equivalent of a bond-market "respirator": kept alive only through the totally artificial means of "extend and pretend." But in fact, it's a game which has been (greatly) expanded to encompass the entire U.S. economy in a bubble of denial, and it is a multi-faceted game, at that. One facet of the national game of extend-and-pretend is very similar to the massive sham/fraud in the U.S. commercial debt market – except an order of magnitude more fraudulent. The U.S. Treasuries market is another U.S. extend-and-pretend Ponzi-scheme, in two respects – three, if we include the fact that the U.S. economy is hopelessly insolvent, making these Treasuries near-worthless. First there is the fact that the Federal Reserve is now effectively the only buyer of U.S. debt, and at one point earlier this year was officially buying-up Treasuries faster than the U.S. government was issuing new debt. But that only equates to "monetizing debt" (i.e. a cheque-kiting economy). What makes this a Ponzi-scheme is that all these Treasuries are being purchased with paper simply/literally conjured out of thin air – and not even borrowed into existence, like all the previous $trillions of money-printing. Why is this so significant? When the U.S. dollar went off the "gold standard" (i.e. it was no longer backed by anything), it ceased to be a "unit of value." Instead, with every new USD being borrowed into existence; the U.S. dollar became a "unit of obligation" (i.e. an IOU). Clearly a unit of obligation is inferior to a unit a value, but at least (as an IOU) it can claim some intrinsic value. But that is not the case with all these "QE" dollars being conjured into existence in the U.S. and Europe. What gives this paper value? Nothing at all. These scraps of paper have gone from being an "I-owe-you" to an "I-owe-nothing". They are neither units of value or obligation – simply "units". No different than Monopoly Money. One "unit" comes off a printing press owned by Hasbro. One "unit" comes off of a printing press owned by the Federal Reserve. Both are private corporations. Neither forms of paper have any, possible intrinsic value. The (near-worthless) U.S. Treasuries market is now being totally propped-up with totally worthless paper. But that's only one aspect of the Treasuries market Ponzi-scheme. The other half of this fraud are the artificial interest rates, where the Fed is buying all this worthless paper at the highest prices in history. Why make the Ponzi-scheme so obvious? | ||||||||||||||||||||||||||||||||||||||||||||||||
| This Will Create A Horrific Collapse That Will Shock The World Posted: 30 Sep 2013 09:29 AM PDT  As global stock markets continue to struggle, today a man who has been involved in the financial markets for 50 years warned King World News that an ominous and looming danger "will create a horrific collapse that will shock the world." Below is what John Embry had to say in this powerful interview.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||
| No go on Bank of France gold rumor Posted: 30 Sep 2013 08:24 AM PDT Gold dropped earlier today on rumors that the Bank of France was planning to sell its gold and reversed course after Bloomberg reported that the BoF had no such sale plans. It is now trading again at Friday’s levels. The Bank of France would be well served to keep in mind the plight of former British Prime Minister Gordon Brown who championed the sale of British gold — a fete that was accomplished at market lows and became known in the UK as “Brown’s Folly.” Of course, there are many who would welcome the sale of French gold. It is difficult to locate and acquire large tranches of gold these days. In fact, I would venture a guess that the Chinese would take most, if not all the gold France might want to sell — in exchange for dollars of course, a commodity of which it has ample supply. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Technical Status: Gold, Silver and Much More... Posted: 30 Sep 2013 08:11 AM PDT In response to a subscriber's request, I am pleased to announce the addition of a simple yet helpful new aspect to the NFTRH service that will be of value to subscribers and potential subscribers who do not always have the time or ... Read More... | ||||||||||||||||||||||||||||||||||||||||||||||||
| J. Bradley Jansen: Indian gold as alternative currency Posted: 30 Sep 2013 08:11 AM PDT 11:05p HKT Monday, September 30, 2013 Dear Friend of GATA and Gold: J. Bradley Jansen, director of the Center for Financial Privacy and Human Rights in Washington, notes the presumptuousness of both the Indian government and the financial news media in their considering the Indian people backward for preferring a currency that holds some value to the garbage currency thrust on them by their government. Jansen's commentary is headlined "Indian Gold as Alternative Currency" and it's posted at the Free Banking Internet site here: http://www.freebanking.org/2013/09/24/indian-gold-as-alternative-currenc... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Don't Let Cyprus Happen to You Depositors at the Bank of Cyprus lost 47.5 percent of their savings. So to preserve your wealth, get some of it outside the banking system into physical gold and silver. Worldwide Precious Metals (Canada) Ltd., established in 2001, specializes in physical gold, silver, platinum, and palladium. We offer delivery or secure and fully insured storage outside the banking system in Brinks vaults. We have access to gold and silver from trusted worldwide refineries and suppliers. And when you have an account with us you have immediate access to it for buying and selling your stored bullion. For information on owning physical precious metals in your portfolio, visit us at: www.wwpmc.com. Join GATA here: Louis Boulanger Now Seminar http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 The Silver Summit http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2013 08:10 AM PDT Gold prices drop on Monday ahead of the possible government shutdown, and RJO Futures' Phil Streible tells TheStreet's Joe Deaux why. [[ This is a content summary only. Visit http://goldbasics.blogspot.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||
| China plans to ease gold trade restrictions Posted: 30 Sep 2013 07:35 AM PDT By David Stanway and A. Ananthalakshmi BEIJING -- China's central bank is planning to increase the number of firms allowed to import and export gold and will ease restrictions on individual buyers of the precious metal, according to a draft policy document issued on Monday. The proposed policy change could boost imports by China, which is expected to overtake India this year as the world's top gold consumer, and where gold normally trades at a premium to London spot prices. "If it comes into effect, supply into China could increase and (local) prices could ease depending on demand," said a Hong Kong-based precious metals trader, who declined to be named. ... For the complete story: http://www.reuters.com/article/2013/09/30/china-gold-idUSL4N0HQ15N201309... ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: Louis Boulanger Now Seminar http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 The Silver Summit http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... | ||||||||||||||||||||||||||||||||||||||||||||||||
| Ground Control to Major Tom: Reserves Are in Jeopardy Posted: 30 Sep 2013 07:08 AM PDT Dear Reader, I'm traveling in Peru at the moment, where I've just dodged an earthquake, but got caught up in a massive protest against the government. There was a national strike of transportation and other workers, so the streets of Cuzco were empty, and the trip in from the airport was a breeze—once I got a ride from some friendly policemen. The main square was lined with storm troopers in black body armor (a good number of them female), but the marchers were peaceful, and I didn't get to see any water cannon in use. I'm no fan of the current administration in Lima, so I viewed the protest as more a good than a bad thing, especially as it really had nothing to do with mining. And I enjoyed the large paper-mâché rat with the president's face taped on. At any rate, I've got to dash to inspect a high-grade gold processing facility, so I'll turn this over to Jeff Clark, who provides some insight on the impact of price changes on gold reserves. This is an important issue for investors in the safe-haven metal and related stocks. I also want to remind you that Casey Research Chief Economist Bud Conrad will be a keynote speaker at the Hard Assets Metals & Minerals Conference, November 25-26, in San Francisco, CA. Of course, Bud will be at our own Summit later this week, as will I and the rest of the Casey Brain Trust. I look forward to seeing many of you whom I've had the pleasure of meeting already, and to meeting more of you soon. Sincerely, Louis James
Ground Control to Major Tom: Reserves Are in JeopardyJeff Clark, Senior Precious Metals Analyst When you hear about the "gold reserves" a mining company has in the ground, the natural assumption would be that they're talking about a fixed number of ounces. After all, gold doesn't decay, and neither does it grow legs and move someplace else. But assumptions are dangerous. In fact, industry-wide, reserves are likely to fall fairly significantly in the near future. When the gold price falls, it doesn't just have a short-term impact on producers—slashed earnings and forced write-downs—it can affect the number of economically mineable ounces a company carries on its books, or even what it can mine in the future. The Bar Is HigherReserves are determined by a combination of factors: mostly cutoff grades, metals price assumptions, and projected production costs. For example, based on a gold price of $1,500 per ounce, a project may have economic ore at a cutoff grade of 1 gram per tonne (g/t). But with gold selling in the low $1,300s, that same deposit may now require a higher cutoff grade, say 1.5 g/t, because the revenue earned from mining ore at the previous cutoff would be lower than the cost to extract it—a strategy that, as we all know, doesn't make a great business plan. What Was Once "Ore" Is Now Just DirtHigher cutoff grades reduce the number of economic ounces available for mining, especially if the gold price doesn't recover for a period of time. Here's the average gold price over the past four quarters:
*through September 27 As you can see, that's a fairly significant drop, and it has undoubtedly forced many company executives to revisit the price assumptions that were used to determine reserves. That means many reserves requiring a gold price of $1,350/oz or higher are likely to come off the books. This is the reason high-grade projects have better odds of survival than low-grade ones. Sure, all projects make less money when gold falls, but the higher-grade ones tend to have higher margins and see fewer slowdowns or shutdowns. In many cases, they still make great profits. High GradingHowever, there's another phenomenon at work that will conspire to lower reserves: high grading. Many projects have both low-grade and high-grade zones. When prices fall, a company can mine the richer ore and still make money. It may sound shortsighted, but it can be the right thing to do to stay profitable and be able to survive and advance in a temporarily weak price environment. But it does impact reserves, maybe more than you realize… When metals prices are low and companies focus on high-grade ore, the low-grade material is temporarily bypassed. It's still physically there, but not only is it not economic at lower metals prices, it may never get mined at all. That's because some low-grade ore only "works" when it's mixed with high-grade ore. Even when gold moves back up to the price that the low-grade ore needed to be economic when mixed with the higher-grade ore, it doesn't matter, because the high-grade ore is gone. So it's not just gone legally, as per regulatory definitions of mining reserves, it may be economically gone for good. Miners could return to some of these zones in a very high gold price environment (something north of $2,000), but that's a concern for another day. The point for now is that many of today's low-grade zones can no longer be counted as reserves. Now You See Them, Now You Don'tMost companies update their reserves at year-end and report revisions in the first quarter. If gold doesn't stage a strong rebound soon, the industry will see a significant reduction in mineable reserves. This will have repercussions on the precious metals sector, and on us as investors. As you might suspect, some of it is negative, but it also points to an investment opportunity that we believe will make us a lot of money. Here's what Major Tom radios in about lower reserves and what that means to us investors…
Enter the junior exploration company with a big, high-grade deposit. These companies will become juicy takeover targets, especially if their projects have strong economics at lower gold prices. Once management teams realize they're running low on ore, there will be a mad scramble for this type of asset. Even when gold prices return to prior highs, it will take years for large companies that have cut exploration expenses to bring back all the laid-off geologists, identify and drill new deposits, and develop those that are economic. There will only be one solution, and it will be a pressing one: buy an asset. That's why right now is the best time to buy those juniors that have robust projects with strong economics. And I just bought one… Casey Chief Metals Strategist Louis James recommended an advanced-stage gold exploration play in the current issue of the Casey International Speculator. The company has a large, high-grade deposit in Europe that looks poised to become much larger. I plan to buy the best undervalued juniors now and be patient until the producers come a-calling. A monstrous run-up is coming in the junior sector, and all you have to do to profit is wait for the inevitable to arrive. Reserves are going lower, yes, but we'll be making some money. If you want in on the action, click here to start your risk-free 3-month trial of the International Speculator. | ||||||||||||||||||||||||||||||||||||||||||||||||
| For Struggling Middle Class Families, The Gold Standard Is No Fairy Tale Posted: 30 Sep 2013 07:07 AM PDT 30-Sep (Forbes) — The primary argument being made on the right, in the capital, for the gold standard is its potential to boost creation of abundant good jobs. Only secondarily is it presented as a counter to inflation and nowhere as a means further to privilege the overprivileged. Unlike what Postel implies, few of the serious gold standard proponents are recommending gold as a speculative commodity investment. Most important, virtually all proponents of the gold standard (whether the proponents be the historicist classical or aspirational Austrian) wholeheartedly are committed to the prosperity of workers. [source] PG View: The debate over the gold standard rages on, but for those that believe in the wealth preserving properties and hedging capabilities of the yellow metal, there is no reason not to put yourself on your own gold standard. Note that we too do not recommend gold as a speculative commodity investment. | ||||||||||||||||||||||||||||||||||||||||||||||||
| Developments In Washington Will Drive Precious Metals Prices This Week Posted: 30 Sep 2013 07:01 AM PDT Precious Metals Weekly Market Wrap The prospect of a U.S. government shutdown this Tuesday leading to further turmoil associated with raising the debt ceiling soon thereafter sent investors fleeing from risk assets to safe havens in recent days. Gold was a notable beneficiary of this shift, one that accelerated on Friday [...] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Bulls Raise Wagers Most in Month on Stimulus Posted: 30 Sep 2013 06:21 AM PDT
The net-long position in bullion jumped 12 percent to 78,654 futures and options in the week ended Sept. 24, the most since Aug. 27, U.S. Commodity Futures Trading Commission data show. Long wagers gained 1.8 percent and short bets fell 17 percent, the biggest drop in four weeks. Combined net-long holdings across 18 U.S.-traded commodities climbed 1.7 percent, the first gain in September. Gold rose 9.2 percent this quarter after a slump into a bear market in April spurred sales of coins, jewelry and bars. The Federal Reserve refrained from trimming bond buying this month, surprising investors. The pace of purchases could remain steady at $85 billion a month into January as policy makers wait for more signs of economic recovery, Fed Bank of Chicago President Charles Evans said Sept. 27. Bullion rose 70 percent from December 2008 to June 2011 as the central bank bought debt. "The Fed has made it clear that the economy is weak, and the stimulus spigot will be open full-bore," said John Stephenson, who helps oversee about C$2.7 billion ($2.6 billion) at First Asset Investment Management Inc. in Toronto. "That means they're continuing to inject more into the money supply, and that is a bullish argument for gold." [source] | ||||||||||||||||||||||||||||||||||||||||||||||||
| The Fed’s $700 Billion Magic Trick Posted: 30 Sep 2013 06:00 AM PDT We're closing in on the five year anniversary of the most severe market drop in recent history. From the last week of September 2008 through the beginning of October 2008 the Dow shed over 2,000 points – representing an overall market drop of more than 23%. $700B is a lot of money, but it pales in comparison to what's being spent TODAY. Those were the bad old days. The early innings of a market drop that saw the DOW cut in half. With this epic anniversary in mind, let's not miss the opportunity to take a look in the rearview and measure just what happened in response this 2008's epic market collapse. As usual, we'll also discuss a way to play what we've learned… Back in 2008 and early 2009 when the sky was falling the "stupid-big" number (so big it's stupid) was $700 billion. Back then we were told that a shock and awe bailout would cure the market's woes… after all it was $700 billion! That's a lotta dough! Flash forward five years and that $700B was only the tip of the iceberg. The dough has been rolling for five years and counting. In fact, right now we're about a year into the Fed's third round of quantitative easing (QE) or as we like to call it QE "Infinity." Point being when the latest installment of the Feds’ fix started it was meant to be short-lived. After all, spending $85 billion a month can only last so long, right? Wrongo! Here we are nearly 12 months into QE infinity and we've spent nearly a trillion dollars! It's the government's stealth QE. The one that keeps on taking! Ah and all from the humble beginnings of a $700B bailout. Let's do a little "billions" math…
Needless to say, $700B is a lot of money, but it pales in comparison to what's being spent TODAY. Think of it like this… The Fed could be fixing up 42 Colorado towns a month, building anywhere from 17 to 85 power plants a month, cleaning up a gulf spill PLUS a hurricane disaster per month, or cover two years of Exxon's budget per month. But, alas, the Fed isn't doing anything "real" by my count. Instead the $85B per month goes towards buying bonds and mortgage-backed securities. Okay you get the point. When it comes to "billions" math, the government is spending an ENORMOUS amount of money per month. (At the 5 year anniversary of the market collapse and almost the year anniversary of QE infinity, it's VERY important to take note.) The printed cash is flowing into a black abyss. You and I won't see it, but we're told it's single-handedly helping prop up the economy. I've got to come clean. I did make one error above. The point is, you can't combat the Fed's agenda with rationality. I mistakenly brought forth the idea that Fed spending (if it's to happen at all) could be used more productively. But that was the wrong logic. That is, you can't expect the Fed to do something productive with all of the cash it's printing. Instead that money is quickly being funneled into other government programs and the balance sheet of America's largest banks. It's a grand cover-up. While the market continues to churn the Fed is simply trying to buy more time. They need to get more money to cover up a bunch of big bank's bad decisions (dating back to 2007 and before.) With enough time the Fed's "magic" will indeed work… But at what price does this "magic" come? Oh, what's that? The big banks underwrote a zillion bad loans back in 2007? Wow, and they were all subprime borrowers that never had a chance in hell of paying off their debt? Hmmmm. And here we are five years later still trying to cover over those bad bets – keeping interest rates low to spur the housing market, while also funneling billions directly into mortgage-backed securities. With enough time the Fed's "magic" will indeed work. At some point all of the bad bets that banks made will be a distant memory. Their balance sheets won't be bleeding red and the housing market will be somewhat back to normal. But at what price does this "magic" come? I'm glad you're still with me, because here's the kicker… the price is what any run of the mill contractor would charge – heck it's the same billing philosophy if you're getting new drywall installed in your basement: time and money or T&M for short. It's our T, because here we are five years later and we're still watching the Fed print billions. And it's our M. If you're paying taxes or trying to save your modest wealth, you're on the hook. The great cover up continues and so does the Fed's war on savers. In fact, if there's one takeaway from the last 5 months of Fed Theatre, it's that you can expect the easing to continue – in some form – well into the future. Luckily there are a few conclusions we can make during this battle of attrition.
That said, many of our favorite investments have a bright future ahead. I'm talking about energy and mining plays. Momentum is rolling higher for oil and gas shares – we're truly in the early innings of a massive earth-changing revolution. As U.S. shale plays continue to ramp higher these profitable assets, I say, should hold a strong position in your portfolio. As the Fed prints, producers profit! Momentum isn't as strong for our friends in the mining sector, but don't count the golden age over just yet! Last week while slightly tuning in to a CNBC broadcast I heard the talking heads ask a simple question: which price will an ounce of gold fetch first (from its current price) $1,000 or $2,000? It's a loaded question to be sure. But I don't much care about the short-term answer. So instead of answering which will hit first, I'd pose another question: will gold hit $2,000 in the long-term? The answer is a resounding YES. So whether that happens in the next year or the next five, holding on to your favorite, well-run mining plays will pay off. The five year anniversary of the subprime market meltdown lends us an important lesson: you can't trust your financial future to the Fed. As the Fed Theatre continues to play out – and the printing press hums along – look to your favorite energy and mining plays for profit. (Many of which you'll find right here in these pages!) Keep your boots muddy, Matt Insley P.S. What's funny, while the Fed continues to print there is one little-known government sector that will continue to profit! Recently a leaked set of government documents all but guarantees that one sector will absolutely soar. And if you’re a Daily Resource Hunter subscriber, you had a chance to learn just what sector and, more importantly, what companies stand to make huge gains because of these documents. Don’t miss out on this and other incredible opportunities delivered straight to your inbox every day. Sign up for The Daily Resource Hunter right here. Original article posted on Daily Resource Hunter | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gold gains as U.S. shutdown looms, headed for best qtr in a year Posted: 30 Sep 2013 05:48 AM PDT 30-Sep (Reuters) — Gold edged higher on Monday as a possible U.S. government shutdown prompted safe-haven buying, and the metal was on track to record its best quarter in a year despite a cloudy outlook for U.S. stimulus. Gold has gained nearly 9 percent in July-September, boosted by a big short-covering rally, geopolitical tensions in the Middle East and some weak U.S. economic data. The gains bring to an end gold’s longest quarterly losing streak since 2001 – the metal fell more than 30 percent in the three quarters to June on fears of an early end to the U.S. Federal Reserve’s bond-buying programme. “Gold has behaved like a safe-haven currency of late. The market is pricing in a possible government shutdown,” said Barnabas Gan, an analyst at OCBC Bank in Singapore. [source] | ||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2013 05:45 AM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||
| Gold price in a range of currencies since December 1978 XLS version Posted: 30 Sep 2013 03:39 AM PDT Excel file of gold price charts and data - Updated weekly in 19 curriences: US dollar, Euro, Japanese yen, Pound sterling, Canadian dollar, Swiss franc, Indian rupee, Chinese renmimbi, Turkish lira, Saudi riyal, Indonesian rupiah, UAE dirham, Thai baht, Vietnamese dong, Egyptian pound, Korean won, Russian ruble, South African rand, Australian dollar | ||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Sep 2013 01:26 AM PDT Hi Jim, Am I right in thinking that US government is buying anything in this world other than gold and silver with paper money?! How do you buy junk bonds? Print money. How do you fund Obamacare? Print money. How do you raise debt ceiling? Print money. And the only thing where there is no... Read more » The post Jim’s Mailbox appeared first on Jim Sinclair's Mineset. |
I have been focused on the constant hammering of the gold and silver prices, in the face of news that would be generally construed as extremely bullish. It's been par for the course because it's been going on for over 2 years in the case of gold, and 2 1/2 years in silver.
One does not need to be psychic to know that world's darkest days are right around the corner. There are events which are forming the perfect storm. We face the likely prospect of WWIII in the Middle East. America stands upon the brink of total economic collapse. The mechanisms for a brutal false flag attack have been put into motion and could happen within the next 45 days. The total obliteration of the Constitution is at hand and the legal mechanisms and rules for living in a post-apocalyptic America are clearly in place. On the surface, it appears that America's fate is sealed.
There is a considerable amount of debate in alternative economic circles as to whether a federal government shutdown would be a "good thing" or a "bad thing". Frankly, even I am partially conflicted. I love to read mainstream news stories about how a shutdown in the capital would be "horrible" because Barack Obama might have to reduce the White House cleaning staff and wash his own laundry:
International Speculator
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