Gold World News Flash

SILVER: 4 Cycles in 12 Years
Glass-Steagall? Banking Strikes Gold on Columbus Day
Majority Of People Have No Idea US Is Headed For Disaster
Morgan seen ready to admit almost manipulating a market
There Is No Rule Of Law In The United States Anymore
Gold Hammered!
Jim Rickards predicts how gold price suppression will end
Jim’s Mailbox
The gold mining industry is pretty useless, Grandich laments
Ambrose Evans-Pritchard: Watch what China does with U.S. debt, not what it says
GLD being looted to feed Asian demand, Kaye tells KWN
Gold premiums in India hit a record $100 per ounce
TF Metals Report: Gold price suppression is long-documented history
The Gold Price Held On and Only Lost $3.40 Closing at $1,273
The Gold Price Held On and Only Lost $3.40 Closing at $1,273
Gold Daily and Silver Weekly Charts - Cap, Cap, Cap...
Gold Daily and Silver Weekly Charts - Cap, Cap, Cap...
Fed, BIS not fooling major Asian gold buyers, Kaye tells King World News
Stock Market Appears Ready for New High - What Impact on Gold?
Glass-Steagall? Banking Strikes Gold on Columbus Day
Glass-Steagall? Banking Strikes Gold on Columbus Day
Glass-Steagall? Banking Strikes Gold on Columbus Day
Disappointing Gold Price Hits 3-Month Low on U.S. Debt Limit
Monetary policy? Child’s play
There Is No Rule Of Law In The United States Anymore
The Daily Market Report
Countdown
Japan's New Export: Inflation
Stock Market Appears Ready for New High - What Impact Could It Have on Gold?
There Is No Question That We Are Now In The End Game
Federal Wimps Have Ruined U.S. Credibility
Harmony Gold’s quarterly output up around 12%
Disappointing gold hits 3-month lows
Volatile week ahead for gold – Phillips
Politically inspired uncertainty underlines need for physical gold – Levenstein
Indian demand keeping gold:silver ratio in check
The Peerless way to precious metal profits – Szabo
China calls for dollar to be replaced as global reserve currency – report
Politicians Continue to Bankrupt Nations and Steal from Individuals
Gold Traders cry Conspiracy
Central Banks Gaming Out U.S. Default as Deadline Nears
Gold recouped intraday losses to trade positive on the day as optimism about a budget/debt-ceiling deal fades.
Politically inspired uncertainty underlines need for physical gold – Levenstein
Market Monitor – October 15th
QUEST UPDATE
Gold Prices "Trapped in Downtrend" Say Analysts as Debt-Ceiling Finds Short-Term Fix in Washington
Gold Slides to 3-Month Low as Silver Declines on U.S. Optimism
Poker with Doug Casey
Gold: Challenging its Key Support at 1268

Posted: 15 Oct 2013 11:05 PM PDT

Read the Latest News About: Gold Silver Economy Central Banking During the past 12 years silver prices have bottomed, rallied...

{This is a content summary only. Click on the blog title to continue reading this post, share your comments, browse the website, and more!}

Glass-Steagall? Banking Strikes Gold on Columbus Day

Posted: 15 Oct 2013 10:33 PM PDT

Bullion Vault

Majority Of People Have No Idea US Is Headed For Disaster

Posted: 15 Oct 2013 10:07 PM PDT

As the turmoil in Washington and global markets continues, today a man who has been involved in the financial markets for 50 years warned King World News "the vast majority of people have absolutely no idea what kind of disaster is headed our way." He also had some extraordinary comments about the unprecedented events which are taking place in the gold market. Below is what John Embry had to say in this outstanding interview.

This posting includes an audio/video/photo media file: Download Now

Morgan seen ready to admit almost manipulating a market

Posted: 15 Oct 2013 09:43 PM PDT

JPMorgan Expected to Admit Fault in 'London Whale' Trading Loss

By Ben Protess and Jessica Silver-Greenberg
The New York Times
Tuesday, October 15, 2013

http://dealbook.nytimes.com/2013/10/15/jpmorgan-said-to-reach-deal-with-...

For JPMorgan Chase, fines totaling billions of dollars are no longer sufficient to placate the government. Now the bank's regulators want something stiffer: a mea culpa.

A month after JPMorgan acknowledged that "severe breakdowns" had allowed a group of traders in London to run up $6 billion in losses, the bank has preliminarily reached a rare agreement to admit that the trading blowup itself represented reckless behavior, according to people briefed on the negotiations.

The bank could settle with the Commodity Futures Trading Commission as soon as this week, according to the people briefed on the negotiations, who were not authorized to discuss the private settlement talks. Aside from admitting some wrongdoing, the bank is expected to pay about $100 million to resolve the case, a trading debacle last year that has come to be known as the London Whale episode.

... Dispatch continues below ...

JPMorgan's concession, part of a broader policy shift in Washington that emerged in fits and starts over the last year, is the most aggressive step in reversing a decades-long practice of allowing banks to "neither admit nor deny" wrongdoing. The deal also could set a precedent that potentially exposes a bank to scrutiny -- from the government and from shareholder lawsuits -- whenever it builds a huge trading position that alters the market.

The change in regulators' approach traces in part to criticism that Wall Street misdeeds generated only token settlements that banks could easily afford. When Mary Jo White took over the SEC this year, she outlined a new policy for extracting admissions in certain cases.

For the government, an admission by JPMorgan could provide a template for pursuing other admissions in Wall Street cases. Already, according to people briefed on the matter, the Justice Department is pushing JPMorgan to admit that from 2005 to 2007, it sold mortgage securities to investors without fully warning of the risks.

Yet the regulatory crackdown is not comprehensive. The fine print of JPMorgan's admission -- in both the SEC and CFTC cases -- provides the bank some cover from private litigation. Rather than admitting market manipulation, the bank is expected to acknowledge a series of facts that the CFTC will characterize as "recklessly employing manipulative devices." While it is a small and technical distinction, it could save the bank from an onslaught of shareholder lawsuits.

The bank also won some ground on the breadth of its wrongdoing. It agreed, the people briefed on the negotiations said, to admit wrongdoing stemming from trading on one particular day. The trading commission is likely to refer to other trading in its order against the bank, but JPMorgan is expected to neither admit nor deny wrongdoing in those instances.

The aggressive policy can have repercussions for regulators. If a bank balked at making an admission, for example, it could lead to costly litigation that government agencies can ill afford.

The JPMorgan case nearly highlighted this risk.

The bank, arguing that its trading was legitimate, resisted an admission. And the trading commission drafted a potential lawsuit. Talks reopened in recent weeks, paving the way for the admission.

JPMorgan declined to comment on the settlement talks.

The people briefed on the negotiations cautioned that the settlement could face delays since the government is now shut down. The trading commission is operating with about 30 employees, a fraction of its roughly 700-person staff.

David Meister, the agency's enforcement chief, is among those working. If a settlement emerges in the coming days, it could be his last at the agency. Mr. Meister recently announced plans to depart the agency after overhauling the enforcement unit.

Despite the recent push, the agency had yet to charge a big Wall Street bank over a "manipulative devices" violation. For years, the agency had to prove that a trader intended to manipulate the market, and successfully created artificial prices.

But under Dodd-Frank, the financial regulatory overhaul passed after the crisis, the agency must show only that a trader acted "recklessly." The agency harnessed that new authority to pursue the JPMorgan trading, where it was unclear whether the traders had intended to distort the market. All together, the bank's traders increased their position in a credit derivative index by $34 billion in early 2012, according to a Senate report.

"The commission is trying to flex its muscle under the Dodd-Frank standard and is also going an extra yard to get an admission," said Hugh J. Cadden, a former enforcement official at the CFTC.

The trading commission was the sole holdout in settling London Whale cases. In September, JPMorgan paid $920 million to four other regulatory agencies -- the SEC, the Financial Conduct Authority of Britain, the Federal Reserve, and the Office of the Comptroller of the Currency. The bank also admitted to the SEC that it had violated federal securities laws. The agency, however, continues to investigate the trading loss.

Even before a settlement, federal prosecutors and the Federal Bureau of Investigation in Manhattan have brought criminal charges against two of the traders: Javier Martin-Artajo and Julien Grout, who were accused of covering up the size of their losses. The traders deny wrongdoing. A third trader, Bruno Iksil, sidestepped charges, striking a nonprosecution deal.

As JPMorgan faces a broader wave of scrutiny -- at least seven federal agencies, several state regulators, and two foreign countries are investigating the bank -- its legal bills have mushroomed. On Friday, JPMorgan announced that it would have to set aside $9.2 billion to cover those legal expenses at a cost that led the bank to report its first quarterly loss under Jamie Dimon, its chief executive.

A portion of that money is expected to cover a settlement with the Justice Department over questionable mortgage practices. So far the discussions for that deal have languished, said people familiar with the matter. JPMorgan has offered to pay a roughly $7 billion fine and provide a billion dollars in relief for struggling homeowners, the people said.

* * *

Join GATA here:

Gold Investment Symposium 2013
Luna Park Conference Center, Sydney, Australia
Wednesday-Thursday, October 16-17, 2013

http://gold.symposium.net.au/

The Silver Summit
Davenport Hotel, Spokane, Washington
Thursday-Friday, October 24-25, 2013

http://www.cambridgehouse.com/event/silver-summit-2013

Mines and Money Australia
Melbourne Conference and Exhibition Centre
Tuesday, October 29-Friday, November 1, 2013

http://www.minesandmoney.com/

New Orleans Investment Conference
Sunday-Wednesday, November 10-13, 2013
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana

https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080...

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

ADVERTISEMENT

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

There Is No Rule Of Law In The United States Anymore

Posted: 15 Oct 2013 09:00 PM PDT

from KingWorldNews:

As the turmoil in Washington continues, today a man who has been involved in the financial markets for 50 years told King World News that he believes "There is no rule of law in the United States anymore." He also had some incredibly powerful statements about the collapse that is unfolding in the US. He also discussed how all of this will impact key markets such as gold. Below is what John Embry had to say in this interview.

Embry: "There is no rule of law in the United States anymore. We have these corrupt central planners and they are trying to destroy people. And when I say there is no rule of law, this is particularly true when it comes to financial markets.”

Read More @ KingWorldNews.com

Gold Hammered!

Posted: 15 Oct 2013 08:05 PM PDT

from PastorDowell:

Jim Rickards predicts how gold price suppression will end

Posted: 15 Oct 2013 07:22 PM PDT

1:21p AEST Wednesday, October 16, 2013

Dear Friend of GATA and Gold:

Interviewed by Fabrice Drouin Ristori for the Goldbroker Internet site, fund manager and geopolitical strategist James G. Rickards predicts how the Western central bank gold price suppression scheme will end and what signs likely will precede it. The interview is posted at Goldbroker here:

https://www.goldbroker.com/news/interview-james-rickards-about-central-b...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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Join GATA here:

Gold Investment Symposium 2013
Luna Park Conference Center, Sydney, Australia
Wednesday-Thursday, October 16-17, 2013

http://gold.symposium.net.au/

The Silver Summit
Davenport Hotel, Spokane, Washington
Thursday-Friday, October 24-25, 2013

http://www.cambridgehouse.com/event/silver-summit-2013

Mines and Money Australia
Melbourne Conference and Exhibition Centre
Tuesday, October 29-Friday, November 1, 2013

http://www.minesandmoney.com/

New Orleans Investment Conference
Sunday-Wednesday, November 10-13, 2013
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana

https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080...

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Jim’s Mailbox

Posted: 15 Oct 2013 07:00 PM PDT

Jim Sinclair’s Commentary The latest from Bill Holter at SilverDoctors.com: Isn’t it interesting that "it’s" happening again? "It" being that the GOFO rates which had gone slightly positive for the last month have collapsed again over the last 2-3 days as the price of Gold was forced lower and are nearly negative again. Zerohedge put... Read more »

The post Jim’s Mailbox appeared first on Jim Sinclair's Mineset.

The gold mining industry is pretty useless, Grandich laments

Posted: 15 Oct 2013 06:39 PM PDT

12:41p AEST Wednesday, October 15, 2013

Dear Friend of GATA and Gold:

Market analyst and mining company consultant Peter Grandich today laments the gold mining industry's failure to support GATA.

Grandich writes: "There are forces at work in the paper gold market that effectively have a nuclear arsenal while the good people at GATA (thanks to a gold industry that has cut their nose to spite their faces by neglecting the one group that could do more for them than all their horrible management has done for themselves up to now) have had to counter with pea-shooters (and I'm sorry I haven't done more for them)."

Actually, Grandich has done plenty, even if he's right about the uselessness of most of the gold mining industry. But GATA's objectives go far beyond that industry, and as 1st Samuel teaches, even pea-shooters and the like can have their uses when applied with a little courage:

And David put his hand in his bag, and took thence a stone, and slung it, and smote the Philistine in his forehead, and he fell upon his face to the earth. ... But there was no sword in the hand of David.

Grandich's commentary is posted at his Internet site here:

http://www.grandich.com/2013/10/things-72/

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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Join GATA here:

Gold Investment Symposium 2013
Luna Park Conference Center, Sydney, Australia
Wednesday-Thursday, October 16-17, 2013

http://gold.symposium.net.au/

The Silver Summit
Davenport Hotel, Spokane, Washington
Thursday-Friday, October 24-25, 2013

http://www.cambridgehouse.com/event/silver-summit-2013

Mines and Money Australia
Melbourne Conference and Exhibition Centre
Tuesday, October 29-Friday, November 1, 2013

http://www.minesandmoney.com/

New Orleans Investment Conference
Sunday-Wednesday, November 10-13, 2013
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana

https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080...

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Ambrose Evans-Pritchard: Watch what China does with U.S. debt, not what it says

Posted: 15 Oct 2013 06:19 PM PDT

By Ambrose Evans-Pritchard
The Telegraph, London
Tuesday, October 15, 2013

So much for the hot rhetoric from Beijing questioning the creditworthiness of US debt and consigning the US dollar to the dustbin of history.

The latest data shows that China's foreign reserves soared by $163 billion in the third quarter to $3.66 trillion, one of the biggest jumps ever.

Mark Williams and Qinwei Wang from Capital Economic called the rise "astonishing." They estimate that China's central bank must have bought $70 billion of foreign bonds last month in a frantic bid to hold down the currency.

We won't know for a while where the money went, but a big chunk must have gone into US Treasuries. So bear that in mind when you read the Xinhua claims that the US debt ceiling fight "has again left many nations' tremendous dollar assets in jeopardy and the international community highly agonised."

... For the complete commentary:

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100025792/wa...

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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:

Gold Investment Symposium 2013
Luna Park Conference Center, Sydney, Australia
Wednesday-Thursday, October 16-17, 2013

http://gold.symposium.net.au/

The Silver Summit
Davenport Hotel, Spokane, Washington
Thursday-Friday, October 24-25, 2013

http://www.cambridgehouse.com/event/silver-summit-2013

Mines and Money Australia
Melbourne Conference and Exhibition Centre
Tuesday, October 29-Friday, November 1, 2013

http://www.minesandmoney.com/

New Orleans Investment Conference
Sunday-Wednesday, November 10-13, 2013
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana

https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080...

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

ADVERTISEMENT

How to profit with silver --
and which stocks to buy now

Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million.

Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets.

To learn about this report, please visit:

http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp...

GLD being looted to feed Asian demand, Kaye tells KWN

Posted: 15 Oct 2013 06:12 PM PDT

12:05p AEST Wednesday, October 16, 2013

Dear Friend of GATA and Gold:

Hong Kong-based fund manager William Kaye today tells King World News that the gold exchange-traded fund GLD is being looted to meet gold demand in Asia.

Kaye adds about the recent bombings of the gold market: "When we see all of these massive paper sell orders in thin trading, as Art Cashin was saying to King World News, this is where the most obvious footprints of corruption exist. You just don't see 80 or 90 tons of gold dumped onto the market at odd hours. Suddenly an entity shows up and wants to sell 80 or 90 tons of gold and does it like a monkey at a zoo would probably handle the sell order. No sophisticated entity would sell in this manner. So this manipulative selling has the Fed and the Bank for International Settlements written all over it because they don't care about mark-to-market losses, and they don't need to worry about net capital rules."

An excerpt from the interview is posted at the King World News blog here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/15_T...

Meanwhile Sprott Asset Management's John Embry tells King World News that central planners have destroyed the rule of law in the United States:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/15_T...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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Jim Sinclair Plans Seminar in Washington on Oct. 19

Gold mining entrepreneur and gold advocate Jim Sinclair will hold a seminar with questions and answers on Saturday, October 19, at a hotel at the international airport for Washington, D.C. To register for the seminar and learn more about it, including the discounted rate available at the hotel, please visit Sinclair's Internet site, JSMineSet, here:

http://www.jsmineset.com/qa-session-tickets/

Gold Investment Symposium 2013
Luna Park Conference Center, Sydney, Australia
Wednesday-Thursday, October 16-17, 2013

http://gold.symposium.net.au/

The Silver Summit
Davenport Hotel, Spokane, Washington
Thursday-Friday, October 24-25, 2013

http://www.cambridgehouse.com/event/silver-summit-2013

Mines and Money Australia
Melbourne Conference and Exhibition Centre
Tuesday, October 29-Friday, November 1, 2013

http://www.minesandmoney.com/

New Orleans Investment Conference
Sunday-Wednesday, November 10-13, 2013
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana

https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080...

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

ADVERTISEMENT

How to profit with silver --
and which stocks to buy now

Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million.

Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets.

To learn about this report, please visit:

http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp...

Gold premiums in India hit a record $100 per ounce

Posted: 15 Oct 2013 05:59 PM PDT

From Reuters
via The Times of India, Mumbai
Tuesday, October 15, 2013

MUMBAI -- Gold premiums in India, the world's biggest buyer of the precious metal, hit a record $100 an ounce, about 8 per cent over London prices, on a shortage of supplies to meet festival demand, traders said on Tuesday.

Banks, the primary dealers of bullion, are importing the yellow metal chiefly for exporters, as under the so-called 80/20 principle, jewellery exporters get priority for supplies over domestic manufacturers.

The principle, part of a package of measures announced in July aimed at cutting India's current account deficit by reducing gold imports, states that 20 per cent of all gold imported into India must be re-exported.

... For the full story:

http://timesofindia.indiatimes.com/business/india-business/Gold-premiums...

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How to profit with silver --
and which stocks to buy now

Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million.

Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets.

To learn about this report, please visit:

http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp...

Join GATA here:

Gold Investment Symposium 2013
Luna Park Conference Center, Sydney, Australia
Wednesday-Thursday, October 16-17, 2013

http://gold.symposium.net.au/

The Silver Summit
Davenport Hotel, Spokane, Washington
Thursday-Friday, October 24-25, 2013

http://www.cambridgehouse.com/event/silver-summit-2013

Mines and Money Australia
Melbourne Conference and Exhibition Centre
Tuesday, October 29-Friday, November 1, 2013

http://www.minesandmoney.com/

New Orleans Investment Conference
Sunday-Wednesday, November 10-13, 2013
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana

https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080...

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

http://www.goldrush21.com/order.html

Or by purchasing a colorful GATA T-shirt:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

ADVERTISEMENT

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

TF Metals Report: Gold price suppression is long-documented history

Posted: 15 Oct 2013 05:43 PM PDT

11:41a AEST Wednesday, October 16, 2013

Dear Friend of GATA and Gold:

The TF Metal Report's Turd Ferguson has discovered Ferninand Lips' 2001 book about the long history of gold price suppression by Western central banks, "Gold Wars," which, incidentally, praises GATA.

Ferguson writes: "Many think gold manipulation is a conspiracy theory, only dreamed up in recent years. Those people are wrong and ignorant of history. Instead, gold price control and manipulation is a conspiracy fact and it has been ongoing for over 60 years, since the introduction of the current, dollar-based global currency regime."

Then Ferguson quotes some of that history from "Gold Wars."

"Now," Ferguson writes, "whenever I hear of someone who denies that gold and silver are manipulated, I simply shake my head and turn away as that person is either:

"-- Not aware of or unwilling to consider the documented history.

"-- Knows the history and is aware but instead chooses to deliberately misinform."

Ferguson's commentary is headlined "Gold Wars" and it's posted at the TF Metals Report's Internet site here:

http://www.tfmetalsreport.com/blog/5151/gold-wars

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

The Gold Price Held On and Only Lost $3.40 Closing at $1,273

Posted: 15 Oct 2013 05:09 PM PDT

Gold Price Close Today : 1,273.20
Change : -3.40 or -0.27%

Silver Price Close Today : 21.19
Change : -0.16 or -0.76%

Gold Silver Ratio Today : 60.08
Change : 0.30 or 0.50%

The GOLD PRICE held on and by Comex close had lost only $3.40 to $1,273.00. The SILVER PRICE lost 16.4 cents to 2114.6. But what catches the eye is the aftermarket where the GOLD PRICE is nearly ten bucks higher at $1,281.70 & silver 20 cents higher at 2135c.

I know it sounds like a cheap answer, but all the same I have to suspect the NGM are working overtime to suppress silver & gold prices. Let that go, though. Both are pointing down, and if they break those levels I mentioned yesterday, $1,272 & 2090 cents, they'll tumble sharply for one last leg down. Odd, if they are as weak as all the pointy-toed Wall Street experts claim, that they haven't broken down before now. But what do I know?

I've been bloodied before by these seasons of low prices & corrections, so I know that all a man can do is wait. None of the causes have changed, so the outcome will be silver & gold at WAY higher prices.

For y'all who still believe I am a raving lunatic, something instructive happened this past weekend. A glitch in the yankee government's food stamp computer (food stamps are no longer stamps, but cards like debit cards called EBT) gave buyers unlimited credit. While the glitch lasted, EBT shoppers in Louisiana went wild, stripping the Wal-Mart shelves & charging the goods to their EBT cards. When after two hours the glitch was fixed, those who had not yet checked out with their loot just abandoned full baskets in line and walked away.

Now ask yourself: what if the situation had been less calm? What if the EBT cards no longer worked at all? The incident witnesses that the veneer of civilization in the US is razor thin, liable to crack under any pressure.

With no pleasure but with sharp grief I point this out, just as I keep pointing to the certainty that the government will default, either outright or by inflation. Y'all have two choices: Shake your head, stifle the evidence, & say that will never happen here, or look the facts in the eyes and take appropriate protective action.

Stocks took a bad turn today. Having yesterday & the day before pierced their 20 & 50 day moving averages, their upward momentum ought to have waxed stronger. Instead, it disappeared today. S&P500 merely fell back to its 20 DMA, but the Dow fell through its 50 & 20 DMAs.

The entire stock market advance since last November has been puffed up by clouds of newly created money -- Quantitative Easing. That has spawned a false & unsustainable rally. It could drag on into next year, but when it collapses, 'twill be sudden.

Dow in gold & Dow in silver both turned down today, but remain above their 20 & 50 DMAs. Momentum remains upward.

Thanks be to God, my son Justin & his wife Ellen were blessed with a baby today, Henry. Please pray for her rapid recovery.

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 Held On and Only Lost $3.40 Closing at $1,273

Posted: 15 Oct 2013 05:09 PM PDT

Gold Daily and Silver Weekly Charts - Cap, Cap, Cap...

Posted: 15 Oct 2013 01:44 PM PDT

Gold Daily and Silver Weekly Charts - Cap, Cap, Cap...

Posted: 15 Oct 2013 01:44 PM PDT

Fed, BIS not fooling major Asian gold buyers, Kaye tells King World News

Posted: 15 Oct 2013 01:28 PM PDT

7:24a AEST Wednesday, October 15, 2013

Dear Friend of GATA and Gold:

Hong Kong-based fund manager William Kaye tells King World News that no major Asian buyers of gold are fooled by the efforts of the Federal Reserve and Bank for International Settlements to knock the gold price down to the lows of late June. Instead, Kaye says, the Asian buyers find gold "extremely attractive" below $1,300. An excerpt from Kaye's interview is posted at the King World News blog here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/15_T...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Stock Market Appears Ready for New High - What Impact on Gold?

Posted: 15 Oct 2013 12:41 PM PDT

On Monday, after weekend talks failed to reach a solution that would reopen the federal government and raise the federal borrowing limit by October 17, the S&P 500 Index dropped to its intraday low below 1,700. However, the index reversed course early in the afternoon on a report that President Barack Obama planned to meet with Congressional leaders from both parties at the White House later in the afternoon. According to Reuters, yesterday Senate leaders made progress on a U.S. debt deal. Additionally, today they may reach an agreement to bring a halt to the fiscal standoff. The emerging deal would avoid a potential default, end the 15-day-old government shutdown and change the immediate deadlines in favor of three new ones over the next four months.

Glass-Steagall? Banking Strikes Gold on Columbus Day

Posted: 15 Oct 2013 12:39 PM PDT

Unhappy Columbus Day thoughts as the US bears the cost of the banks losing Glass-Steagall...

COLUMBUS DAY is typically a happy and joyous celebration for Americans wherever they are, writes Miguel Perez-Santalla at BullionVault, not just in the United States, but on all continents.

Inadvertently discovered by Europeans looking for Asia, the mess which resulted has become central to the world community, and critical to its economy. In the last century, and led by American ingenuity, the world has grown much smaller due to technology and improvements in transportation. In this last decade, and again led by North American entrepreneurs, mass communication through use of the internet and the lower costs of regular telephone systems has made the world a much smaller place again.

You would think that North Americans were joyful for their history on Monday, Columbus Day 2013. But sadly there are many that are not happy. The truth is that the great experiment which is the United States of America is starting to falter. The government shutdown is only a symptom which carried into this holiday, pointing to all the deficits of our political and financial system.

This Columbus Day there were protesters against the shutdown, but even more against how the US government and how it is running. It's no longer Democrat versus Republican as the media makes it appear. Both parties have been found untrustworthy in their responsibilities toward protecting their fellow citizens. And the driving force of American wealth and freedom over the last two centuries, the thrifty middle class, are subjected most to taxation and destruction of their economic liberties.

So this Columbus Day an organization known as the LaRouche PAC was out in force trying to get support for their goal. This is to reinstate the Glass–Steagall act under HR 129.

What the Glass-Steagall act would do is what it did for more than six decades before its repeal. This 1930s' piece of US law would ring-fence the deposit areas of banking, so they could only be involved with traditional banking services. Investment banking services on the other hand, such as broker dealers, investment companies, underwriters and investment advisers would be completely separate entities. This is important because it is a structural change and would directly and immediately protect the public sector from any possible malfeasance and conflicts of interest.

In addition I would go as far as to say that we should not have national banks. These giant organizations should be broken back down to independent state banks that may be owned by one parent company. In this way the State banking commissions would have greater power to police the industry. And at that level it would also be more manageable.

There is no doubt in my mind that the current malaise which the US economy continues to suffer is in no small part due to the removal of this important piece of legislation in the late 1990s. It had been created during the time of the Great Depression, along with other changes, aimed at keeping banking in banking, and investment for investors.

America's 21st century crash and depression has also spawned US legislation created to protect the public from banking-led chaos. But Dodd-Frank does not address these issues. In essence, it has changed very little of how the banks operated in the pre-crisis bubble, allowing them to continue down the same path. Most of this new legislation is toward the types of contractual business which banks can engage in. None address the issue of banks being too big to fail. And at this time they can still take regular savings depositors with them if they go bankrupt, not only those interested in investment risk for better returns. In other words, the American people continue to be responsible for the large banks and their possible poor investment scenarios.

Indeed, what Dodd-Frank creates is even worse. Due to the new legislation, the financial jobs that did exist here domestically in the USA, are now being chased offshore. So now not only are the American people still paying for the poor judgment of our government and our bankers in the last two decades, but we are losing jobs to boot.

The government, the Federal Reserve System and the leaders of the major banks in the US are directly responsible for past errors, and for those coming ahead. The reinstitution of Glass-Steagall would be a good first step in the right direction but by no means would it cleanup all problems in our system.

The Federal Reserve System's current agenda is to protect the banking sector at all costs. That is why if you look since the beginning of the crisis in 2008 you will see that banks have come up from under the ashes and have performed better because of free money handed to them through the system. In the end the money is acquired from the public through an invisible form of taxation – the loss of value from their stocks or other holdings in the marketplace, and of course the well hidden devaluation of our currency against other goods.

Without a fundamental change to the way our banking system works we are still open to another crisis. What is historically rare is that, unlike the changes forced by legislation after previous financial crises, we are still exposed to an exact repeat, as banks use depositors' money for higher-risk investments. The government shutdown has no teeth in finding solutions to the real underlying problems of this country. Many Americans are disenfranchised as we continue to see support for the status quo in the banking industry. Without solutions to how our banking system works, all other issues are but mere distractions. They hide the real illness behind the behemoth that has become the federal government bureaucracy.

On Columbus Day I took a call from a prospective customer of BullionVault. She had never bought gold or silver in her life. She stated to me the reason she is going to invest in gold now. "I don't like the way things look in the US. There's too much unemployment and unrest."

With Dodd Frank missing the chance to make structural changes, and instead focusing on increased regulation set to push key services abroad, the banking paradigm has not changed. Now the public is feeling less confident. When there is a lack of confidence there is always one asset which brings some security.

From ancient Mayans to the Conquistadors, from central banks to sovereign wealth funds today, when you buy gold it remains gold, a form of value accepted all over the world and throughout history.

That will not change no matter what financial crisis strikes the Americas next.

Attachments:

larouche-glass-steagal.png

Glass-Steagall? Banking Strikes Gold on Columbus Day

Posted: 15 Oct 2013 12:39 PM PDT

Unhappy Columbus Day thoughts as the US bears the cost of the banks losing Glass-Steagall...

COLUMBUS DAY is typically a happy and joyous celebration for Americans wherever they are, writes Miguel Perez-Santalla at BullionVault, not just in the United States, but on all continents.

So this Columbus Day an organization known as the LaRouche PAC was out in force trying to get support for their goal. This is to reinstate the Glass–Steagall act under HR 129.

From ancient Mayans to the Conquistadors, from central banks to sovereign wealth funds today, when you buy gold it remains gold, a form of value accepted all over the world and throughout history.

That will not change no matter what financial crisis strikes the Americas next.

Attachments:

larouche-glass-steagal.png

Glass-Steagall? Banking Strikes Gold on Columbus Day

Posted: 15 Oct 2013 12:39 PM PDT

Unhappy Columbus Day thoughts as the US bears the cost of the banks losing Glass-Steagall...

COLUMBUS DAY is typically a happy and joyous celebration for Americans wherever they are, writes Miguel Perez-Santalla at BullionVault, not just in the United States, but on all continents.

So this Columbus Day an organization known as the LaRouche PAC was out in force trying to get support for their goal. This is to reinstate the Glass–Steagall act under HR 129.

From ancient Mayans to the Conquistadors, from central banks to sovereign wealth funds today, when you buy gold it remains gold, a form of value accepted all over the world and throughout history.

That will not change no matter what financial crisis strikes the Americas next.

Attachments:

larouche-glass-steagal.png

Disappointing Gold Price Hits 3-Month Low on U.S. Debt Limit

Posted: 15 Oct 2013 12:07 PM PDT

The WHOLESALE price of gold bounced hard Tuesday lunchtime in London from new 3-month lows, regaining $10 per ounce from $1255 as European shares rose but US stock futures pointed lower. The Dollar rose, knocking almost 1 cent off the Euro, as word spread of an apparent US political deal to avert technical default at the debt limit's deadline on Thursday.

Monetary policy? Child’s play

Posted: 15 Oct 2013 11:59 AM PDT

The promise made a century ago that the U.S. central bank would eliminate economic crises is not raised very often. To raise it would question the need for government's most untouchable monopoly. So it is not raised. The Fed is the heart of the economy, we often hear. It is the government's ATM machine. It bails out the big players when the roof caves. It's ridiculous to think the government could "do something" about crises without massive amounts of money at its disposal.

Today, the Fed is stronger than ever as a result of the financial crisis of 2007-2008, the biggest since its other major failures, the artificial boom of the late 1920s and its role in the Great Depression, and the stagflation of the 1970s. The Fed's twin mandates of keeping inflation and unemployment low has been only half-successful. According to one line of thought, the Bernanke Fed's policy of buying close to $1 trillion a year in government debt may be too moderate to ease the pain of unemployment. Fed chairman nominee Janet Yellen said in a speech earlier this year that the 7.3% unemployment rate is really 14.4% when you include part-timers who would prefer full-time positions and discouraged workers who have given up looking for jobs. Since she's expressed concern for workers excluded from the official (lower) unemployment rate, most analysts believe she will keep monetary policy "easy" for the foreseeable future if she's confirmed.

The blessings of easy money

The Fed's distinguishing characteristic is its grant-of-privilege to buy assets with money it doesn't have. No other person or institution can legally do this in the United States. At the very least you might think this would raise eyebrows, but it doesn't except in fringe quarters. It is simply part of modern monetary gospel, never to be examined too closely. Another part of that gospel is fractional reserve banking, wherein commercial banks normally loan money they don't have.

This monetary structure, blessed by all schools of economic analysis except the Austrian school, underlies the global economy.

There's a theory somewhere that says it is literally impossible to buy something with money you don't have. The Fed and other central banks have an answer to that theory: It creates the money in the act of purchasing something, what we might call a monetary deus ex machina. If this isn't clear, imagine a child playing make-believe who simply invents something on the spot to make her fantasy work. When politically-appointed adults who are certified in economics conjure money on the spot it makes the economy work. And it does. If you don't believe it check the profits of the biggest banks. The only problem, seemingly, is the annoying unemployment rate. In the fantasy world of political whim, where economic law is ignored, why not take the next step and let each person print dollars? Unemployment would become an obsolete term. Crimes against property would vanish.

Of course this wouldn't fly because the big guys make the rules, and one of their rules is Thou Shalt Not Print Our Money. Unauthorized currency creation in today's fiat money world is counterfeiting, and governments go after counterfeiters with a vengeance. It's simply a turf issue, as Gary North wrote. Governments regard counterfeiting as a high crime because it competes with its own counterfeiting activities.

Recall that the original purpose of money was to facilitate barter. Money was the most marketable commodity, as Ludwig von Mises wrote over a century ago [pp. 32,33]. People bought it with goods they owned and sold it for other goods they wanted. Money enables trade for people who are both producers and consumers, and allows them to specialize in their preferred occupations.

Government gradually muscled in on the money business, and eventually the paper dollars that had served as claims to deposited gold coins became money itself, by decree. Also by decree the paper dollars were no longer claims to deposited gold coins or anything else. Fiat paper money makes wealth transfers to the government invisible to most people.

Since the price of producing fiat paper money is negligible compared to the price of mining and minting gold, it performed the magic of filling the government's coffers without legislating an unpopular tax increase. It thus became the preferred method of financing wars and buying votes. When money is cheap to produce it also attracts unauthorized producers, from government's enemies as well as its citizens.

The U.S. Secret Service, in fact, was authorized by Lincoln on the day of his assassination, April 14, 1865, and commissioned on July 5th of that year "with the mission of suppressing [the] counterfeiting" of U.S. currency. Following the passage of the Legal Tender Act of 1862, which "mandated that paper money be issued and accepted in lieu of gold and silver coins," unauthorized counterfeiting became a serious problem for the government.   By 1865 between one-third to one-half of all U.S. currency in circulation ("greenbacks") had been produced by someone other than the Union government.

Let the market define money and control its supply

When gold coins circulated as money private citizens, as miners or owners of gold ore, largely determined the growth in the money stock. Market forces determined monetary inflation. When Lincoln forced greenbacks on the economy, only the government could legally control the money supply. Political considerations determined monetary inflation.* For political money to work, all other producers of money had to be eliminated.

The one problem of fiat money from the government's perspective is having it accepted as money, but this is solved through government's defining tool, coercion, along with its vast propaganda apparatus. Hence, the modifier "fiat" in "fiat money."

The distinction made between government issues of money and private issues is of political importance only. It's a matter of cui bono - who benefits. Assuming the private issue is indistinguishable from the public issue in normal, day-to-day transactions, it will circulate as if it were in fact issued by the public authority. Economically, the source of the issue is irrelevant. The privately-issued currency will increase the money supply and redistribute wealth in the same way as the government-issued money.

When a fiat money producer, whether government or private, takes his newly printed money into the market to buy something, he is not offering sellers an economic good in exchange, as he would do in barter. Both the government and private counterfeiter are consuming economic goods without producing economic goods first.   People who take the goods of others at gunpoint are thieves. People who print fiat money and use it to buy things are no less criminal.

But notice this difference: In the first case, we have no trouble identifying the victims as the ones who are robbed. In the fiat - counterfeiting case, the victims are emphatically not the ones who surrender their goods in exchange for money. In the short run at least, they are beneficiaries. Because the whole of society is forced to accept the notes, the first recipients of the new money can spend it at current prices. Only much later are prices affected negatively.

In practice there is a further distinction. Private counterfeiters do not as a rule announce their counterfeiting activities to the public. Their goal is to counterfeit without getting caught. They are likely to spend the new money in such a way that it disperses through the economy undetected. Government too can't announce its counterfeiting to the public. But rather than try to keep it a secret, government calls it monetary policy, and many highly-educated and brilliant people with financial connections to the Fed devote their lives to rationalizing it.

Conclusion

Milton Friedman once wrote that monetary policy under a commodity standard was simple - there is none. [p. 251] The commodity money takes care of itself. It also to a large extent takes care of politics.

*One could argue that it was necessary to print money to pay for a war to free the slaves but this raises many objections, such as how other countries ended slavery without war. Nor did Lincoln invade the South for that purpose. It's also hard to imagine hundreds of thousands of northerners and southerners fighting to the death to free people for whom they had little respect.

There Is No Rule Of Law In The United States Anymore

Posted: 15 Oct 2013 11:34 AM PDT

This posting includes an audio/video/photo media file: Download Now

The Daily Market Report

Posted: 15 Oct 2013 10:43 AM PDT

Gold Inversely Correlated to Debt Deal Hopes

15-Oct (USAGOLD) — Gold extended losses in overseas trading on Wednesday, establishing new three-month lows, amid optimism that a Senate deal to end the shutdown and avert a debt ceiling breach was in the offing. However, enthusiasm dimmed early in the New York session, and all of the intraday losses were erased.

The Senate deal is reported to fund and reopen the government until January 15, while also providing enough debt ceiling clearance to get the country into February. I suppose it’s better than a six-week can kick, but we’ll be right back at this to nonsense to begin the new year.

Of course any Senate deal would have to be approved by the House, and the enthusiasm of GOP leadership was decidedly more tepid. There were also indications that House Republicans would seek to add additional conditions to anything coming out of the Senate. That almost assuredly would return the negotiations to square-one, just two days before Treasury’s x-date of October 17.

Leave it to our representatives to once again take this down to the eleventh-hour, thereby undermining global confidence in the economic superpower, keeper of the world’s reserve currency. This will ultimately end up accelerating the move away from the dollar. The euro yuan swap agreement that Mike wrote about yesterday is just the latest manifestation of that reality.

Yet what seems to get lost in all this is that operating without a budget and consistently adding to the debt burden simply can’t go on forever. We are at this point, because our elected representatives have been unable to come to any reasonable agreement on spending and debt. The best we can hope for is to forestall the debate for another couple weeks or months, but the underlying issues are never resolved.

That my friends is pretty simple — yet compelling — reason to own gold…

Countdown

Posted: 15 Oct 2013 10:18 AM PDT

Given the title of this commentary; it would be understandable if readers mistakenly assumed that this would be more yammering about the nauseating, U.S. Debt-Ceiling Farce. But that is a piece of staged theater, and this is an article about precious metals – and the two subjects have no connection.

Of course one would never realize that fact in reading the pseudo-analysis of the mainstream media. In that fantasy realm; precious metals prices jump higher or lower every time a Republican or Democrat passes wind. This is despite the fact that none of these Drones can articulate how this Farce has any relevance to the gold or silver markets.

Sure, a U.S. debt-default would be "bullish" for precious metals, but so would a million-and-one other things. "All roads lead to higher precious metals prices," not because gold and silver occupy some divine niche in the Universe; but because of the mindless, dead-end economic policies of our Clown Politicians.

Nearly all of the economic problems across the West are caused by too much debt and too much money-printing; yet all the Clowns know how to do to "fix" our economies is to pile-on even more debt, and print-up even more paper. Indeed, what these Clowns have previously called "bail-outs" is where one of these Deadbeat Debtors is given a mountain of new debt, all of which originates out of newly-created banker-paper.

As has been explained many times in the past; with the money-printing and debt now both well past any point-of-no-return, only two outcomes are possible for our economies (and societies) – and one or both of these outcomes must occur in the near future. A familiar chart articulates this better than any words can do.

This is the money-printing which B.S. Bernanke spent six months telling the world he was going to begin to taper. A vertical line. Pedal to the metal. Yet after six (more) months of "crying Wolf"; Bernanke couldn't bring himself to ease off the accelerator even the tiniest degree, warning the world the U.S. economy would collapse if he did so.

The U.S. economy (and with it, the other Western dominoes) has become nothing but a surreal, real-life version of the movie "Speed". It's not going anywhere, but it has to go there as fast as it can – or it will blow up. There are two important differences between "Speed" and the U.S. economy, however.

Japan's New Export: Inflation

Posted: 15 Oct 2013 10:13 AM PDT

The price action of gold has been relatively "tame" recently, despite all the drama and emotional excitement created by the US government shutdown. Read More...

Stock Market Appears Ready for New High - What Impact Could It Have on Gold?

Posted: 15 Oct 2013 09:18 AM PDT

There Is No Question That We Are Now In The End Game

Posted: 15 Oct 2013 09:17 AM PDT

In the aftermath of another takedown in gold and silver, today the man who predicted this downside action ahead of time told King World News "There is absolutely no question that we are now very much in the end game." William Kaye, who is one of the savviest and most well-connected hedge fund managers in the world, also told KWN exactly why the plunge is being orchestrated and what will emerge from all of this. Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in his fascinating interview.

This posting includes an audio/video/photo media file: Download Now

Federal Wimps Have Ruined U.S. Credibility

Posted: 15 Oct 2013 09:08 AM PDT

2013 represents another turning point in the demise of the American Empire. If you view it in economic (rather than ethical or moral) terms, the high water mark of Empire was probably in the late 1990s.

But the Internet bubble and bust marked an important turning point. It coincided with the birth of the euro, a competing reserve currency that no doubt encouraged capital to flow back out of the world’s greatest economic empire. Before the euro come about, the U.S. enjoyed unrivaled capital inflows. It pushed up the value of the (“King”) dollar and inflated equity markets to historic levels.

If you just keep lowering interest rates you’ll end up having a nation full of real estate agents driving around in BMW 3, 5, or 7 Series cars.

From that point on, the U.S. embarked on a desperate strategy of “stimulate and hope”. Fortuitously, China had just joined in the world trade system and needed a leg up. It wanted to peg its currency to the U.S. dollar at a very competitive rate in order to build wealth and savings via a trade surplus.

This benefitted the U.S. because the currency peg policy ensured that government and household deficits would be recycled back into the economy (i.e. by China buying U.S. bonds), keeping interest rates low… low enough to fuel a property boom to take over form the Internet boom (and bust).

But that got out of hand in a major way (as credit booms tend to do) and the subsequent bust in 2008 was disastrous. So you could put 2007 next to 1999 as the second turning point in the demise of the U.S. economic empire.

Now here we are five years later — 2013 — possibly at the cusp of another pivotal year. On the surface it may look like this is all about the current political debacle. But it’s been brewing for years. And it’s been brewing because the only solution the U.S. has to its problems is to go further into debt. It’s a short term expedient, not a solution.

The problems in the developed economies are structural. It’s the structure of the economy that needs changing. But it can’t happen without pain. You can’t have an economy rely on easy money and constant government spending and expect sustainable improvement.

If you just keep lowering interest rates you’ll end up having a nation full of real estate agents driving around in BMW 3, 5, or 7 Series cars.

Lowering interest rates or monetizing debt via quantitative easing (QE) promotes short term bursts of activity, but it ALWAYS requires more. That’s why the post-2007 economic recovery has been so anaemic. There’s too much debt and the global economy is too badly structured to produce anywhere near historic rates of growth.

Writing in The New York Times, Stephen D. King (Chief Economist of HSBC) tells us:

“We are reaching end times for Western affluence. Between 2000 and 2007, ahead of the Great Recession, the United States economy grew at a meager average of about 2.4% a year — a full percentage point below the 3.4% average of the 1980s and 1990s. From 2007 to 2012, annual growth amounted to just 0.8%. In Europe, as is well known, the situation is even worse. Both sides of the North Atlantic have already succumbed to a Japan-style ‘lost decade.’”

Yes, economic growth rates are grinding lower as we come to rely more and more on monetary policy to do the heavy lifting. This will only continue while weak politicians look to the Fed or other central banks to “do something.”

Speaking of growth, the IMF forecasts global economic growth of just 2.9% this year, the weakest rate of growth since 2009. It also downgraded Australian economic growth forecasts from typically over-optimistic levels of 3% and 3.3% for 2013 and 2014 respectively, to 2.5% and 2.8%.

The IMF also points out that the Aussie economy has greater exposure to China than any other economy in the world — bar Mongolia, which shares a long border with the Middle Kingdom.

That’s not surprising, given around 35% of our exports go to China. And China’s got its own credit boom and resultant structural problems going on, so the bounty we have enjoyed over the past decade certainly won’t be replicated over the next 10 years.

If borrowing costs continue to rise, soon the U.S. will spend $500 billion per year on simply servicing its debt.

Meanwhile, over at the APEC summit in Bali, we saw a rather humorous representation of the decline of the American Empire. President Obama couldn’t attend the summit, given he is stuck in Washington trying to avert a technical default on the nation’s huge debt levels.

It was Russian President Putin’s birthday, so Indonesian President and summit host Yudhoyono cranked out the guitar and played happy birthday, much to the delight of Chinese President Xi Jinping. So, it seems everyone was partying except Obama.

It’s probably not much of an analogy. But it goes to show, when you’re the world’s biggest debtor you can’t just close up shop and go to the pub whenever you feel like it. You’ve got to make sure the money keeps coming in… because there are bills to pay and you can only pay those bills if the money keeps rolling in.

The bond market wasn’t too perturbed by the U.S. debt issues. At the long end of the curve it’s certainly not. But at the shorter end it’s a different story. Bloomberg has the story:

“Treasury one-month bill rates surged to the highest since 2008 and yields on three-year notes rose as the U.S. sold $30 billion of the debt in the first auction of coupon securities since the start of the government shutdown.

“The Treasury sold $30 billion of one-month bills at a rate of 0.35%, the highest since November 2008 and more than double the rate on comparable one-month securities yesterday.”

While it’s still unlikely at this stage, U.S. debt dynamics could get very ugly, very quickly. In the fiscal year 2013 the Treasury had to redeem (refinance) a record $7.55 trillion in debt, largely because of the large amount of maturing short term debt.

In order to refinance that amount and pay for all its promises, it had to issue a massive US$8.32 trillion of debt, spanning short and long term duration. That’s quite a supply of paper the world has to digest.

This refinancing schedule will become a problem if short term rates continue to remain high. That’s because higher interest debt will replace very low yielding debt, which will put further pressure on the U.S.’s debt servicing costs.

According to the latest Fed’s “Flow of Funds” report, interest payments in the second quarter jumped 13.5% to $438 billion (annualised). In nominal terms, that’s a record amount. If borrowing costs to continue to rise, soon the U.S. will spend $500 billion per year on simply servicing its debt.

That’s a lot of “cash” flowing to the recipients. But the same creditors finance it anyway… it’s all just shuffling paper around. More importantly, it represents another major drain on the imperial credit line. In effect, the U.S. is asking for credit to pay the cost of the credit it’s already drawn down on.

Yep, it’s all about credit and credibility. Cash in your previously earned credit and hope for the best. But at the rate things are going, a few more years of this and the U.S. will have little credibility left. Once your credibility is gone, so is the money.

Regards,

Greg Canavan
for The Daily Reckoning

Ed. Note: Whether you agree with Greg or not, the question remains… What do I do with my money? No matter what happens to the US economy, there will always be a place to safeguard your wealth from the increasingly parasitic US government. That’s why it’s so important to stay in tune with the best information possible. And that means listening to voices outside the mainstream, on the fringes, free of government influence. The Laissez Faire Today email edition is a great place to start. You can sign up for FREE, right here.

Original article posted on Laissez Faire Today

Harmony Gold’s quarterly output up around 12%

Posted: 15 Oct 2013 08:45 AM PDT

The South African gold producer said Tuesday its July-September production likely increased by 12% from the previous quarter.

Disappointing gold hits 3-month lows

Posted: 15 Oct 2013 08:45 AM PDT

The gold price bounced hard Tuesday from new 3-month lows, as European shares rose but US stock futures pointed lower.

Volatile week ahead for gold – Phillips

Posted: 15 Oct 2013 08:45 AM PDT

There remains no default premium for the gold price, argues Julian Phillips, but says it is only a matter of time before Chinese demand reaches the market and impacts the gold price.

Politically inspired uncertainty underlines need for physical gold – Levenstein

Posted: 15 Oct 2013 08:45 AM PDT

Gold's' recent upward momentum has been thwarted for now, writes David Levenstein, arguing that further sideways but volatile action in the gold market should be expected in the short-term.

Indian demand keeping gold:silver ratio in check

Posted: 15 Oct 2013 08:45 AM PDT

The huge demand for silver in India in the light of the government's specific crackdown on gold is helping the gold:silver ratio stay at levels it might not have managed in times past.

The Peerless way to precious metal profits – Szabo

Posted: 15 Oct 2013 08:45 AM PDT

Tom Szabo does not believe that you can judge all gold companies the same, rather he uses the Peerless concept to rank companies qualitatively. An interview with The Gold Report.

China calls for dollar to be replaced as global reserve currency – report

Posted: 15 Oct 2013 08:45 AM PDT

Upset that the US fiscal impasse threatens to trigger a debt default, Beijing suggests ‘building a de-Americanized world.’

Politicians Continue to Bankrupt Nations and Steal from Individuals

Posted: 15 Oct 2013 08:43 AM PDT

After bouncing off three-month lows on Monday, gold prices have dipped today, giving back a small part of the prior session's gains despite the persistent cloud of uncertainty that has settled over Washington.

Over the weekend, the president of the World Bank, Jim Yong Kim, warned the United States was just “days away” from causing a global economic disaster unless politicians come up with a plan to raise the nation’s debt limit and avoid default.

“We’re now five days away from a very dangerous moment. I urge U.S. policymakers to quickly come to a resolution before they reach the debt ceiling deadline…Inaction could result in interest rates rising, confidence falling and growth slowing,” World Bank President Jim Yong Kim said in a briefing following a meeting of the bank’s Development Committee.

“If this comes to pass, it could be a disastrous event for the developing world, and that will in turn greatly hurt developed economies as well,” he said.

Yet, despite the continuing political wrangling in Washington over the U.S. government shutdown and the debt ceiling, which one would expect to lower the value of the US dollar, the gold price has been under some selling pressure. And, last week the general sentiment toward gold was largely negative, with some investment banks like Goldman Sachs and Morgan Stanley issuing bearish views on gold's outlook.

According to Jeffrey Currie head of commodities research at Goldman Sachs Group Inc.'s gold, is a "slam dunk" sell for next year because the U.S economy will extend its recovery after lawmakers resolve stalemates over the nation's budget and debt ceiling.

The bank has a target for gold prices next year at $1,050 an ounce, Currie, Goldman Sachs's head of commodities research, said last week in London. The precious metal has tumbled 21% this year to $1,322.28 an ounce on speculation that the US Federal Reserve would reduce its $85 billion monthly bond-buying program, known as quantitative easing, as the economy recovers. Lawmakers probably will reach an agreement on raising the debt ceiling before the Oct. 17 deadline, Currie said.

"Once we get past this stalemate in Washington, precious metals are a slam dunk sell at that point," Currie said. "You have to argue that with significant recovery in the U.S., tapering of QE should put downward pressure on gold prices."

Currie and Ric Deverell, the head of commodities research at Credit Suisse AG, both said on a panel at the Commodities Week conference in London that selling gold is their top recommendation for trading in raw materials in the next year.

I completely disagree. Even if the issue of the US debt ceiling is resolved, the fact remains that there is simply far too much debt in the global financial system. And, while bankers and politicians may be able to "kick the can down the road," at some point, something has to give… and it is not going to be the price of gold!

The price of gold lost $25 in two minutes on Friday morning as "someone" decided to dump 800,000 ounces of notional gold into the London Fix (or COMEX open). In the space of 4 minutes, “someone” sold a whopping 2 million ounces of gold in one trade into the gold futures markets sending the price of gold to 3-month lows.

The order was so big, then, that gold was automatically halted in the middle of the order being filled.

The CME Group confirmed the halt. “We had what we call a stop logic event, which is a momentary pause in trading.” CME Group spokesman Chris Grams told CNBC.com. He noted that the halt started at 8:42:26 EDT, and trading resumed at 8:42:36. “All trades stand, and our technology performed as designed,” he said.

Usually, when a seller has a sizable amount to sell, he tries to get the best possible price by off-loading parts of the total quantity during a period of time. But, in an action which we are now fully accustomed to, when it comes to gold the seller is simply determined to manipulate prices by slamming the bid until there are no buyers left. It used to occur just before close of trading, an illegal practice known as “banging the close.” However, now it appears that much of this selling happens soon after the opening of Comex. Yet, the CFTC constantly turns a blind eye to this action.

While the CFTC deny that there is any manipulation of prices in the gold markets, there is enough evidence to the contrary. And, Friday's action is simply another example of this on-going price suppression of gold prices. It is now becoming more evident that Western central banks and the U.S. government in particular — the Federal Reserve and Treasury Department are involved in this action as they remain determined to support the U.S. dollar and maintain the current global fiat currency system.

While the Fed does not intervene directly in the market, it operates through two primary ‘agent’ banks. These bullion banks in turn time naked short gold sales in the futures market to coordinate what the Fed is doing in the more opaque foreign exchange markets.

This sale of gold futures contracts creates an artificial supply of gold which will never be delivered. However, the quantity sold has the effect of pushing prices lower. This is exactly what the Fed wants especially when the US dollar comes under attack. The Fed then tries to create the illusion that gold prices are falling against a weaker dollar and thereby undermine investors' confidence in the yellow metal. The reason for this is that gold remains a benchmark for the US dollar. If the dollar were to collapse, the prices of gold would surge. So, these bankers have to trick individuals around the world into believing that everything is just fine. What is even more outrageous is the measures these banks will go to in order to create this illusion. Recently, the Fed's number one 'agent bank,' Goldman Sachs, was up to their old tricks again – advising clients to 'sell gold.' But, while they encourage clients to sell, I would not be surprised in the least that in reality what they are doing is probably looking to go long in gold and that they actually need fresh supply to come in to cover their short positions.

Meanwhile, many gold traders have opted to remain on the side-lines to avoid being caught in a volatile price move, while others said they expect this week's weakness to continue, especially after Friday's sell-off.

Global finance chiefs have criticised the U.S. for the political gridlock they identified as the biggest threat to the world's economy and financial markets.

As these policy makers arrived in Washington for the annual meetings of the International Monetary Fund and World Bank, many expressed their concern that failure by U.S. lawmakers to end a government shutdown and raise the nation's debt ceiling could trigger a default.

The lack of resolution would have "very negative consequences for the U.S. economy and spill-over effects which mean negative consequences for the rest of the world," IMF Managing Director Christine Lagarde told Bloomberg Television in a recent interview on "Surveillance" with Tome Keene. "It could precipitate another crisis if it was to last longer."

If the standoff persists "it is probably safe to say that this could cause severe damage to the U.S. economy and the world," European Central Bank President Mario Draghi said. "The world still does not believe that the United States will not find a way out.

Both Lagarde and U.S. Treasury Secretary Jacob J. Lew warned that the political impasse could sap the safe-haven status of U.S. assets.

"The world actually counts on us being responsible," Lew told the Senate Finance Committee, as he cautioned that the spat is "beginning to stress the financial markets."

Lagarde said the U.S. should be wary that it is "not damaged because of what is going on" and also welcomed the proposal to buy more time.

A U.S. debt default in the event that a politically divided Congress fails to raise the federal borrowing limit would imperil the entire global economic recovery, a senior International Monetary Fund official warned Wednesday.

But Jose Vinals, the IMF's financial counsellor, said he sees the actual risk of such a default as very low.

"It would be a worldwide shock," Vinals told a Washington news conference, at which the IMF released its Global Financial Stability Report.

"This is something that would have very significant repercussions on financial markets around the world, not just on the United States," Vinals said. "So let's hope that we never get there."

A report was released ahead of the IMF and World Bank's annual meeting which began last week. The IMF said that the partial U.S. government shutdown, now in its second week, is adding to uncertainty about the still-fragile global economic recovery.

"While the damage to the U.S. economy from a short shutdown is likely to be limited, a longer shutdown could be quite harmful," the report said. "And even more importantly, a failure to promptly raise the debt ceiling, leading to a U.S. selective default, could seriously damage the global economy and financial system."

On Saturday, the president of the World Bank warned the United States was just “days away” from causing a global economic disaster unless politicians come up with a plan to raise the nation’s debt limit and avoid default.

“If this comes to pass, it could be a disastrous event for the developing world, and that will in turn

Premier Li Keqiang yesterday told Secretary of State John Kerry that China was paying "great attention" to the U.S. debt ceiling, the official Xinhua News Agency reported today. China is the largest foreign owner of U.S. Treasuries, with $1.28 trillion worth of them at the end of July.

"The market doesn't like uncertainties," Yi Gang, deputy governor of China's central bank, said in Washington. "They watch this drama very closely."

China is “naturally concerned about the developments in the U.S. fiscal cliff,” the Asian country’s vice finance minister Zhu Guangyao said in a statement.

If the U.S. fails to raise the debt ceiling, the government could run out of cash… Meaning China – and the rest of the world – won’t receive its interest payments.

“We hope the United States fully understands the lessons of history,” Zhu said, referring to the last government deadlock in 2011, which led, in part, to the U.S. losing its triple-A credit rating.

China isn’t the only country pressuring the U.S. to get its act together. Japan, the country’s second-largest creditor, is also worried the value of its $1 trillion investment in U.S. Treasuries could plummet if there is no agreement on the debt ceiling.

“The U.S. must avoid a situation where it cannot pay and it's triple-A ranking plunges all of a sudden,” Japanese finance minister Taro Aso said at a press conference. “The U.S. must be fully aware that if that happens, the U.S. would fall into fiscal crisis.”

The actions of US politicians have bolstered China's resolve to lessen the world’s reliance on the dollar, according to current and former Chinese government advisers.

“You can’t hijack the global economy through political struggles. It’s not responsible,” says Yu Yongding, a member of the Chinese Academy of Social Sciences, a leading government think-tank.

“We are angry but are not panicked. The consequences are bad for the reputation of the US because the credibility of debt is so important,” says Mr Yu, who is also a former adviser to the central bank’s monetary policy committee.

“We need to continue to diversify. Even without this latest debt debate, it would still be necessary to diversify,” says Zhu Baoliang, an economist in the State Information Center, a research unit of the National Development and Reform Commission, a powerful planning agency.

As the storm clouds gathered over Washington on Thursday, Beijing made another small move to increase the international use of the renminbi, signing a swap agreement with the European Central Bank.

Now that Janet Yellen has been named to lead the Federal Reserve the global financial markets should factor out any possibility that the Fed will diminish their Quantitative easing program anytime soon. In fact, there is a good chance that the QE program is more likely to be perpetuated and expanded.

While there are investors stupid enough to believe that debt issued by the world's largest debtor country (i.e. US Treasuries) should be treated as a risk-free asset they are obviously not concerned about the value of money. Yes, the Fed can expand its balance sheet indefinitely beyond the $3 trillion they have already conjured out of nowhere. The world need not fear a shortage of dollars.

But in real terms, that's precisely the point. The Fed can control the supply of dollars, but it cannot control their value on the foreign exchanges.

Until, fiscal and monetary discipline and sanity returns to the US and the world, gold will continue to be bought by prudent individuals in order to hedge the continuing debasement of paper currencies.

Personally, I am certain that some type of cosmetic deal will be reached soon and it will be back to business as usual. The U.S. Debt Ceiling will be raised once again. It will be the 18th raise in the debt limit in 20 years. Raising the limit will happen and continuing imprudent fiscal and monetary policies in the U.S. are likely to lead to higher interest rates which will have dire consequences for the U.S. economy and indeed the global economy.

Another increase in the debt ceiling will allow U.S. politicians to continue spending which will lead to a further loss in confidence as well as the value of the U.S. dollar. And, as this happens the price of gold will go much higher. While politicians continue to bankrupt nations and steal from individuals, I recommend that you own some physical gold and silver.

Technical picture

gold price 14 october 2013 economy

Gold's' recent upward momentum has been thwarted for now, and I expect to see more sideways but volatile action in the short-term.

About the author: David Levenstein is a leading expert on investing in precious metals . Although he began trading silver through the LME in 1980, over the years he has dealt with gold, silver, platinum and palladium. He has traded and invested in bullion, bullion coins, mining shares, exchange traded funds, as well as futures for his personal account as well as for clients. For more information go to www.lakeshoretrading.co.za

Gold Traders cry Conspiracy

Posted: 15 Oct 2013 07:43 AM PDT

Gold lost $25 in two minutes on Friday morning, as the gold market experience a massive surge in volume that triggered a halt in the middle of the plunge. The move took gold down to a three-month...

[[ 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! ]]

Central Banks Gaming Out U.S. Default as Deadline Nears

Posted: 15 Oct 2013 07:24 AM PDT

15-Oct (Bloomberg) — Central banks have begun making contingency plans on how they would keep financial markets working if the U.S. defaults on the world's benchmark debt.

Policy makers discussed possible responses when they met at the International Monetary Fund's annual meetings in Washington over the weekend, said officials who spoke on condition of anonymity because the talks were confidential. The discussions continued as policy makers headed home.

…The initial response from the world's central banks would likely echo their actions after the collapse of Lehman Brothers Holdings Inc. in 2008. Back then, policy makers pledged they would provide ample liquidity, eased the collateral they lent against and boosted dollar swap lines with each other to ensure supply of the currency.

[source]

PG View: Flood the system with liquidity is always the answer… When all you have is a hammer, everything looks like a nail.

Gold recouped intraday losses to trade positive on the day as optimism about a budget/debt-ceiling deal fades.

Posted: 15 Oct 2013 07:17 AM PDT

Politically inspired uncertainty underlines need for physical gold – Levenstein

Posted: 15 Oct 2013 07:14 AM PDT

…Even if the issue of the US debt ceiling is resolved, the fact remains that there is simply far too much debt in the global financial system. And, while bankers and politicians may be able to "kick the can down the road," at some point, something has to give… and it is not going to be the price of gold!

[source]

Market Monitor – October 15th

Posted: 15 Oct 2013 07:02 AM PDT

Top Market Stories For October 15th, 2013: China Enjoying Gold Clearance Sale - John Rubino Through The Looking Glass - Jesse's Cafe Cool Video On How Silver Coins Are Designed/Made - Gold Silver Starved of gold, Indians may import record volumes of silver - Reuters Moscow Exchange Plans Gold to Silver Trading to

QUEST UPDATE

Posted: 15 Oct 2013 06:41 AM PDT

We're chipping away at the Quest portfolio. Current total $2655. Up almost 900%.

This got a lot tougher once it became apparent gold's intermediate cycle turned down.

Making money on the short side is much harder than on the long. Markets go down differently than they go up.

Gold Prices "Trapped in Downtrend" Say Analysts as Debt-Ceiling Finds Short-Term Fix in Washington

Posted: 15 Oct 2013 06:18 AM PDT

GOLD PRICES bounced hard from new 3-month lows hit mid-morning in London on Tuesday, recovering $10 per ounce from $1255 as European shares rose but US stock futures pointed lower.

The Dollar rose, knocking almost 1 cent off the Euro, as word spread of an apparent US political deal to avert technical default at the debt ceiling's deadline on Thursday.

The proposal would extend government funding to January, with an interim hike in the $16.7 trillion debt ceiling, according to reports.

US bond prices edged lower, however, nudging interest rates up.

Silver mapped and extended the action in gold prices, dropping almost 3% before climbing back to $21.01 per ounce.

"Most disappointing" about gold prices, says a note from brokers INTL FCStone, "is the fact that the precious metal has hardly managed to stage any kind of rally, even when the outlook for the US budget and debt ceiling negotiations was at its bleakest.

"Now that an imminent resolution seems to be in the offing...the prospects for a further advance look all the more questionable."

Looking at trading action in gold prices, "What is evident," says one Singapore dealing desk in a note, "is that gold remains trapped in a bearish trend."

"Gold market bears have the technical advantage," agrees Indian dealers and jewelry chain Riddisiddhi Bullions . "A seven-week- old downtrend is in place" in the price.

Indian gold prices also slipped Tuesday to new 3-month lows as the Rupee recovered further from September's all-time record lows on the currency market.

Legal exports of gold bullion to India from Dubai fell nearly one-fifth by value over the first 8 months of the year, new data from the Arab emirate's Chamber of Commerce said at the weekend, dropping to the equivalent of $815 million.

Following rumors of gold deposit banking products, aimed at "mobilizing" existing Indian gold holdings to meet new consumer demand, Reuters today said the central bank is about to launch savings certificates linked to changes in India's inflation rate.

This retail investing offer is part of a move announced in May to raise $2.4 billion using inflation-linked bonds. It's also part of the Indian government's "continued bid to encourage households to diversify away from gold," Reuters says, citing official sources.

Consumer price inflation in India rose in September to a 7-month of 9.8% per year. The best bank interest rate currently offered is 10.1% for 16-month deposits, according to MoneyControl data.

Speaking in Washington yesterday, "[India] can pay three-fourths of its debt from its forex reserves," said Raghuram Rajan, governor of the Reserve Bank of India.

Stressing that India has no need of IMF support to strengthen its reserves or boost the Rupee, and referring to private gold consumption, "We [as a nation] bought over $60 billion gold last year," said Rajan.

"$60 billion accounts for three-fourth of our current account deficit. If the push comes to shove, we can pay the world in gold."

Gold dealers in China have meantime "been a reasonable buyer of late," says a note from MKS Capital, a division of the Swiss-based refining and finance group, pointing to a rise in Shanghai Gold Exchange's gold prices to $19 above London's benchmark.

"But the more progress made [in US debt ceiling talks], the more pressure is applied to gold. Investors are becoming increasingly worried about gold's long term stance as an investment product."

Talking about gold prices on Monday with Bloomberg, "I think between $1200 and $1250 it's getting into a buying range," said Swiss money manager and now Asia-based author Marc Faber of the Gloom, Boom & Doom Report.

"The sentiment about gold is very negative. But if you look at everything considered, [there is] monetization of the US debt, and the debt ceiling sooner or later will be increased.

"Because both Democrats and Republicans are big, big spenders."

Gold Slides to 3-Month Low as Silver Declines on U.S. Optimism

Posted: 15 Oct 2013 05:57 AM PDT

15-Oct (USAGOLD) — Gold dropped to a three-month low in New York on optimism Senate leaders will forge a deal to reopen the U.S. government and avoid a breach of the debt limit. Silver slipped to the lowest in two months.

Senate Majority Leader Harry Reid said yesterday he hoped a deal could be announced today. The emerging deal would stave off a potential default, end the 15-day-old government shutdown and change the immediate deadlines in favor of three new ones over the next four months. Without an agreement, U.S. borrowing authority lapses on Oct. 17.

…"Markets generally still believe that an extension to the debt ceiling, or at least a resolution that buys more time, is highly likely," Tom Kendall, an analyst at Credit Suisse Group AG in London, wrote today in a report. "It may be that markets have underestimated the risks of a U.S. default, but unless there is a realistic prospect that bills will not be honored, it seems that gold is likely to remain within its downward trend."

[source]

Poker with Doug Casey

Posted: 15 Oct 2013 05:49 AM PDT

Some say, for good reason, that speculating in the junior resource sector is like gambling in a casino. I don't disagree with that statement, but there's one huge difference between the two: on the stock exchange, you can tilt the odds in your favor.

How? By following the right people in the sector.

We had a great collection of people at the Casey Summit in sunny Tucson, Arizona, that just concluded last week. Even though we've had many fantastic Summits over the years, this one was hands-down the best one so far. From Ron Paul to Don Coxe, the list of interesting speakers and the way the attendees could get access to them were next to none. If you weren't able to be at the conference, I highly recommend the Summit Audio Collection, a full recording of the entire Summit.

This conference was extra special for me, due to the impromptu Texas Hold 'em tournament late Saturday night. After Ron Paul's talk, thanks to the incredible Casey staff who organized the Summit, a small group including Doug Casey were able to get a room with our own private bartender… and began our night of cards.

Though the buy-in was not intimidating, the pot was more than enough to take the wife on a good shopping spree. As we rounded up our players, John Mauldin, the best-dressed man at the conference, had to bail on us at the last minute. His assistant told me that he had to attend an important meeting with a representative of brewer Dos Equis, which has been approaching John to become the brand's "Most Interesting Man in the World" spokesperson.

We then tried to get Ron Paul to play. He declined, but shared an interesting tidbit with us: that he helped put poker tournaments on national television. Now every time I see an exciting instant replay of an ace turned on the river, I will know whom to thank.

The game itself was fun—but far less important than the personalities that were in the game. The table was crowded with extremely smart people, most of whom have been serially successful in the junior industry.

Sitting across from me was my good friend Keith Hill, president, CEO, and director of Africa Oil, whose predictions for oil you can hear on our Summit panel "The Myth of American Energy Independence." Keith's exploits with various Lundin Group companies have taken him everywhere from the frozen lands of the Russian tundra to the plains of East Africa to look for oil. Having him at the table was a treat for all of us, and I learned long ago that you never bet against Keith, so I knew it was going to be a fun game.

Beside him sat Nolan Watson, a member of our Casey NexTen list. In 2006, when Nolan became the CFO of Silver Wheaton, the largest silver streaming company in the world and worth billions of dollars, he was only 26 years old. He's one of the most knowledgeable people on the planet when it comes to resource royalty deals and could easily hold his own in negotiations with any of the major mining companies.

To the other side of Keith sat Amir Adnani, president, CEO, and director of Uranium Energy Corp. Amir, who's also featured in our NexTen, is a member of our Casey Ten-Bagger Club (that means his company has handed our subscribers a +1,000% return). He refused to play, but said he wanted to watch. His reasoning was that he had assessed the situation and believed that the rest of us were better poker players than he… and he only takes on endeavors where he feels he has a strategic advantage. Amir is definitely one to pick his battles carefully, which shows in his business strategy as well.

To my right was Brian Hunt, one of the brainchildren and stars of Stansberry Research… and beside him Doug Casey, probably the most experienced poker player you could come across in the natural-resource sector. Needless to say, the poker game was extremely intense and fast-paced: half of the original players were already out after the first hour.

I managed to take Keith's pot after another grueling 45 minutes, and only four of us were left: Nolan, I, Jordan Trimble, president and CEO of Skyharbour Resources, and Tim Termuende, head of Eagle Plains Resources. I know both Jordan and Tim very well, but I had never played poker against them—and I'd failed to pay enough attention to their habits throughout the night—which I later realized to be a huge mistake.

The pot was building, and Jordan unexpectedly went all in. Nolan folded, and I was suddenly lost and had no idea what to do. With so much capital committed, I didn't fold and called. To my dismay, Jordan had the better hand, doubled his pot, and put me on the back foot.

I did end up clawing back for third and getting my money back, but more than anything, this poker game was a great investment lesson for me:

Like poker, investing is about knowledge. The reason why I panicked when Jordan went all in was that I didn't know his habits. Similarly, by getting really familiar with a few companies, we are able to feel their "pulse" and analyze everything from their trading pattern to the probability of success on their next drill well.

You can't throw good money after bad—my biggest mistake came from my one mental lapse in the night: "I have too much committed to fold." In the junior market, where failures happen on a daily basis, you have to be able to pull your remaining capital out to fight another day.

And the most important lesson of all: Casey Research knows a lot of serially successful individuals whom we honor in our NexTen as well as our Explorers' League. We may not have all the answers in the resource market—but we're always just one phone call away from someone who does.

Whether investing takes too much time out of your busy day or it just flat out intimidates you—we are here to help. And right now the best compilation of our own, practical investment advice and the supreme knowledge of people like Dr. Lacy Hunt, James Rickards, and Don Coxe is available on CD and MP3. You can still pre-order the Summit Audio Collection for a $100 discount, but only until the CDs are produced and ready to ship… so I suggest you don't wait.

With a blue-ribbon faculty of 37 experts, including your team of Casey analysts dedicated to finding the "pulse" of the market, you can tilt the odds in your favor.

So what do you say? Is it time to beat the House?

Additional Links and Reads

Born Libertarian: Doug Casey on Ron Paul and the Price of Freedom (The Gold Report)

This is a fantastic interview between a Gold Report editor and Doug Casey about Ron Paul as well as libertarianism. An excellent read for anyone.

US Builders Hoard Mineral Rights Under New Homes (Financial Post)

The fracking boom and the American shale revolution have made millionaires out of plenty of homeowners in North Dakota. Homebuilders are beginning to secretly hold on to the mineral rights under new homes just in case the home is sitting on a pool of oil. Unethical? Perhaps, but definitely something to keep an eye on next time you're buying a house.

US to Overtake Russia as Top Oil Producer, Says IEA (Financial Post)

Several subscribers requested the source of our claim that US is now producing more oil than Russia. The International Energy Agency (IEA) estimates that in 2014, the US will average a production rate of 11 million barrels per day compared to 10.9 million for Russia. Most of the growth has been due to new advances in hydraulic fracturing and horizontal drilling and has significantly changed energy politics around the world.

Gold: Challenging its Key Support at 1268

Posted: 15 Oct 2013 05:38 AM PDT

Gold has thus far failed to significantly rise despite the proximity of the key support at 1268. Coupled with the declining trendline, the shortterm outlook is bearish. Hourly resistances are given by 1295 (11/10/2013 high) and the ... Read More...

Save Your ASSets First

Wednesday, October 16, 2013