Wednesday, October 2, 2013

Gold World News Flash

Gold World News Flash


The Top 10 Ways The US Government Shutdown Will Affect You Today

Posted: 01 Oct 2013 07:00 PM PDT

by Jeff Berwick, Dollar Vigilante:

The stroke of midnight has just passed and the US government has turned into a pumpkin. Well, we wish. In fact the US government like some eternal zombie continues to walk the Earth even without the souls of taxpayers upon which to feast. And, even that isn’t totally true. Like any zombie it still collects the blood of its victims (taxes) even while most of its zombie army (federal government employees) sit at home on a paid vacation… and most of their oppressive “services” continue on, like the CIA, NSA, ATF, DEA, Executive branch, police and more.

But just for our pleasure, let’s imagine that all government in the US really shut down… which it will in the coming years as the US dollar collapses.

Here, then, is our top 10 list of ways a theoretical shutdown of the US government would affect you in that event… and we include a few ways the current pseudo-shutdown will also affect you (hint: it’s better).

Read More @ Dollar Vigilante

That’ll Teach You! Shut Down OUR Government, Try Killing OUR Socialist “Healthcare” Plan? Hmmm? YOU SHALL PAY! ~ Lord Rothschild

Posted: 01 Oct 2013 06:55 PM PDT

from SGT Report:

Bwahahahahahaha! Take that you pesky peasants. Once again we have SMASHED gold and silver on the COMEX open.

This should come as little surprise to you now that the CFTC has cleared the way for our actions to continue unabated. ‘No provable manipulation’. How amusing.

Enjoy your fate serfs, we remain firmly in control of the paper matrix you call “financial markets”.

UPDATE: 2:55 pm CST – Your resilience and commitment to purchasing in the physical arena, is really starting to piss us off.

SILVER: The Achilles’ Heel

Can I Buy Gold In My IRA Account?

Posted: 01 Oct 2013 06:55 PM PDT

The "I won't buy an umbrella until it rains" crowd has been dumping gold while the case for ownership of  safe haven gold has never been stronger. As the credit bubble continues to grow at an alarming pace it's not a question of if but rather when the next financial crisis engulfs the entire world.  [...]

The Economy Is Dying

Posted: 01 Oct 2013 06:20 PM PDT

by Andy Hoffman, MilesFranklin.com:

I'll address this morning's PM "smack down" prior to the article's principle topic.  I already wrote of the government's horrific failure to avoid shutdown four hours ago – just after 4 AM MST; but given what the Cartel has since done – making an utter MOCKERY of financial markets – I'll add a few words now.

Clearly, TPTB were intent on preventing the "barometers of bad tidings" – i.e., gold and silver – from suggesting "alarm" on such an historic day.  After all, it's been 17 years since the government last shutdown; except in 1995, the economy was structurally healthy and the national debt "just" $5 trillion.  The REAL economy has never been weaker; and thus, the furloughing of 800,000 government workers – despite their cumulative lack of productivity – will only reduce spending and investment further.  Worse yet, the ramifications for a Treasury market already under immense pressure – and thus, unable to withstand even modest QE "tapering" – are incalculable; particularly as the U.S. dollar itself is notably sagging despite the so-called "recovery" the MSM incessantly speaks of.

Read more @ MilesFranklin.com

Commodity benchmarks could fall under UK regulatory scrutiny

Posted: 01 Oct 2013 06:17 PM PDT

By Clara Denina
Reuters
Tuesday, October 1, 2013

ROME -- Key commodities benchmarks could be subject to UK market abuse rules, a British financial markets regulator said on Tuesday, with stiff fines or prison sentences possible as punishments for the manipulation of prices. Global financial markets have come under increasing scrutiny from regulators following the scandal around the manipulation of interest rates -- namely the London Interbank Offered Rate (Libor).

... For the full story:

http://www.reuters.com/article/2013/10/01/lbma-benchmarks-idUSL6N0HR3E22...



ADVERTISEMENT

Buy metals at GoldMoney and enjoy international storage

GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, ­taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:

http://www.goldmoney.com/?gmrefcode=gata



Join GATA here:

Louis Boulanger Now Seminar
Visitors Center, Holy Trinity Parnell
Auckland, New Zeland
Sunday, October 13, 2013

http://www.gata.org/files/GATAInNewZealand.pdf

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...


TF Metals Report: Gold rises when JPM takes delivery, falls when JPM has to deliver

Posted: 01 Oct 2013 06:12 PM PDT

9:04a HKT Wednesday, October 2, 2013

Dear Friend of GATA and Gold:

Turd Ferguson of the TF Metals Report writes today that so far this year the gold price has risen in futures contract delivery months when JPMorganChase has been taken most deliveries and has fallen in delivery months when the bank has been making most deliveries. Ferguson's commentary is headlined "The Pattern Re-Emerges" and it's posted at the TF Metals Report here:

http://www.tfmetalsreport.com/blog/5112/pattern-re-emerges

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



ADVERTISEMENT

You Don't Have to Wait for Your Monetary Metal:
All Pro Gold Has Product for Immediate Delivery

Many investors lately report having to wait weeks and even months for delivery of their precious metal orders. All Pro Gold works with the largest wholesalers that have inventory "live" -- ready to go. All Pro Gold can ship these "live" gold and silver products as soon as payment funds clear.

All Pro Gold can provide immediate delivery of 100-ounce Johnson Matthey silver bars, bags of 90 percent junk silver coins, and 1-ounce silver Austrian Philharmonics.

All Pro Gold can deliver silver Canadian maple leafs with a two-day delay and 1-ounce U.S. silver eagles with a 15-day delay.

Traditional 1-ounce gold bullion coins and mint-state generic gold double eagles are also available for immediate delivery.

All Pro Gold has competitive pricing, and its proprietors, longtime GATA supporters Fred Goldstein and Tim Murphy, are glad to answer any questions or concerns of buyers about the acquisition of precious metals and numismatic coins.

Learn more at www.allprogold.com or email info@allprogold.com or telephone All Pro Gold toll-free at 1-855-377-4653.



Join GATA here:

Louis Boulanger Now Seminar
Visitors Center, Holy Trinity Parnell
Auckland, New Zeland
Sunday, October 13, 2013

http://www.gata.org/files/GATAInNewZealand.pdf

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

Next Economic Crisis Looms as Debts and Deficits Explode

Posted: 01 Oct 2013 05:50 PM PDT

Forget about a government shutdown. The quibbling over concessions to keep the government funded distracts from what might be the most predictable economic crisis. We have problems that may affect everything from the value of the U.S. dollar to investors' savings, but also to national security. In a presentation earlier this year, Erskine Bowles (of [...]

Cazenove's Griffiths cites intervention; Maguire says PBOC isn't on vacation

Posted: 01 Oct 2013 05:11 PM PDT

8:10a HKT Wednesday, October 2, 2013

Dear Friend of GATA and Gold:

Robin Griffiths of Cazenove Capital in London tells King World News today that the fall in gold and silver prices is Federal Reserve intervention:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/1_Ma...

And London metals trader Andrew Maguire tells KWN that though Chinese markets are closed this week, the People's Bank of China is still coming to work and it aggressively buying real metal at a discount:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/1_Ch...

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



ADVERTISEMENT

Don't Let Cyprus Happen to You

Depositors at the Bank of Cyprus lost 47.5 percent of their savings. So to preserve your wealth, get some of it outside the banking system into physical gold and silver.

Worldwide Precious Metals (Canada) Ltd., established in 2001, specializes in physical gold, silver, platinum, and palladium. We offer delivery or secure and fully insured storage outside the banking system in Brinks vaults. We have access to gold and silver from trusted worldwide refineries and suppliers. And when you have an account with us you have immediate access to it for buying and selling your stored bullion.

For information on owning physical precious metals in your portfolio, visit us at: www.wwpmc.com.



Join GATA here:

Louis Boulanger Now Seminar
Visitors Center, Holy Trinity Parnell
Auckland, New Zeland
Sunday, October 13, 2013

http://www.gata.org/files/GATAInNewZealand.pdf

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

Silver and Gold Prices Dropped Today With the Gold Price Closing at $1,286

Posted: 01 Oct 2013 04:55 PM PDT

Gold Price Close Today : 1286.00
Change : -40.50 or -3.05%

Silver Price Close Today : 21.124
Change : -0.532 or -2.46%

Gold Silver Ratio Today : 60.879
Change : -0.375 or -0.61%

Silver Gold Ratio Today : 0.01643
Change : 0.000100 or 0.62%

Platinum Price Close Today : 1381.70
Change : -26.40 or -1.87%

Palladium Price Close Today : 717.90
Change : -8.25 or -1.14%

S&P 500 : 1,695.00
Change : 13.45 or 0.80%

Dow In GOLD$ : $244.20
Change : $ 8.42 or 3.57%

Dow in GOLD oz : 11.813
Change : 0.407 or 3.57%

Dow in SILVER oz : 719.17
Change : 20.53 or 2.94%

Dow Industrial : 15,191.70
Change : 62.03 or 0.41%

US Dollar Index : 80.189
Change : -0.035 or -0.04%

Silver and GOLD PRICES dropped today, the gold price broke $1,325 support about 11:00 and fell clean through $1,300 quickly, with a low at $1,282.40. The $1,286 close was near the low.

Today was complicated. I'll explain. The SILVER PRICE break and low took it below 2100c to 2063cents, but it refused to stay there and climbed back above 2100c and closed barely above an internal support line. Still, it broke the downtrend line from the August low.

The GOLD PRICE formed an upside down head and shoulders and harrowing as today's outcome was, it only took gold back to the neckline.

More complication: the GOLD/SILVER RATIO today FELL from 61.253 yesterday to 60.879 today. That gainsays gold's weakness. When metals are weak, the ratio usually rises, because silver, the smaller and more volatile market, tends to be weaker than gold. When silver and gold prices are strong and rising, the ratio drops. Only one day's performance, but in the teeth of gold's fainting spell, silver bounced back and the ratio rose, and that says something.

Everything seems to be pointing to lower silver and gold prices, but these non-confirmations remain a burr under that saddle. Markets like to surprise, maybe silver and gold will this time. If not, gold could drop to $1,280, or even lower, toward that June low. Silver finds support at 2050c.

Just in case, I bought a little gold today.

Here's a warning for y'all: remember the lemming. Normally a sensible rodent, he lives out his life in the frozen north, gnawing on vegetation and living a sensible life. Suddenly the whole lot of 'em takes a notion to go, someplace, anyplace, and they migrate in herds, dying by the thousands along the way.

Today's performance is bound to cast down normally sensible silver and gold investors, even those with a firm grasp of the market's realities -- that the Fed and government will keep borrowing, spending, creating new dollars and gutting its value, sending silver and gold higher -- and send them crawling off into their beds to sob themselves to sleep because they don't belong to the herd of migrating lemmings who trust their central bank and government to do the impossible.

Me, I don't want to be no lemming. Them nasty things have fleas and jump off cliffs.

Stocks have been withering under the pressure of the approaching government shutdown, but when it in fact arrived, they rose. Huh? Buy the rumor, sell the news, or vice versa. The event has taken place, the world didn't end, buy stocks again.

Dow rose 62.03 or 0.41% to 15,191.70. S&P500 added 13.45 or 0.8% to end at 1,695. These are not big gains but were big enough to pull the Dow back toward its 20 and 50 DMAs above, and the S&P500 above its 50 DMA. That well could mark the end of stocks' decline since mid-September, but they need to confirm that with a couple of days' higher trading.

A sharp down day for metals with higher stock prices meant that the Dow and Gold and Dow in Silver rose. Dow in gold moved up 3.57% to 11.813 oz (G$244.20). Dow in Silver gained 2.94% to 719.17 oz.

Those closes took both above their 50 day moving averages, so momentum is firmly up. Put this into perspective. DiG's June high was 12.51 oz; DiS's was 816.77 oz. After a sharp drop like August's, markets normally rebound, so there's nothing too surprising above this. And this correction does not change the reversal to a downtrend.

US Dollar index keeps grinding toward 80 and a rendezvous with destiny. Today it lost another 3.5 basis points (0.05%) for an 80.189 close. That smells a little bogus to me -- there's a whiff of Nice Government Men there, just a tiny sulfurous whiff. In the midst of the government shutdown, dollar has barley moved down a few basis points a day. Last two days the euro has barely moved, and closed today at $1.3527 -- despite a close through an upper channel line that should have sent it running up like a bunny. That suggests the European NGM have been busy helping the US NGM to prevent any sort of panic from the dollar into the euro. Yen paid no attention and closed at 102.11 cents/Y100, up 0.33% but merely lazily trending up,.

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.

Silver and Gold Prices Dropped Today With the Gold Price Closing at $1,286

Posted: 01 Oct 2013 04:55 PM PDT

Gold Price Close Today : 1286.00
Change : -40.50 or -3.05%

Silver Price Close Today : 21.124
Change : -0.532 or -2.46%

Gold Silver Ratio Today : 60.879
Change : -0.375 or -0.61%

Silver Gold Ratio Today : 0.01643
Change : 0.000100 or 0.62%

Platinum Price Close Today : 1381.70
Change : -26.40 or -1.87%

Palladium Price Close Today : 717.90
Change : -8.25 or -1.14%

S&P 500 : 1,695.00
Change : 13.45 or 0.80%

Dow In GOLD$ : $244.20
Change : $ 8.42 or 3.57%

Dow in GOLD oz : 11.813
Change : 0.407 or 3.57%

Dow in SILVER oz : 719.17
Change : 20.53 or 2.94%

Dow Industrial : 15,191.70
Change : 62.03 or 0.41%

US Dollar Index : 80.189
Change : -0.035 or -0.04%

Silver and GOLD PRICES dropped today, the gold price broke $1,325 support about 11:00 and fell clean through $1,300 quickly, with a low at $1,282.40. The $1,286 close was near the low.

Today was complicated. I'll explain. The SILVER PRICE break and low took it below 2100c to 2063cents, but it refused to stay there and climbed back above 2100c and closed barely above an internal support line. Still, it broke the downtrend line from the August low.

The GOLD PRICE formed an upside down head and shoulders and harrowing as today's outcome was, it only took gold back to the neckline.

More complication: the GOLD/SILVER RATIO today FELL from 61.253 yesterday to 60.879 today. That gainsays gold's weakness. When metals are weak, the ratio usually rises, because silver, the smaller and more volatile market, tends to be weaker than gold. When silver and gold prices are strong and rising, the ratio drops. Only one day's performance, but in the teeth of gold's fainting spell, silver bounced back and the ratio rose, and that says something.

Everything seems to be pointing to lower silver and gold prices, but these non-confirmations remain a burr under that saddle. Markets like to surprise, maybe silver and gold will this time. If not, gold could drop to $1,280, or even lower, toward that June low. Silver finds support at 2050c.

Just in case, I bought a little gold today.

Here's a warning for y'all: remember the lemming. Normally a sensible rodent, he lives out his life in the frozen north, gnawing on vegetation and living a sensible life. Suddenly the whole lot of 'em takes a notion to go, someplace, anyplace, and they migrate in herds, dying by the thousands along the way.

Today's performance is bound to cast down normally sensible silver and gold investors, even those with a firm grasp of the market's realities -- that the Fed and government will keep borrowing, spending, creating new dollars and gutting its value, sending silver and gold higher -- and send them crawling off into their beds to sob themselves to sleep because they don't belong to the herd of migrating lemmings who trust their central bank and government to do the impossible.

Me, I don't want to be no lemming. Them nasty things have fleas and jump off cliffs.

Stocks have been withering under the pressure of the approaching government shutdown, but when it in fact arrived, they rose. Huh? Buy the rumor, sell the news, or vice versa. The event has taken place, the world didn't end, buy stocks again.

Dow rose 62.03 or 0.41% to 15,191.70. S&P500 added 13.45 or 0.8% to end at 1,695. These are not big gains but were big enough to pull the Dow back toward its 20 and 50 DMAs above, and the S&P500 above its 50 DMA. That well could mark the end of stocks' decline since mid-September, but they need to confirm that with a couple of days' higher trading.

A sharp down day for metals with higher stock prices meant that the Dow and Gold and Dow in Silver rose. Dow in gold moved up 3.57% to 11.813 oz (G$244.20). Dow in Silver gained 2.94% to 719.17 oz.

Those closes took both above their 50 day moving averages, so momentum is firmly up. Put this into perspective. DiG's June high was 12.51 oz; DiS's was 816.77 oz. After a sharp drop like August's, markets normally rebound, so there's nothing too surprising above this. And this correction does not change the reversal to a downtrend.

US Dollar index keeps grinding toward 80 and a rendezvous with destiny. Today it lost another 3.5 basis points (0.05%) for an 80.189 close. That smells a little bogus to me -- there's a whiff of Nice Government Men there, just a tiny sulfurous whiff. In the midst of the government shutdown, dollar has barley moved down a few basis points a day. Last two days the euro has barely moved, and closed today at $1.3527 -- despite a close through an upper channel line that should have sent it running up like a bunny. That suggests the European NGM have been busy helping the US NGM to prevent any sort of panic from the dollar into the euro. Yen paid no attention and closed at 102.11 cents/Y100, up 0.33% but merely lazily trending up,.

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.

Gold Breaks Psychological Support

Posted: 01 Oct 2013 04:40 PM PDT

from Dan Norcini:

Gold has fallen through psychological support at the round number of $1300 surrendering its “13″ handle and replacing it with a “12″. This will add to the already bearish sentiment towards the metal which once again has failed to act as a safe haven during a time of crisis. For that matter, neither are US bonds providing any kind of haven right. With the US fiscal condition being at the heart of the current crisis, it would certainly be counterintuitive to see US bond prices moving higher.

Additionally, gold has also broken technical chart support down at the recent low at $1290.

Read More @ TraderDanNorcini.Blogspot.com

Trade Of The Decade: Short 'Trust'

Posted: 01 Oct 2013 04:35 PM PDT

The sad truth is that, based on Gallup survey data, Americans have never trusted other Americans less. Is this the "short" that catalyzed the real trade of the decade - "long gold" - as a hedge for the lies and liars that run the nation...

 

 

(h/t @Not_Jim_Cramer)

Massive raid on gold and silver/dealer and total comex gold falls/GLD and SLV remain constant

Posted: 01 Oct 2013 04:14 PM PDT

by Harvey Organ, HarveyOrgan.Blogspot.ca:

Good evening Ladies and Gentlemen:

Gold closed down $43.50 to $1286.00 (comex closing time ). Silver was down 59 cents to $21.05

In the access market today at 5:15 pm tonight here are the final prices:

gold: $1287.50
silver: $21.16

This is the trading for gold contracts today. Note the huge number of trades in such short of time:

from GATA this afternoon:

“What would you do if you had not only just been exonerated by the CFTC, but basically knew there is NO gold or silver manipulation that could run afoul of their “strict” criteria? Relentlessly bomb the hell out of it, that’s what you would do. And indeed they are. As has been the constant pattern lately it only takes the cartel 2 or 3 crucial minutes to do the damage. The illiquid pre-Comex open, the first minute of the Comex open, and 10:00 AM are tried and true.

Read More @ HarveyOrgan.Blogspot.ca

Wonderful President of USA and Munchkins

Posted: 01 Oct 2013 03:22 PM PDT

The Chief Economist at Citi Willem Butler has said today on CBC in an interview that the fiasco over the US budget and the lack of money is nothing more than irresponsible on all political wings and that the country is being run by Munchkins in the Land of Oz.  Most of us will agree that he has got it spot on with the second label and all we can wonder is if President Obama will be wearing the red shoes in Judy-Garland fashion, banging out an old tune of theStar Spangled Banner even if it is on an untuned piano. Will he be clicking those heels together and wishing he were at home with Aunt Em and Uncle Henry or will the Wicked Witch of the East come along and gobble him and the US up because the country is being run by cowardly darragh duffy the Lion? The first statement made by Butler about the irresponsibility of not voting the budget is largely an open debate and must be questioned.

OZ-bama or Obama?


OZ-bama or Obama?

The Land of Oz

The Wonderful Wizard of Oz may have been written more than a century ago, but it is such a fitting tale of today's sorry state (in more ways than one) of affairs in the USA. Butler was right more than he probably thinks when he spoke of the Land of Oz, the land where the ounce of gold will now shoot through the roof because of the irresponsibility of all political parties that have held power in the USA in the past decades. Investors will seek a safe haven in gold from today onwards and the price of gold will inevitable increase. Politicians can never be trusted to do the right thing (if there is a right thing to do in the circumstances) and that means that the markets will be volatile. The partial shutdown has happened today as hundreds of thousands of Americans stay at home because the government spent too much money. Will the Senators and the Representatives and the government aides or evenPresident Obama take a cut in their salaries in steadfast solidarity for the nation? They should, but they won't. We all know that.

  • According to analysts, gold will possible fall marginally and then rise this week.
  • That's exactly what is happening today with COMEX gold ready for delivery in December that has fallen by 2.3%(down -30.5 to $1.296.5).
  • It is suggested that gold will increase to between $1, 500 and $1, 575 in the coming weeks as investors move into a safe haven.

The Dollar is not worth investing in as that will drop as it already has done against the Yen, the Euro and most major currencies today:

  • The Euro is up against the Dollar by 0.22% (+0.0031 to 1.3557)
  • Sterling is also up by 0.32% (to 1.6237+0.0051)
  • The Australian Dollar increased also by 0.79% (up +0.0074 to 0.9391)
  • The Dollar fell against the Japanese Yen by 0.41% (down -0.4 to 97.87).

The Dollar had been on an up-trend. Now, that is well and truly over as it has been falling since this summer in July. That will continue again now to decline in coming weeks.

Irresponsibility of the US Government(s)

For those out there that believe this is nothing, for those that think that this has happened for the 18th time in the history of the USA today, think on and think again. It may be nothing, but then you are probably not a federal government worker that has been sent home without pay. This is not just hyperbole. It's happening. You are probably not one of the guys that has to look for a way to pay your bills this month because the government hasn't been able to pay the bills and because successive governments have been winging it on both a prayer and on the evil credit that we are told not to live on day in and day out. Certainly, it's nothing much to write home about in the I'm-alright-Jack-couldn't-give-a-damn-world, but what about the 700, 000 federal workers from the national parks and the monuments that are joining the soup kitchens and the breadlines today because they aren't getting a paycheck (and it happens to more than you think)?

Think about the knock on effects. The tourists that won't be visiting those sights, that won't be spending their hard-earned cash in the parks and at the national sites. It's not because something has happened endless times that it becomes more acceptable. It's not because that's the only thing that the media is talking about today that it makes it less prominent in your everyday life. The knock-on effect will filter through. It always does. The only way it won't be going is up. But, it will be going down and sideways and that's where the people are. If that's not important, then what is? Maybe when it comes down to the fact that you won't be able to get a passport because that department will be closed, or you won't be able to get a gun permit because the workers there will have been sent home. Maybe that will start to affect everyone else.

Federal-Government Shutdowns

Today is just a long line of shutdowns in the history of the USA. The others have all taken place since 1976:

  • 10 days                between September 30th and October 11th 1976

Out-of-control spending under the Presidency of Gerald Ford when Congress vetoed the funding bill for the Department of Labor and the Department of Health, Education and Welfare.

  • 12 days between September 30th and October 13th 1977

This was due to the House of Representatives refusing to allow Medicaid Dollars to pay for abortions (the Senate believed that this should be allowed in the case of rape and incest). The dispute between the House and the Senate caused a funding gap and an ensuing rift with the government.

  • 8 days between October 31st and November 9th 1977

A funding agreement enabled to bide for time to discuss the funding gap, but when this expired and a solution had still not been reached there was another shutdown that came about. Jimmy Carter was President.

  • 8 days between November 30th and December 9th 1977

The second temporary funding agreement was also not good enough and the Senate and the House were still in dispute over the funding of abortions via Medicaid. The Senate eventually got funding for rape and incest cases.

  • 18 days between September 30th and October 18th 1978

President Jimmy Carter decided to veto the funding of a nuclear-powered aircraft carrier and also public works bills, stating that they were unnecessary.

  • 11 days between September 30th and October 12th 1979

Two reasons led to government shutdown in 1979. The first was because the House of Representatives wanted a 5.5% pay increase and they wished also to restrict the possibility of abortion to mothers whose lives were in danger. Both were opposed by the Senate.

  • 2 days between November 20th and November 23rd 1981

President Ronald Reagan ordered that the spending bill include 50% of the budget cuts he had intended to do (amounting to $8.4 billion). The Republican Senate agreed, but the Democratic House demanded more military and defense cuts and approved only $2 billion less than Reagan had asked for. The President vetoed the bill and shut down government until he got what he wanted.

  • 1 day between September 30th and October 2nd 1982

The spending bill was held up by one day. But, it was passed.

  • 3 days between December 17th and December 21st 1982

Both the House and the Senate (the first was controlled by the Democrats and the second by the Republicans) wanted to include funding for jobs in the budget. President Reagan refused and vetoed the bill.

  • 3 days between November 10th and November 14th 1983

The Democratic House wished to increase the budget for education and to reduce defense. Reagan refused and vetoed the budget again.

  • 2 days between September 30th and October 3rd 1984

Ronald Reagan wanted to link the budget to a water-supply project but the House (despite agreeing to do this) also wanted to link it to the fight against crime (which Reagan refused). The President vetoed the budget yet again and shutdown government.

  • 1 day between October 3rd and October 5th 1984

There was an extension granted on the budget but when it expired, government shut down. Reagan stood his ground and the House backed down on the crime package.

  • 1 day between October 16th and October 18th 1986

There was a dispute between the Democratic House, President Ronald Regan and the Republican Senate. Reagan shut down government yet again.

  • 1 day between December 18th and December 20th 1987

This was related once again to a dispute between the House and the senate that were controlled by the Democrats and President Reagan over the funding of the Contras.

  • 4 days between October 5th and October 9th 1990

President G. W. Bush shut down government at this time since he demanded that if there were a continuing resolution (legislation to fund government where a formal bill has not been signed), then it would have to be accompanied by a deficit-reduction plan. Otherwise he would veto it and close down government, which is exactly what happened.

  • 5 days between November 13th and November 19th 1995

President Bill Clinton decided to veto the continuing resolution of Congress (controlled by the Republicans).

  • 21 days between December 16th 1995 and January 6th 1996

President Clinton was forced to provide a seven-year schedule to balance the state budget. But, he was asked to use the Congressional Budget Office figures and not the Office of Management and Budget of his own making. He refused and so government was closed down.

  • ? (unknown so far) days as from October 1st 2013

Due to a dispute over the Affordable Care Act and the fact that the government has not passed a funding bill. How long it will continue is another matter.

If there's one thing that runs through all of these shutdowns, it's the feuding between the Senate and the House of Representatives or both that are against the President. Is that the crux of the matter? The real cause behind all of this? Three parties vying for power and pulling the bed sheets to their side so that they can keep themselves warm? But, they are not the ones that suffer, are they? They just vote the bills or veto and it's as easy as all that.

Wizard of Oz and the US Government Shutdown


Wizard of Oz and the US Government Shutdown

Oz and the USA

The Wizard of Oz was a satirical parody of money and politics. But, the Munchkins were the ordinary people that were enslaved and held in the bondage of the Wizard. The ordinary federal workers and the average Americans are those Munchkins and it's not the US that is being run by them. But, the US is the flawed utopic Land of Oz where every man would make it rich. Yes, that was possible while the credit line was there. Now is ancient history and fairytale material.

Washington is the Emerald Green City with the greenbacks the line the walls of the offices of the lawmakers and Congress. That fake charlatan, the Wizard? You decide who he might well be. Looks as if we might just be needing a new scarecrow to replace that Wizard. But, scarecrows are just dummies too, anthropomorphic personifications of man, made just to scare the birds away.

The irresponsibility of the governments that have done nothing but spend since Ronald Reagan jacked in acting to play the role of President of the USA, there has been nothing but a successive line of Presidents that have been playing a role-game for the entire country. It's about time that all that changed.

Originally posted: Wonderful President of USA and Munchkins

You might also enjoy:

Last One to Leave Turn Out the Lights | Crisis is Literal Kiss of Death | Qatar's Slave Trade Death Toll | Lew's Illusions | Wal-Mart: Unpatriotic or Lying Through Their Teeth? Food: Walking the Breadline | Obama NOT Worst President in reply to Obama: Worst President in US History?

 Obama's Corporate Grand Bargain Death of the Dollar | Joseph Stiglitz was Right: Suicide | China Injects Cash in Bid to Improve Liquidity

Technical Analysis: Bear Expanding Triangle | Bull Expanding Triangle | Bull Falling Wedge Bear Rising Wedge High & Tight Flag

Gold Price Today vs The 1995 Government Shutdown

Posted: 01 Oct 2013 02:58 PM PDT

Today’s summary in money, metals and markets comes from Zerohedge. A short posting with several charts describes the market movers and losers on the first day of the US government shutdown:

US Equity markets started green and ended green. The Russell 2000 closed at all-time highs with the best day in a month (up over 2% from yesterday’s lows) on the day the US government shutdown for the first time in 17 years. The USD dumped early (EUR strength on Italy) but clambered back to only a small loss on the day. The big news was in commodity-land where gold and silver were smashed early (and silver rebounded) as were copper and oil. The lunatics had full control into the close taking the S&P to its highs of the day – totally incredible.

While yesterday’s gold and silver price action resembled whipsawing, today’s picture was quite different. Precious metals failed to act as a safe haven when looking at price action. While that may sound as a contradiction, the chart shows a fall through psychological support at $1300.

Gold price during the 1995 / 1996 government shutdown

The last government shutdown in the US goes back to the Clinton administration. It was the longest one in the US history: from Dec. 16, 1995, to Jan. 6, 1996. Interestingly, gold started only to react towards the end of that period. There was initially no reaction at all, as appears from the following chart (courtesy: gold.org). Today, however, things were different.

gold price government shutdown 1995 1996 price

Gold price today: technical picture

In his market commentary, professional trader Dan Norcini describes the picture on the charts (source):

Gold has also broken technical chart support down at the recent low at $1290. Bulls must quickly take prices back above this level and preferably above $1300 if they are to avoid suffering deeper losses. Bears are growling today and flexing their muscles having picked off downside sell stops and that has turned the momentum negative. Hedge fund computers will certainly notice that.

There is some additional downside support coming in near $1280 extending to $1270. Should that fail, losses will accelerate. Bulls need some help and they need it quickly.

Losses in the soybean market have also worked to pull the rug out from under silver, which still maintains a connection to this market, even though that link has weakened a great deal in recent times. Many traders tend to look at soybean prices as a sort of proxy for food prices in general and if the former are moving lower, they tend to discount any inflation fears and thus sell silver.

The physical market can stem the bleeding in these precious metals but that buying in and of itself cannot push prices higher without momentum based buying and right now momentum is trending lower.

gold price chart 1 october 2013 price

He continues with a technical explanation of the problem in the gold market based on the longer term chart (weekly chart):

Forget all the chatter about backwardation, dwindling COMEX stocks, etc. None of that matters. As stated before the only thing that matters is price action. Why is this so important? Simple- because in today’s markets Hedge Funds are the drivers of trends and they are not buying this market except for bursts of short covering after which subsides, they promptly return to selling. Translations – they are currently missing in action from the buy side. Until they return, price will move lower. Also, the largest gold ETF on the planets, GLD, continues to experience drawdowns of its reported holdings. How in the world can that be considered anything but bearish as it indicates a lack of sustained speculative interest in the yellow metal?

On the chart you will note the Fibonacci Retracement levels. I displayed only the 38.2% level for the sake of clarity and to avoid cluttering the chart. Note that the rally higher that began in late June/early July off the spike low below 1200 only managed to reach the 38.2% retracement level off last year’s high near 1800 before the metal began moving lower once again. It thus failed to extend above the psychologically important $1400 level. That attracted additional selling.

gold price chart weekly 1 october 2013 price

It is now trading within the confines to the pitchfork with the upper line acting as resistance. If the line is valid, the market has the potential to drop towards the median line again which unfortunately is now below $1200 based on this time frame. Also, since the RSI has been mired in that trading range between 50 and 20 and is now headed lower, it is conceivable that we could see it begin moving  lower until it nears that same level once again.

This price action is surely counterintuitive, given the recent confirmation of continuing monetary stimulus and the uncertainty in the land of the world reserve currency. Apparently the markets have another opinion about it. If gold will only react when the debt ceiling has been raised, just like in 1995 / 1996 remains to be seen.

 

Ground Control to Major Tom: Reserves Are in Jeopardy

Posted: 01 Oct 2013 02:31 PM PDT

When you hear about the "gold reserves" a mining company has in the ground, the natural assumption would be that they're talking about a fixed number of ounces. After all, gold doesn't decay, and neither does it grow legs and move ... Read More...

The Gold Show: September Seasonally Strong For Gold

Posted: 01 Oct 2013 02:24 PM PDT

September is usually a seasonally strong period for gold due to buying ahead of a number of major gift-giving holidays around the world. Between the wedding season and Diwali festival in India,...

[[ 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! ]]

Dollar Slides as U.S. Shutdown Boosts Fed QE Bets

Posted: 01 Oct 2013 02:17 PM PDT

01-Oct (Bloomberg) — The dollar traded at almost the lowest since February as a partial shutdown of the U.S. government boosted speculation the Federal Reserve will persevere with asset purchases that tend to weaken the currency.

The euro touched its highest level against the greenback in almost eight months as political wrangling threatened to curb U.S. growth. Lawmakers still need to agree on raising the U.S. debt limit to avoid a default after Oct. 17. The yen rose as Japanese Prime Minister Shinzo Abe proceeded with a sales-tax increase and stimulus measures. Sweden's krona jumped as a report showed manufacturing expanded faster than economists predicted.

"The dollar is trading with a very slight or mildly weaker bias," Nick Bennenbroek, the head of currency strategy at Wells Fargo Securities in New York, said in a phone interview. "The market is in a bit of wait-and-see mode. The recent experience in terms of political battles, shall we say, has been that the impact on markets has been limited."

…"The market is anticipating that a shutdown means the Fed will also maintain its easy policy stance for longer because of the risks to the U.S. economy," said Greg Gibbs, a senior currency strategist at Royal Bank of Scotland Group Plc in Singapore. "We are seeing some strength in the European currencies and a bit of weakness in the U.S. dollar."

[source]

Gold Daily and Silver Weekly Charts - Pigmen Rampant on a Field of Greed

Posted: 01 Oct 2013 01:48 PM PDT

Gold Daily and Silver Weekly Charts - Pigmen Rampant on a Field of Greed

Posted: 01 Oct 2013 01:48 PM PDT

Politicians Around The World Are Sure To Sink The US Dollar

Posted: 01 Oct 2013 01:18 PM PDT

The U.S. government has begun a partial shutdown for the first time in 17 years, after the two houses of Congress failed to agree a budget. The Republican-led House of Representatives insisted on delaying Mr Obama’s healthcare reform – dubbed Obamacare – as a condition for passing a bill. More than 800,000 federal employees face unpaid leave with no guarantee of back pay once the deadlock is over. The Senate is to meet again at 09:30 (13:30 GMT) on Tuesday, Democratic Senate Majority Leader Harry Reid said.

The news prompted a sell-off in gold on the opening of the US session on Comex. Possibly, traders see this as a short-term opportunity to knock the price down as the possibility of a total shut-down and a US default is practically impossible. However, this latest clown show will undoubtedly cast a shadow of doubt on the value of the US dollar.

Several Federal agencies have been instructed to reduce services after US lawmakers could not break a political stalemate. But spending for essential functions related to national security and public safety will continue, including pay for U.S. military troops. The fiasco has sparked new questions about the ability of a deeply divided Congress to perform its most basic functions.

At this stage, it is unclear how long the shutdown may last and so far there is no clear plan to break the impasse. The Senate has planned to recess today until 9:30 a.m., at which time Democrats expect to formally reject the House of Representatives’ latest offer for funding the government. The shutdown will continue until Congress resolves its differences, which could be days or months. But the conflict could spill over into the more crucial dispute over raising the federal government’s borrowing authority.

The current disagreement is over Obamacare – Obama’s health care initiative. The goal of Obamacare is to increase the number of Americans with insurance. In short, everyone is now eligible for insurance. And not just eligible… it is compulsory. All Americans must carry a minimum level of insurance by January 1. If you don’t, you will be fined the greater of $95 or 1% of your annual income. The launch of Obamacare comes at a time when the official national debt of the United States is about $17 trillion and the national deficit is some $1 trillion per year. When Obama was elected in 2008, the official national debt stood at only $10 trillion. That means the Obama Administration has added more than $7 trillion in debt in only five years.

A failure to raise the $16.7 trillion debt ceiling would force the country to default on its obligations, dealing a potentially painful blow to the economy and sending shockwaves around global markets.

While mainstream media proclaim victory for the Obama administration because of a supposedly "shrinking" deficit, what they either fail to mention or are too stupid to understand is that the official reporting of the deficit does not account for real deficit expenditures each year. The official deficit does not include "unfunded liabilities," like Social Security and Medicare, or off-book agencies like Fannie Mae and Freddie Mac. If one were to calculate the true national debt, of the US including "unfunded liabilities," it could well be in the region of anywhere from $120 trillion to more than $200 trillion.

The question remains is how is this going to be funded. The total revenue from taxes won't be sufficient. So, what about foreign treasury investment? At this time it seems that investors are more likely to sell their holdings of US debt than buy more. U.S. Treasury holdings by foreign creditors witnessed a record sell-off in June of this year.

The majority of all Treasury purchases by foreign investors are short-term bonds, meaning international faith in America's ability to cover its debts has fallen considerably. Creditors now want only bonds that mature quickly, so that they can be liquidated at a moment's notice. Foreign investment in the United States is currently either static or dropping, depending on the country, meaning no extra cash flow for the US government.

No matter how this drama plays out, there is another one about to start… It’s the new battle over the debt ceiling that Congress and the White House are due to have in a couple weeks.

Meanwhile, what I find absolutely fascinating, is while these political clowns can't agree on some major issue, threatening their own government, they are all quick to agree on a policy that does not pose such a serious threat and which is pretty much meaningless to the average US individual. For now, that issue has disappeared, but for a few weeks it was in the headlines. If you haven't already guessed what I am on about, it is the situation in Syria.

Recently the price of gold was pushed upwards due to the possibility of a US military strike against Syria. As US Secretary of State, John Kerry, and US President, Barack Obama, tried to convince the world that for humanitarian reasons, it was necessary to punish the Assad regime for their alleged involvement in a chemical attack that took place in Syria, much of the rest of the world did not share their point of view. In their speeches, both the US President and the US Secretary of State often pointed out to the senseless killings of some 1400 innocent victims. Yet, while they publicly condemn this atrocious act of violence, thy remain silent about the on-going political strife that exists in Africa that results in the brutal killings of thousands of individuals, and the displacement of hundreds of thousands of innocent individuals. This lack of consistency in their policy leads me to think that it has nothing to do with human rights at all. Surely, if their concern was really the safety of individuals and in order to have a consistent meaningful policy, most of their attention should be focused on the African countries where a lot more than 1400 individuals including women and children have been massacred.

Obviously, the US government has an ulterior motive and they are merely using the killings of innocent citizens as a smoke screen. It is evident, that the killings of innocent individuals are not really the major issue, but rather the potential of a disruption of the flow of oil is the main problem. For without oil, the US economy will sink and the massive military machine of the US will be put in jeopardy.  Also, without the flow of oil, the US petrodollar is at risk.

A petrodollar is a United States dollar earned by a country through the sale of its petroleum (oil) to another country. The term was coined in 1973 by Georgetown University economics professor, Ibrahim Oweiss, who recognized the need for a term that could describe the dollar received by petroleum exporting countries (OPEC) in exchange for oil. And, of course a collapse in the petrodollar will ultimately lead to the end of the US dollar being the reserve currency of world. In such an instance, the price of gold will soar. So, whether the US government uses peace or aggression in the Middle East, I maintain that their sole objective is to ensure the flow of oil and thus the survival of the greenback as well as other fiat currencies.

Meanwhile, while the US government feel it necessary to flatten Syria, despite the fact that Syria has not made any direct threat against the US in any way, after some thirty years of a freeze in relationships between their two countries the US President Obama and Iranian President Hassan Rouhani spoke by phone in the first conversation between an American and Iranian president since 1979.

On Friday, the US president revealed that the two leaders had spoken. He said he believes the two countries can reach a "comprehensive solution" on Iran's nuclear program, and said he and Rouhani had both directed their diplomats to pursue an agreement. In a press conference, and before talking about the US government funding that needs to be approved before Tuesday, he gave an update on the relations between the U.S. and Iranian governments.

"Just now I spoke on the phone with President Rouhani,” Obama said. “The two of us discussed our ongoing efforts to reach an agreement over Iran’s nuclear program. I reiterated to President Rouhani what I said in New York: While there will surely be important obstacles to moving forward, and success is by no means guaranteed, I believe we can reach a comprehensive agreement.”

The call came after Secretary of State John Kerry met on Thursday in New York with his Iranian counterpart on the side-lines of the United Nations session. The White House had apparently floated the possibility of Obama meeting, casually, with Rouhani in New York, but U.S. officials said the Iranians nixed the idea.

While many U.S. lawmakers, as well as Israeli leaders remain sceptical about Obama's claim that Rouhani represented "new leadership" in Iran, the conversation has resulted in many complaints that Obama is ignoring Republicans while engaging America’s adversaries.  Kevin Smith, a spokesman for House Speaker John Boehner, tweeted: “[Obama] negotiates with Iran, Putin but not Congress #shocking.”

However, it appeared the two countries still have a long way to go resolving their relations. On Friday the Wall Street Journal reported that U.S. officials alleged Iran have hacked unclassified Navy computers in recent weeks. If true, it would mark one of the most serious infiltrations of government computer systems by the Iranians.

The countries’ disagreements are grave and plentiful. Relations have experienced few ups and countless downs since the 1979 Islamic Revolution and subsequent hostage crisis at the U.S. Embassy in Tehran.

While any peace accord between these two countries would be admirable, it is unlikely that the current political turmoil in the Middle East will end any time soon. All it would signify is a decrease in Middle East tensions which is likely to be a bearish factor for the crude oil market, and may result in some added selling pressure to the gold market.

While geopolitical tensions such as these will likely impact on gold prices in the short-term, they are hardly the main determining factor. They will come and go and re-emerge. What is of much greater significance is the unprecedented amount of money central banks have pumped into the global financial system.

If the Fed continues to print money at the current rate of $85 billion a month and does not announce cuts to its quantitative easing program when it meets in October, the US central bank’s balance sheet will exceed some $4 trillion by the end of the year. But the US has not been the only government in the world to print more money and together with the Bank of Japan, the European Central Bank and the Bank of England, more than $9 trillion has been pumped into the financial system.

Furthermore, even if the Fed was to taper, the Fed is wholly committed, as is the ECB, the BoE and the Bank of Japan, to maintaining close-to-zero interest rates for up to two more years, which is the overriding consideration.

While quantitative easing is a very effective way to ensure monetary expansion, it also finances the government deficit at virtually no cost, while stealing money from savers. However, this policy is likely to have inflationary consequences. In the long-term, this policy will destroy these economies as the governments steal from the public to finance their worthless endeavours.

Thanks to our politicians in most countries, in my opinion the US dollar will end in a collapse. In addition to all this money being printed, the U.S. Treasury is holding more than $2 trillion in short-term debt that must be refinanced within the next 12 months. And, the only way the government will be able to finance this debt will be to continue to print more money. This will only delay the day of reckoning while debasing the value of this fiat currency. According to the American Institute for Economic Research, the purchasing power of the dollar has already decreased by more than 95% since 1913.

As geopolitical tensions come and go, the consequence of this unprecedented money printing experiment will have far dire implications. It is for this reason that it is important for individuals to diversify some of their assets into physical gold and silver.

Technical picture

gold price 30 september 20131 money currency

Gold prices continue to trade sideways, holding well above the support of $1300/oz. However, they will need to break back above $1345/oz. to gain some upward traction.

 

About the authorDavid 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

Ground Control to Major Tom: Reserves Are in Jeopardy

Posted: 01 Oct 2013 01:07 PM PDT

Ground Control to Major Tom: Reserves Are in Jeopardy By Jeff Clark, Senior Precious Metals Analyst When you hear about the “gold reserves” a mining company has in the ground, the natural assumption would be that they’re talking about a fixed number of ounces. After all, gold doesn’t decay, and neither does it grow legs […]

Top Strategist Says U.S. Responsible For Gold Takedown

Posted: 01 Oct 2013 11:47 AM PDT

With continued chaotic trading in the gold and silver markets, today King World News interviewed one of the top strategists in the world, Robin Griffiths of Cazenove out of London.  Cazenove Capital is the appointed stockbroker to Her Majesty The Queen. The acclaimed strategist accused the US government of causing this smash in the gold and silver markets, and also spoke about what to expect next. Below is his powerful interview.

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

Rising US Interest Rates Will Be Negative For Gold -- LBMA Delegate

Posted: 01 Oct 2013 11:32 AM PDT

Kitco News' Daniela Cambone speaks with Gerhard Schubert, Head of Commodities for Emirates NDB, about the current state of the gold market and what he expects to see in the coming months. "Gold is...

[[ 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! ]]

Gold And Mining Stocks: The Outlook Remains Bearish

Posted: 01 Oct 2013 11:22 AM PDT

We summarized our previous free commentary by stating that the medium-term outlook was bearish - did anything change? Read More...

In The News Today

Posted: 01 Oct 2013 11:01 AM PDT

Jim Sinclair’s Commentary The value of gold will be determined by the size of debt, not like it is today by the Securities Plunge Protection Team. Dutch pension fund defeats central bank, wins right to invest in gold Submitted by cpowell on Tue, 2013-10-01 03:49. Section: Daily Dispatches By Den Haag De Rechtspraak The Hauge,... Read more »

The post In The News Today appeared first on Jim Sinclair's Mineset.

Gold tumbles as investors watch Washington dysfunction

Posted: 01 Oct 2013 10:54 AM PDT

01-Oct (CNBC) — Gold futures are tumbling amid concerns about dysfunction in Washington and the U.S. government shutdown, while stocks and bonds seem to be largely ignoring it.

The dollar also fell, touching an eight-month low as buyers moved into euros and other currencies. Stocks were higher and bond prices were lower, with Treasury yields edging slightly higher.

Gold futures fell sharply after at least one major seller triggered a cascading decline that drove the metal through key technical levels on huge volume, analysts said.

…”We heard there was one big seller,” said Howard Wen, precious metals strategist at HSBC.

[source]

PG View: Well if that one big seller is done, gold may come back. Silver is already showing some renewed buying interest, regaining $21.

U.S. Debt Burden - The Most Predictable Economic Crisis?

Posted: 01 Oct 2013 09:13 AM PDT

Forget about a government shutdown. The quibbling over concessions to keep the government funded distracts from what might be the most predictable economic crisis. We have problems that may affect everything from the value of the U.S. dollar to investors’ savings, but also to national security.

Maguire - Gold Plunge, Who’s Responsible & What’s Next?

Posted: 01 Oct 2013 09:09 AM PDT

On the heels of a plunge in the price of gold and silver, today London metals trader Andrew Maguire spoke with King World News about the takedown in gold and silver, as well as what price levels the shorts are targeting. He also told KWN who is on the buy side of this smash and what to expect going forward. Below is what Maguire had to say in this tremendous and timely interview.

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

Gold Fields completes acquisition of Barrick mines

Posted: 01 Oct 2013 09:02 AM PDT

The acquisition of Barrick's Granny Smith, Lawlers and Darlot mines will add about 400,000 ounces of output to its portfolio.

Read more….

Swiss gold refiner Metalor delays Singapore launch

Posted: 01 Oct 2013 09:02 AM PDT

The refinery is set to be first in Singapore, and is expected to have a combined manufacturing and refining capacity of 150 t/y.

Read more….

Gold hits 8-week low, loses steam built on US govt. shutdown

Posted: 01 Oct 2013 09:02 AM PDT

Gold slid below $1,300/oz on Tuesday, unwinding much of the steam built up as investors had anticipated a partial US government shutdown.

Read more….

US gold market digests the government shutdown

Posted: 01 Oct 2013 09:02 AM PDT

Julian Phillips says if there is no resolution within the next 17 days, we see the potential for an impact on the global system equal to the mid-2007 credit crunch.

Read more….

Speculators return to buy gold futures – CFTC

Posted: 01 Oct 2013 09:02 AM PDT

For the week ended Sept. 24, speculators in the CFTC's weekly commitment of traders report continued to not only cover previously sold positions, but also established new bullish trades in gold.

Read more….

The Daily Market Report

Posted: 01 Oct 2013 08:42 AM PDT

Gold Drops Back Below $1300 as Government Shuts Down


01-Oct (USAGOLD) — After posting the first quarterly gain in a year, gold tumbled back below $1300 in early New York trading, establishing new eight-week lows. These losses come after the threatened government shutdown became reality; and yet the day dawned and nothing happened…

This may have sapped safe-haven demand, particularly in light of the fact that stocks started the day higher. Short-term specs were betting on a government shutdown to drive prices higher, but when the shutdown happened and those gains failed to materialize, they beat a hasty retreat. Sell stops were triggered on the way down, adding momentum to the intraday decline.

With yesterday’s close at 1328.42, the yellow metal confirmed a Q3 gain of 7.6%. It was the first quarterly gain since Q3-12.

While strong safe-haven buying on the U.S. fiscal crisis has not emerged yet, the budget component of the crisis is the far lesser of the twin evils. However, political intransigence that led to the shutdown sets an ominous tone for the much more important debt ceiling battle to come.

If neither side is willing to move on a ridiculous little CR to fund the government for another six-week, things could get very interesting when the debt ceiling becomes the headline topic. The Treasury Department has indicated that the debt ceiling must be raised prior to 17-Oct or the United States will face a technical default.

With both parties digging in their heels on the CR, to the point of a government shutdown, the debt ceiling debate could be every-but as contentious. A default is a far more serious outcome than a government shutdown, so today’s sell-off may prove to be a great opportunity to get your hedges on.

Will the government shut down will gold wake-up?

Posted: 01 Oct 2013 08:39 AM PDT

The Real Asset Co

India current account gap below estimates as gold imports curbed

Posted: 01 Oct 2013 08:24 AM PDT

The deficit was $21.8 billion in April through June, compared with $18.1 billion in the previous quarter, the Reserve Bank of India said.

Read more….

PBOC mulls expansion of qualified gold importers list

Posted: 01 Oct 2013 08:22 AM PDT

Under draft rules released by the central bank yesterday, financial institutions and companies that produce more than 10 metric tons of gold a year, may be considered for the list.

Read more….

Why good economic news should send gold to new heights – Coxe

Posted: 01 Oct 2013 08:22 AM PDT

“Gold rose along with the Fed balance sheet for years. The two have decoupled in the last two years,” says BMO Asset Management’s Don Coxe.

Read more….

“Really? There’s no gold in Fort Knox?”

Posted: 01 Oct 2013 07:07 AM PDT

OK, I admit it. I watch the television series The Walking Dead. If you’re not familiar with this triumph of modern Kultur, it’s a cable TV show about people battling zombies in a post-apocalyptic world.

Basically, The Walking Dead’s premise is that an exotic disease killed off most of the world’s population, but in the process reactivated the basal sections of their brains. Now the not entirely deceased entities prowl the land as zombies. As a counterpoint to these “walking dead” critters, an array of struggling humans battle to survive, every Sunday night at 9 p.m. (Season Four starts in October.)

What does this have to do with investing? Glad you asked!

The Walking Dead helps, in perhaps a peculiar way, underpins a new investment thesis. It’s all based on the Fed’s “dead money” philosophy.

While there may be no way of stopping the Fed’s plague of zombie money from flooding the market, there’s still plenty you can do to “arm yourself” against its deadly advance.

Specifically, you can buy into the idea of holding gold or buying a few undervalued gold companies.

I recently uncovered a fascinating chart, from Bianco Research LLC, of long-term U.S. interest rates covering 222 years, from 1790–2012.

Long Term U.S. Interest Rates 2013

Pretty cool chart, eh? I could discuss this chart all day. But the take-away here is that since 1790, the average long-term interest rate on U.S. Treasuries has been about 5%. When you look back over all of U.S. history, interest rates have almost never been under 3%, excepting during the total national effort of World War II. Keep that 5% in mind!

So what are the current interest rates for U.S. 30-yr bonds? At last check, according to the U.S. Treasury, they’re sitting at just above 3.6% — up over the past five months on the hopes of a Fed taper.

What’s the point? As the chart shows, historical rates for U.S. bonds have averaged about 5% over the past 222 years. Yet right now, according to the U.S. Treasury, short-term bonds yield just a hair above nothing. Medium-term bonds (one-five years) yield way under 1.5%.

We’re a long way below the historical average of 5% money, right? Treasury yields are as dead as doornails. Looking ahead, what if there’s even a slight reversion of Treasury rates to the historical mean? What if these near-dead current interest rates start to rise via the Fed’s promised taper?

What do these superlow, historically anomalous Treasury interest rates tell us? On that point, I’m reminded of the words of the great Austrian economist Ludwig von Mises, who wrote that “Public opinion always wants easy money, that is, low interest rates.”

Well, clearly, we have a government policy of easy money and monetary populism. The U.S. government — and its associated class of media and financial enablers — wants cheap interest rates to mask the true cost of horrific, irresponsible levels of federal borrowing and spending. Low interest rates are just grease for the country’s financialized treadmill to nowhere.

With Treasury bonds continuing to offering historically-low interest rates, it sets a funereal tone for interest rates through the rest of society. Why bother saving? Could it be that American money is “cheap,” in terms of interest because over the long term, it’s not worth all that much anymore? Do you see the issue?

Back when I took the basic survey economics course at Harvard — Economics 10 — I recall the late Otto Eckstein (who worked for presidents Kennedy and Johnson) saying that cheap money destroys capital. That was just a fundamental point. If you missed that, you failed the course.

In other words, we live in a capital-intensive world. Capital requires savings and investment. Yet low interest rates undermine people’s incentive and ability to save and invest. So low interest rates are — over any prolonged period of time — thoroughly destructive toward capital in many ways.

We could go back to von Mises, who stated, “True, governments can reduce the rate of interest in the short run. They can issue additional paper money. They can open the way to credit expansion by the banks. They can thus create an artificial boom and the appearance of prosperity. But such a boom is bound to collapse soon or late, and to bring about a depression.”

Soon or late? My bet is soon.

I could carry on this economic discussion, but I’ve laid enough foundation. Let’s get to what von Mises called “real money” — that is, gold.

Prices for gold and silver are down on the year — gold off 20% and silver down 28%. One sage banker explains — in the Wall Street Journal, no less — that the economy is improving. Thus people are less inclined to “keep their money idle” by buying gold, he says. Better to “put your funds to good use,” he says, by channeling it into other investments. Really?

Evidently, this banker-guy missed the class in which the instructor taught that “gold is money.” Because there’s nothing “idle” about holding gold. Ask the rest of the world, especially the East. They’re buying gold.

Indeed, my tally of national central banks that have been buying gold, in recent months, includes Russia, Turkey, India, Brazil, Canada, Mexico, Saudi Arabia and Vietnam. What do they know?

I’ve never thought that U.S. currency was real “money.” Those green pieces of zombie paper are merely a medium of exchange…

Of course, China is also building a gold stash, but not bragging about it. They’re building nuclear weapons, too, and not bragging about it. To paraphrase that oft-noted Las Vegas line, what happens in China stays in China.

Back at Harvard, I learned that gold is money. Then again, I learned that in the Geology Department, from the mining geology guy, Prof. Ulrich Petersen, and not in the Economics Department.

Still, every now and then — back in the 1970s — one could overhear a Harvard economics professor say something like “a dollar is as good as gold.” Yes, it was a reminiscence of the days of the Bretton Woods Agreement, which established the dollar as a currency “backed” by gold.

Old monetary habits die hard. Hey, maybe old monetary habits were the right thing to do, in their day. They deserve to die hard.

At any rate, I’ve never thought that U.S. currency was real “money.” Those green pieces of zombie paper are merely a medium of exchange, and “legal tender for all debts, public and private.” Where did I get that offbeat, countercultural idea? Well, start with the text that’s printed on every Federal Reserve note, that’s where. It says exactly that.

There’s a difference between currency and money. Modern America has been able to get away with blurring the currency-money distinction for a couple of generations. But with federal spending out of control, each day brings us closer to our own, contemporary version of economic apocalypse.

Really, who needs a zombie apocalypse, when you’ve got a federal government that spends astronomical sums of “money” that, apparently, comes from nowhere? Well, okay, it comes from the Federal Reserve. But when you get down to the essence of things, Fed-money is equivalent to a “Big Bang money machine” — from nothing, comes something.

This reminds me of a story — a true story, no less. I was in the Pentagon, some years ago, in the days of the Bush II-administration. It was E-Ring stuff. I was in the very spacious office of a very senior guy in the U.S. Air Force. We were discussing energy issues, particularly Air Force programs to spur a U.S. “synthetic fuel” industry.

Our discussion touched issues of government funding of private industrial development, and questions about who owns the intellectual property (IP). New energy-development technology has national security implications. Should the IP go into the public domain? Or do we keep parts of it classified?

One of the military staffers at the table spoke up, and said, with a downbeat voice, “I don’t know if we can keep this kind of tech classified. We’re terrible at keeping these things under wraps for long.”

As everyone around the table nodded in agreement, I decided to test their hearing. I said, “That’s true. Really, the only two national secrets we’ve ever been able to keep are about those space aliens, and the captured flying saucer in Area 51, and that there’s no gold in Fort Knox.”

The room went quiet. You could hear a pin drop. The senior Air Force guy leaned over the table, and looked right at me. He said, “Really? There’s no gold in Fort Knox?”

That’s all for now. Thanks for reading.

Byron King
for The Daily Reckoning

Ed. Note: Every day, the Daily Resource Hunter gives readers an incredible leg up in the resource investment space. Complete with tons of boots-on-ground research and expert analysis, readers also learn about specific ways to profit from the best companies in this sector. And it’s free! So what are you waiting for? Sign up, for free, right here.

Original article posted on Daily Resource Hunter

Gold Sharply Lower, Hits 7-Week Low, amid Raw Commodity Market Sell Off

Posted: 01 Oct 2013 06:25 AM PDT

01-Oct (Kitco News) — Comex gold futures prices sold off sharply and hit a fresh seven-week low in early U.S. trading Tuesday, after holding modest gains overnight. Sell stops were triggered to exacerbate the selling pressure in both gold and silver markets. The "risk-off" trader and investor mentality in the market place—which has most raw commodity market prices under pressure Tuesday morning–has presently trumped the safe-haven demand that was mildly present for gold in overnight trading.

…The market place is greeting the U.S. government shutdown news with risk aversion so far Tuesday. If this latest U.S. government debacle drags on, many markets will become even more skittish. Presently, most of the market place expects the U.S. government shutdown to be short-lived. In mid-October the U.S. government will hit its borrowing limit. If that matter cannot be agreed upon by U.S. lawmakers in a timely manner, it could be a much bigger event for the market place than the current budget impasse. Fresh budget news coming out of Washington Tuesday could be market-sensitive.

[source]

Gold drops, proves immune to U.S. government shutdown

Posted: 01 Oct 2013 06:02 AM PDT

01-Oct (Reuters) — Gold fell on Tuesday, letting go of slight gains made after the U.S. government entered a partial shutdown, with investors betting the stand-off would be resolved shortly.

After missing a midnight deadline because of a political stalemate in Congress, U.S. federal agencies started to cut back services, potentially putting up to 1 million workers on unpaid leave.

…The impasse did however concern investors over whether Congress can meet a more important deadline in mid-October to raise the debt-ceiling limit.

“Certainly (the U.S. debt ceiling) is the kind of thing people are going to be concerned about and that could be the kind of thing that will create some extra volatility for gold,” said Daniel Smith, head of metals research at Standard Chartered.

[source]

PG View: Gold has fallen to new 8-week lows below $1300.00, seemingly dismissing the government shutdown and the impending debt ceiling fight.

Gold futures tumble as investors shun safe havens

Posted: 01 Oct 2013 05:54 AM PDT

01-Oct (MarketWatch) — Gold futures tumbled Tuesday morning, with the traditional safe haven failing to find support as investors shrugged off a long-anticipated shutdown of the U.S. federal government to bid up equities and other assets perceived as risky.

[source]

The Lighter Side of the Shutdown

Posted: 01 Oct 2013 05:52 AM PDT

Bloomberg put together a couple clips from The Daily Show with Jon Stewart and the Late Show with David Letterman on the nation’s latest government shutdown. Now that the shutdown is officially underway and the clock is ticking in advance of the October 17th debt ceiling deadline, the U.S. dollar is moving sharply lower, but [...]

China to ease gold trade restrictions – central bank

Posted: 01 Oct 2013 05:49 AM PDT

30-Sep (Reuters) — China’s central bank is planning to increase the number of firms allowed to import and export gold and will also ease restrictions on individual buyers of the precious metal, according to a draft policy document issued on Monday.

The proposed policy change could boost imports by China, which is expected to overtake India this year as the world’s top gold consumer, and where gold normally trades at a premium to London spot prices.

“If it comes into effect, supply into China could increase and (local) prices could ease depending on demand,” said a Hong Kong-based precious metals trader, who declined to be named.

[source]

Gold lower at 1313.00 (-15.42). Silver 21.37 (-0.32). Dollar weak. Euro higher. Stocks called higher. US 10yr 2.65% (+4 bps).

Posted: 01 Oct 2013 05:27 AM PDT

COMEX Gold Registered Inventories - JP Morgan Moves the Shells Again

Posted: 01 Oct 2013 04:11 AM PDT

With regard to metals inventories, the eligible category includes any bullion of a suitable format that is held in one of the COMEX authorized warehouses, which are individually managed by one of the bullion banks. The second category of metal is called registered, or dealer, bullion inventory. This is bullion of a suitable format that is held in one of the COMEX authorized warehouses, AND has been registered as deliverable into the market by its owner.

What No-Fed-Taper Did to Gold Investor Sentiment

Posted: 01 Oct 2013 01:49 AM PDT

Bullionvault's Gold Investor Index edges down from 4-month high, but only just...

WHAT DID the US Fed's taper-no-taper dance do to gold and other assets prices last month? asks Adrian Ash at BullionVault.

You can see that simply by glancing at the charts. But what did its shilly-shallying do to the central bank's long-term credibility?

Well, according to our Gold Investor Index here at Bullionvault – the world's largest provider of physical bullion ownership online – it took some of the heat out of investor sentiment towards gold. But not a lot.

The Gold Investor Index slipped from a 4-month high in September. Measuring the balance of customers who added to their gold holdings over those who reduced them, it edged down from 53.8 in August to 53.0 last month.

What No-Fed-Taper Did to Gold Investor Sentiment

Posted: 01 Oct 2013 01:49 AM PDT

Bullionvault's Gold Investor Index edges down from 4-month high, but only just...

WHAT DID the US Fed's taper-no-taper dance do to gold and other assets prices last month? asks Adrian Ash at BullionVault.

You can see that simply by glancing at the charts. But what did its shilly-shallying do to the central bank's long-term credibility?

Well, according to our Gold Investor Index here at Bullionvault – the world's largest provider of physical bullion ownership online – it took some of the heat out of investor sentiment towards gold. But not a lot.

The Gold Investor Index slipped from a 4-month high in September. Measuring the balance of customers who added to their gold holdings over those who reduced them, it edged down from 53.8 in August to 53.0 last month.

Room For More U.S. Dollar Weakness After The Government Shutdown

Posted: 01 Oct 2013 01:33 AM PDT

USD is sharply down across the board after the US government shutdown. Some would think that US stocks futures will turn lower, but we in fact can see higher prices since the news came out. However, we may see a risk aversion (lower stocks) if government will be shutdown for too long, lets say around 3 weeks. In the past the longest close was 21 days, back in 1995 (source Wikipedia). The longer the shutdown will last, more nervous investors will become.

No comments:

Post a Comment